Prospectus - GNMA II MBS (Adjustable Rate Mortgages)

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Cited in

Legal Form Number	HUD-11772-II
Issuer	Ginnie Mae
Section	Ginnie Mae

e e

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Prospectus

Ginnie Mae II

Adjustable Rate Mortgages

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U.S. Department of Housing

and Urban Development

Prospectus

Ginnie Mae II

Adjustable Rate Mortgages

Issued by:

Government National Mortgage Association

% Initial Security Interest Rate

Ginnie Mae II Mortgage-Backed Securities

(Adjustable Rate Mortgages)

Guaranteed as to the Timely Payment of Principal and Interest

By the Government National Mortgage Association

(Backed by the Full Faith and Credit of the United States)

Index: Ginnie Mae Pool No.: First Payment Due:

Issue Date: Maturity Date:

Mortgage Interest and Security

Interest Adjustment Date: Security Payment Adjustment

Date:

Mortgage Payment Adjustment Date: Security Margin:

Depository: The Federal Reserve Bank of New York Central Paying and Transfer Agent:

The securities offered hereby (the “Securities”) provide for the timely payment of principal and

interest on the twentieth day of each month, except as stated herein, commencing in the month

following the month of issuance. Interest will accrue on the Securities at the initial per annum rate

specified above until the first security interest adjustment date and thereafter at a per annum rate

that will be adjusted annually as described in this prospectus; installments of principal will be

payable in relation to payments of principal on the underlying pool of mortgages described

herein. The maturity date for the Securities is based on the mortgage with the latest maturity. See

“Maturity, Prepayment, and Yield” herein for a discussion of certain significant factors that

should be considered by prospective investors in the Securities offered hereby.

The Government National Mortgage Association (“Ginnie Mae”) guarantees the timely payment

of principal and interest on the Securities. The Ginnie Mae guaranty is backed by the full faith

and credit of the United States of America.

The Securities are exempt from the registration requirements of the Securities Act of 1933, as

amended, and are “exempted securities” within the meaning of the Securities Exchange Act of

1934, as amended.

Appendix IV

ref. Ginnie Mae Handbook 5500.3, Rev. 1

Ginnie Mae Guaranty

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Ginnie Mae is a wholly-owned corporate instrumentality of the United States of America

within the Department of Housing and Urban Development with its principal office at 451

h Seventh Street, S.W., Washington,

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interest on the Securities is guaranteed by Ginnie Mae pursuant to Section 306(g) of the

National Housing Act of 1934, as amended (the “National Housing Act”). Section 306(g)

provides that “[t]he full faith and credit of the United States is pledged to the payment of all

amounts which may be required to be paid under any guaranty under this subsection.” An

opinion, dated December 9, 1969, of William H. Rehnquist, Assistant Attorney General of the

United States, states that such guaranties under Section 306(g) of mortgage-backed securities

of the type offered hereby are authorized to be made by Ginnie Mae and “would constitute

general obligations of the United States backed by its full faith and credit.”

y y D.C. 20410. Timely payment of the principal of and

Borrowing Authority

–

United States Treasury

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Ginnie Mae, in its corporate capacity under Section 306(d) of the National Housing Act, may

issue to the United States Treasury its general obligations in an amount outstanding at any one

time sufficient to enable Ginnie Mae, with no limitations as to amount, to perform its

obligations under its guaranty of the timely payment of the principal of and interest on the

Securities offered hereby. The Treasury is authorized to purchase any obligations so issued.

y t o y t o The Treasury Department has indicated that it will make loans to Ginnie Mae,

implement the aforementioned guaranty as stated in the following letter:

f The Secretary of the Treasury

Washington

if needed, to

February

13, 1970

r Dear Mr. Secretary:

r r r r

I r r r I wish to refer to your letter of November 14, 1969 asking whether the timely payment of p rincipal and interest on

mortgage-backed securities of the pass-through type guaranteed by the Government National

r r

r r r Mortgage Association under Section 306(g) of the National Housing Act under its management and liquidating function is a

function for which the Association may properly borrow from the Treasury.

f r It is the opinion of the Treasury Department that the Association may properly borrow from the Treasury for the

purpose of assuring the timely payment of principal and interest on guaranteed pass-through type

f r r mortgage-backed securities as described in Chapter 3 paragraph 6 of the Mortgage-Backed Securities Guide dated December

1969. Accordingly, the Treasury will make loans to the Association for the foregoing purposes

r f f I f under the procedure provided in subsection (d) of Section 306 of Title III of the National Housing Act.

Sincerely, DAVI

D M

KENN

EDY

The Honorable George Romney

Secretary of the Department of

Housing and Urban Development

Washington, D.C. 20410

Ginnie Mae Guaranty

d y tes

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y Ginnie Mae is a wholly-owned corporate instrumentality of the United States of America

within the Department of Housing and Urban Development with its principal office at 451

h Seventh Street, S.W., Washington,

on by on

s nd o

y d d s n

d 1969, , y

s s on s

by o by

h o