Item 3. Legal Proceedings
	 None.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
	 None.
Part II
Item 5.
Item 5. Market for the Registrant's Common Equity and Related Stockholder 	 Matters
a) There is no established trading market for the certificates 	 representing ownership of the beneficial interest in the Trust.
b) As of March 29, 1996 there were two holders of certificates 	 representing ownership of the beneficial interest in the Trust.
Item 8.
Item 8. Financial Statements and Supplementary Data
	 See attached audited financial statements.
Item 9.
Item 9. Disagreements on Accounting and Financial Disclosure
	 None.
Part III
Item 13.
Item 13. Certain Relationships and Related Transactions
	 None.
Part IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules and Reports 	 on Form 8-K
a) The following documents are filed as part of this report:
	 1. Financial Statements 	 Report of Independent Public Accountants 	 Statement of Assets and Liabilities as of 		December 31, 1995 and 1994 	 Statement of Income and Expenses, for the Years Ended 		December 31, 1995, 1994 and 1993 	 Statement of Cash Flows, for the Years Ended 		December 31, 1995, 1994 and 1993 	 Notes to Financial Statements
	 2. Financial Statement Schedules are omitted because they are 	 inapplicable.
	 3. Exhibits
	 Exhibit 	 Number Description of Exhibit
		4.1 Form of Trust Agreement, including the form of 			 Rural Electric Cooperative Grantor Trust 			 Certificate (incorporated by reference to Exhibit 			 4.1 to Registration Statement on Form S-1 [No. 33- 			 20166]).
	 10.1 Loan Agreement (incorporated by reference to 			 Exhibit 10.1 to Registration Statement on Form S-1 			 [No. 33-20166]).
	 10.2 Loan Guarantee and Servicing Agreement 			 (incorporated by reference to Exhibit 10.2 to 			 Registration Statement on Form S-1 [No. 33-20166]).
b) Form 8-K dated December 20, 1995. 	 Semi-annual Report to Certificateholders dated December 15, 1995.
Supplemental information to be furnished with reports filed pursuant to Section 15(d) of the Act by Registrants which have not registered securities pursuant to Section 12 of the Act.
No annual report, proxy statement, form of proxy or other proxy soliciting material has been sent to Certificateholders, and the Registrant does not presently contemplate sending any such material subsequent to the filing of this report.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the County of Fairfax, Commonwealth of Virginia on the 29th day of March, 1996.
	 RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (TEX-LA) 1988 T-1
	 By: NATIONAL RURAL UTILITIES COOPERATIVE 		 FINANCE CORPORATION as Servicer
		 By: /s/ Sheldon C. Petersen 			 Sheldon C. Petersen, Governor and 			 Chief Executive Officer
		 RURAL ELECTRIC COOPERATIVE GRANTOR 			 TRUST (TEX-LA) 1988-T1
	 FINANCIAL STATEMENTS AS OF DECEMBER 31, 1995, 1994 AND 1993 			TOGETHER WITH AUDITORS' REPORT
		 Report of Independent Public Accountants
To the Trustee of Rural Electric Cooperative Grantor Trust (Tex-La) 1988-T1, and
To the Board of Directors of National Rural Utilities Cooperative Finance Corporation
We have audited the accompanying statements of assets and liabilities of Rural Electric Cooperative Grantor Trust (Tex-La) 1988-T1 as of December 31, 1995 and 1994, and the related statements of income and expenses and cash flows for each of the three years in the period ended December 31, 1995. These financial statements are the responsibility of the Trust's management. Our responsi- bility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rural Electric Cooperative Grantor Trust (Tex-La) 1988-T1 as of December 31, 1995 and 1994, and its operations and its cash flows for the years ended December 31, 1995, 1994 and 1993, in conformity with generally accepted accounting principles.
March 11, 1996 /s/ Arthur Andersen LLP Washington, D. C.
	 RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (TEX-LA) 1988-T1
		 STATEMENTS OF ASSETS AND LIABILITIES
		 AS OF DECEMBER 31, 1995 AND 1994
						1995 1994
A S S E T S
Interest Receivable $ 86,689 $94,601
Note Receivable 12,325,000 13,450,000
Total Assets $12,411,689 $13,544,601
L I A B I L I T I E S
Interest Payable - Grantor Trust $ 84,118 $ 91,796 Certificates
Servicer Fees Payable 2,571 2,805
Rural Electric Cooperative Grantor Trust Certificates 12,325,000 13,450,000
Total Liabilities $12,411,689 $13,544,601
	RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (TEX-LA) 1988-T1
		 NOTES TO FINANCIAL STATEMENTS
		 DECEMBER 31, 1995, 1994 AND 1993
1. ORGANIZATION AND OPERATIONS
Rural Electric Cooperative Grantor Trust (Tex-La) 1988-T1 (the "Trust") was formed under a Trust Agreement dated February 15, 1988 among National Rural Utilities Cooperative Finance Corporation ("CFC"), Tex-La Electric Cooperative of Texas, Inc. (the "Cooperative") and The First National Bank of Chicago (the Trustee"). On that date, CFC made a loan to the Cooperative which issued a note (the "Note"), evidencing the borrowing, to the Trust. The Trust issued to CFC Rural Electric Cooperative Grantor Trust (Tex-La) 9.10% Certificates Due 2002 (the "Certificates") in the amount of $17,120,000. The Certificates are solely the obligations of the Trust and are not insured or guaranteed by CFC, the Cooperative, the Trustee, the Rural Utilities Service ("RUS") of the United States Department of Agriculture ("USDA") nor any other governmental agency. Each Certificate represents an undivided fractional interest in the Trust. CFC is the depositor of the Trust and acts as Servicer of the Note. CFC filed, on behalf of the Trust, a Registration Statement on Form S-1 (Registration No. 33-20166) which become effective on March 9, 1988, and CFC resold the Certificates thereunder.
