    [Appendix]
    [Estimates for Government-Sponsored Enterprises]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 1129]]

                        GOVERNMENT-SPONSORED ENTERPRISES

        This chapter contains descriptions of and data on the Government-
    sponsored enterprises listed below. These enterprises were established
    and chartered by the Federal Government. They are not included in the
    Federal budget because they are classified as being private. However,
    because of their relationship to the Government, detailed statements of
    financial operations and condition are presented, to the extent such
    information is available, on a basis that is as consistent as
    practicable with the basis for the budget data of Government agencies.
    These statements are not reviewed by the President; they are presented
    as submitted by the enterprises.

        --The Student Loan Marketing Association is a for-profit financial
            corporation chartered by Congress in 1972 under the Higher
            Education Act (HEA) to help increase the availability of student
            loans. Sallie Mae carries out secondary market and other
            functions.

        --The College Construction Loan Insurance Association is organized
            as a private, for-profit insurance corporation to guarantee and
            insure bonds and loans made for construction and renovation of
            college and university facilities. The Corporation was
            established by, but was not chartered by, the Federal
            Government.

        --The Federal National Mortgage Association provides supplementary
            assistance to the secondary market for home mortgages. The
            Federal Home Loan Mortgage Corporation provides a secondary
            market for mortgage lenders. Both are supervised by the
            Department of Housing and Urban Development for their roles in
            helping to finance low- and moderate-income housing; both are
            regulated for financial safety and soundness by the newly
            established Office of Federal Housing Enterprise Oversight.

        --The Banks for Cooperatives, Agricultural Credit Bank, and Farm
            Credit Banks provide financial assistance to agriculture. They
            are supervised by the Farm Credit Administration.

        --The Federal Agricultural Mortgage Corporation, under the
            supervision of the Farm Credit Administration, provides a
            secondary mortgage market for agricultural real estate and
            certain rural housing loans as well as for farm and business
            loans guaranteed by the U.S. Department of Agriculture.

        --The Federal Home Loan Banks assist thrift institutions, banks, and
            credit unions and are supervised by the Federal Housing Finance
            Board.

        --The Financing Corporation functions as a financing vehicle for the
            FSLIC Resolution Fund. It operates under the supervision and
            control of the Federal Housing Finance Board.

        --The Resolution Funding Corporation provides financing for the
            Resolution Trust Corporation (RTC) and is subject to the general
            oversight and direction of the Thrift Depositor Protection
            Oversight Board.

        The Board of Governors of the Federal Reserve System is not a
    Government-sponsored enterprise, but its transactions also are not
    included in the budget because of its unique status in the conduct of
    monetary policy. The Board provides data on its administrative budget on
    a calendar year basis, which is included here for information. Its
    budget schedules and statements are not subject to review by the
    President.

                             DEPARTMENT OF EDUCATION

                       Student Loan Marketing Association

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-1500-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Interest expense................       2,973       2,825       2,966
    00.02   Administrative expenses and
              taxes.........................         507         496         536
                                               ---------   ---------  ----------

    00.91     Total operating expenses......       3,480       3,321       3,502
          Capital investment:

    01.01   Loans, etc......................      11,021      10,553      10,441
    01.02   Investments, dividends, and
              other assets..................         888         700         750
                                               ---------   ---------  ----------

    01.91     Total capital investment......      11,909      11,253      11,191
                                               ---------   ---------  ----------

    10.00   Total obligations...............      15,389      14,574      14,693
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      15,389      14,573      14,693
    23.95 New obligations...................     -15,389     -14,574     -14,693
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Authority to borrow (indefinite)..        -466      -6,982      -2,492
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      15,855      21,555      17,185
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................      15,389      14,573      14,693
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.91   Obligated balance: U.S.
              Securities: Par value.........       1,240       1,201       1,167
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............       1,240       1,201       1,167
    73.10 New obligations...................      15,389      14,574      14,693
    73.20 Total outlays (gross).............     -15,428     -14,608     -14,636
          Unpaid obligations, end of year:

    74.91   Obligated balance: Fund balance:
              U.S. Securities: Par value....       1,201       1,167       1,224
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................       1,201       1,167       1,224
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      15,419      14,608      14,636
    86.98 Outlays from permanent balances...           9
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      15,428      14,608      14,636
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -15,855     -21,555     -17,185
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -466      -6,982      -2,492
    90.00 Outlays...........................        -427      -6,947      -2,549
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-1500-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      11,021      10,553      10,441
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      11,021      10,553      10,441
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      38,071      41,636      38,202

    [[Page 1130]]

    1231  Disbursements: Direct loan
            disbursements...................      11,021      10,553      10,441
          Repayments:

    1251    Repayments and prepayments......      -7,723      -9,034      -6,359
    1252    Proceeds from loan asset sales
              to the public or discounted...                  -5,000      -6,000
    1264  Write-offs for default: Other
            adjustments, net................         267          47          52
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........      41,636      38,202      36,336
    ---------------------------------------------------------------------------

        The Student Loan Marketing Association (Sallie Mae), a shareholder-
    owned corporation, was created by the Education Amendments of 1972 to
    expand funds available for student loans by providing liquidity to
    lenders engaged in the Federal Family Education Loan Program (FFELP),
    formerly the guaranteed student loan program (GSLP).
        Sallie Mae provides liquidity through direct purchase of insured
    student loans from eligible lenders and through warehousing advances,
    which are loans to lenders secured by insured student loans, Government
    or agency securities, or other acceptable collateral. In capital
    shortage areas, Sallie Mae is authorized, at the request of Federal
    officials, to make insured loans directly to students. Sallie Mae is
    authorized to advance funds to State agencies that will provide loans to
    students. Sallie Mae is also authorized to provide a secondary market
    for noninsured loans; to serve as a guarantee agency in support of loan
    availability at the request of the Secretary of Education; to purchase
    and underwrite student loan revenue bonds; to provide certain additional
    services as determined by its board of directors to be supportive of the
    credit needs of students generally; and to provide financing for
    academic facilities and equipment.
        Sallie Mae is authorized by the Health Professions Educational
    Assistance Act of 1976 to provide a secondary market for federally
    insured loans to graduate health professions students.
        Operations.--The forecast data with respect to operations are based
    on certain general economic and specific FFELP loan volume assumptions
    and should not be relied upon as an official forecast of the
    corporation's future business.

                             ANNUAL LOAN ACTIVITY

                                                        [In millions of
                                                            dollars]
    Guaranteed student loans:            1995 actual  1996 est.   1997 est.
      Stafford (formerly ``regular''):
        Purchased.......................       6,441       6,700       6,750
        Warehoused......................       2,358       1,500       1,285
      PLUS/SLS: Purchased...............         998         830         865
                                        ------------------------------------
          Subtotal, Guaranteed student
            loans.......................       9,797       9,030       8,900
    Health professions loans: Purchased.         291         303         305
    Other...............................         933       1,220       1,236
                                        ------------------------------------
          Total.........................      11,021      10,553      10,441
                                        ====================================

        Financing.--Between 1974 and early 1982, Sallie Mae borrowed through
    the Federal Financing Bank. The Secretary of Education was authorized by
    the Education Amendments of 1980 to guarantee principal and interest on
    such obligations issued prior to October 1, 1985. Under an agreement
    with the Department of the Treasury reached in early 1981, Sallie Mae
    began borrowing directly in the private capital markets. Its last
    borrowing through the FFB and its last issuance of federally guaranteed
    obligations occurred in January 1982. During the first quarter of 1994,
    Sallie Mae prepaid all of the outstanding FFB debt. Its obligations
    today have certain characteristics, provided by charter, which give them
    ``agency'' status, but they are not federally insured or guaranteed.
        Management.--At its annual meeting in May 1995, the shareholders of
    Sallie Mae elected 14 members to its board of directors to serve until
    May 1996. The shareholders of Sallie Mae are entitled to elect 14
    members to the board. Pursuant to the Education Amendments of 1972,
    seven public directors are appointed by the President, who also names
    the chairman from among the 21 members.
        Restructuring.--Because of the transition from the guaranteed
    student loan program to the program of Federal Direct Student Loans and
    other reasons, the Administration has proposed legislation to
    restructure Sallie Mae into a fully private company. In any such
    restructuring, currently outstanding Sallie Mae debt would retain the
    characteristics of government sponsored enterprise debt, and customers
    having agreements with the GSE would be fully protected. Any new debt
    issued by a private company successor to Sallie Mae would not possess
    the characteristics of government sponsored enterprise debt.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-1500-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,827          3,959
    0102  Expense...........................      -2,399         -3,481
                                            ------------ --------------  ------------  -------------
    0109  Net income........................         428            478
    -----------------------------------------------------------------------------------------------
        Note.--The Sallie Mae Board of Directors does not consider it
    appropriate to forecast corporate revenue in a public document since
    such forecasts could be used for speculative purposes.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-1500-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
    1102      Treasury securities, par......       1,192          1,173         1,138          1,195
    1104      Agency securities, par........          48             29            29             29
    1106      Receivables, net..............         592            855           897            942
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............      11,720          9,907         7,517          7,824
    1206    Receivables, net................         240            326           342            359
    1207    Advances and prepayments........          22             13            13             14
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Direct loans, gross.............      38,172         41,739        38,297         36,426
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -100           -103           -95            -90
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      38,072         41,636        38,202         36,336
          Other Federal assets:

    1801    Cash and other monetary assets..         101             37            39             41
    1803    Property, plant and equipment,
              net...........................         149            179           188            197
    1901    Other assets....................          38            144           151            159
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      52,174         54,299        48,516         47,096
        LIABILITIES:
          Non-Federal liabilities:

    2202    Interest payable................         401            582           611            642
    2203    Debt............................      49,692         51,672        45,757         44,199
    2206    Pension and other actuarial
              liabilities...................           9             14            15             16
    2207    Other...........................         560            746           784            823
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      50,662         53,014        47,167         45,680
        NET POSITION:
    3200  Invested capital..................       1,511          1,284         1,349          1,416
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,511          1,284         1,349          1,416
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      52,173         54,298        48,516         47,096
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-1500-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          60          53          56
    12.1  Civilian personnel benefits.......          16          17          18
    21.0  Travel and transportation of
            persons.........................           6           6           6

    [[Page 1131]]

    23.3  Communications, utilities, and
            miscellaneous charges...........           6           6           6
    25.1  Advisory and assistance services..          33          15          16
    25.2  Other services....................         260         268         281
    31.0  Equipment.........................           2           2           2
    33.0  Loans.............................      11,022      10,553      10,441
    43.0  Interest, dividends, and taxes....       3,984       3,654       3,867
                                               ---------   ---------  ----------

    99.9    Total obligations...............      15,389      14,574      14,693
    ---------------------------------------------------------------------------

                 College Construction Loan Insurance Association

        The College Construction Loan Insurance Association (Connie Lee) was
    authorized by Public Law 99-498 on October 17, 1986. The Corporation was
    created to insure and reinsure bonds and loans of educational
    institutions which borrow funds to finance the acquisition,
    construction, or renovation of their facilities. The Association was
    incorporated in February 1987, under the District of Columbia Business
    Corporation Act.
        Connie Lee's authorizing statute states that ``no obligation which
    is insured, guaranteed, or otherwise backed by the corporation, shall be
    deemed to be an obligation which is guaranteed by the full faith and
    credit of the United States.''
        Operations.--Connie Lee is structured to operate as a private
    corporation, subject to the same state laws and regulations as any other
    insurance company. Accordingly, Connie Lee secures insurance licenses in
    each of the various states in which it expects to conduct its insurance
    activities.
        The Board of Directors authorized management to begin activities as
    a reinsuror of educational facilities bonds in 1988. Connie Lee
    reinsured its first bonds in December 1988. In fiscal year 1995, Connie
    Lee insured $913 million of debt service on bonds benefitting colleges,
    universities and teaching hospitals.
        Connie Lee also provided reinsurance on bonds representing $43
    million of debt service.
        The forecast data contained in this material are based on certain
    general economic assumptions and should not be construed as an official
    forecast of the Corporation's position.

