Replies to post #12770 on Fannie Mae Preferred S (FNMAS)

[rosen62]

Now that you mentioned it I think I remember... maybe in the google group.

[georgenips]

I have to take credit for finding the typo. As far as I know, I was the first to mention the typo in the third amendment. I posted this on IHUB before Berkowitz came out and mentioned it. a week after I posted the typo on the IHUB board, Bruce came out and made a statement about the typo. I'm glad Bruce is keeping up to date on georgenips' posts. haha

From a legal standpoint, the typo makes the 3rd amendment invalid and we would then revert back to the 2nd amendment IMHO. Good news, we will have a judge review the document and we will know the answer soon. One could speculate that the Treasury put the typo in place purposefully. Only they know the real reason why they put the typo there.

the post was # 11384

Conservatorship agreement with updated changes. I may have found something.

With all the political nonsense going on with FnF I decided I would put together a conservatorship agreement that had all the amendments and updated changes so I could read it and potentially find some loop holes. I started out with the amended and restated senior preferred stock purchase agreement and read the 1st amendment and updated the changes to the original and then on to the 2nd and 3rd amendments. I color coded the updates with the amendment that changed the wording.

Everything was going smoothly until I read the 3rd amendment. Up until this point I had no problem finding the section or the definition in the amended and restated senior preferred stock purchase agreement that needed to be changed. Everything fell into place.

then I get to the section of the 3rd amendment that wants to make changes to 2(a) and 2(c). There is no such thing as section 2(a) or 2(c). If there is no section 2(a) or 2(c), how can one amend it? there is a section 2.1, 2.2, 2.3, and ect.

The amendment to section 2(a) and 2(c) are the meat and potatoes of the 3rd amendment. I will post those sections below.

Legal documents are very black and white or cut and dry and they have no room for interpretation. Something that is not there in the first place cannot be amended.

This might be far reaching on my part but I would be interested in hearing what a contract lawyer says about this.