WReier-Aviles on DSKGBLS3C1PROD with CFR


CHAPTER III—GOVERNMENT NATIONAL 


MORTGAGE ASSOCIATION, DEPARTMENT OF 


HOUSING AND URBAN DEVELOPMENT 


Part Page 

300 General .................................................................... 581 


310 Bylaws of the Government National Mortgage Association ............................................................... 582 


320 Guaranty of mortgage-backed securities ................ 582 


341–349 [Reserved] 


351–400 [Reserved] 


330 Guaranty of multiclass securities ........................... 587 


340 Fiduciary activities ................................................ 590 


350 Book-entry procedures ............................................ 591 


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PART 300—GENERAL 

Sec. 

300.1 Scope of chapter. 

300.3 Description. 

300.5 Creation and status. 

300.7 Area of operations. 

300.9 Office. 

300.11 Authority of officers. 

300.13 Power of attorney. 

300.15 Exceptions. 

300.17 Audits and reports. 

AUTHORITY: 12 U.S.C. 1723a, unless otherwise noted, and 42 U.S.C. 3535(d). 

SOURCE: 60 FR 42015, Aug. 14, 1995, unless 

otherwise noted. 

§ 300.1 Scope of chapter. 

This chapter consists of general information and does not purport to set 

forth all of the procedures and requirements that apply to the operations of 

the Association. Complete specific information as to any aspect of such operations may be obtained from the office listed in § 300.9. 

§ 300.3 Description. 

The Government National Mortgage 

Association (hereinafter in this chapter 

called the Association, GNMA or 

Ginnie Mae) furnishes fiduciary services to itself and other departments 

and agencies of the Government, and 

guarantees privately issued securities 

backed by trusts or pools of mortgages 

or loans which are insured or guaranteed by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS) and certain other 

loans or mortgages guaranteed or insured by the Government. In the course 

of its business, the Association is referred to as GNMA or Ginnie Mae. 

[66 FR 44265, Aug. 22, 2001] 

§ 300.5 Creation and status. 

The Association is a Government corporation in the Department of Housing 

and Urban Development. It is derived 

from the Federal National Mortgage 

Association, which was partitioned by 

the Congress into two corporations effective September 1, 1968, one of which 

is the Association. The operations of 

the Association are conducted under 

its statutory charter contained in title 

III of the National Housing Act, 12 

U.S.C. 1716, et seq. 

§ 300.7 Area of operations. 

The Association is authorized to conduct its business in any State of the 

United States, the District of Columbia, the Commonwealth of Puerto Rico, 

the Commonwealth of the Northern 

Mariana Islands, and the territories 

and possessions of the United States. 

§ 300.9 Office. 

The Association directs its operations from its office located at 451 

Seventh Street, SW., Washington DC 

20410. 

§ 300.11 Authority of officers. 

The President, each Vice President, 

and each Assistant Vice President of 

the Association are severally expressly 

empowered in the name of the Association to sign all contracts and other 

documents, instruments, and writings 

which call for execution by the Association in the conduct of its business 

and affairs, and to encumber, mortgage, pledge, convey or otherwise alien 

any property which the Association 

may own or in which it may have an 

estate, right, title or interest. In addition, the President, each Vice President, each Assistant Vice President, 

the Secretary of the Association, each 

Assistant Secretary, the Treasurer and 

the Controller shall have the authority 

as may be provided in the Bylaws of 

the Association or as may be delegated 

to them in a manner not inconsistent 

with the Bylaws. 

§ 300.13 Power of attorney. 

In order to efficiently carry out the 

purposes of the Association, the Association may appoint any person its 

true and lawful attorney-in-fact by 

publication in the FEDERAL REGISTER 

or by appointment from the President 

of the Association in writing. Any such 

attorney-in-fact shall have the power 

outlined in the publication or appointment. 

§ 300.15 Exceptions. 

In the conduct of its affairs, in individual cases or classes of cases, the Association reserves the right, consistent 

with law, without prior notice and at 

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§ 300.17 

any time, to alter or waive any of the 

requirements contained in this chapter 

or elsewhere or to impose other and additional requirements; it further reserves the right, without prior notice 

and at any time, to amend or rescind 

any or all of the material set forth 

herein. 

§ 300.17 Audits and reports. 

The Association and its designees 

may at any reasonable time audit the 

books and examine the records of any 

issuer, mortgage servicer, trustee, 

agent or other person bearing on compliance with the requirements of the 

Association’s programs, and the Association may require reasonable and 

necessary reports from such persons. 

PART 310—BYLAWS OF THE GOVERNMENT NATIONAL MORTGAGE 

ASSOCIATION 

AUTHORITY: 12 U.S.C. 1723 and 42 U.S.C. 

3535(d). 

SOURCE: 60 FR 42015, Aug. 14, 1995, unless 

otherwise noted. 

§ 310.1 Bylaws of the Association. 

The bylaws of the Association shall 

be duly adopted by the Secretary of 

Housing and Urban Development pursuant to section 308 of the National 

Housing Act (12 U.S.C. 1723) and shall 

govern the performance of the powers 

and duties granted to or imposed upon 

the Association by law. 

PART 320—GUARANTY OF 

MORTGAGE-BACKED SECURITIES 

Subpart A—Pass-Through Type Securities 

Sec. 

320.1 General. 

320.3 Eligible issuers of securities. 

320.5 Securities. 

320.7 Mortgages. 

320.8 Excess Yield Securities. 

320.9 Pool administration. 

320.10 Financial reporting. 

320.11 Insurance coverage. 

320.12 Integrity. 

320.13 Guaranty. 

320.15 Default. 

320.17 Fees. 

24 CFR Ch. III (4–1–11 Edition) 

Subpart B—Bond-Type Securities 

320.21 General. 

320.23 Eligible issuers. 

320.25 Securities. 

320.27 Mortgages. 

320.29 Guaranty. 

320.31 Default. 

320.33 Fees. 

AUTHORITY: 12 U.S.C. 1721(g) and 1723a(a); 

and 42 U.S.C. 3535(d). 

SOURCE: 60 FR 42015, Aug. 14, 1995, unless 

otherwise noted. 

Subpart A—Pass-Through Type

Securities 

§ 320.1 General. 

