Base Offering Circular - Multifamily
482090
50
Residual Securities
Under each Trust Agreement, transfers of Residual Securities to Non-U.S. Persons will
be prohibited.
Reporting and Tax Administration
Regular Securities
To the extent required by statute, regulation, or administrative ruling, reports will be
made at least annually to Holders of record of Regular Securities and to the Service with respect
to (i) interest paid or accrued on the Securities, (ii) OID, if any, accrued on the Securities, and
(iii) information necessary to compute the accrual of any market discount or the amortization of
any premium on the Securities.
Residual Securities
For purposes of federal income tax reporting and administration, a Trust REMIC
generally will be treated as a partnership, and the related Residual Holders as its partners. A
Trust REMIC will file an annual return on Form 1066 and will be responsible for providing
information to Residual Holders sufficient to enable them to report properly their shares of the
REMICs taxable income or loss, although it is anticipated that such information actually will be
supplied by the Tax Administrator. The REMIC Regulations require reports to be made by a
REMIC to its Residual Holders each calendar quarter in order to permit such Holders to compute
their taxable income accurately. A person that holds a Residual Security as a nominee for
another person is required to furnish those quarterly reports to the person for whom it is a
nominee within 30 days of receiving such reports. A REMIC is required to file all such quarterly
reports for a taxable year with the Service as an attachment to the REMICs income tax return for
that year. As required by the Code, a Trust REMICs taxable year will be the calendar year.
Residual Holders should be aware that their responsibilities as Holders of the residual
interest in a Trust REMIC, including the duty to account for their shares of the Trust REMICs
income or loss on their returns, continue for the life of the Trust REMIC, even after the principal
and interest on their Residual Securities have been paid in full.
Under the REMIC Regulations, a Residual Holder must be designated as the REMICs
tax matters person (TMP) if there is more than one such Holder. The TMP generally has
responsibility for overseeing and providing notice to the other Residual Holders of certain
administrative and judicial proceedings regarding the REMICs tax affairs, although other
Holders of the Residual Securities of the same REMIC would be able to participate in such
proceedings in appropriate circumstances. Ginnie Mae will obtain from the Residual Holders an
irrevocable appointment to perform the functions of each Trust REMICs TMP. Unless
otherwise indicated in the related Offering Circular Supplement, Ginnie Mae will assign its rights
and obligations under such appointment to the Tax Administrator for the related Trust REMIC.
The Tax Administrator for a Trust REMIC will prepare and file the REMICs federal and state
income tax and information returns.