FARMER MAC MORTGAGE SECURITIES CORPORATION as Note Purchaser NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION as Borrower FEDERAL AGRICULTURAL MORTGAGE CORPORATION as Guarantor NOTE PURCHASE AGREEMENT Dated as of May 22, 2009
EXECUTION
COPY
▇▇▇▇▇▇
MAC MORTGAGE SECURITIES CORPORATION
as
Note Purchaser
NATIONAL
RURAL UTILITIES
COOPERATIVE
FINANCE CORPORATION
as
Borrower
FEDERAL
AGRICULTURAL MORTGAGE CORPORATION
as
Guarantor
_______________________________
_______________________________
Dated
as of May 22, 2009
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TABLE
OF CONTENTS
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Page
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RECITALS
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1
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ARTICLE
I DEFINITIONS
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1
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SECTION
1.01. Definitions
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1
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SECTION
1.02. Principles of
Construction
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4
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ARTICLE
II PURCHASE OF NOTES
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4
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SECTION
2.01. Purchase of
Notes; Minimum Denominations
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4
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SECTION
2.02. Interest Rates
and Payment
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5
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SECTION
2.03. Maturity
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7
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ARTICLE
III CONDITIONS PRECEDENT
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7
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SECTION
3.01. Conditions
Precedent to the Purchase of Each Note
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7
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SECTION
3.02. Certificate of
Pledged Collateral
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8
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ARTICLE
IV REPORTING REQUIRMENTS
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8
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SECTION
4.01. Annual Reporting
Requirements
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8
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SECTION
4.02. Default
Notices
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9
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ARTICLE
V REPRESENTATIONS OF THE PARTIES
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9
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SECTION
5.01. Represenations
of ▇▇▇▇▇▇ Mac and the Purchaser
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9
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SECTION
5.02. Representations
of National Rural
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9
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ARTICLE
VI SECURITY AND COLLATERAL
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11
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SECTION
6.01. Security and
Collateral
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11
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ARTICLE
VII EVENTS OF DEFAULT
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12
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SECTION
7.01. Events of
Defaults
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12
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SECTION
7.02. Acceleration
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13
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SECTION
7.03. Remedies Not
Exclusive
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13
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ARTICLE
VIII MISCELLANEOUS
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13
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SECTION
8.01. GOVERNING
LAW
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13
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SECTION
8.02. WAIVER OF JURY
TRIAL
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13
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SECTION
8.03. Notices
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13
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SECTION
8.04. Benefit of
Agreement
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14
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SECTION
8.05. Entire
Agreement
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14
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SECTION
8.06. Amendments and
Waivers
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14
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SECTION
8.07. Counterparts
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14
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SECTION
8.08. Termination of
Agreement
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14
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SECTION
8.09. Survival
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14
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SECTION
8.10. Severability
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15
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ARTICLE
IX GUARANTEE
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15
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SECTION
9.01 Guarantee
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15
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SECTION
9.02 Control by Guarantor
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16
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Schedule
I – Addresses for Notices
Schedule
II – Form of Applicable Margin Notice
Schedule
III – Form of Pricing Agreement
Annex A-1
– Form of Fixed Rate Note
Annex A-2
– Form of Floating Rate Note
Annex B –
Opinion of Counsel to National Rural
Annex C –
Officers’ Certificate
Annex D –
Form of Securities Purchase Agreement
NOTE
PURCHASE AGREEMENT, dated as of May 22, 2009, among ▇▇▇▇▇▇ MAC MORTGAGE
SECURITIES CORPORATION (the “Purchaser”), a wholly
owned subsidiary of FEDERAL AGRICULTURAL MORTGAGE CORPORATION, a
federally-chartered instrumentality of the United States and an institution of
the Farm Credit System (“▇▇▇▇▇▇ Mac” or the
“Guarantor”);
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, a cooperative
association existing under the laws of the District of Columbia (“National Rural”); and
▇▇▇▇▇▇ Mac, as Guarantor.
RECITALS
WHEREAS
National Rural wishes from time to time to issue and sell Notes to the
Purchaser, and the Purchaser wishes from time to time to purchase such Notes
from National Rural, all on the terms and subject to the conditions herein
provided; and
WHEREAS
▇▇▇▇▇▇ Mac is an instrumentality of the United States formed to provide for
a secondary market for agricultural real estate mortgages and rural utilities
loans; National Rural is a non-profit cooperative and ▇▇▇▇▇▇ Mac, the Purchaser
and National Rural have agreed that the Notes will be secured by the pledge of
notes for borrowings from National Rural by members of National Rural, as
provided herein.
NOW,
THEREFORE, in consideration of the mutual agreements herein contained, ▇▇▇▇▇▇
Mac, the Purchaser and National Rural agree as follows:
ARTICLE
I
DEFINITIONS
SECTION
1.01. Definitions
. As
used in this Agreement, the following terms shall have the following
meanings:
“Agreement” means this
Note Purchase Agreement, as the same may be amended from time to
time.
“Applicable Margin”
means the Applicable Margin (LIBOR) or the Applicable Margin (Treasury), as the
context may require.
“Applicable Margin
(LIBOR)” means the margin to be added to the LIBOR Rate to determine the
rate of interest payable on the Floating Rate Notes from time to
time. The Applicable Margin (LIBOR) shall be communicated in writing
by ▇▇▇▇▇▇ Mac to National Rural in accordance with Section 2.02(d) hereof, in
the form of Schedule II hereof, and calculated by ▇▇▇▇▇▇ Mac as follows: (i)
▇▇▇▇▇▇ Mac’s Cost of Funds (expressed in relation to the LIBOR Rate), plus
0.75%, minus (ii) the LIBOR Rate. The Applicable Margin (LIBOR) for
any Floating Rate Note shall be set forth in the applicable Pricing
Agreement.
“Applicable Margin
(Treasury)” means the margin to be added to the Treasury Rate to
determine the rate of interest payable on the Fixed Rate Notes. The
Applicable Margin (Treasury) shall be communicated in writing by ▇▇▇▇▇▇ Mac to
National Rural in accordance with Section 2.02(d) hereof, in the form of
Schedule II hereof, and calculated by ▇▇▇▇▇▇ Mac as follows: (i) ▇▇▇▇▇▇ Mac’s
Cost of Funds (expressed in relation to the Treasury Rate), plus 0.75%, minus
(ii) the Treasury Rate. The Applicable Margin (Treasury) for any
Fixed Rate Note shall be set forth in the applicable Pricing
Agreement.
“Business Day” means
any day other than a Saturday, a Sunday, or a day on which any of the Federal
Reserve Bank of New York, ▇▇▇▇▇▇ Mac’s office in Washington, DC or National
Rural’s office in Virginia is not open for business.
“Certificate of Pledged
Collateral” has the meaning given to that term in the Pledge
Agreement.
“Closing Date” means
the date of the funding of each issuance of Notes hereunder, which date shall be
set forth in the applicable Pricing Agreement.
“Collateral Agent”
means U.S. Bank National Association, or its successor, as collateral agent
under the Pledge Agreement.
“Control Party” means
(i) the Guarantor, so long as no Guarantor Default has occurred and is
continuing, or (ii) the holders of the Notes for so long as a Guarantor Default
has occurred and is continuing.
“Dollar” or “$” means the lawful
money of the United States of America.
“Eligible Member” has
the meaning given to that term in the Pledge Agreement.
“Event of Default” has
the meaning given to that term in Section 7.01.
