Base Offering Circular Multifamily
53
Although the matter is not free from doubt, an investor that acquires in one transaction a
combination of MX Classes that may be exchanged for a Regular Class should be treated as
owning the Regular Class.
Exchanges of MX Classes and Regular Classes
An exchange, as described under Description of SecuritiesModification and
Exchange herein, by a Beneficial Owner of (i) REMIC Securities for MX Securities, (ii) MX
Securities for interests in the related REMIC Securities or (iii) MX Securities for other MX
Securities will not be a taxable exchange. Such Beneficial Owner will be treated as continuing
to own after the exchange the same combination of interests in the related REMIC Securities that
it owned immediately prior to the exchange.
Taxation of Foreign Holders of REMIC Securities and MX Securities
Regular Securities and MX Securities
Interest, including OID, paid on a Regular Security or MX Security to a Non-U.S. Person
generally will be treated as portfolio interest and, therefore, will not be subject to any United
States withholding tax, provided that (i) such interest is not effectively connected with a trade or
business in the United States of the Holder, and (ii) the Trustee (or other person who would
otherwise be required to withhold tax) is provided with appropriate certification on Form
W-8IMY or Form W-8BEN (or substitute form) signed under penalties of perjury that the
beneficial owner of the Security is a Non-U.S. Person (Foreign Person Certification). If
Foreign Person Certification is not provided, interest (including OID) paid on such a Security
may be subject to a 30% withholding tax, the applicable treaty rate, or the then applicable rate
for backup withholding. See Backup Withholding.
A Holder of a Regular or MX Security who is not a U.S. Person and is seeking the
protection of an income tax treaty with respect to the imposition of United States withholding tax
generally will be required to obtain a taxpayer identification number from the Internal Revenue
Service in advance and to follow certain certification requirements establishing under penalties
of perjury that such Holder is entitled to an exemption from United States withholding tax on
interest from the Regular or MX Securities under a tax treaty between the United States and its
country of residence. To claim this exemption, such Certificateholder should submit a
completed Form W-8BEN (or substitute form) with its name and address and the statement
described above.
Prospective investors are strongly urged to consult their own tax advisors with respect to
the withholding regulations governing payments on the Regular and MX Securities.
Residual Securities
Under each Trust Agreement, transfers of Residual Securities to Non-U.S. Persons will
be prohibited.