Government National Mortgage Association Mortgage-Backed Securities Program-Payments to Securityholders; Book-Entry Procedures

This final rule issued by the Government National Mortgage Association (the "Association" or "Ginnie Mae") will govern payments on Ginnie Mae I and Ginnie Mae II Pass-Through Securities ("Ginnie Mae MBS") registered in the name of a securities intermediary and clearing corporation (a "Depository"). The rule requires that payments on Ginnie Mae MBS due to Depositories be made in immediately available funds and supersedes any current provisions allowing those payments to be made by check. Payments to other security holders may be made by check or other means provided the check is received by the security holder not later than the applicable payment date specified in the Ginnie Mae Mortgage-Backed Securities Guide (the "Ginnie Mae MBS Guide" or the "Guide"). The final rule eliminates any requirement that a physical certificate representing a Ginnie Mae MBS or, for consistency, a Ginnie Mae multiclass security ("Ginnie Mae Multiclass Securities," and together with Ginnie Mae MBS, "Ginnie Mae Securities") be maintained by a Depository. In addition, in the final rule, because the Federal Reserve Banks are expected to become Depositories for all book-entry Ginnie Mae Securities, Ginnie Mae is, consistent with the practices of other Federal entities with securities on the Fedwire Book-Entry Securities System, adopting an appropriate version of the standard technical rules under which book-entry Ginnie Mae Securities will be held and transferred on such system. The final rule follows publication of a February 26, 2001 proposed rule, takes into consideration public comment on the proposed rule, and make certain changes at this final rule stage.