Base Offering Circular Multifamily
482090
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can be any Business Day other than the last Business Day of the month. The notice must contain
the outstanding Class Principal balance (or Class Notional Balance) of the Securities to be
included in the exchange and the proposed exchange date. Any such notice is required to be
delivered to the Trustee in writing at its Corporate Trust Office.
The Securities to be exchanged must be in the correct exchange proportions. The Trustee
will verify that the proposed proportions ensure that the principal and interest entitlements of the
Securities received equal such entitlements of the Securities surrendered. If there is an error, the
Trustee will notify the Book-Entry Depository participant of the error and will not process the
exchange until such error is corrected. Unless rejected for error, the notice of exchange will
become irrevocable two Business Days prior to the proposed exchange.
A fee will be payable to the Trustee in connection with each exchange equal to 1/32 of
1% of the outstanding Class Principal Balance (or Class Notional Balance) of the Securities
surrendered for exchange (but not less than $2,000 or greater than $25,000); provided, however
that no fee will be payable in respect of a Notional Class, unless all Classes involved in an
exchange are Notional Classes. If the notional balance of the Securities surrendered exceeds that
of the Securities received, the fee will be based on the latter. The fee must be paid not later than
two Business Days prior to the exchange.
The first distribution on a REMIC Security or an MX Security received in an exchange
will be made on the Distribution Date in the month following the month of the exchange. Such
distribution will be made to the Holder of record as of the Record Date in the month of
exchange.
THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
The Government National Mortgage Association is a wholly-owned corporate
instrumentality of the United States within the Department of Housing and Urban Development.
Section 306(g) of Title III of the National Housing Act of 1934, as amended (the Housing
Act), authorizes Ginnie Mae to guarantee the timely payment of the principal of, and interest
on, certificates or securities that are based on and backed by a pool of mortgage loans insured by
the Federal Housing Administration under the Housing Act or coinsured by the FHA and certain
mortgage lenders approved by the FHA (each, an FHA Loan).
Section 306(g) of the Housing Act provides that the full faith and credit of the United
States is pledged to the payment of all amounts which may be required to be paid under any
guaranty under this subsection. To meet its obligations under its guaranties, Ginnie Mae is
authorized, under section 306(d) of the Housing Act, to borrow from the United States Treasury
with no limitations as to amount.
GINNIE MAE GUARANTY
Ginnie Mae guarantees the timely payment of principal and interest on each Class of
Securities (in accordance with the terms of those Classes as specified in the related Offering
Circular Supplement). The Ginnie Mae Guaranty is backed by the full faith and credit of the
United States of America. The Ginnie Mae Guaranty will be set forth on the Securities. Ginnie
Mae does not guarantee the payment of any Prepayment Penalties.