Group of Trust Assets actually will occur or the level of LIBOR at any time after the date of this
Supplement. See "Certain Federal Income Tax Consequences" in the Base Offering Circular.
The Regular Securities generally will be treated as "regular interests" in a REMIC for
domestic building and loan associations and "real estate assets" for real estate investment trusts
("REITs") as described in "Certain Federal Income Tax Consequences" in the Base Offering
Circular. Similarly, interest on the Regular Securities will be considered "interest on obliga-
tions secured by mortgages on real property" for REITs.
Residual Securities
The Class RR Securities will represent the beneficial ownership of the Residual Interest in
the Pooling REMIC and the beneficial ownership of the Residual Interest in the Issuing REMIC.
The Residual Securities, i.e., the Class RR Securities, generally will be treated as "residual
interests" in a REMIC for domestic building and loan associations and as "real estate assets" for
REITs, as described in "Certain Federal Income Tax Consequences" in the Base Offering
Circular, but will not be treated as debt for federal income tax purposes. Instead, the Holders of
the Residual Securities will be required to report, and will be taxed on, their pro rata shares of
the taxable income or loss of the Trust REMICs, and these requirements will continue until
there are no outstanding regular interests in the respective Trust REMICs. Thus, Residual
Holders will have taxable income attributable to the Residual Securities even though they will
not receive principal or interest distributions with respect to the Residual Securities, which
could result in a negative after-tax return for the Residual Holders. Even though the Holders of
the Class RR Securities are not entitled to any stated principal or interest payments on the
Class RR Securities, the Trust REMICs may have substantial taxable income in certain periods,
and offsetting tax losses may not occur until much later periods. Accordingly, a Holder of the
Class RR Securities may experience substantial adverse tax timing consequences. Prospective
investors are urged to consult their own tax advisors and consider the after-tax effect of
ownership of the Residual Securities and the suitability of the Residual Securities to their
investment objectives.
Prospective Holders of Residual Securities should be aware that, at issuance, based on the
expected prices of the Regular and Residual Securities and the prepayment assumption
described above, the residual interests represented by the Residual Securities will be treated as
"noneconomic residual interests" as that term is defined in Treasury regulations.
The United States Department of the Treasury has recently issued temporary regulations
that may accelerate the time for withholding with respect to excess inclusions allocable to
foreign investors in certain types of pass-through entities that hold the Residual Securities. The
regulations are effective as to allocations of income on or after August 1, 2006. You should
consult your tax advisor concerning these regulations and their potential application to an
investment by you in the Residual Securities.
MX Securities
For a discussion of certain federal income tax consequences applicable to the MX Classes,
see "Certain Federal Income Tax Consequences Tax Treatment of MX Securities", " Ex-
changes of MX Classes and Regular Classes" and " Taxation of Foreign Holders of REMIC
Securities and MX Securities" in the Base Offering Circular.
Investors should consult their own tax advisors in determining the federal, state,
local and any other tax consequences to them of the purchase, ownership and
disposition of the Securities.
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