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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
June 15, 1999
RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (KEPCO) SERIES 1997
(Exact name of registrant as specified in its charter)
New York 333-25029 36-7233686
(State or other jurisdic- (Commission File (IRS Employer
tion of incorporation) Number) Identification No.)
National Rural Utilities Cooperative
Finance Corporation
Woodland Park
2201 Cooperative Way, Herndon, VA 20171-3025
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (703) 709-6700
(Former name or former address, if changed since last report)
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Item 5. Other Events
In accordance with Section 5.1 of the First Amendment to the
Trust Agreement, a semi-annual report dated June 15, 1999
was sent to certificateholders. A copy of the report appears
as an exhibit to this filing.
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Item 7. Financial Statement, Pro Forma Financial Information and Exhibits
(c) Exhibits
The following exhibit is filed herewith:
21.1 Semi-annual Report to Certificateholders dated
June 15, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION
/s/ Steven L. Lilly
Steven L. Lilly
Chief Financial Officer
June 21, 1999
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Exhibit Index
(21.1) Semi-annual Report to Certificateholders dated June 15, 1999.
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To the holders of:
RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (KEPCO) SERIES 1997
CUSIP: 781681 AU 5
The following information has been furnished to us, as your Trustee, by
National Rural Utilities Cooperative Finance Corporation (the "Servicer"),
pursuant to Section 5.1 of the First Amendment to the Trust Agreement
dated as amended November 18, 1997.
Certificate Payment Date: June 15, 1999
Distribution to Certificateholders $ 1,449,855.49
Allocable to Principal $ 0.00
Allocable to Interest $1,449,855.49
Payment Received From Cooperative $ 2,139,261.15
Principal $ 0.00
Interest $2,139,261.15
Service Fees Paid to Servicer $ 26,512.71
Payments Related to Swap Agreement
Payment Received From Morgan $ 1,449,855.49
Payment to Morgan $ 2,139,261.15
Principal Balance of Certificates
Outstanding: $ 56,390,000.00
The Cooperative assigned to the Trust certain rights under an interest
rate swap agreement (the "Swap Agreement"). The counterparty to the Swap
Agreement is Morgan Guaranty Trust Company of New York ("Morgan").
Pursuant to the Swap Agreement, the Trust pays to Morgan a fixed rate of
interest on the outstanding Notional amount, and Morgan pays the Trust a
variable rate of interest on the outstanding notional amount. The
structure is designed such that the interest amounts paid by the Cooperative
to the Trust are the same amounts paid to Morgan, pursuant to the Swap
Agreement, plus the amounts payable to CFC, as servicer. The amounts paid
by Morgan to the Trust under the Swap Agreement are the same as the interest
payable by the Trust to the Certificateholders.
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No delinquency in payment under either the Note, the Guarantee or the Swap
Agreement has occurred and no Event of Servicing Termination, or, to the
best of the Servicer's knowledge, event that with notice or lapse of time
or both would become an Event of Servicing Termination, has occurred and is
continuing.
I, the undersigned, do hereby certify that I am a Responsible Officer of
National Rural Utilities Cooperative Finance Corporation, and as such
officer, I further certify that to the best of my knowledge and belief, the
Semiannual Report is complete and accurate.
NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION
/s/ STEVEN L. LILLY
Chief Financial Officer
June 21, 1999
