|
 |
Master
Notes - Program Summary |
(See the Master Notes Offering Circular for a full description.)
Farm Credit Master Notes are individually negotiated
agreements that can provide money managers with a high credit quality investment
with cash management flexibility. Interest rates on Master Notes are indexed
to a specified money market rate, such as, a Farm Credit Discount Note rate
or LIBOR, and typically reset weekly or monthly. Generally, Master Notes
have a maturity of one year and pay interest on a monthly basis. Master
Notes offer a unique daily put/call feature that provides investors with the
ability to adjust the principal amount outstanding on the Master Note to
any amount within 25% of the base principal amount.
Highlights
Yield enhancement potential to comparable U.S. Treasuries
Interest income is generally exempt from state and local income taxes
Portfolio diversification opportunity
The following is a summary of :
|
|
Program Features
Security Description
Issuance Process
Distribution to Investors
|
Program Features
Flexible – Individually negotiated instruments with a variety of
indices and reset options.
Offers a unique daily put/call feature that provides investors with
the ability to adjust the amount of the Master Note as much as 25% above
or below the base principal amount.
An alternative to Discount Notes, which reduces the need for frequent
purchases or sales normally associated with cash position management.
| Security Description |
| Maturities: |
Typically one year, the specific Maturity
Date will be specified in the Purchase Agreement.
|
| Form: |
Physical note with interest and daily cash flows
transferred on the funds-transfer system of the Federal Reserve
Banks.
|
| Minimum Issue Size: |
$25 million
|
| Interest: |
Generally paid on the first Business
Day of each month, and at maturity. Specified as the “Contract
Interest Rate” in the Purchase Agreement and may be fixed or
determined by reference to a specified money market rate.
|
| Investor Option: |
Unique daily put/call feature that provides the
investor with the ability to adjust the amount of the Master Note as much as 25%
above or below the base principal amount.
|
| Offering Documentation: |
See the Master Notes Offering Circular.
Specific terms are described in the applicable Purchase Agreement.
|
| Additional Information for Investors: |
Farm Credit System Annual Information Statements
Farm Credit System Quarterly Information Statements
Financial Press Releases
|
Issuance Process
Individual agreements between the investor and the Funding
Corporation on behalf of the System Banks negotiated through a single member of the Bond Dealers.
Investor (reverse) inquiries from a Bond Dealer will be considered from a Bond Dealer by the Funding Corporation
on behalf of the System Banks.
Distribution to Investors
The unique put/call feature of Master Notes appeals to institutional money
managers who adjust their portfolios daily.
|
* Before investing, please read the applicable Farm Credit System offering documentation. Unless otherwise defined, terms will have the meaning set forth in the applicable offering documentation. This document is neither an offer to sell nor a solicitation for an offer to buy any Farm Credit Debt Securities. Farm Credit Debt Securities are offered only by the offering documents available through select dealers. For further information regarding the tax treatment of investments in the Farm Credit Debt Securities, contact your tax advisor.
Farm Credit Debt Securities are the joint and several obligations of the Farm Credit System Banks and are not obligations of and are not guaranteed by the United States or any Federal agency instrumentality, other than the Banks.
May 2001
|
|