The Association is authorized by section 306(g) of the National Housing Act 

(12 U.S.C. 1721(g)) upon such terms and 

conditions as it may deem appropriate, 

to guarantee the timely payment of 

principal of and interest on securities 

that are based on and backed by a trust 

or pool composed of mortgages which 

are insured or guaranteed by FHA, 

FmHA or VA. The Association’s guaranty of mortgage-backed securities is 

backed by the full faith and credit of 

the United States. This subpart is limited to ‘‘modified pass-through’’ securities, and does not purport to set forth 

all the procedures and requirements 

that apply to the issuance and guaranty of such securities. All such transactions are governed by the specific 

terms and provisions of the Association’s Mortgage-Backed Securities 

Guides (MBS Guides) and contracts entered into by the parties. 

§ 320.3 Eligible issuers of securities. 

(a) Eligibility requirements. A mortgage lender, including an instrumentality of a State or local government, 

to be eligible to issue or service mortgage-backed securities guaranteed by 

the Association must satisfy all of the 

following standards: 

(1) Be in good standing as a mortgagee approved by the FHA; 

(2) Be in good standing as a mortgage 

seller or servicer approved by the Federal National Mortgage Association 

(FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), or the Association. Loss of either FNMA approval or FHLMC approval may cause 

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the issuer to become ineligible to issue 

and service the Association’s mortgage-backed securities and constitute a 

default under the applicable guaranty 

or contractual agreement whether or 

not the issuer qualified for new issuer 

approval on the basis of FNMA or 

FHLMC approval; 

(3) Have management with adequate 

experience, and access to adequate facilities to issue or service mortgagebacked securities, as determined by the 

Association; 

(4) Maintain the applicable minimum 

net worth discussed in paragraph (c) of 

this section; and 

(5) Meet the requirements, conditions, and limitations prescribed by the 

Association in this part or the applicable MBS Guides. 

(b) Time of eligibility. The Association 

shall not commit to guarantee, or 

guarantee any issue of mortgagebacked securities unless the mortgage 

lender requesting such commitment or 

guaranty qualifies as an eligible issuer 

both at the time of commitment approval and at the time of the issuance 

of the guaranty. 

(c) Net worth requirements. Issuers 

shall maintain at all times a net worth 

acceptable to the Association of not 

less than the applicable minimum 

amount. The applicable minimum 

amount shall be published in the MBS 

Guides. 

(d) Disqualification. A mortgage lender shall not qualify as an eligible issuer 

at any time in which: 

(1) The lending policies of the issuer 

permit any discrimination based on 

race, religion, color, national origin, 

age, or sex of a borrower; or 

(2) The issuer is not in compliance 

with any rules, regulations, or orders 

issued under title VI of the Civil Rights 

Act of 1964; Executive Order 11063, 

Equal Opportunity in Housing, November 20, 1962; Executive Order 11246, 

Equal Employment Opportunity, issued 

on September 24, 1965 and amended on 

October 13, 1967; title VII of the Civil 

Rights Act of 1968; title VIII of the 

Civil Rights Act of 1968 as amended by 

the Fair Housing Amendments Act of 

1988; or by the FHA or VA. 

(e) Ethics and standards. A mortgage 

lender shall qualify as an eligible 

issuer only so long as it conducts its 

business operations in accordance with 

accepted mortgage banking practices, 

ethics, and standards, as determined by 

the Association, and maintains its 

books and records in accordance with 

generally accepted accounting principles. 

(f) Change in control. Issuers shall notify the Association of any change in 

issuer control. A change in control occurs whenever a new party obtains significant influence over an issuer, as defined by the Association. In a merger 

where the surviving party is not the 

approved issuer and in a consolidation, 

the surviving party must apply formally for approval as a new issuer 

prior to the merger or consolidation 

taking place. In other business combinations, such as a stock sale of an existing issuer, which result in a change 

in control of issuer, the issuer shall 

demonstrate that it continues to meet 

all issuer eligibility requirements prior 

to the business combination being finalized. 

(g) Cross-Default. Related issuers, as 

defined by the Association, shall execute a cross-default agreement, in a 

form prescribed by the Association, 

that authorizes the default of one or 

more related issuers in the event of a 

default by any one of the related 

issuers. Issuers may be granted an exemption from this section, provided 

that they submit a legal opinion, acceptable to the Association, which 

demonstrates that the execution of a 

cross-default agreement would be prohibited by the issuer’s Federal regulator. 

(h) Failure to comply. In the event 

that an issuer subsequently fails to 

comply with any of the requirements 

prescribed in this part or the applicable 

MBS Guide, as determined by the Association, the Association may, among 

other things, withhold further commitments to guarantee securities until 

such time as the Association is satisfied that the issuer has resumed business operations in compliance with 

such requirements. 

(Approved by the Office of Management and 

Budget under control numbers 2503–0003, 

2503–0004, 2503–0006, 2503–0007, and 2503–0026) 

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§ 320.5 

§ 320.5 Securities. 

(a) Instruments. Securities issued pursuant to the provisions of this subpart 

must be modified pass-through securities, that provide for payment, whether 

or not collected, of both specified principal installments and interest on the 

unpaid principal balance, with all prepayments and other unscheduled recoveries of principal being passed through 

to the holder. In the case of delinquent 

mortgages in a pool backing modified 

pass-through securities, the issuer is 

required to make advances if necessary 

to maintain the specified schedule of 

interest and principal payments to the 

holders, or at its option, at any time 90 

days or more after default of any such 

mortgage, the issuer may repurchase 

such mortgage for an amount equal to 

the unpaid principal balance of the 

mortgage. The securities, if issued in 

certificated form, must specify the 

dates by which payments are to be 

made to the holders thereof, and must 

indicate the accounting period for collections on the pool’s mortgages relating to each such payment, and the securities, if issued in certificated form, 

must also specify a date on which the 

entire principal will have been paid or 

will be payable. 

(b) Issue amount. Each issue of guaranteed securities must be in a minimum face amount as specified in the 

applicable MBS Guide. The total face 

amount of any issue of securities cannot exceed the aggregate unpaid principal balances of the mortgages in the 

pool. The Association may provide for 

issuers to submit packages of mortgages that may be consolidated, with 

other packages of similar types of 

mortgages, into multiple issuer pools. 

(c) [Reserved] 

(d) Transferability. Securities are 

transferable, but the share of the proceeds collected on account of the pool 

of mortgages is payable only to the 

registered holder of a security according to the policies established by the 

Association. 

(e) Issue Date. Securities backed by 

single-family mortgages with issue 

dates of October 1, 1998, or before, serial notes with issue dates of July 1, 

2002, or before, and securities backed 

by multifamily mortgages with issue 

dates of February 1, 2002, or before, 

24 CFR Ch. III (4–1–11 Edition) 

have been issued in certificated form. 

Securities issued after these dates will 

be issued in book-entry form. The Association may approve the issuance of 

certificated securities for good cause. 