“▇▇▇▇▇▇ Mac’s Cost of
Funds” means the cost of funds quoted by ▇▇▇▇▇▇ Mac to National Rural
based on ▇▇▇▇▇▇ Mac’s estimate of the economic cost to obtain cash funds from
the wholesale funding market by issuing unsecured medium-term notes to fully
fund to maturity the Note or Notes purchased by Purchaser from National
Rural.
“▇▇▇▇▇▇ Mac Series C
Preferred Stock” means shares of Non-Voting Cumulative Preferred Stock,
Series C issued by ▇▇▇▇▇▇ Mac.
“Final Maturity Date”
means December 31, 2016, or such other date as agreed to by the
parties.
“Financial
Statements”, in respect of a Fiscal Year, means the consolidated
financial statements (including footnotes) of National Rural for that Fiscal
Year as audited by independent certified public accountants selected by National
Rural.
“Fiscal Year” means
the fiscal year of National Rural, as such may be changed from time to time,
which at the date hereof commences on June 1 of each calendar year and ends on
May 31 of the following calendar year.
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“Fixed Rate Notes”
means one or more fixed rate notes of National Rural payable to the Purchaser,
having the terms provided for in Article II of this Agreement and otherwise in
the form of Annex A-1 attached hereto, except to the extent the parties may have
approved changes therein in the applicable Pricing Agreement.
“Floating Rate Notes”
means one or more floating rate notes of National Rural payable to the
Purchaser, having the terms provided for in Article II of this Agreement and
otherwise in the form of Annex A-2 attached hereto, except to the extent the
parties may have approved changes therein in the applicable Pricing
Agreement.
“Guarantor Default”
means a default by the Guarantor under its obligations pursuant to Article IX
which is existing and continuing.
“Interest Payment
Date” means the dates set forth in the Pricing Agreement for notes as the
interest payment dates therefor; provided, however, that if any such date is not
a Business Day, such Interest Payment Date that would otherwise be such date
will be the next Business Day following such date.
“Interest Period” means, with respect to
Floating Rate Notes, until all outstanding principal amount of the Floating Rate
Notes and interest accrued thereon have been paid in full, each 3-month period
determined as set forth in the applicable Pricing Agreement unless a different
period is agreed by the parties hereto and set forth in such Pricing
Agreement;
provided, that the initial Interest Period means the period from and
including the date of issuance to and excluding the first Interest Payment Date
following the date of issuance; provided, further,
that if any Interest Period would end on a day other than a Business Day, then
such Interest Period shall be extended to and include the next succeeding
Business Day and the next Interest Period shall commence on the next succeeding
day.
“LIBOR Rate” shall
mean, for any Interest Period, the rate appearing on Reuters Page LIBOR01 (or on
any successor or substitute page of such service, or if the Reuters service
ceases to be available, any successor to or substitute for such service
providing rate quotations comparable to those currently provided on such page of
such service, as mutually agreed by National Rural and ▇▇▇▇▇▇ Mac from time to
time for purposes of providing quotations of interest rates applicable to Dollar
deposits in the London interbank market) as of 11:00 a.m., London time, on the
day that is two London Banking Days prior to the commencement of such Interest
Period, as the rate for the offering of Dollar deposits with a maturity of three
months (unless another maturity is agreed by the parties hereto and set forth in
the applicable Pricing Agreement). Unless otherwise agreed by the
parties hereto and set forth in the applicable Pricing Agreement, such rate
shall apply for the initial Interest Period for any advance notwithstanding that
such initial Interest Period for an advance may be shorter than three
months.
“London Banking Day”
shall mean any day on which commercial banks and foreign exchange markets settle
payments and are open for general business (including dealings in foreign
exchange and foreign currency deposits) in the Dollar, in London,
England.
“Member” shall mean
any Person who is member of National Rural.
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“National Rural
Notice” has the meaning given to that term in the Pledge
Agreement.
“Notes” means the
Fixed Rate Notes and the Floating Rate Notes, or any one or more of them as the
context may require.
“Note Documents” means
the Notes, this Agreement, and the Pledge Agreement.
“Notice of Borrowing”
has the meaning set forth in Section 2.01 hereof.
“Person” means an
individual, a corporation, a partnership, an association, a trust or any other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.
“Pledge Agreement”
means the Pledge Agreement dated as of the date hereof, among National Rural,
the Purchaser, ▇▇▇▇▇▇ Mac and the Collateral Agent.
“Pledged Collateral”
has the meaning given to that term in the Pledge Agreement.
“Pledged Securities”
has the meaning given to that term in the Pledge Agreement.
“Pricing Agreement”
means the Pricing Agreement for each issuance of Notes among ▇▇▇▇▇▇ Mac, the
Purchaser and National Rural in the form of Schedule III attached
hereto.
“Securities Purchase
Agreement” means the Series C Preferred Stock Purchase Agreement, a form
of which is attached hereto as Annex D.
“Treasury Rate” means
the applicable benchmark United States Treasury rate agreed at the time of
pricing a Note and set forth in the applicable Pricing Agreement.
SECTION
1.02. Principles of
Construction. Unless
the context shall otherwise indicate, the terms defined in Section 1.01
hereof include the plural as well as the singular and the singular as well as
the plural. The words “hereafter”, “herein”, “hereof”, “hereto” and
“hereunder”, and words of similar import, refer to this Agreement as a
whole. The descriptive headings of the various articles and sections
of this Agreement were formulated and inserted for convenience only and shall
not be deemed to affect the meaning or construction of the provisions
hereof.
ARTICLE
II
PURCHASE
OF NOTES
SECTION
2.01. Purchase of Notes; Minimum
Denominations. The
Purchaser agrees to purchase Notes, at 100% of their principal amount, from time
to time before the Final Maturity Date, as requested by National Rural by
written notice (each, a “Notice of Borrowing”)
to ▇▇▇▇▇▇ Mac in an aggregate principal amount, for all Notes outstanding
hereunder at any one time, not in excess of $1 billion, subject to satisfaction
of the conditions set
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forth
herein. National Rural may borrow, repay (subject to the terms of the
applicable Notes being repaid) and reborrow funds at any time or from time to
time up to, but not including, the Final Maturity Date. Each advance
under this Agreement shall be disbursed in a minimum amount of $50 million and
additional increments of $5 million in excess thereof or such other amounts
as agreed to in the applicable Pricing Agreement. Each advance shall
price within 3 Business Days of National Rural providing a Notice of Borrowing
to ▇▇▇▇▇▇ Mac and shall close and fund within 3 Business Days of pricing,
subject to satisfaction of the conditions set forth herein and in accordance
with the procedures set forth in Section 2.02(d) hereof, unless otherwise agreed
by the parties hereto and set forth in the applicable Pricing
Agreement.
SECTION
2.02. Interest Rates and
Payment.
(a) Floating Rate
Notes. Each Floating Rate Note shall bear interest, payable
quarterly in arrears unless otherwise agreed by the parties hereto and set forth
in the applicable Pricing Agreement, on the outstanding principal amount thereof
(computed on the basis of a 360-day year and the actual number of days elapsed)
from its date of issuance until final payment on the maturity date thereof or
otherwise at a variable rate per annum equal to the LIBOR Rate for each Interest
Period plus the Applicable Margin (LIBOR). The LIBOR Rate shall reset
as of the first day of each Interest Period. The (i) initial LIBOR
Rate and (ii) Applicable Margin (LIBOR) for the term of each Floating Rate Note
shall be specified in the applicable Pricing Agreement. Interest only
shall be payable on each Interest Payment Date. The Interest Payment
Dates shall be determined at the time of an advance and set forth in the
applicable Pricing Agreement. The principal amount of each Floating
Rate Note, together with any accrued but unpaid interest, shall be due and
payable on the maturity date for such Note.
