Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 132

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 132
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ifying that interest paid on a debt
security is not subject to withholding tax because it is effectively connected with the conduct by the Non-U.S. Holder of a trade or
business within the United States.

Any such effectively connected
interest generally will be subject to U.S. federal income tax at the regular rates. A Non-U.S. Holder that is a corporation may also
be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively
connected interest, as adjusted for certain items.

The certifications described
above must be provided to the applicable withholding agent prior to the payment of interest and must be updated periodically. Non-U.S.
Holders that do not timely provide the applicable withholding agent with the required certification, but that qualify for a reduced rate
under an applicable income tax treaty, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund
with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income
tax treaty.

Sale or Other Taxable Disposition

A Non-U.S. Holder will not
be subject to U.S. federal income tax on any gain realized upon the sale, exchange, redemption, retirement or other taxable disposition
of a debt security (such amount excludes any amount allocable to accrued and unpaid interest, which generally will be treated as interest
and may be subject to the rules discussed above in “Material U.S. Federal Income Tax Considerations—Federal Income Tax
Considerations for Holders of Our Capital Stock and Debt Securities—Taxation of Holders of Our Debt Securities—Non-U.S. Holders—Payments
of Interest”) unless:

| · | the gain is                                                                                                                         
 effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required          
 by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain 
 is attributable); or                                                                                                                |

| · | the Non-U.S.                                                                                                                          
 Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition 
 and certain other requirements are met.                                                                                               |

Gain described in the first
bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder
that is a corporation also may