Document:

exv4w11

 

    Exhibit
    4.11

 

    FREDDIE
    MAC

 

 

    CERTIFICATE
    OF CREATION, DESIGNATION, POWERS,

    PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    of

    VARIABLE RATE, NON-CUMULATIVE PREFERRED STOCK

    (Par Value $1.00 Per Share)

 

    I, MAUD MATER, Secretary of the Federal Home Loan Mortgage
    Corporation, a government-sponsored enterprise of the United
    States of America (“Freddie Mac” or the
    “Corporation”), do hereby certify that, pursuant to
    authority vested in the Board of Directors of Freddie Mac by
    Section 306(f)
    of the Federal Home Loan Mortgage Corporation Act, as amended
    (12 U.S.C.
    §1455(f)),
    the Board of Directors adopted FHLMC
    Resolution 99-22
    on September 10, 1999, which Resolution is now, and at
    all times since such date has been, in full force and effect,
    and that the Chairman and Chief Executive Officer, pursuant to
    the authority delegated to him by such resolution, approved the
    final terms of the public issuance and sale of the preferred
    stock of Freddie Mac designated above.

 

    The Variable Rate, Non-Cumulative Preferred Stock shall have the
    following designation, powers, preferences, rights, privileges,
    qualifications, limitations, restrictions, terms and conditions:

 

    1. Designation,
    Par Value, Number of Shares and Seniority

 

    The class of preferred stock of Freddie Mac created hereby (the
    “Non-Cumulative
    Preferred Stock”) shall be designated “Variable Rate,
    Non-Cumulative
    Preferred Stock,” shall have a par value of $1.00 per share
    and shall consist of 6,500,000 shares.  The Board of Directors
    shall be permitted to increase the authorized number of such
    shares at any time. The
    Non-Cumulative
    Preferred Stock shall rank prior to the Voting Common Stock of
    Freddie Mac (the “Common Stock”) to the extent
    provided in this Certificate and shall rank, both as to
    dividends and upon liquidation, on a parity with the Variable
    Rate, Non-Cumulative Preferred Stock issued on November 5, 1999,
    the 5.79% Non-Cumulative Preferred Stock issued on July 21,
    1999, the 5.1% Non-Cumulative Preferred Stock issued on
    March 9, 1999, the 5.3% Non-Cumulative Preferred Stock
    issued on October 28, 1998, the 5.1% Non-Cumulative
    Preferred Stock issued on September 23, 1998, the Variable
    Rate, Non-Cumulative Preferred Stock issued on
    September 23, 1998 and September 29, 1998, the 5%
    Non-Cumulative Preferred Stock issued on March 23, 1998,
    the 5.81% Non-Cumulative Preferred Stock issued on
    October 27, 1997, the 6.14% Non-Cumulative Preferred Stock
    issued on June 3, 1997, the 6.125% Non-Cumulative Preferred
    Stock issued on November 1, 1996 and the Variable Rate,
    Non-Cumulative Preferred Stock issued on April 26, 1996
    (collectively, the “Existing Preferred Stock”).

 

    2. Dividends

 

    (a) Holders of outstanding shares of Non-Cumulative
    Preferred Stock will be entitled to receive, ratably,
    non-cumulative quarterly cash dividends which will accrue from
    but not including January 26, 2001 and will be payable on
    March 31, June 30, September 30 and December 31 of

 

    each year (each, a “Dividend Payment Date”), beginning
    on March 31, 2001, when as and if declared by the Board of
    Directors in its sole discretion, out of funds legally available
    for dividend payments. If a Dividend Payment Date is not a
    “Business Day,” the related dividend will be paid on
    the next Business Day with the same force and effect as though
    paid on the Dividend Payment Date, without any increase to
    account for the period from such Dividend Payment Date through
    the date of actual payment. For these purposes, “Business
    Day” means a day other than (i) a Saturday or Sunday,
    (ii) a day on which New York City banks are closed or
    (iii) a day on which the offices of Freddie Mac are closed.
    Dividends will be paid to holders of record on the record date
    fixed by the Board of Directors, not to be earlier than
    45 days or later than 10 days preceding the applicable
    Dividend Payment Date.

 

    The dividend rate for the period from January 26, 2001
    through and including March 31, 2003 will be 4.817%.
    Thereafter, dividends will accrue at a variable per annum rate
    (not greater than 11%) equal to the “CMT Rate” (as
    defined below) plus 0.10%. On April 1, 2003, and on
    April 1 every two years thereafter, the previous dividend
    rate will be replaced by the then-current CMT Rate plus 0.10%.
    The CMT Rate for each two-year period will be determined by
    Freddie Mac on the second Business Day immediately preceding the
    first day of such period (each, a “CMT Determination
    Date”). If declared, the initial dividend, which will be
    for the “Dividend Period” from but not including
    January 26, 2001 through and including March 31, 2003,
    will be $0.4282 per share and will be payable on March 31,
    2001. Thereafter, the “Dividend Period” relating to a
    Dividend Payment Date will be the period from but not including
    the preceding Dividend Payment Date through and including the
    related Dividend Payment Date. The amount of dividends payable
    for any period shorter than a full Dividend Period shall be
    computed on the basis of twelve
    30-day
    months and a
    360-day
    year. The amount of dividends payable for each full Dividend
    Period will be determined by dividing the annual dividend by
    four. If Freddie Mac redeems the Non-Cumulative Preferred Stock,
    the dividend that would otherwise be payable for the Dividend
    Period ending on the date of redemption will be included in the
    redemption price of the shares redeemed and will not be
    separately payable.

 

    (b) The “CMT Rate” for any CMT Determination Date
    will be the rate (not greater than 10.90%) equal to:

 

    (1) the weekly average interest rate of U.S. Treasury
    securities having an index maturity of two years for the week
    that ends immediately before the week in which the relevant CMT
    Determination Date falls, as that rate appears on page
    “7052” on Telerate (or such other page as may replace
    the 7052 page on that service or any successor service) under
    the heading “. . . Treasury Constant
    Maturities . . . Federal Reserve Board Release
    H.15 . . . Mondays Approximately
    3:45 p.m.”

 

    (2) If the applicable rate described in
    clause (1) above is not displayed on Telerate page
    7052 at 3:00 p.m., New York City time, on the relevant CMT
    Determination Date, then the CMT Rate will be the Treasury
    constant maturity rate applicable to a two-year index maturity
    for the weekly average as published in
    H.15(519)
    (as defined below).

 

    (3) If the applicable rate described in clause (2)
    above does not appear in
    H.15(519) at
    3:00 p.m., New York City time, on the relevant CMT
    Determination Date, then the CMT Rate

 

    will be the Treasury constant maturity rate, or other U.S.
    Treasury rate, applicable to a two-year index maturity with
    reference to the relevant CMT Determination Date, that:

 

    (A) is published by the Board of Governors of the Federal
    Reserve System or the U.S. Department of the Treasury; and

 

    (B) is determined by Freddie Mac to be comparable to the
    applicable rate formerly displayed on Telerate page 7052 and
    published in H.15(519).

 

    (4) If the rate described in clause (3) above does not
    appear at 3:00 p.m., New York City time, on the relevant
    CMT Determination Date, then the CMT Rate will be the yield to
    maturity of the arithmetic mean of the secondary market offered
    rates for Treasury notes having an original maturity of
    approximately two years and a remaining term to maturity of not
    less than one year, and in a representative amount, as of
    approximately 3:30 p.m., New York City time, on the
    relevant CMT Determination Date, as quoted by three primary U.S.
    government securities dealers in New York City selected by
    Freddie Mac. In selecting these offered rates, Freddie Mac will
    request quotations from five primary dealers and will disregard
    the highest quotation — or, if there is equality, one
    of the highest — and the lowest quotation —
    or, if there is equality, one of the lowest. Treasury notes are
    direct, non-callable, fixed rate obligations of the U.S.
    government.

