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 28, 1997 there was one holder 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, 1996 and 1995 				Statement of Income and Expenses, for the 				Years Ended December 31, 1996, 1995 and 1994 				Statement of Cash Flows, for the Years Ended 					December 31, 1996, 1995 and 1994 				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 17, 1996. 			Semi-annual Report to Certificateholders dated December 			15, 1996.
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 28th day of March, 	1997.
	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, 1996 AND 1995, 	 AND FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994 			 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, 1996 and 1995, and the related statements of income and expenses and cash flows for each of the three years in the period ended December 31, 1996. These financial statements are the responsibility of the Trust's management. Our responsibility 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, 1996 and 1995, and the results of its operations and its cash flows for the years ended December 31, 1996, 1995 and 1994, in conformity with generally accepted accounting principles.
March 24, 1997 Washington, D. C.
				
	
	 The accompanying notes are an integral part 		 of these financial statements
		The accompanying notes are an integral part 		 of these financial statements
		 The accompanying notes are an integral part 			 of these financial statements
		 RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (TEX-LA) 1988-T1
			 NOTES TO FINANCIAL STATEMENTS
		 AS OF DECEMBER 31, 1996, 1995 AND 1994
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, bearing 	interest at 9.38% and maturing 2002, 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 investments 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:
			 	1997 $ 1,400,000 	1998 1,550,000 	1999 1,725,000 	2000 1,925,000 	2001 2,125,000 	Thereafter 2,350,000
	Total $ 11,075,000
	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 and recognition 	of conversion fees over the life of the loan.
4. FAIR VALUE OF FINANCIAL INSTRUMENTS
	Use Of Estimates 	 	The preparation of financial statements in conformity with generally 	accepted accounting principles requires management to make estimates 	and assumptions that affect the reported amounts of assets and 	liabilities at the date of the financial statements and the reported 	amounts of expenses during the reported period. The estimates 	involve judgments with respect to, among other things, various 	future factors which are difficult to predict and are beyond the 	control of the Trust. With regards to the fair values below, actual 	amounts could differ from these estimates.
	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, 1996 and 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, 	1996 and 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 Certificates 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, 1996 and 1995, are as follows:
	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]).