Document:

exv4w1

 

Exhibit 4.1

     Unless this certificate is presented by an authorized representative of The Depository
Trust Company, a New York Corporation (“DTC”), to Issuer or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

	 	 	 
	Certificate No.: 1

	 	CUSIP No.: 637432 HT5
	ISIN No.: US637432HT56
	 	 
	PRINCIPAL AMOUNT: $500,000,000
	 	 
	MATURITY DATE: April 10, 2017
	 	 
	ISSUE DATE: April 10, 2007

	 	CERTIFICATE INTEREST RATE: 5.45%

5.45% COLLATERAL TRUST BOND DUE 2017

          National Rural Utilities Cooperative Finance Corporation, a District of Columbia cooperative
association (hereinafter called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
CEDE & CO., or registered assigns, the principal sum of $500,000,000 on the Maturity Date set forth
above; and to pay interest thereon from the Issue Date set forth above at the Certificate Interest
Rate set forth above, until the principal hereof is paid or made available for payment.

          Interest on the Bonds will be payable on April 10 and October 10 of each year commencing on
October 10, 2007 to the persons in whose names such Bonds are registered at the close of business
on the fifteenth calendar day preceding the payment date, or if not a business day, the next
succeeding business day. Interest on the Bonds will accrue from and including the date of issue or
from and including the last date in respect of which interest has been paid, as the case may be,
to, but excluding, the relevant interest payment date, date of redemption or the date of maturity,

 

 

as the case may be. Interest on the Bonds will be computed on the basis of a 360-day year of
twelve 30-day months.

          If any of the interest payment dates or the maturity date falls on a day that is not a
Business Day, the payment of interest or principal will be postponed to the next succeeding
Business Day, but the payment made on such dates will be treated as being made on the date payment
was first due and the holders of the Bonds will not be entitled to any further interest or other
payments with respect to such postponements.

          Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof which further provisions shall for all purposes have the same effect as if set forth at this
place.

          Unless the certificate of authentication hereon has been executed by or on behalf of U.S. Bank
National Association, the successor Trustee under such Indenture, or its successor thereunder, by
manual signature, this Bond shall not be entitled to any benefit under such Indenture, or be valid
or obligatory for any purpose.

 

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION

 	 
	 	By:  	 	 
	 	 	Steven L. Lilly 	 
	 	 	Senior Vice President, Financial

Services & Chief Financial Officer 	 
	 

(Seal)

Attest:

	 	 	 	 	 	 
	By:	 	 	 	 
	 

	 	 	 	 

Trustee’s Certificate of
Authentication

This is one of the Bonds

of the series designated therein,

described in the within-

mentioned Indenture

Dated:

By: U.S. BANK NATIONAL ASSOCIATION, 
       Trustee

	 	 	 	 	 
	By:	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer	 	 

 

 

REVERSE OF BOND

          This Bond is one of an authorized issue of Bonds of the Company known as its “5.45% Collateral
Trust Bonds due 2017”, issued and to be issued in one or more series under, and all equally and
ratably secured (except as any sinking or other fund may afford additional special security for the
Bonds of any particular series) by, an Indenture dated as of February 15, 1994 (as amended,
supplemented and modified and in effect from time to time, the “Indenture”), executed by the
Company to U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term
includes any successor Trustee under the Indenture), to which Indenture reference is hereby made
for a description of the nature and extent of the securities and other property assigned, pledged,
transferred and mortgaged thereunder the rights of the Holders of said Bonds and of the Trustee and
of the Company in respect of such security, and the terms upon which said Bonds are to be
authenticated and delivered.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Bonds under the Indenture at any time by the Company with the consent of the Holders of not less
than a majority in aggregate principal amount of the Bonds at the time Outstanding as defined in
the Indenture. The Indenture also permits, with certain exceptions as therein provided, amendment
of the terms of Mortgage Notes pledged under the Indenture, and Mortgages and Loan Agreements
pursuant to which they were issued, at any time by the Company with the consent of the Holders of
not less than a majority in aggregate principal amount of the Bonds at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Bonds at the time Outstanding, on behalf of the Holders of all Bonds, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such

 

 

consent or waiver by the Holder of this Bond shall be conclusive and binding upon such Holder
and upon all future Holders of this Bond and of any Bond issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon
this Bond.

          As provided in the Indenture, said Bonds are issuable in series which may vary as in said
Indenture provided or permitted. This Bond is one of a series entitled 5.45% Collateral Trust
Bonds due 2017.

