Pass-through certificate
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A pass-through certificates (PTC) is an instrument that evidences the ownership of two or more equipment trust certificates. In other words, equipment trust certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size of the offering. The principal and interest payments on the equipment trust certificates are "passed through" to certificate holders.
In short, the term "pass-through" means the issuing company, such as Ginnie Mae has received money from the homeowner and passed it to the investor.
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