 

    (5) If Freddie Mac is unable to obtain three quotations of
    the kind described in clause (4) above, the CMT Rate will be the
    yield to maturity of the arithmetic mean of the secondary market
    offered rates for Treasury notes with an original maturity
    longer than two years and a remaining term to maturity closest
    to two years, and in a representative amount, as of
    approximately 3:30 p.m., New York City time, on the
    relevant CMT Determination Date, as quoted by three primary U.S.
    government securities dealers in New York City selected by
    Freddie Mac. In selecting these offered rates, Freddie Mac will
    request quotations from five primary dealers and will disregard
    the highest quotation — or, if there is equality, one
    of the highest — and the lowest quotation —
    or, if there is equality, one of the lowest. If two Treasury
    notes with an original maturity longer than two years have
    remaining terms to maturity that are equally close to two years,
    Freddie Mac will obtain quotations for the Treasury note with
    the shorter remaining term to maturity.

 

    (6) If fewer than five but more than two primary dealers
    are quoting offered rates as described in clause (5) above,
    then the CMT Rate for the relevant CMT Determination Date will
    be based on the arithmetic mean of the offered rates so
    obtained, and neither the highest nor the lowest of those
    quotations will be disregarded.

 

    (7) If two or fewer primary dealers are quoting offered
    rates as described in clause (5) above, the CMT Rate in
    effect for the new Dividend Period will be the CMT Rate in
    effect for the prior Dividend Period.

 

    “H.15(519)” means the weekly statistical release
    entitled “Statistical Release H.15(519),” or any
    successor publication, published by the Board of Governors of
    the Federal Reserve System.

 

    Absent manifest error, Freddie Mac’s determination of the
    CMT Rate and the dividend rate will be final and binding.

 

    No dividends shall be declared or paid or set apart for payment
    on the Common Stock or any other class or series of stock
    ranking junior to or (except as hereinafter provided) on a
    parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends unless
    dividends

 

    have been declared and paid or set apart (or ordered by the
    Board of Directors to be set apart) for payment on the
    outstanding
    Non-Cumulative
    Preferred Stock in respect of the then-current Dividend Period;
    provided, however, that the foregoing dividend preference shall
    not be cumulative and shall not in any way create any claim or
    right in favor of the holders of
    Non-Cumulative
    Preferred Stock in the event that Freddie Mac shall not have
    declared or paid or set apart (or the Board of Directors shall
    not have ordered to be set apart) dividends on the
    Non-Cumulative Preferred Stock in respect of any prior Dividend
    Period. In the event that Freddie Mac shall not pay any one or
    more dividends or any part thereof on the
    Non-Cumulative
    Preferred Stock, the holders of the
    Non-Cumulative
    Preferred Stock shall not have any claim in respect of such
    non-payment
    so long as no dividend is paid on any junior or parity stock in
    violation of the next preceding sentence.

 

    (c) If, prior to July 26, 2002, one or more amendments
    to the Internal Revenue Code of 1986, as amended (the
    “Code”), are enacted that reduce or eliminate the
    percentage of the dividends-received deduction as specified in
    section 243(a)(1) of the Code or any successor provision
    (the “Dividends-Received Percentage”), including any
    change applicable only to certain categories of stock, which
    change is applicable to the Preferred Stock, certain adjustments
    may be made in respect of the dividends payable by the
    Corporation, and Post Declaration Date Dividends and Retroactive
    Dividends (as such terms are defined below) may become payable,
    as described below.

 

    The amount of each dividend payable (if declared) per share of
    Non-Cumulative Preferred Stock for dividend payments made on or
    after the effective date of such change in the Code will be
    adjusted by multiplying the amount of the dividend payable
    pursuant to Section 2(a) (before adjustment) by a factor,
    which shall be the number determined in accordance with the
    following formula (the “DRD Formula”), and rounding
    the result to the nearest cent (with one-half cent rounded up):

 

    1 - .35 (1 - .70)

    1 - .35 (1 - DRP)

 

    For the purposes of the DRD Formula, “DRP” means the
    Dividends-Received Percentage (expressed as a decimal)
    applicable to the dividend in question; provided,
    however, that if the Dividends-Received Percentage
    applicable to the dividend in question is less than 50%, then
    the DRP will equal .50. In the event an adjustment to any
    dividend payable on the Non-Cumulative Preferred Stock is made
    pursuant to this Section 2(c), the resulting dividend rate
    may exceed  % per annum. No amendment to the Code,
    other than a change in the percentage of the dividends-received
    deduction set forth in section 243(a)(1) of the Code or any
    successor provision, or a change in the percentage of the
    dividends-received deduction for certain categories of stock,
    which change is applicable to the Preferred Stock, will give
    rise to an adjustment.

 

    Notwithstanding the foregoing provisions, if, with respect to
    any such amendment, the Corporation receives either an
    unqualified opinion of nationally recognized independent tax
    counsel selected by the Corporation or a private letter ruling
    or similar form of assurance from the Internal Revenue Service
    (the “IRS”) to the effect that such an amendment does
    not apply to a dividend payable on the Non-Cumulative Preferred
    Stock, then such amendment shall not result in the adjustment
    provided for pursuant to the DRD Formula with respect to such
    dividend. The opinion referenced in the previous sentence shall
    be based upon the legislation amending or establishing the DRP
    or upon a published pronouncement of the IRS addressing such
    legislation. Unless the context otherwise requires, references
    to dividends herein shall mean dividends as adjusted by the DRD

 

    Formula. The Corporation’s calculation of the dividends
    payable as so adjusted shall be final and not subject to review,
    absent manifest error.

 

    Notwithstanding the foregoing, if any such amendment to the Code
    is enacted after the dividend payable on a Dividend Payment Date
    has been declared but before such dividend is paid, the amount
    of the dividend payable on such Dividend Payment Date shall not
    be increased. Instead, additional dividends (the “Post
    Declaration Date Dividends”), equal to the excess, if any,
    of (x) the product of the dividend paid by the Corporation
    on such Dividend Payment Date and the DRD Formula (where the DRP
    used in the DRD Formula would be equal to the greater of the
    Dividends-Received Percentage applicable to the dividend in
    question and .50) over (y) the dividend paid by the
    Corporation on such Dividend Payment Date, shall be payable (if
    declared) to holders of Non-Cumulative Preferred Stock on the
    record date applicable to the next succeeding Dividend Payment
    Date, in addition to any other amounts payable on such date.

 

    If any such amendment to the Code is enacted and the reduction
    in the Dividends-Received Percentage retroactively applies to a
    Dividend Payment Date as to which the Corporation previously
    paid dividends on the Non-Cumulative Preferred Stock (each, an
    “Affected Dividend Payment Date”), the Corporation
    shall pay (if declared) additional dividends (the
    “Retroactive Dividends”) to holders on the record date
    applicable to the next succeeding Dividend Payment Date (or, if
    such amendment is enacted after the dividend payable on such
    Dividend Payment Date has been declared, to holders on the
    record date applicable to the second succeeding Dividend Payment
    Date following the date of enactment) in an amount equal to the
    excess of (x) the product of the dividend paid by the
    Corporation on each Affected Dividend Payment Date and the DRD
    Formula (where the DRP used in the DRD Formula would be equal to
    the greater of the Dividends-Received Percentage and .50 applied
    to each Affected Dividend Payment Date) over (y) the sum of
    the dividend paid by the Corporation on each Affected Dividend
    Payment Date. The Corporation will make only one payment of
    Retroactive Dividends for any such amendment. Notwithstanding
    the foregoing provisions, if, with respect to any such
    amendment, the Corporation receives either an unqualified
    opinion of nationally recognized independent tax counsel
    selected by the Corporation or a private letter ruling or
    similar form of assurance from the IRS to the effect that such
    amendment does not apply to a dividend payable on an Affected
    Dividend Payment Date for the Non-Cumulative Preferred Stock,
    then such amendment will not result in the payment of
    Retroactive Dividends with respect to such Affected Dividend
    Payment Date. The opinion referenced in the previous sentence
    must be based upon the legislation amending or establishing the
    DRP or upon a published pronouncement of the IRS addressing such
    legislation.