          The Company may redeem the Bonds in whole or in part at any time, at a “make-whole” redemption
price equal to the greater of (1) the principal amount being redeemed or (2) the sum of the present
values of the remaining scheduled payments of the principal and interest (other than accrued
interest) on the Bonds being redeemed, discounted to the redemption date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis
points for the Bonds, plus in each case accrued interest to the redemption date.

          If the Company elects to redeem less than all of the Bonds, and such Bonds are at the time
represented by a global security, then the depositary will select by lot the particular interest to
be redeemed. If the Company elects to redeem less than all of the Bonds, and such Bonds are not
represented by a global security, then the Trustee will select the particular Bonds to be redeemed
in a manner it deems appropriate and fair.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
date of redemption to each holder of the Bonds to be redeemed. Unless the Company defaults in
payment of the redemption price, on and after the date of redemption, interest will cease to accrue
on such Bonds or the portions called for redemption.

 

 

          If an Event of Default, as defined in the Indenture, shall occur, the principal of this Bond
may become or be declared due and payable, in the manner and with the effect provided in the
Indenture.

          This Bond is transferable by the registered owner hereof in person or by attorney authorized
in writing at the office or agency of the Company referred to on the face hereof and at such other
offices or agencies as may be maintained for such purpose, upon surrender of this Bond, and upon
any such transfer a new Bond for the same series, for the same aggregate principal amount, will be
issued to the transferee in exchange hereof.

          The Bonds of this series are issuable only as registered Bonds without coupons in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in, and
subject to the provisions of, the Indenture, Bonds of this series are exchangeable for other Bonds
of this series of a different authorized denomination or denominations, as requested by the Holder
surrendering the same.

          No service charge will be made for any such transfer or exchange, but the Company or the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment for transfer at any office or agency of the Company designated for
such purpose, the Company, the Trustee and any agent of the Company or the Trustee may treat the
person in whose name this Bond is registered as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes whether or not this Bond be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

          No reference herein to the Indenture and no provision of this Bond or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional,

 

 

to pay the principal of, and interest on this Bond at the times, place and rate, and in the
coin or currency, herein prescribed.

          The following terms shall have the following meanings:

          “Business Day” means any day other than a Saturday or Sunday, and a day that is not a day on
which banks are generally authorized or required by law or executive order to be closed in the City
of New York, New York or the District of Columbia.

          “Comparable Treasury Issue’’ means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds
being redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of such Bonds.

          “Comparable Treasury Price’’ means, for any redemption date, (1) the average of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third business day preceding the redemption date, as set forth in the
daily statistical release (or any successor release) published by the Federal Reserve Bank of New
York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities’’ or (2) if that
release (or any successor release) is not published or does not contain those prices on that
Business Day, (A) the average of the Reference Treasury Dealer Quotations for the redemption date,
after excluding the highest and lowest Reference Treasury Dealer Quotations for that redemption
date, or (B) if the Company obtains fewer than four Reference Treasury Dealer Quotations, the
average of all the Reference Treasury Dealer Quotations obtained.

          “Independent Investment Banker’’ means one of the Reference Treasury Dealers appointed by the
trustee after consultation with the Company.

 

 

          “Reference Treasury Dealer’’ means (1) each of Lehman Brothers Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated and UBS Securities LLC and their respective successors; provided,
however, that if any of them ceases to be a primary U.S. Government securities dealer in the United
States, the Company will appoint another primary U.S. Government securities dealer as a substitute
and (2) any other U.S. Government securities dealers selected by the Company.

          “Reference Treasury Dealer Quotations’’ means, for each Reference Treasury Dealer and any
redemption date, the average, as determined by the trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m. New York City time on the
third business day preceding the redemption date for the bonds being redeemed.

          “Treasury Rate’’ means, for any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for the redemption date.

          All terms used in this Bond which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

 

ASSIGNMENT

          For value received the undersigned sells, assigns and transfers unto (name, address including
zip code and taxpayer I.D. or Social Security number of assignee)                                                                                                                         the within Certificate and does hereby irrevocably constitute and
appoint                                                                                 
 attorney to transfer the said Certificate on the books kept for
registration thereof with full power of substitution on the premises.

