SECURITY GROUP 8
Sensitivity of Class IM to Prepayments
Assumed Price 16.5%*
PSA Prepayment Assumption Rates
165%
203%
400%
500%
521%
9.7%
9.7%
8.1%
1.6%
0.1%
* The price does not include accrued interest. Accrued interest has been added to the price in
calculating the yields set forth in the table.
** Indicates that investors will suffer a loss of virtually all of their investment.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following tax discussion, when read in conjunction with the discussion of "Certain
Federal Income Tax Consequences" in the Base Offering Circular, describes the material
federal income tax considerations for investors in the Securities. However, these two tax
discussions do not purport to deal with all federal tax consequences applicable to all categories
of investors, some of which may be subject to special rules.
U.S. Treasury Circular 230 Notice
The discussion contained in this Supplement and the Base Offering Circular as to
certain federal tax consequences is not intended or written to be used, and cannot be
used, for the purpose of avoiding United States federal tax penalties. Such discussion is
written to support the promotion or marketing of the transactions or matters ad-
dressed in this Supplement and the Base Offering Circular. Each taxpayer to whom
such transactions or matters are being promoted, marketed or recommended should
seek advice based on its particular circumstances from an independent tax advisor.
REMIC Elections
In the opinion of Milbank, Tweed, Hadley & McCloy LLP, the Trust will constitute a Double
REMIC Series for federal income tax purposes. Separate REMIC elections will be made for the
Pooling REMIC and the Issuing REMIC.
Regular Securities
The Regular Securities will be treated as debt instruments issued by the Issuing REMIC for
federal income tax purposes. Income on the Regular Securities must be reported under an
accrual method of accounting.
The Class DO, EO and TO Securities are Principal Only Securities. Principal Only
Securities are treated for federal income tax purposes as having been issued with an amount of
original issue discount ("OID") equal to the difference between their principal balance and
their issue price.
The Class IA, IB, IC, IG, IK, IM, IO, IS, IT, IX, JI, KI, MI, PS, SA, SC, SD, SE, SH, SI and SP
Securities are "Interest Weighted Securities" as described in "Certain Federal Income Tax
Consequences Tax Treatment of Regular Securities Interest Weighted Securities and Non-
VRDI Securities" in the Base Offering Circular. Although the tax treatment of Interest Weighted
Securities is not entirely certain, Holders of the Interest Weighted Securities should expect to
accrue all income on these Securities (other than income attributable to market discount or de
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