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SECTION 206. Purchase of Bonds.

(a) (i) In the case of any Holder other than the Holder of Bank Bonds, on any December 1 commencing, for the 2010 Bonds on December 1, 1987, for the 2014 Bonds on December 1, 1988 and for the 2018 Bonds on December 1, 1989, including the Fixed Rate Date, any Bond shall be purchased by the Paying Agent upon the demand of the holder thereof, at a purchase price equal to the principal amount thereof, if such Bond, together with a properly completed Notice of Election Regarding Demand For Purchase of Bond at Bondholder Option and Assignment in substantially the form hereinabove set forth executed by such Holder, shall have been delivered to the Paying Agent at its principal corporate trust office, not earlier than October 15 and not later than four o'clock p.m., New York time on the November 15 (or the next succeeding Business Day, if such November 15 is not a Business Day) next preceding such December 1.

(ii) In the case of any Holder that is a registered investment company, on any December 1 commencing, for the 2010 Bonds on December 1, 1987, for the 2014 Bonds on December 1, 1988 and for the 2018 Bonds on December 1, 1989, including the Fixed Rate Date, any Bond shall be purchased by the Paying Agent upon the demand of the holder thereof, at a purchase price equal to the principal amount thereof, if a properly completed Notice of Election Regarding Demand For Purchase of Bond at Bondholder Option and Assignment in substantially the form hereinabove set forth executed by such holder shall have been delivered to the Paying Agent at its principal corporate trust office, not earlier than October 15 and not later than four o'clock p.m., New York time, on the November 15 (or the next succeeding Business Day, if such November 15 is not a Business day) next preceding such December 1. Such notice shall be irrevocable and upon receipt of such notice by the Paying Agent, the Holder of any Bond with respect to which such notice was given shall be deemed to have

tendered such Bond effective as of the next December 1 and any such holder shall have only those rights with respect to such Tendered Bond as are set forth in Section 207 hereof.

(b) Bonds tendered for purchase in accordance with the foregoing shall be remarketed in accordance with Sections 301(c) and (d) hereof. The purchase of such Bonds shall not extinguish the debt represented thereby.

(c) After the Fixed Rate Date, Holders shall have no right to tender Bonds for purchase.

(d) In the case of Bonds deemed to have been tendered pursuant to Section 403 only, if the Mandatory Tender Date shall be a date other than June 1 or December 1, the purchase price of such Bonds shall be equal to the principal amount thereof plus accrued interest thereon through the Mandatory Tender Date.