The assets of the Trust consist primarily of the Note which is guaranteed (the "Guarantee") as to timely payment of principal and interest by the United States of America, acting through the Administrator of RUS. The amounts of principal and interest payments on the Note held by the Trust are sufficient to cover the scheduled principal and interest payments on the Certificates issued by the Trust and the scheduled amounts of servicer fees. The General Counsel of the USDA has issued an opinion that the Guarantee is supported by the full faith and credit of the United States of America.
Debt service and servicer fee payments on the Note are made to the Trustee semi-annually (June 4 and December 4) by the Cooperative. The Trustee deposits all such receipts in the Trust account. The Trustee is authorized by the Trust Agreement to invest all funds in the Trust account at the direction of CFC in certain eligible investments that mature no later than the business day next preceding the day (June 15 and December 15) such amounts are to be distributed to the Certificateholders and the Servicer. The interest earned on the investments is distributed to the Cooperative. Any funds that are not so invested must be held by the Trustee in the Trust account. The Trustee may not reinvest any returns of principal or investment earnings on eligible invest- ments and the Trustee may not sell any eligible investment prior to its maturity except, at the direction of CFC, to preserve the value of the corpus of the Trust.
On or before five business days after each date on which payments are made on the Certificates, the Trustee is obligated to supply the holders of such Certificate a report provided by the Servicer, which includes certain pertinent information as to how the payment is to be allocated to principal, interest, servicer fees and premium, if any, as well as the principal balance outstanding after such payment.
The fiscal year of the Trust is the calendar year. Within the prescribed period of time for tax reporting purposes, after the end of each calendar year during the term of the Trust Agreement, the Trustee is obligated to prepare and mail to each Certificateholder of record for the Trust, at any time during each year, a report setting forth the information as is reasonably necessary for the preparation of such Certificateholder's Federal income tax return.
Payments of principal on the Certificates are scheduled to be repaid over a period of thirteen years which began in 1990. The principal payments over the next 5 years and thereafter are as follows:
		 1996 $ 1,250,000 		 1997 1,400,000 		 1998 1,550,000 		 1999 1,725,000 		 2000 1,925,000 	 Thereafter 4,475,000
		 Total $ 12,325,000
The Certificates are not subject to full redemption prior to December 15, 1997. Thereafter, such Certificates are subject to optional redemption, for the entire remaining balance and without premium, upon redemption or purchase of the related Note. The Trust Agreement will terminate after payment in full has been made on the Certificates issued thereunder.
2. TAX STATUS OF THE TRUST
Milbank, Tweed, Hadley & McCloy, counsel to CFC, has advised CFC with respect to the Trust that, in its opinion, (i) the Trust will not be classified as an association taxable as a corporation, but will be classified as a grantor trust and (ii) each Certificateholder will be treated for Federal income tax purposes as the owner of an undivided fractional interest in each of the assets held by the Trust.
It is expected that the Trust will not have any liability for Federal or state income taxes for the current or future years.
3. INTEREST AND SERVICER FEE ACCOUNTING
The Trust records interest income as it is earned and accrues interest expense and servicer fees as they are incurred. Servicer fees represent ten basis points of the outstanding principal balance of the Certificates and the Note.
4. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following disclosure of the estimated fair value of financial instruments is made in accordance with FASB Statement No. 107, "Disclosure about Fair Value of Financial Instruments." Whenever possible, the estimated fair value amounts have been determined using quoted market information as of December 31, 1995, along with other valuation methodologies which are summarized below. Below is a summary of significant methodologies used in estimating fair value amounts and a schedule of fair values at December 31, 1995.
The carrying amounts reported for Interest Receivable, Interest Payable - Grantor Trust Certificates, and Servicer Fees Payable approximate fair values due to the short term maturity of these instruments.
Note Receivable
Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.
Rural Electric Cooperative Grantor Trust Certificates
The fair value of the Certificate is estimated using quoted market prices for similar notes over the same remaining maturities.
The carrying and estimated fair values of the Trust's financial instruments as of December 31, 1995, are as follows:
					 Carrying Fair 					 Value Value
Assets: Interest Receivable 86,689 86,689 Note Receivable 12,325,000 15,248,661
Liabilities: Interest Payable - Grantor Trust Certificates 84,118 84,118 Servicer Fees Payable 2,571 2,571 Rural Electric Cooperative Grantor Trust Certificates 12,325,000 15,257,064
	 RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (TEX-LA) 1988 T-1
				 Exhibit Index
Exhibit Number Description of Exhibit
4.1 Form of Trust Agreement, including the form of Rural Electric 	 Cooperative Grantor Trust Certificate (incorporated by reference 	 to Exhibit 4.1 to Registration Statement on Form S-1 	 [No. 33-20166]).
10.1 Loan Agreement (incorporated by reference to Exhibit 10.1 to 	 Registration Statement on Form S-1 [No. 33-20166]).
10.2 Loan Guarantee and Servicing Agreement (incorporated by reference to 	 Exhibit 10.2 to Registration Statement on Form S-1 [No. 33-20166]).