Schedule M, Reconciliation of Residual Interest Holders’ Capital Accounts

Show what caused the changes in the residual interest holders’ capital accounts during the tax year.

The interest will meet the requirements of (1) even if the timing (but not the amount) of the principal payments (or other similar amounts) is contingent on the extent of prepayments on qualified mortgages and the amount of income from permitted investments.

• Expenses recorded on books not deducted on this return, and

• Taxable income not recorded on the books this year.