Acronym for Real Estate Mortgage Investment Conduit, a creature of the Internal Revenue Code that allows the holder of securitized mortgages, usually a trust, to avoid entity-level or “double” tax on the income from the mortgages owned by the REMIC.

A REMIC is subject to numerous restrictions that could produce interesting complications in Chapter 11 cases. For example, a REMIC cannot hold more than a de minimis amount of assets other than real estate or real estate mortgages, creating potential difficulties if a Chapter 11 plan proposed to distribute equity interests in the debtor in satisfaction of some or all of the mortgage debt.

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