                      INSURANCE AND REINSURANCE ACTIVITY

                                                        [In thousands of
                                                            dollars]
                                                          1995 actual
    Debt service insured:
     Direct insurance.................................             912,662
     Reinsurance......................................              43,479
                                                      --------------------

       Total..........................................             956,141

        Financing.--In order to provide capitalization, the Secretary of
    Education, the Student Loan Marketing Association (Sallie Mae), and
    other investors are authorized to purchase stock in the corporation.
    Sallie Mae made an initial investment of $2 million in Connie Lee stock
    in fiscal year 1987. The Secretary of Education purchased $19.1 million
    in Connie Lee stock with funds appropriated for this purpose in fiscal
    year 1988. Subsequently, the corporation sold an additional $50.9
    million of equity securities to Sallie Mae, increasing total capital of
    the corporation to $72.0 million. At the end of 1991, Connie Lee placed
    equity securities with private investors, providing sufficient
    incremental capital to obtain a triple-A credit rating necessary to
    engage in the financial guaranty business as a direct writer of
    insurance.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-9931-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          19             19            22             25
    0102  Expense...........................         -11            -11           -11            -12
                                            ------------ --------------  ------------  -------------
    0109  Net income........................           8              8            11             13
    -----------------------------------------------------------------------------------------------

        Management.--Connie Lee is governed by an eleven-member board of
    directors comprised of two directors appointed by the Secretary of the
    Treasury; two directors appointed by the Secretary of Education; three
    directors appointed by the Student Loan Marketing Association; and four
    directors elected by the corporation's shareholders, one of whom must be
    an administrator of a college or university.
        The Administration has submitted legislation to the Congress which
    would fully privatize Connie Lee by divesting the Secretary of
    Education's stock ownership in the Corporation and repealing the
    Corporation's enabling legislation. Similar legislation has passed both
    the House and Senate and a compromise version is expected to be enacted
    this year.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-9931-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
    1102      Treasury securities, par......          21             21            25             25
    1104      Agency securities, par........          25             22            22             22
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         134            154           171            189
    1206    Receivables, net................           9              8             8              9
    1207    Advances and prepayments........          25             34            37             42
          Other Federal assets:

    1801    Cash and other monetary assets..           3              5             5              6
    1803    Property, plant and equipment,
              net...........................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         218            245           269            293
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............           4              8            11             13
    2201  Non-Federal liabilities: Accounts
            payable.........................          70             80            87             96
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          74             88            98            109
        NET POSITION:
    3200  Invested capital..................         144            157           171            184
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         144            157           171            184
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         218            245           269            293
    -----------------------------------------------------------------------------------------------

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                      Federal National Mortgage Association

                                 portfolio programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2500-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Interest on borrowings from the
              public........................      17,309      19,274      21,336
    00.02   Other costs.....................       2,528       2,650       2,966
                                               ---------   ---------  ----------

    00.91     Total operating expenses......      19,837      21,924      24,302
          Capital investment:

    01.01   Mortgage purchases and loans....      48,715      64,644      68,737
    01.02   Lease-Purchase Discounts........        -386
                                               ---------   ---------  ----------

    01.91     Total capital investment......      48,329      64,644      68,737
                                               ---------   ---------  ----------

    10.00   Total obligations...............      68,166      86,568      93,039
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................     339,930     406,170     484,780
    22.00 New budget authority (gross)......     134,406     165,178     177,664
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......     474,336     571,348     662,444
    23.95 New obligations...................     -68,166     -86,568     -93,039
    24.47 Unobligated balance available, end
            of year: Authority to borrow....     406,170     484,780     569,405
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.10 Authority to borrow...............      96,335     144,115     153,791
    67.15 Net increase or decrease in
            unlimited borrowing authorities.      -2,950      -3,000      -3,000
                                               ---------   ---------  ----------

    [[Page 1132]]

    67.90   Authority to borrow (total).....      93,385     141,115     150,791
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      41,021      24,063      26,873
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................     134,406     165,178     177,664
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Corporate borrowing authority.      28,031      39,959      46,572
    72.90     Fund balance..................      35,687      24,215      13,431
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............      63,718      64,174      60,003
    73.10 New obligations...................      68,166      86,568      93,039
    73.20 Total outlays (gross).............     -67,710     -90,739     -91,470
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Corporate borrowing authority.      39,959      46,572      49,527
    74.90     Fund balance: Uninvested
                balance.....................      24,215      13,431      12,045
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................      64,174      60,003      61,572
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      41,021      24,063      26,813
    86.98 Outlays from permanent balances...      26,689      66,676      64,657
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      67,710      90,739      91,470
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -130        -130        -130
    88.40     Non-Federal sources...........     -40,897     -23,806     -26,616
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........     -41,027     -23,936     -26,746
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      93,379     141,242     150,918
    90.00 Outlays...........................      26,683      66,803      64,724
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2500-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      44,501      64,526      69,773
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      44,501      64,526      69,773
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........     221,766     250,374     282,065
          Disbursements:

    1231    Direct loan disbursements.......      44,574      63,686      67,815
    1232    Purchase of loans assets from
              the public....................       4,141         957         923
    1251  Repayments: Repayments and
            prepayments.....................     -18,418     -32,952     -35,536
    1264  Write-offs for default: Other
            adjustments, net................      -1,689
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........     250,374     282,065     315,267
    ---------------------------------------------------------------------------

        The Federal National Mortgage Association, (Fannie Mae) is a
    federally-chartered, privately-owned company with a public mission to
    play a leadership role in mortgage finance, to improve the liquidity of
    the residential mortgage market and increase the availability of
    mortgage credit to low-and moderate income families and areas
    underserved by private lending institutions. In carrying out its
    mission, Fannie Mae engages primarily in two forms of business:
    investing in portfolios of residential mortgages and guaranteeing
    residential mortgage securities. At the end of 1995, Fannie Mae held a
    net mortgage portfolio totaling over $250 billion and had outstanding
    guaranteed mortgage-backed securities of over $580 billion. Fannie Mae's
    portfolio purchases and MBS finance about one of every five mortgages in
    the country.
        Through a federal charter, Congress has equipped Fannie Mae with
    certain attributes to help it carry out its public mission and help
    lower the cost of homeownership for low- and moderate-income homebuyers.
    These include an exemption from state and local taxes (except real
    property taxes), an exemption of its debt and mortgage securities from
    Securities and Exchange Commission registration requirements, and
    potential access to U.S. Treasury funds. Fannie Mae's charter also
    prohibits the imposition of user fees. Fannie Mae pays federal income
    tax, however, over $1 billion in 1994. Securities guaranteed by Fannie
    Mae and debt issued by the company are solely the corporation's
    obligations and are not backed by the full faith and credit of the U.S.
    Government. The common stock of the corporation is owned by the public,
    if fully transferable, and trades on the New York, Midwest, and Pacific
    stock exchanges.
        Fannie Mae was established in 1938 to assist private markets in
    providing a steady supply of funds for housing. Fannie Mae was
    originally a subsidiary of the Reconstruction Finance Corporation and
    was permitted to purchase only loans insured by the Federal Housing
    Administration (FHA). In 1954, Fannie Mae was restructured as a mixed
    ownership (part government, part private) corporation. Congress sold the
    government's remaining interest in Fannie Mae in 1968 and completed the
    transformation to private shareholder ownership in 1970. Using the
    proceeds from the sale of subordinated debentures, Fannie Mae paid the
    Treasury $216 million for the government's preferred stock, which was
    retired, and for the Treasury's interest in the corporation's earned
    surplus. As a result, the corporation was taken off the federal budget.
        In 1992, Congress reaffirmed and clarified Fannie Mae's role in the
    housing finance system through charter act amendments included in the
    Federal Housing Enterprises Financial Safety and Soundness Act of 1992
    (``The Act''). Fannie Mae's charter purposes, as amended by the Act,
    are: ``to provide stability in the secondary market for residential
    mortgages; respond appropriately to the private capital market; provide
    ongoing assistance to the secondary market for residential mortgages
    (including activities relating to mortgages on housing for low- and
    moderate-income families involving a reasonable economic return that may
    be less than the return earned on other activities); and promote access
    to mortgage credit throughout the Nation (including central cities,
    rural areas, and underserved areas) by increasing the liquidity of
    mortgage investments and improving the distribution of investment
    capital for residential mortgage financing.''
        Overall, Fannie Mae's primary customers are low-, moderate-, or
    middle-income families. In 1995, over 26 percent of the one- to four-
    unit mortgages purchased had balances of $60,000 or less and the average
    mortgage purchased was about $95,000. Also, about 40 percent of the
    single-family mortgages and close to 97 percent of the multifamily
    mortgages purchased by Fannie Mae served families with incomes below the
    area median income. Over the last five years, Fannie Mae has directed
    almost $23 billion to local housing markets for financing multi-family
    housing.
        Nevertheless, the Act subjected Fannie Mae to specific affordable
    housing goals designed to improve the flow of mortgage funds to low- and
    moderate-income families in central cities, rural areas, and other
    underserved areas. On December 1, 1995, the U.S. Department of Housing
    and Urban Development (HUD) issued a final rule that sets the levels of
    the goals for 1996-2000 and establishes the requirements for counting
    mortgage purchases for meeting these goals. During the transition period
    prior to the issuance of the final regulation, Fannie Mae was subject to
    interim affordable housing goals. These interim goals required Fannie
    Mae to have 30 percent of the units it finances serve low-and moderate-
    income families and 30 percent of the units it finances in central
    cities. In 1995, Fannie Mae exceeded these goals with

