Company: CIMO
Filing Date: 2025-10-01
Form Type: S-3ASR
Source: 0001193125-25-226772
Chunk: 39

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-10-01
Form: S-3ASR
Chunk 39
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 loan that is secured by both
real property and personal property, if the fair market value of such personal property does not exceed 15% of the total fair market value of all property securing the loan, then the personal property securing the loan will be treated as real
property for purposes of determining whether the interest on such loan is qualifying income for purposes of the 75% gross income test.

We expect that the
MBS in which we invest generally will be treated either as interests in a grantor trust or as interests in a REMIC for U.S. federal income tax purposes and that all interest income from such MBS will be qualifying income for the 95% gross income
test. In the case of MBS treated as interests in grantor trusts, we would be treated as owning an undivided beneficial ownership interest in the mortgage loans held by the grantor trust. The interest on such mortgage loans would be qualifying income
for purposes of the 75% gross income test to the extent that the obligation is secured by real property, as discussed above. In the case of MBS treated as interests in a REMIC, income derived from REMIC interests generally will be treated as
qualifying income for purposes of the 75% and 95% gross income tests. If less than 95% of the assets of the REMIC are real estate assets, however, then only a proportionate part of our interest in the REMIC and income derived from the interest will
qualify for purposes of the 75% gross income test. In addition, some REMIC securitizations include imbedded interest swap or cap contracts or other derivative instruments that potentially could produce
non-qualifying income for the holder of the related REMIC securities.

We may purchase and sell Agency MBS through
to-be-announced forward contracts (“TBAs”), and recognize income or gains from the disposition of those TBAs, through dollar roll transactions or otherwise.
While there is no direct authority with respect to the qualification of income or gains from dispositions of TBAs as gains from the sale of real property (including interests in real property and interests in mortgages on real property) or other
qualifying income for purposes of the 75% gross income test, we intend to treat income and gains from TBAs as qualifying income for purposes of the 75% gross income test, based on an opinion of counsel substantially to the effect for purposes of the
75% REIT gross income test, any gain recognized by us in connection with