Note Purchase Agreements

Our note purchase agreements with the Federal Financing Bank provide for revolving credit lines of $4 billion. These credit lines enable us to draw up to $3.4 billion with two days’ notice, and up to $600 million on the same business day the funds are needed. Under these agreements we can also use a series of other notes with varying provisions to draw upon with two days’ notice. The notes provide us the flexibility to borrow short-term or long-term, using fixed or floating-rate debt, and can be either callable or non-callable.

All debt is unsecured and is not subject to sinking fund requirements. Aggregate debt maturities at year-end 2009 were: $3,675 million in 2010; zero for 2011, 2012 and 2013; $300 million for 2014 and $6,225 million thereafter.

Debt consists of the following:

Notes Payable to the Federal Financing Bank (FFB): (dollars in millions)
Interest Rate %	Debt Type	Maturity Date	September 30, 2009	September 30, 2008
2.035%	Fixed rate note — Payable at Maturity	January 31, 2014	$300	$—
2.844%	Fixed rate note — Payable at Maturity	May 2, 2016	300	—
3.048%	Fixed rate note — Payable at Maturity	November 15, 2018	500	—
3.296%	Fixed rate note — Payable at Maturity	February 15, 2019	700	—
3.704%	Fixed rate note — Payable at Maturity	May 15, 2019	1,000	—
3.513%	Fixed rate note — Payable at Maturity	May 15, 2019	500	—
3.770%	Fixed rate note — Payable at Maturity	May 17, 2038	200	—
3.790%	Fixed rate note — Payable at Maturity	February 15, 2039	1,000	—
0.184%	Floating Rate Note	November 15, 2042	500	—
0.271%	Floating Rate Note3	June 15, 2043	500	—
0.216%	Floating Rate Note4	December 15, 2042	1,025	—
0.155%	Floating Rate Note4	October 15, 2009	475	—
0.145%	Short-term revolving credit line5	— 6	3,200	2,700
0.905%	Fixed rate note — Payable at Maturity	December 11, 2008	—	2,500
0.485%	Fixed rate note — Payable at Maturity	December 18, 2008	—	2,000
			10,200	7,200
Less Current Portion			3,675	7,200
			$6,525	$—
All debt is repurchasable at any time at a price determined by the Secretary of the Treasury, based on rates prevailing in the Treasury Security market at the time of repricing.
Floating Rate Note — Payable November 15, 2042; repurchasable at par November 16, 2009, and every February 15, May 15, August 15, and November 15 thereafter.
3 Floating Rate Note — Payable June 15, 2043; repurchasable at par December 15, 2009, and every March 15, June 15, September 15, and December 15 thereafter.
4 Floating Rate Note — Payable December 15, 2042; repurchasable at par December 15, 2009, and every March 15, June 15, September 15, and December 15 thereafter.
5 Weighted Average interest rate; as of September 30, 2008, was 0.271%.
6 Funds are typically borrowed overnight. Our lines of credit extend through April 30, 2010, and May 8, 2009, respectively, for these notes.

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