Dated:                     

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature by or on behalf of Assignor 	 
	 	 	 	 

 

 

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York Corporation (“DTC”), to Issuer or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

	 	 	 
	Certificate No.: 2

	 	CUSIP No.: 637432 HT5
	ISIN No.: US637432HT56
	 	 
	PRINCIPAL AMOUNT: $70,000,000
	 	 
	MATURITY DATE: April 10, 2017
	 	 
	ISSUE DATE: April 10, 2007

	 	CERTIFICATE INTEREST RATE: 5.45%

5.45% COLLATERAL TRUST BOND DUE 2017

          National Rural Utilities Cooperative Finance Corporation, a District of Columbia cooperative
association (hereinafter called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
CEDE & CO., or registered assigns, the principal sum of $70,000,000 on the Maturity Date set forth
above; and to pay interest thereon from the Issue Date set forth above at the Certificate Interest
Rate set forth above, until the principal hereof is paid or made available for payment.

          Interest on the Bonds will be payable on April 10 and October 10 of each year commencing on
October 10, 2007 to the persons in whose names such Bonds are registered at the close of business
on the fifteenth calendar day preceding the payment date, or if not a business day, the next
succeeding business day. Interest on the Bonds will accrue from and including the date of issue or
from and including the last date in respect of which interest has been paid, as the case may be,
to, but excluding, the relevant interest payment date, date of redemption or the date of maturity,

 

 

as the case may be. Interest on the Bonds will be computed on the basis of a 360-day year of
twelve 30-day months.

          If any of the interest payment dates or the maturity date falls on a day that is not a
Business Day, the payment of interest or principal will be postponed to the next succeeding
Business Day, but the payment made on such dates will be treated as being made on the date payment
was first due and the holders of the Bonds will not be entitled to any further interest or other
payments with respect to such postponements.

          Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof which further provisions shall for all purposes have the same effect as if set forth at this
place.

          Unless the certificate of authentication hereon has been executed by or on behalf of U.S. Bank
National Association, the successor Trustee under such Indenture, or its successor thereunder, by
manual signature, this Bond shall not be entitled to any benefit under such Indenture, or be valid
or obligatory for any purpose.

 

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION

 	 
	 	By:  	 	 
	 	 	Steven L. Lilly 	 
	 	 	Senior Vice President, Financial

Services & Chief Financial Officer 	 
	 

	 	 	 	 	 
	(Seal)

 

Attest:

 	 	 
	By:  	 	 	 
	 	 	 	 
	Trustee’s Certificate of
Authentication

This is one of the Bonds
of the series designated therein,
described in the within-mentioned Indenture
 	 	 
	 
	Dated:
 	 	 
	By:  	U.S. BANK NATIONAL ASSOCIATION, Trustee
 	 	 
	 
	By:  	 	 	 
	 	Authorized Officer 	 	 
	 	 	 	 
	 

 

 

REVERSE OF BOND

          This Bond is one of an authorized issue of Bonds of the Company known as its “5.45% Collateral
Trust Bonds due 2017”, issued and to be issued in one or more series under, and all equally and
ratably secured (except as any sinking or other fund may afford additional special security for the
Bonds of any particular series) by, an Indenture dated as of February 15, 1994 (as amended,
supplemented and modified and in effect from time to time, the “Indenture”), executed by the
Company to U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term
includes any successor Trustee under the Indenture), to which Indenture reference is hereby made
for a description of the nature and extent of the securities and other property assigned, pledged,
transferred and mortgaged thereunder the rights of the Holders of said Bonds and of the Trustee and
of the Company in respect of such security, and the terms upon which said Bonds are to be
authenticated and delivered.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Bonds under the Indenture at any time by the Company with the consent of the Holders of not less
than a majority in aggregate principal amount of the Bonds at the time Outstanding as defined in
the Indenture. The Indenture also permits, with certain exceptions as therein provided, amendment
of the terms of Mortgage Notes pledged under the Indenture, and Mortgages and Loan Agreements
pursuant to which they were issued, at any time by the Company with the consent of the Holders of
not less than a majority in aggregate principal amount of the Bonds at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Bonds at the time Outstanding, on behalf of the Holders of all Bonds, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such

 

 

consent or waiver by the Holder of this Bond shall be conclusive and binding upon such Holder
and upon all future Holders of this Bond and of any Bond issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon
this Bond.

          As provided in the Indenture, said Bonds are issuable in series which may vary as in said
Indenture provided or permitted. This Bond is one of a series entitled 5.45% Collateral Trust
Bonds due 2017.

          The Company may redeem the Bonds in whole or in part at any time, at a “make-whole” redemption
price equal to the greater of (1) the principal amount being redeemed or (2) the sum of the present
values of the remaining scheduled payments of the principal and interest (other than accrued
interest) on the Bonds being redeemed, discounted to the redemption date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis
points for the Bonds, plus in each case accrued interest to the redemption date.