    [[Page 1133]]
    about 45 percent of its financings made to low-and moderate-income
    families and 30.5 percent of its business located in central cities.
    Under the interim goals, Fannie Mae also was required to dedicate $4.6
    billion in financings for households with very low incomes or with low
    incomes living in low-income areas. Fannie Mae surpassed this goal with
    $8.2 billion of such loans in 1995.
        To help achieve these affordable housing goals, in 1994 Fannie Mae
    established its ``Showing America A New Way Home'' initiative designed
    to provide $1 trillion through the end of the decade to support
    affordable housing for families and communities most in need. In
    addition, the company selected 21 of the planned 25 Fannie Mae
    partnership offices around the country, which are working with lenders,
    local governments, nonprofit organizations, and neighborhood leaders to
    tailor affordable housing programs to each community's needs.
        The Act also established the Office of Federal Housing Enterprise
    Oversight (OFHEO), an independent office within HUD, headed by a
    Director who reports directly to the Congress. OFHEO is responsible for
    ensuring that Fannie Mae is adequately capitalized and operating in a
    safe and sound manner. Included among the express statutory authorities
    of the Director is the authority to conduct examinations of the
    financial health of the company and to issue minimum and risk-based
    capital standards. The minimum capital requirements are computed from
    statutorily established ratios that are applied to the assets and off-
    balance sheet risks of Fannie Mae. The risk-based capital standard
    determines the amount of capital that Fannie Mae must hold to withstand
    the impact of simultaneous adverse credit and interest rate stresses
    over a 10-year period, plus an additional amount to cover management and
    operations risk. Total capital (shareholder's equity plus allowance for
    loan losses) at the end of December 1995 was $11.8 billion. The company
    has continued to remain in compliance with applicable capital standards
    and has been deemed adequately capitalized by OFHEO since its first
    classification in June 1993.
        Fannie Mae has pursued its housing mission vigorously and
    productively while continuing to maintain its financial strength. It
    provides liquidity and stability to the mortgage market. It also passes
    on reduced mortgage interest rates to homebuyers--according to some
    studies between 25 and 50 basis points. Meanwhile, Fannie Mae has
    remained profitable. It earned net income of $2.14 billion in 1995, up
    slightly from the $2.13 billion earned a year earlier. Also, Fannie
    Mae's earnings included a special one-time charge for a financial
    restructuring plan that included stock repurchase plans totaling $1
    billion and a $350 million contribution to the Fannie Mae foundation for
    expanding homeownership. Absent this restructuring package, Fannie Mae's
    1995 earnings would have been just under $2.4 billion, with most of the
    increase coming from a $224 million increase net interest income on the
    Enterprise's retained portfolio.
        The forecast data contained in this material has been developed
    based on certain general economic assumptions prevalent in the fourth
    quarter of 1995 and should not be construed as an official forecast for
    Fannie Mae.
        Income and retained earnings for the years ended September 30, 1994
    and 1995 follow (in thousands of dollars):

                                              1994 actual     1995 actual
    Gross revenue...........................    17,756,900      21,408,700
    Gross expenses..........................    14,660,800      18,190,200
                                             -------------  --------------

      Income before Federal income tax......     3,096,100       3,218,500
    Federal income tax......................     1,023,400         930,100
                                             -------------  --------------

      Net income............................     2,072,700       2,288,400
    Retained earnings, beginning of year....     6,117,800       7,545,000
    Dividends on common stock...............     (645,500)       (710,400)
                                             -------------  --------------

      Retained earnings, end of year........     7,545,000       9,123,000
                                             -------------  --------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-2500-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         620            221
            Investments in US securities:
    1102      Treasury securities, par......          25             22
    1104      Other.........................      35,043         47,828        50,469         54,990
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Public: direct loans (net of
              discount).....................     206,555        231,960       265,119        298,730
    1602    Federal Agencies................       7,728          8,545         7,404          7,052
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -280           -287          -274           -277
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................     214,003        240,218       272,249        305,505
          Other Federal assets:

    1801    Cash and other monetary assets..       4,943          5,763         7,124          7,821
    1803    Property, plant and equipment,
              net...........................         172            177
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................     254,806        294,229       329,842        368,316
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         602            349
    2102    Accrued interest payable........       3,214          3,712         3,833          4,221
    2105    Other...........................           5              5
          Non-Federal liabilities:

    2203    Debt............................     239,320        277,192       309,896        345,761
    2204    Estimated Federal liability for
              loan guarantees, credit reform       2,304          2,028         3,342          3,607
    2206    Pension and other actuarial
              liabilities...................         199            157
    2207    Subtotal, Federal taxes payable.         -24             65
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............     245,620        283,508       317,071        353,589
        NET POSITION:
    3300  Cumulative results of operations..       9,186         10,721        12,771         14,727
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       9,186         10,721        12,771         14,727
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position     254,806        294,229       329,842        368,316
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2500-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................         198         335         354
    12.1  Civilian personnel benefits.......          92
    21.0  Travel and transportation of
            persons.........................          12          10          11
    23.3  Communications, utilities, and
            miscellaneous charges...........          11          12          12
    24.0  Printing and reproduction.........           6
    25.1  Advisory and assistance services..          99         104         110
    25.2  Other services....................       1,320       1,295       1,472
    26.0  Supplies and materials............           3
    31.0  Equipment.........................          67          70          74
    33.0  Investments and loans.............      48,329      64,644      68,737
    43.0  Interest and dividends............      18,029      20,098      22,269
                                               ---------   ---------  ----------

    99.9    Total obligations...............      68,166      86,568      93,039
    ---------------------------------------------------------------------------

                             mortgage-backed securities

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2501-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital investment: Commitments to
            issue MBS.......................     -51,497     129,045     129,247
                                               ---------   ---------  ----------

    10.00   Total obligations...............     -51,497     129,045     129,247
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......     -51,497     129,045     129,247
    23.95 New obligations...................      51,497    -129,045    -129,247
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Corporate borrowing authority.....    -104,554      58,802      54,203
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      53,057      70,243      75,043
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................     -51,497     129,045     129,247
    ----------------------------------------------------------------------------

    [[Page 1134]]

        Change in unpaid obligations:
    72.47 Unpaid obligations, start of year:
            Obligated balance: Corporate
            borrowing authority.............     255,245     114,618     114,618
    73.10 New obligations...................     -51,497     129,045     129,247
    73.20 Total outlays (gross).............     -89,130    -129,045    -129,247
    74.47 Unpaid obligations, end of year:
            Obligated balance: Corporate
            borrowing authority.............     114,618     114,618     114,618
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      53,057      70,243      75,043
    86.98 Outlays from permanent balances...      36,073      58,802      54,203
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      89,130     129,045     129,247
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -53,057     -70,243     -75,043
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................    -104,554      58,802      54,204
    90.00 Outlays...........................      36,073      58,802      54,204
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2501-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................     -51,497     129,045     129,247
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...     -51,497     129,045     129,247
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........     523,512     559,585     618,387
    1231  Disbursements: Direct loan
            disbursements...................      89,130     129,045     129,247
    1251  Repayments: Repayments and
            prepayments.....................     -53,057     -70,243     -75,043
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........     559,585     618,387     672,591
    ---------------------------------------------------------------------------

        According to accounting practices for private corporations, the
    mortgages in the pools of loans supporting the mortgage-backed
    securities are considered to be owned by the holders of these
    securities. Consequently, on the books of the Federal National Mortgage
    Association (Fannie Mae), these mortgages are not considered assets and
    the securities outstanding are not considered liabilities. However, the
    concepts of the budget of the U.S. Government consider these mortgages
    and mortgage-backed securities to be assets and liabilities,
    respectively, of Fannie Mae. For the purposes of this document,
    therefore, they are presented as assets and liabilities in the
    accompanying schedules. On the schedule of Status of direct loans for
    mortgage-backed securities, the items labeled ``New loans'' and
    ``Recoveries: Repayments and prepayments'' are budgetary terms. However,
    from the Corporation's perspective, these items are ``Amounts issued''
    and ``Amounts passed through to the holders of securities'',
    respectively.
        The forecast data contained in this material has been developed
    based on certain general economic assumptions prevalent in November 1993
    and should not be construed as an official forecast of the Corporation's
    position.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-2501-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Direct loans, gross.............     524,052        560,107       618,887        673,092
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -540           -522          -500           -502
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................     523,512        559,585       618,387        672,590
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................     523,512        559,585       618,387        672,590
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............     523,512        559,585       618,387        672,590
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............     523,512        559,585       618,387        672,590
    -----------------------------------------------------------------------------------------------

                     Federal Home Loan Mortgage Corporation

                                 portfolio programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4420-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Interest expense and provision
              for loan loss.................       6,702       7,698       9,755
    00.02   Administration..................         390         424         461
                                               ---------   ---------  ----------

    00.91     Total operating expenses......       7,092       8,122      10,216
    01.01 Capital investment: Mortgage
            purchases for portfolio.........      37,389      48,876      41,615
                                               ---------   ---------  ----------

    10.00   Total obligations...............      44,481      56,998      51,831
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................      21,957      21,989      18,642
    22.00 New budget authority (gross)......      48,607      65,547      72,335
    22.60 Redemption of debt................      -4,094     -11,896     -12,162
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      66,470      75,640      78,815
    23.95 New obligations...................     -44,481     -56,998     -51,831
    24.47 Unobligated balance available, end
            of year: Authority to borrow....      21,989      18,642      26,984
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Net change in borrowing
            authorities.....................      30,740      33,143      41,254
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      17,867      32,404      31,081
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................      48,607      65,547      72,335
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.47 Unpaid obligations, start of year:
            Obligated balance: Authority to
            borrow..........................       5,281       6,897       2,605
    73.10 New obligations...................      44,481      56,998      51,831
    73.20 Total outlays (gross).............     -42,865     -61,290     -52,327
    74.47 Unpaid obligations, end of year:
            Obligated balance: Authority to
            borrow..........................       6,897       2,605       2,109
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      17,867      32,404      31,081
    86.98 Outlays from permanent balances...      24,998      28,886      21,247
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      42,865      61,290      52,327
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -17,867     -26,421     -29,007
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      30,740      39,126      43,328
    90.00 Outlays...........................      24,998      34,869      23,320
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4420-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      37,389      48,876      41,615
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      37,389      48,876      41,615
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      66,679      95,052     127,554

    [[Page 1135]]

    1231  Disbursements: Direct loan
            disbursements...................      37,389      48,876      41,615
    1251  Repayments: Repayments and
            prepayments.....................      -9,016     -16,374     -16,761
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........      95,052     127,554     152,408
    ---------------------------------------------------------------------------

