Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 107

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 107
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 interests in grantor trusts, we would be treated as owning an undivided beneficial interest in the mortgage
loans held by the grantor trust.

Second, not more than 25%
of the value of our total assets may be represented by securities (including securities of TRSs), other than those securities includable
in the 75% asset test.

Third, of the investments
included in the 25% asset class, and except for certain investments in other REITs, our qualified REIT subsidiaries and TRSs, the value
of any one issuer’s securities may not exceed 5% of the value of our total assets, and we may not own more than 10% of the total
vote or value of the outstanding securities of any one issuer. Certain types of securities we may own are disregarded as securities solely
for purposes of the 10% value test, including, but not limited to, securities satisfying the “straight debt” safe harbor,
securities issued by a partnership that itself would satisfy the 75% income test if it were a REIT, any loan to an individual or an estate,
any obligation to pay rents from real property and any security issued by a REIT. In addition, solely for purposes of the 10% value test,
the determination of our interest in the assets of a partnership in which we own an interest will be based on our proportionate interest
in any securities issued by the partnership, excluding for this purpose certain securities described in the Code. From time to time we
may own securities (including debt securities) of issuers that do not qualify as a REIT, a qualified REIT subsidiary or a TRS. We intend
that our ownership of any such securities will be structured in a manner that allows us to comply with the asset tests described above.

Fourth, not more than 20%
(25% for taxable years beginning after July 30, 2008 and before January 1, 2018) of the value of our total assets may be represented
by the securities of one or more TRSs. We currently own, directly or indirectly, interests in companies that have elected, together with
us, to be treated as our TRSs, and we may acquire securities in additional TRSs in the future. So long as each of these companies qualifies
as a TRS of ours, we will not be subject to the 5% asset test, the 10% voting securities limitation or the 10% value