Base Offering Circular Multifamily
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ERISA CONSIDERATIONS
Distributions of principal and interest with respect to the Securities are guaranteed by
Ginnie Mae. The Ginnie Mae Guaranty is supported by the full faith and credit of the United
States of America. Ginnie Mae does not guarantee the payment of any Prepayment Penalties.
A Department of Labor regulation (the Regulation) provides that, if an employee
benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended
(ERISA), or section 4975 of the Code (each, a Plan) acquires a guaranteed governmental
mortgage pool certificate, then, for purposes of the fiduciary responsibility provisions of ERISA
and the prohibited transaction provisions of ERISA and the Code, the Plans assets include the
certificate and all rights with respect to the certificate under applicable law, but do not, solely by
reason of the Plans holding of that certificate, include any of the mortgages underlying the
certificate. For purposes of the Regulation, a guaranteed governmental mortgage pool certificate
is a certificate backed by, or evidencing an interest in, specified mortgages or participation
interests in mortgages and with respect to which interest and principal payable pursuant to the
certificate is guaranteed by the United States or an agency or instrumentality of the United
States. The effect of the Regulation is that the Sponsor, the Trustee and other Persons providing
services with respect to mortgages in the pool will not be subject to the fiduciary responsibility
provisions of Title I of ERISA or to the prohibited transaction provisions of ERISA and the
Code, merely by reason of the Plans investment in a certificate. The Regular and MX Securities
will qualify as guaranteed governmental mortgage pool certificates within the meaning of the
Regulation.
Plan Investors should be aware that the Plan Asset Regulations do not relieve fiduciaries,
other parties in interest, or disqualified persons from provisions of ERISA and the Code other
than those indicated above, including, for example, the general fiduciary responsibility
provisions of section 404 of ERISA and the requirement of section 401(a) of the Code that a
qualified plan must operate for the exclusive benefit of the employees of the employer
maintaining the plan and their beneficiaries. Plan Investors should consult with their advisors to
determine whether the purchase, holding, or resale of a Security could give rise to a transaction
that is prohibited or is not otherwise permissible under either ERISA or the Code. Prospective
Plan Investors also should be aware that because the Securities will not be rated by any rating
agency, certain prohibited transaction exemptions that would otherwise be available will not
apply to the purchase or holding of the Securities.
Governmental plans and certain church plans, while not subject to the fiduciary
responsibility provisions of ERISA or the prohibited transaction provisions of ERISA and the
Code, may nevertheless be subject to local, state or other federal laws that are substantially
similar to the foregoing provisions of ERISA and the Code. Fiduciaries of any such plans should
consult with their counsel before purchasing any of the Securities.
Residual Securities may not be transferred to a Plan Investor.