EXHIBIT 1.1
BANC OF AMERICA MORTGAGE SECURITIES, INC.
$309,988,100
(Approximate)
Mortgage Pass-Through Certificates,
Series 2006-A
January 25, 2006
SENIOR UNDERWRITING AGREEMENT
-----------------------------
Banc of America Securities LLC
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Ladies and Gentlemen:
SECTION 1. Introductory. Banc of America Mortgage Securities, Inc., a
Delaware corporation (the "Company"), proposes to sell to the underwriters named
in Schedule I hereto (the "Underwriters"), for whom you are acting as
representative (the "Representative"), $309,988,100.00 principal amount of its
Mortgage Pass-Through Certificates identified in Schedule I hereto (the "Offered
Certificates") having the Initial Class Certificate Balances set forth in
Schedule I (subject to an upward or downward variance, not to exceed 5%, of the
precise Initial Class Certificate Balance within such range to be determined by
the Company in its sole discretion). The Offered Certificates, together with six
classes of subordinate certificates (the "Non-Offered Certificates") are
collectively referred to herein as the "Certificates" and evidence the entire
ownership interest in the assets of a trust estate (the "Trust Estate")
consisting primarily of a pool of adjustable interest rate mortgage loans having
original terms to maturity of not more than 360 months, as described in Schedule
I (the "Mortgage Loans") to be acquired by the Company pursuant to a mortgage
loan purchase agreement (the "Mortgage Loan Purchase Agreement"), to be dated
January 27, 2006, between the Company and Bank of America, National Association
("BANA"). As of the close of business on the date specified in Schedule I as the
cut-off date (the "Cut-off Date"), the Mortgage Loans will have the aggregate
principal balance set forth in Schedule I. This Underwriting Agreement shall
hereinafter be referred to as the "Agreement." Elections will be made to treat
the assets of the Trust Estate as two separate real estate mortgage investment
conduits (each, a "REMIC"). The Certificates are to be issued pursuant to a
pooling and servicing agreement, dated January 27, 2006 (the "Pooling
Agreement"), among the Company, as depositor, BANA, as servicer (the
"Servicer"), and Xxxxx Fargo Bank, N.A., as trustee (the "Trustee"). The Offered
Certificates will be issued in the denominations specified in Schedule I. The
Pooling Agreement, this Agreement, the Mortgage Loan Purchase Agreement, the
subordinate underwriting agreement, dated January 25, 2006, among Banc of
America Securities LLC, as underwriter of the public Non-Offered Certificates,
the Company and BANA, and the purchase agreement, to be dated January 27, 2006,
among Banc of America Securities LLC, as Purchaser, the Company and BANA are
collectively referred to herein as the "Basic Documents."
Capitalized terms used herein that are not otherwise defined herein have
the meanings assigned thereto in the Pooling Agreement.
SECTION 2. Representations and Warranties of the Company. The Company
represents and warrants to each Underwriter as follows:
(a) The Company meets the requirements for use of Form S-3 under the
Securities Act of 1933, as amended (the "Act"), and has filed with the
Securities and Exchange Commission (the "Commission") a registration
statement on such Form (the file number of which is set forth in Schedule
I hereto), which has become effective, for the registration under the Act
of the Offered Certificates. Such registration statement, as amended to
the date of this Agreement, meets the requirements set forth in Rule
415(a)(1) under the Act and complies in all other material respects with
said Rule. The Company proposes to file with the Commission pursuant to
Rule 424 under the Act a supplement to the form of prospectus included in
such registration statement relating to the Offered Certificates and the
plan of distribution thereof and has previously advised the
Representative of all further information (financial and other) with
respect to the Company to be set forth therein. Such registration
statement, including the exhibits thereto, as amended to the date of this
Agreement, is hereinafter called the "Registration Statement"; such
prospectus in the form in which it appears in the Registration Statement
is hereinafter called the "Basic Prospectus"; and such supplement to the
Basic Prospectus, in the form in which it shall be filed with the
Commission pursuant to Rule 424, is hereinafter called the "Prospectus
Supplement" and, collectively with the Basic Prospectus, the "Final
Prospectus." Any reference herein to the Registration Statement, the
Basic Prospectus or the Final Prospectus shall be deemed to refer to and
include the documents incorporated by reference therein pursuant to Item
12 of Form S-3 which were filed under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), on or before the date of this
Agreement, or the issue date of the Basic Prospectus or the Final
Prospectus, as the case may be; and any reference herein to the terms
"amend," "amendment" or "supplement" with respect to the Registration
Statement, the Basic Prospectus or the Final Prospectus shall be deemed
to refer to and include the filing of any document under the Exchange Act
after the date of this Agreement, or the issue date of the Basic
Prospectus or the Final Prospectus, as the case may be, and deemed to be
incorporated therein by reference.
(b) As of the date hereof, when the Final Prospectus is first filed
pursuant to Rule 424 under the Act, when, prior to the Closing Date (as
hereinafter defined), any amendment to the Registration Statement becomes
effective (including the filing of any document incorporated by reference
in the Registration Statement), when any supplement to the Final
Prospectus is filed with the Commission and at the Closing Date, (i) the
Registration Statement, as amended as of any such time, and the Final
Prospectus, as amended or supplemented as of any such time, will comply
in all material respects with the Act and the respective rules
thereunder, (ii) the Registration Statement, as amended as of any such
time, will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in
order to make the statements therein not misleading, and (iii) the Final
Prospectus, as amended or supplemented as of any such time, will not
contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they
were made, not misleading; provided, however, that the Company makes no
representations or warranties as to the information contained in or
omitted from the Registration Statement or the Final Prospectus or any
amendment thereof or supplement thereto in reliance upon and in
conformity with information furnished in writing to the Company by or on
behalf of any Underwriter through the Representative specifically for use
in connection with the preparation of the Registration Statement or the
Final Prospectus.
