Replies to post #356155 on Fannie Mae-No Politics (FNMA)

[SGINPHX]

Ha..I hate reading this stuff as I ALWAYS read into it what I want! It sounds like it would get unwound and we would be paid off, get to keep the over payment, could buy back the warrants....you know...lets just act like nothing ever happened if they get caught. Love hearing other views though...

[Mikey Mike]

6.12. Non-Severability. Each of the provisions of this Agreement is integrated with and integral to the whole and shall not be severable from the remainder of the Agreement. In the event that any provision of this Agreement, the Senior Preferred Stock or the Warrant is determined to be illegal or unenforceable, then Purchaser may, in its sole discretion, by written notice to Conservator and Seller, declare this Agreement null and void, whereupon all transfers hereunder (including the issuance of the Senior Preferred Stock and the Warrant and any funding of the Commitment) shall be rescinded and unwound and all obligations of the parties (other than to effectuate such rescission and unwind) shall immediately and automatically terminate.

[Mikey Mike]

It means that if the court finds the contract to be illegal then the Treasury can write a letter to FHFA to void and nullify the agreement/contract and reverse the entire process including the senior preferred stocks, the bail out commitment and act as if nothing happened...no harm, no foul basicly...