        Federal Home Loan Mortgage Corporation, (Freddie Mac) is a
    federally-charted, private shareholder-owned company with a public
    mission to improve the liquidity of the residential mortgage market and
    increase the availability of mortgage credit to low- and moderate-income
    families and areas underserved by private lending institutions. In
    carrying out its mission, Freddie Mac engages primarily in two forms of
    business: investing in portfolios of residential mortgages and
    guaranteeing residential mortgage securities. At the end of 1995,
    Freddie Mac held a net mortgage portfolio totaling over $107 billion and
    had outstanding guaranteed mortgage-backed securities of just under $460
    billion.
        Through a federal charter, Congress has equipped Freddie Mac with
    certain advantages over wholly private firms in carrying out these
    activities. These advantages include an exemption from state and local
    taxes (except real property taxes), an exemption for their debt and
    mortgage securities from SEC filing registration requirements, and a
    potential access to U.S. Treasury funds. Freddie Mac does pay federal
    income tax, however, and securities guaranteed by Freddie Mac and debt
    issued by the company are not backed by the full faith and credit of the
    U.S. Government. The common stock of the corporation is owned by the
    public, is fully transferable, and trades on the New York and Pacific
    stock exchanges.
        Freddie Mac was established in 1970 under the Emergency Home Finance
    Act. Congress chartered Freddie Mac to provide mortgage lenders with an
    organized national secondary market enabling them to manage their
    conventional mortgage portfolio more effectively and gain indirect
    access to a ready source of additional funds to meet new demands for
    mortgages. Freddie Mac served as a conduit facilitating the flow of
    investment dollars from the capital markets to mortgage lenders, and
    ultimately, to homebuyers increasing the amount of mortgage credit
    available and making it more affordable.
        The Financial Institutions Reform, Recovery, and Enforcement Act of
    1989 (FIRREA) significantly changed the corporate governance of Freddie
    Mac. The company's three member Board of Directors, which had
    corresponded with the Federal Home Loan Bank Board, was replaced with an
    eighteen member Board of Directors. Thirteen board members are elected
    annually by shareholders and five are annually appointed by the
    President of the United States. In addition, FIRREA converted Freddie
    Mac's 60 million shares of non-voting, senior participating preferred
    stock into voting common stock. As a result, the corporation was taken
    off the federal budget.
        FIRREA also clarified Freddie Mac's role in the housing finance
    delivery system through amendments to its charter act. Specifically,
    FIRREA established Freddie Mac's public mission: ``to provide stability
    in the secondary market for residential mortgages; respond appropriately
    to the private capital market; provide ongoing assistance to the
    secondary market for residential mortgages (including activities
    relating to mortgages on housing for low- and moderate-income families
    involving a reasonable economic return that may be less than the return
    earned on other activities); and promote access to mortgage credit
    throughout the Nation (including central cities, rural areas, and
    underserved areas) by increasing the liquidity of mortgage investments
    and improving the distribution of investment capital for residential
    mortgage financing.''
        The Federal Housing Enterprises Financial Safety and Soundness Act
    of 1992 (``The Act'') added to Freddie Mac's public mission by
    introducing new affordable housing goals that are designed to improve
    the flow of mortgage funds to low- and moderate-income families in
    central cities, rural areas, and other underserved areas. On December 1,
    1995, the U.S. Department of Housing and Urban Development (HUD) issued
    a final rule that sets the levels of the goals for 1996-1999 and
    establishes the requirements for counting mortgage purchases for meeting
    these goals. During the transition period prior to the issuance of the
    final regulation, Freddie Mac was subject to interim affordable housing
    goals. These interim goals required Freddie Mac to have 30 percent of
    the units it finances serve low- and moderate-income families and 30
    percent of the units it finances in central cities. In 1995, Freddie Mac
    purchased about 39 percent of its financings from low- and moderate-
    income families and 23 percent of its business was located in central
    cities. Under the interim goals, Freddie Mae also was required to
    dedicate $3.357 billion in financings for households with very low
    incomes or with low incomes living in low-income areas. Freddie Mac
    achieved this goal with $5.426 billion of such loans in 1995.
        The Act also enhanced the regulatory oversight of Freddie Mac by
    establishing the Office of Federal Housing Enterprise Oversight (OFHEO),
    an independent office within HUD, headed by a Director who reports
    directly to the Congress. OFHEO is responsible for ensuring that Freddie
    Mac is adequately capitalized and operating in a safe and sound manner.
    Included among the express statutory authorities of the Director is the
    authority to conduct examinations of the financial health of the company
    and to issue minimum and risk-based capital standards. The minimum
    capital requirements are computed from statutorily established ratios
    that are applied to the assets and off-balance sheet risks of Freddie
    Mac. The risk-based capital standard determines the amount of capital
    that Freddie Mac must hold to withstand the impact of simultaneous
    adverse credit and interest rate stresses over a 10-year period, plus an
    additional amount to cover management and operations risk.
        Meanwhile, Freddie Mac has remained profitable. Freddie Mac recorded
    net income of $1.09 billion in 1995, an 11 percent increase over 1994
    earnings of $983 million. Most of Freddie's increased earnings in 1995
    came from a $284 million increase in net interest income as Freddie's
    retained portfolio surged by almost 50 percent during the year to pass
    the $100 billion mark in the fourth quarter. While accepting and
    managing higher interest rate risk, Freddie Mac has expanded its
    investments in retained mortgages from only $34 billion in 1992 to $107
    billion at the end of 1995 in an effort to generate higher overall
    returns.
        The forecast data contained in this material represent estimates and
    should not be construed as an official forecast of the corporation's
    future position. The data have been developed on the basis of certain
    economic assumptions that are reviewed and revised periodically.
    Consequently, the estimates are subject to forecast error and will
    normally differ from actual data when these become available.
        According to generally accepted accounting principles utilized by
    private corporations, the mortgages in the pools of loans supporting PCs
    are considered to be owned by the holder of these securities. Therefore,
    Freddie Mac does not show these mortgages as assets. However, the budget
    philosophy of the United States Government includes these mortgages and
    mortgages pass-through securities as assets and liabilities,
    respectively, of Freddie Mac. For the purpose of this document,
    therefore, they are presented as assets and liabilities in the
    accompanying schedules. On the Status of Direct Loans schedule for
    mortgage pass-through securities, the items labeled ``Disbursements''
    and ``Repayments'' are budgetary terms. However, from Freddie Mac's
    perspective, these amounts represent ``Sales of PCs'' and ``Amounts
    passed through to PC holders,'' respectively.

    [[Page 1136]]

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4420-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       6,439          8,623
    0102  Expense...........................      -5,504         -7,571
                                            ------------ --------------  ------------  -------------
    0109  Net income........................         935          1,052
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4420-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................      11,688          2,820         4,001          2,983
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............       2,443          2,150         2,630          2,700
    1206    Receivables, net................       2,720          3,680         6,986          7,420
          Other Federal assets:

    1801    Cash and other monetary assets..      13,095         23,916        14,616         23,409
    1802    Inventories and related
              properties....................      66,393         94,875       126,718        151,297
    1803    Property, plant and equipment,
              net...........................       1,368          1,212         1,174          1,181
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      97,707        128,653       156,125        188,990
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          95             73
          Non-Federal liabilities:

    2201    Accounts payable................         437            452
    2202    Interest payable................         734          1,090
    2203    Debt............................      83,946        111,610       141,129        173,085
    2207    Other...........................       7,516          9,725         8,547          8,484
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      92,728        122,950       149,676        181,569
        NET POSITION:
    3200  Invested capital..................       4,979          5,703         6,448          7,420
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       4,979          5,703         6,448          7,420
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      97,707        128,653       156,124        188,989
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4420-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................         184         200         219
    12.1  Civilian personnel benefits.......          59          64          70
    21.0  Travel and transportation of
            persons.........................           9          10          11
    23.3  Communications, utilities, and
            other rent......................          32          35          38
    24.0  Printing and reproduction.........           3           3           4
    25.2  Other services....................          91          99         105
    26.0  Supplies and materials............          12          13          14
    33.0  Mortgage purchases for portfolio..      37,389      48,876      41,615
    43.0  Interest and provision for loan
            losses..........................       6,702       7,698       9,755
                                               ---------   ---------  ----------

    99.9    Total obligations...............      44,481      56,998      51,831
    ---------------------------------------------------------------------------

                             mortgage-backed securities

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4440-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital investment: Issue (sales)
            of participation certification..      70,071     110,877     108,540
                                               ---------   ---------  ----------

    10.00   Total obligations...............      70,071     110,877     108,540
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      70,071     110,877     108,540
    23.95 New obligations...................     -70,071    -110,877    -108,540
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Corporate borrowing authority (net
            PC pool change).................      -6,626      21,017      30,493
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      76,697      89,860      78,047
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................      70,071     110,877     108,540
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................      70,071     110,877     108,540
    73.20 Total outlays (gross).............     -70,071    -110,877    -108,540
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      70,071     110,877     108,540
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      70,071     110,877     108,540
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -76,697     -89,860     -78,047
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -6,626      21,017      30,493
    90.00 Outlays...........................      -6,626      21,017      30,493
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4440-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      70,071     110,877     108,540
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      70,071     110,877     108,540
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........     463,672     457,046     478,063
    1231  Disbursements: Direct loan
            disbursements...................      70,071     110,877     108,540
    1251  Repayments: Repayments and
            prepayments.....................     -76,697     -89,860     -78,047
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........     457,046     478,063     508,556
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4440-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1901  Other Federal assets: Other assets     463,672        457,046       478,063        508,556
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................     463,672        457,046       478,063        508,556
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............     463,672        457,046       478,063        508,556
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............     463,672        457,046       478,063        508,556
    -----------------------------------------------------------------------------------------------

                               FARM CREDIT SYSTEM

        The Farm Credit System is a government sponsored enterprise that
    provides privately financed credit to agricultural and rural
    communities. The major functional entities of the system are: (1) Banks
    for Cooperatives (BC), (2) Agricultural Credit Bank (ACB), (3) Farm
    Credit Banks (FCB), and (4) direct lender associations. The history and
    specific functions of the bank entities are discussed after the
    presentation of financial schedules for each bank entity. As part of the
    Farm Credit System (FCS), these entities are regulated and examined by
    the Farm Credit Administration (FCA), an independent Federal agency. The
    administrative costs of FCA are currently financed by assessments of
    system institutions. System banks finance loans primarily from sales of
    bonds to the public and their own capital funds. The system bonds issued
    by the banks are not guaranteed by the U.S. Government either as to
    principal or interest. The bonds are backed by an insurance fund,
    administered by the Farm Credit System Insurance Corporation (FCSIC), an
    independent Federal agency that collects insurance premiums from member
    banks to pay its administrative expenses and fund insurance reserves.
    All of the banks' current operating expenses are paid from their own
    income and do not require budgetary resources from the Federal
    Government. Limited Federal assistance is provided to support interest
    payments on special FCS Finan

    [[Page 1137]]
    cial Assistance Corporation (FAC) debt obligations (see discussion of
    FAC elsewhere in this document).

