Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 77

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 77
---
 successor  
 depositary is not appointed within 90 days of the notification to us or of our becoming aware of DTC’s ceasing to be so                    
 registered, as the case may be;                                                                                                            |

<div align='center'>19</div>

| ● | we determine,                                                                                        
 in our sole discretion, not to have such securities represented by one or more global securities; or |

| ● | an Event of                                                                                                    
 Default has occurred and is continuing with respect to such series of securities and upon request of a holder, |

we will prepare and deliver certificates for
such securities in exchange for beneficial interests in the global securities. Any beneficial interest in a global security that is exchangeable
under the circumstances described in the preceding sentence will be exchangeable for securities in definitive certificated form registered
in the names that the depositary directs. It is expected that these directions will be based upon directions received by the depositary
from its participants with respect to ownership of beneficial interests in the global securities.

We have obtained the information
in this section and elsewhere in this prospectus concerning DTC and DTC’s book-entry system from sources that are believed to be
reliable, but we take no responsibility for the accuracy of this information.

<div align='center'>20

RESTRICTIONS
ON OWNERSHIP AND TRANSFER AND REPURCHASE OF SHARES</div>

In order that we may meet
the requirements for qualification as a REIT at all times, among other purposes, our charter prohibits any person from acquiring or holding
beneficial ownership of shares of our common stock or preferred stock, or collectively, capital stock, in excess of 9.8%, in number of
shares or value, of the outstanding shares of the related class of capital stock. For this purpose, the term “beneficial ownership”
means beneficial ownership of capital stock by a person, either directly or constructively, including through application of the constructive
ownership provisions of Section 544 of the Code and related provisions.

Under the constructive ownership
rules of Section 544 of the Code, a holder of a warrant generally will be treated as owning the number of shares of capital
stock into which such warrant may be converted. In addition, the constructive ownership rules generally attribute ownership of securities
owned by a corporation, partnership, estate, or trust proportionately to its stockholders, partners, or beneficiaries, respectively.
The rules may also attribute ownership of securities owned by family members to other members of the same family and may treat an
option to purchase securities