Fannie Mae-No Politics (FNMA)

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QUANTUMONLINE.COM SECURITY DESCRIPTION: Freddie Mac (Federal Home Loan Mortgage Corp.), 1996 Variable Rate Noncumulative Perpetual Preferred Stock, liquidation preference $50 per share, redeemable at the issuer's option on or after 6/30/2001 at $50 per share plus declared and unpaid dividends, and with no stated maturity. Variable rate noncumulative distributions are reset quarterly and paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on approximately the 15th day of the month in which the payment is made (NOTE: the ex-dividend date is one business day prior to the record date). The dividend rate resets quarterly and is equal to the sum of the three-month London Interbank Offered Rate (LIBOR) rate plus one percent divided by 1.377, and is capped at 9.00 percent. Dividends paid by the preferred are eligible for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.