                             Banks for Cooperatives

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4120-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Administrative expenses.........           5           6           7
    00.02   Interest on borrowings..........         126         148         141
    00.03   Insurance premiums..............           3           3           3
    00.04   Provision for loan losses.......           3           3           3
    00.06   Income tax expense..............           4           4           5
    00.07   Other expenses..................           7           8           9
                                               ---------   ---------  ----------

    00.91     Total operating expenses......         148         172         168
    01.01 Capital investment: Direct loans..       8,690       9,976      10,076
                                               ---------   ---------  ----------

    10.00   Total obligations...............       8,838      10,148      10,244
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................       2,130       2,309       2,100
    22.00 New budget authority (gross)......       9,017       9,983      10,082
    22.60 Redemption of debt................                     -44         -32
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      11,147      12,248      12,150
    23.95 New obligations...................      -8,838     -10,148     -10,244
    24.47 Unobligated balance available, end
            of year: Authority to borrow....       2,309       2,100       1,906
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Net borrowing.....................         759
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............       8,258       9,983      10,082
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       9,017       9,983      10,082
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................       8,838      10,148      10,244
    73.20 Total outlays (gross).............      -8,838     -10,148     -10,244
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       8,838       9,983      10,082
    86.98 Outlays from permanent balances...                     165         162
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       8,838      10,148      10,244
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....      -8,258      -9,983     -10,082
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         759
    90.00 Outlays...........................         580         165         162
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4120-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       8,690       9,976      10,076
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...       8,690       9,976      10,076
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,654       2,273       2,478
    1231  Disbursements: Direct loan
            disbursements...................       8,690       9,976      10,076
    1251  Repayments: Repayments and
            prepayments.....................      -8,071      -9,771      -9,868
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........       2,273       2,478       2,686
    ---------------------------------------------------------------------------
        Note.--Direct loan balances exclude nonaccrual loans and sales
    contracts.

        Pursuant to the Agricultural Credit Act of 1987, stockholders in 11
    of 13 Banks for Cooperatives voted in 1988 to merge into a single
    National Bank for Cooperatives. On January 1, 1995, the Springfield Bank
    for Cooperatives also merged with other entities, as discussed below, to
    form the first Agricultural Credit Bank. The remaining Cooperative
    entity, the St. Paul Bank for Cooperatives, is independently chartered
    to provide credit and related services, nationwide, to eligible
    cooperatives primarily engaged in farm supply, grain, marketing and
    processing (including sugar and dairy.) Loans are also made to rural
    utilities, including telecommunications companies. The financial
    schedules below reflect the operations of the St. Paul Bank for
    Cooperatives. Loans are made for both seasonal and long-term needs.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4120-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Total interest income.............         120            177           205            201
    0102  Total interest expense............         -80           -127          -148           -141
                                            ------------ --------------  ------------  -------------
    0109  Net interest income...............          40             50            57             60
    0111  Other income......................           8             10             8             13
    0112  Other expenses....................         -19            -21           -24            -27
                                            ------------ --------------  ------------  -------------
    0119  Net income........................         -11            -11           -16            -14
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................         128            187           213            214
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................         -99           -148          -172           -168
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................          29             39            41             46
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4120-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201    Cash and investment securities..         236            394           397            428
    1206    Accrued interest receivable on
              loans.........................          27             40            44             49
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Direct loans, gross.............       1,687          2,305         2,320          2,271
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -21            -24           -25            -29
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,666          2,281         2,295          2,242
    1803  Other Federal assets: Property,
            plant and equipment, net........          68             71            70             79
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,997          2,786         2,806          2,798
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          26             28            49             36
          Non-Federal liabilities:

            Accounts payable:
    2201      Consolidated systemwide and
                other bank bonds............       1,093          1,329         1,194          1,175
    2201      Consolidated systemwide notes.         643          1,166         1,257          1,244
    2201      Notes payable and other
                interest-bearing liabilities
    2202    Accrued interest payable........          12             17            31             31
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,774          2,540         2,531          2,486
        NET POSITION:
    3300  Cumulative results of operations..         223            246           275            312
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         223            246           275            312
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,997          2,786         2,806          2,798
    -----------------------------------------------------------------------------------------------
        Note.--Loans to cooperatives include nonaccrual loans and sales
    contracts.

                       Statement of Changes in Net Worth (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code    99-4120-0-3-351   1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    Beginning balance of net worth..........         208            224           246            275
                                            ============ ==============  ============  =============

      Capital stock and participations
        issued..............................           8              4             9             10
      Capital stock and participations
        retired.............................         -14            -11           -11             -8
      Surplus retired.......................
      Net income............................          30             39            40             46
      Cash/Dividends/Patronage Distributions          -7            -10            -9            -10
      Other, net............................          -1
                                            ------------ --------------  ------------  -------------
    Ending balance of net worth.............         224            246           275            313
    -----------------------------------------------------------------------------------------------

    [[Page 1138]]

                  Financing Activities (in millions of dollars)

        --------------------------------------------------------------------
    Identification code 99-4120-0-3-351         1994 actual     1995 actual      1996 est.      1997 est.
        --------------------------------------------------------------------
    Beginning balance of outstanding system
      obligation............................            1,573 1,699                    2,458           2,451
                                               ==============  ==============  =============  ==============

      Consolidated systemwide and other bank
        bonds issued........................            1,186           1,524          2,213           2,206
      Consolidated systemwide and other bank
        bonds retired.......................           -1,141          -1,287         -2,312          -2,226
      Consolidated systemwide notes, net....               81             523             92             -14
                                               --------------  --------------  -------------  --------------

    Ending balance of outstanding system
      obligations...........................            1,699 2,458                    2,451           2,419
    -------------------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4120-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Personnel compensation and
              benefits......................           4           5           6
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..           4           5           6
    23.2  Cost of space occupied and
            equipment.......................           1           1           1
    25.2  Other services....................           3           3           3
    33.0  Investments and loans.............       8,690       9,976      10,075
    43.0  Interest and dividends............         127         148         142
    92.0  Undistributed expenses............          13          15          17
                                               ---------   ---------  ----------

    99.9    Total obligations...............       8,838      10,148      10,244
    ---------------------------------------------------------------------------

                            Agricultural Credit Banks

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4130-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Administrative expenses.........          49          37          39
    00.02   Interest on borrowings..........         902       1,097       1,148
    00.03   Insurance premiums..............          14          14          15
    00.04   Provision for loan losses.......          14          11          10
    00.06   Income tax expense..............           9          24          25
    00.07   Other expenses..................          89          63          66
                                               ---------   ---------  ----------

    00.91     Total operating expenses......       1,077       1,246       1,303
    01.01 Capital investment: direct loans..      42,644      44,000      45,000
                                               ---------   ---------  ----------

    10.00   Total obligations...............      43,721      45,246      46,303
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................       2,211       2,548       2,571
    22.00 New budget authority (gross)......      44,058      45,269      46,531
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      46,269      47,817      49,102
    23.95 New obligations...................     -43,721     -45,246     -46,303
    24.47 Unobligated balance available, end
            of year: Authority to borrow....       2,548       2,571       2,799
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Net borrowing.....................       1,584         464         884
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      42,474      44,805      45,647
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................      44,058      45,269      46,531
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         326         332         332
    73.10 New obligations...................      43,721      45,246      46,303
    73.20 Total outlays (gross).............     -43,715     -45,246     -46,303
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance:
            Uninvested balance..............         332         332         332
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      43,715      45,245      46,303
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      43,715      45,246      46,303
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -42,474     -44,805     -45,647
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,584         464         884
    90.00 Outlays...........................       1,241         441         656
    ---------------------------------------------------------------------------
        On January 1, 1995, the National Bank for Cooperatives, the
    Springfield Bank for Cooperatives, and the Farm Credit Bank of
    Springfield consolidated to form on Agricultural Credit Bank (ACB),
    known as CoBank ACB. This bank is headquartered in Denver, Colorado and
    serves eligible cooperatives nationwide, and provides funding to
    Agricultural Credit Associations (ACAs) in one of its regions. An ACB
    operates under statutory authority that combines the authorities of a
    FCB and a BC. In exercising its FCB authority, CoBank ACB's charter
    limits its lending to ACAs located in the region previously served by
    the Farm Credit Bank of Springfield. As an entity lending to
    Cooperatives, CoBank engages in the same business activities as the St.
    Paul Bank and it provides international loans for the financing of
    agricultural exports.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4130-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      42,644      44,000      45,000
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      42,644      44,000      45,000
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      12,874      14,231      14,800
    1231  Disbursements: Direct loan
            disbursements...................      42,638      44,000      45,000
    1251  Repayments: Repayments and
            prepayments.....................     -41,281     -43,427     -44,196
    1263  Write-offs for default: Direct
            loans...........................                      -4          -4
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........      14,231      14,800      15,600
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4130-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Total interest income.............                      1,171         1,368          1,441
    0102  Total interest expense............                       -902        -1,097         -1,148
                                            ------------ --------------  ------------  -------------
    0109  Net interest income...............                        269           271            293
    0111  Other income......................                         23            10              9
    0112  Other expense.....................                       -175          -148           -155
                                            ------------ --------------  ------------  -------------
    0119  Net income........................                       -152          -138           -146
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................                      1,194         1,378          1,450
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................                     -1,077        -1,245         -1,303
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................                        117           133            147
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4130-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201    Cash and investment securities..       2,301          2,652         2,600          2,750
    1206    Accrued interest receivable on
              loans.........................         139            165           172            181
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Direct loans, gross.............      12,878         14,237        14,800         15,600
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -154           -170          -175           -181
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      12,724         14,067        14,625         15,419
    1803  Other Federal assets: Property,
            plant and equipment, net........         244            131           159            159
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      15,408         17,015        17,556         18,509

    [[Page 1139]]

        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............         128            142           145            145
          Non-Federal liabilities:

            Accounts payable:
    2201      Consolidated systemwide and
                other bank bonds............       8,567         10,805        10,882         11,045
    2201      Consolidated systemwide notes.       5,401          4,717         5,110          5,837
    2201      Notes payable and other
                interest-bearing liabilities          24             12            20             20
    2202    Accrued interest payable........          77            126           126            127
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      14,197         15,802        16,283         17,174
        NET POSITION:
    3200  Invested capital..................       1,211          1,213         1,273          1,335
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,211          1,213         1,273          1,335
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      15,408         17,015        17,556         18,509
    -----------------------------------------------------------------------------------------------

                       Statement of Changes in Net Worth (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4130-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    Beginning balance of net worth..........       1,174          1,210         1,213          1,273
                                            ============ ==============  ============  =============

      Capital stock and participations
        issued..............................          28              7            25             25
      Capital stock and participations
        retired.............................         -62            -52           -65            -75
      Surplus retired.......................
      Net income............................         119            117           132            148
      Cash/Dividends/Patronage Distributions         -25            -32           -33            -35
      Other, net............................         -23            -36
                                            ------------ --------------  ------------  -------------
    Ending balance of net worth.............       1,210          1,213         1,273          1,336
    -----------------------------------------------------------------------------------------------

                  Financing Activities (in millions of dollars)

        --------------------------------------------------------------------
    Identification code 99-4130-0-3-351         1994 actual     1995 actual      1996 est.      1997 est.
        --------------------------------------------------------------------
    Beginning balance of outstanding system
      obligations...........................           13,567 13,736
                                                                                      15,319          15,784
                                               ==============  ==============  =============  ==============

