EXECUTION
FIRST HORIZON ASSET
SECURITIES INC.
MORTGAGE PASS-THROUGH CERTIFICATES
(Issuable in Series)
UNDERWRITING AGREEMENT
----------------------
Citigroup Global Markets Inc. August 24, 2005
000 Xxxxxxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
First Horizon Asset Securities Inc., a corporation organized and existing
under the laws of the State of Delaware (the "Company"), may offer for sale to
you and to each of the other several underwriters, if any, participating in an
underwriting syndicate managed by you, from time to time its Mortgage
Pass-Through Certificates evidencing interests in pools of mortgage loans (the
"Certificates"). The Certificates may be issued in various series, and within
each series, in one or more classes, in one or more offerings on terms
determined at the time of sale (each such series, a "Series" and each such
class, a "Class"). Each Series of the Certificates will be issued under a
separate Pooling and Servicing Agreement (each, a "Pooling and Servicing
Agreement") to be dated as of the respective cut-off date (each, a "Cut-off
Date") among the Company, as depositor, First Horizon Home Loan Corporation, as
seller and master servicer, and The Bank of New York, as trustee (the
"Trustee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the related Pooling and Servicing Agreement.
The Certificates issued under each Pooling and Servicing Agreement will
represent the entire beneficial ownership interest in a trust fund (the "Trust
Fund") established by such Pooling and Servicing Agreement. The assets of each
Trust Fund will consist primarily of (i) one or more pools of conventional,
fixed rate, first lien, fully amortizing, one- to four-family residential
mortgage loans (the "Mortgage Loans") having the original terms to maturity
specified in the related Terms Agreement referred to hereinbelow, (ii) mortgage
pass-through securities issued or guaranteed by Xxxxxx Xxx, Xxxxxx Xxx or
Xxxxxxx Mac, or (iii) private mortgage-backed securities backed by first lien
mortgage loans secured by one- to four-family residential properties or
participations therein. If so specified in the related Terms Agreement, one or
more elections may be made to treat the assets of each Trust Fund as a real
estate mortgage investment conduit (each, a "REMIC") for federal income tax
purposes.
Whenever the Company determines to make an offering of Certificates (each,
a "Certificate Offering") pursuant to this Agreement through you, it will enter
into an agreement (the "Terms Agreement") providing for the sale of specified
Classes of Offered Certificates (as defined below) to, and the purchase and
public offering thereof by, you and such other underwriters, if any, selected by
you as have authorized you to enter into such Terms Agreement on their behalf
(the underwriters in any such Terms Agreement being referred to herein as
"Underwriters," which term shall include you whether acting alone in the sale of
any Series of Certificates or as a member of the underwriting syndicate). Each
such Certificate Offering which the Company elects to make pursuant to this
Agreement shall be governed by this Agreement, as supplemented by the related
Terms Agreement. Each Terms Agreement, which shall be substantially in the form
of Exhibit A hereto, shall specify, among other things, the Classes of
Certificates to be purchased by the Underwriters (the "Offered Certificates"),
the names of the Underwriters participating in such offering (subject to
substitution as provided in Section 16 hereof) and the principal amount of the
Offered Certificates which each severally agrees to purchase, the names of such
other Underwriters, if any, acting as co-managers with you in connection with
each offering, the principal balance or balances of the Offered Certificates,
each subject to any stated variance, and the price or prices at which such
Offered Certificates are to be purchased by the Underwriters from the Company.
1. Representations and Warranties. The Company represents and warrants to
and agrees with each Underwriter, as of the date of the related Terms Agreement,
that:
(a) The registration statement specified in the related Terms
Agreement, on Form S-3, including a prospectus, has been filed with the
Securities and Exchange Commission (the "Commission") for the registration
under the Securities Act of 1933, as amended (the "Act"), of mortgage
pass-through certificates issuable in series, which registration statement
has been declared effective by the Commission. Such registration
statement, as amended to the date of the related Terms Agreement,
including any documents incorporated by reference therein pursuant to Item
12 of Form S-3 under the Act which were filed under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), on or before the
effective date of the Registration Statement, is hereinafter called the
"Registration Statement", and such prospectus, as such prospectus is
supplemented by a prospectus supplement relating to the Offered
Certificates of the related Series, each in the form first filed after the
date of the related Terms Agreement pursuant to Rule 424(b) under the Act,
including any documents incorporated by reference therein pursuant to Item
12 of Form S-3 under the Act which were filed under the Exchange Act on or
before the date of such prospectus supplement (other than any such
incorporated documents that relate to Collateral Term Sheets (as defined
herein))(such prospectus supplement, including such incorporated documents
(other than those that relate to Collateral Term Sheets), in the form
first filed after the date of the related Terms Agreement pursuant to Rule
424(b) is hereinafter called the "Prospectus Supplement"), is hereinafter
called the "Prospectus". Any reference herein to the terms "amend",
"amendment" or "supplement" with respect to the Registration Statement,
the Prospectus or the Prospectus Supplement shall be deemed to refer to
and include the filing of any document under the Exchange Act after the
effective date of the Registration Statement or the issue date of the
Prospectus or Prospectus Supplement, as the case may be, deemed to be
incorporated therein by reference pursuant to Item 12 of Form S-3 under
the Act.
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(b) The related Registration Statement, at the time it became
effective, and the Prospectus contained therein, and any amendments
thereof and supplements thereto filed prior to the date of the related
Terms Agreement, conformed in all material respects to the requirements of
the Act and the rules and regulations of the Commission thereunder; on the
date of the related Terms Agreement and on each Closing Date (as defined
in Section 3 below), the related Registration Statement and the related
Prospectus, and any amendments thereof and supplements thereto, will
conform in all material respects to the requirements of the Act and the
rules and regulations of the Commission thereunder; such Registration
Statement, at the time it became effective, did not contain any untrue
statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not
misleading; such Prospectus, on the date of any filing pursuant to Rule
424(b) and on each Closing Date, will not include any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they are
made, not misleading; and the detailed description (each, a "Detailed
Description") filed in connection with any Pre-Funding Arrangement
referred to in such Prospectus, on each closing date relating to the
purchase of the related Subsequent mortgage loans and the date of any
filing thereof under cover of Form 8-K, will not include any untrue
statement of a material fact or omit to state any information which such
Prospectus states will be included in such Detailed Description; provided,
however, that the Company makes no representations or warranties as to the
information contained in or omitted from (A) such Registration Statement
or such Prospectus (or any supplement thereto) in reliance upon and in
conformity with written information furnished to the Company by or on
behalf of any Underwriter specifically for use in the preparation thereof
or (B) any Current Report (as defined in Section 5(b) below), or in any
amendment thereof or supplement thereto, incorporated by reference in such
Registration Statement or such Prospectus (or any amendment thereof or
supplement thereto).
(c) The Certificates of the related Series will conform to the
description thereof contained in the related Prospectus; will each, if
rated at the time of issuance in one of the two highest rating categories
by a nationally recognized statistical rating organization, be when issued
a "mortgage related security" as such term is defined in Section 3(a)(41)
of the Exchange Act, and will each on the related Closing Date be duly and
validly authorized, and, when validly executed, countersigned, issued and
delivered in accordance with the related Pooling and Servicing Agreement
and sold to the Underwriters as provided herein and in the related Terms
Agreement, will each be validly issued and outstanding and entitled to the
benefits of the related Pooling and Servicing Agreement.
