EXHIBIT 12.(c).
STOCK SUBSCRIPTION AGREEMENT
THIS AGREEMENT between National Rural Electric Cooperative Association
("NRECA") and Homestead Funds, Inc. (the "Corporation"), a corporation organized
and existing under and by virtue of the laws of the State of Maryland.
In consideration of the mutual promises set forth herein, the parties
agree as follows:
1. The Corporation agrees to sell to NRECA and NRECA hereby subscribes
to purchase 10,000 shares of the Short-Term Government Securities Fund class of
the Corporation's Common Stock (the "Stock"), such class with a Par Value of
$.0l per share, at a price of five dollars ($5.00) per share.
2. NRECA agrees to pay $50,000 for such Stock at the time of its
issuance, which shall occur upon call of the President of the Corporation at any
time on or before the effective date of the amendment to the Corporation's
Registration Statement filed by the Corporation on Form X-xX.
0. NRECA acknowledges that the Stock has not been, and will not be,
registered under any state or federal securities laws and that, therefore, the
Corporation is relying on certain exemptions therein from such registration
requirements, including exemptions dependent on the intent of the undersigned in
acquiring the Stock. NRECA also
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understands that any resale of the Stock, or any part thereof, may be subject to
restrictions under state and federal securities laws, and that NRECA may be
required to bear the economic risk of any investment in the Stock for an
indefinite period of time.
4. NRECA represents and warrants that it is acquiring the Stock
solely for its own account and solely for investment purposes and not with a
view to the resale or disposition of all or any part thereof, and that it has no
present plan or intention to sell or otherwise dispose of the Stock or any part
thereof.
5. NRECA agrees that it will not sell or dispose of the Stock or
any part thereof unless the amendment to the Registration Statement with respect
to such Stock is then in effect under the Securities Act of 1933 and under any
applicable state securities laws.
6. NRECA further agrees to withdraw any request to redeem any of
the Stock to the extent the Corporation informs the undersigned that the effect
of such redemption could be to reduce the Short-Term Government Securities
Fund's net worth below $50,000.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized representatives this 7th day of March, 1995.
NATIONAL RURAL ELECTRIC
COOPERATIVE ASSOCIATION
By: /s/ Xxxxxxx XxXxxxxxx
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Title: Counsel
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HOMESTEAD FUNDS, INC.
By: /s/ Xxxxxxx Xxxxxxxx
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Title: President
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