(c) The Company has been duly incorporated and is validly existing
as a corporation under the laws of the State of Delaware and has
corporate and other power and authority to own its properties and conduct
its business, as now conducted by it, and to enter into and perform its
obligations under this Agreement and the other Basic Documents to which
it is a party.
(d) The Company is not aware of (i) any request by the Commission
for any further amendment of the Registration Statement or the Basic
Prospectus or for any additional information or (ii) the issuance by the
Commission of any stop order suspending the effectiveness of the
Registration Statement.
(e) This Agreement has been duly authorized, executed and delivered
by the Company, and each of the other Basic Documents to which the
Company is a party, when delivered by the Company, will have been duly
authorized, executed and delivered by the Company, and will constitute a
legal, valid and binding agreement of the Company, enforceable against
the Company in accordance with its terms, subject, as to the enforcement
of remedies, to applicable bankruptcy, insolvency, reorganization,
moratorium, receivership and similar laws affecting creditors' rights
generally and to general principles of equity (regardless of whether the
enforcement of such remedies is considered in a proceeding in equity or
at law), and except as rights to indemnity and contribution hereunder may
be limited by federal or state securities laws or principles of public
policy.
(f) The Company is not, and on the date on which the first bona fide
offer of the Offered Certificates is made will not be, an "ineligible
issuer," as defined in Rule 405 under the Act.
SECTION 3. Purchase, Sale and Delivery of Offered Certificates. On the
basis of the representations, warranties and agreements herein contained, but
subject to the terms and conditions herein set forth, the Company agrees to
issue and sell to each Underwriter, and the Underwriters severally, but not
jointly, agree to purchase from the Company, at the purchase price set forth in
Schedule I hereto, the principal amount or percentage interest of the Offered
Certificates set forth opposite such Underwriter's name therein.
The Company will deliver the Offered Certificates to the
Representative for the respective accounts of the several Underwriters, against
payment by the several Underwriters through the Representative of the purchase
price therefor in same day funds wired to such bank as may be designated by the
Company, or by such other manner of payment as may be agreed upon by the Company
and the Representative, at the offices of Cadwalader, Xxxxxxxxxx & Xxxx LLP, New
York, New York at 10:00 A.M., Eastern time, on January 27, 2006 or at such other
place or time not later than seven full business days thereafter as the
Representative and the Company determine, such time being referred to herein as
the "Closing Date."
The Offered Certificates so to be delivered will be in such denominations
and registered in such names as the Representative requests two full business
days prior to the Closing Date and will be made available at the office of Banc
of America Securities LLC, Charlotte, North Carolina or, upon the
Representative's request, through the facilities of The Depository Trust
Company.
SECTION 4. Offering by the Underwriters. It is understood that the
Underwriters propose to offer the Offered Certificates subject to this Agreement
for sale to the public (which may include selected dealers) on the terms as set
forth in the Final Prospectus.
SECTION 5. Covenants of the Company. The Company hereby covenants and
agrees with each of the several Underwriters that:
(a) Prior to the termination of the offering of the Offered
Certificates, the Company will not file any amendment of the Registration
Statement or supplement (including the Final Prospectus) to the Basic
Prospectus unless the Company has furnished the Representative a copy for
its review prior to filing and will not file any such proposed amendment
or supplement to which the Representative reasonably objects. Subject to
the foregoing sentence, the Company will cause the Final Prospectus to be
filed with the Commission pursuant to Rule 424. The Company will advise
the Representative promptly (i) when the Final Prospectus shall have been
filed with the Commission pursuant to Rule 424, (ii) when any amendment to
the Registration Statement relating to the Offered Certificates shall have
become effective, (iii) of any request by the Commission for any amendment
of the Registration Statement or amendment of or supplement to the Final
Prospectus or for any additional information, (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of the
Registration Statement or the institution or threatening of any proceeding
for that purpose and (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Offered
Certificates for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purpose. The Company will use its best efforts
to prevent the issuance of any such stop order and, if issued, to obtain
as soon as possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to the Offered
Certificates is required to be delivered under the Act, any event occurs
as a result of which the Final Prospectus as then amended or supplemented
would include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, or if it shall
be necessary to amend or supplement the Final Prospectus to comply with
the Act or the Exchange Act or the respective rules thereunder, the
Company promptly will prepare and file with the Commission, subject to the
first sentence of paragraph (a) of this Section 5, an amendment or
supplement which will correct such statement or omission or an amendment
which will effect such compliance and will use its best efforts to cause
any required post-effective amendment to the Registration Statement
containing such amendment to be made effective as soon as possible.
(c) The Company will furnish to the Representative and counsel for
the Underwriters, without charge, executed copies of the Registration
Statement (including exhibits thereto) and each amendment thereto which
shall become effective on or prior to the Closing Date and, so long as
delivery of a prospectus by any of the Underwriters or dealer may be
required by the Act, as many copies of the Final Prospectus and any
amendments thereof and supplements thereto as the Representative may
reasonably request. The Company will pay the expenses of printing all
documents relating to the initial offering.