(f) Delivery. Delivery of 

uncertificated securities occurs when 

the book-entry depository’s nominee is 

registered as the registered owner of 

the securities on Ginnie Mae’s central 

registry. 

(g) Registered Ownership. Ownership 

of mortgage-backed securities issued 

pursuant to this subpart registered in 

the name of a Depository shall be conclusively established by registration in 

the name of the Depository as owner 

on the Association’s central registry 

and it shall be unnecessary for a Depository to maintain custody of any physical certificates evidencing such ownership. 

(h) Payments on Mortgage-Backed Securities. Issuers must remit all payments due to holders of mortgagebacked securities such that holders 

will receive their installments as follows: 

(1) Payment to a Depository. (i) For all 

securities registered in the name of a 

Depository or the designated nominee 

for a Depository, issuers are required 

to make payments in immediately 

available funds by ACH transaction, 

Fedwire, or by such other method as 

directed and/or authorized by the Association pursuant to the MBS Guide, including requiring that issuers maintain 

funds accounts in institutions that are 

accessible by debit ACH transactions 

originated by such Depository or its 

designee. 

(ii) Payment must be made by the 

hour specified in the MBS Guide on the 

calendar day of the month specified in 

the MBS Guide for payment on such 

mortgage-backed securities (the ‘‘applicable Payment Date’’), with adjustments to such time as may be specified 

in the MBS Guide for Payments Dates 

that do not fall on business days. 

(2) Payments to other holders. An 

issuer of mortgage-backed securities 

that are not registered in the name of 

a Depository or its nominee may make 

payments to a security holder by ACH 

transaction or Fedwire, provided that 

it obtains the prior written approval of 

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the holder of such mortgage-backed securities. If an issuer begins to make 

such payments by electronic transfer, 

it must continue to do so while the securities are registered in the name of 

that security holder. If an issuer makes 

payments on mortgage-backed securities by check, the check must be received by the security holder not later 

than the applicable Payment Date each 

month. 

(i) Guaranty. The Association’s guaranty described in § 320.13 is a guaranty 

that payment will be made to the registered owner of securities as reflected 

in the Association’s central registry. 

The Association makes no other guaranty, including any guaranty that a 

Depository will appropriately credit 

payments to beneficial owners of such 

mortgage-backed securities. The Association’s guarantee of securities payable to a Depository or its nominee becomes effective when the Depository or 

its nominee is registered as the registered owner of the securities on the 

Association’s central registry. 

(j) Definition of Depository. As used in 

this section, Depository means a clearing corporation within the meaning of 

Article 8 of the Uniform Commercial 

Code, including any Federal Reserve 

Bank, that maintains systems by 

which ownership and transfer of interests in mortgage-backed securities are 

made through the books of such clearing corporation. 

(Approved by the Office of Management and 

Budget under control number 2503–0009) 

[60 FR 42015, Aug. 14, 1995, as amended at 63 

FR 51251, Sept. 24, 1998; 64 FR 34106, June 24, 

1999; 66 FR 44265, Aug. 22, 2001; 70 FR 33652, 

June 8, 2005; 72 FR 49125, Aug. 27, 2007] 

§ 320.7 Mortgages. 

Each issue of guaranteed securities 

must be backed by a separate pool of 

mortgages which meet the requirements of the applicable MBS Guide. 

§ 320.8 Excess Yield Securities. 

(a) Definition. Excess Yield Securities 

are securities backed by the excess 

servicing income relating to mortgages 

underlying previously issued Ginnie 

Mae mortgage-backed securities. 

(b) GNMA guaranty. The Association 

guarantees the timely payment of interest as provided by the terms of the 

security. 

[71 FR 32389, June 5, 2006] 

§ 320.9 Pool administration. 

The Association will only guarantee 

securities if the issuer executes a guaranty agreement or contractual agreement in the form prescribed by the Association. Pool administration requirements are set forth in such agreements 

or the applicable MBS Guide. 

(Approved by the Office of Management and 

Budget under control numbers 2503–0003, 

2503–0004, 2503–0006, 2503–0007, and 2503–0026) 

§ 320.10 Financial reporting. 

Issuers shall submit to the Association audited annual financial statements within 90 days of their fiscal 

year end. All financial statements shall 

include a balance sheet and a statement of operations and cash flows. The 

audit shall be conducted in accordance 

with the standards for financial audits 

of the U.S. Government Accountability 

Office’s Government Auditing Standards, 

issued by the Comptroller General of 

the United States. 

[72 FR 49125, Aug. 27, 2007] 

§ 320.11 Insurance coverage. 

The issuer shall maintain, for the 

benefit of the Association, insurance, 

errors and omissions, fidelity bond and 

other coverage as required by the Association and set forth in the appropriate 

MBS Guide. 

§ 320.12 Integrity. 

(a) Background. Issuers shall disclose 

the background of all individuals serving on their Board of Directors and all 

individuals acting as authorized signatories. The disclosures shall include 

any prior convictions, fines or other 

adverse actions against these individuals by a Federal, state or local agency, or a government-related entity 

where the action is related to the responsibilities that are commensurate 

with those of the financial services industry. The term government-related 

entity includes, but is not limited to, 

FHA, VA, FmHA, FNMA, FHLMC, Office of Thrift Supervision, Federal Deposit Insurance Corporation, Office of 

the Comptroller of the Currency, Board 

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§ 320.13 

of Governors of the Federal Reserve 

System, and National Credit Union Administration. 

(b) Change in status. Issuers shall disclose material changes in their status 

with other government-related entities 

and regulatory agencies, or state or 

local agencies with similar authority, 

within 5 business days of their occurrence. The disclosures shall include, 

but not be limited to, voluntary and 

non-voluntary terminations, defaults, 

fines, and material non-compliance 

with agency rules and policies. Disclosures that are specifically prohibited 

by an agency are exempted from this 

section. 

§ 320.13 Guaranty. 

The Association guarantees the timely payment, whether or not collected, 

of the interest on the outstanding balance and the specified principal installments on securities that are registered 

on Ginnie Mae’s central registry. The 

Association’s guaranty is backed by 

the full faith and credit of the United 

States. 

[64 FR 34107, June 24, 1999] 

§ 320.15 Default. 

(a) Issuer default. Any failure or inability of the issuer to make payments 

as due as well as such other events as 

may be identified by the Association 

and included in the applicable guaranty agreement, contractual agreement or MBS Guide, shall constitute a 

default of the issuer. 

(b) Action upon default. Upon any default by the issuer, the Association 

may: 

(1) Institute a claim against the 

issuer’s insurance, bond or other coverage, as specified in § 320.11; 

(2) Pursuant to section 306(g) of the 

National Housing Act (12 U.S.C. 