(d) Neither the issuance nor sale of the Certificates of the related
Series nor the consummation of any other of the transactions herein
contemplated, nor the fulfillment of the terms hereof or of the related
Terms Agreement, will conflict with any statute, order or regulation
applicable to the Company of any court, regulatory body, administrative
agency or governmental body having jurisdiction over the Company or with
any organizational document of the Company or any instrument or any
agreement under which the Company is bound or to which it is a party.
(e) This Agreement and the related Terms Agreement have been duly
authorized, executed and delivered by the Company.
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(f) At or prior to the related Closing Date, the Company will have
entered into the related Pooling and Servicing Agreement and, assuming the
due authorization, execution and delivery thereof by the other parties
thereto, such Pooling and Servicing Agreement (on such Closing Date) will
constitute the valid and binding agreement of the Company enforceable in
accordance with its terms, subject as to enforceability, to bankruptcy,
insolvency, reorganization or other similar laws affecting creditors'
rights and to general principles of equity (regardless of whether the
enforceability of such Pooling and Servicing Agreement is considered in a
proceeding in equity or at law).
2. Purchase and Sale. Subject to the execution of the Terms Agreement for
a particular Certificate Offering and subject to the terms and conditions and in
reliance upon the representations and warranties set forth in this Agreement and
such Terms Agreement, the Company agrees to sell to each Underwriter, severally
and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Company, the respective original principal amounts of the
Offered Certificates set forth in the applicable Terms Agreement opposite the
name of such Underwriter, plus any additional original principal amount of
Offered Certificates which such Underwriter may be obligated to purchase
pursuant to Section 16 hereof at the purchase price therefor set forth in such
Terms Agreement (the "Purchase Price").
The parties hereto agree that settlement for all securities sold pursuant
to this Agreement and the applicable Terms Agreement shall take place on the
settlement date agreed upon at the time of the related transaction and set forth
as the "Closing Date" in such Terms Agreement and not as set forth in Rule
15c6-1(a) of the Exchange Act.
3. Delivery and Payment. Delivery of and payment for the Offered
Certificates of a Series shall be made at the offices of Xxxxxxx Xxxxx LLP,
Dallas, Texas, at 10:00 A.M., Dallas time, on the Closing Date specified in the
related Terms Agreement, which date and time may be postponed by agreement
between you and the Company (such date and time being herein called the "Closing
Date"). Delivery of such Offered Certificates shall be made to you for the
respective accounts of the Underwriters against payment of the Purchase Price
thereof to or upon the order of the Company by wire transfer in federal or other
immediately available funds or by check payable in federal funds, as the Company
shall specify no later than five full business days prior to such Closing Date.
Unless delivery is made through the facilities of The Depository Trust Company,
the Offered Certificates shall be registered in such names and in such
authorized denominations as you may request not less than two full business days
in advance of each Closing Date.
The Company agrees to notify you at least two business days before each
Closing Date of the exact principal balance evidenced by the Offered
Certificates and to have such Offered Certificates available for inspection,
checking and packaging in Dallas, Texas, no later than 12:00 noon on the
business day prior to such Closing Date.
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4. Offering by the Underwriter. It is understood that the Underwriters
propose to offer the Offered Certificates of the related Series for sale to the
public as set forth in the related Prospectus.
5. Agreements. The Company acknowledges and agrees with each Underwriter
that:
(a) The Company will cause the Prospectus as supplemented by a
Prospectus Supplement relating to the Offered Certificates to be filed
pursuant to Rule 424 under the Act and will promptly advise you when such
Prospectus as so supplemented has been so filed, and prior to the
termination of the Certificate Offering to which such Prospectus relates
also will promptly advise you (i) when any amendment to the related
Registration Statement specifically relating to such Offered Certificates
shall have become effective or any further supplement to such Prospectus
has been filed, (ii) of any request by the Commission for any amendment of
such Registration Statement or Prospectus or for any additional
information, (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of such Registration Statement or the
institution or threatening of any proceeding for that purpose and (iv) of
the receipt by the Company of any written notification with respect to the
suspension of the qualification of such Offered Certificates for sale in
any jurisdiction or the initiation or threatening of any proceeding for
such purpose. The Company will not file any amendment of the related
Registration Statement or supplement to the related Prospectus (other than
any amendment or supplement specifically relating to one or more Series of
mortgage pass-through certificates other than the Series that includes the
related Offered Certificates or any Exchange Act filings other than
Current Reports) unless the Company has furnished you and your counsel
with a copy for your respective review prior to filing and you have
consented to such filing. 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) The Company will cause any Computational Materials and any
Structural Term Sheets (each as defined in Section 8 below) with respect
to the Offered Certificates of a Series that are delivered by any
Underwriter to the Company pursuant to Section 8 to be filed with the
Commission on a Current Report on Form 8-K (each such filing of such
materials, a "Current Report") pursuant to Rule 13a-11 under the Exchange
Act on the business day immediately following the later of (i) the day on
which such Computational Materials and Structural Term Sheets are
delivered to counsel for the Company by such Underwriter, and (ii) the
date on which this Agreement is executed and delivered. The Company will
cause any Collateral Term Sheet (as defined in Section 9 below) with
respect to the Offered Certificates of a Series that is delivered by any
Underwriter to the Company in accordance with the provisions of Section 9
to be filed with the Commission on a Current Report pursuant to Rule
13a-11 under the Exchange Act on the business day immediately following
the day on which such Collateral Term Sheet is delivered to counsel for
the Company by such Underwriter. Each such Current Report shall be
incorporated by reference in the related Prospectus and the related
Registration Statement.
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(c) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, any
event occurs as a result of which the related 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 at any time to amend or supplement the related
Prospectus to comply with the Act or the rules thereunder, the Company
promptly shall prepare and file with the Commission, subject to the
penultimate 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.
(d) The Company will furnish to each Underwriter and counsel for the
Underwriters, without charge, as many signed copies of the related
Registration Statement (including exhibits thereto) and, so long as
delivery of a prospectus by such Underwriter or dealer may be required by
the Act, as many copies of the related Prospectus and any supplements
thereto as such Underwriter may reasonably request.
(e) The Company will furnish such information, execute such
instruments and take such actions as may be reasonably requested by you to
qualify the Offered Certificates of a Series for sale under the laws of
such jurisdictions as the Underwriter may designate, to maintain such
qualifications in effect so long as required for the distribution of such
Offered Certificates and to determine the legality of such Offered
Certificates for purchase by institutional investors; provided, however,
that the Company shall not be required to qualify to do business in any
jurisdiction where it is not qualified on the date of the related Terms
Agreement or to take any action which would subject it to general or
unlimited service of process in any jurisdiction in which it is not, on
the date of the related Terms Agreement, subject to such service of
process.
(f) So long as the Offered Certificates of a Series are outstanding,
the Company will furnish to each Underwriter, upon request, copies of the
annual independent public accountants' servicing report furnished to the
Trustee pursuant to the related Pooling and Servicing Agreement.