          If the Company elects to redeem less than all of the Bonds, and such Bonds are at the time
represented by a global security, then the depositary will select by lot the particular interest to
be redeemed. If the Company elects to redeem less than all of the Bonds, and such Bonds are not
represented by a global security, then the Trustee will select the particular Bonds to be redeemed
in a manner it deems appropriate and fair.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
date of redemption to each holder of the Bonds to be redeemed. Unless the Company defaults in
payment of the redemption price, on and after the date of redemption, interest will cease to accrue
on such Bonds or the portions called for redemption.

 

 

          If an Event of Default, as defined in the Indenture, shall occur, the principal of this Bond
may become or be declared due and payable, in the manner and with the effect provided in the
Indenture.

          This Bond is transferable by the registered owner hereof in person or by attorney authorized
in writing at the office or agency of the Company referred to on the face hereof and at such other
offices or agencies as may be maintained for such purpose, upon surrender of this Bond, and upon
any such transfer a new Bond for the same series, for the same aggregate principal amount, will be
issued to the transferee in exchange hereof.

          The Bonds of this series are issuable only as registered Bonds without coupons in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in, and
subject to the provisions of, the Indenture, Bonds of this series are exchangeable for other Bonds
of this series of a different authorized denomination or denominations, as requested by the Holder
surrendering the same.

          No service charge will be made for any such transfer or exchange, but the Company or the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment for transfer at any office or agency of the Company designated for
such purpose, the Company, the Trustee and any agent of the Company or the Trustee may treat the
person in whose name this Bond is registered as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes whether or not this Bond be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

 

          No reference herein to the Indenture and no provision of this Bond or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, and interest on this Bond at the times, place and rate, and in the coin or currency,
herein prescribed.

          The following terms shall have the following meanings:

          “Business Day” means any day other than a Saturday or Sunday, and a day that is not a day on
which banks are generally authorized or required by law or executive order to be closed in the City
of New York, New York or the District of Columbia.

          “Comparable Treasury Issue’’ means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds
being redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of such Bonds.

          “Comparable Treasury Price’’ means, for any redemption date, (1) the average of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third business day preceding the redemption date, as set forth in the
daily statistical release (or any successor release) published by the Federal Reserve Bank of New
York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities’’ or (2) if that
release (or any successor release) is not published or does not contain those prices on that
Business Day, (A) the average of the Reference Treasury Dealer Quotations for the redemption date,
after excluding the highest and lowest Reference Treasury Dealer Quotations for that redemption
date, or (B) if the Company obtains fewer than four Reference Treasury Dealer Quotations, the
average of all the Reference Treasury Dealer Quotations obtained.

 

 

          “Independent Investment Banker’’ means one of the Reference Treasury Dealers appointed by the
trustee after consultation with the Company.

          “Reference Treasury Dealer’’ means (1) each of Lehman Brothers Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated and UBS Securities LLC and their respective successors; provided,
however, that if any of them ceases to be a primary U.S. Government securities dealer in the United
States, the Company will appoint another primary U.S. Government securities dealer as a substitute
and (2) any other U.S. Government securities dealers selected by the Company.

          “Reference Treasury Dealer Quotations’’ means, for each Reference Treasury Dealer and any
redemption date, the average, as determined by the trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m. New York City time on the
third business day preceding the redemption date for the bonds being redeemed.

          “Treasury Rate’’ means, for any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for the redemption date.

               All terms used in this Bond which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

 

ASSIGNMENT

          For value received the undersigned sells, assigns and transfers unto (name, address including
zip code and taxpayer I.D. or Social Security number of assignee)                                                                                                                         the within Certificate and does hereby irrevocably constitute and
appoint                                                                                 
 attorney to transfer the said Certificate on the books kept for
registration thereof with full power of substitution on the premises.

Dated:                     

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature by or on behalf of Assignorexv4w2

 

Exhibit 4.2

     This Note is a Depositary Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of a Depositary or nominee of a Depositary. This Note is
exchangeable for Notes registered in the name of a Person other than the Depositary or its nominee
only in the limited circumstances described in the Indenture, and no transfer of this Note (other
than a transfer of this Note as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any nominee of the Depositary to a successor Depositary or a nominee of such
successor Depositary) may be registered except in such limited circumstances.

     Unless this certificate is presented by an authorized representative of The Depositary Trust
Company (55 Water Street, New York, New York) to the issuer or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co.
or such other name as requested by an authorized representative of The Depositary Trust Company and
any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.