1721(g)), extinguish all the right, title, 

or other interest of the issuer in the 

pooled mortgages; and 

(3) Exercise such other rights and 

remedies as it may have. 

§ 320.17 Fees. 

The Association may impose application fees, guaranty fees, securities 

transfer fees and other fees. 

24 CFR Ch. III (4–1–11 Edition) 

Subpart B—Bond-Type Securities 

§ 320.21 General. 

In addition to the ‘‘pass-through’’ securities dealt with in subpart A of this 

part, the Association is authorized by 

section 306(g) of the National Housing 

Act, 12 U.S.C. 1721(g), upon such terms 

and conditions as it may deem appropriate, to guarantee the timely payment of principal of and interest on 

‘‘bond-type’’ securities which are based 

on and backed by a trust or pool composed of mortgages which are insured 

or guaranteed by FHA, FmHA or the 

VA. The Association’s guaranty of 

mortgage-backed securities is backed 

by the full faith and credit of the 

United States. This subpart deals with 

such ‘‘bond-type’’ securities and does 

not purport to set forth all the procedures and requirements that apply to 

the issuance and guaranty of such securities. All such transactions are governed by the specific terms and provisions of the contracts entered into by 

the parties and the Bond-Type Securities Guide (the ‘‘Bond Guide’’). 

§ 320.23 Eligible issuers. 

Any corporation, trust, partnership, 

or other entity with a net worth acceptable to the Association as set forth 

in the Bond Guide, which has the capability to assemble acceptable and eligible mortgages in sufficient quantity to 

support required minimum issuances of 

securities and which meets such other 

requirements as are set forth in the 

Bond Guide, may be approved to issue 

and service bond-type securities guaranteed by the Association. Further, the 

Association reserves the right to limit 

the number of issuers in the interest of 

conducting an orderly market of securities of this type. 

§ 320.25 Securities. 

(a) Instruments. Securities to be 

issued pursuant to the provisions of 

this subpart B may be in registered or 

bearer form. Each security shall have 

terms acceptable to the Association as 

provided in the Bond Guide. 

(b) Issue amount. Each issue of guaranteed securities must be in a minimum face amount as specified in the 

Bond Guide. The total face amount of 

any issue of securities cannot exceed 

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the aggregate unpaid principal balances of the mortgages in the pool. 

(c) Face amount of securities. The face 

amount of any security cannot be less 

than $25,000. 

(d) Transferability. Bearer securities 

are freely transferrable. Registered securities are transferable only on the 

books of an agent, as shall be agreed 

upon by the Association and the issuer. 

(e) Treasury approval. Issues of $100 

million or larger will be subject to approval of the Secretary of the Treasury. 

§ 320.27 Mortgages. 

Guaranteed securities issued under 

these provisions must be based on and 

backed by mortgages pooled under 

trust arrangements satisfactory to the 

Association. Such mortgages must 

meet the requirements of the Bond 

Guide. 

§ 320.29 Guaranty. 

With respect to bond-type securities, 

the Association will guarantee the 

timely payment of principal of and interest on such securities, subject to the 

terms and conditions of the securities. 

The Association’s guaranty is backed 

by the full faith and credit of the 

United States. 

§ 320.31 Default. 

Upon default of the issuer, the Association has the right, pursuant to section 306(g) of the National Housing Act 

(12 U.S.C. 1721(g)), to take title to the 

mortgages and other assets that are 

subject to the trust arrangements, and 

to proceed against other assets of the 

issuer to the extent necessary to satisfy its own claims and the rights of 

the holders of securities then outstanding. Such action by the Association shall be taken subject to an accounting to the issuer. 

§ 320.33 Fees. 

The Association may impose application and guaranty fees, which may 

vary with relation to the size or risk of 

the guaranty transaction undertaken. 

PART 330—GUARANTY OF 


MULTICLASS SECURITIES 


Sec. 

330.1 Scope of part. 

330.5 Definitions. 

330.10 Eligible collateral. 

330.15 Participation requirements. 

330.20 Eligible participants. 

330.25 Fees. 

330.30 GNMA guaranty. 

330.35 Investors. 

330.40 Consultation. 

330.45 Limitation on GNMA liability. 

330.50	 Administration of multiclass securities. 

330.55 Basis for removal from participation. 

330.60 Removal procedure. 

AUTHORITY: 12 U.S.C. 1721(g) and 1723a(a); 

and 42 U.S.C. 3535(d). 

SOURCE: 60 FR 42018, Aug. 14, 1995, unless 

otherwise noted. 

§ 330.1 Scope of part. 

This part is limited to multiclass securities. It does not purport to set 

forth all the procedures and requirements that apply to the issuance and 

guaranty of such securities. All such 

transactions are governed by the specific terms and provisions of the contracts entered into by the parties and 

by the GNMA Multiclass Securities 

Guide (Multiclass Guide). 

§ 330.5 Definitions. 

As used in this part, the following 

terms shall have the meanings indicated: 

Consolidated securities. A series of 

multiclass securities, each class of 

which provides for payments proportionate with payments on the underlying eligible collateral. 

Depositor. The entity that deposits, 

or executes an agreement to deposit, as 

contained in the Multiclass Guide, eligible collateral into a trust in exchange for consolidated securities. 

Depository. A clearing corporation 

within the meaning of Article 8 of the 

Uniform Commercial Code, including 

any Federal Reserve Bank, that maintains systems by which ownership and 

transfer of interests in Ginnie Mae 

multiclass securities are made through 

entries on the books of such clearing 

corporation. 

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§ 330.10 

GNMA electronic bulletin board. An information distribution system established by the Association for the 

Multiclass Securities program. 

GNMA MBS certificates. The guaranteed mortgage-backed securities issued 

under part 320 of this chapter. 

Government mortgages. Mortgages that 

are eligible under section 306(g) of the 

National Housing Act (12 U.S.C. 1721(g)) 

for inclusion in GNMA mortgagebacked securities pools. 

Multiclass Registrar. The institution 

that is specified by the Association as 

the registrar of the related class and 

series of multiclass securities. 

Participant. For structured securities, 

the sponsor, co-sponsor, trustee, trust 

counsel, and accounting firm. For consolidated securities, the depositor. 

Other entities may be designated as 

participants in the Multiclass Guide. 

Sponsor. With respect to structured 

securities, the entity that establishes 

the required trust executing the trust 

agreement and depositing the eligible 

collateral in the trust in exchange for 

the structured securities. 

