Note G — Securities Sold Under Agreements to Repurchase

The Company routinely enters into short-term financing arrangements to sell MBS under agreements to repurchase. The weighted average borrowing rate for the year ended February 28, 2001 was 6.33%. The weighted average borrowing rate on repurchase agreements outstanding as of February 28, 2001 was 5.53%. The repurchase agreements were collateralized by MBS. All MBS underlying repurchase agreements are held in safekeeping by broker-dealers or banks. All agreements are to repurchase the same or substantially identical MBS.