FIRST HORIZON ASSET SECURITIES INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2006-AR1 TERMS AGREEMENT (to Underwriting Agreement, dated March 24, 2006 among the Company, First Horizon Home Loan Corporation and the Underwriter)
EXECUTION
FIRST
HORIZON ASSET SECURITIES INC.
MORTGAGE
PASS-THROUGH CERTIFICATES
SERIES
2006-AR1
(to
Underwriting Agreement,
dated
March 24, 2006
among
the
Company, First Horizon
Home
Loan
Corporation
and
the
Underwriter)
First
Horizon Asset Securities Inc. Xxxxxxxxx, Xxxxx Xxxxxxxx
0000
Horizon WayMarch
24,
2006
Xxxxxx,
Xxxxx 00000
Banc
of
America Securities LLC (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-AR1, Mortgage Pass-Through Certificates, Series 2006-AR1 (the “Series
2006-AR1 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-AR1 Certificates are registered with the
Securities and Exchange Commission by means of an effective Registration
Statement (No. 333-125158). Capitalized terms used and not defined herein have
the meanings given them in the Underwriting Agreement.
Section
1. The
Mortgage Pools:
The
Series 2006-AR1 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
March 1, 2006 (the “Cut-off Date”):
(a) Aggregate
Principal Amount of the Mortgage Pools:
Approximately $212,575,515
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:
(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%:
|
Required
Ratings
|
||||||||||||||||
|
Class
|
Class
Principal Balance
|
Pass-Through
Rate(1)
|
Class
Purchase Price Percentage
|
Fitch
|
S&P
|
|||||||||||
|
Class
B-1
|
$
|
5,314,000.00
|
5.9444
|
%
|
99.656250000
|
%
|
AA
|
N/R
|
||||||||
|
Class
B-2
|
$
|
1,594,000.00
|
5.9444
|
%
|
98.703125000
|
%
|
A
|
N/R
|
||||||||
|
Class
B-3
|
$
|
957,000.00
|
5.9444
|
%
|
96.562500000
|
%
|
BBB
|
N/R
|
||||||||
(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, March 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.
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.
| Very truly yours, | |
| BANC OF AMERICA SECURITIES LLC | |
| By:__________________________________ | |
|
Name:
|
|
|
Title:
|
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