Structured securities. Securities of a 

series at least one class of which provides for payments of principal or interest disproportionately from payments on the underlying eligible collateral. 

[66 FR 44265, Aug. 22, 2001] 

§ 330.10 Eligible collateral. 

The Association, in its discretion, 

shall determine what collateral is eligible for inclusion in the Multiclass Securities program. Eligible collateral 

may include GNMA MBS certificates, 

government mortgages, consolidated 

securities, and other securities approved by the Association. Categories 

of these GNMA MBS certificates, government mortgages, consolidated securities, and other securities as approved 

by the Association become eligible collateral when they are published as eligible collateral in the Multiclass Guide 

or on the GNMA electronic bulletin 

board. Eligible collateral may differ for 

various Association guaranteed 

multiclass securities. 

24 CFR Ch. III (4–1–11 Edition) 

§ 330.15 Participation requirements. 

To participate in the Multiclass Securities program, a participant must 

meet the following criteria: 

(a) Certification. A participant must 

submit such certifications and other 

documents as are required by the 

Multiclass Guide. 

(b) Compliance with Multiclass Guide. 

By completing a multiclass securities 

transaction, a participant is deemed to 

have represented and warranted to the 

Association that it has complied with, 

and that it agrees to comply with, the 

Multiclass Guide in effect as of the 

date that the Association’s guaranty is 

placed on the securities. 

(c) Material changes in status. A participant must report, as required in the 

Multiclass Guide, material adverse 

changes in status including voluntary 

and non-voluntary termination, defaults, fines and findings of material 

non-conformance with rules and policies of state and federal agencies and 

federal government sponsored enterprises. 

(d) Integrity. The participant must 

conduct its business operations in accordance with industry practices, ethics and standards, and maintain its 

books and records in an appropriate 

manner, as determined by the Association. 

(Approved by the Office of Management and 

Budget under control number 2503–0030) 

§ 330.20 Eligible participants. 

In addition to requirements set forth 

in this part, a participant must meet 

the following requirements. 

(a) Structured securities—(1) Description. The Association guarantees the 

payment of principal and interest on 

structured securities issued by trusts 

organized by sponsors in accordance 

with procedures established and approved by the Association. The structured securities are backed by eligible 

collateral, as described in this part, 

held by the trustee. 

(2) Eligibility requirements for participants—(i) Sponsors. A sponsor must: 

(A) Apply and be approved by the Association; 

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(B) Demonstrate to the satisfaction 

of the Association its capacity to accumulate the eligible collateral, as described in this part, needed for a proposed structured securities issuance; 

(C) Be in good standing with and either have been responsible for at least 

one structured securities transaction 

with FNMA or FHLMC, or have demonstrated to the Association’s satisfaction its capability to act as sponsor of 

GNMA guaranteed structured securities; 

(D) Have the minimum required 

amount, as set forth in the Multiclass 

Guide, in shareholders’ equity or partners’ capital, evidenced by the sponsor’s audited financial statements, 

which must have been issued within 

the preceding 12-month period; 

(E) Represent the structural integrity of the issuance under all cash flow 

scenarios and demonstrate to the Association’s satisfaction its ability to indemnify the Association for a breach of 

this representation; 

(F) Comply with the Association’s 

policies regarding participation by minority and/or women-owned businesses 

and take appropriate measures to assure compliance by the other participants as specified in the Multiclass 

Guide; and 

(G) Provide the Association with the 

opinions of trust counsel and accounting firms which are acceptable to the 

Association and on which the Association may rely. 

(ii) Co-sponsors. A Co-sponsor must 

submit to the Association an application and a certification, as set forth in 

the Multiclass Guide, as to its status 

as a minority and/or women-owned 

business. 

(iii) Trustees. A trustee is selected by 

the Sponsor from institutions approved 

by the Association using such procedures as the Association deems appropriate. 

(b) Consolidated securities—(1) Description. A Depositor delivers, or executes 

an agreement to deliver, eligible collateral to a trust in exchange for a single Association guaranteed multiclass 

security, as set forth in the Multiclass 

Guide. 

(2) Eligibility requirements for participant. A Depositor must certify that: 

(i) It is an ‘‘accredited investor’’ 

within the meaning of 17 CFR 

230.501(a)(1), (a)(3) or (a)(7); 

(ii) It has authority to deliver, and 

will deliver, the collateral to the trustee and that the collateral is free and 

clear of all liens and encumbrances; 

and 

(iii) The information set forth by the 

depositor regarding the eligible collateral is true and correct. 

(c) Other types of Association guaranteed multiclass securities. The Association will set forth the requirements for 

the guaranty by the Association of 

other types of multiclass securities, 

and the eligibility requirements for the 

appropriate participants, in the 

Multiclass Guide or on the GNMA electronic bulletin board. 

§ 330.25 Fees. 

The Association, in its discretion, 

through publication in the Multiclass 

Guide or on the GNMA electronic bulletin board, may impose fees for application, guaranty, transfer, change from 

book entry to certificated form, or 

other related fees. Fees may vary, at 

the Association’s discretion, depending 

upon, but not limited to, such factors 

as size, collateral characteristics, expense or risk of the guaranty transaction undertaken. 

§ 330.30 GNMA Guaranty. 

(a) Securities held by Depositories. 

Ownership of multiclass securities registered in the name of a Depository 

shall be conclusively established by 

registration in the name of the Depository as owner on the books and records 

of the Multiclass Registrar, and it shall 

be unnecessary for a Depository to 

maintain custody of any physical certificates evidencing such ownership. 

(b) Guaranty. The Association’s guaranty is a guaranty that payment will 

be made to the registered owner of securities as reflected on the books and 

records of the Multiclass Registrar. 

(1) The Association makes no other 

guaranty, including any guaranty that 

a Depository will appropriately credit 

payments to beneficial owners of 

GNMA multiclass securities. The Association’s guarantee of securities payable to a Depository or its nominee becomes effective when the Depository or 

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its nominee is registered as the registered owner of the securities on the 

books and records of the Multiclass 

Registrar. 

(2) The Association guarantees the 

timely payment of principal and interest as provided by the terms of the 

multiclass security. The Association’s 

guaranty is backed by the full faith 

and credit of the United States. 

[66 FR 44266, Aug. 22, 2001] 

§ 330.35 Investors. 

Association guaranteed multiclass 

securities may not be suitable investments for all investors. No investor 

should purchase securities of any class 

unless the investor understands, and is 

able to bear, the prepayment, yield, liquidity and market risks associated 

with the class. The Association assumes no obligation or liability to any 

person with regard to determining the 

suitability of such securities for such 

investor. 

