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 TAC classes, the related support classes
will not receive any principal distribution on
that date (other than from any applicable
accrual amounts). 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 TAC 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
securities. The underlying certificates 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 underlying
series.
As described in the underlying certificate
disclosure document, the underlying certifi-
cates are support classes that are entitled to
receive principal distributions only if sched-
uled payments have been made on other
specified classes of the related underlying
series (or if specified classes have been re-
tired). Accordingly, the underlying certifi-
cates may receive no principal distributions
for extended periods of time or may receive
principal payments that vary widely from pe-
riod to period.
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 underlying cer-
tificate disclosure document.
The securities may not be a suitable invest-
ment for you. The securities, especially the
group 2 securities and, in particular, the sup-
port, interest only, principal only, inverse
floating rate, special, accrual 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.
The secondary markets for mortgage-related
securities have experienced periods of illi-
quidity and can be expected to do so in the
future. Illiquidity can have a severely adverse
effect on the prices of classes that are espe-
cially sensitive to prepayment or interest rate
risk or that have been structured to meet the
investment requirements of limited catego-
ries of investors.
The residual securities may experience sig-
nificant adverse tax timing consequences. Ac-
cordingly, you are urged to consult tax
advisors and to consider the after-tax effect of
ownership of a residual security and the suit-
ability of the residual securities to your in-
vestment objectives. See "Certain Federal
Income Tax Consequences" in this supple-
ment and in the base offering circular.
You are encouraged to consult advisors re-
garding the financial, legal, tax and other
aspects of an investment in the securities.
You should not purchase the securities of
any class unless you understand and are able
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