Fannie Mae, the largest U.S. home funding company, said on Monday it plans to sell $1 billion of three-month benchmark bills due Dec. 30, 2009, and $1 billion of six-month bills due March 31, 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. (1300 GMT), until 9:45 a.m. (1345 GMT).

Settlement is Sept. 30 and Oct. 1.

(Editing by James Dalgleish)