(b) Fixed Rate
Notes. Each Fixed Rate Note shall bear interest, payable
semi-annually in arrears unless otherwise agreed by the parties hereto and set
forth in the applicable Pricing Agreement on the outstanding principal amount
thereof (computed on the basis of a 30-day month and a 360-day year) from its
date of issuance until final payment on the maturity date thereof or otherwise
at a fixed rate per annum equal to the Treasury Rate plus the Applicable Margin
(Treasury), in each case as specified for the term of each Fixed Rate Note in
the applicable Pricing Agreement. Interest only shall be payable on
each Interest Payment Date. The Interest Payment Dates shall be
determined at the time of an advance and set forth in the applicable Pricing
Agreement. The principal amount of each Fixed Rate Note, together
with any accrued but unpaid interest, shall be due and payable on the applicable
maturity date for such Note.
(c) Default
Interest. To the extent any payment of interest or principal
is not paid when due, interest shall continue to accrue thereon at the
applicable rate per annum determined as provided above plus one
percent.
(d) Notice of Borrowing;
Determination of Applicable Margin; Procedure
for Pricing. (i) Each
Notice of Borrowing shall indicate the amount of the Note and the desired
maturity date of such Note that National Rural requests to be
5
advanced. A
Notice of Borrowing may request preliminary pricing indications for more than
one type of Note, with the understanding that only one type of Note will be
issued on any particular Closing Date, unless otherwise agreed by the parties
hereto in a Pricing Agreement. Each Notice of Borrowing shall also
provide name, telephone and email contact information of an authorized
representative of National Rural.
(ii) Upon
receipt of a Notice of Borrowing from National Rural, ▇▇▇▇▇▇ Mac shall, within 2
Business Days, provide to National Rural a preliminary indication of the
Applicable Margin (LIBOR) or Applicable Margin (Treasury), or both, as
applicable to any Notice of Borrowing; provided that ▇▇▇▇▇▇
Mac shall not be obligated to provide an indication of pricing if ▇▇▇▇▇▇ Mac
uses its best efforts to obtain and provide such preliminary indication, but
determines in its sole discretion reasonably exercised after consultation with
National Rural that market conditions are unfavorable for the issuance of debt
to fund Notes with the terms set forth in the Notice of
Borrowing. Upon an acceptance of such preliminary indication of
pricing by National Rural, the applicable Note will price within one Business
Day (and may price on the day of the preliminary pricing if the parties so
agree) thereafter, unless the parties otherwise agree to a longer period of time
as set forth in the applicable Pricing Agreement. ▇▇▇▇▇▇ Mac shall
provide National Rural with written notice of the final Applicable Margin
(LIBOR) or Applicable Margin (Treasury) no later than the time of pricing of
each advance. National Rural shall be deemed to approve of such
pricing so long as the Applicable Margin (LIBOR) or Applicable Margin (Treasury)
shall not exceed the preliminary indication by more than 5 basis points
(0.05%). If the final pricing does exceed the preliminary indication
by more than 5 basis points (0.05%), an authorized representative of National
Rural must agree via email confirmation prior to or simultaneously with the
pricing to accept such margin.
(e) Payments and
Prepayments.
(i) Each
Floating Rate Note shall not be prepayable during the term of such
Note.
(ii) Each
Fixed Rate Note shall not be prepayable during the term of such Note unless
otherwise agreed by ▇▇▇▇▇▇ Mac and National Rural and set forth in the
applicable Pricing Agreement. If the parties agree that an issuance
of Fixed Rate Notes may be prepayable prior to the maturity date of such Notes,
then (A) the applicable Pricing Agreement shall set forth the scheduled call
dates, and (B) unless otherwise agreed by the parties and set forth in the
applicable Pricing Agreement, National Rural may prepay such Note upon at least
nine (9) Business Days prior written notice to ▇▇▇▇▇▇ Mac, which notice shall be
received by ▇▇▇▇▇▇ Mac on a day that is on or before the ninth Business Day
prior to the related call date, but in any event, no later than noon eastern
time on the ninth Business Day prior to the related call date. In the
event that any such repayment or prepayment of the principal amount of any Note
is made on a day other than an Interest Payment Date, accrued interest on the
principal amount thereof shall be
6
payable
through and excluding the call date on which such repayment or prepayment is
made.
(iii) The
prepayment terms of any other type of Fixed Rate Note or Floating Rate Note
shall be set forth in the applicable Pricing Agreement.
(f) Payment
Notice. ▇▇▇▇▇▇ Mac shall send to National Rural, not later
than the fifth Business Day prior to an Interest Payment Date for any Note, a
notice setting forth the amount of principal and interest, as applicable, due
and owing on the next Interest Payment Date for such Note.
SECTION
2.03. Maturity. Each Note shall mature on the maturity date set forth in the
applicable Pricing Agreement and in any event no later than the Final Maturity
Date.
ARTICLE
III
CONDITIONS
PRECEDENT
SECTION
3.01. Conditions Precedent to the
Purchase of Each Note. On
each Closing Date, the Purchaser shall be under no obligation to purchase any
Note unless and until the following conditions have been satisfied:
(a) The
Notes. ▇▇▇▇▇▇ Mac shall have received the original of such
Notes, duly executed on behalf of National Rural, in the applicable form
attached as Annex A-1 or A-2 hereto, or otherwise in a form agreed by the
parties.
(b) The Pledge
Agreement. ▇▇▇▇▇▇ Mac shall have received an original of the
Pledge Agreement duly executed on behalf of National Rural and the Collateral
Agent.
(c) Opinion of
Counsel. ▇▇▇▇▇▇ Mac shall have received an opinion of counsel
to National Rural substantially in the form of Annex B, attached
hereto.
(d) Financial and Other
Information. National Rural shall have provided ▇▇▇▇▇▇ Mac
with its most recent Financial Statements and such other information concerning
National Rural as ▇▇▇▇▇▇ Mac shall have reasonably requested.
(e) No Material Adverse
Change. National Rural shall have certified to ▇▇▇▇▇▇ Mac (in
the manner specified in paragraph (i) of this Section 3.01), and ▇▇▇▇▇▇ Mac
shall be satisfied, that no material adverse change shall have occurred in the
financial condition or business of National Rural between the end of National
Rural’s most recently completed Fiscal Year for which Financial Statements have
been made publicly available and the date of the purchase of such Note, which
has not been set forth in documents, certificates or financial information
furnished to ▇▇▇▇▇▇ Mac or publicly filed.
7
(f) UCC
Filing. National Rural shall have provided ▇▇▇▇▇▇ Mac with
evidence that National Rural has filed the financing statement required pursuant
to Section 2.02(i) of the Pledge Agreement.
(g) No Event of
Default. National Rural shall have certified to ▇▇▇▇▇▇ Mac and
▇▇▇▇▇▇ Mac shall be satisfied that no Event of Default shall have occurred and
be continuing.
(h) Invest to
Participate. National Rural shall have entered into a
Securities Purchase Agreement to purchase ▇▇▇▇▇▇ Mac Series C Preferred Stock
such that National Rural shall own or have agreed to purchase at least 4% of the
sum of (1) the aggregate principal amount of the Notes outstanding hereunder and
(2) the aggregate principal amount of the notes outstanding under both of the
Note Purchase Agreement among the parties dated as of December 15, 2008 and the
Note Purchase Agreement among the parties dated as of February 5, 2009, taking
into account the advance made hereunder on the Closing Date.
