Fannie Mae, the largest U.S. home funding company, on Monday said it plans to sell $1 billion of three-month benchmark bills due October 28, 2009, and $1 billion of six-month bills due January 27, 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 July 29-30.

(Reporting by Camille Drummond; Editing by Theodore d'Afflisio)