EXECUTION
FIRST HORIZON ASSET SECURITIES INC.
MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2005-AA8
TERMS AGREEMENT
(to Underwriting Agreement,
dated August 23, 2005
between the Company and the Underwriter)
First Horizon Asset Securities Inc. New York, New York
4000 Horizon Way August 25, 0000
Xxxxxx, Xxxxx 00000
Credit Suisse First Boston 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 Series 2005-AA8
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
2005-AA8 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 2005-AA8 Certificates shall
evidence the entire beneficial ownership interest in three pools (the "Mortgage
Pools") of adjustable rate, first lien, fully amortizing, one- to four-family
residential mortgage loans (the "Mortgage Loans") having the following
characteristics as of August 1, 2005 (the "Cut-off Date"):
(a) Aggregate Principal Amount of the Mortgage Pools: Approximately
$539,027,545 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 Terms to Maturity: The original term to maturity of
each Mortgage Loan 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, 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 5%:
Class Purchase
Class Principal Balance Interest Rate Price Percentage
----- ------------------ ------------- ----------------
Class I-A-1 $21,430,000.00 5.3576%(1) 100.750000000%
Class I-A-2 $1,257,000.00 5.3576%(1) 100.750000000%
Class I-A-R $100.00 5.3576%(1) 100.750000000%
Class II-A-1 $358,821,000.00 5.4317%(1) 100.976562500%
Class III-A-1 $120,520,000.00 5.8078%(1) 100.976562500%
Class III-A-2 $7,083,000.00 5.8078%(1) 100.976562500%
Class B-1 $11,319,000.00 5.5227%(1) 100.110250000%
Class B-2 $6,199,000.00 5.5227%(1) 98.985250000%
Class B-3 $4,852,000.00 5.5227%(1) 96.094620000%
(1) The interest rates for these classes of Certificates are variable and will
be calculated as described in the Prospectus Supplement.
(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 Certificate Principal
Balance thereof plus accrued interest at the per annum initial interest rate
applicable thereto from and including the Cut-off Date up to, but not including,
August 30, 2005 (the "Closing Date").
Section 4. Required Ratings: The Offered Certificates shall have received
Required Ratings of (i) at least "AAA" from Fitch Ratings ("Fitch") and "Aaa"
from Xxxxx'x Investors Service, Inc. ("Moody's), in the case of the Class I-A-1,
Class I-A-R, Class II-A-1 and Class III-A-1 Certificates; (ii) at least "AAA"
from Fitch and "Aa1" from Moody's, in the case of the Class I-A-2 and Class
III-A-2 Certificates, (iii) at least "AA" from Fitch, in the case of Class B-1
Certificates; (iv) at least "A" from Fitch, in the case of the Class B-2
Certificates; and (v) at least "BBB" from Fitch, in the case of the Class B-3
Certificates.
Section 5. Tax Treatment: One or more elections will be made to treat the
assets of the Trust Fund as a REMIC.
2
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 Underwriter and the Company.
Very truly yours,
CREDIT SUISSE FIRST BOSTON 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:
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Name: Xxxxxx Xxxxx
Title: Vice President
FIRST HORIZON HOME LOAN CORPORATION
By:
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Name: Xxxxx XxXxx
Title: Executive Vice President
