424B3 1 prospectussupplement.htm VARIABLE RATE SUBORDINATED DEBENTURE PROSPECTUS SUPPLEMENT Filed Pursuant to Rule 424(b)(3)




Filed Pursuant to Rule 424(b)(3)

SEC File #333-150223

     

1st FRANKLIN FINANCIAL CORPORATION

     

VARIABLE RATE

SUBORDINATED DEBENTURES

     

PERIODS OF JUNE 19, 2008 THRU JUNE 25, 2008

AND

JUNE 26, 2008 THRU JULY 2, 2008

     
     

Period of June 19, 2008 Thru June 25, 2008

 


Effective

Yield (a)


Interest

Rate (b)

Interest

Adjustment

Period (c)

Minimum

Investment

Amount

     
 

3.05

3.00

1 Month

$500.00

 

3.05

3.00

3 Months

$500.00

 

4.86

4.75

6 Months

$500.00

 

5.07

4.95

1 Year

$500.00

 

4.60

4.50

2 Years

$500.00

 

4.86

4.75

4 Years

$500.00

     

Period of June 26, 2008 Thru July 2, 2008

 


Effective

Yield (a)


Interest

Rate (b)

Interest

Adjustment

Period (c)

Minimum

Investment

Amount

     
 

3.05

3.00

1 Month

$500.00

 

3.05

3.00

3 Months

$500.00

 

4.86

4.75

6 Months

$500.00

 

5.07

4.95

1 Year

$500.00

 

4.60

4.50

2 Years

$500.00

 

4.86

4.75

4 Years

$500.00

     

(a)

Compounded daily based on 365/366 year.

(b)

Interest is earned daily, and will be paid promptly upon a holder’s request, otherwise principal and interest are payable at maturity.

(c)

At the end of this period, the interest rate will be adjusted.  Debentures mature four years from their date of issue, subject to earlier redemption as provided for therein.  Redemption at any other time is at the discretion of the Company and is subject to an interest penalty.  Absent redemption by the holder at maturity, the term of the Debenture will be extended for one four-year period, subject to the same redemption rights.

     

This is not an offer to sell, or the solicitation of an offer to purchase, these securities.  Any offer or sale will be made only by a prospectus, which is available by visiting us at 135 East Tugalo Street, Toccoa, Georgia, by writing us at P.O. Box 880, Toccoa, Georgia 30577 or by calling us at (706) 886-7571 or (800) 282-0709 (in GA) or (800) 700-7943 (outside of GA).

     

We are not a bank, and investments are not bank deposits or obligations and are not insured by the FDIC, SPIC or any other federal or state agency.  Investors must rely on the Company’s ability to pay principal and interest on the Debentures.

     

Prospectus Supplement Dated June 19, 2008