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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)
October 8, 1999
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
District of Columbia l-7102 52-0891669
(state or other juris- (Commission (I.R.S. Employer
diction of incorporation) File Number) (Identification
No.)
</TABLE>
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
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(Former name or former address, if changed since last report)
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Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) Exhibits
The following exhibits are filed herewith:
1.1 The Amendment dated October 8, 1999 to the Agency Agreement
dated June 8, 1999 between the Company and the Agents named
therein, relating to the distribution of the Company's
Medium-Term Notes, Series C, within the United States.
10.1 Calculation Agent Agreement dated October 8, 1999 between the
Company and Lehman Brothers Inc., as Calculation Agents.
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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
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Dated: October 8, 1999
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EXHIBIT 1.1
AMENDMENT dated as of October 8, 1999 to the
Agency Agreement dated June 8, 1999, among National
Rural Utilities Cooperative Finance Corporation (the
"Company"), a District of Columbia cooperative
association, Lehman Brothers Inc. (an "Agent"), Banc
of America Securities LLC (an "Agent"), Goldman,
Sachs & Co., (an "Agent"), Merrill Lynch, Pierce,
Fenner & Smith Incorporated (an "Agent") and J.P.
Morgan Securities Inc. (an "Agent") (such Agency
Agreement, the "Agreement").
WHEREAS, the parties hereto have entered into the Agreement;
WHEREAS, the Agreement initially contemplated the issuance and
sale by the Company from time to time of up to $2,143,529,000 aggregate
principal amount of its Medium-Term Notes, Series C (the "Securities");
WHEREAS, the Company has issued and sold approximately
$1,974,272,000 aggregate principal amount of Securities pursuant to the
Agreement and the Indenture on and after June 8, 1999;
WHEREAS immediately prior to this Amendment taking effect, the
Company's Registration Statement No. 333-78931 remains effective under the Act,
with $169,257,000 aggregate principal amount of Securities remaining unissued
and unsold under such Registration Statement;
WHEREAS, the parties hereto desire to amend the Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein, the parties hereto agree as follows:
1. The Agreement is hereby amended to include in the
definition of "Registration Statement", as contemplated therein in Section 1(a),
Registration Statement No. 333-87793, previously filed with the Commission and
effective as of October 7, 1999, relating to the registration of $3,000,000,000
aggregate principal amount of Securities, and to revise the definition of
"Prospectus" to mean the prospectus supplement dated October 8, 1999, relating
to the Securities covered by the Agreement, as amended, together with the
prospectus contained in such Registration Statement.
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2. The Agreement is hereby amended to increase the aggregate
principal amount of Securities which may be issued and sold from time to time by
the Company thereunder to $5,143,529,000 and the aggregate principal amount of
Securities which may be issued and sold from time to time thereunder on or after
the date hereof to $3,169,257,000.
3. The Agreement is hereby amended to delete from the
definition of "Registration Statement", Registration Statement No. 333-53819,
and all amendments thereto and supplements thereof, all of the Securities
registered thereby having been issued and sold by the Company.
4. This Amendment shall become effective only on the
satisfaction (or waiver by the Agents) of the conditions in Section 5 of the
Agreement with respect to the Closing Date for this Amendment.
Except as expressly amended hereby, the Agreement shall
continue in full force and effect in accordance with the provisions thereof as
in existence on the date hereof.
All capitalized terms not defined herein have the meanings
assigned to them in the Agreement.
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IN WITNESS WHEREOF, the parties hereto have each caused this
Amendment to be fully executed as of the date first above written.
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
CORPORATION
by /s/ Steven L. Lilly
--------------------------
Name: Steven L. Lilly
Title: Senior Vice President
and Chief Financial Officer
LEHMAN BROTHERS INC.
by /s/ James W. Merli
--------------------------
Name: James W. Merli
Title: Managing Director
BANC OF AMERICA SECURITIES LLC
by /s/ Jennifer W. Hern
--------------------------
Name: Jennifer W. Hern
Title: Principal
GOLDMAN, SACHS & CO.
by /s/ Goldman, Sachs & Co.
--------------------------
(Goldman, Sachs & Co.)