	 	 	 
	Certificate No.: 1

	 	CUSIP No.: 637432 HU2
	PRINCIPAL AMOUNT: $300,000,000

	 	ISIN No.: US637432HU20
	ORIGINAL ISSUE DATE: April 10, 2007
	 	 

EXTENDIBLE SENIOR UNSECURED FLOATING RATE NOTES INITIALLY DUE 2009

          NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, a District of Columbia cooperative
association (herein called the “Company”, which term includes any successor Person under the
Indenture referred to on the reverse hereof), for value received, hereby promises to pay to CEDE &
Co., or registered assigns, the principal sum of $300,000,000 on April 9, 2009, or, if such day is
not a Business Day, the immediately following Business Day (the “initial maturity date”), unless
the maturity of all or any portion of the principal amount of the Notes is extended in accordance
with the procedures set forth below, but in no event will the maturity of the Notes be extended
beyond April 9, 2014, or, if such day is not a Business Day, the immediately following Business Day
(the “final maturity date”); and to pay interest thereon as set forth below, until the principal
hereof is paid or made available for payment.

          During a notice period for any election date (as defined below) the maturity of all or any
portion of the principal amount of the Notes may be extended to the actual maturity date (as
defined below) opposite that election date. The election dates will be the 9th calendar day of each
April, July, October and January, commencing on July 9, 2007 provided that if any such day is not a
Business Day, the election date will be extended to the next succeeding Business Day. The actual
maturity date will be the initial maturity date, the final maturity date and the 9th calendar day
of each April, July, October and January, commencing on April 9, 2009, provided that if such day is
not a Business Day, the payment of principal and interest may be made on the

 

 

next succeeding Business Day as if it were made on the date that the payment was due, and no
interest on such principal will accrue for the period from and after the actual maturity date.

          The election dates and the corresponding actual maturity dates for the Notes are:

	 	 	 
	Election Date	 	Actual Maturity Date
	July 2007 Election Date

	 	July 2009 Actual Maturity Date
	October 2007 Election Date

	 	October 2009 Actual Maturity Date
	January 2008 Election Date

	 	January 2010 Actual Maturity Date
	April 2008 Election Date

	 	April 2010 Actual Maturity Date
	July 2008 Election Date

	 	July 2010 Actual Maturity Date
	October 2008 Election Date

	 	October 2010 Actual Maturity Date
	January 2009 Election Date

	 	January 2011 Actual Maturity Date
	April 2009 Election Date

	 	April 2011 Actual Maturity Date
	July 2009 Election Date

	 	July 2011 Actual Maturity Date
	October 2009 Election Date

	 	October 2011 Actual Maturity Date
	January 2010 Election Date

	 	January 2012 Actual Maturity Date
	April 2010 Election Date

	 	April 2012 Actual Maturity Date
	July 2010 Election Date

	 	July 2012 Actual Maturity Date
	October 2010 Election Date

	 	October 2012 Actual Maturity Date
	January 2011 Election Date

	 	January 2013 Actual Maturity Date
	April 2011 Election Date

	 	April 2013 Actual Maturity Date
	July 2011 Election Date

	 	July 2013 Actual Maturity Date
	October 2011 Election Date

	 	October 2013 Actual Maturity Date
	January 2012 Election Date

	 	January 2014 Actual Maturity Date
	April 2012 Election Date

	 	April 2014 Actual Maturity Date (the final maturity date)

          The maturity of all or any portion of the Notes having a principal amount of $2,000 or
any multiple of $1,000 in excess thereof may be extended. To make this election effective on any
election date, a holder of the Notes must deliver a notice of election during the notice period for
that election. The “notice period” for each election date will begin on the tenth Business Day
prior to the election date and end at 12:00 noon (New York City time) two Business Days immediately
preceding the election date; provided that if the election date is not a Business Day, the notice
period will be extended to 12:00 noon (New York City time) on the following Business Day. The
notice of election must be delivered through the normal clearing system channels described in more
detail below, no later than 12:00 noon, New York City time, on the last Business Day in the notice
period. Upon delivery to the Trustee of such notice of election to extend the maturity of the
Notes or any portion thereof during a notice period, the election will be revocable during each day
of such notice period, until 12:00 noon, New York City time, on the last Business Day in such
notice period, at which time such notice will become irrevocable.

