The following information is taken from a filing with the US Securities and Exchange Commission about a CMBS issued by a special purpose entity established by a major US commercial bank. The collateral for this CMBS was a pool of 72 fixed-rate mortgages secured by first liens (first claims) on various types of commercial, multifamily, and manufactured housing community properties.

The filing included the following statements:

If you acquire Class B certificates, then your rights to receive distributions of amounts collected or advanced on or in respect of the mortgage loans will be subordinated to those of the holders of the Class A-1, Class A-2, Class A-3, Class A-4, Class A-AB, Class X-A, and Class A-S certificates. If you acquire Class C certificates, then your rights to receive distributions of amounts collected or advanced on or in respect of the mortgage loans will be subordinated to those of the holders of the Class B certificates and all other classes of offered certificates.

“Prepayment Penalty Description” or “Prepayment Provision” means the number of payments from the first due date through and including the maturity date for which a mortgage loan, as applicable, (i) is locked out from prepayment, (ii) provides for payment of a prepayment premium or yield maintenance charge in connection with a prepayment, (iii) or permits defeasance.

Based on the information provided, investors in this CMBS had prepayment protection at:

A. The loan level.

B. The structure level.

C. Both the loan and structure levels.

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Classes of Offered Certificates A-1 A-2 A-3 A-4 Initial Principal Amount (US$) 75,176,000 290,426,000 150,000,000 236,220,000 Initial Pass-Through Rate (%) 0.754 1.987 2.815 3.093