RESIDENTIAL ACCREDIT LOANS, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Asset-Backed Pass-Through Certificates
Series 1996-QS3
$856,328.61 0.00% Class A-P Certificates
Supplement dated March 18, 1999
to
Prospectus Supplement dated June 24, 1996
to
Prospectus dated June 24, 1996
The Class A-P Certificates had an initial aggregate Certificate
Principal Balance of $1,166,696 and initially was issued on June 28, 1996. After
giving effect to the distribution made on February 25, 1999, the Certificate
Principal Balance is $856,328.61.
The Class A-P Certificates (the "Class A-P Certificates") will be
purchased from the Company by Donaldson, Lufkin & Jenrette (the "Class A-P
Underwriter"), pursuant to an agreement (the "Class A-P Underwriting Agreement")
among the Company, the Master Servicer and the Class A-P Underwriter.
The Class A-P Underwriter may offer the Class A-P 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 Class A-P Underwriter may effect such
transactions by selling the Class A-P Certificates to or through dealers. In
connection with the purchase and sale of the Class A-P Certificates, the Class
A-P Underwriter and any dealers that may participate with the Class A-P
Underwriter in such resale of the Class A-P 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 A-P Underwriter in
the form of discounts, concessions or commissions. The Class A-P Underwriting
Agreement provides that the Company will indemnify the Class A-P Underwriter
against certain civil liabilities under the Securities Act of 1933, as amended,
or contribute to payments required to be made in respect thereof. There is
currently no secondary market for the Class A-P Certificates. There can be no
assurance that an active secondary market will develop, or if it does develop,
that it will continue.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND
PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN
CONJUNCTION THEREWITH.
UNTIL JUNE 17, 1999, ALL DEALERS EFFECTING TRANSACTIONS IN THE CLASS A-P
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.
DONALDSON, LUFKIN & JENRETTE
1
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