(d) The Company will furnish such information as may be required and
otherwise cooperate in qualifying the Offered Certificates for sale under
the laws of such jurisdictions as the Representative may reasonably
designate and to maintain such qualifications in effect so long as
required for the distribution of the Offered Certificates; provided,
however, that the Company shall not be required to qualify to do business
in any jurisdiction where it is not now so qualified or to take any action
which would subject it to general or unlimited service of process in any
jurisdiction where it is not now so subject.
SECTION 6. Conditions to the Obligations of the Underwriters. The
obligations of the Underwriters to purchase the Offered Certificates shall be
subject to the accuracy of the representations and warranties on the part of the
Company contained herein as of the date hereof, as of the date of the
effectiveness of any amendment to the Registration Statement filed prior to the
Closing Date (including the filing of any document incorporated by reference
therein) and as of the Closing Date, to the accuracy of the statements of the
Company made in any certificates delivered pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the following
additional conditions:
(a) The Underwriters shall have received from PricewaterhouseCoopers
LLP (i) a letter, dated the date hereof, confirming that they are
independent public accountants within the meaning of the Act and the rules
and regulations of the Commission promulgated thereunder and otherwise in
form and substance reasonably satisfactory to the Representative and
counsel to the Underwriters and (ii) if requested by the Representative, a
letter dated the Closing Date, updating the letter referred to in clause
(i) above, in form and substance reasonably satisfactory to the
Representative and counsel for the Representative.
(b) All actions required to be taken and all filings required to be
made by the Company under the Act prior to the sale of the Offered
Certificates shall have been duly taken and made. At and prior to the
Closing Date, no stop order suspending the effectiveness of the
Registration Statement shall have been issued and no proceedings for that
purpose shall have been instituted, or to the knowledge of the Company or
the Underwriters, shall have been contemplated by the Commission.
(c) Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) any change, or any development involving
a prospective change, in or affecting particularly the business or
properties of the Company or the Servicer which, in the reasonable
judgment of the Representative, materially impairs the investment quality
of the Offered Certificates; (ii) any downgrading in the rating of the
Servicer by any "nationally recognized statistical rating organization"
(as such term is defined for purposes of Rule 436(g) under the Act), or
any public announcement that any such organization has under surveillance
or review its rating of the Servicer (other than an announcement with
positive implications of a possible upgrading, and no implication of a
possible downgrading, of such rating); (iii) any suspension or limitation
of trading in securities generally on the New York Stock Exchange, or any
setting of minimum prices for trading on such exchange; (iv) any banking
moratorium declared by federal, North Carolina or New York authorities; or
(v) any outbreak or escalation of major hostilities in which the United
States is involved, any declaration of war by Congress or any other
substantial national or international calamity or emergency if, in the
reasonable judgment of the Representative, the effects of any such
outbreak, escalation, declaration, calamity or emergency makes it
impractical or inadvisable to proceed with completion of the sale of and
payment for the Offered Certificates.
(d) The Underwriters shall have received a certificate dated the
Closing Date of an executive officer of the Company in which such officer
shall state that, to the best of such officer's knowledge after reasonable
inspection, (i) the representations and warranties of the Company
contained in the Basic Documents are true and correct with the same force
and effect as if made on the Closing Date and (ii) the Company has
complied with all agreements and satisfied all conditions on its part to
be performed or satisfied hereunder at or prior to the Closing Date.
(e) The Underwriters shall have received an opinion of counsel for
the Company, which may be an opinion of in-house counsel to the Company,
dated the Closing Date, in form and substance satisfactory to the
Underwriters and counsel for the Underwriters.
(f) The Underwriters shall have received a certificate of an
executive officer of XXXX, dated as of the Closing Date, to the effect
that, to the best of such officer's knowledge, (i) the representations and
warranties contained in the Mortgage Loan Purchase Agreement are true and
correct with the same force and effect as though made on and as of the
Closing Date and (ii) such officer has reviewed the Final Prospectus as
amended or supplemented to the Closing Date and nothing has come to such
officer's attention that would lead such officer to believe that the Final
Prospectus as amended or supplemented, insofar as it relates to BANA or
the Mortgage Loans originated or acquired by BANA, contains any untrue
statement of a material fact or omits to state a material fact necessary
in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
(g) The Underwriters shall have received an opinion of counsel for
XXXX, which may be an opinion of in-house counsel to XXXX, dated the
Closing Date, in form and substance satisfactory to the Underwriters and
counsel for the Underwriters.
(h) The Underwriters shall have received an opinion of Xxxxxxxxxx,
Xxxxxxxxxx & Xxxx LLP, special counsel to the Company, which opinion may
rely on, and assume the accuracy of, the opinions described in paragraphs
(e) and (g) above, dated the Closing Date, in form and substance
satisfactory to the Underwriters and counsel for the Underwriters.
(i) The Underwriters shall have received copies of any opinions of
counsel for the Company that the Company is required to deliver to any
Rating Agency. Any such opinions shall be dated the Closing Date and
addressed to the Underwriters or accompanied by reliance letters addressed
to the Underwriters.