          If, with respect to any election date, a holder of the Notes does not make an election to
extend the maturity date of all or any portion of the principal amount of its Notes, the principal
amount of the Notes for which such holder has failed to make an election will become due and
payable on the initial maturity date, or any later actual maturity date to which the maturity date
of the Notes has previously been extended. The principal amount of the Notes for which such
election is not exercised will be represented by a note issued on is such election date. The note
so issued will have the same terms and form part of the same series as the Notes, except that it
will not be extendible, will have a separate CUSIP number and its maturity date will be the

 

 

date that is the actual maturity date that corresponds to such election date or, if such
maturity date is not a Business Day, the next succeeding Business Day. The failure to elect to
extend the maturity of all or any portion of the Notes will be irrevocable and will be binding upon
any subsequent holder of such Notes.

          The Notes will be issued in registered global form and will remain on deposit with the
Depository Trust Company (“DTC”), as depositary for the Notes. Therefore, each holder of the Notes
must exercise the option to extend the maturity of such Notes through DTC. To ensure that DTC will
receive timely notice of any holder’s election to extend the maturity of all or a portion of the
Notes, the holder must instruct the direct or indirect participant through which it holds an
interest in the Notes to notify DTC of such election in accordance with the then applicable
operating procedures of DTC. DTC must be timely notified of such election so that it can deliver
notice thereof to the Trustee prior to the close of business on the last Business Day in the notice
period.

          DTC must receive any notice of election or any notice of revocation of a previous election
from its participants no later than 12:00 noon, New York City time, on the last Business Day of the
notice period for any election date. Different firms have different deadlines for accepting
instructions from their customers and holders of Notes should consult the direct or indirect
participant through which they hold an interest in the Notes to ascertain the deadline for ensuring
that timely notice will be delivered to DTC.

          The Notes will bear interest at three month US dollar LIBOR plus or minus the applicable
spread, as described below. Interest will be paid quarterly in arrears on the 9th calendar day of
each April, July, October and January, beginning on July 9, 2007, and on the applicable actual
maturity date. If any date on which interest is scheduled to be paid falls on a day that is not a
Business Day (each, an “original interest payment date”), the making of such interest payment will
be postponed to the next succeeding Business Day (and interest will accrue to but excluding that
next succeeding Business Day) unless, for any interest payment date other than an actual maturity
date, such next succeeding Business Day is in the next calendar month, in which case the date on
which interest is to be paid will be the immediately preceding Business Day (and interest will
accrue to but excluding that immediately preceding Business Day). A date on which an interest
payment is made (following any adjustment made in accordance with the terms of the immediately
preceding sentence) is referred to as an “interest payment date.” The final interest payment date
for the Notes, or any portion of the Notes maturing prior to the final maturity date, will be the
applicable maturity date, and interest for the last interest period preceding the final maturity
date (as set forth below) will accrue from and including the interest payment date immediately
preceding such maturity date to but excluding the maturity date (as adjusted as described in the
third sentence of this paragraph if such maturity date is not a Business Day). Interest on the
Notes will be computed on the basis of a 360-day year and the actual number of days elapsed.

          Interest on the Notes will accrue from and including April 10, 2007 to but excluding the first
interest payment date and then from and including each interest payment date to which interest has
been paid or duly provided for to but excluding the next interest payment date or the applicable
maturity date, as the case may be (following any adjustment made in

 

 

accordance with the terms of the immediately preceding paragraph). Each of these periods is
referred to as an “interest period.”

          The Company will pay interest on the Notes to the persons in whose names the Notes are
registered at the close of business on the Business Day immediately preceding the interest payment
date. However, the Company will pay interest on the maturity date to the same persons to whom the
principal will be payable.

          The Trustee has been initially appointed as calculation agent. The calculation agent will
calculate the interest rate on the Notes and reset the interest rate on each interest payment date
(or the issue date, in the case of the first interest period), each of which is referred to as an
“interest reset date,” for the interest period commencing on such date to but excluding the next
interest payment date (or the maturity date, in the case of the final interest period). The
interest rate for each interest period will be equal to the three month LIBOR plus the spread, as
determined below:

	 	 	 
	For Interest Reset Dates Occurring	 	Spread
	From and including April 10, 2007 to and including April 8, 2009