(g) Unless otherwise specified in the related Terms Agreement, the
Company will pay, and First Horizon Home Loan Corporation will cause the
Company to pay, all expenses incident to the performance of the Company's
obligations under this Agreement and the applicable Terms Agreement (other
than the expenses of Deloitte & Touche LLP under Sections 8(c) and 9(c)
hereof, the Underwriters' due diligence expenses, the Underwriters'
counsel fees and the Underwriters' own expenses, which will be paid by the
Underwriters), including and without limitation those related to: (i) the
filing of the Registration Statement with respect to the Certificates and
all amendments thereto, (ii) the printing or photocopying and delivery to
the Underwriters, in such quantities as you may reasonably request, of
copies of this Agreement and the Terms Agreement, (iii) the preparation,
registration, issuance and delivery to the Underwriters of the
Certificates underwritten pursuant to this Agreement, (iv) the fees and
disbursements of the Company's counsel and accountants, and of any counsel
rendering a closing opinion with respect to matters of local law, (v) the
qualification of the Certificates underwritten pursuant to this Agreement
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under securities and Blue Sky laws and the determination of the
eligibility of the Certificates for investment, including filing fees in
connection therewith, (vi) the printing and delivery to the Underwriters,
in such quantities as they may reasonably request, of copies of the
Registration Statement with respect to the Certificates underwritten
pursuant to this Agreement and all amendments thereto, of any preliminary
prospectus and preliminary prospectus supplement and of the Final
Prospectus and all amendments and supplements thereto and all documents
incorporated therein (other than exhibits to any Current Report), and of
any Blue Sky Survey and Legal Investment Survey, (vii) the printing or
photocopying and delivery to the Underwriters, in such quantities as you
may reasonably request, of copies of the applicable Pooling Agreement,
(viii) the fees charged by investment rating agencies requested by the
Company to rate the Certificates underwritten pursuant to this Agreement,
(ix) the fees and expenses, if any, incurred in connection with the
listing of the Certificates underwritten pursuant to this Agreement on any
national securities exchange; and (x) the fees and expenses of the Trustee
and its counsel.
(h) The Underwriters are acting as principals and not as agents or
fiduciaries of the Company.
(i) The Company's engagement of the Underwriters in connection with
the Certificate Offering is as independent contractors and not in any
other capacity.
(j) The Company is solely responsible for making its own judgments
in connection with the Certificate Offering (irrespective of whether the
Underwriters have advised or are currently advising the Company on related
or other matters).
6. Conditions to the Obligations of the Underwriters. The obligations of
the Underwriters to purchase the Offered Certificates of any Series shall be
subject to the accuracy in all material respects of the representations and
warranties on the part of the Company contained in this Agreement, as
supplemented by the related Terms Agreement, as of the respective dates thereof
and the related Closing Date, to the accuracy of the statements of the Company
made in any applicable officers' certificates pursuant to the provisions hereof,
to the performance by the Company of its obligations under this Agreement and
such Terms Agreement and to the following additional conditions applicable to
the related Certificate Offering:
(a) No stop order suspending the effectiveness of the related
Registration Statement shall have been issued and no proceedings for that
purpose shall have been instituted or threatened.
(b) Xxxxxxx Xxxxx LLP, counsel for the Company, shall have furnished
to you an opinion addressed to the Underwriters, dated the related Closing
Date, to the effect that:
(i) this Agreement and the related Terms Agreement have been
duly executed and delivered by the Company under the laws of the
State of New York;
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(ii) the related Pooling and Servicing Agreement has been duly
executed and delivered by the Company under the laws of the State of
New York and is a legal, valid and binding agreement of the Company
enforceable against the Company in accordance with its terms;
(iii) the Offered Certificates, when duly executed and
countersigned by the Trustee in accordance with the related Pooling
and Servicing Agreement, will be validly issued and outstanding and
entitled to the benefits of such Pooling and Servicing Agreement;
(iv) the related Pooling and Servicing Agreement is not
required to be qualified under the Trust Indenture Act of 1939, as
amended, and the trust created thereunder is not required to be
registered under the Investment Company Act of 1940, as amended;
(v) such counsel confirms that the related Registration
Statement is effective under the Act and, to the best of such
counsel's knowledge, no stop order with respect thereto has been
issued, and no proceeding for that purpose has been instituted or
threatened by the Commission; such Registration Statement (except
the financial statements and schedules and other financial and
statistical data included therein and the documents incorporated by
reference therein, as to which such counsel need express no view),
at the time it became effective and the related Prospectus (except
the financial statements and schedules, the other financial and
statistical data included therein and the documents incorporated by
reference therein), as of the date of the Prospectus Supplement
conformed in all material respects to the requirements of the Act
and the rules and regulations thereunder; and no information has
come to the attention of such counsel that causes it to believe that
(A) such Registration Statement (except the financial statements and
schedules and the other financial and statistical data included
therein and the documents incorporated by reference therein, as to
which such counsel need express no view) at the time it became
effective, contained an 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 not misleading or (B) such
Prospectus or any amendment or supplement thereto (except the
financial statements and schedules and the other financial and
statistical data included therein), as of the date of the Prospectus
Supplement, or at the related Closing Date, contained or contains an
untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading;
(vi) the statements set forth under the heading "Description
of the Certificates" in the related Prospectus, insofar as such
statements purport to summarize certain provisions of the related
Pooling and Servicing Agreement and the related Offered
Certificates, provide a fair summary of such provisions;
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(vii) the statements set forth in the related Prospectus under
the headings "Certain Legal Aspects of the Mortgage Loans",
"Material Federal Income Tax Consequences" (insofar as they relate
specifically to the purchase, ownership and disposition of the
related Offered Certificates) and "ERISA Considerations" (insofar as
they relate specifically to the purchase, ownership and disposition
of such Offered Certificates), to the extent that they constitute
matters of law or legal conclusions, provide a fair summary of such
law or conclusions;
(viii) assuming compliance with all provisions of the related
Pooling and Servicing Agreement, for federal income tax purposes,
(A) if any election is made to treat the assets of the Trust Fund as
a REMIC: the related Trust Fund (and any specified subgrouping
therein) will qualify as a REMIC pursuant to Section 860D of the
Internal Revenue Code of 1986, as amended (the "Code"), each Class
of Certificates of the related Series, other than the related
Residual Class or Classes, will constitute a class of "regular
interests" in the related REMIC within the meaning of the Code, and
each Class of such Certificates specified in the related Prospectus
as a Class of Residual Certificates will constitute the "residual
interest" in the related REMIC within the meaning of the Code; (B)
if no such REMIC election is made: the Trust Fund will be treated as
a "grantor trust"; and
(ix) assuming that some or all of the Offered Certificates of
the related Series shall be rated at the time of issuance in one of
the two highest rating categories by a nationally recognized
statistical rating organization, each Offered Certificate so rated
will be at the time of issuance, a "mortgage related security" as
such term is defined in Section 3(a)(41) of the Exchange Act.
Such opinion may express its reliance as to factual matters on the
representations and warranties made by, and on certificates or other documents
furnished by, officers of the parties to this Agreement, the related Terms
Agreement or the related Pooling and Servicing Agreement. Such opinion may
assume the due authorization, execution and delivery of the instruments and
documents referred to therein by the parties thereto other than the Company.
