The System consists of 12 federally chartered, member-owned Federal Home Loan Banks. Each regional Federal Home Loan Bank is an individ- ual corporate entity that does not receive any taxpayer assistance. How- ever, the FHLBank System maintains a direct line of credit with the U.S. Treasury. The Federal Housing Finance Board regulates the FHLBank Sys- tem regarding its mission as well as safety/soundness issues.

Discount Notes

The FHLBank System issued $861 billion in discount notes in 2000 and $494 billion in the first six months of 2001. Like the other discount notes discussed earlier, these securities are unsecured general obligations sold at a discount from par and mature at their face value. Minimum face values are $100,000 with additional increments of $1,000. The maturities range from overnight to 360 days. FHLBank System discount notes are gener- ally offered for sale on a continuous basis generally by one or more of the following ways: (1) auction; (2) sale to dealers as principal; and (3) allo- cation to selected dealers as agent in accordance with FHLBank System procedures for reoffering the notes to investors.

Exhibit 4.11 presents information provided by the FHLBank System and conveyed to investors on Bloomberg about their discount note pro- gram. This screen includes the maturity, rate, and target amount to be borrowed.

FEDERAL FARM CREDIT SYSTEM

The Federal Farm Credit System (FFCS) established by Congress in 1916 is the oldest GSE. Its mission is to provide a steady source of low-cost credit to the U.S. agricultural sector. The FFCS lends money to farmers through a network of borrower-owned financial institutions and related service organizations. Six Farm Credit Banks and one Agricultural Credit Bank make direct long-term real estate loans to farmers through 32 Fed- eral Land Bank Associations. The banks also provide loan funds to vari- ous credit associations, which in turn make short-, intermediate-, and long-term loans to farmers. The FFCS is regulated by the Farm Credit Administration. Unlike the agencies discussed to this point, the FFCS does not maintain a direct line of credit with the U.S. Treasury.

EXHIBIT 4.12 Bloomberg Security Description Screen of a Federal Farm Credit Discount Notes