Constituent REMICs Clause Samples
The Constituent REMICs clause defines the specific Real Estate Mortgage Investment Conduits (REMICs) that make up a larger structured finance transaction. It typically outlines how individual pools of mortgage loans are grouped into separate REMIC entities, each with its own set of rules and tax treatment. By clearly identifying and organizing these constituent REMICs, the clause ensures proper administration, compliance with tax regulations, and accurate allocation of cash flows and losses among investors.
Constituent REMICs. (a) CMSI and the Trustee will make the appropriate elections to treat the Trust Fund, and the affairs of the Trust Fund will be conducted so as to qualify the Trust Fund, for federal income tax purposes as two separate constituent REMICs - the pooling REMIC and the lower-tier REMIC. There is no upper-tier REMIC. The pooling REMIC will be the applicable constituent REMIC for purposes of section 3.21. The assets of the pooling REMIC will consist of the mortgage loans, such amounts as may from time to time be held in the certificate account, any insurance policies relating to a mortgage loan, and property that secured a mortgage loan and that has been acquired by foreclosure or deed in lieu of foreclosure and all proceeds thereof. Classes IA-PO, IA-IO, IIA-IO, and the class P regular interests described below, are designated as the regular interests in the pooling REMIC within the meaning of Internal Revenue Code Section 860G(a)(1). Class PR is designated as the residual interest in the pooling REMIC within the meaning of Internal Revenue Code Section 860G(a)(2). The assets of the lower-tier REMIC will consist of the class P regular interests described below, the Trustee’s rights under any certificate insurance policy and reserve fund, any retail reserve fund, and any assets in the lower-tier REMIC account described below. Classes IA-1 through I▇-▇, ▇▇▇-▇, and B-1 through B-6 are designated as the regular interests in the lower-tier REMIC. Class LR is designated as the residual interest in the lower-tier REMIC.
Constituent REMICs. (a) CMSI and the Trustee will make the appropriate elections to treat the Trust Fund, and the affairs of the Trust Fund will be conducted so as to qualify the Trust Fund, for federal income tax purposes as three separate constituent REMICs - the pooling REMIC, the lower-tier REMIC, and the upper-tier REMIC. The pooling REMIC will be the applicable constituent REMIC for purposes of section 3.21. The assets of the pooling REMIC will consist of the mortgage loans, such amounts as may from time to time be held in the certificate account, any insurance policies relating to a mortgage loan, and property that secured a mortgage loan and that has been acquired by foreclosure or deed in lieu of foreclosure and all proceeds thereof. Classes IA-IO, IIA-IO, IIIA-IO, A-PO, and the class P regular interests described below, are designated as the regular interests in the pooling REMIC within the meaning of Internal Revenue Code Section 860G(a)(1). Class PR is designated as the residual interest in the pooling REMIC within the meaning of Internal Revenue Code Section 860G(a)(2). The assets of the lower-tier REMIC will consist of the class P regular interests described below, the Trustee’s rights under any certificate insurance policy and reserve fund, any retail reserve fund, and any assets in the lower-tier REMIC account described below. Classes I▇-▇, ▇▇-▇, ▇▇-▇, ▇▇-▇, IIA-1, IIIA-1and B-1 through B-6, and any class L regular interests described below, are designated as the regular interests in the lower-tier REMIC. Class LR is designated as the residual interest in the lower-tier REMIC. The assets of the upper-tier REMIC will consist of any class L regular interests described below, and any assets in the upper-tier REMIC account described below. Classes I▇-▇, ▇▇-▇, ▇▇-▇ and IA-6 are designated as the regular interests in the upper-tier REMIC. Class R is designated as the residual interest in the upper-tier REMIC.
Constituent REMICs. CMSI and the Trustee will make the appropriate elections to treat the Trust Fund, and the affairs of the Trust Fund will be conducted so as to qualify the Trust Fund, for federal income tax purposes as a single constituent REMIC– the lower-tier REMIC. The lower-tier REMIC will be the applicable constituent REMIC for purposes of section 3.22. There is no pooling REMIC or upper-tier REMIC. The assets of the lower-tier REMIC will consist of the mortgage loans, such amounts as may from time to time be held in the certificate account and any retail reserve fund, any insurance policies relating to a mortgage loan, and property that secured a mortgage loan and that has been acquired by foreclosure or deed in lieu of foreclosure and all proceeds thereof. Classes A-1 through A-▇, ▇-▇▇, ▇-▇▇, and B-1 through B-6 are designated as the regular interests in the lower-tier REMIC within the meaning of Internal Revenue Code Section 860G(a)(1). Class LR is designated as the residual interest in the lower-tier REMIC within the meaning of Internal Revenue Code Section 860G(a)(2).