Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 132

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 132
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 for the debt security. Any gain or loss generally
will be capital gain or loss, and will be long-term capital gain or loss if the U.S. Holder has held the debt security for more than
one year at the time of such sale or other taxable disposition. Otherwise, such gain or loss will be short-term capital gain or loss.
Long-term capital gains recognized by certain non-corporate U.S. Holders, including individuals, generally will be taxable at reduced
rates. The deductibility of capital losses is subject to limitations.

Non-U.S. Holders

Payments of Interest

Interest paid on a debt security
to a Non-U.S. Holder that is not effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United
States generally will not be subject to U.S. federal income tax, or withholding tax, provided that:

| · | the Non-U.S.                                                                                                                        
 Holder does not, actually or constructively, own 10% or more of the total combined voting power of all classes of our voting stock; |

| · | the Non-U.S.                                                                                                     
 Holder is not a controlled foreign corporation related to us through actual or constructive stock ownership; and |

| · | either (1) the                                                                                                                         
 Non-U.S. Holder certifies in a statement provided to the applicable withholding agent under penalties of perjury that it is not a      
 United States person and provides its name and address; (2) a securities clearing organization, bank or other financial institution    
 that holds customers’ securities in the ordinary course of its trade or business and holds the debt security on behalf of the          
 Non-U.S. Holder certifies to the applicable withholding agent under penalties of perjury that it, or the financial institution between 
 it and the Non-U.S. Holder, has received from the Non-U.S. Holder a statement under penalties of perjury that such holder is not       
 a United States person and provides the applicable withholding agent with a copy of such statement; or (3) the Non-U.S. Holder         
 holds its debt security directly through a “qualified intermediary” (within the meaning of the applicable Treasury Regulations)        
 and certain conditions are satisfied.                                                                                                  |

If a Non-U.S. Holder does
not satisfy the requirements above, such Non-U.S. Holder will be subject to withholding tax of 30%, subject to a reduction in or an exemption
from withholding on such interest as a result of an applicable tax treaty. To claim such entitlement, the