§ 330.40 Consultation. 

The Association may consult with 

persons or entities in such manner as 

the Association deems appropriate to 

ensure the efficient commencement 

and operation of the Multiclass Securities program. 

§ 330.45 Limitation on GNMA liability. 

Except for its guaranty, the Association undertakes no obligation and assumes no liability to any person with 

regard to or on account of the existence or operation of this part or the 

conduct of any participants in the 

Multiclass Securities program. 

§ 330.50 Administration of multiclass 

securities. 

The GNMA guaranteed multiclass securities will be administered in accordance with the Association’s requirements described in the Multiclass 

Guide. 

§ 330.55 Basis for removal from participation. 

A participant may be removed from 

the Multiclass Securities program if 

the Association, in its discretion, determines that any of the following exists or has occurred: 

24 CFR Ch. III (4–1–11 Edition) 

(a) The participant, at any time, fails 

to meet any condition for eligibility; 

(b) The participant fails to comply 

with any provision of the Multiclass 

Guide or this part; 

(c) The participant is unable or fails 

to truthfully, correctly or fully submit 

such certifications as are required; and 

(d) Such further reasons as the Association determines necessary to protect the safety and soundness of the 

Multiclass Securities program, as set 

out in the Multiclass Guide. 

§ 330.60 Removal procedure. 

(a) A participant may be suspended 

from participation in the Multiclass 

Securities program upon written notice 

from the Association, which shall include the reasons for the suspension. 

The participant shall have the opportunity to submit a written presentation to the President of the Association, or designee, in support of its reinstatement, subject to such limitations 

as the Association in its discretion 

may impose as to length, time for submission, or otherwise. A determination 

by the President of the Association, or 

designee, shall exhaust the participant’s administrative remedies. 

(b) If a participant is suspended from 

the Multiclass Securities program, the 

Association shall have no obligation to 

complete a pending transaction involving the participant. 

(c) After a participant has been removed from the Multiclass Securities 

program, the participant may request 

reinstatement. Approval of the reinstatement is at the sole discretion of 

the Association. 

PART 340—FIDUCIARY ACTIVITIES 

Sec. 

340.1 General. 

340.3 Appropriations. 

AUTHORITY: 12 U.S.C. 1723a and 42 U.S.C. 

3535(d). 

SOURCE: 60 FR 42019, Aug. 14, 1995, unless 

otherwise noted. 

§ 340.1 General. 

The Association is authorized by section 302(c) of the National Housing Act 

(12 U.S.C. 1717(c)) to create, accept, 

execute, and administer trusts and 

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other fiduciary undertakings appropriate for financing purposes. Under 

this authority, the Association is authorized to acquire and otherwise deal 

in any mortgages or other types of obligations in which any department or 

agency of the United States listed in 

section 302(c)(2) of such Act may have a 

financial interest. Under its fiduciary 

powers, the Association may create, 

accept, and administer trusts consisting of interests in mortgages and 

obligations, sell to private investors 

certificates of beneficial interest, or 

participations, in the mortgages or obligations or in the interest and principal payments derived therefrom, and 

provide for payment of interest and 

principal and for retirement of the participations. The Association, in its ordinary corporate capacity as contrasted to its fiduciary capacity, is expressly authorized to guarantee the 

participations. 

§ 340.3 Appropriations. 

There is authority for Congress to 

appropriate such sums as may be necessary to enable the trustor of any 

trust (as described in § 340.1) to pay to 

the Association, as trustee, any insufficiency in aggregate receipts from the 

obligations subject to the trust to provide for the timely payment by the 

trustee of all interest or principal on 

the beneficial interests or participations related to such trust. 

PARTS 341–349 [RESERVED] 


PART 350—BOOK-ENTRY 


PROCEDURES 


Sec. 

350.1 Purpose. 

350.2 Definitions. 

350.3 Maintenance of Ginnie Mae Securities. 

350.4	 Law governing rights and obligations 

of United States, and Federal Reserve 

Banks as Depositories; Rights of any 

Person against United States, and Federal Reserve Banks as Depositories; Law 

Governing Other Interests. 

350.5	 Creation of Participant’s Security Entitlement; Security Interests. 

350.6	 Obligations of the Reserve Banks as 

Depositories; No Adverse Claims. 

350.7	 Authority of Federal Reserve Banks as 

Depositories. 

350.8	 Withdrawal of Eligible Book-entry 

Ginnie Mae Securities for Conversion to 

Definitive Form. 

350.9 Waiver of Regulations. 

350.10	 Liability of Federal Reserve Banks as 

Depositories. 

350.11	 Notice of Attachment for Ginnie Mae 

Securities in Book-entry System. 

AUTHORITY: 12 U.S.C. 1721(g) and 1723a(a); 42 

U.S.C. 3535(d). 

SOURCE: 66 FR 44266, Aug. 22, 2001, unless 

otherwise noted. 

§ 350.1 Purpose. 

The purpose of this part is to achieve 

the efficiencies and fungibility through 

use of a single system for transferring 

interests both in Ginnie Mae Securities 

and other United States Government 

securities and in mortgage-backed securities issued by the Federal National 

Mortgage Association and the Federal 

Home Loan Mortgage Corporation. The 

Association only guarantees that payments required to be made by issuers of 

Ginnie Mae Securities will be made to 

the registered owner of those Ginnie 

Mae Securities. The Association undertakes no other obligation. Under the 

Book-entry System, the Federal Reserve Banks will be the registered 

owner of Book-entry Ginnie Mae Securities, not the agent of the Association, 

and the Association makes no warranty or guaranty with respect to the 

maintenance of the Book-entry System 

by the Federal Reserve Banks. 

§ 350.2 Definitions. 

(a) Specified Terms. As used in this 

part, the following terms shall have 

the meanings indicated: 

Book-entry Ginnie Mae Security. A 

Ginnie Mae Security issued or maintained in the Book-entry System. 

Book-entry Ginnie Mae Security also 

means the separate interest and principal components of a Book-entry 

Ginnie Mae Security if such security 

has been designated by Ginnie Mae as 

eligible for division into such components and the components are maintained separately on the books of one 

or more Federal Reserve Banks. 

Book-entry System. The automated 

book-entry system operated by the 

Federal Reserve Banks acting as Depositories for Ginnie Mae, on which 

Book-entry Ginnie Mae Securities are 

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recorded, transferred and maintained 

in book-entry form. 

Definitive Ginnie Mae Security. A 

Ginnie Mae Security in engraved or 

printed form, or that is otherwise represented by a certificate. 