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
by /s/ Scott G. Primrose
--------------------------
Name: Scott G. Primrose
Title: Authorized Signatory
J.P. MORGAN SECURITIES INC.
by /s/ Steven Christensen
--------------------------
Name: Steven Christensen
Title: Vice President
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EXHIBIT 10.1
U.S. $3,169,257,000
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION
Medium-Term Notes, Series C
CALCULATION AGENT AGREEMENT
This AGREEMENT dated October 8, 1999,
between National Rural Utilities Cooperative Finance
Corporation, a District of Columbia cooperative
association (hereinafter called the "Issuer"), whose
principal office is at Woodland Park, 2201
Cooperative Way, Herndon, Virginia 20171, and Lehman
Brothers Inc., a Delaware corporation (hereinafter
sometimes called the "Calculation Agent" which term
shall, unless the context shall otherwise require,
include its successors and assignees), whose
principal office is at 3 World Financial Center, New
York, New York 10285-0900.
WHEREAS (A) The Issuer proposes to issue from time to time an
aggregate principal amount of up to $3,169,257,000 of Medium-Term Notes, Series
C (the "Notes") entitled to the benefits of the Indenture dated as of December
15, 1987 (as supplemented by the First Supplemental Indenture dated as of
October 1, 1990 and as it may be supplemented or amended from time to time, the
"Indenture"), between the Issuer and Harris Trust and Savings Bank, as successor
Trustee;
(B) Each Note will bear interest at either (a) a fixed rate or
(b) a floating rate determined by reference to an interest rate formula (the
"Floating Rate Notes");
NOW IT IS HEREBY AGREED THAT,
1. Terms defined in the "Description of Securities" and
"Description of the Medium-Term Notes" shall bear the same meanings herein
unless the context otherwise requires. The "Description of Debt Securities"
means the terms and conditions of the Notes as set forth in the Prospectus,
dated October 7, 1999, as supplemented by a Prospectus Supplement, dated October
8, 1999, relating to the Notes. The "Description of the Medium-Term Notes" means
the terms and conditions of the Notes as set forth in the
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Prospectus Supplement, dated October 8, 1999, relating to the Notes. Such
Prospectus Supplement will be supplemented or amended by one or more Pricing
Supplements (each a "Supplement") setting forth additional terms and conditions
of the Notes.
2. The Issuer hereby appoints Lehman Brothers Inc. as
Calculation Agent for the Notes, upon the terms and subject to the conditions
herein mentioned, and Lehman Brothers Inc. hereby accepts such appointment. The
Calculation Agent shall act as an agent of the Issuer for the purpose of
determining the interest rate of the Floating Rate Notes in accordance with the
Description of the Medium-Term Notes and the provisions of this Agreement.
3. The Calculation Agent shall calculate the applicable
interest rates for the Floating Rate Notes in accordance with the provisions set
forth in the Prospectus Supplement relating to the Notes dated October 8, 1999,
under the heading "Description of the Medium-Term Notes--Floating Rate Notes"
which provisions are incorporated by reference herein as if set forth in full in
this Agreement.
4. In no event shall the interest rate be less than the floor,
if any, or more than the ceiling, if any, designated in the applicable
Supplement.
5. The Calculation Agent will, as soon as practicable after
(i) 3:00 p.m., New York City time, on the Calculation Date pertaining to each
Interest Determination Date relating to Commercial Paper Rate Notes, Fed Funds
Rate Notes, CD Rate Notes and Treasury Rate Notes or (ii) 11:00 a.m., London
time, on each Interest Determination Date relating to LIBOR Notes, determine
(and notify the Issuer and the Trustee of) the interest rate applicable during
the next succeeding interest period (if the interest rate cannot be determined
in accordance with the provisions set forth in the Prospectus Supplement
relating to the Notes dated October 8, 1999, in clause (i) under the heading
"Description of the Medium-Term Notes--Floating Rate Notes--LIBOR", the
Calculation Agent agrees to determine (and notify the Issuer and Trustee of) the
interest rate in accordance with the provisions in clause (ii) of such heading).
6. As soon as determined after each Interest Determination
Date, the Calculation Agent will cause to be
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forwarded to the Issuer, the Trustee and the Paying Agent information regarding
the interest rates and the interest periods for each interest period and the
relevant Interest Payment Date.
7. The Issuer will pay such compensation as shall be agreed
upon and the expenses, including reasonable counsel fees, properly incurred by
the Calculation Agent in connection with its duties hereunder, upon receipt of
such invoices as the Issuer shall reasonably require.
