Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 27

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 27
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 not been discharged in full or such declaration rescinded or annulled within       
 60 days; or (ii) from a failure to pay the principal of any such debt when due and payable       
 at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, 
 and such defaulted payment shall not have been made, waived or extended within 60 days;          |

| (7) | a                                                                                                  
 final judgment for the payment of $25 million or more (excluding any amounts covered by insurance) 
 rendered against us or any of our subsidiaries, which judgment is not discharged, stayed,          
 vacated, paid or otherwise satisfied within 60 days after (i) the date on which the                
 right to appeal thereof has expired if no such appeal has commenced; or (ii) the date              
 on which all rights to appeal have been extinguished; or                                           |

| (8) | certain                                                                                      
 events of bankruptcy, insolvency or reorganization of the Company or any of our “significant 
 subsidiaries” (as defined below) (the “bankruptcy provisions”).                              |

A “significant subsidiary”
is a subsidiary that is a “significant subsidiary” as defined under Rule 1-02(w) of Regulation S-X under the Exchange
Act; provided, that, in the case of a subsidiary that meets the criteria of clause (1)(iii) of the definition thereof but not clause
(1)(i) or (1)(ii) thereof, such subsidiary shall not be deemed to be a significant subsidiary unless the subsidiary’s
income from continuing operations before income taxes, exclusive of amounts attributable to any non-controlling interests, for the last
completed fiscal year prior to the date of such determination exceeds $25 million.

If an event of default occurs
and is continuing, the trustee by notice to us, or the holders of at least 25% principal amount of the outstanding notes, by notice to
us and the trustee, may, and the trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid
interest on all the notes to be due and payable. Upon such a declaration, such principal and accrued and unpaid interest will be due
and payable immediately. However, upon an event of default arising out of the bankruptcy provisions (except with respect to any significant
subsidiary), the aggregate principal amount and accrued and unpaid interest will be due and payable immediately.

<div align='center'>S-16</div>

Notwithstanding the foregoing,
the indent