Common use of Tax Treatment of the Notes Clause in Contracts

Tax Treatment of the Notes. By purchasing the Original Class M Notes (including any Original Class M Notes sold by virtue of a sale of related MAC Notes), Holders and Beneficial Owners agree to treat such Notes as indebtedness of Freddie Mac for U.S. federal income tax purposes, unless such Holders or Beneficial Owners are required to treat the Original Class M Notes in some other manner pursuant to a final determination by the Internal Revenue Service or by a court of competent jurisdiction (each a “Final Tax Determination”). By purchasing the Class B Notes, Holders agree to treat such Class B Notes as notional principal contracts for U.S. federal income tax purposes (except for U.S. withholding tax purposes) and, as a result, as (i) a deemed loan and (ii) an on-market swap, each of which is tax accounted for in the manner described in the Offering Circular, unless such Holders are required to treat the Class B Notes in some other manner pursuant to a Final Tax Determination. Holders and Beneficial Owners, as applicable, further agree (a) to prepare their U.S. federal income tax returns on the basis that (i) the Original Class M Notes (including any Original Class M Notes sold by virtue of a sale of related MAC Notes) will be treated as indebtedness of Freddie Mac and/or (ii) the Class B Notes will be treated as (1) a deemed loan and

Tax Treatment of the Notes. By purchasing the Original Class M Notes (including any Original Class M Notes sold by virtue of a sale of related MAC Notes), Holders and Beneficial Owners agree to treat such Notes as indebtedness of Freddie Xxxxxxx Mac for U.S. federal income tax purposes, unless such Holders or Beneficial Owners are required to treat the Original Class M Notes in some other manner pursuant to a final determination by the Internal Revenue Service or by a court of competent jurisdiction (each a “Final Tax Determination”). By purchasing the Class B Notes, Holders agree to treat such Class B Notes as notional principal contracts for U.S. federal income tax purposes (except for U.S. withholding tax purposes) and, as a result, as (i) a deemed loan and (ii) an on-market swap, each of which is tax accounted for in the manner described in the Offering Circular, unless such Holders are required to treat the Class B Notes in some other manner pursuant to a Final Tax Determination. Holders and Beneficial Owners, as applicable, further agree (a) to prepare their U.S. federal income tax returns on the basis that (i) the Original Class M Notes (including any Original Class M Notes sold by virtue of a sale of related MAC Notes) will be treated as indebtedness of Freddie Xxxxxxx Mac and/or (ii) the Class B Notes will be treated as (1) a deemed loan and