Base Offering Circular Multifamily
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(c) to prepare all information reports and returns required to be provided to Holders
under federal or state tax provisions concerning REMICs, including Schedule Q to Form 1066,
and to forward these reports and returns to the appropriate Holders; and
(d) to pay when due, on behalf of the affected Trust REMIC or the Trust, the amount of
any federal, state and local taxes imposed thereon, which amount generally will be paid from
assets of the related Trust.
Ginnie Mae does not guarantee the accuracy or timeliness of the tax administration and
reporting.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following discussion, prepared by Ginnie Maes Legal Advisor, is a summary of the
anticipated material federal income tax consequences of the purchase, ownership, and disposition
of the Securities. The summary is based upon laws, regulations, rulings, and decisions now in
effect, all of which are subject to change. The discussion does not purport to deal with the
federal income tax consequences to all categories of investors, some of which may be subject to
special rules. The discussion focuses primarily on investors who will hold the Securities as
capital assets (generally, property held for investment) within the meaning of section 1221 of
the Code, although much of the discussion is applicable to other investors as well. Investors
should note that, although final regulations under the REMIC Provisions of the Code (the
REMIC Regulations) have been issued by the U.S. Treasury, no currently effective regulations
or other administrative guidance have been issued with respect to certain provisions of the Code
that are or may be applicable to Holders, particularly the provisions dealing with market discount
and stripped debt instruments. Although the Treasury issued final regulations dealing with
original issue discount (OID) and premium (such regulations, the OID Regulations), the OID
Regulations do not address directly the treatment of Regular Securities (as defined below).
Furthermore, the REMIC Regulations do not address all of the issues that arise in connection
with the formation and operation of a REMIC. Hence, definitive guidance cannot be provided
with respect to many aspects of the tax treatment of Holders. Moreover, there can be no
assurance that the Internal Revenue Service (the Service) will not take positions that would be
materially adverse to investors. Finally, the summary does not purport to address the anticipated
state income tax consequences to investors of owning and disposing of the Securities.
Consequently, investors should consult their own tax advisors in determining the federal, state,
local, foreign, and any other tax consequences to them of the purchase, ownership, and
disposition of the Securities.
General
With respect to each Trust, counsel to the Trust (Trust Counsel) will deliver a separate
opinion generally to the effect that, assuming timely filing of a REMIC election and compliance
with all provisions of the related Trust Agreement and the other issuance and closing documents,
the Trust, or one or more segregated pools of Trust Assets (each, an Asset Pool), will qualify
as one or more REMICs (each, a Trust REMIC) for federal income tax purposes. Trust
Counsel also will deliver its opinion that the discussion set forth in this Offering Circular under
Certain Federal Income Tax Consequences, as amplified or modified by Trust Counsel in the