 

    In the event that the amount of dividends payable per share of
    the Non-Cumulative Preferred Stock is adjusted pursuant to the
    DRD Formula and/or Post Declaration Date Dividends or
    Retroactive Dividends are to be paid, the Corporation will give
    notice of each such adjustment and, if applicable, any Post
    Declaration Date Dividends and Retroactive Dividends to be given
    as soon as practicable to the holders of Non-Cumulative
    Preferred Stock.

 

    (d) Notwithstanding any other provision of this
    Certificate, the Board of Directors, in its discretion, may
    choose to pay dividends on the
    Non-Cumulative
    Preferred Stock without the payment of any dividends on the
    Common Stock or any other class or series of stock from time to
    time outstanding ranking junior to the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends.

 

    (e) No dividend shall be declared or paid or set apart for
    payment on any shares of the
    Non-Cumulative
    Preferred Stock if at the same time any arrears or default
    exists in the payment of dividends on any outstanding class or
    series of stock of Freddie Mac ranking prior to or (except as
    provided herein) on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends. If and
    whenever dividends, having been declared, shall not have been
    paid in full, as aforesaid, on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any other class or series
    of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends, all
    such dividends that have been declared on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any such other class or
    series shall be paid pro rata, so that the respective amounts of
    dividends paid per share on the
    Non-Cumulative
    Preferred Stock and on such other class or series shall in all
    cases bear to each other the same ratio that the respective
    amounts of dividends declared but unpaid per share on the shares
    of the
    Non-Cumulative
    Preferred Stock (including any adjustments due to changes in the
    Dividends-Received
    Percentage) and on the shares of such other class or series bear
    to each other.

 

    (f) Holders of shares of the Non-Cumulative Preferred Stock
    shall not be entitled to any dividends, in cash or in property,
    other than as herein provided and shall not be entitled to
    interest, or any sum in lieu of interest, on or in respect of
    any dividend payment.

 

    3. Optional
    Redemption

 

    (a) The Non-Cumulative Preferred Stock shall not be
    redeemable prior to March 31, 2003. On that date and on
    March 31 every two years thereafter, subject to the notice
    provisions set forth in Section 3(b) below and to any
    further limitations which may be imposed by law, Freddie Mac may
    redeem the
    Non-Cumulative
    Preferred Stock, in whole or in part, out of funds legally
    available therefor, at the redemption price of $50.00 per share
    plus an amount, determined in accordance with Section 2
    above, equal to the amount of the dividend that would otherwise
    be payable for the Dividend Period ending on the date of such
    redemption. If less than all of the outstanding shares of the
    Non-Cumulative
    Preferred Stock are to be redeemed, Freddie Mac shall select
    shares to be redeemed from the outstanding shares not previously
    called for redemption by lot or pro rata (as nearly as possible)
    or by any other method which Freddie Mac in its sole discretion
    deems equitable.

 

    (b) In the event Freddie Mac shall redeem any or all of the
    Non-Cumulative Preferred Stock as aforesaid, notice of such
    redemption shall be given by Freddie Mac by first class mail,
    postage prepaid, mailed neither less than 30 nor more than
    60 days prior to the redemption date, to each holder of
    record of the shares of the
    Non-Cumulative
    Preferred Stock being redeemed, at such holder’s address as
    the same appears in the books and records of Freddie Mac. Each
    such notice shall state the number of shares being redeemed, the
    redemption price, the redemption date and the place at which
    such holder’s certificate(s) representing shares of the
    Non-Cumulative
    Preferred Stock must be presented for cancellation or exchanges,
    as the case may be, upon such redemption. Failure to give
    notice, or any defect in the notice, to any holder of the
    Non-Cumulative Preferred Stock shall not affect the validity of
    the proceedings for the redemption of shares of any other holder
    of the
    Non-Cumulative
    Preferred Stock being redeemed.

 

    (c) Notice having been mailed as aforesaid, from and after
    the redemption date specified therein and upon payment of the
    consideration set forth in Section 3(a) above, said shares
    of the
    Non-Cumulative
    Preferred Stock shall no longer be deemed to be outstanding, and
    all rights of the

 

    holders thereof as holders of the
    Non-Cumulative
    Preferred Stock shall cease, with respect to shares so redeemed.

 

    (d) Any shares of the Non-Cumulative Preferred Stock which
    shall have been redeemed shall, after such redemption, no longer
    have the status of authorized, issued or outstanding shares.

 

    4. No
    Voting Rights

 

    Except as set forth in Section 9(h) below, the shares of
    the
    Non-Cumulative
    Preferred Stock shall not have any voting powers, either general
    or special.

 

    5. No
    Conversion or Exchange Rights

 

    The holders of shares of the
    Non-Cumulative
    Preferred Stock shall not have any right to convert such shares
    into or exchange such shares for any other class or series of
    stock or obligations of Freddie Mac.

 

    6. No
    Preemptive Rights

 

    No holder of the
    Non-Cumulative
    Preferred Stock shall as such holder have any preemptive right
    to purchase or subscribe for any other shares, rights, options
    or other securities of any class of Freddie Mac which at any
    time may be sold or offered for sale by Freddie Mac.

 

    7. Liquidation
    Rights and Preference

 

    (a) Except as otherwise set forth herein, upon the
    voluntary or involuntary dissolution, liquidation or winding up
    of Freddie Mac, after payment of or provision for the
    liabilities of Freddie Mac and the expenses of such dissolution,
    liquidation or winding up, the holders of the outstanding shares
    of the
    Non-Cumulative
    Preferred Stock shall be entitled to receive out of the assets
    of Freddie Mac available for distribution to stockholders,
    before any payment or distribution shall be made on the Common
    Stock or any other class or series of stock of Freddie Mac
    ranking junior to the
    Non-Cumulative
    Preferred Stock upon liquidation, the amount of $50.00 per share
    plus an amount, determined in accordance with Section 2
    above, equal to the dividend, if any, otherwise payable for the
    then-current
    Dividend Period accrued through and including the date of
    payment in respect of such dissolution, liquidation or winding
    up, and the holders of the outstanding shares of any class or
    series of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock upon liquidation shall be entitled to receive
    out of the assets of Freddie Mac available for distribution to
    stockholders, before any such payment or distribution shall be
    made on the Common Stock or any other class or series of stock
    of Freddie Mac ranking junior to the
    Non-Cumulative
    Preferred Stock and to such parity stock upon liquidation, any
    corresponding preferential amount to which the holders of such
    parity stock may, by the terms thereof, be entitled; provided,
    however, that if the assets of Freddie Mac available for
    distribution to stockholders shall be insufficient for the
    payment of the full amounts to which the holders of the
    outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of the outstanding shares of
    such parity stock shall be entitled to receive upon such
    dissolution, liquidation or winding up of Freddie Mac as
    aforesaid, then, subject to paragraph (b) of this
    Section 7, all of the assets of Freddie Mac available for
    distribution to stockholders shall be distributed to the holders
    of outstanding shares of the
    Non-Cumulative
    Preferred Stock and to the holders of outstanding shares of such
    parity stock pro rata, so that the amounts so distributed to
    holders of the
    Non-Cumulative
    Preferred Stock and to holders of such

 

    classes or series of such parity stock, respectively, shall bear
    to each other the same ratio that the respective distributive
    amounts to which they are so entitled (including any adjustment
    due to changes in the Dividends-Received Percentage) bear to
    each other. After the payment of the aforesaid amounts to which
    they are entitled, the holders of outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of outstanding shares of any
    such parity stock shall not be entitled to any further
    participation in any distribution of assets of Freddie Mac.

 

    (b) Notwithstanding the foregoing, upon the dissolution,
    liquidation or winding up of Freddie Mac, the holders of shares
    of the
    Non-Cumulative
    Preferred Stock then outstanding shall not be entitled to be
    paid any amounts to which such holders are entitled pursuant to
    paragraph (a) of this Section 7 unless and until the
    holders of any classes or series of stock of Freddie Mac ranking
    prior upon liquidation to the Non-Cumulative Preferred Stock
    shall have been paid all amounts to which such classes or series
    are entitled pursuant to their respective terms.

