FIRST HORIZON ASSET SECURITIES INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2006-AR2 TERMS AGREEMENT (to Underwriting Agreement, dated June 26, 2006 among the Company, First Horizon Home Loan Corporation and the Underwriter)
EXECUTION
FIRST
HORIZON ASSET SECURITIES INC.
MORTGAGE
PASS-THROUGH CERTIFICATES
SERIES
2006-AR2
(to
Underwriting Agreement,
dated
June 26, 2006
among
the
Company, First Horizon
Home
Loan
Corporation
and
the
Underwriter)
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First
Horizon Asset Securities Inc.
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New
York, New York
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|
4000
Horizon Way
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June
26, 2006
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|
Xxxxxx,
Xxxxx 00000
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Xxxxxx
Xxxxxxx & Co. Incorporated (the “Underwriter”) agrees, subject to the terms
and provisions herein and of the captioned Underwriting Agreement (the
“Underwriting Agreement”), to purchase such Classes of First Horizon Mortgage
Pass-Through Trust 2006-AR2, Mortgage Pass-Through Certificates, Series 2006-AR2
(the “Series 2006-AR2 Certificates”) specified in Section 2(a) hereof (the
“Offered Certificates”). This letter supplements and modifies the Underwriting
Agreement solely as it relates to the purchase and sale of the Offered
Certificates described below. The Series 2006-AR2 Certificates are registered
with the Securities and Exchange Commission by means of an effective
Registration Statement (No. 333-132046). Capitalized terms used and not defined
herein have the meanings given them in the Underwriting Agreement.
Section
1. The
Mortgage Pools:
The
Series 2006-AR2 Certificates shall evidence the entire beneficial ownership
interest in four mortgage pools (the “Mortgage Pools”) of primarily 30-year
adjustable rate, first lien, fully amortizing, one- to four-family residential
mortgage loans (the “Mortgage Loans”) having the following characteristics as of
June 1, 2006 (the “Cut-off Date”):
(a) Aggregate
Principal Amount of the Mortgage Pools:
Approximately $171,370,690 aggregate principal balance as of the Cut-off Date,
subject to an upward or downward variance of up to 5%, the precise aggregate
principal balance to be determined by the Company.
(b) Original
Term to Maturity:
The
original term to maturity of each Mortgage Loan included in the Mortgage Pools
shall be 360 months.
Section
2. The
Certificates:
The
Offered Certificates shall be issued as follows:
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First Horizon 2006-AR2
Xxxxxx
Xxxxxxx Terms to Underwriting Agreement
1
(a) Classes:
The
Offered Certificates shall be issued with the following Class designations,
initial pass-through rates and class principal balances, subject in the
aggregate to the variance referred to in Section 1(a)and, as to any particular
Class, to an upward or downward variance of up to 5%:
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Class
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Class
Principal Balance
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Pass-Through
Rate(1)
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Class
Purchase Price Percentage
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Required
Ratings
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Fitch
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S&P
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||||
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Class
B-1
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$
3,856,000.00
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6.17083%
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99.421875000%
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AA
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N/R
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Class
B-2
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$
1,114,000.00
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6.17083%
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98.421875000%
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A
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N/R
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Class
B-3
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$
771,000.00
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6.17083%
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96.515625000%
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BBB
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N/R
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(1)
Initial
pass-through rates. The pass-through rates for these Classes of Offered
Certificates are variable and will be calculated as described in the Prospectus
Supplement.
“N/R”
indicates that these Classes of Certificates are not rated by the applicable
Rating Agency.
(b) The
Offered Certificates shall have such other characteristics as described in
the
related Prospectus.
Section
3. Purchase
Price:
The
Purchase Price for each Class of the Offered Certificates shall be the Class
Purchase Price Percentage therefor (as set forth in Section 2(a) above) of
the
initial Class Principal Balance thereof plus accrued interest at the applicable
per annum initial pass-through rate set forth in 2(a) above from and including
the Cut-off Date up to, but not including, June 30, 2006 (the “Closing
Date”).
Section
4. Required
Ratings:
The
Offered Certificates shall have received at least the Required Ratings from
Fitch, Inc. (“Fitch”) and Standard
& Poor’s, a division of The XxXxxx-Xxxx Companies, Inc.
(“S&P”)
set
forth in Section 2(a) above.
Section
5. Tax
Treatment:
One or
more elections will be made to treat the assets of the Trust Fund as a
REMIC.
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First Horizon 2006-AR2
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If
the
foregoing is in accordance with your understanding of our agreement, please
sign
and return to the undersigned a counterpart hereof, whereupon this letter and
your acceptance shall represent a binding agreement among the Underwriter,
First
Horizon Home Loan Corporation and the Company.
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Very
truly yours,
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XXXXXX
XXXXXXX & CO. INCORPORATED
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By:__________________________________
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Name:
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Title:
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The
foregoing Agreement is
hereby
confirmed and accepted
as
of the
date first above written.
FIRST
HORIZON ASSET SECURITIES INC.
By:
____________________________________
Name:
Xxxxxx Xxxxx
Title:
Vice President
FIRST
HORIZON HOME LOAN CORPORATION
By:
____________________________________
Name:
Xxxxx X. XxXxx
Title:
Executive Vice President
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First Horizon 2006-AR2
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Xxxxxxx Terms to Underwriting Agreement
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