Pass-Through Interest definition
Pass-Through Interest. A certificate or certificates representing entire beneficial interests in a grantor trust or similar pass-through special purpose entity exclusively holding any of the following: Whole Loans, Junior Interests, Mezzanine Loans, Preferred Equity, Distressed Debt, REO Property Loan, CMBS or RMBS; provided that such certificate is and will be treated as debt by the United States Internal Revenue Service for tax purposes.