 

    (c) Neither the sale of all or substantially all of the
    property or business of Freddie Mac, nor the merger,
    consolidation or combination of Freddie Mac into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 7.

 

    8. Additional
    Classes or Series of Stock

 

    The Board of Directors shall have the right at any time in the
    future to authorize, create and issue, by Resolution or
    resolutions, one or more additional classes or series of stock
    of Freddie Mac, and to determine and fix the distinguishing
    characteristics and the relative rights, preferences, privileges
    and other terms of the shares thereof. Any such class or series
    of stock may rank prior to or on a parity with or junior to the
    Non-Cumulative Preferred Stock as to dividends or upon
    liquidation or otherwise.

 

    9. Miscellaneous

 

    (a) Any stock of any class or series of Freddie Mac shall
    be deemed to rank:

 

    (i) prior to the shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    the holders of such class or series shall be entitled to the
    receipt of dividends or of amounts distributable upon
    dissolution, liquidation or winding up of Freddie Mac, as the
    case may be, in preference or priority to the holders of shares
    of the
    Non-Cumulative
    Preferred Stock;

 

    (ii) on a parity with shares of the Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation,
    whether or not the dividend rates or amounts, dividend payment
    dates or redemption of liquidation prices per share, if any, be
    different from those of the
    Non-Cumulative
    Preferred Stock, if the holders of such class or series shall be
    entitled to the receipt of dividends or of amounts distributable
    upon dissolution, liquidation or winding up of Freddie Mac, as
    the case may be, in proportion to their respective dividend
    rates or amounts or liquidation prices, without preference or
    priority, one over the other, as between the holders of such
    class or series and the holders of shares of the
    Non-Cumulative
    Preferred Stock; and

 

    (iii) junior to shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    such class or series shall be Common Stock, or if the holders of
    shares of the
    Non-Cumulative
    Preferred Stock shall be entitled to receipt of dividends or of
    amounts

 

    distributable upon dissolution, liquidation or winding up of
    Freddie Mac, as the case may be, in preference or priority to
    the holders of shares of such class or series.

 

    (b) Freddie Mac and any agent of Freddie Mac may deem and
    treat the holder of a share or shares of
    Non-Cumulative
    Preferred Stock, as shown in Freddie Mac’s books and
    records, as the absolute owner of such share or shares of
    Non-Cumulative
    Preferred Stock for the purpose of receiving payment of
    dividends in respect of such share or shares of
    Non-Cumulative
    Preferred Stock and for all other purposes whatsoever, and
    neither Freddie Mac nor any agent of Freddie Mac shall be
    affected by any notice to the contrary. All payments made to or
    upon the order of any such person shall be valid and, to the
    extent of the sum or sums so paid, effectual to satisfy and
    discharge liabilities for moneys payable by Freddie Mac on or
    with respect to any such share or shares of
    Non-Cumulative
    Preferred Stock.

 

    (c) The shares of the
    Non-Cumulative
    Preferred Stock, when duly issued, shall be fully paid and
    non-assessable.

 

    (d) The
    Non-Cumulative
    Preferred Stock shall be issued, and shall be transferable on
    the books of Freddie Mac, only in whole shares, it being
    intended that no fractional interests in shares of
    Non-Cumulative
    Preferred Stock shall be created or recognized by Freddie Mac.

 

    (e) For purposes of this Certificate, the term
    “Freddie Mac” means the Federal Home Loan Mortgage
    Corporation and any successor thereto by operation of law or by
    reason of a merger, consolidation or combination.

 

    (f) This Certificate and the respective rights and
    obligations of Freddie Mac and the holders of the
    Non-Cumulative
    Preferred Stock with respect to such
    Non-Cumulative
    Preferred Stock shall be construed in accordance with and
    governed by the laws of the United States, provided that the law
    of the Commonwealth of Virginia shall serve as the federal rule
    of decision in all instances except where such law is
    inconsistent with Freddie Mac’s enabling legislation, its
    public purposes or any provision of this Certificate.

 

    (g) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon Freddie Mac shall be given or served
    in writing addressed (unless and until another address shall be
    published by Freddie Mac) to Freddie Mac, 8200 Jones Branch
    Drive, McLean, Virginia 22102, Attn: Executive Vice
    President-General
    Counsel and Secretary. Such notice, demand or other
    communication to or upon Freddie Mac shall be deemed to have
    been sufficiently given or made only upon actual receipt of a
    writing by Freddie Mac. Any notice, demand or other
    communication which by any provision of this Certificate is
    required or permitted to be given or served by Freddie Mac
    hereunder may be given or served by being deposited first class,
    postage prepaid, in the United States mail addressed (i) to
    the holder as such holder’s name and address may appear at
    such time in the books and records of Freddie Mac or
    (ii) if to a person or entity other than a holder of record
    of the Non-Cumulative Preferred Stock, to such person or entity
    at such address as appears to Freddie Mac to be appropriate at
    such time. Such notice, demand or other communication shall be
    deemed to have been sufficiently given or made, for all
    purposes, upon mailing.

 

    (h) Freddie Mac, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

 

    (i) Without the consent of the holders of the
    Non-Cumulative Preferred Stock, Freddie Mac may amend, alter,
    supplement or repeal any provision of this Certificate to cure
    any ambiguity, to correct or supplement any provision herein
    which may be defective or inconsistent with any other provision
    herein, or to make any other provisions with respect to matters
    or questions arising under this Certificate, provided that such
    action shall not materially and adversely affect the interests
    of the holders of the Non-Cumulative Preferred Stock.

 

    (ii) The consent of the holders of at least 66 2/3% of
    all of the shares of the Non-Cumulative Preferred Stock at the
    time outstanding, given in person or by proxy, either in writing
    or by a vote at a meeting called for the purpose at which the
    holders of shares of the
    Non-Cumulative
    Preferred Stock shall vote together as a class, shall be
    necessary for authorizing, effecting or validating the
    amendment, alteration, supplementation or repeal of the
    provisions of this Certificate if such amendment, alteration,
    supplementation or repeal would materially and adversely affect
    the powers, preferences, rights, privileges, qualifications,
    limitations, restrictions, terms or conditions of the
    Non-Cumulative Preferred Stock. The creation and issuance of any
    other class or series of stock, or the issuance of additional
    shares of any existing class or series of stock of Freddie Mac
    (including the
    Non-Cumulative
    Preferred Stock), whether ranking prior to, on a parity with or
    junior to the Non-Cumulative Preferred Stock, shall not be
    deemed to constitute such an amendment, alteration,
    supplementation or repeal.

 

    (iii) Holders of the Non-Cumulative Preferred Stock shall
    be entitled to one vote per share on matters on which their
    consent is required pursuant to subparagraph (ii) of this
    paragraph (h). In connection with any meeting of such
    holders, the Board of Directors shall fix a record date, neither
    earlier than 60 days nor later than 10 days prior to
    the date of such meeting, and holders of record of shares of the
    Non-Cumulative
    Preferred Stock on such record date shall be entitled to notice
    of and to vote at any such meeting and any adjournment. The
    Board of Directors, or such person or persons as it may
    designate, may establish reasonable rules and procedures as to
    the solicitation of the consent of holders of the
    Non-Cumulative
    Preferred Stock at any such meeting or otherwise, which rules
    and procedures shall conform to the requirements of any national
    securities exchange on which the
    Non-Cumulative
    Preferred Stock may be listed at such time.

 

    (i) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE
    NON-CUMULATIVE PREFERRED STOCK BY OR ON BEHALF OF A HOLDER SHALL
    CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL
    OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF
    ALL OF THE TERMS AND PROVISIONS OF THIS CERTIFICATE. NO
    SIGNATURE OR OTHER FURTHER MANIFESTATION OF ASSENT TO THE TERMS
    AND PROVISIONS OF THIS CERTIFICATE SHALL BE NECESSARY FOR ITS
    OPERATION OR EFFECT AS BETWEEN FREDDIE MAC AND THE HOLDER (AND
    ALL SUCH OTHERS).