(i) Certification of Senior
Management. National Rural shall have provided ▇▇▇▇▇▇ Mac a
certification by any vice president of National Rural, substantially in the form
of Annex C attached hereto, as to the following: (i) that National Rural is
a lending institution organized as a private, not-for-profit, cooperative
association with the appropriate expertise, experience and qualifications to
make loans to its Members for rural electrification and related purposes; (ii)
the matters to be certified under paragraphs (e) and (g) of this
Section 3.01; and (iii) the representations and warranties of National
Rural.
SECTION
3.02. Certificate of Pledged
Collateral. No
later than three Business Days after each advance hereunder, National Rural
shall provide ▇▇▇▇▇▇ Mac and the Collateral Agent a copy of a Certificate of
Pledged Collateral, dated as of the last day of the calendar month most recently
ended at least 10 Business Days prior to such authentication and delivery, or a
more recent date, at National Rural’s option, in accordance with the terms of
the Pledge Agreement.
ARTICLE
IV
REPORTING
REQUIREMENTS
SECTION
4.01. Annual Reporting
Requirements. So
long as any Notes remain outstanding, National Rural shall provide ▇▇▇▇▇▇ Mac
with the following items within 90 days of the end of each Fiscal Year, in each
case, in form and substance satisfactory to ▇▇▇▇▇▇ Mac:
(a) the
Financial Statements for such Fiscal Year;
(b) a
Certificate of Pledged Collateral;
8
(c) a receipt
from the Collateral Agent, or such other evidence as is satisfactory to ▇▇▇▇▇▇
Mac, as to the Pledged Collateral held by the Collateral Agent at the end of
such Fiscal Year; and
(d) such
other information concerning National Rural or the Pledged Collateral as is
reasonably requested by ▇▇▇▇▇▇ Mac.
SECTION
4.02. Default
Notices. If
an action, occurrence or event shall happen that is, or with notice and the
passage of time would become, an Event of Default, National Rural shall deliver
a National Rural Notice of such action, occurrence or event to ▇▇▇▇▇▇ Mac before
4:00 p.m. (District of Columbia time) on the Business Day following the
date National Rural becomes aware of such action, occurrence or event, and, if
such Event of Default should occur, shall submit to ▇▇▇▇▇▇ Mac, within five days
thereafter, a report setting forth its views as to the reasons for the Event of
Default, the anticipated duration of the Event of Default and what corrective
actions National Rural is taking to cure such Event of Default.
ARTICLE
V
REPRESENTATIONS
OF THE PARTIES
SECTION
5.01. Representations of ▇▇▇▇▇▇
Mac and the Purchaser. Each
of ▇▇▇▇▇▇ Mac and the Purchaser jointly and severally represent to National
Rural that on the date hereof and on each date on which the Purchaser purchases
a Note from National Rural:
(a) it has
all necessary authority and has taken all necessary corporate action, and
obtained all necessary approvals, in order for it to execute and deliver all
Note Documents to which it is a party and for its obligations and agreements
under the Note Documents to constitute valid and binding obligations of ▇▇▇▇▇▇
Mac and the Purchaser; and in particular the terms of the transaction, and the
actions taken by ▇▇▇▇▇▇ Mac and the Purchaser, are in compliance with and in
satisfaction of the requirements of the Farm Credit Administration, as amended
or waived by the Farm Credit Administration; and
(b) The
Purchaser is purchasing the Notes for its own account and not with a view to the
distribution thereof, provided that the disposition by ▇▇▇▇▇▇ Mac or the
Purchaser of their property shall at all times be within their
control. ▇▇▇▇▇▇ Mac and the Purchaser each understands that the Notes
have not been registered under the Securities Act of 1933, as amended, and may
be resold only if an exemption from registration is available.
SECTION
5.02. Representations of National
Rural.
National
Rural hereby represents to ▇▇▇▇▇▇ Mac and the Purchaser that on the date hereof
and on each date on which the Purchaser purchases a Note from National
Rural:
9
(a) National
Rural has been duly organized and is validly existing and in good standing as a
cooperative association under the laws of the District of Columbia;
(b) National
Rural has the corporate power and authority to execute and deliver this
Agreement, each of the other Note Documents and the applicable Pricing Agreement
and Securities Purchase Agreement, if any, to consummate the transactions
contemplated hereby and thereby and to perform its obligations hereunder and
thereunder;
(c) National
Rural has taken all necessary corporate and other action to authorize the
execution and delivery of this Agreement, each of the other Note Documents and
the applicable Pricing Agreement and Securities Purchase Agreement, if any, the
consummation by National Rural of the transactions contemplated hereby and
thereby and the performance by National Rural of its obligations hereunder and
thereunder;
(d) this
Agreement, each of the other Note Documents and the applicable Pricing Agreement
and Securities Purchase Agreement, if any, have been duly authorized, executed
and delivered by National Rural and constitute the legal, valid and binding
obligations of National Rural, enforceable against National Rural in accordance
with their respective terms, subject to: (i) applicable bankruptcy,
reorganization, insolvency, moratorium and other laws of general applicability
relating to or affecting creditors’ rights generally; and (ii) the
application of general principles of equity regardless of whether such
enforceability is considered in a proceeding in equity or at law;
(e) no
approval, consent, authorization, order, waiver, exemption, variance,
registration, filing, notification, qualification, license, permit or other
action is now, or under existing law in the future will be, required to be
obtained, given, made or taken, as the case may be, with, from or by any
regulatory body, administrative agency or governmental authority having
jurisdiction over National Rural or any third party under any agreement to which
National Rural is a party to authorize the execution and delivery by National
Rural of this Agreement, any of the other Note Documents or the applicable
Pricing Agreement and Securities Purchase Agreement, if any, or the consummation
by National Rural of the transactions contemplated hereby or thereby or the
performance by National Rural of its obligations hereunder or
thereunder;
(f) neither
the execution or delivery by National Rural of this Agreement, any of the other
Note Documents or the applicable Pricing Agreement and Securities Purchase
Agreement, if any, nor the consummation by National Rural of any of the
transactions contemplated hereby or thereby nor the performance by National
Rural of its obligations hereunder or thereunder, including, without limitation,
the pledge of the Pledged Securities (as such term is defined in the Pledge
Agreement) to ▇▇▇▇▇▇ Mac, conflicts with or will conflict with, violates or will
violate, results in or will result in a breach of, constitutes or will
constitute a
10
default
under, or results in or will result in the imposition of any lien or encumbrance
pursuant to any term or provision of the articles of incorporation or the bylaws
of National Rural or any provision of any existing law or any rule or regulation
currently applicable to National Rural or any judgment, order or decree of any
court or any regulatory body, administrative agency or governmental authority
having jurisdiction over National Rural or the terms of any mortgage, indenture,
contract or other agreement to which National Rural is a party or by which
National Rural or any of its properties is bound;
(g) there is
no action, suit, proceeding or investigation before or by any court or any
regulatory body, administrative agency or governmental authority presently
pending or, to the knowledge of National Rural, threatened with respect to
National Rural, this Agreement, any of the other Note Documents or the
applicable Pricing Agreement and Securities Purchase Agreement, if any,
challenging the validity or enforceability of this Agreement, any of the other
Note Documents or the applicable Pricing Agreement and Securities Purchase
Agreement, if any, or seeking to restrain, enjoin or otherwise prevent National
Rural from engaging in its business as currently conducted or the consummation
by National Rural of the transactions contemplated by this Agreement, any of the
other Note Documents or the applicable Pricing Agreement and Securities Purchase
Agreement, if any, or which, if adversely determined, would have a material
adverse effect on National Rural’s financial condition or its ability to perform
its obligations under this Agreement, any of the other Note Documents or the
applicable Pricing Agreement and Securities Purchase Agreement, if
any;
(h) National
Rural is a lending institution organized as a private, not-for-profit,
cooperative association with the appropriate expertise, experience and
qualifications to make loans to its Members for rural electrification purposes;
and
(i) no
material adverse change has occurred in the financial condition or business of
National Rural between the end of National Rural’s most recently completed
Fiscal Year for which Financial Statements have been made publicly available and
the date this representation is given which has not been set forth in documents,
certificates or financial information furnished to ▇▇▇▇▇▇ Mac or publicly
filed.
