Base Offering Circular – Multifamily 16 Agreement or a Ginnie Mae Platinum Guaranty Agreement, as the case may be.  Ginnie Mae guarantees the timely payment of principal of and interest on each Trust MBS, and this obligation is backed by the full faith and credit of the United States.  Ginnie Mae does not guarantee the payment of any Prepayment Penalties. The Sponsor will represent and warrant in the Trust Agreement, among other things, that (i) the information set forth in the Offering Circular Supplement and Final Data Statement including the principal balance and Certificate Rate for each Trust MBS as of the Closing Date, is true and correct as of the Closing Date and (ii) each Ginnie Mae Construction Loan Certificate conveyed to the Trust, if any, constitutes a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code (but without regard to the rule in Treasury Regulation Section 1.860G- 2(f)(2) that treats a defective obligation as a qualified mortgage or any substantially similar provision).  If  any of these representations and warranties are untrue with respect to any Trust MBS,  the Sponsor, at its option, may (a) cure the breach, (b) substitute another Ginnie Mae Multifamily Certificate for the affected Trust MBS, or (c) with Ginnie Mae’s consent, repurchase the affected Trust MBS from the Trust, in each case only to the extent permitted under the Trust Agreement and REMIC Provisions. The Mortgage Loans underlying each Trust MBS will consist of Mortgage Loans secured by mortgages on real properties that are either residences housing five families or more or nursing facilities (collectively, “Mortgaged Properties”). Each multifamily Mortgage Loan underlying any Trust MBS (other than a Trust MBS issued under the Small Loan Program (as defined below under “The Ginnie Mae Project Loan Certificates”)) bears interest at a Mortgage Rate that is 0.25% to 0.50% per annum greater than the related Certificate Rate, unless Ginnie Mae has given its prior consent to a spread in excess of 0.50% per annum.  Under the Small Loan Program, the Mortgage Rate on the Mortgage Loans backing the Trust MBS is required to be at least 0.50% greater than the Certificate Rate, but there is no maximum limit on this percentage.  Certain Trust MBS may be based on and backed by Mortgage Loans secured by a mark-to-market project developed under HUD’s Office of Multifamily Housing Assistance Restructuring Processing Procedures (the “RX Program”).  The Mortgage Rate of Mortgage Loans underlying any such Trust MBS is required to be at least 0.50% greater than the Certificate Rate of the related Trust MBS. Each Ginnie Mae Issuer will perform the routine functions required for servicing of Trust MBS and related Mortgage Loans for which it is responsible, including mortgagor billings, receipt and posting of payments, payment of property taxes and hazard insurance premiums, remittance, collections and customer service.  Each Ginnie Mae Issuer will be obligated under its Certificate Guaranty Agreements with Ginnie Mae to service the Mortgage Loans in accordance with FHA requirements and with generally accepted practices in the mortgage lending industry.   Each Ginnie Mae Issuer’s responsibilities with respect to its Mortgage Loans will include: · collection of all principal and interest payments, Prepayment Penalties, if any, and payments made by the borrower or borrowers toward escrows established for taxes and insurance premiums; · maintenance of necessary hazard insurance policies;