Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Kthomp and Ano

Have either of you seen the SPS Agreement cited by Paris before?

Check out Paragraph 9

9. Additional Classes or Series of Stock
The Board of Directors shall have the right at any time in the future to authorize, create and issue, by resolution
or resolutions, one or more additional classes or series of stock of the Company, and to determine and fix the
distinguishing characteristics and the relative rights, preferences, privileges and other terms of the shares thereof;
provided that, any such class or series of stock may not rank prior to or on parity with the Senior Preferred Stock
without the prior written consent of the holders of at least two-thirds of all the shares of Senior Preferred Stock at the
time outstanding.


Could the BOD just leave the SPS in place and redeem the SPS over time as outside capital is raised?

Also - check out the items covered in Paragraph 10 including a reference to Delaware law except where the Federal law supercedes. Maybe all the corporate and shareholder rights of Delware are applicable since they are not covered by HERA?