Under certain circumstances, the Trustee has the option to purchase the Trust Assets, thereby
effecting early retirement of the Securities. See Description of the Securities Termination in this
Supplement.
Accretion Directed Classes
Class FA and Z are Accretion Directed Classes. The related Accrual Amount will be applied to
making principal distributions on these Classes as described in this Supplement. Class SA is a Notional
Class whose Class Notional Balance is determined by reference to the Class Principal Balance of FA.
Each of Class FA and Z has the AD designation in the suffix position, rather than the prefix position,
in its class principal type because it does not have principal payment stability through the applicable
pricing prepayment assumption. Although the Accretion Directed Classes are entitled to receive payments
from the related Accrual Amounts, they do not have principal payment stability through any prepayment
rate significantly higher than 0% PSA.
Securities that Receive Principal on the Basis of Schedules
As described in this Supplement, the TAC Class will receive principal payments in accordance with
a schedule calculated on the basis of, among other things, a Structuring Rate. See Terms Sheet
Scheduled Principal Balances. However, whether such Class will adhere to its schedule and receive
Scheduled Payments on a Distribution Date will largely depend on the level of prepayments
experienced by the Mortgage Loans.
The TAC Class exhibits an Effective Rate of constant prepayment rates at which such Class will
receive Scheduled Payments. That rate may differ from the Structuring Rate used to create the related
principal balance schedule. Based on the Modeling Assumptions, the initial Effective Rate for the TAC
Class is as follows:
TAC Class
Initial Effective Rate
FA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
366% PSA
The principal payment stability of the TAC Class will be supported by the Support Class.
If the Class supporting the TAC Class is retired before the TAC Class is retired, the
outstanding TAC Class will no longer have an Effective Rate and will become more sensitive to
prepayments on the Mortgage Loans.
There is no assurance that the Mortgage Loans will have the characteristics assumed in the
Modeling Assumptions, which were used to determine the initial Effective Rate. If the initial Effective
Rate was calculated using the actual characteristics of the Mortgage Loans, the initial Effective Rate
could differ from that shown in the above table. Therefore, even if the Mortgage Loans were to prepay
at the initial Effective Rate shown for the Class in the above table, that Class could fail to receive
Scheduled Payments.
Moreover, the Mortgage Loans will not prepay at any constant rate. Non-constant prepayment rates
can cause the TAC Class not to receive Scheduled Payments, even if prepayment rates average the
Effective Rate, for that Class. Further, the Effective Rate for the TAC Class can change or cease to exist
depending on the actual characteristics of the Mortgage Loans.
If the Mortgage Loans prepay at rates that are generally below the Effective Rate for the TAC Class,
the amount available to pay principal on the Securities may be insufficient to produce Scheduled
Payments on such TAC Class, and its Weighted Average Life may be extended, perhaps significantly.
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