      Consolidated systemwide and other bank
        bonds issued........................            6,945           7,768          7,700           7,900
      Consolidated systemwide and other bank
        bonds retired.......................           -6,562          -5,505         -7,626          -7,741
      Consolidated systemwide notes, net....             -214            -679            390             725
                                               --------------  --------------  -------------  --------------

    Ending balance of outstanding system
      obligations...........................           13,736 15,319
                                                                                      15,784          16,668
    -------------------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4130-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    12.1  Personnel compensation and
            benefits........................          42          31          33
    23.2  Cost of space occupied and
            equipment.......................           7           6           6
    25.2  Other services....................          14          14          15
    33.0  Investments and loans.............      42,644      44,000      45,000
    43.0  Interest and dividends............         902       1,098       1,148
    92.0  Undistributed expenses............         112          97         101
                                               ---------   ---------  ----------

    99.9    Total obligations...............      43,721      45,246      46,303
    ---------------------------------------------------------------------------

                                Farm Credit Banks

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4160-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Administrative expenses.........         107         105         105
    00.02   Interest on borrowings..........       2,302       2,387       2,490
    00.03   Insurance premiums..............          13          12          11
    00.04   Provision for loan losses.......         -25           4           4
    00.05   Losses/gains on property........          -7          -2
    00.06   Other expenses..................         273         195         169
                                               ---------   ---------  ----------

    00.91     Total operating expenses......       2,663       2,701       2,779
    01.01 Capital investment: Direct loans..      22,036      22,103      22,437
                                               ---------   ---------  ----------

    10.00   Total obligations...............      24,699      24,804      25,216
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................       6,660       6,161       6,083
    22.00 New budget authority (gross)......      24,744      24,986      25,482
    22.60 Redemption of debt................        -544        -260        -562
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      30,860      30,887      31,003
    23.95 New obligations...................     -24,699     -24,804     -25,216
    24.47 Unobligated balance available, end
            of year: Authority to borrow....       6,161       6,083       5,787
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............      24,744      24,986      25,482
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         382         771         825
    73.10 New obligations...................      24,699      24,804      25,216
    73.20 Total outlays (gross).............     -24,310     -24,750     -25,091
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance:
            Uninvested balance..............         771         825         950
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      24,310      24,750      25,091
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      24,310      24,750      25,091
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....     -24,744     -24,986     -25,482
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -434        -236        -391
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4160-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      22,036      22,103      22,436
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...      22,036      22,103      22,436
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      36,190      36,535      37,103
    1231  Disbursements: Direct loan
            disbursements...................      22,036      22,492      22,880
    1251  Repayments: Repayments and
            prepayments.....................     -21,689     -21,930     -22,340
    1263  Write-offs for default: Direct
            loans...........................          -2           6           2
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........      36,535      37,103      37,645
    ---------------------------------------------------------------------------
        Note.--Loans outstanding at end of year do not include nonaccrual
    loans and sales contracts.

        The Agricultural Credit Act of 1987 (1987 Act) required the Federal
    Land Banks (FLBs) and Federal Intermediate Credit Banks (FICBs) to merge
    into a Farm Credit Bank (FCB) in each of the 12 Farm Credit districts.
    The FCBs operate under statutory authority that combines the prior
    authorities of the FLB and the FICB. No merger occurred in the Jackson
    district in 1988 because the FLB was in receivership. Pursuant to
    section 410(e) of the 1987 Act, as amended by the Farm Credit Banks
    Safety and Soundness Act of 1992, the FICB of Jackson merged with the
    FCB of Columbia on October 1, 1993. Mergers and consolidations of FCBs
    across district lines, that began in 1992 continued through mid-1995. As
    a result of this restructuring activity, 6 FCBs headquartered in the
    following cities, remain: AgFirst FCB, Columbia, South Carolina;
    AgAmerica FCB, Spokane, Washington; AgriBank FCB, St. Paul, Minnesota;
    FCB of Wichita, Wichita, Kansas; FCB of Texas, Austin, Texas; and
    Western FCB, Sacramento, California.
        The FCBs serve as discount banks and as of January 1, 1996 provided
    funds to 32 Federal Land Credit Associations (FLCA), 66 Production
    Credit Associations (PCAs), and 60 Agricultural Credit Associations
    (ACAs). These direct lender associations, in turn, make short-term
    production loans (PCAs

    [[Page 1140]]
    and ACAs) and long-term real estate loans (FLCAs and ACAs) to eligible
    farmers and ranchers. Also, as of January 1, 1996, 70 Federal Land Bank
    Associations originated and serviced long-term real estate loans for 2
    of the 6 FCBs that have no affiliated FLCAs. FCBs can also lend to local
    financing institutions, including commercial banks, as authorized by the
    Farm Credit Act of 1971, as amended.
        All the capital stock of the FICB's, from organization in 1923 to
    December 31, 1956, was held by the U.S. Government. The 1956 Act
    provided a long-range plan for the eventual ownership of the credit
    banks by the production credit associations and the gradual retirement
    of the Government's investment in the banks. This retirement was
    accomplished in full on December 31, 1968. The last of the Government
    capital that had been invested in the FLB's was repaid in 1947.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4160-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Total interest income.............       2,547          3,011         3,041          3,126
    0102  Total interest expense............      -1,731         -2,302        -2,387         -2,490
                                            ------------ --------------  ------------  -------------
    0109  Net interest income...............         816            709           654            636
    0111  Other income......................          50             44            15             16
    0112  Other expenses....................        -531           -361          -313           -289
                                            ------------ --------------  ------------  -------------
    0119  Net income........................        -481           -317          -298           -273
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................       2,597          3,055         3,056          3,142
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................      -2,262         -2,663        -2,700         -2,779
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................         335            392           356            363
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4160-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201    Cash and investment securities..       6,300          6,708         6,804          7,080
    1206    Accrued Interest Receivable.....         731            810           685            707
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601    Direct loans, gross.............      36,366         36,659        37,080         37,602
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -627           -548          -477           -477
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      35,739         36,111        36,603         37,125
    1803  Other Federal assets: Property,
            plant and equipment, net........         464            402           384            406
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      43,234         44,031        44,476         45,318
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............         273            276           243            258
          Non-Federal liabilities:

            Accounts payable:
    2201      Consolidated systemwide and
                other bank bonds............      27,706         28,532        28,702         29,851
    2201      Consolidated systemwide notes.      10,342         10,060        10,150          9,563
    2201      Notes payable and other
                interest-bearing liabilities         567            597           704            811
    2202    Accrued interest payable........         382            437           465            479
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      39,270         39,902        40,264         40,962
        NET POSITION:
    3200  Invested capital..................       3,964          4,129         4,212          4,356
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       3,964          4,129         4,212          4,356
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      43,234         44,031        44,476         45,318
    -----------------------------------------------------------------------------------------------

                       Statement of Changes in Net Worth (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4160-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    Beginning balance of net worth..........       4,007          3,964         4,129          4,212
                                            ============ ==============  ============  =============

      Capital stock and participations
        issued..............................         128             37           295             64
      Capital stock and participations
        retired.............................         409            121           104             48
      Surplus retired.......................
      Net income............................         336            392           356            362
      Cash/Dividends/Patronage Distributions         -65           -146          -463           -235
      Other, net............................         -33              3
                                            ------------ --------------  ------------  -------------
    Ending balance of net worth.............       3,964          4,129         4,212          4,356
    -----------------------------------------------------------------------------------------------

                  Financing Activities (in millions of dollars)

        --------------------------------------------------------------------
    Identification code 99-4160-0-3-371         1994 actual     1995 actual      1996 est.      1997 est.
        --------------------------------------------------------------------
    Beginning balance of outstanding system
      obligations...........................           37,377 38,119
                                                                                      39,041          39,775
                                               ==============  ==============  =============  ==============

      Consolidated systemwide and other bank
        bonds issued........................           29,655          53,468         36,089          36,435
      Consolidated systemwide and other bank
        bonds retired.......................          -28,861         -52,831        -33,634         -34,696
      Consolidated systemwide notes, net....              -93             143         -1,721            -655
                                               --------------  --------------  -------------  --------------

    Ending balance of outstanding system
      obligations...........................           38,119 39,041
                                                                                      39,775          40,858
    -------------------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4160-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          85          83          84
    23.2  Cost of space occupied and
            equipment.......................          22          22          21
    25.2  Other services....................          13          12          11
    33.0  Investments and loans.............      22,036      22,103      22,437
    43.0  Interest and dividends............       2,302       2,387       2,490
    92.0  Undistributed expenses............         241         196         172
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............      24,699      24,804      25,216
    ---------------------------------------------------------------------------

                    Federal Agricultural Mortgage Corporation

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4180-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expenses and taxes.           3           5           6
                                               ---------   ---------  ----------

    10.00   Total obligations...............           3           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.47 Unobligated balance available,
            start of year: Authority to
            borrow..........................          12          11          10
    22.00 New budget authority (gross)......           3           4           7
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          15          15          17
    23.95 New obligations...................          -3          -5          -6
    24.47 Unobligated balance available, end
            of year: Authority to borrow....          11          10          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           3           4           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           3           5           6
    73.20 Total outlays (gross).............          -3          -5          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           3           4           6
    86.98 Outlays from permanent balances...                       1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           3           5           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3          -4          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                       1          -1
    ---------------------------------------------------------------------------

    [[Page 1141]]

        Farmer Mac was established by the Agricultural Credit Act of 1987
    (the Act) to facilitate creation of a secondary market for farm and
    rural housing mortgage loans that meet minimum credit standards. As
    authorized by the Act, Farmer Mac guarantees securities formed by
    certified loan pooling institutions. In addition, the Farmer Mac title
    of the Act was amended by the 1990 farm bill to authorize Farmer Mac to
    purchase, pool, and securitize the guaranteed portions of Farmers Home
    Administration (FmHA) guaranteed farmer program loans. These two areas
    of secondary market authority have been organized by Farmer Mac into two
    distinct programs designated as ``Farmer Mac I'' and ``Farmer Mac II,''
    respectively. The Farmer Mac title was further amended in 1991 to
    clarify Farmer Mac's authority to issue debt obligations, to provide for
    the establishment of minimum capital standards for Farmer Mac, and to
    expand rulemaking authority for the Farm Credit Administration. The Farm
    Credit System Reform Act of 1996 significantly expanded the activities
    of Farmer Mac by allowing it to directly purchase mortgages and to form
    loan pools.
        In general, the agricultural secondary market is intended to attract
    new capital for financing agricultural real estate, including rural
    housing, foster increased long-term fixed-rate lending, and provide
    greater liquidity to agricultural lenders. Increased competition among
    agricultural lenders, stimulated by access to the secondary market,
    should result in more favorable rates and terms for agricultural
    borrowers.
        Farmer Mac is governed by a 15 member Board of Directors. Ten Board
    members are elected by stockholders, including five by the Farm Credit
    System, and five are appointed by the President subject to Senate
    confirmation.

