changes in prepayment rates, prevailing interest rates and other economic factors, which may
limit the usefulness of, and be directly contrary to the assumptions used in preparing the
information included in, the offering document. See "Underlying Certificates" in the Multifam-
ily Base Offering Circular.
Each Underlying Certificate provides for monthly distributions, including any prepayments
and other unscheduled recoveries of the Mortgage Loans underlying such Underlying Certifi-
cate, and is further described in the table contained in Exhibit B to this Supplement. The table
also sets forth information regarding approximate weighted average remaining terms to
maturity, loan ages and mortgage rates of Mortgage Loans underlying the related Ginnie Mae
Multifamily Certificates.
The Ginnie Mae Multifamily Certificates underlying the Underlying Certificates consist of
Ginnie Mae Project Loan Certificates deposited into the related Underlying Trusts (collectively,
with the Group 1 Trust PLCs, the "Trust PLCs").
The Trust CLCs (Group 1)
Each Trust CLC is based on and backed by a single Mortgage Loan secured by a multifamily
project under construction and insured by the Federal Housing Administration ("FHA")
pursuant to an FHA Insurance Program described under "FHA Insurance Programs" in this
Supplement. Ginnie Mae Construction Loan Certificates are generally issued monthly by the
related Ginnie Mae Issuer as construction progresses on the related multifamily project and as
advances are insured by FHA. Prior to the issuance of Ginnie Mae Construction Loan Certifi-
cates, the Ginnie Mae Issuer must provide Ginnie Mae with supporting documentation
regarding advances and disbursements on the Mortgage Loan and must satisfy the prerequisites
for issuance as described in Chapter 32 of the MBS Guide. Each Ginnie Mae Construction Loan
Certificate may be redeemed for a pro rata share of a Ginnie Mae Project Loan Certificate that
bears the same interest rate as the Ginnie Mae Construction Loan Certificate.
The original maturity of a Ginnie Mae Construction Loan Certificate is at least 200% of the
construction anticipated by FHA for the multifamily project. The stated maturity of the Ginnie
Mae Construction Loan Certificates may be extended after issuance at the request of the related
Ginnie Mae Issuer with the prior written approval of Ginnie Mae. With respect to Ginnie Mae
Construction Loan Certificates issued on or prior to December 31, 2002, prior to approving any
extension request, Ginnie Mae requires that all of the holders of all related Ginnie Mae
Construction Loan Certificates consent to the extension of the term to maturity. With respect to
Ginnie Mae Construction Loan Certificates issued after December 31, 2002, prior to approving
any extension request, Ginnie Mae requires that the contracted security purchaser, the entity
bound under contract with the related Ginnie Mae issuer to purchase all of the Ginnie Mae
Construction Loan Certificates related to a particular multifamily project consent to the
extension of the term to maturity. The Sponsor, as the holder or contracted security purchaser
of the Trust CLCs and any previously issued or hereafter existing Ginnie Mae Construction Loan
Certificates relating to the Trust CLCs identified in Exhibit A to this supplement (the "Sponsor
CLCs"), has waived its right and the right of all future holders of the Sponsor CLCs, including
the Trustee, as the assignee of the Sponsor's rights in the Trust CLCs, to withhold consent to any
extension requests, provided that the length of the extension does not, in combination with any
previously granted extensions related thereto, exceed the term of the underlying Mortgage
Loan insured by FHA. In addition, as a condition to the transfer of the Sponsor CLCs and the
Trust CLCs, the Sponsor Agreement will require the Sponsor to obtain from each purchaser of
Sponsor CLCs, and the Trust Agreement will require the Trustee to obtain from each purchaser
of Trust CLCs, a written agreement pursuant to which each such purchaser will agree
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