8. The Issuer will indemnify the Calculation Agent against any
losses, liabilities, costs, claims, actions or demands which it may incur or
sustain or which may be made against it in connection with its appointment or
the exercise of its powers and duties hereunder as well as the reasonable costs,
including the expenses and fees of counsel in defending any claim, action or
demand, except such as may result from the negligence, wilful default or bad
faith of the Calculation Agent or any of its employees. The Calculation Agent
shall incur no liability and shall be indemnified and held harmless by the
Issuer for, or in respect of, any actions taken or suffered to be taken in good
faith by the Calculation Agent in reliance upon (i) the written opinion or
advice of counsel or (ii) written instructions from the Issuer.
9. The Calculation Agent accepts its obligations herein (and
agrees to act in good faith in the performance of its obligations) set forth
upon the terms and conditions hereof, including the following, to all of which
the Issuer agrees:
(i) in acting under this Agreement and in connection with the
Notes, the Calculation Agent, acting as agent for the Issuer, does not
assume any obligation towards, or any relationship of agency or trust
for or with, any of the holders of the Notes;
(ii) unless herein otherwise specifically provided, any order,
certificate, notice, request or communication from the Issuer made or
given under any provision of this Agreement shall be sufficient if
signed by any person whom the Calculation Agent reasonably believes to
be a duly authorized officer of the Issuer;
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(iii) the Calculation Agent shall be obligated to perform only
such duties as are set forth specifically herein and any duties
necessarily incidental thereto; and
(iv) the Calculation Agent shall be protected and shall incur
no liability for or in respect of any action taken or omitted to be
taken by it in reliance upon anything contained in a Floating Rate
Note, the Description of Securities, the Description of the Medium-Term
Notes or one or more Prospectus Supplements.
10. (A) The Issuer agrees to notify the Calculation Agent at
least five London Business Days prior to the issuance of any LIBOR Note. The
Calculation Agent agrees to select four Reference Banks prior to the issuance of
the first LIBOR Note by the Issuer; to make all appropriate arrangements for
such banks to act as Reference Banks; and to notify the Issuer, the Trustee and
each of the Agents as to the names and addresses of such Reference Banks. The
Calculation Agent covenants that, for so long as it is required so to do in
accordance with the applicable Description of the Medium-Term Notes it shall
ensure that there shall at all times be four Reference Banks. Forthwith upon any
change in the identity of the Reference Banks the Calculation Agent shall notify
the Issuer, the Trustee and the Agents of such change. If fewer than two
Reference Banks are quoting, the Calculation Agent agrees to select three major
banks in The City of New York in accordance with the applicable Description of
the Medium-Term Notes. The Calculation Agent shall not be responsible to the
Issuer or any third party for any failure of the Reference Banks to fulfill
their duties or meet their obligations as Reference Banks or as a result of the
Calculation Agent having acted (except in the event of negligence, wilful
default or bad faith) on any certificate given by any Reference Bank which
subsequently may be found to be incorrect.
(B) If necessary, in accordance with the provisions set forth
in the Prospectus Supplement relating to the Notes dated October 8, 1999, under
the Heading "Description of the Medium-Term Notes--Floating Rate Notes--Prime
Rate", the Calculation Agent agrees to select a substitute major bank or trust
company (meeting the requirements specified under such heading). The Calculation
Agent shall not be responsible to the Issuer or any third party for the failure
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of such bank or trust company to fulfill any duty or obligation contemplated
under such heading.
(C) Except as provided below, the Calculation Agent may at any
time resign as Calculation Agent by giving written notice to the Issuer and the
Trustee of such intention on its part, specifying the date on which its desired
resignation shall become effective, provided that such notice shall be given not
less than two months prior to the said effective date unless the Issuer and the
Trustee otherwise agree in writing. Except as provided below, the Calculation
Agent may be removed by the filing with it of an instrument in writing signed by
the Issuer specifying such removal and the date when it shall become effective
(such effective date being at least 20 days after said filing). Such resignation
or removal shall take effect upon:
(i) the appointment by the Issuer as hereinafter provided of a
successor Calculation Agent approved by the Trustee, which shall be a
responsible financial firm or institution having an established place
of business in The City of New York;
(ii) the acceptance of such appointment by such successor
Calculation Agent; and
(iii) the giving of notice of such appointment to the holders
of the Notes, provided that if the Calculation Agent fails duly to
establish the amount of interest for any interest period, such removal
will take effect immediately upon such appointment of, and acceptance
thereof by, a successor Calculation Agent approved by the Trustee and
qualified as aforesaid, in which event notice of such appointment shall
be given to the holders of the Notes as soon as practicable thereafter.