                                    Financing

        Funding for Farmer Mac comes from four sources: common and preferred
    stock; debt obligations; guarantee fees and a $1.5 billion line of
    credit with the U.S. Treasury.
        The actuarial soundness of the guarantee fee is reviewed annually by
    the Comptroller General in a report to Congress. The soundness of Farmer
    Mac I pools will be determined through a multi-stage process. First,
    loans must comply with the credit underwriting and appraisal standards.
    Second, pools of eligible loans must meet Farmer Mac's standards for
    geographic and commodity diversification and be subjected to economic
    stress analysis to determine pool performance characteristics. In the
    case of Farmer Mac II, only the FmHA guaranteed portions of the loans
    will be pooled by Farmer Mac.
        Available funds of Farmer Mac are invested in U.S. agency securities
    or other high-grade commercial paper. No stock dividends are allowed
    under the Act until the Board determines that an adequate loss reserve
    has been funded to back Farmer Mac guarantees.

                                   Guarantees

        Farmer Mac provides a guarantee of timely payment of principal and
    interest on securities backed by pools of eligible loans. These
    securities are not guaranteed by the United States, and are not
    ``government securities''. In 1996 Congress removed requirements that
    loan originators or poolers maintain cash reserves or subordinated
    securities.
        Farmer Mac guaranteed mortgage-backed securities are subject to
    registration requirements established by the Securities and Exchange
    Commission under the 1933 and 1934 Securities Acts.

                                   Regulation

        Farmer Mac is federally regulated by the Farm Credit Administration
    (FCA). Under 1991 amendments to the Act, regulation is performed by the
    FCA's Office of Secondary Market Oversight. The Office is responsible
    for examination of and rulemaking for Farmer Mac (after a transition
    period), including the determination of the stress test for Farmer Mac's
    risk-based capital. The 1991 amendments also clarified FCA's regulatory
    authority, including enforcement of Farmer Mac's regulatory capital
    standards.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4180-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................         155         392         715
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................         155         392         715
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         463         506         795
    2231  Disbursements of new guaranteed
            loans...........................         155         392         715
    2251  Repayments and prepayments........        -112        -103        -167
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........         506         795       1,343
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         506         795       1,343
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4180-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           3              3             4              7
    0102  Expense...........................          -4             -3            -5             -6
                                            ------------ --------------  ------------  -------------
    0109  Net loss..........................          -1                           -1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4180-0-3-351    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1201  Non-Federal assets: Investment in
            securities......................         474            619           592            915
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         474            619           592            915
        LIABILITIES:
    2203  Non-Federal liabilities: Debt.....         461            607           581            898
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         461            607           581            898
        NET POSITION:
    3200  Invested capital..................          12             12            11             17
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          12             12            11             17
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         473            619           592            915
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4180-0-3-351      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Personnel
            compensation and benefits.......           2           2           3
    25.2  Other services....................           1           3           3
                                               ---------   ---------  ----------

    99.9    Total obligations...............           3           5           6
    ---------------------------------------------------------------------------

                          FEDERAL HOME LOAN BANK SYSTEM

                             Federal Home Loan Banks

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4200-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Administrative expenses
              including FHFB assessments....         234         243         243
    00.02   Affordable Housing program......         102         100         100
    00.03   Interest on consolidated
              obligations and loss on debt
              retirement....................      11,941      10,000      10,000
    00.04   Interest on members' deposits
              and other borrowings..........       1,093       1,000       1,000
    00.05   Payment to REFCORP..............         300         300         300
    00.06   Cash dividends on capital stock.         547         500         500
                                               ---------   ---------  ----------

    [[Page 1142]]

    00.91     Total operating expenses......      14,217      12,143      12,143
          Capital investment:

    01.01   Investment in bank premises.....          11          12           9
    01.04   Net increase in advances and
              non-Treasury securities.......      55,757
    01.05   Repurchase of capital stock.....       4,005       5,074       5,400
                                               ---------   ---------  ----------

    01.91     Total capital investment......      59,773       5,086       5,409
                                               ---------   ---------  ----------

    10.00   Total obligations...............      73,990      17,229      17,552
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

    21.41   U.S. Securities: Par value......         910         148       1,248
    21.90   Fund balance....................         448
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............       1,358         148       1,248
    22.00 New budget authority (gross)......      72,780      31,173      17,552
    22.60 Redemption of debt................                 -12,843
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      74,138      18,478      18,800
    23.95 New obligations...................     -73,990     -17,229     -17,552
    24.41 Unobligated balance available, end
            of year: U.S. Securities: Par
            value...........................         148       1,248       1,248
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Authority to borrow (indefinite)..      52,798
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............      19,982      31,173      17,552
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................      72,780      31,173      17,552
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.41     U.S. Securities: Par value....       3,329       2,482       2,752
    72.47     Authority to borrow (obligated
                balance net of U.S. Treasury
                and agency securities held).                   2,379       1,048
    72.90     Fund balance..................                     449         400
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............       3,329       5,310       4,200
    73.10 New obligations...................      73,990      17,229      17,552
    73.20 Total outlays (gross).............     -72,009     -18,340     -17,552
          Unpaid obligations, end of year:

            Obligated balance:
    74.41     U.S. Securities: Par value....       2,482       2,752       2,752
    74.47     Authority to borrow...........       2,379       1,048       1,048
    74.90     Fund balance: Uninvested
                balance.....................         449         400         400
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................       5,310       4,200       4,200
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      72,009      18,340      17,552
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........      72,009      18,340      17,552
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Net decrease in advances and
                  non-Treasury investments..                 -13,618
    88.40       Other collections from non-
                  Federal sources...........     -19,982     -17,555     -17,552
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........     -19,982     -31,173     -17,552
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      52,798
    90.00 Outlays...........................      52,027     -12,833
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4200-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................     724,349     725,000     725,000
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...     724,349     725,000     725,000
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........     116,567     122,128     120,500
    1231  Disbursements: Direct loan
            disbursements...................     724,349     725,000     725,000
    1251  Repayments: Repayments and
            prepayments.....................    -718,788    -726,628    -725,000
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........     122,128     120,500     120,500
    ---------------------------------------------------------------------------

        The 12 Federal Home Loan Banks were chartered by the Federal Home
    Loan Bank Board under the authority of the Federal Home Loan Bank Act of
    1932. Subsequent to the passage of the Financial Institutions Reform,
    Recovery, and Enforcement Act (FIRREA) of 1989, the FHLBanks are under
    the supervision of the Federal Housing Finance Board. The common mission
    of the FHLBanks is to facilitate the extension of credit through their
    members in order to provide access to housing for all Americans and to
    improve the quality of their communities. To accomplish this mission,
    the FHLBanks make loans, called advances, and provide other credit
    products such as letters of credit to member institutions. Advances and
    letters of credit must be fully secured by eligible collateral and long-
    term advances may be made only for the purpose of providing funds for
    residential housing finance. Additionally, specialized community-related
    advance programs provide funds for community reinvestment and affordable
    housing programs. All regulated financial depositories and insurance
    companies engaged in residential housing finance are eligible for
    membership. Each FHLBank operates in a geographic district designated by
    the Board and together the FHLBanks cover all of the United States as
    well as Puerto Rico, the Virgin Islands, and Guam.
        Advances outstanding on September 30, 1995 totaled approximately
    $122.1 billion, a net increase of approximately $5.9 billion from the
    September 30, 1994 level of $116.2 billion.
        The principal source of funds for the lending operation is the sale
    of consolidated obligations to the public. On September 30, 1995, $226.4
    billion of these obligations were outstanding. The consolidated
    obligations are not guaranteed by the U.S. Government as to principal or
    interest. Other sources of lendable funds include a portion of members'
    deposits as determined by Board policy. Deposits totaled $16.9 billion
    and total capital amounted to $14.7 billion as of September 30, 1995.
    Funds not immediately used for advances to members are invested until
    such times as needed.
        The capital stock of the Federal Home Loan Banks is owned entirely
    by the members. Initially the U.S. Government purchased stock of the
    banks in the amount of $125 million. The banks had repurchased the
    Government's investment in full by mid-1951.
        The entire operating expenses of the FHLBanks are paid from their
    own income and are not included in the budget of the United States.
    Included in these expenses is the assessment by the Federal Housing
    Finance Board to cover the Board's administrative and other costs.
        FIRREA contains provisions for the establishment of an Affordable
    Housing Program (AHP) by each FHLBank. Each FHLBank has developed its
    AHP to enhance the availability of housing for very low-, low- and
    moderate-income families by providing direct subsidies or subsidized
    advances for members who use the funds for qualifying housing projects.
    The FHLBank system sets aside for its AHPs a total of $100 million
    annually.
        The forecast data for 1996 and 1997 contained in this material
    represents estimates and should not be construed as an official forecast
    of the FHLBanks System's future position.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4200-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       8,985         14,568        12,543         12,543
    0102  Expense (excludes payments to
            REFCORP)........................      -8,051        -13,370       -11,343        -11,343
                                            ------------ --------------  ------------  -------------

    [[Page 1143]]

    0109  Net income........................         934          1,198         1,200          1,200
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4200-0-3-371    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, net...............       4,239          2,630         4,000          4,000
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............      84,794        134,990       123,000        123,000
    1206    Accounts receivable.............       2,053          3,532         3,000          3,000
    1401  Net value of assets related to
            direct loans receivable: Direct
            loans receivable, gross.........     116,567        122,128       120,500        120,500
          Other Federal assets:

    1801    Cash and other monetary assets..         448            449           400            400
    1803    Property, plant and equipment,
              net...........................         156            157           140            140
    1901    Other assets....................          43            941           100            100
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................     208,300        264,828       251,140        251,140
        LIABILITIES:
    2101  Federal liabilities: REFCORP and
            AHP.............................         308            347           380            380
          Non-Federal liabilities:

    2201    Accounts payable................         196            185           100            100
    2202    Interest payable................       2,522          3,946         3,000          3,000
    2203    Debt............................     168,379        226,406       217,000        217,000
            Other:
    2207      Deposit funds and other
                borrowings..................      23,666         18,437        15,000         15,000
    2207      Other.........................         302            832           720            720
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............     195,374        250,154       236,200        236,200
        NET POSITION:
    3200  Invested capital..................      12,926         14,674        14,940         14,940
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      12,926         14,674        14,940         14,940
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position     208,300        264,828       251,140        251,140
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4200-0-3-371      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          92          95          95
    12.1  Civilian personnel benefits.......          26          26          26
    21.0  Travel and transportation of
            persons.........................           6           8           8
    23.3  Communications, utilities, and
            other rent......................          22          22          22
    24.0  Printing and reproduction.........           7           9           9
    25.2  Other services....................          73          75          75
    31.0  Equipment.........................           7           8           8
    32.0  Land and structures...............          11          12           9
    33.0  Net increase in advances and
            securities......................      55,757
    41.0  Subsidies (Affordable Housing
            Program)........................         102         100         100
          Interest and dividends:

    43.0    Interest and changes in other
              assets........................      13,581      11,500      11,500
    43.0    REFCORP interest................         300         300         300
    92.0  Repurchase of capital stock
            (gross).........................       4,005       5,074       5,400
                                               ---------   ---------  ----------

