Base Offering Circular - Single Family
19
with the yield to maturity that would result based on the price that the investor pays for the Securities and upon the
investors own determinations about anticipated rates of prepayments, foreclosures, substitutions and cash payments
by the Sponsor with respect to the Mortgage Loans.
THE TRUSTS
Certain Policies of the Trusts
No Trust Agreement will authorize a Trust to engage in any activities other than the issuance of the related
Securities (or Pooling REMIC Interests) and the purchase, servicing and disposition of the related Trust Assets and
certain related activities. Each Trust Agreement may be amended only as set forth below under Amendment.
Amendment
Subject to the limitations set forth below, the Sponsor and the Trustee (with Ginnie Maes consent) may
amend any Trust Agreement for any purpose, without the consent of any Holder, provided the Trustee receives an
Opinion of Counsel to the effect that the proposed amendment will not result in a significant risk that any related
Trust REMIC will lose its status as a REMIC. For that purpose, a significant risk is a risk that would have prevented
counsel from giving an unqualified opinion with respect to the REMIC status of any related Trust REMIC had such
amendment been an original term of the Trust Agreement. The Sponsor and the Trustee may not amend any Trust
Agreement, however, if the effect of that amendment would be to alter the timing or amount of any required
distribution of principal or interest (including distributions made pursuant to the Ginnie Mae Guaranty) to any
Holder, or the right of any Holder to institute suit for the enforcement of any payment, without the consent of each
affected Holder.
The Trustee
The Trustee may resign at any time by giving written notice to Ginnie Mae. Upon notice of the Trustees
resignation, Ginnie Mae will appoint a successor Trustee. Ginnie Mae also may remove the Trustee and appoint a
successor if the Trustee breaches its obligations under the Trust Agreement, if the Trustee ceases to be eligible to
continue as the Trustee under the related Trust Agreement or if the Trustee becomes incapable of acting, or is
adjudged a bankrupt or becomes insolvent, or a receiver for the Trustee or its property is appointed, or any public
officer takes control of the Trustee or its property for the purpose of rehabilitation, conservation or liquidation of
that property. Any resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the acceptance of the appointment by a successor Trustee.
Tax Matters Person
The Tax Administrator will serve as the agent for the Tax Matters Person of each related Trust REMIC.
Each Holder of a Residual Security, by its acquisition of such Security, consents to the appointment of the Tax
Administrator as such agent on behalf of such Holder if that Holder would by virtue of its ownership percentage be
treated as the Tax Matters Person for the related Trust REMIC. No successor agent may be appointed without the
consent of Ginnie Mae.
Tax Administrator
The Tax Administrator, which may be the same person as the Trustee, generally is responsible for the
federal and state tax administration of the Trust and the related Trust REMIC or Trust REMICs. Foremost among
the Tax Administrators duties will be the preparation of the income tax returns and reports of the Trust and the
related Trust REMIC or Trust REMICs and the related underlying tax accounting. Additional information about the
duties and activities of the Tax Administrator is set forth in Certain Federal Income Tax Consequences.