Retail Securities

• Subordinated Notes
• CFC Inter Notes

Subordinated Notes

Subordinated Notes (Subordinated Deferrable Interest Notes) are a retail security which may be purchased through a broker and are issued at a $25 par value with maturities of up to 40 years. They currently trade in the secondary market at prices that may be above or below par value. CFC has three issues outstanding, which are traded on the New York Stock Exchange under the symbols NRN, NRC, and NRU. CFC's Subordinated Notes are rated "A3" by Moody's Investors Service, Inc., "BBB+" by Standard & Poor's Corporation and "A-" by Fitch Investors Service.

Interest earned on Subordinated Notes investments is paid quarterly. The securities are subordinated to CFC's senior debt and provide an interest rate deferral option to CFC for five years.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and other documents NRUCFC has filed with the SEC for more complete information about the issuer and this offering. You can get a free copy of documents by visiting www.nrucfc.coop or at www.sec.gov.