ARTICLE
VI
SECURITY
AND COLLATERAL
SECTION
6.01. Security and
Collateral.
(a) National
Rural shall cause the Allowable Amount of the Pledged Collateral (as such terms
are defined in the Pledge Agreement) to be at all times not less than 100% of
the aggregate outstanding principal amount of the Notes.
11
(b) National
Rural shall not create, or permit to exist, any pledge, lien, charge, mortgage,
encumbrance, debenture, hypothecation or other similar security instrument that
secures, or in any way attaches to, such Pledged Collateral, other than the lien
of the Pledge Agreement, without the prior written consent of ▇▇▇▇▇▇
Mac.
(c) The
Pledged Securities will at all times be notes issued to National Rural by
Eligible Members (as defined in the Pledge Agreement).
ARTICLE
VII
EVENTS OF
DEFAULT
SECTION
7.01. Events of
Default. Each
of the following actions, occurrences or events shall, but only (except in the
case of subsections (a), (d) and (e) below) if National Rural does not cure such
action, occurrence or event within 30 days of notice from ▇▇▇▇▇▇ Mac
requesting that it be cured, constitute an “Event of Default”
under the terms of this Agreement:
(a) a failure
by National Rural to make a payment of principal or interest on any Note for
more than ten days after the same becomes due and payable;
(b) a
material representation by National Rural to ▇▇▇▇▇▇ Mac in connection with this
Agreement, any Note or the Pledge Agreement, or any material information
reported pursuant to Article V, shall prove to be incorrect or untrue in any
material respect when made or deemed made;
(c) a failure
by National Rural to comply with any other material covenant or provision
contained in this Agreement or any of the other Note Documents;
(d) the entry
of a decree or order by a court having jurisdiction in the premises adjudging
National Rural a bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or in
respect of National Rural under the Federal Bankruptcy Act or any other
applicable Federal or State law or law of the District of Columbia, or
appointing a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of National Rural or of any substantial part of its property,
or ordering the winding up or liquidation of its affairs, and the continuance of
any such decree or order unstayed and in effect for a period of 60 consecutive
days; or
(e) the
commencement by National Rural of proceedings to be adjudicated a bankrupt or
insolvent, or the consent by it to the institution of bankruptcy or insolvency
proceedings against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under the Federal Bankruptcy Act or any other
applicable Federal or State law or law of the District of
12
Columbia,
or the consent by it to the filing of any such petition or to the appointment of
receiver, liquidator, assignee, trustee, sequestrator (or similar official) of
National Rural or of any substantial part of its property, or the making by it
of an assignment for the benefit of creditors, or the admission by it in writing
of its inability to pay its debts generally as they become due, or the taking of
corporate action by National Rural in furtherance of any such
action.
SECTION
7.02. Acceleration. Upon
the occurrence, and during the continuance, of an Event of Default, ▇▇▇▇▇▇ Mac
may, upon notice to that effect to National Rural, declare the entire principal
amount of, and accrued interest on, the Notes at the time outstanding to be
immediately due and payable.
SECTION
7.03. Remedies Not
Exclusive. Upon
the occurrence, and during the continuance, of an Event of Default, ▇▇▇▇▇▇ Mac
shall be entitled to take such other action as is provided for by law, in this
Agreement, or in any of the other Note Documents, including injunctive or other
equitable relief.
ARTICLE
VIII
MISCELLANEOUS
SECTION
8.01. GOVERNING
LAW. EXCEPT
AS SET FORTH IN SECTION 9.01 HEREOF, THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, FEDERAL LAW. TO THE EXTENT FEDERAL LAW
INCORPORATES STATE LAW, THAT STATE LAW SHALL BE THE LAWS OF THE DISTRICT OF
COLUMBIA APPLICABLE TO CONTRACTS MADE AND PERFORMED THEREIN.
SECTION
8.02. WAIVER OF JURY
TRIAL. EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.02.
SECTION
8.03. Notices. All
notices and other communications hereunder to be made to any party shall be in
writing and shall be addressed as specified in Schedule I attached hereto
as appropriate except as otherwise provided herein. The address,
telephone number, or facsimile number for any party may be changed at any time
and from time to time upon written notice given by such changing party to the
other parties hereto. A properly
13
addressed
notice or other communication shall be deemed to have been delivered at the time
it is sent by facsimile (fax) transmission to the party or parties to which it
is given.
SECTION
8.04. Benefit of
Agreement. This
Agreement shall become effective when it shall have been executed by ▇▇▇▇▇▇ Mac,
the Purchaser and National Rural, and thereafter shall be binding upon and inure
to the respective benefit of the parties and their permitted successors and
assigns.
SECTION
8.05. Entire
Agreement. This
Agreement, including the Schedules and Annexes hereto, and the other Note
Documents, constitute the entire agreement between the parties hereto concerning
the matters contained herein and supersede all prior oral and written agreements
and understandings between the parties.
SECTION
8.06. Amendments and
Waivers.
(a) No
provision of this Agreement may be amended or modified except pursuant to an
agreement in writing entered into by ▇▇▇▇▇▇ Mac, the Purchaser and National
Rural. No provision of this Agreement may be waived except in writing
by the party or parties receiving the benefit of and under such
provision.
(b) No
failure or delay of ▇▇▇▇▇▇ Mac, the Purchaser or National Rural in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or
power. No waiver of any provision of this Agreement or consent to any
departure by National Rural therefrom shall in any event be effective unless the
same shall be authorized as provided in paragraph (a) of this
Section 8.06, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No notice
or demand on National Rural in any case shall entitle National Rural to any
other or further notice or demand in similar or other
circumstances.
SECTION
8.07. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.
SECTION
8.08. Termination of
Agreement. This
Agreement shall terminate upon the indefeasible payment in full of all amounts
payable hereunder and under the Notes.
SECTION
8.09. Survival. The
representations and warranties of each of the parties hereto contained in this
Agreement and contained in each of the other Note Documents, and the parties’
obligations under any and all thereof, shall survive and shall continue in
effect following the execution and delivery of this Agreement, any disposition
of the Notes and the expiration or other termination of any of the other Note
Documents, but, in the case of each Note Document, shall not survive the
expiration or the earlier termination of such Note Document, except to the
extent expressly set forth in such Note Document.
14
SECTION
8.10. Severability. If
any term or provision of this Agreement or any Note Document or the application
thereof to any circumstance shall, in any jurisdiction and to any extent, be
invalid or unenforceable, such term or such provision shall be ineffective as to
such jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable any remaining terms or provisions of
such Note Document or the application of such term or provision to circumstances
other than those as to which it is held invalid or unenforceable.
