RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1997-S4
$2,269,200.00 7.00% Class M-1 Certificates
$ 907,500.00 7.00% Class M-2 Certificates
Supplement dated March 24, 1997
to
Prospectus Supplement dated March 24, 1997
and
Prospectus dated June 21, 1996
The Class M-1 Certificates and Class M-2 Certificates (collectively, the "Class
M Certificates") will be offered by Residential Funding Securities Corporation
(the "Underwriter"), on a best-efforts basis pursuant to an Underwriting
Agreement (the "Underwriting Agreement") among the Company, the Master Servicer
and the Underwriter. The Underwriter is an indirect wholly-owned subsidiary of
the parent of the Company. The obligation of the Underwriter to pay for and
accept delivery of any of the Class M Certificates is subject to, among other
things, the simultaneous sale by the Underwriter of such Class M Certificates.
The termination date of the offering of the Class M Certificates is the earlier
to occur of March 24, 1998 or the date on which all of the Class M Certificates
have been sold. Proceeds of the offering of the Class M Certificates will not be
placed in any escrow, trust or similar arrangement. The Underwriter intends to
offer the Class M Certificates from time to time to the public in negotiated
transactions or otherwise at varying prices to be determined at the time of
sale. The proceeds to the Company from any sale of the Class M Certificates will
be equal to the purchase price paid by the purchaser thereof, net of any
expenses payable by the Company and any compensation payable to the Underwriter
and any dealer. The Underwriter may effect such transactions by selling the
Class M Certificates to or through dealers. In connection with the purchase and
sale of the Class M Certificates, the Underwriter and any dealers that may
participate with the Underwriter in
(continued on the following page)
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
Residential Funding Securities Corporation
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such resale of the Class M Certificates may be deemed to have received
compensation from the Company in the form of discounts or commissions or, in the
case of such dealers, compensation from the Underwriter in the form of
discounts, concessions or commissions. The Underwriter and any dealers that
participate with the Underwriter in the distribution of the Underwritten
Certificates may be deemed to be underwriters and any profit on the resale of
the Underwritten Certificates positioned by them may be deemed to be
underwriting discounts and commissions under the Securities Act of 1933.
The Underwriting Agreement provides that the Company will indemnify the
Underwriter against certain civil liabilities under the Securities Act of 1933,
or contribute to payments required to be made in respect thereof. There is
currently no secondary market for the Class M Certificates. Neither the Company,
the Underwriter nor any other person intends to make a secondary market in the
Class M Certificates. There can be no assurance that any such secondary market
will develop, or if it does develop, that it will continue.
UNTIL JUNE 22, 1997, ALL DEALERS EFFECTING TRANSACTIONS IN THE CLASS M
CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED
TO DELIVER A PROSPECTUS (INCLUDING THE PROSPECTUS SUPPLEMENT AND THIS
SUPPLEMENT). THIS DELIVERY REQUIREMENT IS IN ADDITION TO THE OBLIGATION OF
DEALERS TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO
THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
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