Such opinion may be qualified, insofar as it concerns the enforceability of the
documents referred to therein, to the extent that such enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights in general and by general equity
principles (regardless of whether such enforcement is considered in a proceeding
in equity or at law). Such opinion may be further qualified as expressing no
opinion as to (x) the statements in the related Prospectus under the heading
"Certain Legal Aspects of the Mortgage Loans" except insofar as such statements
relate to the laws of the State of New York and the laws of the United States,
and (y) the statements in such Prospectus under the headings "ERISA
Considerations" and "Material Federal Income Tax Consequences" except insofar as
such statements relate to the laws of the United States. In addition, such
opinion may be qualified as an opinion only on the laws of the States of New
York and Texas and the federal laws of the United States of America.
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(c) Xxxxxxx Xxxxx LLP, counsel for the Company, shall have furnished
to you an opinion addressed to the Underwriters, dated the related Closing
Date, to the effect that:
(i) The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the
State of Delaware, with corporate power to own its properties, to
conduct its business as described in the related Prospectus and to
enter into and perform its obligations under this Agreement, the
related Terms Agreement, the related Pooling and Servicing Agreement
and the Certificates of the related Series;
(ii) The Company has full power and authority to sell the
related Mortgage Loans as contemplated herein and in the related
Pooling and Servicing Agreement;
(iii) This Agreement, the related Terms Agreement and the
related Pooling and Servicing Agreement have been duly authorized,
executed and delivered by the Company under the laws of the State of
Delaware;
(iv) The issuance and sale of the Offered Certificates have
been duly authorized by the Company;
(v) No consent, approval, authorization or order of any court
or governmental agency or body is required for the consummation by
the Company of the transactions contemplated herein or in the
related Pooling and Servicing Agreement, except such as may be
required under the blue sky laws of any jurisdiction and such other
approvals as have been obtained;
(vi) Neither the issuance of the Certificates of the related
Series nor delivery of the related Offered Certificates, nor the
consummation of any other of the transactions contemplated in this
Agreement, the related Terms Agreement or the related Pooling and
Servicing Agreement, nor the fulfillment of the terms of the related
Certificates, the related Pooling and Servicing Agreement, this
Agreement or the related Terms Agreement will conflict with or
violate any term or provision of the articles of incorporation or
by-laws of the Company or any statute, order or regulation
applicable to the Company of any court, regulatory body,
administrative agency or governmental body having jurisdiction over
the Company and will not conflict with, result in a breach or
violation or the acceleration of or constitute a default under the
terms of any indenture or other agreement or instrument known to
such counsel to which the Company is a party or by which it is
bound; and
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(vii) There are no actions, proceedings or investigations
pending or, to the best knowledge of such counsel, threatened before
any court, administrative agency or other tribunal (i) asserting the
invalidity of this Agreement, the related Terms Agreement, the
related Pooling and Servicing Agreement or the related Certificates,
(ii) seeking to prevent the issuance of the Certificates of the
related Series or the consummation by the Company of any of the
transactions contemplated by this Agreement, such Terms Agreement or
such Pooling and Servicing Agreement, or (iii) which might
materially and adversely affect the performance by the Company of
its obligations under, or the validity or enforceability of, this
Agreement, such Terms Agreement, such Pooling and Servicing
Agreement or the related Certificates.
In rendering his or her opinion such counsel may rely as to matters
of fact, to the extent deemed proper and as stated therein, on
certificates of responsible officers of the Company or public officials.
In addition, such opinion may be qualified as an opinion only on the
general corporation laws of the State of Delaware.
(d) In-house counsel for First Horizon Home Loan Corporation (or its
ultimate parent) shall have furnished to you an opinion addressed to the
Underwriters, dated the related Closing Date, to the effect that:
(i) First Horizon Home Loan Corporation has been duly
incorporated and is validly existing as a corporation in good
standing under the laws of the State of Kansas, with corporate power
to own its properties, to conduct its business as described in the
related Prospectus and to enter into and perform its obligations
under this Agreement, the related Terms Agreement, the related
Pooling and Servicing Agreement and the Certificates of the related
Series;
(ii) First Horizon Home Loan Corporation has full power and
authority to sell and master service the related Mortgage Loans as
contemplated herein and in the related Pooling and Servicing
Agreement;
(iii) This Agreement, the related Terms Agreement and the
related Pooling and Servicing Agreement have been duly authorized,
executed and delivered by First Horizon Home Loan Corporation under
the law of the State of Kansas;
(iv) The issuance and sale of the Offered Certificates have
been duly authorized by First Horizon Home Loan Corporation;
(v) No consent, approval, authorization or order of any court
or governmental agency or body is required for the consummation by
First Horizon Home Loan Corporation of the transactions contemplated
herein or in the related Pooling and Servicing Agreement, except
such as may be required under the blue sky laws of any jurisdiction
and such other approvals as have been obtained;
(vi) Neither the issuance of the Certificates of the related
Series nor delivery of the related Offered Certificates, nor the
consummation of any other of the transactions contemplated in this
Agreement, the related Terms Agreement or the related Pooling and
Servicing Agreement, nor the fulfillment of the terms of the related
Certificates, the related Pooling and Servicing Agreement, this
Agreement or the related Terms Agreement will conflict with or
violate any term or provision of the articles of incorporation or
by-laws of First Horizon Home Loan Corporation or any statute, order
or regulation applicable to First Horizon Home Loan Corporation of
any court, regulatory body, administrative agency or governmental
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body having jurisdiction over First Horizon Home Loan Corporation
and will not conflict with, result in a breach or violation or the
acceleration of or constitute a default under the terms of any
indenture or other agreement or instrument known to such counsel to
which First Horizon Home Loan Corporation is a party or by which it
is bound, other than such conflicts, breaches and violations or
defaults which, individually or on a cumulative basis, would not
have a material adverse effect on First Horizon Home Loan
Corporation and its subsidiaries, taken as a whole, or on the
issuance and sale of the Certificates or the consummation of the
transactions contemplated hereby; and
(vii) There are no actions, proceedings or investigations
pending or, to the best knowledge of such counsel, threatened before
any court, administrative agency or other tribunal (i) asserting the
invalidity of this Agreement, the related Terms Agreement, the
related Pooling and Servicing Agreement or the related Certificates,
(ii) seeking to prevent the issuance of the Certificates of the
related Series or the consummation by First Horizon Home Loan
Corporation of any of the transactions contemplated by this
Agreement, such Terms Agreement or such Pooling and Servicing
Agreement, or (iii) which might materially and adversely affect the
performance by First Horizon Home Loan Corporation of its
obligations under, or the validity or enforceability of, this
Agreement, such Terms Agreement, such Pooling and Servicing
Agreement or the related Certificates.
In rendering his or her opinion such counsel may rely as to matters
of fact, to the extent deemed proper and as stated therein, on
certificates of responsible officers of First Horizon Home Loan
Corporation or public officials. In addition, such opinion may be
qualified as an opinion which is based solely upon a review of the general
corporations law of the State of Kansas without regard to the
interpretational case law thereof.
