PRICING SUPPLEMENT DATED SEPTEMBER 16, 1997
(To Offering Circular dated June 24, 1997)
FANNIE MAE
Medium-Term Notes,
Series B
This Pricing
Supplement relates to the issue of Medium-Term Notes, Series B described
below (the "Notes") and should be read in conjunction with the
Offering Circular dated June 24, 1997 (the "Offering Circular")
relating to the Medium-Term Notes, Series B of the Federal National Mortgage
Association (the "Corporation" or "Fannie Mae"). Unless
otherwise defined herein, capitalized terms used herein have the meanings
given to them in the Offering Circular.
THE NOTES,
TOGETHER WITH INTEREST THEREON, ARE NOT GUARANTEED BY THE UNITED STATES
AND DO NOT CONSTITUTE A DEBT OR OBLIGATION OF THE UNITED STATES OR OF ANY
AGENCY OR INSTRUMENTALITY THEREOF OTHER THAN THE CORPORATION.
CUSIP Number: 31364FBK6
Certain Securities Terms
1. Principal Amount: $200,000,000.00
2. Issue Date (expected Settlement Date): September 23, 1997
3. Maturity Date: September 25,
2000
a. Amount
Payable on the Maturity Date: 100% of principal amount
4. Subject to Redemption Prior to Maturity Date
X No
Yes;
in whole or in part, at the option of the Corporation, at any time (and
from
time
to time) on or after
at a redemption price of 100% of the
principal
amount redeemed, plus accrued interest thereon to the date of redemption
5. Interest Category: Fixed Rate Notes
6. Interest
a. Frequency
of Interest Payments
X Semiannually
Other:
b. Interest
Payment Dates: 25th day of each March and September
c. First
Interest Payment Date: March 25, 1998
d. Interest
rate per annum: 5.97%
Offering
1. Pricing Date: September 16, 1997
2. Method of Distribution: X Principal Non-Underwritten
3. Dealer:
Underwriting Commitment
Morgan Stanley & Co.
Incorporated............................ $
200,000,000.00
a. If
Multiple Dealers, Representative(s): N/A
4. Offering Price:
X Fixed
Offering Price: 100%, plus accrued
interest, if any, from September 23, 1997
Variable Price Offering
5. If Fixed Offering Price, discount to Dealer:
.15% of Principal Amount
6. Price to Dealer: 99.85% of Principal Amount
7. Proceeds to Corporation: $199,700,000.00
8. Concession: .125%
and reallowance: .050%
United States Taxation
In the opinion
of Arnold & Porter, special tax counsel to the Corporation, the following
paragraph, when read in conjunction with the discussion under "United
States Taxation" in the Offering Circular, correctly describes the
principal aspects of the current United States federal tax treatment of
investors who purchase the Notes described in the Offering Circular. The
discussion does not purport to deal with all tax consequences applicable
to all categories of investors, some of which may be subject to special
rules.
Recent Tax Legislation
The Taxpayer
Relief Act of 1997 modified the federal income taxation of capital gains.
The maximum tax rate on capital gains received by individuals from the
sale or disposition of investments (other than collectibles) held for more
than 18 months is 20 percent. If an individual holds an investment for
more than one year, but not for more than 18 months, the maximum rate is
28 percent. Finally, the top capital gains tax rate for individuals will
drop to 18 percent for assets purchased after January 1, 2000, and held
for more than five years. Investors should consult their own tax advisors
for more information or for the capital gains rate applicable to a specific
Note they own.