NEW YORK - Fannie Mae, the largest U.S. home funding company, said on Friday it plans to sell $500 million of three-month benchmark bills due Dec. 9, 2009, and $500 million of six-month bills due March 10, 2010 on Wednesday in a Dutch auction.

In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from authorized dealers from 9:00 a.m. until 9:45 a.m.

Settlement is Sept. 9-10. (Reporting by Caryn Trokie; Editing by Dan Grebler)