Base Offering Circular Multifamily
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A Beneficial Owner proposing to effect an exchange must so notify the Trustee through
the Beneficial Owners Book-Entry Depository participant. The procedures for effecting
exchanges of MX Securities are described in Description of the Securities -- Modification and
Exchange in the related Offering Circular Supplement.
The Securities to be exchanged must be in the correct exchange proportions. The Trustee
will verify that the proposed proportions ensure that the principal and interest entitlements of the
Securities received equal such entitlements of the Securities surrendered. If there is an error, the
exchange will not occur until such error is corrected. Unless rejected for error, the notice of
exchange will become irrevocable two Business Days prior to the proposed exchange.
The first distribution on a REMIC Security or an MX Security received in an exchange
will be made on the Distribution Date in the month following the month of the exchange. Such
distribution will be made to the Holder of record as of the Record Date in the month of
exchange.
THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
The Government National Mortgage Association is a wholly-owned corporate
instrumentality of the United States within the Department of Housing and Urban Development.
Section 306(g) of Title III of the National Housing Act of 1934, as amended (the Housing
Act), authorizes Ginnie Mae to guarantee the timely payment of the principal of, and interest
on, certificates or securities that are based on and backed by a pool of mortgage loans insured by
the Federal Housing Administration under the Housing Act or coinsured by the FHA and certain
mortgage lenders approved by the FHA (each, a Mortgage Loan).
Section 306(g) of the Housing Act provides that the full faith and credit of the United
States is pledged to the payment of all amounts which may be required to be paid under any
guaranty under this subsection. To meet its obligations under its guaranties, Ginnie Mae is
authorized, under section 306(d) of the Housing Act, to borrow from the U.S. Treasury with no
limitations as to amount.
GINNIE MAE GUARANTY
Ginnie Mae guarantees the timely payment of principal and interest on each Class of
Securities (in accordance with the terms of those Classes as specified in the related Offering
Circular Supplement). The Ginnie Mae Guaranty is backed by the full faith and credit of the
United States of America. The Ginnie Mae Guaranty will be set forth on the Certificated
Securities. Ginnie Mae does not guarantee the payment of any Prepayment Penalties.
THE GINNIE MAE MULTIFAMILY CERTIFICATES
General
The Trust Assets for a Series of Securities may include Ginnie Mae Multifamily
Certificates conveyed by the Sponsor to a Trust pursuant to the terms and conditions of the Trust
Agreement (collectively, the Trust MBS). Ginnie Mae will have guaranteed the timely
payment of principal and interest on each Trust MBS in accordance with a Certificate Guaranty