Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 45

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 45
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 (2) | that                                                                                          
 issues transferable shares or transferable certificates to evidence its beneficial ownership; |

| (3) | that                                                                                
 would be taxable as a domestic corporation, but for Sections 856 through 860 of the 
 Code;                                                                               |

| (4) | that                                                                                            
 is not a financial institution or an insurance company within the meaning of certain provisions 
 of the Code;                                                                                    |

| (5) | that                                          
 is beneficially owned by 100 or more persons; |

| (6) | not                                                                                            
 more than 50% in value of the outstanding stock of which is owned, actually or constructively, 
 by five or fewer individuals, including certain specified entities, during the last half       
 of each taxable year; and                                                                      |

| (7) | that                                                                                      
 meets other tests, described below, regarding the nature of its income and assets and the 
 amount of its distributions.                                                              |

The Code provides that conditions
(1) to (4), inclusive, must be met during the entire taxable year and that condition (5) must be met during at least 335 days of a taxable
year of 12 months, or during a proportionate part of a taxable year of less than 12 months. Conditions (5) and (6) do not apply until
after the first taxable year for which an election is made to be taxed as a REIT. For purposes of condition (6), the term “individual”
includes a supplemental unemployment compensation benefit plan, a private foundation or a portion of a trust permanently set aside or
used exclusively for charitable purposes, but generally does not include a qualified pension plan or profit sharing trust.

We believe that we have been
organized and have operated in a manner that has allowed us, and will continue to allow us, to satisfy conditions (1) through (7), inclusive,
during the relevant time periods. In addition, our charter provides for restrictions regarding ownership and transfer of our shares that
are intended to assist us in continuing to satisfy the share ownership requirements described in conditions (5) and (6) above. A description
of the share ownership and transfer restrictions relating to our capital stock is contained in the discussion in this prospectus under
the heading “Restrictions on Ownership and Transfer and Repurchase of Shares.” These restrictions, however, do not ensure
that we have previously satisfied, and may not ensure that we will, in all cases, be able to continue to satisfy, the share ownership
requirements described in conditions (5