Mortgages plc Securitisation Investment ("Mortgages")

GIL owns 50.0% of two classes of certificates issued by Newgate Funding 2006-3 plc (“Mortgages plc”) – Series MERCS and Series Residuals.

Series MERCS entitle GIL to the prepayment penalties paid by borrowers when they repay loans early. Prepayment penalties are not passed through the payment waterfalls but are passed directly to Series MERCS noteholders.  

The Series Residuals entitle GIL to the residual amount remaining following payments on all higher rated notes in the securitisation.  

Mortgages plc is a securitisation vehicle which holds non‑conforming mortgages originated by a wholly-owned subsidiary of Merrill Lynch International which is based in the United Kingdom. GIL’s investment in the notes is secured against a portfolio of registered first mortgages over UK residential property.