ARTICLE
IX
GUARANTEE
SECTION
9.01. Guarantee.
(a) The
Guarantor agrees to pay in full to the holder of each Note, the principal of,
and interest on, the Notes when due, whether at maturity, upon redemption or
otherwise (the “Guaranteed
Obligations”), on the applicable due date for such payment.
(b) The
Guarantor’s obligations hereunder shall inure to the benefit of and shall be
enforceable by any holder of a Note if, for reason beyond the control of such
holder, such holder shall have failed to receive the interest or principal, as
applicable, payable to such holder any payment date, redemption date or stated
maturity date. The Guarantor hereby irrevocably agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
legality or enforceability of, or any change in or amendment to, this Agreement,
the Pledge Agreement or any Note, the absence of any action to enforce the same,
the waiver or consent by the holder of any Note or by the Collateral Agent with
respect to any provisions of this Agreement or the Pledge Agreement, or any
action to enforce the same or any other circumstance that might otherwise
constitute a legal or equitable discharge or defense of a
guarantor. The Guarantor hereby waives diligence, presentment, demand
of payment, protest or notice with respect to each Note or the interest
represented thereby, and all demands whatsoever, and covenants that the
guarantee will not be discharged except upon complete irrevocable payment of the
principal and interest obligations represented by the Notes.
(c) The
Guarantor shall be subrogated to and is hereby assigned all rights of the holder
of the Notes against National Rural and the proceeds of the Pledged Collateral,
all in respect of any amounts paid by the Guarantor pursuant to the provisions
of the guarantee contained in this Article IX. Each holder shall
execute and deliver to the Guarantor in each holder’s name such instruments and
documents as the Guarantor may reasonably request in writing confirming or
evidencing such subrogation and assignment.
15
(d) No
reference herein shall alter or impair the guarantee, which is absolute and
unconditional, of the due and punctual payment of principal of, and interest on,
the Notes, on the dates such payments are due.
(e) The
guarantee is not an obligation of, and is not a guarantee as to principal or
interest by the Farm Credit Administration, the United States or any other
agency or instrumentality of the United States (other than the
Guarantor).
(f) The
guarantee shall be governed by, and construed in accordance with, Federal
law. To the extent Federal law incorporates state law, that state law
shall be the laws of the District of Columbia applicable to contracts made and
performed therein.
SECTION
9.02. Control by the
Guarantor. If the
Guarantor is the Control Party, the Guarantor shall be considered the holder of
all Notes outstanding for all purposes under the Pledge Agreement and shall be
permitted to take any and all actions permitted to be taken by the holder
thereunder. The Control Party will have the sole right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Collateral Agent or any holder with respect to the Notes or exercising any
power conferred on the Collateral Agent with respect to the Notes provided
that:
(i) such
direction shall not be in conflict with any rule of law or with the Pledge
Agreement;
(ii) the
Collateral Agent shall have been provided with indemnity from the Control Party
reasonably satisfactory to it; and
(iii) the
Collateral Agent may take any other action deemed proper by such Collateral
Agent that is not inconsistent with such direction, provided, however, that the
Collateral Agent need not take any action which it determines might expose it to
liability.
[SIGNATURE
PAGE FOLLOWS]
16
IN
WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by
an authorized officer as of the day and year first above written.
|
▇▇▇▇▇▇
MAC MORTGAGE SECURITIES CORPORATION
|
|
|
By:
|
|
|
Name:
Title:
|
|
|
FEDERAL
AGRICULTURAL
MORTGAGE
CORPORATION
|
|
|
By:
|
|
|
Name:
Title:
|
|
|
NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
|
|
|
By:
|
/s/ ▇▇▇▇ ▇. LIST |
|
Name:
Title:
|
▇▇▇▇
▇. List
Senior
Vice President
|
SCHEDULE
I
TO
Addresses
for Notices
|
1.
|
The
addresses referred to in Section 8.03 hereof, for purposes of
delivering communications and notices, are as
follows:
|
If to the
Purchaser or ▇▇▇▇▇▇ Mac:
Federal
Agricultural Mortgage Corporation
▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Vice President – Chief Financial Officer
With a
copy to:
Federal
Agricultural Mortgage Corporation
▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇▇▇ ▇▇▇▇▇/▇▇▇▇▇ ▇▇▇▇▇▇▇, Capital Markets Group
With a
copy also to:
Federal
Agricultural Mortgage Corporation
▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Assistant General Counsel
If to
National Rural:
National
Rural Utilities Cooperative Finance Corporation
▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Senior Vice President &
Chief Financial
Officer
With a
copy to:
National
Rural Utilities Cooperative Finance Corporation
▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇ ▇▇▇▇▇, Vice President, Capital Market Funding
With a
copy also to:
National
Rural Utilities Cooperative Finance Corporation
▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attention
of: ▇▇▇▇ ▇. List, Esq., Senior Vice President &
General
Counsel
2
SCHEDULE
II
TO
FORM
OF
APPLICABLE
MARGIN NOTICE
Issuer Name: National Rural Utilities
Cooperative Finance Corporation
Date
of Note(s): __________________________
Type
of Note: ____________________________
Applicable
Margin: ________________________
Effective
Date of Applicable Margin: _________________________
This
Applicable Margin Notice is delivered pursuant to the Note Purchase Agreement,
dated as of May 22, 2009 among Federal Agricultural Mortgage Corporation, ▇▇▇▇▇▇
Mac Mortgage Securities Corporation and National Rural Utilities Cooperative
Finance Corporation (the “Note Purchase Agreement”). Capitalized
terms used but not defined herein shall have the meanings given to them in the
Note Purchase Agreement.
FEDERAL
AGRICULTURAL MORTGAGE CORPORATION
By:
_______________________________ __________________________________
Signature Date Title
of Authorized Officer
Name: _____________________
PLEASE
FAX
TO: ______________________ ATTN: ________________________
ACCEPTED
BY:
NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
By:
_______________________________ __________________________________
Signature Date Title
of Authorized Officer
Name: _____________________
3
SCHEDULE
III
TO
NOTE
PURCHASE AGREEMENT
FORM OF
PRICING AGREEMENT
The
Federal Agricultural Mortgage Corporation, a federally chartered instrumentality
of the United States and an institution of the Farm Credit System (“▇▇▇▇▇▇
Mac”), ▇▇▇▇▇▇ Mac Mortgage Securities Corporation, a wholly owned subsidiary of
▇▇▇▇▇▇ Mac (the “Purchaser”) and National Rural Utilities Cooperative Finance
Corporation, a cooperative association existing under the laws of the District
of Columbia (“National Rural”), agree that, on _______ __, 20__ (the “Closing
Date”), the Purchaser will purchase from National Rural and National Rural will
sell to the Purchaser $________________ aggregate principal amount of [Fixed
Rate Notes] [Floating Rate Notes] (the “Notes”) with the following
terms:
[Initial
LIBOR Rate: _______]
[Treasury
Rate:______]
Applicable
Margin (LIBOR or Treasury):__________
Interest
Payment Dates:___________
Interest
Periods:_____________
[The
Notes may not be prepaid at any time.]
[The
Notes may not be prepaid prior to __________ __, 20__. On or after
_____________ __, 20__ the Notes may be prepaid on the scheduled call dates set
forth herein, in whole [only] [or in part], at the option of National Rural,
according to the terms of the Note Purchase Agreement (as defined below).][The
Notes may be prepaid in whole [only] [or in part] at any time.]
