Tax Treatment of Regular Securities .................................................................................24 Tax Treatment of Residual Securities ................................................................................36 REMIC Qualification........................................................................................................47 Tax Treatment of MX Securities ......................................................................................48 Exchanges of MX Classes and Regular Classes ..................................................................50 Taxation of Foreign Holders of REMIC Securities and MX Securities ...................................50 Reporting and Tax Administration .....................................................................................51 Backup Withholding ........................................................................................................52 STATE TAX CONSIDERATIONS ..............................................................................................52 ERISA CONSIDERATIONS .......................................................................................................53 LEGAL INVESTMENT CONSIDERATIONS ...............................................................................53 SECONDARY MARKET ............................................................................................................54 APPENDIX I--Class Types APPENDIX II--Glossary Base Offering Circular – Multifamily 3 RICHMOND 801041v3