(j) The Underwriters shall have received from Cadwalader, Xxxxxxxxxx
& Xxxx LLP, special counsel for the Underwriters, a letter dated the
Closing Date with respect to the Final Prospectus, substantially to the
effect that nothing has come to such counsel's attention in the course of
its review of the Final Prospectus which causes it to believe that the
Final Prospectus, as of the date of the Prospectus Supplement or the
Closing Date, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which
they were made, not misleading; it being understood that such counsel need
not express any view as to any information incorporated by reference in
the Final Prospectus or as to the adequacy or accuracy of the financial,
numerical, statistical or quantitative information included in the Final
Prospectus.
(k) The Underwriters shall have received an opinion of reasonably
acceptable counsel to the Trustee, dated the Closing Date, in form and
substance satisfactory to the Representative and counsel for the
Underwriters.
(l) On or before the Closing Date, the Underwriters shall have
received evidence satisfactory to the Underwriters that each class of
Offered Certificates has been given the ratings set forth on Schedule I
hereto.
(m) At the Closing Date, the Certificates and the Pooling Agreement
will conform in all material respects to the descriptions thereof
contained in the Final Prospectus.
(n) The Underwriters shall not have discovered and disclosed to the
Company on or prior to the Closing Date that the Registration Statement or
the Final Prospectus or any amendment or supplement thereto contains an
untrue statement of a fact or omits to state a fact which, in the opinion
of counsel to the Underwriters, is material and is required to be stated
therein or is necessary to make the statements therein not misleading.
(o) All corporate proceedings and other legal matters relating to
the authorization, form and validity of this Agreement, the Pooling
Agreement, the Mortgage Loan Purchase Agreement, the Certificates, the
Registration Statement and the Final Prospectus, and all other legal
matters relating to this Agreement and the transactions contemplated
hereby, shall be reasonably satisfactory in all respects to counsel for
the Underwriters, and the Company shall have furnished to such counsel all
documents and information that they may reasonably request to enable them
to pass upon such matters.
The Company will provide or cause to be provided to the Underwriters such
conformed copies of such opinions, certificates, letters and documents as the
Underwriters may reasonably request.
All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriters. If any condition specified in this Section 6
shall not have been fulfilled when and as required to be fulfilled, this
Agreement may be terminated by the Underwriters by notice to the Company at any
time at or prior to the Closing Date, and such termination shall be without
liability of any party to any other party except as provided in Section 7.
SECTION 7. Reimbursement of the Underwriters' Expenses. If the sale of the
Offered Certificates provided for herein is not consummated because any
condition to the obligations of the Underwriters set forth in Section 6 hereof
is not satisfied or because of any refusal, inability or failure on the part of
the Company to perform any agreement herein or comply with any provision hereof
other than by reason of a default by any of the Underwriters, the Company will
reimburse the Underwriters severally upon demand for all out-of-pocket expenses
(including reasonable fees and disbursements of counsel to the Underwriters)
that shall have been reasonably incurred by them in connection with the proposed
purchase and sale of the Offered Certificates.
SECTION 8. Indemnification and Contribution.
(a) The Company agrees to indemnify and hold harmless each Underwriter and
BANA and each person who controls any Underwriter or BANA within the meaning of
either the Act or the Exchange Act against any and all losses, claims, damages
or liabilities, to which they may become subject under the Act, the Exchange Act
or other federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) (i) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement for the registration of the Offered Certificates as originally filed
or in any amendment thereof, or in the Basic Prospectus or the Final Prospectus,
or in any amendment thereof or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading or (ii) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in any Free Writing Prospectus (as defined in Section
11(a)) prepared by the Company or arise out of or are based upon the omission or
alleged omission to state therein a material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, in either case, at the time at which an investor in the Offered
Certificates enters into a contract of sale for the Offered Certificates, or if
such contract of sale is subsequently terminated and a new contract of sale is
entered into by mutual agreement between such investor and the Underwriter, such
time at which the new contract of sale is entered into (such time, the "Time of
Sale"), to the person asserting a claim, when considered in conjunction with all
information with respect to the offering of the Offered Certificates which has
been conveyed to such investor at the Time of Sale, and the Company agrees to
reimburse each Underwriter and BANA and each such controlling person for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through
the Representative or BANA specifically for use in connection with the
preparation thereof. This indemnity agreement will be in addition to any
liability which the Company may otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold harmless the
Company, each of its directors, each of its officers who signs the Registration
Statement and BANA and each person who controls the Company or BANA within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Underwriter and BANA, but only with
reference to (A) written information relating to such Underwriter furnished to
the Company by or on behalf of such Underwriter through the Representative
specifically for use in the preparation of the documents referred to in the
foregoing indemnity, or (B) any Free Writing Prospectus (as defined in Section
11(a)) prepared by or on behalf of such Underwriter; except that no such
indemnity shall be available for any losses, claims, damages or liabilities, or
actions in respect thereof resulting from any error in any Issuer Information
(as defined in Section 11(b)) (an "Issuer Error") furnished by BANA to the
Underwriters in writing or by electronic transmission that was used in the
preparation of any Free Writing Prospectus, other than an Issuer Error as to
which, prior to the Time of Sale of the Offered Certificates to the person
asserting a claim, BANA notified the Underwriters in writing of the Issuer Error
or provided in written or electronic form information superseding or correcting
such Issuer Error (in any such case, a "Corrected Issuer Error"). This indemnity
agreement will be in addition to any liability which the Underwriters may
otherwise have. The Company and BANA acknowledge that the statements set forth
in the Prospectus Supplement in the first sentence of the last paragraph on the
cover page, in the first sentence under the subheading "Risk Factors--Limited
Liquidity" and in the second, third and fifth paragraphs under the heading
"Method of Distribution" constitute the only information furnished in writing by
or on behalf of the several Underwriters for inclusion in the documents referred
to in the foregoing indemnity.