[Scheduled
call dates: __________________]
Maturity
Date: __________________
The
issuance and sale of the Notes by National Rural to the Purchaser shall occur
under the terms and conditions of the Note Purchase Agreement, dated as of May
22, 2009, among ▇▇▇▇▇▇ Mac, the Purchaser and National Rural (the “Note Purchase
Agreement”). All of the provisions contained in the Note Purchase
Agreement are hereby incorporated by reference in their entirety and shall be
deemed to be a part of this Pricing Agreement to the same extent as if such
provisions had been set forth in full herein. Capitalized terms used
herein and not defined herein shall have the meanings given to those terms in
the Note Purchase Agreement. This Pricing Agreement may be executed
in two or more counterparts.
In the
event of any inconsistency between the terms of this Pricing Agreement and the
Note Purchase Agreement, the terms of this Pricing Agreement shall
apply.
4
Agreed to
this __ day of _______, 20__.
Federal
Agricultural Mortgage Corporation,
By:
______________________
Name:
____________________
Title:
_____________________
▇▇▇▇▇▇
Mac Mortgage Securities Corporation,
By:
______________________
Name:
____________________
Title:
_____________________
National
Rural Utilities Cooperative
Finance
Corporation,
By:
Name: __________________
Title: ___________________
5
ANNEX
A-1
[FORM OF
FIXED RATE NOTE]
NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
__% Fixed
Rate Senior Note due _______
Washington,
D.C.
____________,
20__
FOR VALUE
RECEIVED, the undersigned, NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
CORPORATION (“National
Rural”), a District of Columbia cooperative association, hereby promises
to pay to ▇▇▇▇▇▇ MAC MORTGAGE SECURITIES CORPORATION, a wholly owned subsidiary
of ▇▇▇▇▇▇ Mac (as defined below) (“the Purchaser”), or
registered assigns, the principal sum of _______________ MILLION DOLLARS
($___,000,000.00) on __________________, together with interest computed from
the date hereof according to the terms of the Note Purchase Agreement (as
defined below).
Payments
of principal and interest on this Note are to be made in lawful money of the
United States of America at such place as shall have been designated by written
notice to National Rural from the registered holder of this Note as provided in
the Note Purchase Agreement referred to below.
This Note
is issued pursuant to a Note Purchase Agreement, dated as of May 22, 2009, as
well as the Pricing Agreement for $__ Fixed Rate Notes dated as of ______ __,
20__ (together, as from time to time amended, the “Note Purchase
Agreement”), among National Rural, the Purchaser and Federal Agricultural
Mortgage Corporation (“▇▇▇▇▇▇ Mac”), and is
entitled to the benefits thereof. This Note is also entitled to the
benefits of the Pledge Agreement, dated as of May 22, 2009, among National
Rural, the Purchaser, ▇▇▇▇▇▇ Mac and the Collateral Agent named
therein.
Capitalized
terms used herein and not defined herein shall have the meanings given to those
terms in the Note Purchase Agreement.
This Note
is a registered Note and, upon surrender of this Note for registration of
transfer or exchange, accompanied by a written instrument of transfer duly
executed by the registered holder hereof or such holder’s attorney duly
authorized in writing, a new Note will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of
transfer, National Rural may treat the person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment and for all
other purposes, and National Rural will not be affected by any notice to the
contrary.
[This
Note may not be prepaid at any time.][This Note may not be prepaid prior to
__________ __, 20__. On or after _____________ __, 20__ this Note may
be prepaid at any time, in whole [only] [or in part], at the option of National
Rural, according to the terms of the
Note
Purchase Agreement and provided that, if such optional prepayment is made on a
date other than an Interest Payment Date, accrued interest on the principal
amount hereof that is being prepaid shall be payable through and excluding the
date such optional prepayment is made.][This Note is prepayable at any time by
National Rural, in whole [only] [or in part] at the option of National Rural on
the terms set forth in the Note Purchase Agreement.]
If an
Event of Default, as defined in the Note Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared due and payable in the
manner, at the price and with the effect provided in the Note Purchase
Agreement.
This Note
shall be construed and enforced in accordance with, and the rights of National
Rural and the holder hereof shall be governed by, the laws of the District of
Columbia, excluding choice-of-law principles of the law of the District of
Columbia that would require the application of the laws of another
jurisdiction.
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NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION,
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By
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Name:
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Title:
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ANNEX
A-2
[FORM OF
FLOATING RATE NOTE]
NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
Floating
Rate Senior Note due _______
Washington,
D.C.
____________,
20__
FOR VALUE
RECEIVED, the undersigned, NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
CORPORATION (“National
Rural”), a District of Columbia cooperative association, hereby promises
to pay to ▇▇▇▇▇▇ MAC MORTGAGE SECURITIES CORPORATION, a wholly owned subsidiary
of ▇▇▇▇▇▇ Mac (as defined below)(the “Purchaser”), or
registered assigns, the principal sum of _______________ MILLION DOLLARS
($___,000,000.00) on __________________, together with interest computed from
the date hereof according to the terms of the Note Purchase Agreement (as
defined below).
Payments
of principal and interest on this Note are to be made in lawful money of the
United States of America at such place as shall have been designated by written
notice to National Rural from the registered holder of this Note as provided in
the Note Purchase Agreement referred to below.
This Note
is issued pursuant to a Note Purchase Agreement, dated as of May 22, 2009, as
well as the Pricing Agreement for $__ Floating Rate Notes dated as of _________
__, 20__ (together, as from time to time amended, the “Note Purchase
Agreement”), among National Rural, the Purchaser and Federal Agricultural
Mortgage Corporation (“▇▇▇▇▇▇ Mac”) and is
entitled to the benefits thereof. This Note is also entitled to the
benefits of the Pledge Agreement, dated as of May 22, 2009, among National
Rural, ▇▇▇▇▇▇ Mac, the Purchaser and the Collateral Agent named
therein.
Capitalized
terms used herein and not defined herein shall have the meanings given to those
terms in the Note Purchase Agreement.
This Note
is a registered Note and, upon surrender of this Note for registration of
transfer or exchange, accompanied by a written instrument of transfer duly
executed by the registered holder hereof or such holder’s attorney duly
authorized in writing, a new Note will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of
transfer, National Rural may treat the person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment and for all
other purposes, and National Rural will not be affected by any notice to the
contrary.
This Note
may not be prepaid at any time.
If an
Event of Default, as defined in the Note Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared due and payable in the
manner, at the price and with the effect provided in the Note Purchase
Agreement.
This Note
shall be construed and enforced in accordance with, and the rights of National
Rural and the holder hereof shall be governed by, the laws of the District of
Columbia, excluding choice-of-law principles of the law of the District of
Columbia that would require the application of the laws of another
jurisdiction.
ANNEX
B
[FORM OF
OPINION OF COUNSEL TO NATIONAL RURAL]
[•]
Federal
Agricultural Mortgage Corporation
▇▇▇▇
▇▇▇▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇
▇▇▇▇▇
▇▇▇
▇▇▇▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Gentlemen:
I am
delivering this opinion as general counsel (“Counsel”) of National Rural
Utilities Cooperative Finance Corporation, a District of Columbia cooperative
association (the “Borrower”), and am familiar with matters pertaining to the
loan to Borrower in the principal amount of $1,000,000,000.00, provided for
in the Note Purchase Agreement, dated as of May 22, 2009 (“Note
Purchase Agreement”), among the Borrower, ▇▇▇▇▇▇ Mac Mortgage Securities
Corporation (the “Purchaser”) and Federal Agricultural Mortgage Corporation
(“▇▇▇▇▇▇ Mac”).