(e) You shall have received from XxXxx Xxxxxx LLP, counsel for the
Underwriters, such opinion or opinions, dated the related Closing Date,
with respect to the issuance and sale of the Certificates of the related
Series, the related Registration Statement, the related Prospectus and
such other related matters as the Underwriters may reasonably require, and
the Company shall have furnished to such counsel such documents as the
Underwriters may reasonably request for the purpose of enabling them to
pass upon such matters.
(f) The Company shall have furnished to you a certificate of the
Company, signed by the President or any Vice President or the principal
financial or accounting officer of the Company, dated the related Closing
Date, to the effect that the signers of such certificate have carefully
examined the related Registration Statement (excluding any Current Reports
and any other documents incorporated by reference therein), the related
Prospectus, any Detailed Description (excluding any related Current
Report), this Agreement and the related Terms Agreement and that:
12
(i) the representations and warranties of the Company in this
Agreement are true and correct in all material respects on and as of
the related Closing Date with the same effect as if made on such
Closing Date, and the Company has complied with all the agreements
and satisfied all the conditions on its part to be performed or
satisfied at or prior to such Closing Date;
(ii) no stop order suspending the effectiveness of such
Registration Statement has been issued and no proceedings for that
purpose have been instituted or, to their knowledge, threatened; and
(iii) nothing has come to their attention that would lead them
to believe that such Registration Statement (excluding any Current
Report) contains any untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary
to make the statements therein not misleading, or that the related
Prospectus (excluding any related Current Report) contains any
untrue statement of a material fact or omits 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, or that any Detailed Description
includes any untrue statement of a material fact or omits to state
any information which the Prospectus (or the related Prospectus
Supplement) states will be included in such Detailed Description.
(g) Counsel for the Trustee shall have furnished to you an opinion
addressed to the Underwriters, dated the related Closing Date, to the
effect that:
(i) the Trustee has been duly incorporated and is validly
existing as a New York banking corporation in good standing under
the laws of the State of New York with corporate power to own its
properties and conduct its business as presently conducted by it, to
conduct business as a trustee and to enter into and perform its
obligations under the related Pooling and Servicing Agreement;
(ii) the related Pooling and Servicing Agreement has been duly
authorized, executed and delivered by the Trustee and constitutes
the legal, valid and binding agreement of the Trustee enforceable
against the Trustee in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance, reorganization or
other similar laws affecting the enforcement of creditors' rights
generally and to judicial discretion, and general principles of
equity (regardless of whether enforcement is sought in a proceeding
in equity or at law);
(iii) the Trustee has duly accepted its appointment as trustee
under the related Pooling and Servicing Agreement;
13
(iv) no consent, approval, authorization or order of any New
York or federal court or government agency or body is required on
the part of the Trustee for the consummation of the transactions
contemplated in the related Pooling and Servicing Agreement, except
such as may be required under any federal or state securities law;
and
(v) the performance on the part of the Trustee of any of the
transactions contemplated in the related Pooling and Servicing
Agreement does not conflict with or result in a breach or violation
of any term or provision of, or constitute a default under, the
Articles of Organization, as amended, or By-Laws of the Trustee, or
any New York or federal statute or regulation applicable to the
Trustee, or to such counsel's knowledge, any indenture or other
agreement or instrument to which the Trustee is a party or by which
it is bound, or, to such counsel's knowledge, any order of any state
or federal court, regulatory body, administrative agency or
governmental body having jurisdiction over the Trustee.
In addition, such counsel shall furnish to you such opinions as to
the treatment of the Trust Fund for purposes of New York tax law as are
reasonably satisfactory to the Underwriter.
(h) Deloitte & Touche LLP shall have furnished to you a letter
addressed to the Underwriters, dated as of the date of the related Terms
Agreement, in form and substance satisfactory to you, stating in effect
that they have performed certain specified procedures as a result of which
they have determined that such information as you may reasonably request
of an accounting, financial or statistical nature (which is limited to
accounting, financial or statistical information derived from the general
accounting records of First Horizon Home Loan Corporation) set forth in
the related Prospectus Supplement under the caption "Servicing of Mortgage
Loans -- Foreclosure, Delinquency and Loss Experience" agrees with the
accounting records of First Horizon Home Loan Corporation, excluding any
questions of legal interpretation.
(i) Deloitte & Touche LLP shall have furnished to you a letter
addressed to the Underwriters, dated as of the related Closing Date, in
form and substance satisfactory to you, stating in effect that they have
performed certain specified procedures as a result of which they have
determined that such information as you may reasonably request of an
accounting, financial or statistical nature (which is limited to
accounting, financial or statistical information derived from the general
accounting records of the Company and which is obtained from an analysis
of a sample of the Mortgage Loans included in the related pool) set forth
in the related Prospectus Supplement under the caption "The Mortgage Pool"
and in any Detailed Description relating to such Prospectus Supplement is
mutually consistent and agrees with the accounting records of the Company
and, where applicable, the related Mortgage Loan files of the Company,
excluding any questions of legal interpretation. In addition, if
applicable, such accountants shall have furnished to you a letter
addressed to the Underwriters, dated as of the related Closing Date, which
14
shall include a statement or statements to the effect that based upon the
assumptions and methodology agreed to by the Company (and which is
consistent with the manner in which any final PAC Balances, TAC Balances,
Scheduled Balances, Maximum and Minimum Scheduled Balances or any other
scheduled balances are to be calculated as set forth in the related
Prospectus), all of which shall be described by reference in such letter,
such accountants shall have verified the mathematical accuracy of any
final PAC Balances Table, TAC Balances Table, Scheduled Balances Table,
Maximum or Minimum Scheduled Balances Table or other scheduled balances
table attached as an exhibit to the related Pooling and Servicing
Agreement.
(j) Deloitte & Touche LLP shall have furnished to you (addressed to
the Underwriters) and the Company a letter or letters, dated as of the
date of the related Terms Agreement, in form and substance satisfactory to
you and the Company, including, without limitation, statements, if
applicable, to the effect that:
(i) based upon the assumptions and methodology set forth in
the related Prospectus, all of which shall be described by reference
in such letter, they recomputed the percentages of initial principal
balance outstanding as of each of the Distribution Dates (as defined
in such Prospectus) indicated and the weighted average lives of each
Class of Offered Certificates at each of the indicated percentages
of the applicable Prepayment Assumption, and they compared the
recomputed percentages and weighted average lives to the
corresponding percentages and weighted average lives set forth in
the related tables and found them to be in agreement;
(ii) based upon the assumptions and methodology set forth in
such Prospectus, all of which shall be described by reference in
such letter, they have verified the mathematical accuracy of any
Scheduled Final Distribution Dates for the Offered Certificates, PAC
Balances, TAC Balances, Scheduled Balances, Maximum and Minimum
Scheduled Balances or any other scheduled balances set forth in such
Prospectus for each indicated Distribution Date, and have verified
the mathematical accuracy of any initial Effective Ranges of any PAC
Certificates, Scheduled Certificates or other scheduled Certificates
set forth in such Prospectus; and
(iii) based upon the assumptions and methodology set forth in
such Prospectus, all of which shall be described by reference in
such letter, they have verified the mathematical accuracy of the
pre-tax yields to maturity and, if applicable, aggregate cash flows
of any Class of Certificates for which such pre-tax yields and, if
applicable, aggregate cash flows are set forth in such Prospectus at
the indicated percentages of the Prepayment Assumption and, if
applicable, at the indicated values of COFI, LIBOR or any other
index, as applicable.