Upon its resignation or removal becoming effective, the retiring
Calculation Agent shall be entitled to the payment of its compensation
and the reimbursement of all expenses incurred by such retiring
Calculation Agent pursuant to paragraph 7 hereof.
(D) If at any time the Calculation Agent shall resign or be
removed, or shall become incapable of acting or shall be adjudged bankrupt or
insolvent, or liquidated or dissolved, or an order is made or an effective
resolution is passed to wind up the Calculation Agent, or if the Calculation
Agent shall file a voluntary petition in bank-
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ruptcy or make an assignment for the benefit of its creditors, or shall consent
to the appointment of a receiver, administrator or other similar official of all
or any substantial part of its property, or shall admit in writing its inability
to pay or meet its debts as they mature, or if a receiver, administrator or
other similar official of the Calculation Agent or of all or any substantial
part of its property shall be appointed, or if any order of any court shall be
entered approving any petition filed by or against the Calculation Agent under
the provisions of any applicable bankruptcy or insolvency law, or if any public
officer shall take charge or control of the Calculation Agent or its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then a
successor Calculation Agent, approved by the Trustee, shall be appointed by the
Issuer by an instrument in writing filed with the successor Calculation Agent.
Upon the appointment as aforesaid of a successor Calculation Agent and
acceptance by the latter of such appointment and (except in cases of removal for
failure to establish the amount of interest) the giving of notice to the holders
of the Notes, the former Calculation Agent shall cease to be Calculation Agent
hereunder.
(E) Any successor Calculation Agent appointed hereunder shall
execute and deliver to its predecessor and the Issuer an instrument, in the form
acceptable to the Trustee, accepting such appointment hereunder, and thereupon
such successor Calculation Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts, immunities,
duties and obligations of such predecessor with like effect as if originally
named as the Calculation Agent hereunder, and such predecessor shall thereupon
become obliged to transfer and deliver, and such successor Calculation Agent
shall be entitled to receive, copies of any relevant records maintained by such
predecessor Calculation Agent.
(F) Any corporation into which the Calculation Agent may be
merged or converted or any corporation with which the Calculation Agent may be
consolidated or any corporation resulting from any merger, conversion or
consolidation to which the Calculation Agent shall be a party shall, to the
extent permitted by applicable law and provided that it shall be a responsible
financial firm or institution having an established place of business in The
City of New York, be the successor Calculation Agent under this Agreement
without the execution or filing of any paper
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or any further act on the part of any of the parties hereto. Notice of any such
merger, conversion or consolidation shall forthwith be given to the Issuer and
the Trustee.
11. Any notice required to be given hereunder shall be
delivered in person, sent by letter or telex or communicated by telephone
(subject, in the case of communication by telephone, to confirmation dispatched
within two business days by letter or telex), in the case of the Issuer, to it
at Woodland Park, 2201 Cooperative Way, Herndon, Virginia 20171, Attention:
Chief Financial Officer; in the case of the Calculation Agent, to it at 3 World
Financial Center, New York, New York 10285, Attention: Medium-Term Note
Department; and in the case of the Trustee, to it c/o Bank of Montreal Trust
Company, 77 Water Street, 4th Floor, New York, New York 10005, Attention:
Corporate Trustee Administration Department or, in any case, to any other
address of which the party receiving notice shall have notified the party giving
such notice in writing.
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12. This Agreement may be amended only by a writing duly
executed and delivered by each of the parties signing below.
13. THE PROVISIONS OF THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
14. This Agreement may be executed in counterparts and the
executed counterparts shall together constitute a single instrument.
IN WITNESS WHEREOF, this Agreement has been executed and
delivered as of the day and year first above written.
NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION,
by /s/ Steven L. Lilly
---------------------------
Name: Steven L. Lilly
Title: Senior Vice President and
Chief Financial Officer
LEHMAN BROTHERS INC.,
by /s/ James W. Merli
---------------------------
Name: James W. Merli
Title: Managing Director