 

    IN WITNESS WHEREOF, I have hereunto set my hand and the seal of
    Freddie Mac this 26th day of January, 2001.

 

 

    [Seal]
    

    /s/  Maud
    Mater

    Maud Mater, Secretaryexv4w12

 

    Exhibit
    4.12

 

    FREDDIE
    MAC

 

 

    CERTIFICATE
    OF CREATION, DESIGNATION, POWERS,

    PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    of

    VARIABLE RATE, NON-CUMULATIVE PREFERRED STOCK

    (Par Value $1.00 Per Share)

 

    I, MAUD MATER, Secretary of the Federal Home Loan Mortgage
    Corporation, a government-sponsored enterprise of the United
    States of America (“Freddie Mac” or the
    “Corporation”), do hereby certify that, pursuant to
    authority vested in the Board of Directors of Freddie Mac by
    Section 306(f) of the Federal Home Loan Mortgage
    Corporation Act, as amended (12 U.S.C.
    §1455(f)),
    the Board of Directors adopted FHLMC
    Resolution 2001-03
    on March 2, 2001, which Resolution is now, and at all
    times since such date has been, in full force and effect, and
    that the Chairman and Chief Executive Officer, pursuant to the
    authority delegated to him by such resolution, approved the
    final terms of the public issuance and sale of the preferred
    stock of Freddie Mac designated above.

 

    The Variable Rate, Non-Cumulative Preferred Stock shall have the
    following designation, powers, preferences, rights, privileges,
    qualifications, limitations, restrictions, terms and conditions:

 

    1. Designation,
    Par Value, Number of Shares and Seniority

 

    The class of preferred stock of Freddie Mac created hereby (the
    “Non-Cumulative
    Preferred Stock”) shall be designated “Variable Rate,
    Non-Cumulative
    Preferred Stock,” shall have a par value of $1.00 per share
    and shall consist of 4 million shares.*  The Board of
    Directors shall be permitted to increase the authorized number
    of such shares at any time. The
    Non-Cumulative
    Preferred Stock shall rank prior to the Voting Common Stock of
    Freddie Mac (the “Common Stock”) to the extent
    provided in this Certificate and shall rank, both as to
    dividends and upon liquidation, on a parity with the 5.81%
    Non-Cumulative Preferred Stock issued on March 23, 2001,
    the Variable Rate, Non-Cumulative Preferred Stock issued on
    January 26, 2001, the Variable Rate, Non-Cumulative
    Preferred Stock issued on November 5, 1999, the 5.79%
    Non-Cumulative Preferred Stock issued on July 21, 1999, the
    5.1% Non-Cumulative Preferred Stock issued on March 19,
    1999, the 5.3% Non-Cumulative Preferred Stock issued on
    October 28, 1998, the 5.1% Non-Cumulative Preferred Stock
    issued on September 23, 1998, the Variable Rate,
    Non-Cumulative Preferred Stock issued on September 23, 1998
    and September 29, 1998, the 5% Non-Cumulative Preferred
    Stock issued on March 23, 1998, the 5.81% Non-Cumulative
    Preferred Stock issued on October 27, 1997, the 6.14%
    Non-Cumulative Preferred Stock issued on June 3, 1997, the
    6.125% Non-Cumulative Preferred Stock issued on November 1,
    1996 and the Variable Rate, Non-Cumulative Preferred Stock
    issued on April 26, 1996 (collectively, the “Existing
    Preferred Stock”).

    * Plus up to 600,000
    additional shares pursuant to Underwriters’ overallotment
    option.
    

 

    2. Dividends

 

    (a) Holders of outstanding shares of Non-Cumulative
    Preferred Stock will be entitled to receive, ratably,
    non-cumulative quarterly cash dividends which will accrue from
    but not including March 23, 2001 and will be payable on
    March 31, June 30, September 30 and December 31 of each
    year (each, a “Dividend Payment Date”), beginning on
    June 30, 2001, when as and if declared by the Board of
    Directors in its sole discretion, out of funds legally available
    for dividend payments. If a Dividend Payment Date is not a
    “Business Day,” the related dividend will be paid on
    the next Business Day with the same force and effect as though
    paid on the Dividend Payment Date, without any increase to
    account for the period from such Dividend Payment Date through
    the date of actual payment. For these purposes, “Business
    Day” means a day other than (i) a Saturday or Sunday,
    (ii) a day on which New York City banks are closed or
    (iii) a day on which the offices of Freddie Mac are closed.
    Dividends will be paid to holders of record on the record date
    fixed by the Board of Directors, not to be earlier than
    45 days or later than 10 days preceding the applicable
    Dividend Payment Date.

 

    The dividend rate for the period from March 23, 2001
    through and including March 31, 2002 will be 4.50%.
    Thereafter, dividends will accrue at a variable per annum rate
    (not greater than 11%) equal to the
    “12-Month
    LIBOR Rate” (as defined below) minus 0.20%. On
    April 1, 2002, and on April 1 every year thereafter,
    the previous dividend rate will be replaced by a new dividend
    rate equal to the then-current
    12-Month
    LIBOR Rate minus 0.20%. The
    12-Month
    LIBOR Rate for each one-year period will be determined by
    Freddie Mac on the second “LIBOR Business Day”
    (defined as any day, other than a Saturday or Sunday, on which
    banks are open for business in London) immediately preceding the
    first day of such period (each, a “LIBOR Determination
    Date”). If declared, the initial dividend, which will be
    for the “Dividend Period” from but not including
    March 23, 2001 through and including June 30, 2001,
    will be $0.61875 per share and will be payable on June 30,
    2001. Thereafter, the “Dividend Period” relating to a
    Dividend Payment Date will be the period from but not including
    the preceding Dividend Payment Date through and including the
    related Dividend Payment Date. The amount of each dividend
    payable shall be computed on the basis of the actual number of
    days elapsed and a
    360-day
    year. If Freddie Mac redeems the Non-Cumulative Preferred Stock,
    the dividend that would otherwise be payable for the Dividend
    Period ending on the date of redemption will be included in the
    redemption price of the shares redeemed and will not be
    separately payable.

 

    (b) The
    “12-Month
    LIBOR Rate” will be the rate (not greater than 11.20%)
    determined as follows, in the following order of priority:

 

    1. The
    12-Month
    LIBOR Rate for any LIBOR Determination Date will be the rate
    (expressed as a percentage per annum) for Eurodollar deposits
    having a twelve-month maturity that appears on Bridge Telerate
    Capital Markets Report Page 3750 or any successor to such
    page (“Telerate Page 3750”) as of 11:00 a.m.
    (London time) on the related LIBOR Determination Date;

 

    2. If the applicable rate described in clause 1 above
    is not displayed on Telerate Page 3750 as of
    11:00 a.m. (London time) on the related LIBOR Determination
    Date, LIBOR will be the arithmetic mean (if necessary rounded
    upwards to the nearest whole multiple of 1/128%) of the rates
    (expressed as percentages per annum) for Eurodollar deposits
    having a twelve-month maturity that appear on Reuters Monitor
    Money Rates Page LIBO or any successor to such

 

    page (“Reuters Page LIBO”) as of 11:00 a.m.
    (London time) on such LIBOR Determination Date;

 

    3. If the applicable rate described in clause 2 above
    is not displayed on Reuters Page LIBO as of 11:00 a.m.
    (London time) on the related Determination Date, Freddie Mac
    will request the principal London offices of four leading banks
    in the London interbank market to provide such banks’
    offered quotations (expressed as percentages per annum) to prime
    banks in the London interbank market for Eurodollar deposits
    having a twelve-month maturity as of 11:00 a.m. (London
    time) on such LIBOR Determination Date. If at least two
    quotations are provided, LIBOR will be the arithmetic mean (if
    necessary rounded upwards to the nearest whole multiple of
    1/128%) of such quotations;

 

    4. If fewer than two such quotations are provided as
    requested in clause 3 above, Freddie Mac will request four
    major New York City banks to provide such banks’ offered
    quotations (expressed as percentages per annum) to leading
    European banks for loans in Eurodollars as of 11:00 a.m.
    (London time) on such LIBOR Determination Date. If at least two
    such quotations are provided, LIBOR will be the arithmetic mean
    (if necessary rounded upwards to the nearest whole multiple of
    1/128%) of such quotations; and

 

    5. If fewer than two such quotations are provided as
    requested in clause 4 above, LIBOR will be LIBOR determined
    with respect to the Dividend Period immediately preceding such
    current Dividend Period.