    99.9    Total obligations...............      73,990      17,229      17,552
    ---------------------------------------------------------------------------

                              Financing Corporation

        The Financing Corporation (FICO) is a mixed-ownership government
    corporation, chartered by the Federal Home Loan Bank Board pursuant to
    the Federal Savings and Loan Insurance Corporation Recapitalization Act
    of 1987, as amended (the ``Act''). FICO's sole purpose was to function
    as a financing vehicle for the FSLIC Resolution Fund, formerly the
    Federal Savings and Loan Insurance Corporation (FSLIC). FICO operates
    under the supervision and control of the Federal Housing Finance Board
    (the ``Finance Board''). Pursuant to the Act, FICO was authorized to
    issue debentures, bonds and other obligations subject to limitations
    contained in the Act, the net proceeds of which were to be used solely
    to purchase capital certificates issued by the FSLIC Resolution Fund, or
    to refund any previously issued obligations. The Resolution Trust
    Corporation Refinancing, Restructuring, and Improvement Act of 1991
    terminated the FICO's borrowing authority.
        The Act provided formulas pursuant to which the Federal Home Loan
    Banks made capital contributions to FICO at the direction of the Finance
    Board for the purchase of FICO capital stock. FICO used the proceeds
    received from the sales of such capital stock to purchase non-interest
    bearing securities for deposit in a segregated account as required by
    the Act. The non-interest bearing securities held in the segregated
    account will be the primary source of repayment of the principal of the
    FICO obligations. Securities in the segregated account are kept separate
    from other FICO accounts and funds but are not specifically pledged as
    collateral for the payment of obligations. The primary source of payment
    of interest on the obligations will be the receipt of assessments
    imposed on and collected from institutions' accounts which are insured
    by the Savings Association Insurance Fund (the ``SAIF'').

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4033-0-3-373    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         888            897           906            916
    0102  Expense...........................        -795           -795          -795           -795
                                            ------------ --------------  ------------  -------------
    0109  Net income........................          93            102           111            121
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4033-0-3-373    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Segregated
              accounts investment, net......       1,143          1,244         1,354          1,475
          Other Federal assets:

    1801    Cash, cash equivalents, and
              interest receivable...........         344            279           279            279
    1901    Other assets....................          13             13            12             12
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,500          1,536         1,645          1,766
        LIABILITIES:
          Non-Federal liabilities:

    2202    Interest payable................         236            236           236            236
    2203    Debt............................       8,140          8,141         8,142          8,144
    2207    Other...........................         152             85            83             81
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,528          8,462         8,461          8,461
        NET POSITION:
    3100  FICO capital stock purchased by
            FHLBanks........................         680            680           680            680
    3300  Cumulative results of operations..         463            565           675            796
          Other:

    3600    Other...........................      -7,568         -7,568        -7,568         -7,568
    3600    Other...........................        -603           -603          -603           -603
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -7,028         -6,926        -6,816         -6,695
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,500          1,536         1,645          1,766
    -----------------------------------------------------------------------------------------------

                         Resolution Funding Corporation

        The Resolution Funding Corporation (the ``REFCORP'') is a mixed-
    ownership government corporation established by Title V of the Financial
    Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The
    sole purpose of REFCORP was to provide financing for the Resolution
    Trust Corporation (the ``RTC''). Pursuant to FIRREA, REFCORP was
    authorized to issue debentures, bonds, and other obligations, subject to
    limitations contained in the Act and regulations established by the
    Thrift Depositor Protection Oversight Board. The proceeds of the debt
    (less any discount, plus any premium, net of issuance cost) were used
    solely to purchase nonredeemable capital certificates of the RTC or to
    refund any previously issued obligations.
        REFCORP is subject to the general oversight and direction of the
    Thrift Depositor Protection Oversight Board. The day-to-day operations
    of REFCORP are under the management of a three-member Directorate
    comprised of the Director of

    [[Page 1144]]
    the Office of Finance of the Federal Home Loan Banks and two members
    selected by the Oversight Board from among the presidents of the twelve
    Federal Home Loan Banks (``the FHLBanks''). Members of the Directorate
    serve without compensation, and REFCORP is not permitted to have any
    paid employees. REFCORP and its Directorate are subject to regulations,
    orders and directions of the Thrift Depositor Protection Oversight
    Board.
        FIRREA and the regulations adopted by the Thrift Depositor
    Protection Oversight Board provide formulas pursuant to which the
    Federal Home Loan Banks made capital contributions to REFCORP's
    Principal Fund and continue to make interest payments on outstanding
    REFCORP obligations. FIRREA also provides that the U.S. Treasury cover
    any interest shortfall. Funds designated for the Principal Funds were
    used to purchase zero-coupon bonds. The zero-coupon bonds will be held
    in the Principal Fund and are the primary source of repayment of the
    principal of the obligations at maturity.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4029-0-3-373    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,875          2,895         2,920          2,942
    0102  Expense...........................      -2,626         -2,626        -2,626         -2,626
                                            ------------ --------------  ------------  -------------
    0109  Net income........................         249            269           294            316
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4029-0-3-373    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Principal fund
              account investment, net.......       3,301          3,567         3,856          4,169
    1206  Non-Federal assets: Assessments
            receivable for interest expense.         881            881           881            881
    1901  Other Federal assets: Other assets           1              1             1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,183          4,449         4,738          5,050
        LIABILITIES:
          Non-Federal liabilities:

    2202    Accrued interest payable on
              long-term obligations.........         881            881           881            881
    2203    Debt............................      30,079         30,076        30,074         30,072
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      30,960         30,957        30,955         30,953
        NET POSITION:
    3100  Nonvoting capital stock issued to
            FHLBanks........................       2,513          2,513         2,513          2,513
    3200  RTC nonredeemable capital
            certificates....................     -31,286        -31,286       -31,286        -31,286
    3300  Cumulative results of operations..         939          1,208         1,499          1,813
    3600  Other.............................       1,057          1,057         1,057          1,057
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............     -26,777        -26,508       -26,217        -25,903
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,183          4,449         4,738          5,050
    -----------------------------------------------------------------------------------------------

                BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4450-0-3-803      1994 actual   1995 est.   1996 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Board operating expenses:

    00.01   Monetary and economic policy....          65          73          74
    00.02   Services to financial
              institutions and the public...           3           3           3
    00.03   Supervision and regulation of
              financial institutions........          57          64          65
    00.04   System policy direction and
              oversight.....................          28          31          32
                                               ---------   ---------  ----------

    00.91     Subtotal: Board operating
                expenses....................         153         171         174
    01.01 Office of Inspector General
            operating expenses..............           3           3           3
                                               ---------   ---------  ----------

    10.00   Total obligations...............         156         174         177
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          -1          -3          -6
    22.00 New budget authority (gross)......         154         171         177
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         153         168         171
    23.95 New obligations...................        -156        -174        -177
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          -3          -6          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         154         171         177
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          13          18          21
    73.10 New obligations...................         156         174         177
    73.20 Total outlays (gross).............        -152        -171        -175
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          18          21          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         140         157         161
    86.98 Outlays from permanent balances...          12          14          14
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         152         171         175
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -154        -171        -177
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -3                      -2
    ---------------------------------------------------------------------------
        The figures presented may differ from other Board financial material
    because they are prepared in accordance with OMB guidelines which vary
    from the Board's budget and accounting procedures.

        The Federal Reserve System operates under the provisions of the
    Federal Reserve Act of 1913, as amended, and other acts of Congress.
        Program.--To carry out its responsibilities under the Act, the Board
    determines general monetary, credit, and operating policies for the
    System as a whole and formulates the rules and regulations necessary to
    carry out the purposes of the Federal Reserve Act. The Board's principal
    duties consist of exerting an influence over credit conditions and
    supervising the Federal Reserve banks and member banks.
        Financing.--Under the provisions of section 10 of the Federal
    Reserve Act, the Board of Governors levies upon the Federal Reserve
    banks, in proportion to their capital and surplus, an assessment
    sufficient to pay its estimated expenses. The Board, under the Act,
    determines and prescribes the manner in which its obligations are
    incurred and its expenses paid. Funds derived from assessments are
    deposited in the Federal Reserve Bank of Richmond, and the Act provides
    that such funds ``shall not be construed to be Government funds or
    appropriated moneys.'' No Government appropriation is required to
    support operations of the Board.
        The information presented pertains to Board operations only.
    Expenditures made on behalf of the Federal Reserve banks for production,
    issuance, retirement, and shipment of Federal Reserve notes are not
    included, since they are reimbursed in full by the Federal Reserve
    banks.

                  Statement of Operations (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4450-0-3-803      1994 actual   1995 est.   1996 est.
    ----------------------------------------------------------------------------
    0101  Revenue...........................         154         171         177
    0102  Expense...........................        -156        -174        -177
                                               ---------   ---------  ----------

    0109  Net income or loss (-)............          -2          -3
    ---------------------------------------------------------------------------

    [[Page 1145]]

                       Balance Sheet (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4450-0-3-803      1994 actual   1995 est.   1996 est.
    ----------------------------------------------------------------------------
        ASSETS:
    1206  Non-Federal assets: Receivables,
            net.............................           4           3           2
          Other Federal assets:

    1801    Cash in bank....................          15          15          17
    1803    Property, plant and equipment,
              net...........................         112         125         135
                                               ---------   ---------  ----------

    1999    Total assets....................         131         143         154
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable and accrued liabilities.          22          24          25
                                               ---------   ---------  ----------

    2999    Total liabilities...............          22          24          25
        NET POSITION:
    3100  Appropriated capital..............          -3          -6          -7
    3200  Invested capital..................         112         125         136
                                               ---------   ---------  ----------

    3999    Total net position..............         109         119         129
                                               ---------   ---------  ----------

    4999  Total liabilities and net position         131         143         154
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4450-0-3-803      1994 actual   1995 est.   1996 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          89          95         100
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           2           2           2
                                               ---------   ---------  ----------

    11.9        Total personnel compensation          92          98         103
    12.1    Civilian personnel benefits.....          16          16          16
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................           4           5           5
    23.3    Communications, utilities, and
              other rent....................           9           9          10
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services           1           2           3
    25.2    Other services..................          13          18          16
    26.0    Supplies and materials..........           5           6           7
    31.0    Equipment.......................          10          14          11
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..         154         171         174
    25.2  Allocation Account--Direct
            Obligations: Other services.....           3           3           3
    99.5  Below reporting threshold.........          -1
                                               ---------   ---------  ----------

    99.9    Total obligations...............         156         174         177
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 99-4450-0-3-803      1994 actual   1995 est.   1996 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1005  Full-time equivalent of overtime
            and holiday hours...............          38          38          38
    1011  Exempt Full-time equivalent
            employment......................       1,650       1,659       1,665
    ---------------------------------------------------------------------------
        \1\ Includes 32, 32, and 31 positions respectively for the Office of
    Inspector General.