Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size of the offering. The principal and interest payments on the Equipment Trust Certificates are "passed through" to certificate holders.

In short, the term "pass-through" means the issuing compant, such as Ginnie Mae has received money from the homeowner and passed it to the investor.