(c) XXXX agrees to indemnify and hold harmless the Company, each of its
directors, each of its officers who signs the Registration Statement, the
Underwriters and each person who controls the Company or any Underwriter within
the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to the Underwriters and BANA, but only with
reference to (A) written information relating to BANA or the Mortgage Loans
furnished to the Company by or on behalf of BANA specifically for use in the
preparation of the documents referred to in the foregoing indemnity and (B) any
Issuer Error, other than a Corrected Issuer Error. The Company and the
Underwriters acknowledge that the statements set forth under the headings "The
Mortgage Pool," "Static Pool Information," "The Sponsor" or "The Servicer" in
the Prospectus Supplement or "The Sponsor," "The Mortgage Loan Programs" or
"Servicing of the Mortgage Loans," in the Prospectus constitute the only
information furnished in writing by or on behalf of BANA for inclusion in the
documents referred to in the foregoing indemnity.
(d) Promptly after receipt by an indemnified party under this Section 8 of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 8, notify the indemnifying party in writing of the commencement thereof;
but the omission so to notify the indemnifying party will not relieve it from
any liability which it may have to any indemnified party otherwise than under
this Section 8. In case any such action is brought against any indemnified
party, and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein, and, to the extent
that it may elect by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party;
provided, however, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have
the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party
to such indemnified party of its election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 8 for any legal
or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof unless (i) the indemnified party shall have employed
separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel, approved by the Representative in the case of
subparagraphs (a) or (c), representing the indemnified parties under
subparagraphs (a) or (c) who are parties to such action), (ii) the indemnifying
party shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice
of commencement of the action or (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the
indemnifying party; and except that if clause (i) or (iii) is applicable, such
liability shall be only in respect of the counsel referred to in such clause (i)
or (iii).
(e) To provide for just and equitable contribution in circumstances in
which the indemnification provided for in paragraphs (a), (b) or (c) of this
Section 8 is due in accordance with its terms but is for any reason held by a
court to be unavailable from the Company, the Underwriter or BANA on the grounds
of policy or otherwise, the Company, any Underwriter, or BANA shall contribute
to the aggregate losses, claims, damages and liabilities (including legal or
other expenses reasonably incurred in connection with investigating or defending
same) to which the Company, one or more of the Underwriters or BANA may be
subject, as follows:
(i) in the case of any losses, claims, damages and liabilities (or
actions in respect thereof) which do not arise out of or are not based
upon any untrue statement or omission of a material fact in any Free
Writing Prospectus, in such proportion as is appropriate to reflect the
relative benefit received by each of the Company, each Underwriter and
BANA; and
(ii) in the case of any losses, claims, damages and liabilities (or
actions in respect thereof) which arise out of or are based upon any
untrue statement or omission of a material fact in any Free Writing
Prospectus, in such proportion as is appropriate to reflect the relative
fault of the Company, each Underwriter and BANA in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state
a material fact in such Free Writing Prospectus results from information
prepared by the Company, any Underwriter or BANA and the parties' relative
intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
Notwithstanding anything to the contrary in this paragraph (e), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 8, each person who
controls the Underwriter within the meaning of either the Act or the Exchange
Act shall have the same rights to contribution as the Underwriters, each person
who controls BANA within the meaning of either the Act or the Exchange Act shall
have the same rights to contribution as BANA and each person who controls the
Company within the meaning of either the Act or the Exchange Act, and each
officer of the Company who shall have signed the Registration Statement and each
director of the Company shall have the same rights to contribution as the
Company, subject in each case to the preceding sentence of this paragraph (e).
Any party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of
which a claim for contribution may be made against another party or parties
under this paragraph (e), notify such party or parties from whom contribution
may be sought, but the omission to so notify such party or parties shall not
relieve the party or parties from whom contribution may be sought from any other
obligation it or they may have hereunder or otherwise than under this paragraph
(e).
SECTION 9. Representations and Indemnities to Survive; No Fiduciary Duty.
(a) The respective agreements, representations, warranties, indemnities
and other statements of the Company and its respective officers, BANA and of the
Underwriters set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation made by or on behalf of the
Underwriters, BANA or the Company or any of the officers, directors or
controlling persons referred to in Section 8 hereof, and will survive delivery
of and payment for the Offered Certificates. The provisions of Sections 7 and 8
hereof and this Section 9 shall survive the termination or cancellation of this
Agreement.
(b) Each of BANA and the Company acknowledges and agrees that in
connection with all aspects of the transactions contemplated herein, BANA, the
Company and their affiliates each have arm's-length business relationships with
the Underwriters and their affiliates that create no fiduciary duty on the part
of the Underwriters or any of their affiliates, and each such party expressly
disclaims any fiduciary relationship.
SECTION 10. Effectiveness of Agreement and Termination. This Agreement
shall become effective upon the execution and delivery hereof by the parties
hereto.