I have
examined such corporate records and proceedings of the Borrower, and such other
documents as I have deemed necessary as a basis for the opinions hereinafter
expressed.
I have
also examined the following documents as executed and delivered: (a) the Note
Purchase Agreement; (b) the Note dated as of ____________, in the principal
amount of $____________ (“Note”), said Note payable to the Purchaser;
(c) the Pricing Agreement for $__________ [Fixed] [Floating] Rate Notes
dated as of ____________ among the Borrower, the Purchaser and ▇▇▇▇▇▇ Mac (the
“Pricing Agreement”) and (d) the Pledge Agreement, dated as of May 22, 2009,
among the Borrower, the Purchaser, ▇▇▇▇▇▇ Mac and U.S. Bank National Association
(the “Pledge Agreement”). The documents described in items (a)
through (d) above are collectively referred to herein as the “Note
Documents.”
Based on
the foregoing, but subject to the assumptions, exceptions, qualifications and
limitations hereinafter expressed, I am of the opinion that:
(1) The
Borrower has been duly incorporated and is validly existing as a cooperative
association in good standing under the laws of the District of Columbia with
corporate power and authority to execute and perform its obligations under the
Note Documents.
(2) The Note
Documents have been duly authorized, executed and delivered by the Borrower, and
such documents constitute the legal, valid and binding agreements of the
Borrower, enforceable against the Borrower in accordance with their respective
terms.
(3) Neither
the execution nor the delivery by the Borrower of any of the Note Documents nor
the consummation by the Borrower of any of the transactions contemplated
therein, including, without limitation, the pledge of the Pledged Securities (as
such term is defined in the Pledge Agreement) to ▇▇▇▇▇▇ Mac, nor the fulfillment
by the Borrower of the terms of any of the Note Documents will conflict with or
violate, result in a breach of or constitute a default under any term or
provision of the Articles of Incorporation or By-laws of the Borrower or any law
or any regulation or any order known to Counsel currently applicable to the
Borrower of any court, regulatory body, administrative agency or governmental
body having jurisdiction over the Borrower or the terms of any indenture, deed
of trust, note, note agreement or instrument to which the Borrower is a party or
by which the Borrower or any of its properties is bound.
(4) No
approval, authorization, consent, order, registration, filing, qualification,
license or permit of or with any state or Federal court or governmental agency
or body having jurisdiction over the Borrower is required for any consummation
by the Borrower of the transactions contemplated by the Note Documents; provided, however, no opinion
is expressed as to the applicability of any Federal or state securities law to
any sale, transfer or other disposition of the Note after the date
hereof.
(5) Except as
set forth in writing and previously delivered to ▇▇▇▇▇▇ Mac or attached hereto
as Exhibit A, there is no pending or, to Counsel’s knowledge, threatened action,
suit or proceeding before any court or governmental agency, authority or body or
any arbitrator with respect to the Borrower, or any of the Note Documents,
which, if adversely determined, would have a material adverse effect on the
Borrower’s financial condition or its ability to perform its obligations under
any of the Note Documents.
(6) With
respect to the Pledged Securities in the Certificate of Pledged Collateral (as
such term is defined in the Pledge Agreement), (x) all action with respect to
the recording, registering or filing of financing statements in the jurisdiction
of organization of National Rural has been taken as is necessary to perfect the
security interest intended to be created in such items under the Uniform
Commercial Code and (y) in the case of each Eligible Security (as such term is
defined in the Pledge Agreement) constituting a certificated security or
instrument under the Uniform Commercial Code, such Eligible Security has been
delivered to the Collateral Agent such that the taking and retention of the
possession by the Collateral Agent of such Eligible Security is sufficient to
perfect the security interest to be created under the Uniform Commercial
Code. For purposes of the opinion set forth in this section (6), I
have assumed that the Uniform Commercial Code of the District of Columbia is the
same as that of the State of New York.
The foregoing opinions are subject to
the following assumptions, exceptions, qualifications and
limitations:
A. I
am a member of the Bar of the District of Columbia and render no opinion on the
laws of any jurisdiction other than the laws of the District of Columbia, the
federal laws of the United States of America and the General Corporation Law of
the District of Columbia.
B. My
opinions are limited to the present laws and to the facts, as they presently
exist. I assume no obligation to revise or supplement this opinion
should the present laws of the jurisdictions referred to in paragraph A above be
changed by legislative action, judicial decision or otherwise.
C. The
opinions expressed in paragraph 2 above shall be understood to mean only that if
there is a default in performance of an obligation, (i) if a failure to pay or
other damage can be shown and (ii) if the defaulting party can be brought into a
court which will hear the case and apply the governing law, then, subject to the
availability of defenses, and to the exceptions set forth in the next paragraph,
the court will provide a money damage (or perhaps injunctive or specific
performance) remedy.
D. My
opinions are also subject to the effect of: (1) bankruptcy,
insolvency, reorganization, receivership, moratorium and other laws affecting
creditors’ rights (including, without limitation, the effect of statutory and
other law regarding fraudulent conveyances, fraudulent transfers and
preferential transfers); and (2) the exercise of judicial discretion and the
application of principles of equity, good faith, fair dealing, reasonableness,
conscionability and materiality (regardless of whether the applicable agreements
are considered in proceeding in equity or at law).
E. This
letter is rendered to you in connection with the Note Documents and the
transactions related thereto, and may not be relied upon by any other person or
by you in any other context or for any other purpose.
F. I
have assumed with your permission (i) the genuineness of all signatures by each
party other than the Borrower, (ii) the authenticity of documents submitted to
me as originals and the conformity to authentic original documents of all
documents submitted to me as copies, and (iii) the due execution and delivery,
pursuant to due authorization, of the Note Documents by each party other than
the Borrower.
Yours
sincerely,
▇▇▇▇ ▇.
List
General
Counsel
ANNEX
C
[FORM OF
OFFICERS’ CERTIFICATE]
Officers’
Certificate
TO: Federal
Agricultural Mortgage Corporation.
We,
_________________, _________________, and ________________,
_____________________, of National Rural Utilities Cooperative Finance
Corporation (“National
Rural”), pursuant to the Note Purchase Agreement dated as of May 22,
2009, among National Rural, ▇▇▇▇▇▇ Mac Mortgage Securities Corporation, and
Federal Agricultural Mortgage Corporation (the “Note Purchase
Agreement”), hereby certify on behalf of National Rural that as at the
date hereof:
(1) National
Rural is a lending institution organized as a private, not-for-profit,
cooperative association with the appropriate expertise, experience and
qualifications to make loans to its Members for rural electrification and
related purposes;
(2) no
material adverse change has occurred in the financial condition of National
Rural between the date of the end of National Rural’s most recently completed
Fiscal Year for which Financial Statements have been made publicly available and
the date hereof, which has not been set forth in documents, certificates, or
financial information furnished to ▇▇▇▇▇▇ Mac or publicly filed;
(3) all
of the representations contained in Section 5.02 of the Note Purchase Agreement
remain true and correct in all material respects on and as of the date hereof;
and
(4) no
Event of Default exists.
Capitalized
terms used in this certificate shall have the meanings given to those terms in
the Note Purchase Agreement.
DATED as
of this _____ day of ______________, _________.
NATIONAL
RURAL UTILITIES
COOPERATIVE
FINANCE
CORPORATION,
______________________________
Name:
Title
______________________________
Name:
Title:
ANNEX
D
[FORM OF
SERIES C PREFERRED STOCK PURCHASE AGREEMENT]