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Debt Call Put Final
Instrument Date1 Date2 Maturity Date
CMO A-2 N/A N/A 12/15/95
CMO A-3 6/15/03 6/15/08 6/15/13
CMO C-4 1/31/04 1/31/04 1/31/09
1 The call date is the earliest date on which petitioner, if
it so chose, could repay the debt in full.
2 The put date is the earliest date on which the holder had
the right to require petitioner to pay any remaining unpaid
principal balance plus accrued interest.
Each series of CMOs was collateralized by pools of mortgages
owned by petitioner and held by it as trustee.5 Petitioner made
principal payments to holders in the greater amount of (1) the
minimum scheduled payments, or (2) monthly and other payments of
principal petitioner received on the mortgages serving as
collateral. Petitioner structured the CMOs to permit holders of
certain classes to receive payment in full before other classes.
The terms of each CMO required petitioner to apply all
payments of principal and interest on the subject mortgages into
a sinking fund for the benefit of the holders. Petitioner was
required to make payments to the sinking fund semiannually. The
balance of the sinking fund was then used to make semiannual
principal payments on the senior class of bonds until they were
fully retired. Thereafter, additional amounts of principal were
paid semiannually to the holders of the class of bonds next in
5 The mortgages used as collateral for the outstanding CMOs
as of Jan. 1, 1985, were entirely first lien, conventional
residential mortgages having fixed rates of interest.
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Last modified: May 25, 2011