Common use of Buy-in of Government Securities Clause in Contracts

Buy-in of Government Securities. Regulations issued under the Government Securities Act of 1986 require GS&Co. to initiate buy-in procedures for mortgage-backed securities that have been purchased for Client and that remain in a fail-to-receive status for more than 60 calendar days (referred to below as “fully paid fails”). Mandatory buy-ins are also required to complete a sale by Client (referred to below as “sell order fails”) of government securities which have not been received from Client within 30 calendar days after the settlement date (or in the case of mortgage-backed securities, 60 calendar days after settlement date). The Securities Industry and Financial Market Association Buy-in Procedures for Mortgage Backed Securities and the Securities Industry and Financial Market Association Buy-in Procedures for Government Securities permit the use of alternatives other than purchasing securities (e.g., securities may be borrowed, substituted or bought back) in closing out fully paid fails and sell order fails and also provide an exemption for short sales.

Buy-in of Government Securities. Regulations issued under the Government Securities Act of 1986 require GS&Co. to initiate buy-in procedures for mortgage-backed securities that have been purchased for Client and that remain in a fail-to-receive status for more than 60 calendar days (referred to below as “fully paid fails”). Mandatory buy-ins are also required to complete a sale by Client (referred to below as “sell order fails”) of government securities which have not been received from Client within 30 calendar days after the settlement date (or in the case of mortgage-backed securities, 60 calendar days after settlement date). The Securities Industry and Financial Bond Market Association Buy-in Procedures for Mortgage Backed Securities and the Securities Industry and Financial Bond Market Association Buy-in Procedures for Government Securities permit the use of alternatives other than purchasing securities (e.g., securities may be borrowed, substituted or bought back) in closing out fully paid fails and sell order fails and also provide an exemption for short sales.

Buy-in of Government Securities. Regulations issued under the Government Securities Act of 1986 require GS&Co. to initiate buy-in procedures for mortgage-backed securities that have been purchased for Client and that remain in a fail-to-receive status for more than 60 calendar days (referred to below as “fully paid fails”"FULLY PAID FAILS"). Mandatory buy-ins are also required to complete a sale by Client (referred to below as “sell order fails”"SELL ORDER FAILS") of government securities which have not been received from Client within 30 calendar days after the settlement date (or in the case of mortgage-backed securities, 60 calendar days after settlement date). The Securities Industry and Financial Bond Market Association Buy-in Procedures for Mortgage Backed Securities and the Securities Industry and Financial Bond Market Association Buy-in Procedures for Government Securities permit the use of alternatives other than purchasing securities (e.g., securities may be borrowed, substituted or bought back) in closing out fully paid fails and sell order fails and also provide an exemption for short sales.

Buy-in of Government Securities. Regulations issued under the Government Securities Act of 1986 require GS&Co. to initiate buy-in procedures for mortgage-backed securities that have been purchased for Client and that remain in a fail-to-receive status for more than 60 calendar days (referred to below as “fully paid fails”). Mandatory buy-ins are also required to complete a sale by Client (referred to below as “sell order fails”) of government securities which have not been received from Client within 30 calendar days after the settlement date (or in the case of mortgage-mortgage- backed securities, 60 calendar days after settlement date). The Securities Industry and Financial Market Markets Association Buy-in Procedures for Mortgage Backed Securities and the Securities Industry and Financial Market Markets Association Buy-in Procedures for Government Securities permit the use of alternatives other than purchasing securities (e.g., securities may be borrowed, substituted or bought back) in closing out fully paid fails and sell order fails and also provide an exemption for short sales.