This Agreement shall be subject to termination in the absolute discretion
of the Representative, by notice given to the Company prior to delivery of and
payment for the Offered Certificates, if prior to such time (i) trading in
securities generally on the New York Stock Exchange shall have been suspended or
limited or minimum prices shall have been established on such Exchange, (ii) a
banking moratorium shall have been declared by federal authorities or (iii)
there shall have occurred any outbreak or material escalation of hostilities or
other calamity or crisis the effect of which on the financial markets of the
United States is such as to make it, in the reasonable judgment of the
Representative, impracticable to market the Offered Certificates.
SECTION 11. Offering Communications; Free Writing Prospectuses.
(a) Unless preceded or accompanied by a prospectus satisfying the
requirements of Section 10(a) of the Act, the Underwriters shall not convey or
deliver any written communication to any person in connection with the initial
offering of the Certificates, unless such written communication (i) is made in
reliance on Rule 134 under the Act, (ii) constitutes a prospectus satisfying the
requirements of Rule 430B under the Act or (iii) constitutes a "free writing
prospectus," as defined in Rule 405 under the Act (a "Free Writing Prospectus"),
provided to an Underwriter by the Representative to be used by such Underwriter
in connection with the initial offering of the Offered Certificates. Without
limitation thereby, without the prior written consent of the Company (which
consent may be withheld for any reason), the Underwriters shall not convey or
deliver in connection with the initial offering of the Certificates any "ABS
informational and computational material," as defined in Item 1101(a) of
Regulation AB under the Act ("ABS Informational and Computational Material"), in
reliance upon Rules 167 and 426 under the Act.
(b) (i) The Representative shall deliver to the Company, no later than two
business days prior to the date of first use thereof, (A) any Free Writing
Prospectus prepared by or on behalf of the Representative that contains any
"issuer information," as defined in Rule 433(h) under the Act ("Issuer
Information"), and (B) any Free Writing Prospectus or portion thereof that
contains only a description of the final terms of the Certificates.
(ii) Notwithstanding the provisions of Section (b)(i), any Free
Writing Prospectus described therein that contains only ABS Informational and
Computational Materials, may be delivered by the Representative to the Company
not later than the later of (a) two business days prior to the due date for
filing of the Prospectus pursuant to Rule 424(b) under the Act or (b) the date
of first use of such Free Writing Prospectus.
(c) Each Underwriter severally represents and warrants to the Company that
the Free Writing Prospectuses to be furnished to the Company by the
Representative pursuant to Section 9(b)(i) or (ii) will constitute all Free
Writing Prospectuses of the type described therein that were furnished to
prospective investors by such Underwriter in connection with its offer and sale
of the Certificates.
(d) The Representative represents and warrants to the Company that each
Free Writing Prospectus required to be provided by it to the Company pursuant to
Section 11(b)(i) or (ii) did not, as of the date such Free Writing Prospectus
was conveyed or delivered to any prospective investor, include any untrue
statement of a material fact or omit any material fact required to be stated
therein necessary to make the statements contained therein, in light of the
circumstances under which they were made, not misleading; provided however, that
the Representative makes no representation to the extent such misstatements or
omissions were the result of any inaccurate Issuer Information supplied by the
Company to the Representative which information was not corrected by information
subsequently supplied by the Company to the Representative prior to the sale to
the investor of the Certificates which resulted in a loss, claim, damage or
liability arising out of a based upon such misstatement or omission.
(e) The Company agrees to file with the Commission the following:
(i) Any Free Writing Prospectus that constitutes an "issuer free
writing prospectus," as defined in Rule 433(h) under the Act;
(ii) Any Free Writing Prospectus or portion thereof delivered by any
of the Underwriters to the Company pursuant to Section 11(b) hereof; and
(iii) Any Free Writing Prospectus for which the Company or any
person acting on its behalf provided, authorized or approved information that is
prepared and published or disseminated by a person unaffiliated with the Company
or any other offering participant that is in the business of publishing, radio
or television broadcasting or otherwise disseminating communications.
(f) Any Free Writing Prospectus required to be filed pursuant to Section
11(e) by the Company shall be filed with the Commission not later than the date
of first use of the Free Writing Prospectus, except that:
(i) any Free Writing Prospectus or portion thereof required to be
filed that contains only the description of the final terms of the Certificates
may be filed by the Company within two days of the later of the date such final
terms have been established for all classes of Certificates and the date of
first use;
(ii) any Free Writing Prospectus or portion thereof required to be
filed that contains only ABS Informational and Computational Material may be
filed by the Company with the Commission not later than the later of the due
date for filing the final Prospectus relating to the Certificates pursuant to
Rule 424(b) under the Act or two business days after the first use of such Free
Writing Prospectus;
(iii) any Free Writing Prospectus required to be filed pursuant to
Section 11(e)(3) may, if no payment has been made or consideration has been
given by or on behalf of the Company for the Free Writing Prospectus or its
dissemination, be filed by the Company with the Commission not later than four
business days after the Company becomes aware of the publication, radio or
television broadcast or other dissemination of the Free Writing Prospectus; and
(iv) the Issuer shall not be required to file (A) Issuer Information
contained in any Free Writing Prospectus of an offering participant other than
the Issuer, if such information is included or incorporated by reference in a
prospectus or Free Writing Prospectus previously filed with the Commission that
relates to the offering of the Certificates, or (B) any Free Writing Prospectus
or portion thereof that contains a description of the Certificates or the
offering of the Certificates which does reflect the final terms thereof.
