Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 61

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 61
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 transaction
results in a change in control) which could adversely affect holders of debt securities.

<div align='center'>8</div>

Consolidation, Merger and Sale of Assets

We may not consolidate with
or merge with or into, or convey, transfer or lease all or substantially all of our properties and assets to any person (a “successor
person”) unless:

| ● | we                                                                                             
 are the surviving corporation or the successor person (if other than Redwood) is a corporation 
 organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly  
 assumes our obligations on the debt securities and under the indenture; and                    |

| ● | immediately                                                                                 
 after giving effect to the transaction, no Default or Event of Default, shall have occurred 
 and be continuing.                                                                          |

Notwithstanding the above,
any of our subsidiaries may consolidate with, merge into or transfer all or part of its properties to us.

Events of Default

“Event of Default”
means with respect to any series of debt securities, any of the following:

| ● | default in                                                                                                                         
 the payment of any interest upon any debt security of that series when it becomes due and payable, and continuance of such default 
 for a period of 30 days (unless the entire amount of the payment is deposited by us with the trustee or with a paying agent prior  
 to the expiration of the 30-day period);                                                                                           |

| ● | default in                                                               
 the payment of principal of any security of that series at its maturity; |

| ● | default in                                                                                                         
 the deposit of any sinking fund payment, within 30 days when and as due in respect of any security of that series; |

| ● | default in                                                                                                                           
 the performance or breach of any other covenant or warranty by us in the indenture (other than a covenant or warranty that has been  
 included in the indenture solely for the benefit of a series of debt securities other than that series), which default continues     
 uncured for a period of 90 days after we receive written notice from the trustee or Redwood and the trustee receive written notice   
 from the holders of at least 25% in principal amount of the outstanding debt securities of that series as provided in the indenture; |

| ● | certain voluntary                                                             
 or involuntary events of bankruptcy, insolvency or reorganization of Redwood; |

| ● | any other Event                                                                                                               
 of Default provided with respect to debt securities of that series that is described in the applicable