RESIDENTIAL ACCREDIT LOANS, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Asset-Backed Pass-Through Certificates
Series 1997-QS6
$2,654,400.00 7.50% Class M-1 Certificates
$1,061,700.00 7.50% Class M-2 Certificates
$690,100.00 7.50% Class M-3 Certificates
Supplement dated August 12, 1997
to
Prospectus Supplement dated June 24, 1997
and
Prospectus dated August 22, 1996
The Class M-1 Certificates, the Class M-2 Certificates and the Class
M-3 Certificates (collectively, the "Class M Certificates") will be purchased
from the Company by Salomon Brothers Inc (the "Underwriter"), pursuant to an
Underwriting Agreement (the "Underwriting Agreement") among the Company, the
Master Servicer and the Underwriter. The proceeds to the Company from the sale
of the Class M Certificates will be equal to $4,446,251.24 net of adjustment in
principal in respect of the first Distribution Date and any expenses payable by
the Company.
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 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 such resale of the Class M
Certificates may
(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.
SALOMON BROTHERS INC
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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 Class M Certificates may be deemed to be underwriters and
any profit on the resale of the Class M 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. There can be no
assurance that any such secondary market will develop, or if it does develop,
that it will continue.
UNTIL NOVEMBER 10, 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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