ACCREDITED HOME LENDERS, INC.,
SPONSOR AND MASTER SERVICER
Mortgage Loan Asset-Backed Certificates,
Series 1996-1
Classes A-1 and A-2
TERMS AGREEMENT
Dated: September 23, 1996
To: Accredited Home Lenders, Inc., (the "Company") under
the Pooling and Servicing Agreement, dated as of
September 1, 1996 (the "Pooling and Servicing
Agreement")
Re: Underwriting Agreement dated September 23, 1996
Series Designation: Mortgage Loan Asset-Backed Certificates,
Series 1996-1, Class A-1 and Class A-2
Underwriter: Xxxxxx Brothers Inc. ("Xxxxxx Brothers")
Terms of the Certificates:
Original
Principal Remittance
Class Amount* Rate
----- --------- ----------
A-1 $ 14,073,000 7.60%
A-2 $ 78,048,000 Variable
* Approximate. Subject to permitted variance of plus or
minus 5%.
Certificate Ratings:
Class A-1 and Class A-2 shall be rated AAA by Standard & Poor's Ratings
Services and Aaa by Xxxxx'x Investors
Service, Inc.
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REMIC Election:
The Company intends to elect to cause the Trust to be treated as a REMIC.
Master Servicer:
Accredited Home Lenders, Inc. (in such capacity, the
"Master Servicer")
Trust:
The Trust shall include mortgage loans ("Mortgage Loans") conveyed by the
Company listed in an exhibit to the assignment by the Company to the Trustee of
such loans.
Credit Enhancement:
Accredited Home Lenders, Inc. shall obtain from
Financial Security Assurance Inc. (the "Certificate
Insurer") a noncancelable certificate guaranty insurance
policy relating to the Class A-1 Certificates and the Class
A-2 Certificates in favor of the Trustee.
Payment Dates:
Each month the Distribution Date shall be the 25th day of the month or if
such 25th day is not a business day the next succeeding business day thereafter
commencing October 25, 1996. The Final Scheduled Distribution Date is expected
to be October 25, 2027.
Purchase Price: $92,121,000.00
Payment of the purchase price shall be in immediately available Federal
funds wired to such bank as may be designated by the Company.
Underwriting Commission:
Notwithstanding anything to the contrary in the Underwriting Agreement, no
additional underwriting commission shall be payable by the Company to the
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Underwriter in connection with the purchase of the Certificates.
Public Offering price and/or method of determining price at which the
Underwriter will sell the Certificates:
================================================================================
Price to Public Underwriting Proceeds to
Discount Sponsor (2)
--------------------------------------------------------------------------------
Per Class A-1 Certificate..... 100.00%(1) 0.35% 99.65%
--------------------------------------------------------------------------------
Per Class A-1 Certificate..... 100.00% 0.35% 99.65%
--------------------------------------------------------------------------------
Total.........................$92,1221,000.00 $322,423.50 $91,798,576.50
================================================================================
(1) Plus accrued interest from September 1, 1996 at the Class A-1 Pass-Through
Rate.
(2) Before deducting expenses, estimated to be $750,000.
Closing Date and Location:
On or about September 27, 1996, at the offices of Xxxxx Xxxxxxxxxx, New
York, New York.
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If the foregoing is in accordance with your understanding of our agreement,
please sign and return to us a counterpart hereof, whereupon this instrument
along with all counterparts will become a binding agreement between you and the
Company in accordance with its terms.
XXXXXX BROTHERS INC.
By: /s/ Xxxxxxxx X. Xxxxxxx
-----------------------------------
Name: Xxxxxxxx X. Xxxxxxx
Title: Managing Director
ACCEPTED:
ACCREDITED HOME LENDERS, INC.
By: /s/ Xxx X. XxXxxxx
------------------------------------
Name: Xxx X. XxXxxxx
Title: Executive Vice President
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