RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1998-S10
$1,995,700 6.75% Class M-3 Certificates
Supplement dated May 4, 1998
to
Prospectus Supplement dated April 23, 1998
and
Prospectus dated December 22, 1997
The Class M-3 Certificates will be offered by Residential Funding Securities
Corporation (the "Class M-3 Underwriter"), on a best-efforts basis pursuant to
an Underwriting Agreement (the "Class M-3 Underwriting Agreement") among the
Company, the Master Servicer and the Class M-3 Underwriter. The Class M-3
Underwriter is an indirect wholly-owned subsidiary of the parent of the Company.
The obligation of the Class M-3 Underwriter to pay for and accept delivery of
any of the Class M-3 Certificates is subject to, among other things, the
simultaneous sale by the Class M-3 Underwriter of such Class M-3 Certificates.
The termination date of the offering of the Class M-3 Certificates is the
earlier to occur of May 4, 1999 or the date on which all of the Class M-3
Certificates have been sold. Proceeds of the offering of the Class M-3
Certificates will not be placed in any escrow, trust or similar arrangement. The
Class M-3 Underwriter intends to offer the Class M-3 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-3 Certificates will be equal to the purchase price paid by the
purchaser thereof, net of any expenses payable by the
(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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Company and any compensation payable to the Class M-3 Underwriter and any
dealer. The Class M-3 Underwriter may effect such transactions by selling the
Class M-3 Certificates to or through dealers. In connection with the purchase
and sale of the Class M-3 Certificates, the Class M-3 Underwriter and any
dealers that may participate with the Class M-3 Underwriter in such resale of
the Class M-3 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 Class M-3 Underwriter in the form of discounts,
concessions or commissions. The Class M-3 Underwriter and any dealers that
participate with the Class M-3 Underwriter in the distribution of the Class M-3
Certificates may be deemed to be underwriters and any profit on the resale of
the Class M-3 Certificates positioned by them may be deemed to be underwriting
discounts and commissions under the Securities Act of 1933.
The Class M-3 Underwriting Agreement provides that the Company will
indemnify the Class M-3 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-3 Certificates.
Neither the Company, the Class M-3 Underwriter nor any other person intends to
make a secondary market in the Class M-3 Certificates. There can be no assurance
that any such secondary market will develop, or if it does develop, that it will
continue.
UNTIL AUGUST 3, 1998, ALL DEALERS EFFECTING TRANSACTIONS IN THE CLASS M-3
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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