on your security may occur much earlier than
the final distribution date.
Support securities will be more sensitive to
rates of principal payments than other
securities. If principal prepayments result in
principal distributions on any distribution
date equal to or less than the amount needed
to produce scheduled payments on the PAC
and scheduled classes, the related support
classes will not receive any principal distri-
bution on that date. If prepayments result in
principal distributions on any distribution
date greater than the amount needed to pro-
duce scheduled payments on the related PAC
and scheduled classes for that distribution
date, this excess will be distributed to the
related support classes.
The rate of principal payments on the un-
derlying certificates will directly affect the
rate of principal payments on the group 2
and group 3 securities. The underlying cer-
tificates will be sensitive in varying degrees
to
• the rate of payments of principal (includ-
ing prepayments) of the related mortgage
loans, and
• the priorities for the distribution of princi-
pal among the classes of the related under-
lying series.
As described in the related underlying certifi-
cate disclosure documents, certain of the
underlying certificates included in trust asset
group 2 and group 3 are not entitled to
distributions of principal until certain classes
of the related underlying series have been
retired and, accordingly, distributions of
principal of the related mortgage loans for
extended periods may be applied to the dis-
tribution of principal of those classes of cer-
tificates having priority over the underlying
certificates. In addition, certain of the under-
lying certificates included in trust asset
group 2 and group 3 are support classes that
are entitled to receive principal distributions
only if scheduled payments have been made
on other specified classes of the related un-
derlying series (or if specified classes have
been retired). Accordingly, underlying cer-
tificates may receive no principal distribu-
tions for extended periods of time or may
receive principal payments that vary widely
from period to period.
One of the underlying certificates has been
issued with a class notional balance that is
calculated on the basis of the class principal
balance of a support class of the underlying
series. In addition, the principal entitlement
of certain of the underlying certificates in-
cluded in trust asset group 2 and group 3 on
any payment date is calculated on the basis
of schedules; no assurance can be given that
the underlying certificates will adhere to
their schedules. Further, prepayments on the
related mortgage loans may have occurred at
rates faster or slower than those initially
assumed.
This supplement contains no information as
to whether the underlying certificates have
performed as originally anticipated. Addi-
tional information as to the underlying certif-
icates may be obtained by performing an
analysis of current principal factors of the
underlying certificates in light of applicable
information contained in the related underly-
ing certificate disclosure documents.
The securities may not be a suitable invest-
ment for you. The securities, especially the
group 2 and 3 securities and, in particular,
support, principal only, inverse floating rate,
interest only inverse floating rate and
residual classes, are not suitable investments
for all investors.
In addition, although the sponsor intends to
make a market for the purchase and sale of
the securities after their initial issuance, it
has no obligation to do so. There is no assur-
ance that a secondary market will develop,
that any secondary market will continue, or
that the price at which you can sell an invest-
ment in any class will enable you to realize a
desired yield on that investment.
You will bear the market risks of your invest-
ment. The market values of the classes are
likely to fluctuate. These fluctuations may be
significant and could result in significant
losses to you.
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