	 	Plus 0.06%
	From and including April 9, 2009 to and including April 8, 2010

	 	Plus 0.07%
	From and including April 9, 2010 to and including April 8, 2011

	 	Plus 0.08%
	From and including April 9, 2011 to and including April 8, 2012

	 	Plus 0.09%
	From and including April 9, 2012 to and including April 8, 2013

	 	Plus 0.10%
	From and including April 9, 2013 to and including April 8, 2014

	 	Plus 0.11%

          The interest rate in effect for the period from April 10, 2007 to but excluding July 9,
2007 (the “initial interest reset date”) will be three month US dollar LIBOR, as determined on
April 9, 2007, plus 0.06% (the “initial interest rate”). The second London Banking Day preceding an
interest reset date will be the “interest determination date’’ for that interest reset date. The
interest rate in effect on each day that is not an interest reset date will be the interest rate
determined as of the interest determination date pertaining to the immediately preceding interest
reset date. The interest rate in effect on any day that is an interest reset date will be the
interest rate determined as of the interest determination date pertaining to that interest reset
date, except that the interest rate in effect for the period from and including April 10, 2007, to
but excluding the next succeeding interest reset date will be the initial interest rate.

          The calculation agent will, upon the request of the holder of any Notes, provide the interest
rate then in effect. All calculations of the calculation agent, in the absence of manifest error,
shall be conclusive for all purposes and binding on the Company and holders of the Notes.

          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof which further provisions shall for all purposes have the same effect as if set forth at this
place.

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof, directly or through an Authenticating Agent, by manual signature of an
authorized signatory, this Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE

CORPORATION,

	 
	  	By:  	 	 
	 	 	Sheldon C. Petersen	 
	 	 	Governor and Chief Executive Officer	 
	 	By:  	 	 
	 	 	Steven L. Lilly 	 
	 	 	Senior Vice President,
Financial
Services & Chief Financial
Officer 
Assistant Secretary-Treasurer	 
	 

	 	 	 	 	 
	(Seal)

Attest:

 	 	 
	By:  	 	 	 
	 	 	 	 
	Trustee’s Certificate of Authentication

This is one of the Notes

of the series designated therein,

described in the within-mentioned Indenture

Dated:

By: U.S. BANK NATIONAL ASSOCIATION,

        Trustee

 	 	 
	By:  	 	 	 
	 	Authorized Officer 	 	 
	 	 	 	 

 

 

REVERSE OF NOTE

          This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued and to be issued in one or more series under an Indenture dated as of December 15,
1987, as supplemented by a First Supplemental Indenture dated as of October 1, 1990 (the Indenture
as so supplemented being herein called the “Indenture”), between the Company and U.S. Bank National
Association, as successor trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms
upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the
series designated Extendible Senior Unsecured Floating Rate Notes Initially Due 2009.

          Each Note of this series shall be dated the date of its authentication by the Trustee. Each
Note of this series shall also bear an Original Issue Date, as specified on the face hereof, and
such Original Issue Date shall remain the same for all Notes subsequently issued upon transfer,
exchange or substitution of such original Note (or such subsequently issued Notes) regardless of
their dates of authentication.

          The Notes may not be redeemed by the Company prior to maturity.

          For purposes of this Note the following terms shall have the following meanings:

          “Business Day” means any day other than a Saturday or Sunday that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law or regulation to close in
New York City which is also a London Banking Day.

          “Designated LIBOR Page” means the display on Reuters 3000 Xtra (or any successor service) on
Reuters Page LIBOR01, or any other page as may replace the page on the service, for the purpose of
displaying the London interbank rates of major banks of U.S. dollar deposits.

          “LIBOR” will be determined by the calculation agent in accordance with the following
provisions:

(a) the calculation agent will determine the offered rate for deposits in United
States dollars for the three-month period commencing on the applicable interest
reset date that appears on the Designated LIBOR Page as of 11:00 A.M., London Time,
on the applicable interest determination date. If fewer than two offered rates
appear or no rate appears, LIBOR on the interest determination date will be
determined in accordance with the provisions described in paragraph (b) set forth
below.

 

 

(b) With respect to an interest determination date on which fewer than two offered
rates appear or no rate appears on the Designated LIBOR Page as specified in (a)
above, LIBOR will be determined according to the procedures described below.

     The calculation agent will request the principal London offices of each of four
major reference banks (which may include affiliates of the underwriters) in the
London interbank market, as selected by the calculation agent, to provide the
calculation agent with its offered quotation for deposits in United States dollars
for the three-month period commencing on the first day of the relevant interest
period, to prime banks in the London interbank market at approximately 11:00 A.M.,
London time, on the interest determination date and in a principal amount that is
representative for a single transaction in United States dollars in the market at
the time.

     If at least two quotations are so provided, then LIBOR on the interest
determination date will be the arithmetic mean of the quotations.

