determination that the REMIC status of either Trust REMIC has been lost or that a substantial risk exists
that this status will be lost for the then current taxable year.
Upon any termination of the Trust, the Holder of any outstanding Security (other than a Residual or
Notional Class Security) will be entitled to receive that Holders allocable share of the Class Principal
Balance of that Class plus any accrued and unpaid interest thereon at the applicable Interest Rate, and
any Holder of any outstanding Security of the Notional Class will be entitled to receive that Holders
allocable share of any accrued and unpaid interest thereon at the applicable Interest Rate. The Residual
Holders will be entitled to their pro rata share of any assets remaining in the Trust REMICs after payment
in full of the amounts described in the foregoing sentence. However, any remaining assets are not likely
to be significant.
YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS
General
The prepayment experience of the Mortgage Loans will affect the Weighted Average Lives of and
the yields realized by investors in the Securities.
Mortgage Loan principal payments may be in the form of scheduled or unscheduled
amortization.
The terms of each Mortgage Loan provide that, following any applicable lockout period, and
upon payment of any applicable Prepayment Penalty, the Mortgage Loan may be voluntarily
prepaid in whole or in part.
In addition, in some circumstances FHA may permit a Mortgage Loan to be refinanced or
partially prepaid without regard to lockout or Prepayment Penalty provisions. See Character-
istics of the Ginnie Mae Multifamily Certificates and the Related Mortgage Loans in Exhibit A to
this Supplement.
The condemnation of, or occurrence of a casualty loss on, the Mortgaged Property securing any
Mortgage Loan or the acceleration of payments due under the Mortgage Loan by reason of
default may also result in a prepayment at any time.
Mortgage Loan prepayment rates are likely to fluctuate over time. No representation is made as to
the expected Weighted Average Lives of the Securities or the percentage of the original unpaid principal
balance of the Mortgage Loans that will be paid to Holders at any particular time. A number of factors
may influence the prepayment rate.
While some prepayments occur randomly, the payment behavior of the Mortgage Loans may be
influenced by a variety of economic, tax, geographic, demographic, legal and other factors.
These factors may include the age, geographic distribution and payment terms of the Mortgage
Loans; remaining depreciable lives of the underlying properties; characteristics of the borrowers;
amount of the borrowers equity; the availability of mortgage financing; in a fluctuating interest
rate environment, the difference between the interest rates on the Mortgage Loans and prevailing
mortgage interest rates; the extent to which the Mortgage Loans are assumed or refinanced or the
underlying properties are sold or conveyed; changes in local industry and population as they
affect vacancy rates; population migration; and the attractiveness of other investment
alternatives.
These factors may also include the application of lockout periods or the assessment of
Prepayment Penalties. For a more detailed description of the lockout and Prepayment Penalty
provisions of the Mortgage Loans, see Characteristics of the Ginnie Mae Multifamily Certificates
and the Related Mortgage Loans in Exhibit A to this Supplement.
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