CFC Enhances Medium-Term Notes, Member Capital Securities Investment Products

On April 21, CFC will become the paying agent for its Medium-Term Notes (MTN) and Member Capital Securities (MCS) investment products. The change removes U.S. Bank as intermediary for principal and interest payments to members. U.S. Bank will remain the Trustee and Registrar for these securities.

“We’re making this change in response to member feedback and a review of our internal and external processes,” CFO Ling Wang explained. “With CFC becoming the paying agent for both MTN and MCS products, we can automatically deposit principal and interest payments in members’ accounts via ACH deposits, saving members from being charged wire fees.”

ACH deposits are less expensive than wire payments and require less processing time for members to receive their principal and interest payments once set up.

Enrolling in CFC’s ACH Deposit program is as simple as completing the Bank Information Form and submitting it to the CFC Member Center. For members that do not want to receive ACH deposits, CFC can issue a check or wire transfer for the investment principal and interest payments. Fees for wire transfers are generally higher than ACH deposits.

Existing MTN and MCS investors will receive a new prospectus with the paying agent change. Members considering a CFC investment can download the new prospectuses on the CFC Member Website on April 21.

For questions or more information, contact the Member Center at 800-424-2955 or MemberCenter@nrucfc.coop.