(g) The Representative shall file with the Commission any Free Writing
Prospectus that is used or referred to by it and distributed by or on behalf of
the Representative in a manner reasonably designed to lead to its broad,
unrestricted dissemination not later than the date of the first use of such Free
Writing Prospectus.
(h) Notwithstanding the provisions of Section 11(g), the Representative
shall file with the Commission any Free Writing Prospectus for which the
Representative or any person acting on its behalf provided, authorized or
approved information that is prepared and published or disseminated by a person
unaffiliated with the Company or any other offering participant that is in the
business of publishing, radio or television broadcasting or otherwise
disseminating written communications and for which no payment was made or
consideration given by or on behalf of the Company or any other offering
participant, not later than four business days after the Representative becomes
aware of the publication, radio or television broadcast or other dissemination
of the Free Writing Prospectus.
(i) Notwithstanding the provisions of Sections 11(e) and 11(g), neither
the Issuer nor the Representative shall be required to file any Free Writing
Prospectus that does not contain substantive changes from or additions to a Free
Writing Prospectus previously filed with the Commission.
(j) The Company and the Representative each agree that any Free Writing
Prospectuses prepared by it shall contain the following legend:
The issuer has filed a registration statement (including a prospectus)
with the SEC for the offering to which this communication relates. Before
you invest, you should read the prospectus in that registration statement
and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these
documents for free by visiting XXXXX on the SEC Web site at xxx.xxx.xxx.
Alternatively, the issuer, any underwriter or any dealer participating in
the offering will arrange to send you the prospectus if you request it by
calling toll-free 1-8[xx-xxx-xxxx].
(k) The Company and the Representative agree to retain all Free Writing
Prospectuses that they have used and that are not required to be filed pursuant
to this Section 11 for a period of three years following the initial bona fide
offering of the Certificates.
SECTION 12. Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notice to the
Underwriters shall be directed to the Representative at 000 Xxxxx Xxxxx Xxxxxx,
XX0-000-00-00, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention: Xxxxx Xxxxx; notices
to the Company shall be directed to it at Banc of America Mortgage Securities,
Inc., 000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention:
Associate General Counsel, with a copy to the Treasurer; and notices to BANA
shall be directed to Bank of America, National Association, 000 Xxxxx Xxxxx
Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attn: Associate General Counsel, with a
copy to the Treasurer.
SECTION 13. Parties. This Agreement shall inure to the benefit of and be
binding upon the Company, the Underwriters, BANA, any controlling persons
referred to herein and their respective successors and assigns. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any other person, firm or corporation any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision herein
contained. No purchaser of Offered Certificates from any Underwriter shall be
deemed to be a successor by reason merely of such purchase.
SECTION 14. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW (BUT WITH
REFERENCE TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH BY
ITS TERMS APPLIES TO THIS AGREEMENT).
SECTION 15. No Advisory or Fiduciary Responsibility. The Company
acknowledges and agrees that: (i) the purchase and sale of the Offered
Certificates pursuant to this Agreement, including the determination of the
public offering price of the Offered Certificates and any related discounts and
commissions, is an arm's-length commercial transaction between the Company, on
the one hand, and the Underwriters on the other hand, and the Company is capable
of evaluating and understanding and understands and accepts the terms, risks and
conditions of the transactions contemplated by this Agreement; (ii) in
connection with each transaction contemplated hereby and the process leading to
such transaction each Underwriter is and has been acting solely as a principal
and is not the agent or fiduciary of the Company or its affiliates,
stockholders, creditors or employees or any other party; (iii) the Underwriters
have not assumed, nor will they assume, an advisory or fiduciary responsibility
in favor of the Company with respect to any of the transactions contemplated
hereby or the process leading thereto (irrespective of whether the Underwriters
have advised or are currently advising the Company on other matters) or any
other obligation to the Company except the obligations expressly set forth in
this Agreement; (iv) the Underwriters and their affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the
Company and that the Underwriters have no obligation to disclose any of such
interests by virtue of any fiduciary or advisory relationship; and (v) the
Underwriters have not provided any legal, accounting, regulatory or tax advice
with respect to the offering contemplated hereby and the Company has consulted
its own legal, accounting, regulatory and tax advisors to the extent it deemed
appropriate.
This Agreement supersedes all prior agreements and understandings (whether
written or oral) between the Company and the Underwriters with respect to the
subject matter hereof. The Company hereby waives and releases, to the fullest
extent permitted by law, any claims that the Company may have against the
Underwriters with respect to any breach or alleged breach of fiduciary duty.
SECTION 16. Miscellaneous.
(a) This Agreement supersedes all prior or contemporaneous agreements and
understandings relating to the subject matter hereof.
(b) Neither this Agreement nor any term hereof may be changed, waived,
discharged or terminated except by a writing signed by the party against whom
enforcement of such change, waiver, discharge or termination is sought.
(c) This Agreement may be signed in any number of counterparts each of
which shall be deemed an original, which taken together shall constitute one and
the same instrument.
(d) The headings of the Sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.
SECTION 17. Non-Petition.
The Underwriters hereby agree not to cause or participate in the filing of
a petition in bankruptcy against the Company for the non-payment to the
Underwriters of any amounts provided by this Agreement or otherwise until one
year and one day after the payment in full of all amounts due on the
Certificates in accordance with the terms of the Pooling Agreement.
If the foregoing is in accordance with your understanding of our agreement,
please sign and return a counterpart hereof to us, whereupon this letter shall
constitute a binding agreement between each of the Underwriters and the Company.