Depository. A clearing corporation 

within the meaning of Article 8 of the 

Uniform Commercial Code, including 

any Federal Reserve Bank, that maintains systems by which ownership and 

transfer of interests in Book-entry 

Ginnie Mae Securities are made 

through entries on the books of such 

clearing corporation. 

Eligible Book-entry Ginnie Mae Security. A Book-entry Ginnie Mae Security 

issued or maintained in the Book-entry 

System which by the terms of its Security Documentation is eligible to be 

converted from book-entry form into 

definitive form. 

Entitlement Holder. A Person to whose 

account an interest in a Book-entry 

Ginnie Mae Security is credited on the 

records of a Securities Intermediary. 

Federal Reserve Bank Operating Circular. The publication issued by each 

Federal Reserve Bank that sets forth 

the terms and conditions under which 

the Reserve Bank maintains bookentry securities accounts (including 

Book-entry Ginnie Mae Securities accounts) and transfers book-entry Securities (including Book-entry Ginnie 

Mae Securities). 

Ginnie Mae Security. Any security or 

obligation guaranteed as to payment of 

principal and/or interest by Ginnie Mae 

under its Charter Act and issued in the 

form of a Definitive Ginnie Mae Security or a Book-entry Ginnie Mae Security. 

Participant. A Person that maintains 

a Participant’s Securities Account 

with a Federal Reserve Bank. 

Person. An individual, corporation, 

company, governmental entity, association, firm, partnership, trust, estate, representative, and any other 

similar organization, but such term 

does not mean or include the United 

States or a Federal Reserve Bank. 

Revised Article 8. The same meaning 

as in 31 CFR 357.2. 

Secretary. The Secretary of Housing 

and Urban Development and, where appropriate, any person designated by the 

Secretary to perform a particular func24 CFR Ch. III (4–1–11 Edition) 

tion for the Secretary, including any 

HUD officer, employee, or agent. 

Security. Any mortgage participation 

certificate, note, bond, debenture, evidence of indebtedness, collateral-trust 

certificate, transferable share, certificate of deposit for a security, or, in 

general, any interest or instrument 

commonly known as a security. 

Securities Documentation. The applicable statement of terms, trust agreement, trust indenture, securities agreement or other documents establishing 

the terms of a Book-entry Ginnie Mae 

Security. 

Transfer message. An instruction of a 

member of a Federal Reserve Bank to 

effect a transfer of a Book-entry Security (including a Book-entry Ginnie 

Mae Security) maintained in the Bookentry System, as set forth in Federal 

Reserve Bank Operating Circulars. 

(b) Other Terms. Unless the context 

requires otherwise, terms used in this 

part that are not defined in this part, 

have the meanings as set forth in 31 

CFR 357.2. Definitions and terms used 

in 31 CFR part 357 should read as 

though modified to effectuate their application to Ginnie Mae Securities. 

§ 350.3 Maintenance of Ginnie Mae Securities. 

A Ginnie Mae Security may be maintained in the form of a Definitive 

Ginnie Mae Security or a Book-entry 

Ginnie Mae Security. A Book-entry 

Ginnie Mae Security shall be maintained in the Book-entry System. 

§ 350.4 Law governing rights and obligations of United States, and Federal Reserve Banks as Depositories; 

Rights of any Person against United 

States, and Federal Reserve Banks 

as Depositories; Law Governing 

Other Interests. 

(a) Except as provided in paragraph 

(b) of this section, the following rights 

and obligations are governed solely by 

the book-entry regulations contained 

in this part, the Securities Documentation, and Federal Reserve Bank Operating Circulars (but not including any 

choice of law provisions in the Security 

Documentation to the extent such provisions conflict with the Book-entry 

regulations contained in this part): 

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(1) The rights and obligations of a 

Federal Reserve Bank as a Depository 

with respect to: 

(i) A Book-entry Ginnie Mae Security 

or Security Entitlement; and 

(ii) The operation of a book-entry 

system operated by a Depository as it 

applies to Ginnie Mae Securities; and 

(2) The rights of any Person, including a Participant, against the Federal 

Reserve Banks as Depositories with respect to: 

(i) A Book-entry Ginnie Mae Security 

or Security Entitlement; and 

(ii) The operation of the book-entry 

system operated by the Federal Reserve Banks as Depositories as it applies to Ginnie Mae Securities. 

(b) A security interest in a Security 

Entitlement that is in favor of a Federal Reserve Bank from a Participant 

and that is not recorded on the books 

of a Federal Reserve Bank pursuant to 

§ 350.5(c)(1), is governed by the law (not 

including the conflict-of-law rules) of 

the jurisdiction where the head office 

of the Federal Reserve Bank maintaining the Participant’s Securities Account is located. A security interest in 

a Security Entitlement that is in favor 

of a Federal Reserve Bank from a Person that is not a Participant, and that 

is not recorded on the books of a Federal Reserve Bank pursuant to 

§ 350.5(c)(1), is governed by the law determined in the manner specified in 

paragraph (d) of this section. 

(c) If the jurisdiction specified in the 

first sentence of paragraph (b) of this 

section is a State that has not adopted 

Revised Article 8, then the law specified in paragraph (b) of this section 

shall be the law of that State as 

though Revised Article 8 had been 

adopted by that State. 

(d) To the extent not otherwise inconsistent with this part, and notwithstanding any provision in the Security 

Documentation setting forth a choice 

of law, the provision set forth in 31 

CFR 357.11 regarding law governing 

other interests apply and shall be read 

as though modified to effectuate the 

application of 31 CFR 357.11 to Bookentry Ginnie Mae Securities. 

§ 350.5 Creation of Participant’s Security Entitlement; Security Interests. 

(a) A Participant’s Security Entitlement is created when a Federal Reserve Bank indicates by book-entry 

that a Book-entry Ginnie Mae Security 

has been credited to a Participant’s Securities Account. 

(b) A security interest in a Security 

Entitlement of a Participant in favor 

of the United States to secure deposits 

of public money, including without 

limitation deposits to the Treasury tax 

and loan accounts, or other security interests in favor of the United States 

that is required by Federal statute, 

regulation, or agreement, and that is 

marked on the books of a Federal Reserve Bank is thereby effected and perfected, and has priority over any other 

interest in the securities. Where a security interest in favor of the United 

States in a Security Entitlement of a 

Participant is marked on the books of 

a Federal Reserve Bank, such Reserve 

Bank may rely, and is protected in relying, exclusively on the order of an 

authorized representative of the United 

States directing the transfer of the security. For purposes of this paragraph, 

an ‘‘authorized representative of the 

United States’’ is the official designated in the applicable regulations or 

agreement to which a Federal Reserve 

Bank is a party, governing the security 

interest. 

