Fannie Mae to sell $3.5 billion bills on Wednesday

NEW YORK, May 12 (Reuters) - Fannie Mae (FNM.N), the largest U.S. home funding company, said on Monday it plans to sell $2.0 billion of three-month benchmark bills due Aug. 13, 2008, and $1.5 billion of six-month bills due Nov. 12, 2008, 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 May 14-15. (Reporting by Caryn Trokie; Editing by James Dalgleish)