or Rate used to create the related principal balance schedule. Based on the Modeling
Assumptions, the initial Effective Ranges for the PAC and TAC Classes are as follows:
Class
Initial Effective Ranges
PAC I Classes
PA, PB and PC (in the aggregate) ..........................
100% PSA through 250% PSA
PAC II Classes
CA ....................................................................................
130% PSA through 250% PSA
PX ....................................................................................
132% PSA through 250% PSA
TAC Classes
OT and TX (in the aggregate) ................................
184% PSA through 240% PSA
The principal payment stability of the PAC I Classes will be supported by the PAC II, TAC
and Support Classes.
The principal payment stability of the PX Class will be supported by the related Support
Classes.
The principal payment stability of the CA Class will be supported by the TAC and related
Support Classes.
The principal payment stability of the TAC Classes will be supported by the related
Support Classes.
If all of the Classes supporting a given Class are retired before the Class being
supported is retired, the outstanding Class will no longer have an Effective Range and
will become more sensitive to prepayments on the related Mortgage Loans.
There is no assurance that the related Mortgage Loans will have the characteristics assumed
in the Modeling Assumptions, which were used to determine the initial Effective Ranges. If the
initial Effective Ranges were calculated using the actual characteristics of the related Mortgage
Loans, the initial Effective Ranges could differ from those shown in the above tables. Therefore,
even if the Mortgage Loans were to prepay at a constant rate within the initial Effective Range
shown for any Class in the above tables, that Class could fail to receive Scheduled Payments.
Moreover, the Mortgage Loans will not prepay at any constant rate. Non-constant prepay-
ment rates can cause any PAC or TAC Class not to receive Scheduled Payments, even if
prepayment rates remain within the initial Effective Range, if any, for that Class. Further, the
Effective Range for any PAC or TAC Class can narrow, shift over time or cease to exist
depending on the actual characteristics of the related Mortgage Loans.
If the related Mortgage Loans prepay at rates that are generally below the Effective Range
for any PAC or TAC Class, the amount available to pay principal on the Securities may be
insufficient to produce Scheduled Payments on such related PAC or TAC Class, if any, and its
Weighted Average Life may be extended, perhaps significantly.
S-15