It is understood that your acceptance of this letter on behalf of each of the
Underwriters is pursuant to the authority set forth in an Agreement among
Underwriters, the form of which shall be submitted to the Company for
examination upon request, but without warranty on your part as to the authority
of the signers thereof.
Very truly yours,
BANC OF AMERICA MORTGAGE
SECURITIES, INC.
By:
-------------------------------
Name: Xxxx Xxxxxx
Title:Vice President
The foregoing Agreement is hereby
confirmed and accepted as of the
date first written above.
BANC OF AMERICA SECURITIES LLC
For itself and as Representative of the Underwriters
By:
---------------------------------
Name: Xxxx X. Xxxxxxxx
Title:Principal
Solely for purposes of Sections 8 and 9:
BANK OF AMERICA, NATIONAL ASSOCIATION
By:
---------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title:Senior Vice President
SCHEDULE I
Offered Certificates: Mortgage Pass Through Certificates, Series 2006-A, Class
1-A-1, Class 1-A-2, Class 1-A-R, Class 2-A-1, Class 2-A-2, Class 3-A-1, Class
3-A-2, Class 4-A-1 and Class 4-A-2.
Registration Statement File Number: 333-118843.
Initial Class Certificate Balances of Offered Certificates:
Initial Class
Class Certificate Balance
Class 1-A-1 $ 32,207,000.00
Class 1-A-2 $ 1,306,000.00
Class 1-A-R $ 100.00
Class 2-A-1 $ 141,435,000.00
Class 2-A-2 $ 5,734,000.00
Class 3-A-1 $ 48,035,000.00
Class 3-A-2 $ 1,948,000.00
Class 4-A-1 $ 76,232,000.00
Class 4-A-2 $ 3,091,000.00
Purchase Price: $311,209,328.48
Classes of Book-Entry Certificates: Class 1-A-1, Class 1-A-2, Class 2-A-1,
Class 2-A-2, Class 3-A-1, Class 3-A-2,
Class 4-A-1 and Class 4-A-2.
Description of Mortgage Loans: A pool of adjustable rate first
mortgage loans having an aggregate
principal balance as of the Cut-off
Date of approximately $322,066,720.69.
The Mortgage Loans are adjustable
interest rate mortgage loans secured by
one- to four-family residential
properties.
Denominations: The Offered Certificates listed above
under Book-Entry Certificates will be
issued in book-entry form. Each such
Class of Certificates will be evidenced
by one or more certificates registered
in the name of Cede & Co. ("Cede") in
the aggregate amount equal to the
Initial Class Certificate Balance of
such Class. Interests in such Classes
of Offered Certificates issued in the
name of Cede may be purchased by
investors in minimum denominations of
$1,000 and integral multiples of $1.
The Class 1-A-R Certificate will be
issued as a single certificate in a
denomination of $100.
Cut-off Date: January 1, 2006.
Pass-Through Rate:
Class Rate
------------------- --------------------
Class 1-A-1 (1)
Class 1-A-2 (1)
Class 1-A-R (1)
Class 2-A-1 (2)
Class 2-A-2 (2)
Class 3-A-1 (3)
Class 3-A-2 (3)
Class 4-A-1 (4)
Class 4-A-2 (4)
(1) Interest will accrue on these Certificates at a per annum rate equal to the
Net WAC for the Group 1 Mortgage Loans.
(2) Interest will accrue on these Certificates at a per annum rate equal to the
Net WAC for the Group 2 Mortgage Loans.
(3) Interest will accrue on these Certificates at a per annum rate equal to the
Net WAC for the Group 3 Mortgage Loans.
(4) Interest will accrue on these Certificates at a per annum rate equal to the
Net WAC for the Group 4 Mortgage Loans.
Certificate Ratings:
Class S&P Fitch
----- --- -----
Class 1-A-1 AAA AAA
Class 1-A-2 AAA AAA
Class 1-A-R AAA AAA
Class 2-A-1 AAA AAA
Class 2-A-2 AAA AAA
Class 3-A-1 AAA AAA
Class 3-A-2 AAA AAA
Class 4-A-1 AAA AAA
Class 4-A-2 AAA AAA
Percentages:
% of Class % of Class % of Class % of Class % of Class % of Class
1-A-1 1-A-2 1-A-R 2-A-1 2-A-2 3-A-1
Underwriter Certificates Certificates Certificate Certificates Certificates Certificates
----------- ------------ ------------ ----------- ------------ ------------ ------------
Banc of America Securities LLC...... 55.00% 55.00% 100.00% 55.00% 55.00% 55.00%
Xxxxxx Brothers Inc................. 22.50% 22.50% 0% 22.50% 22.50% 22.50%
Bear, Xxxxxxx & Co. Inc............. 22.50% 22.50% 0% 22.50% 22.50% 22.50%
Total.......................... 100% 100% 100% 100% 100% 100%
==== ==== ==== ==== ==== ====
% of Class % of Class % of Class
3-A-2 4-A-1 4-A-2
Underwriter Certificates Certificates Certificates
----------- ------------ ------------ ------------
Banc of America Securities LLC...... 55.00% 55.00% 55.00%
Xxxxxx Brothers Inc................. 22.50% 22.50% 22.50%
Bear, Xxxxxxx & Co. Inc............. 22.50% 22.50% 22.50%
Total.......................... 100% 100% 100%
==== ==== ====