(k) The Offered Certificates of the related Series shall have
received the ratings specified in the related Terms Agreement (the
"Required Ratings").
15
(l) Prior to the related Closing Date, the Company shall have
furnished to the Underwriters such further information, certificates and
documents as the Underwriters may reasonably request.
(m) If any Certificates of the related Series are to be sold to any
other underwriter and/or offered in reliance upon an exemption from the
registration requirements of the Act, the sale at or prior to the related
Closing Date of such Certificates to the purchaser thereof shall have
occurred.
(n) Subsequent to the date of the related Terms Agreement, there
shall not have been any change, or any development involving a prospective
change, in or affecting the business or properties of the Company which
the Underwriters conclude in their respective reasonable judgment, after
consultation with the Company, materially impairs the investment quality
of the Offered Certificates of the related Series so as to make it
impractical or inadvisable to proceed with the public offering or the
delivery of such Offered Certificates as contemplated by the related
Prospectus.
If any of the conditions specified in this Section 6 shall not have been
fulfilled in all material respects with respect to the particular Offered
Certificates of a Series when and as provided in this Agreement and the related
Terms Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement and the related Terms Agreement shall not be in all
material respects reasonably satisfactory in form and substance to the
Underwriters and their counsel, this Agreement (with respect to the related
Offered Certificates) and the related Terms Agreement and all obligations of the
Underwriters hereunder (with respect to the related Offered Certificates) and
thereunder may be canceled at, or at any time prior to, the related Closing Date
by the Underwriters. Notice of such cancellation shall be given to the Company
in writing, or by telephone or telegraph confirmed in writing.
7. Indemnification and Contribution.
(a) The Company and First Horizon Home Loan Corporation jointly and
severally agree to indemnify and hold harmless each Underwriter and each
person who controls any Underwriter within the meaning of the Act or the
Exchange Act against any and all losses, claims, damages or liabilities,
joint or several, to which they or any of them 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) arise out of or are
based upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement relating to the Offered
Certificates of the applicable Series as it became effective or in any
amendment or supplement thereof, or in such Registration Statement or the
related Prospectus, or in any amendment thereof, or in any Detailed
Description referred to in such Prospectus (or the related prospectus
Supplement) 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 not misleading, and agree to
reimburse each such indemnified party for any legal or other expenses
16
reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that
(i) neither the Company nor First Horizon Home Loan Corporation will 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 (A)
in reliance upon and in conformity with written information furnished to
the Company or First Horizon Home Loan Corporation, as the case may be, as
herein stated by or on behalf of any Underwriter specifically for use in
connection with the preparation thereof or (B) in any Current Report or
any amendment or supplement thereof, except to the extent that any untrue
statement or alleged untrue statement therein or omission therefrom
results (or is alleged to have resulted) directly from an error (a
"Mortgage Pool Error") in the information concerning the characteristics
of the Mortgage Loans furnished by the Company or First Horizon Home Loan
Corporation, as the case may be, to any Underwriter in writing or by
electronic transmission that was used in the preparation of either (x) any
Computational Materials or ABS Term Sheets (or amendments or supplements
thereof) included in such Current Report (or amendment or supplement
thereof) or (y) any written or electronic materials furnished to
prospective investors on which the Computational Materials or ABS Term
Sheets (or amendments or supplements) were based and (ii) such indemnity
with respect to any Corrected Statement (as defined below) in such
Registration Statement or the related Prospectus (or any amendment or
supplement thereto) shall not inure to the benefit of any Underwriter (or
any person controlling such Underwriter) from whom the person asserting
any loss, claim, damage or liability purchased the Certificates of the
related Series that are the subject thereof if such person did not receive
a copy of an amendment or supplement to such Registration Statement or the
related Prospectus at or prior to the confirmation of the sale of such
Certificates and the untrue statement or omission of a material fact
contained in such Registration Statement or the related Prospectus (or any
amendment or supplement thereto) was corrected (a "Corrected Statement")
in such other amendment or supplement and such amendment or supplement was
furnished by the Company or First Horizon Home Loan Corporation, as the
case may be, to such Underwriter prior to the delivery of such
confirmation. This indemnity agreement will be in addition to any
liability that the Company and First Horizon Home Loan Corporation may
otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers, and each person
or entity (including each of its directors and officers) who controls the
Company within the meaning of the Act or the Exchange Act, to the same
extent as the foregoing indemnities from the Company and First Horizon
Home Loan Corporation to the Underwriter, but only with reference to (A)
written information furnished to the Company by or on behalf of such
Underwriter specifically for use in the preparation of the documents
referred to in the foregoing indemnity with respect to the related Series,
or (B) any Computational Materials or ABS Term Sheets (or amendments or
supplements thereof) furnished to the Company by such Underwriter pursuant
to Section 8 or Section 9 and incorporated by reference in such
Registration Statement or the related Prospectus or any amendment or
supplement thereof (except that no such indemnity shall be available for
any losses, claims, damages or liabilities, or actions in respect thereof,
resulting from any Mortgage Pool Error). This indemnity agreement will be
17
in addition to any liability which the Underwriters may otherwise have.
The Company acknowledges, unless otherwise specified in writing by an
Underwriter, that the statements set forth in the first sentence of the
last paragraph appearing on the cover page of the related Prospectus
Supplement as such statements relate to such Offered Certificates and the
second sentence of the first paragraph and the first sentence of the
second paragraph in each case under the heading "Underwriting" in such
Prospectus Supplement as such statements relate to such Offered
Certificates constitute the only information furnished in writing by or on
behalf of such Underwriter for inclusion in the related Prospectus (other
than any Computational Materials or ABS Term Sheets (or amendments or
supplements thereof) furnished to the Company by such Underwriter), and
such Underwriter confirms that such statements are correct.
(c) Promptly after receipt by an indemnified party under Section 7
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 7, 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 7, except to the
extent that the omission to so notify the indemnifying party causes or
exacerbates a loss. 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 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 7 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 indemnified party in the case of
subparagraph (a) or (b), representing the indemnified parties under
subparagraph (a) or (b), who are parties to such action), (ii) the
indemnifying party shall not have employed counsel 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).
