be dis- cussed in Chapter 7. In addition, Sallie Mae has an active discount note program with $6.274 billion in discount notes outstanding as of Decem- ber 31, 2000. Finally, Sallie Mae issues short-term interest at maturity securities that are also callable. Exhibit 4.16 presents a Bloomberg DES screen for Sallie Mae interest at maturity security that was issued on August 2, 2001 that matures on July 23, 2002. The security is callable at par on October 23, 2001, approximately three months after issuance. THEGLOBALMONEYMARKETS     TENNESSEE VALLEY AUTHORITY   The Tennessee Valley Authority (TVA) is a wholly-owned corporate agency and instrumentality of the U.S. government. The TVA was estab- lished in 1933 as part of President Franklin Roosevelts New Deal Pro- gram to promote development of the Tennessee River and adjacent areas. Specifically, TVA manages the river system for flood control, nav- igation, power generation, and other purposes. TVA is the largest pro- ducer of electricity in the U.S. Like the other agencies discussed in this chapter, TVA has the authority to borrow from the U.S. Treasury. In particular, TVA may borrow from the U.S. Treasury up to $150 million for a period of one year or less. However, unlike the other agencies dis- cussed previously, TVAs borrowing authority is part of the federal gov- ernments budget. TVAs discount note program is structured similarly to those described above. There are a few differences nonetheless. First, the face value of TVAs discount notes is $100,000 and additional increments of $1,000 thereafter. Second, interest on these securities is exempt from state and local taxes except estate, inheritance, and gift taxes. Third, regula- tions stipulate that TVAs outstanding short-term debt shall not exceed $5.5 billion at any one time. CHAPTER5 CorporateObligations: Commercial Paper and Medium-Term Notes