to the material terms of the waiver and to not transfer the Sponsor CLC or Trust CLC, as
applicable, to any subsequent purchaser that has not executed a written agreement substantially
similar in form and substance to the agreement executed by such purchaser. The waiver
effected by the Sponsor, together with the transfer restrictions in the Sponsor Agreement and
Trust Agreement, will effectively permit the related Ginnie Mae Issuer to extend the maturity of
the Ginnie Mae CLCs in its sole discretion, subject only to the prior written approval of Ginnie
Mae.
Each Trust CLC will provide for the payment to the Trust of monthly payments of interest
equal to a pro rata share of the interest payments on the underlying Mortgage Loan, less
applicable servicing and guaranty fees. The Trust will not be entitled to receive any payments of
principal collected on the related Mortgage Loan as long as the Trust CLC is outstanding.
During such period any prepayments and other recoveries of principal (other than proceeds
from the liquidation of the Mortgage Loan) or any Prepayment Penalties on the underlying
Mortgage Loan received by the Ginnie Mae Issuer will be deposited into a non-interest bearing
escrow account (the "P&I Custodial Account"). Any such amounts will be held for distribution
to the Trust (unless otherwise negotiated between the Ginnie Mae issuer and the contracted
security purchaser) on the earliest of (i) the liquidation of the mortgage loan, (ii) at the
related Ginnie Mae Issuer's option, either (a) the first Ginnie Mae Certificate Payment Date of
the Ginnie Mae Project Loan Certificate following the conversion of the Ginnie Mae Construc-
tion Loan Certificate or (b) the date of conversion of the Ginnie Mae Construction Loan
Certificate to a Ginnie Mae Project Loan Certificate, and (iii) the applicable Maturity Date.
However, the Holders of the Securities will not receive any such amounts until the next
Distribution Date and will not be entitled to receive any interest on such amounts.
At any time following the final endorsement of the underlying Mortgage Loan by FHA, prior
to the Maturity Date and upon satisfaction of the prerequisites for conversion outlined in
Chapter 32 of the MBS Guide, Ginnie Mae Construction Loan Certificates will be redeemed for
Ginnie Mae Project Loan Certificates. The Ginnie Mae Project Loan Certificates will be issued at
the identical interest rate as the Ginnie Mae Construction Loan Certificates. The aggregate
principal amount of the Ginnie Mae Project Loan Certificates may be less than or equal to the
aggregate amount of advances that has been disbursed and insured on the Mortgage Loan
underlying the related Ginnie Mae Construction Loan Certificates. Any difference between the
principal balance of the Ginnie Mae Construction Loan Certificates and the principal balance of
the Ginnie Mae Project Loan Certificates issued at conversion will be disbursed to the holders of
the Ginnie Mae Construction Loan Certificates as principal upon conversion.
The Trust PLCs
Each Trust PLC will be based on and backed by one or more multifamily Mortgage Loans
with an original term to maturity of generally no more than 40 years.
Each Trust PLC will provide for the payment to the registered holder of that Trust PLC of
monthly payments of principal and interest equal to the aggregate amount of the scheduled
monthly principal and interest payments on the Mortgage Loans underlying that Trust PLC, less
applicable servicing and guaranty fees. In addition, each such payment will include any
prepayments and other unscheduled recoveries of principal of, and any Prepayment Penalties
on, the underlying Mortgage Loans to the extent received by the Ginnie Mae Issuer during the
month preceding the month of the payment.
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