(c)(1) The Federal Reserve Banks as 

Depositories have no obligation to 

agree to act on behalf of any Person or 

to recognize the interest of any transferee of a security interest or other 

limited interest in favor of any Person 

except to the extent of any specific requirement of Federal law or regulation 

or to the extent set forth in any specific agreement with the Federal Reserve Bank on whose books the interest 

of the Participant is recorded. To the 

extent required by such law or regulation or set forth in an agreement with 

a Federal Reserve Bank, or the Federal 

Reserve Bank Operating Circular, a security interest in a Security Entitlement that is in favor of a Federal Reserve Bank or a Person may be created 

and perfected by a Federal Reserve 

Bank as Depository marking its books 

to record the security interest. Except 

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as provided in paragraph (b) of this section, a security interest in a Security 

Entitlement marked on the books of a 

Federal Reserve Bank shall have priority over any other interest in the securities. 

(2) In addition to the method provided in paragraph (c)(1) of this section, a security interest, including a 

security interest in favor of a Federal 

Reserve Bank, may be perfected by any 

method by which a security interest 

may be perfected under applicable law 

as described in § 350.4(b) or (d). The perfection, effect of perfection or non-perfection and priority of a security interest are governed by such applicable 

law. A security interest in favor of a 

Federal Reserve Bank shall be treated 

as a security interest in favor of a 

clearing corporation in all respects 

under such law, including with respect 

to the effect of perfection and priority 

of such security interest. A Federal Reserve Bank Operating Circular shall be 

treated as a rule adopted by a clearing 

corporation for such purposes. 

§ 350.6 Obligations of the Reserve 

Banks as Depositories; No Adverse 

Claims. 

Except in the case of a security interest in favor of the United States or a 

Federal Reserve Bank or otherwise as 

provided in § 350.5(c)(1), for the purposes 

of this part, the Federal Reserve Banks 

as Depositories shall treat the Participant to whose Securities Account an 

interest in a Book-entry Ginnie Mae 

Security has been credited as the person exclusively entitled to issue a 

Transfer Message, to receive interest 

and other payments with respect thereof and otherwise to exercise all the 

rights and powers with respect to such 

Security, notwithstanding any information or notice to the contrary. The 

Federal Reserve Banks as Depositories 

are not liable to a Person asserting or 

having an adverse claim to a Security 

Entitlement or to a Book-entry Ginnie 

Mae Security in a Participant’s Securities Account, including any such claim 

arising as a result of the transfer or 

disposition of a Book-entry Ginnie Mae 

Security by a Federal Reserve Bank 

pursuant to a Transfer Message that 

the Federal Reserve Bank reasonably 

believes to be genuine. 

24 CFR Ch. III (4–1–11 Edition) 

§ 350.7 Authority of Federal Reserve

Banks as Depositories. 

(a) Each Federal Reserve Bank is 

hereby authorized as Depository for 

Book-entry Ginnie Mae Securities to 

perform the following functions with 

respect to Book-entry Ginnie Mae Securities to which this part applies, in 

accordance with the Securities Documentation, Federal Reserve Bank Operating Circulars, this part, and procedures established by the Secretary consistent with these authorities: 

(1) To service and maintain Bookentry Ginnie Mae Securities in accounts established for such purposes; 

(2) To make payments with respect 

to such securities; 

(3) To effect transfer of Book-entry 

Ginnie Mae Securities between Participants’ Securities Accounts as directed 

by the Participants; 

(4) To effect conversions between 

Book-entry Ginnie Mae Securities and 

Definitive Ginnie Mae Securities pursuant to the applicable Securities Documentation; and 

(5) To perform such other duties as 

the Federal Reserve Banks as Depositories may be requested by Ginnie Mae. 

(b) Each Federal Reserve Bank as Depository may issue Operating Circulars, not inconsistent with this part, 

governing the details of its handling of 

Book-entry Ginnie Mae Securities, Security Entitlements, and the operation 

of the book-entry system under this 

part. 

§ 350.8 Withdrawal of Eligible Bookentry Ginnie Mae Securities for 

Conversion to Definitive Form. 

(a) Eligible book-entry Ginnie Mae 

securities may be withdrawn from the 

book-entry system after Ginnie Mae 

has approved a request for the delivery 

of definitive Ginnie Mae securities in 

the same amount. 

(b) A Reserve Bank as Depository 

shall, upon receipt of appropriate instructions to withdraw Eligible Bookentry Ginnie Mae Securities from 

book-entry in the Book-entry System, 

facilitate the conversion of such securities into Definitive Ginnie Mae Securities and their delivery in accordance 

with such instructions. No such conversion shall affect existing interests 

in such Ginnie Mae Securities. 

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(c) All requests for withdrawal of Eligible Book-entry Ginnie Mae Securities must be made prior to the maturity or date of call of the securities. 

(d) Definitive Ginnie Mae Securities 

that are to be delivered upon withdrawal may be issued in either registered or bearer form, to the extent 

permitted by the applicable Securities 

Documentation. 

[66 FR 44266, Aug. 22, 2001, as amended at 72 

FR 49125, Aug. 27, 2007] 

§ 350.9 Waiver of Regulations. 

Ginnie Mae reserves the right in its 

discretion, to waive any provision(s) of 

these regulations in any case or class 

of cases for the convenience of Ginnie 

Mae or the United States, or in order 

to relieve any Person(s) of unnecessary 

hardship, if such action is not inconsistent with law, does not adversely affect any substantial existing rights, 

and the Association is satisfied that 

such action will not subject the Association or the United States to any 

substantial expense or liability. 

§ 350.10 Liability of Federal Reserve

Banks as Depositories. 

The Federal Reserve Banks as Depositories may rely on the information 

provided in a Transfer Message, and are 

not required to verify the information. 

The Federal Reserve Banks as Depositories shall not be liable for any action 

taken in accordance with the information set out in a Transfer Message, or 

evidence submitted in support thereof. 

§ 350.11 Notice of Attachment for 

Ginnie Mae Securities in Bookentry System. 

The interest of a debtor in a Security 

Entitlement may be reached by a creditor only by legal process upon the Securities Intermediary with whom the 

debtor’s securities account is maintained, except where a Security Entitlement is maintained in the name of a 

secured party, in which case the debtor’s interest may be reached by legal 

process upon the secured party. These 

regulations do not purport to establish 

whether a Federal Reserve Bank as Depository is required to honor an order 

or other notice of attachment in any 

particular case or class of cases. 

PARTS 351–400 [RESERVED] 

595