 

    If the rate for the Eurodollar deposits having a twelve-month
    maturity that initially appears on Telerate Page 3750 or
    Reuters Page LIBO, as the case may be, as of 11:00 a.m.
    (London time) on the related LIBOR Determination Date is
    superseded on Telerate Page 3750 or Reuters Page LIBO, as
    the case may be, by a corrected rate before 12:00 noon
    (London time) on such LIBOR Determination Date, the corrected
    rate as so substituted on the applicable page will be the
    applicable LIBOR for such LIBOR Determination Date.

 

    Absent manifest error, Freddie Mac’s determination of the
    12-Month
    LIBOR Rate and the dividend rate will be final and binding.

 

    No dividends shall be declared or paid or set apart for payment
    on the Common Stock or any other class or series of stock
    ranking junior to or (except as hereinafter provided) on a
    parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends unless
    dividends have been declared and paid or set apart (or ordered
    by the Board of Directors to be set apart) for payment on the
    outstanding
    Non-Cumulative
    Preferred Stock in respect of the then-current Dividend Period;
    provided, however, that the foregoing dividend preference shall
    not be cumulative and shall not in any way create any claim or
    right in favor of the holders of
    Non-Cumulative
    Preferred Stock in the event that Freddie Mac shall not have
    declared or paid or set apart (or the Board of Directors shall
    not have ordered to be set apart) dividends on the
    Non-Cumulative Preferred Stock in respect of any prior Dividend
    Period. In the event that Freddie Mac shall not pay any one or
    more dividends or any part thereof on the
    Non-Cumulative
    Preferred Stock, the holders of the
    Non-Cumulative
    Preferred Stock shall not have any claim in respect of such
    non-payment
    so long as no dividend is paid on any junior or parity stock in
    violation of the next preceding sentence.

 

    (c) If, prior to September 23, 2002, one or more
    amendments to the Internal Revenue Code of 1986, as amended (the
    “Code”), are enacted that reduce or eliminate the
    percentage of the dividends-received deduction as specified in
    section 243(a)(1)
    of the Code or any successor

 

    provision (the “Dividends-Received Percentage”),
    including any change applicable only to certain categories of
    stock, which change is applicable to the Non-Cumulative
    Preferred Stock, certain adjustments may be made in respect of
    the dividends payable by the Corporation, and Post Declaration
    Date Dividends and Retroactive Dividends (as such terms are
    defined below) may become payable, as described below.

 

    The amount of each dividend payable (if declared) per share of
    Non-Cumulative Preferred Stock for dividend payments made on or
    after the effective date of such change in the Code will be
    adjusted by multiplying the amount of the dividend payable
    pursuant to Section 2(a) (before adjustment) by a factor,
    which shall be the number determined in accordance with the
    following formula (the “DRD Formula”), and rounding
    the result to the nearest cent (with one-half cent rounded up):

 

    1 - .35 (1 - .70)

    1 - .35 (1 - DRP)

 

    For the purposes of the DRD Formula, “DRP” means the
    Dividends-Received Percentage (expressed as a decimal)
    applicable to the dividend in question; provided,
    however, that if the Dividends-Received Percentage
    applicable to the dividend in question is less than 50%, then
    the DRP will equal .50. In the event an adjustment to any
    dividend payable on the Non-Cumulative Preferred Stock is made
    pursuant to this Section 2(c), the resulting dividend rate
    may exceed 11% per annum. No amendment to the Code, other than a
    change in the percentage of the dividends-received deduction set
    forth in section 243(a)(1) of the Code or any successor
    provision, or a change in the percentage of the
    dividends-received deduction for certain categories of stock,
    which change is applicable to the Non-Cumulative Preferred
    Stock, will give rise to an adjustment.

 

    Notwithstanding the foregoing provisions, if, with respect to
    any such amendment, the Corporation receives either an
    unqualified opinion of nationally recognized independent tax
    counsel selected by the Corporation or a private letter ruling
    or similar form of assurance from the Internal Revenue Service
    (the “IRS”) to the effect that such an amendment does
    not apply to a dividend payable on the Non-Cumulative Preferred
    Stock, then such amendment shall not result in the adjustment
    provided for pursuant to the DRD Formula with respect to such
    dividend. The opinion referenced in the previous sentence shall
    be based upon the legislation amending or establishing the DRP
    or upon a published pronouncement of the IRS addressing such
    legislation. Unless the context otherwise requires, references
    to dividends herein shall mean dividends as adjusted by the DRD
    Formula. The Corporation’s calculation of the dividends
    payable as so adjusted shall be final and not subject to review,
    absent manifest error.

 

    Notwithstanding the foregoing, if any such amendment to the Code
    is enacted after the dividend payable on a Dividend Payment Date
    has been declared but before such dividend is paid, the amount
    of the dividend payable on such Dividend Payment Date shall not
    be increased. Instead, additional dividends (the “Post
    Declaration Date Dividends”), equal to the excess, if any,
    of (x) the product of the dividend paid by the Corporation
    on such Dividend Payment Date and the DRD Formula (where the DRP
    used in the DRD Formula would be equal to the greater of the
    Dividends-Received Percentage applicable to the dividend in
    question and .50) over (y) the dividend paid by the
    Corporation on such Dividend Payment Date, shall be payable (if
    declared) to holders of Non-Cumulative Preferred Stock on the
    record date applicable to the next succeeding Dividend Payment
    Date, in addition to any other amounts payable on such date.

 

    If any such amendment to the Code is enacted and the reduction
    in the Dividends-Received Percentage retroactively applies to a
    Dividend Payment Date as to which the Corporation previously
    paid dividends on the Non-Cumulative Preferred Stock (each, an
    “Affected Dividend Payment Date”), the Corporation
    shall pay (if declared) additional dividends (the
    “Retroactive Dividends”) to holders on the record date
    applicable to the next succeeding Dividend Payment Date (or, if
    such amendment is enacted after the dividend payable on such
    Dividend Payment Date has been declared, to holders on the
    record date applicable to the second succeeding Dividend Payment
    Date following the date of enactment) in an amount equal to the
    excess of (x) the product of the dividend paid by the
    Corporation on each Affected Dividend Payment Date and the DRD
    Formula (where the DRP used in the DRD Formula would be equal to
    the greater of the Dividends-Received Percentage and .50 applied
    to each Affected Dividend Payment Date) over (y) the sum of
    the dividend paid by the Corporation on each Affected Dividend
    Payment Date. The Corporation will make only one payment of
    Retroactive Dividends for any such amendment. Notwithstanding
    the foregoing provisions, if, with respect to any such
    amendment, the Corporation receives either an unqualified
    opinion of nationally recognized independent tax counsel
    selected by the Corporation or a private letter ruling or
    similar form of assurance from the IRS to the effect that such
    amendment does not apply to a dividend payable on an Affected
    Dividend Payment Date for the Non-Cumulative Preferred Stock,
    then such amendment will not result in the payment of
    Retroactive Dividends with respect to such Affected Dividend
    Payment Date. The opinion referenced in the previous sentence
    must be based upon the legislation amending or establishing the
    DRP or upon a published pronouncement of the IRS addressing such
    legislation.

 

    In the event that the amount of dividends payable per share of
    the Non-Cumulative Preferred Stock is adjusted pursuant to the
    DRD Formula and/or Post Declaration Date Dividends or
    Retroactive Dividends are to be paid, the Corporation will give
    notice of each such adjustment and, if applicable, any Post
    Declaration Date Dividends and Retroactive Dividends to be given
    as soon as practicable to the holders of Non-Cumulative
    Preferred Stock.

