one year (360 days) that are auc- tioned every two weeks.1 Fannie Mae announces the size of each weekly auction on Tuesday sometime during mid-morning Eastern time. The amount of securities offered for sale at each auction for 3-month Benchmark Bills is $4 to $8 billion, for 6-month maturities $1.5 to $4 billion and for one-year matu- rities a minimum of $1 billion. Fannie Mae issued $334 billion of Bench- mark Bills in 2000 and $237.86 billion in first six months of 2001. Exhibit 4.3 presents a Bloomberg news report from September 18, 2001 of a Fannie Mae auction announcement of 3- and 6-month Bench- mark Bills. The auction itself is conducted on Wednesdays. Fannie Mae accepts bids from a subset of eight of the dealers from its Selling Group of Discount Note Dealers.2These eight dealers (called ACCESS dealers) can submit bids on their own account or on behalf of their customers. The bids may be either competitive or non-competitive. The minimum bid size is $50,000 with additional increments of $1,000. Moreover, bidding dealers are subject to a 35% takedown rule. A takedown rule limits the amount a single buyer can bid on or hold to 35% of the total auction amount. EXHIBIT 4.2 Fannie Mae Discount Note Dealers   Banc of America Securities, LLC Banc One Capital Markets, Inc. Berean Capital, Inc. Blaylock & Partners, L.P. Credit Suisse First Boston Corp. Deutsche Bank Securities Inc. Fuji Securities Inc. Gardner Rich & Company Goldman, Sachs & Co. HSBC Securities (USA) Inc. Jackson Securities, Inc. J.P. Morgan Securities Inc. Lehman Brothers Inc. Merrill Lynch Government Securities, Inc. Morgan Stanley & Co. Inc. Myerberg & Company, L.P. Ormes Capital Markets, Inc. Pryor, McClendon, Counts & Co., Inc. Redwood Securities Group, Inc. Robert Van Securities Salomon Smith Barney Inc. Siebert, Branford, Shank & Co., LLC SBK-Brooks Investment Corp. UBS Warburg LLC Utendahl Capital Partners, L.P. Walton Johnson & Company The Williams Capital Group, L.P.     Source: Fannie Mae   1One-year Benchmark Bills mature 360 days from issuance or the first available business day if a weekend day or a holiday occurs 360 days from issuance. 2Non-ACCESS dealers may bid in auctions only on behalf of their customers.