18
(d) If the indemnification provided for in paragraph (a) or (b) of
this Section 7 is due in accordance with its terms but is for any reason
held by a court to be unavailable from the Company, First Horizon Home
Loan Corporation or any Underwriter, on grounds of policy or otherwise, or
if the indemnified party failed to give notice under paragraph (c) of this
Section 7 in respect of a claim otherwise subject to indemnification in
accordance with paragraph (a) or (b) of this Section 7, the Company, First
Horizon Home Loan Corporation and such Underwriter shall contribute to the
aggregate losses, claims, damages and liabilities (including legal and
other expenses reasonably incurred in connection with investigating or
defending same) to which the Company, First Horizon Home Loan Corporation
and such Underwriter 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 Computational Materials or ABS Term Sheets (or any amendments or
supplements thereof) or in any written or electronic materials
distributed to prospective investors on which the Computational
Materials are based, in such proportion so that such Underwriter is
responsible for that portion represented by the difference between
the proceeds to the Company in respect of the Offered Certificates
appearing on the cover page of the Prospectus Supplement for the
related Series and the total proceeds received by such Underwriter
from the sale of such Offered Certificates (the "Underwriting
Discount"), and the Company and First Horizon Home Loan Corporation
are jointly and severally responsible for the balance; provided,
however, that in no case shall such Underwriter be responsible under
this subparagraph (i) for any amount in excess of such Underwriting
Discount applicable to the Offered Certificates purchased by such
Underwriter pursuant to this Agreement and the related Terms
Agreement; 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 Computational Materials or ABS Term Sheets (or any amendments
or supplements thereof) or in any written or electronic materials
distributed to prospective investors on which the Computational
Materials are based, in such proportion as is appropriate to reflect
the relative fault of the Company or First Horizon Home Loan
Corporation, as the case may be, on the one hand and such
Underwriter on the other 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; provided, however, that in no
case shall such Underwriter be responsible under this subparagraph
(ii) for any amount in excess of the Underwriting Discount
applicable to the Offered Certificates purchased by such Underwriter
pursuant to this Agreement and the related Terms Agreement. The
19
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 Computational Materials or ABS Term Sheets (or any amendments
or supplements thereof or such written or electronic materials)
results from information prepared by the Company or First Horizon
Home Loan Corporation, as the case may be, on the one hand or such
Underwriter on the other 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 Section 7(d), 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 7, each person who controls an Underwriter within
the meaning of either the Act or the Exchange Act shall have the same
rights to contribution as such Underwriter, and each person who controls
the Company or First Horizon Home Loan Corporation, as the case may be,
within the meaning of either the Act or the Exchange Act, each officer of
the Company who shall have signed the Registration Statement and each
director of the Company or First Horizon Home Loan Corporation, as the
case may be, shall have the same rights to contribution as the Company or
First Horizon Home Loan Corporation, as the case may be, subject in each
case to the immediately preceding sentence of this paragraph (d).
8. Computational Materials and Structural Term Sheets.
(a) On the business day before the date on which the Current Report
relating to the Offered Certificates of a Series is required to be filed
by the Company with the Commission pursuant to Section 5(b) hereof, each
Underwriter shall deliver to the Company five complete copies of all
materials provided by such Underwriter to prospective investors in such
Offered Certificates that constitute (i) "Computational Materials" within
the meaning of the no-action letter dated May 20, 1994, issued by the
Division of Corporation Finance of the Commission to Xxxxxx, Xxxxxxx
Acceptance Corporation I, Xxxxxx, Peabody & Co. Incorporated, and Xxxxxx
Structured Asset Corporation and the no-action letter dated May 27, 1994,
issued by the Division of Corporation Finance of the Commission to the
Public Securities Association (together, the "Xxxxxx Letters"), the filing
of which material is a condition of the relief granted in such letter
(such materials being the "Computational Materials"), and (ii) "Structural
Term Sheets" within the meaning of the no-action letter dated February 17,
1995, issued by the Division of Corporation Finance of the Commission to
the Public Securities Association (the "PSA Letter"), the filing of which
material is a condition of the relief granted in such letter (such
materials being the "Structural Term Sheets"). Each delivery of
Computational Materials and Structural Term Sheets to the Company pursuant
to this paragraph (a) shall be effected by delivering four copies of such
materials to counsel for the Company on behalf of the Company at the
address specified in Section 3 hereof and one copy of such materials to
the Company.
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(b) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, it
shall be necessary to amend or supplement the related Prospectus as a
result of an untrue statement of a material fact contained in any
Computational Materials or Structural Term Sheets provided by any
Underwriter pursuant to this Section 8 or the omission to state therein a
material fact required, when considered in conjunction with the related
Prospectus and Prospectus Supplement, to be stated therein or necessary to
make the statements therein, when read in conjunction with the related
Prospectus and Prospectus Supplement, not misleading, or if it shall be
necessary to amend or supplement any Current Report relating to any
Computational Materials or Structural Term Sheets to comply with the Act
or the rules thereunder, such Underwriter shall prepare and furnish to the
Company for filing with the Commission an amendment or supplement which
will correct such statement or omission or an amendment or supplement
which will effect such compliance.
(c) Each Underwriter shall cause Deloitte & Touche LLP to furnish to
the Company a letter, dated as of the date on which you deliver any
Computational Materials or Structural Term Sheets to the Company pursuant
to Section 8(a), in form and substance satisfactory to the Company,
stating in effect that they have verified the mathematical accuracy of any
calculations performed by such Underwriter and set forth in such
Computational Materials or Structural Term Sheets, as applicable.
9. Collateral Term Sheets.
(a) On the business day immediately following the date on which any
Collateral Term Sheet (as defined in the PSA Letter) was first delivered
to a prospective investor in such Offered Certificates, each Underwriter
shall deliver to the Company five complete copies of all materials
provided by such Underwriter to prospective investors in the Offered
Certificates that constitute "Collateral Term Sheets." Each delivery of a
Collateral Term Sheet to the Company pursuant to this paragraph (a) shall
be effected by delivering four copies of such materials to counsel for the
Company on behalf of the Company at the address specified in Section 3
hereof and one copy of such materials to the Company. (Collateral Term
Sheets and Structural Term Sheets are, together, referred to herein as
"ABS Term Sheets.")
(b) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, it
shall be necessary to amend or supplement the related Prospectus as a
result of an untrue statement of a material fact contained in any
Collateral Term Sheets provided by an Underwriter pursuant to this Section
9 or the omission to state therein a material fact required, when
considered in conjunction with the related Prospectus and Prospectus
Supplement, to be stated therein or necessary to make the statements
therein, when read in conjunction with the related Prospectus and
Prospectus Supplement, not misleading, or if it shall be necessary to
amend or supplement any Current Report relating to any Collateral Term
Sheets to comply with the Act or the rules thereunder, such Underwriter
shall prepare and furnish to the Company for filing with the Commission an
amendment or supplement which will correct such statement or omission or
an amendment or supplement which will effect such compliance.
21
(c) Each Underwriter shall cause Deloitte & Touche LLP to furnish to
the Company a letter, dated as of the date on which you deliver any
Collateral Term Sheets to the Company pursuant to Section 9(a), in form
and substance satisfactory to the Company, stating in effect that they
have verified the mathematical accuracy of any calculations performed by
such Underwriter and set forth in such Collateral Term Sheets, as
applicable.
10. Termination. This Agreement (with respect to a particular Certificate
Offering) and the related Terms Agreement shall be subject to termination in
your absolute discretion, by notice given to the Company prior to delivery of
and payment for the related Offered Certificates, if prior to the related
Closing Date (i) trading in securities generally on the New York Stock Exchange
shall have been suspended or materially limited, (ii) a general moratorium on
commercial banking activities in New York shall have been declared by either
federal or New York State authorities, or (iii) there shall have occurred any
outbreak or escalation of hostilities or other calamity, event or crisis the
effect of which on the financial markets of the United States is such as to make
it, in your reasonable judgment, impracticable to market such Offered
Certificates.