 

    (d) Notwithstanding any other provision of this
    Certificate, the Board of Directors, in its discretion, may
    choose to pay dividends on the
    Non-Cumulative
    Preferred Stock without the payment of any dividends on the
    Common Stock or any other class or series of stock from time to
    time outstanding ranking junior to the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends.

 

    (e) No dividend shall be declared or paid or set apart for
    payment on any shares of the
    Non-Cumulative
    Preferred Stock if at the same time any arrears or default
    exists in the payment of dividends on any outstanding class or
    series of stock of Freddie Mac ranking prior to or (except as
    provided herein) on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends. If and
    whenever dividends, having been declared, shall not have been
    paid in full, as aforesaid, on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any other class or series
    of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends, all
    such dividends that have been declared on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any such other class or
    series shall be paid pro rata, so that the respective amounts of
    dividends paid per share on the
    Non-Cumulative
    Preferred Stock and on such other class or series shall in all
    cases bear to each other the same ratio that the respective
    amounts of dividends declared but unpaid per share on the shares
    of the

 

    Non-Cumulative
    Preferred Stock (including any adjustments due to changes in the
    Dividends-Received
    Percentage) and on the shares of such other class or series bear
    to each other.

 

    (f) Holders of shares of the Non-Cumulative Preferred Stock
    shall not be entitled to any dividends, in cash or in property,
    other than as herein provided and shall not be entitled to
    interest, or any sum in lieu of interest, on or in respect of
    any dividend payment.

 

    3. Optional
    Redemption

 

    (a) The Non-Cumulative Preferred Stock shall not be
    redeemable prior to March 31, 2003. On that date and on
    March 31 every year thereafter, subject to the notice provisions
    set forth in Section 3(b) below and to any further
    limitations which may be imposed by law, Freddie Mac may redeem
    the
    Non-Cumulative
    Preferred Stock, in whole or in part, out of funds legally
    available therefor, at the redemption price of $50.00 per share
    plus an amount, determined in accordance with Section 2
    above, equal to the amount of the dividend that would otherwise
    be payable for the Dividend Period ending on the date of such
    redemption. If less than all of the outstanding shares of the
    Non-Cumulative
    Preferred Stock are to be redeemed, Freddie Mac shall select
    shares to be redeemed from the outstanding shares not previously
    called for redemption by lot or pro rata (as nearly as possible)
    or by any other method which Freddie Mac in its sole discretion
    deems equitable.

 

    (b) In the event Freddie Mac shall redeem any or all of the
    Non-Cumulative Preferred Stock as aforesaid, notice of such
    redemption shall be given by Freddie Mac by first class mail,
    postage prepaid, mailed neither less than 30 nor more than
    60 days prior to the redemption date, to each holder of
    record of the shares of the
    Non-Cumulative
    Preferred Stock being redeemed, at such holder’s address as
    the same appears in the books and records of Freddie Mac. Each
    such notice shall state the number of shares being redeemed, the
    redemption price, the redemption date and the place at which
    such holder’s certificate(s) representing shares of the
    Non-Cumulative
    Preferred Stock must be presented for cancellation or exchanges,
    as the case may be, upon such redemption. Failure to give
    notice, or any defect in the notice, to any holder of the
    Non-Cumulative Preferred Stock shall not affect the validity of
    the proceedings for the redemption of shares of any other holder
    of the
    Non-Cumulative
    Preferred Stock being redeemed.

 

    (c) Notice having been mailed as aforesaid, from and after
    the redemption date specified therein and upon payment of the
    consideration set forth in Section 3(a) above, said shares
    of the
    Non-Cumulative
    Preferred Stock shall no longer be deemed to be outstanding, and
    all rights of the holders thereof as holders of the
    Non-Cumulative
    Preferred Stock shall cease, with respect to shares so redeemed.

 

    (d) Any shares of the Non-Cumulative Preferred Stock which
    shall have been redeemed shall, after such redemption, no longer
    have the status of authorized, issued or outstanding shares.

 

    4. No
    Voting Rights

 

    Except as set forth in Section 9(h) below, the shares of
    the
    Non-Cumulative
    Preferred Stock shall not have any voting powers, either general
    or special.

 

    5. No
    Conversion or Exchange Rights

 

    The holders of shares of the
    Non-Cumulative
    Preferred Stock shall not have any right to convert such shares
    into or exchange such shares for any other class or series of
    stock or obligations of Freddie Mac.

 

    6. No
    Preemptive Rights

 

    No holder of the
    Non-Cumulative
    Preferred Stock shall as such holder have any preemptive right
    to purchase or subscribe for any other shares, rights, options
    or other securities of any class of Freddie Mac which at any
    time may be sold or offered for sale by Freddie Mac.

 

    7. Liquidation
    Rights and Preference

 

    (a) Except as otherwise set forth herein, upon the
    voluntary or involuntary dissolution, liquidation or winding up
    of Freddie Mac, after payment of or provision for the
    liabilities of Freddie Mac and the expenses of such dissolution,
    liquidation or winding up, the holders of the outstanding shares
    of the
    Non-Cumulative
    Preferred Stock shall be entitled to receive out of the assets
    of Freddie Mac available for distribution to stockholders,
    before any payment or distribution shall be made on the Common
    Stock or any other class or series of stock of Freddie Mac
    ranking junior to the
    Non-Cumulative
    Preferred Stock upon liquidation, the amount of $50.00 per share
    plus an amount, determined in accordance with Section 2
    above, equal to the dividend, if any, otherwise payable for the
    then-current
    Dividend Period accrued through and including the date of
    payment in respect of such dissolution, liquidation or winding
    up, and the holders of the outstanding shares of any class or
    series of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock upon liquidation shall be entitled to receive
    out of the assets of Freddie Mac available for distribution to
    stockholders, before any such payment or distribution shall be
    made on the Common Stock or any other class or series of stock
    of Freddie Mac ranking junior to the
    Non-Cumulative
    Preferred Stock and to such parity stock upon liquidation, any
    corresponding preferential amount to which the holders of such
    parity stock may, by the terms thereof, be entitled; provided,
    however, that if the assets of Freddie Mac available for
    distribution to stockholders shall be insufficient for the
    payment of the full amounts to which the holders of the
    outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of the outstanding shares of
    such parity stock shall be entitled to receive upon such
    dissolution, liquidation or winding up of Freddie Mac as
    aforesaid, then, subject to paragraph (b) of this
    Section 7, all of the assets of Freddie Mac available for
    distribution to stockholders shall be distributed to the holders
    of outstanding shares of the
    Non-Cumulative
    Preferred Stock and to the holders of outstanding shares of such
    parity stock pro rata, so that the amounts so distributed to
    holders of the
    Non-Cumulative
    Preferred Stock and to holders of such classes or series of such
    parity stock, respectively, shall bear to each other the same
    ratio that the respective distributive amounts to which they are
    so entitled (including any adjustment due to changes in the
    Dividends-Received Percentage) bear to each other. After the
    payment of the aforesaid amounts to which they are entitled, the
    holders of outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of outstanding shares of any
    such parity stock shall not be entitled to any further
    participation in any distribution of assets of Freddie Mac.

 

    (b) Notwithstanding the foregoing, upon the dissolution,
    liquidation or winding up of Freddie Mac, the holders of shares
    of the
    Non-Cumulative
    Preferred Stock then outstanding shall not be entitled to be
    paid any amounts to which such holders are entitled pursuant to
    paragraph (a) of this

 

    Section 7 unless and until the holders of any classes or
    series of stock of Freddie Mac ranking prior upon liquidation to
    the Non-Cumulative Preferred Stock shall have been paid all
    amounts to which such classes or series are entitled pursuant to
    their respective terms.

 

    (c) Neither the sale of all or substantially all of the
    property or business of Freddie Mac, nor the merger,
    consolidation or combination of Freddie Mac into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 7.

