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FDIC TO SELL UP TO $1.25 BILLION
OF COMMERCIAL MORTGAGE LOANS

FOR IMMEDIATE RELEASE
PR-18-94 (3-17-94)
 

The FDIC's Board of Directors has approved a proposal by its Division of Depositor and Asset Services to sell mortgage pass- through certificates in a public offering. The plan will be the Corporation's first sale of loans as part of a mortgage-backed securities transaction.

The certificates will evidence beneficial ownership interests in performing commercial real estate-secured loans with a book value of up to $1.25 billion. The commercial mortgage loans were originated by failed depositary institutions nationwide that were insured by the Bank Insurance Fund

The certificates are expected to include an FDIC guaranty for a limited amount of credit losses and interest rate risk, with subsequent losses borne by the holders of the securities.

The offering of the securities will be made only by means of a prospectus.

Last Updated 07/13/1999 communications@fdic.gov