11. Representations and Indemnities to Survive Delivery. The agreements,
representations, warranties, indemnities and other statements of the Company (or
First Horizon Home Loan Corporation, as the case may be) or its officers and of
each Underwriter set forth in or made pursuant to this Agreement and the related
Terms Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company (or First
Horizon Home Loan Corporation, as the case may be) or any of the officers,
directors or controlling persons referred to in Section 7 hereof, and will
survive delivery of and payment for the related Offered Certificates. The
provisions of Section 7 hereof shall survive the termination or cancellation of
this Agreement and the related Terms Agreement.
12. Successors. This Agreement and the related Terms Agreement will inure
to the benefit of and be binding upon the parties hereto and thereto and their
respective successors and the officers, directors and controlling persons
referred to in Section 7 hereof, and their successors and assigns, and no other
person will have any right or obligation hereunder or thereunder. No purchaser
of any Offered Certificate from any Underwriter shall be deemed a successor or
assign by reason of such purchase.
13. APPLICABLE LAW. THIS AGREEMENT AND THE RELATED TERMS AGREEMENT WILL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.
14. Miscellaneous. This Agreement, as supplemented by the related Terms
Agreement, supersedes all prior and contemporaneous agreements and
understandings relating to the subject matter hereof. This Agreement and the
related Terms Agreement or any term of each may not be changed, waived,
discharged or terminated except by an affirmative written agreement made by the
party against whom enforcement of the change, waiver, discharge or termination
is sought. The headings in this Agreement and the related Terms Agreement are
for purposes of reference only and shall not limit or otherwise affect the
meaning hereof or thereof.
22
15. Notices. All communications hereunder will be in writing and effective
only on receipt, and, if sent to you, will be delivered to the address first
above written; or if sent to the Company, will be delivered to First Horizon
Asset Securities Inc., 0000 Xxxxxxx Xxx, Xxxxxx, Xxxxx 00000, Attention: Xxxx
Xxxxxx, with a copy to First Tennessee National Corporation, 000 Xxxxxxx Xxxxxx,
Xxxxxxx, Xxxxxxxxx 00000, Attention: Xxxxx X. Xxxxxxxx, Xx., Esq.
16. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail on the Closing Date to purchase the Offered Certificates
which it or they are obligated to purchase hereunder and under the applicable
Terms Agreement (the "Defaulted Certificates"), you shall have the right, within
24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all,
of the Defaulted Certificates in such amounts as may be agreed upon and upon the
terms herein set forth and under the applicable Terms Agreement. If, however,
you have not completed such arrangements within such 24-hour period, then:
(a) if the aggregate original principal amount of Defaulted
Certificates does not exceed 10% of the aggregate original principal
amount of the Certificates to be purchased pursuant to such Terms
Agreement, the non-defaulting Underwriters named in such Terms Agreement
shall be obligated to purchase the full amount thereof in the proportions
that their respective underwriting obligations thereunder bear to the
underwriting obligations of all non-defaulting Underwriters; and
(b) if the aggregate original principal amount of Defaulted
Certificates exceeds 10% of the original principal amount of the Offered
Certificates to be purchased pursuant to such Terms Agreement, the
applicable Terms Agreement shall terminate without any liability on the
part of any non-defaulting Underwriter.
No action taken pursuant to this Section 16 and nothing in this Agreement
shall relieve any defaulting Underwriter from liability in respect of its
default.
In the event of any such default which does not result in a termination of
this Agreement or such applicable Terms Agreement, either you or the Company
shall have the right to postpone the Closing Date for a period of time not
exceeding seven days in order to effect any required changes in the Registration
Statement or in any other documents or arrangements.
* * *
23
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
between the Company and you.
Very truly yours,
FIRST HORIZON ASSET SECURITIES INC.
By:
---------------------------------------
Name: Xxxxxx Xxxxx
Title: Vice President
The foregoing Agreement is hereby confirmed and accepted as of the date first
above written.
CITIGROUP GLOBAL MARKETS INC.
By:
--------------------------------------------------
Name:
Title:
FIRST HORIZON HOME LOAN CORPORATION
By:
--------------------------------------------------
Name: Xxxxx XxXxx
Title: Executive Vice President
EXHIBIT A
FIRST HORIZON ASSET SECURITIES INC.
MORTGAGE PASS-THROUGH CERTIFICATES
SERIES ____-__
TERMS AGREEMENT
---------------
(to Underwriting Agreement,
dated [ ], 2005
between the Company and the Underwriter)
First Horizon Asset Securities Inc. [ ]
4000 Horizon Way [Date]
Xxxxxx, Xxxxx 00000
Each of [ ] (the "Underwriters") severally agrees, subject to
the terms and provisions herein and of the captioned Underwriting Agreement (the
"Underwriting Agreement"), to purchase such Classes of Series ____-__
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
____-__ Certificates are registered with the Securities and Exchange Commission
by means of an effective Registration Statement (No. 333-___). Capitalized terms
used and not defined herein have the meanings given them in the Underwriting
Agreement.
Section 1. The Mortgage Pool: The Series ____-__ Certificates shall
evidence the entire beneficial ownership interest in a mortgage pool (the
"Mortgage Pool") of conventional, fixed rate, fully amortizing one- to
four-family residential mortgage loans (the "Mortgage Loans") having the
following characteristics as of ________ __, ____ (the "Cut-off Date"):
(a) Aggregate Principal Amount of the Mortgage Pool: $[ ] aggregate
principal balance as of the Cut-off Date, subject to [an upward or
downward variance of up to [ ]%, the precise aggregate principal balance
to be determined by the Company][a permitted variance such that the
aggregate Scheduled Principal Balance thereof will be not less than $[ ]
or greater than $[ ].
(b) Original Terms to Maturity: The original term to maturity of
each Mortgage Loan included in the Mortgage Pool shall be between ___ and
___ years.
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, interest rates and 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 [
]%]:
A-1
Principal Interest Class Purchase
Class Balance Rate Price Percentage
----- ------- ---- ----------------
(b) The Offered Certificates shall have such other characteristics
as described in the related Prospectus.
Each of the Underwriters agrees, severally and not jointly, subject to the
terms and conditions contained herein and in the Underwriting Agreement, to
purchase the principal balances of the Classes of Certificates specified
opposite its name below:
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Series [ ]
Designation [Underwriter] [Underwriter]
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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 Certificates Principal
Balance thereof plus accrued interest at the rate of [ ]% per annum from and
including the Cut-off Date up to, but not including, _________ __, ____ (the
"Closing Date").
Section 4. Required Ratings: The Offered Certificates shall have received
Required Ratings of at least [ ] from [ ].
Section 5. Tax Treatment: [One or more elections will be made to treat the
assets of the Trust Fund as a REMIC.] [The Trust Fund will be treated as a
"grantor trust" for federal income tax purposes.]
A-2
[Section 6. Additional Expenses:]*
----------
(*)
* to be inserted if applicable
A-3
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
between the Underwriters and the Company.
Very truly yours,
CO-MANAGER:
[UNDERWRITER]
By:
------------------------------------------
Name:
Title:
CO-MANAGER:
[UNDERWRITER]
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:
Title:
FIRST HORIZON HOME LOAN CORPORATION
By:
--------------------------------------------------
Name:
Title:
A-4
