EXECUTION
GE CAPITAL MORTGAGE SERVICES, INC.
REMIC MULTI-CLASS PASS-THROUGH CERTIFICATES
SERIES 1997-4
TERMS AGREEMENT
(to Underwriting Agreement
dated April 24, 1995,
between the Company and the Underwriter)
GE Capital Mortgage Services, Inc. New York, New York
Three Executive Campus April 21, 0000
Xxxxxx Xxxx, XX 00000
PaineWebber Incorporated (the "Underwriter") agrees,
subject to the terms and provisions herein and of the captioned
Underwriting Agreement (the "Underwriting Agreement"), to
purchase the Classes of Series 1997-4 Certificates specified in
Section 2(a) hereof (the "Offered Certificates"). This Terms
Agreement supplements and modifies the Underwriting Agreement
solely as it relates to the purchase and sale of the Offered
Certificates described below. The Series 1997-4 Certificates are
registered with the Securities and Exchange Commission by means
of an effective Registration Statement (No. 333-3038).
Capitalized terms used and not defined herein have the meanings
given them in the Underwriting Agreement.
Section 1. The Mortgage Pool: The Series 1997-4
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 April 1, 1997 (the "Cut-off
Date"):
(a) Aggregate Principal Amount of the Mortgage Pool:
$350,700,978 aggregate principal balance as of the Cut-off
Date, subject to a permitted variance such that the
aggregate original Certificate Principal Balance will be
not less than $332,500,000 or greater than $367,500,000.
(b) Original Terms to Maturity: The original term to
maturity of substantially all of the Mortgage Loans included
in the Mortgage Pool shall be between 20 and 30 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):
Class
Purchase
Principal Interest Price
Class Balance Rate Percentage
----- ------- ---- ----------
Class A1 $21,540,000.00 7.50% 99.214800%
Class A2 35,773,000.00 7.50% 99.214800%
Class A3 22,546,000.00 7.50% 99.214800%
Class A4 29,577,000.00 7.50% 99.214800%
Class A5 45,556,000.00 7.50% 99.214800%
Class A6 7,054,000.00 7.50% 99.214800%
Class A7 10,000,000.00 7.50% 99.214800%
Class A8 55,867,000.00 7.50% 99.214800%
Class A9 19,614,000.00 7.50% 99.214800%
Class A10 34,511,000.00 7.50% 99.214800%
Class A11 20,612,000.00 7.50% 99.214800%
Class A12 32,552,000.00 7.50% 99.214800%
Class R 100.00 7.50% 99.214800%
Class PO 593,751.00 0.00% 57.125000%
Class M 4,384,000.00 7.50% 98.569040%
Class B1 3,507,000.00 7.50% 97.882130%
Class B2 3,507,000.00 7.50% 97.202370%
(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 initial interest rate per annum from and
including the Cut-off Date up to, but not including, April 29,
1997 (the "Closing Date").
Section 4. Required Ratings: The Offered
Certificates, other than the Class M, Class B1 and Class B2
Certificates, shall have received Required Ratings of at least
"AAA" and "Aaa" from Fitch Investors Service, L.P. ("Fitch") and
Xxxxx'x Investors Service, Inc. ("Moody's"), respectively. The
Class M and Class B1 Certificates shall have received Required
Ratings of at least "Aa2" and "A2," respectively, from Moody's,
and "AA" and "A," respectively, from Fitch. The Class B2
2
Certificates shall have received Required Ratings of at least
"BBB" from Fitch.
Section 5. Tax Treatment: One or more elections will
be made to treat the assets of the Trust Fund as a REMIC.
Section 6. Additional Expenses. The Underwriter will
pay all expenses (e.g., shipping, postage and courier costs)
associated with the delivery of the Prospectus to prospective
investors and investors, other than the costs of delivery to the
Underwriter's facilities, provided, that if courier services
(other than overnight delivery services utilized in the ordinary
course of business) are required to ensure that the Prospectus is
delivered to investors on the day immediately preceding the
Closing Date, the Company will pay such courier expenses.
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
Underwriter and the Company.
Very truly yours,
PAINEWEBBER INCORPORATED
By:____________________________
Name:
Title:
The foregoing Agreement is hereby confirmed and accepted as of
the date hereof.
GE CAPITAL MORTGAGE SERVICES, INC.
By:____________________________
Name:
Title:
