Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 30

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 30
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 trust or power conferred on the trustee. The indenture provides
that in the event an event of default has occurred and is continuing, the trustee will be required in the exercise of its powers to use
the degree of care that a prudent person would exercise or use under the same circumstances in the conduct of its own affairs. The trustee,
however, may refuse to follow any direction that conflicts with law or the indenture or that the trustee determines is unduly prejudicial
to the rights of any other holder (provided, however, that the trustee shall not have an affirmative duty to determine
whether any such direction is prejudicial to the rights of any other holder) or that would involve the trustee in personal liability.
Prior to taking any action under the indenture, the trustee will be entitled to indemnification and/or security satisfactory to it in
its sole discretion against all losses and expenses caused by taking or not taking such action.

The indenture provides that
if a default occurs and is continuing and is known to the trustee, the trustee must send to each holder notice of the default within
90 days after the trustee becomes aware thereof. However, except in the case of a default in the payment of principal of or interest
on any note, the trustee may withhold notice if and so long as a committee of trust officers of the trustee in good faith determines
that withholding notice is in the interests of the holders. In addition, we are required to deliver to the trustee, within 120 days after
the end of each fiscal year, a certificate indicating whether the signers thereof know of any default that occurred during the previous
year. We are also required to deliver to the trustee, within 30 days after the occurrence thereof, written notice of any events that
would constitute a default, the status of those events and what action we are taking or propose to take in respect thereof.

Payments of any redemption
price, Change of Control Repurchase Event repurchase price, principal and interest that are not made when due will accrue interest per
annum at the then-applicable interest rate from the required payment date.

Consolidation, Merger and Sale of Assets

The following description
replaces the description set forth under “Description of Debt Securities—Consolidation, Merger, and Sale of Assets”
in the accompanying prospectus in its entirety.

The indenture provides that
we will not (x) consolidate with or merge with or into another person or (y) sell, lease or otherwise transfer all or substantially
all