Base Offering Circular - Multifamily
482090
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should note that, although the Treasury has issued final regulations under the REMIC Provisions
of the Code (the REMIC Regulations), no currently effective regulation or other administrative
guidance has 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 (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 related
Offering Circular Supplement, is correct and complete in all material respects. The foregoing
opinions will be based on existing law, but there can be no assurance that the law will not change
or that contrary positions will not be taken by the Service.
The Securities (other than any MX Securities) will be designated either as one or more
classes of regular interests in a Trust REMIC (Regular Securities), which generally are
treated as debt for federal income tax purposes, or as residual interests in one or more Trust
REMICs (Residual Securities), which generally are not treated as debt for such purposes, but
rather as representing rights and responsibilities with respect to the taxable income or loss of the
related Trust REMIC. The Offering Circular Supplement for each Trust will indicate which of
the Securities in the Trust will be designated as Regular Securities and which will be designated
as Residual Securities. In certain cases, a single Residual Security may represent the residual
interest in more than one of the Trust REMICs relating to a particular Trust. In such cases, the
discussion of Residual Securities set forth below should be interpreted as applying to each
residual interest separately.
Securities held by a domestic building and loan association (a DB&L) will constitute
assets described in section 7701(a)(19)(C)(xi) of the Code, Regular Securities held by a financial
asset securitization investment trust (a FASIT) will qualify for treatment as permitted assets
within the meaning of section 860L(c)(1)(G) of the Code; Securities held by a real estate
investment trust (REIT) will constitute real estate assets within the meaning of section