 

    8. Additional
    Classes or Series of Stock

 

    The Board of Directors shall have the right at any time in the
    future to authorize, create and issue, by Resolution or
    resolutions, one or more additional classes or series of stock
    of Freddie Mac, and to determine and fix the distinguishing
    characteristics and the relative rights, preferences, privileges
    and other terms of the shares thereof. Any such class or series
    of stock may rank prior to or on a parity with or junior to the
    Non-Cumulative Preferred Stock as to dividends or upon
    liquidation or otherwise.

 

    9. Miscellaneous

 

    (a) Any stock of any class or series of Freddie Mac shall
    be deemed to rank:

 

    (i) prior to the shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    the holders of such class or series shall be entitled to the
    receipt of dividends or of amounts distributable upon
    dissolution, liquidation or winding up of Freddie Mac, as the
    case may be, in preference or priority to the holders of shares
    of the
    Non-Cumulative
    Preferred Stock;

 

    (ii) on a parity with shares of the Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation,
    whether or not the dividend rates or amounts, dividend payment
    dates or redemption of liquidation prices per share, if any, be
    different from those of the
    Non-Cumulative
    Preferred Stock, if the holders of such class or series shall be
    entitled to the receipt of dividends or of amounts distributable
    upon dissolution, liquidation or winding up of Freddie Mac, as
    the case may be, in proportion to their respective dividend
    rates or amounts or liquidation prices, without preference or
    priority, one over the other, as between the holders of such
    class or series and the holders of shares of the
    Non-Cumulative
    Preferred Stock; and

 

    (iii) junior to shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    such class or series shall be Common Stock, or if the holders of
    shares of the
    Non-Cumulative
    Preferred Stock shall be entitled to receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of such class or series.

 

    (b) Freddie Mac and any agent of Freddie Mac may deem and
    treat the holder of a share or shares of
    Non-Cumulative
    Preferred Stock, as shown in Freddie Mac’s books and
    records, as the absolute owner of such share or shares of
    Non-Cumulative
    Preferred Stock for the purpose of receiving payment of
    dividends in respect of such share or shares of
    Non-Cumulative
    Preferred Stock and for all other purposes whatsoever, and
    neither Freddie Mac nor any agent of Freddie Mac shall be
    affected by any notice to the contrary. All payments made to or
    upon the order of any such person shall be valid and, to the
    extent of the sum or sums so paid, effectual to satisfy and
    discharge

 

    liabilities for moneys payable by Freddie Mac on or with respect
    to any such share or shares of
    Non-Cumulative
    Preferred Stock.

 

    (c) The shares of the
    Non-Cumulative
    Preferred Stock, when duly issued, shall be fully paid and
    non-assessable.

 

    (d) The
    Non-Cumulative
    Preferred Stock shall be issued, and shall be transferable on
    the books of Freddie Mac, only in whole shares, it being
    intended that no fractional interests in shares of
    Non-Cumulative
    Preferred Stock shall be created or recognized by Freddie Mac.

 

    (e) For purposes of this Certificate, the term
    “Freddie Mac” means the Federal Home Loan Mortgage
    Corporation and any successor thereto by operation of law or by
    reason of a merger, consolidation or combination.

 

    (f) This Certificate and the respective rights and
    obligations of Freddie Mac and the holders of the
    Non-Cumulative
    Preferred Stock with respect to such
    Non-Cumulative
    Preferred Stock shall be construed in accordance with and
    governed by the laws of the United States, provided that the law
    of the Commonwealth of Virginia shall serve as the federal rule
    of decision in all instances except where such law is
    inconsistent with Freddie Mac’s enabling legislation, its
    public purposes or any provision of this Certificate.

 

    (g) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon Freddie Mac shall be given or served
    in writing addressed (unless and until another address shall be
    published by Freddie Mac) to Freddie Mac, 8200 Jones Branch
    Drive, McLean, Virginia 22102, Attn: Executive Vice
    President-General
    Counsel and Secretary. Such notice, demand or other
    communication to or upon Freddie Mac shall be deemed to have
    been sufficiently given or made only upon actual receipt of a
    writing by Freddie Mac. Any notice, demand or other
    communication which by any provision of this Certificate is
    required or permitted to be given or served by Freddie Mac
    hereunder may be given or served by being deposited first class,
    postage prepaid, in the United States mail addressed (i) to
    the holder as such holder’s name and address may appear at
    such time in the books and records of Freddie Mac or
    (ii) if to a person or entity other than a holder of record
    of the Non-Cumulative Preferred Stock, to such person or entity
    at such address as appears to Freddie Mac to be appropriate at
    such time. Such notice, demand or other communication shall be
    deemed to have been sufficiently given or made, for all
    purposes, upon mailing.

 

    (h) Freddie Mac, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

 

    (i) Without the consent of the holders of the
    Non-Cumulative Preferred Stock, Freddie Mac may amend, alter,
    supplement or repeal any provision of this Certificate to cure
    any ambiguity, to correct or supplement any provision herein
    which may be defective or inconsistent with any other provision
    herein, or to make any other provisions with respect to matters
    or questions arising under this Certificate, provided that such
    action shall not materially and adversely affect the interests
    of the holders of the Non-Cumulative Preferred Stock.

 

    (ii) The consent of the holders of at least 66 2/3% of
    all of the shares of the Non-Cumulative Preferred Stock at the
    time outstanding, given in person or by proxy, either in writing
    or by a vote at a meeting called for the purpose at which the
    holders of shares of the
    Non-Cumulative
    Preferred Stock shall vote together as a class, shall be
    necessary for

 

    authorizing, effecting or validating the amendment, alteration,
    supplementation or repeal of the provisions of this Certificate
    if such amendment, alteration, supplementation or repeal would
    materially and adversely affect the powers, preferences, rights,
    privileges, qualifications, limitations, restrictions, terms or
    conditions of the Non-Cumulative Preferred Stock. The creation
    and issuance of any other class or series of stock, or the
    issuance of additional shares of any existing class or series of
    stock of Freddie Mac (including the
    Non-Cumulative
    Preferred Stock), whether ranking prior to, on a parity with or
    junior to the Non-Cumulative Preferred Stock, shall not be
    deemed to constitute such an amendment, alteration,
    supplementation or repeal.

 

    (iii) Holders of the Non-Cumulative Preferred Stock shall
    be entitled to one vote per share on matters on which their
    consent is required pursuant to subparagraph (ii) of this
    paragraph (h). In connection with any meeting of such
    holders, the Board of Directors shall fix a record date, neither
    earlier than 60 days nor later than 10 days prior to
    the date of such meeting, and holders of record of shares of the
    Non-Cumulative
    Preferred Stock on such record date shall be entitled to notice
    of and to vote at any such meeting and any adjournment. The
    Board of Directors, or such person or persons as it may
    designate, may establish reasonable rules and procedures as to
    the solicitation of the consent of holders of the
    Non-Cumulative
    Preferred Stock at any such meeting or otherwise, which rules
    and procedures shall conform to the requirements of any national
    securities exchange on which the
    Non-Cumulative
    Preferred Stock may be listed at such time.

 

    (i) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE
    NON-CUMULATIVE PREFERRED STOCK BY OR ON BEHALF OF A HOLDER SHALL
    CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL
    OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF
    ALL OF THE TERMS AND PROVISIONS OF THIS CERTIFICATE. NO
    SIGNATURE OR OTHER FURTHER MANIFESTATION OF ASSENT TO THE TERMS
    AND PROVISIONS OF THIS CERTIFICATE SHALL BE NECESSARY FOR ITS
    OPERATION OR EFFECT AS BETWEEN FREDDIE MAC AND THE HOLDER (AND
    ALL SUCH OTHERS).

 

    IN WITNESS WHEREOF, I have hereunto set my hand and the seal of
    Freddie Mac this 23rd day of March, 2001.

 

 

    [Seal]
    

    /s/  Maud
    Mater

    Maud Mater, Secretary

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