Fannie Mae, the largest U.S. home funding company, said on Monday it plans to sell $500 million of three-month benchmark bills due Sept. 16, 2009, and $500 million of six-month bills due Dec. 16, 2009, 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. (1300 GMT), until 9:45 a.m. (1345 GMT).

Settlement is June 17-18.