     If fewer than two quotations are so provided, the LIBOR on the interest
determination date will be arithmetic mean of the rates quoted at approximately
11:00 A.M., London time, in the applicable principal financial center, on the
interest determination date by three major banks (which may include affiliates of
the underwriters) in the principal financial center selected by the calculation
agent for loans in United States dollars to leading European banks for the
three-month period and in a principal amount that is representative for a single
transaction in United States dollars in the market at the time.

     If the banks so selected by the calculation agent are not quoting as provided
above, LIBOR determined as of the interest determination date will be LIBOR in
effect for the Notes on that interest determination date.

          “London Banking Day” means any day on which dealings in deposits in U.S. dollars are
transacted in the London interbank market.

          The Company at its option, subject to the terms and conditions provided in the Indenture, (a)
will be discharged from any and all obligations in respect of the Notes (except for certain
obligations including obligations to register the transfer or exchange of Notes, replace stolen,
lost or mutilated Notes, maintain paying agencies and hold moneys for payment in trust) or (b) need
not comply with certain restrictive covenants of the Indenture after the Company deposits with the
Trustee (or, in certain circumstances, 91 days after the Company deposits with the Trustee),
pursuant to an escrow trust agreement, money or U.S. Government Obligations, or a combination of
money and U.S. Government Obligations, which through the payment of interest thereon and principal
thereof in accordance with their terms will provide money in an amount sufficient to pay all the
principal of, and interest on, the Notes on the dates such payments are due in the currency,
currencies or currency unit or units, in which such Notes are payable and in accordance with the
terms of the Notes.

 

 

          If an Event of Default with respect to Notes of this series shall occur and be continuing, the
principal of the Notes of this series may be declared due and payable in the manner and with the
effect provided in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Notes of each series to be affected under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of not less than a majority in principal amount of the Outstanding
Securities of all series affected thereby (acting as one class). The Indenture also contains
provisions permitting the Holders of not less than a majority in principal amount of the
Outstanding Securities of all series affected thereby (acting as one class), on behalf of the
Holders of all Notes of each such series, to waive compliance by the Company with certain
provisions of the Indenture. The Indenture also provides that, regarding the Notes of any series,
the Holders of not less than a majority in principal amount of the Outstanding Securities of such
series may waive certain past defaults and their consequences on behalf of the Holders of all Notes
of such series. Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note.

          As set forth in, and subject to, the provisions of the Indenture, no Holder of any Note of
this series will have any right to institute any proceeding with respect to the Indenture or for
any remedy thereunder, unless such Holder shall have previously given to the Trustee written notice
of a continuing Event of Default with respect to this series, the Holders of not less than 25% in
principal amount of the Outstanding Securities of this series shall have made written request, and
offered reasonable indemnity, to the Trustee to institute such proceeding as trustee, the Trustee
shall not have received from the Holders of a majority in principal amount of the Outstanding
Securities of this series a direction inconsistent with such request and the Trustee shall have
failed to institute such proceeding within 60 days; provided, however, that such limitations do not
apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal of
(and premium, if any) or interest on this Note on or after the respective due
dates expressed herein.

          No reference herein to the Indenture and no provision of this Note or the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest on this Note at the times, places and rate, and in
the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency as may be designated by the Company in the Borough
of Manhattan, The City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this
series and of the tenor and terms, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or

 

 

transferees.

          The Notes of this series are issuable only in registered form, without coupons, in minimum
denominations of $2,000 and any integral multiple of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Notes of this series are
exchangeable for a like aggregate principal amount of Notes of this series and of like tenor and
terms of a different authorized denomination, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

          The Indenture and the Notes shall be governed by, and construed in accordance with, the laws
of the State of New York.

          All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

 

ABBREVIATIONS

          The following abbreviations, when used in the inscription of the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

TEN COM  — as tenants in common

TEN ENT  — as tenants by the entireties

JT TEN — as joint tenants with right of survivorship and not as tenants in common

UNIF GIFT MIN Act — Uniform Gifts to Minors Act                     

                                                                                      (State)

          Additional abbreviations may also be used though not in the above list.

 

 

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assigns and transfer(s) unto

Please insert social security

or other identifying number

of assignee

_______________________

_______________________

      

PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

      

      

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_______________________ Attorney to transfer said Note on the books of the Company, with full power
of substitution in the premises.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(The signature to this assignment must correspond
with the name as written upon the face of the within
instrument in every particular, without alteration or
enlargement or any change whatever.)

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