NOMURA HOME EQUITY LOAN, INC.
Asset Backed Securities
UNDERWRITING AGREEMENT
----------------------
Dated _____________
NOMURA SECURITIES INTERNATIONAL, INC.
Acting on behalf of itself and, if
applicable, as the Representative of the
several Underwriters named in Schedule I to
the Terms Agreement (in either such capacity
sometimes herein the "Representative"
2 World Financial Xxxxxx, Xxxxxxxx X
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
1. INTRODUCTORY. Nomura Home Equity Loan, Inc., a Delaware corporation
(the "DEPOSITOR"), proposes, subject to the terms and conditions stated herein,
to sell its Asset Backed Notes (the "NOTES") and Asset Backed Pass-Through
Certificates (the "CERTIFICATES"), and together with the Notes, the
"SECURITIES") from time to time in one or more series (each, a "SERIES"). Each
Series, which may include one or more classes of Notes and/or one or more
classes of Certificates, will be issued by a trust formed with respect to such
Series (each, a "TRUST"). Each Series of Certificates will represent a
fractional undivided interest in the related Trust. Each Series of Notes will
represent indebtedness of the related Trust. The assets of the Trust (the "TRUST
PROPERTY") may include, among other things, one or more pools of various types
of single family and/or multi-family mortgage loans (the "MORTGAGE LOANS"),
unsecured home improvement installment sales contracts and installment loans,
manufactured housing installment sale contracts or installment loan agreements,
beneficial interest therein, pass-through or participation certificates issued
or guaranteed by the Government National Mortgage Association or Xxxxxx Xxx or
the Federal Home Loan Mortgage Corporation, letters of credit, insurance
policies, guarantees, reserve funds or other types of credit support, currency
or interest rate exchange agreements and other financial assets, and/or monies
on deposit in one or more trust accounts.
The Securities are more fully described in the Registration Statement
(as defined herein). Each Series of Securities and any classes of Securities
(each, a "CLASS") within such Series may vary as to, among other things, number
and types of Classes, principal or notional amount, interest rate, the
percentage interest, if any, evidenced by each Class in the payments of
principal of and interest on, or with respect to, the Trust Property, priority
of payment among Classes, credit enhancement with respect to the related Trust
Property or Securities, the Classes of such Series subject to this Underwriting
Agreement, and any other terms contemplated by the Terms Agreement (as defined
herein) with respect to the Securities of such Series.
Each offering of the Securities to which this Underwriting Agreement
applies will be made pursuant to the Registration Statement through the
Representative or through an underwriting syndicate managed by the
Representative. Whenever the Depositor determines to form a Trust and to make
such an offering of Securities of a Series, it will enter into an appropriate
agreement (the "TERMS AGREEMENT"), a form of which is attached hereto as Exhibit
A, providing for the sale of certain classes of such Securities to, and the
purchase and offering thereof by, the Representative and such other
underwriters, if any, as have authorized the Representative to enter into such
Terms Agreement on their behalf (the "UNDERWRITERS," which term shall include
the Representative, whether acting alone in the sale of such Securities, in
which case any reference herein to the Representative shall be deemed to refer
to the Representative in its individual capacity as Underwriter of the
Securities, or as a member of an underwriting syndicate). Such Terms Agreement
shall specify the undivided interest, principal or notional amount of each Class
of the Securities to be issued, the Classes of Securities subject to this
Underwriting Agreement, the price at which such Classes of Securities are to be
purchased by the Underwriters from the Depositor and the initial public offering
price or prices or the method by which the price or prices at which such
Securities are to be sold will be determined.
Each such offering of Securities as to which Nomura Securities
International, Inc. is the sole underwriter or acts as the Representative of the
several Underwriters will be governed by this Underwriting Agreement, as
supplemented by the applicable Terms Agreement, and this Underwriting Agreement
and such Terms Agreement shall inure to the benefit of and be binding upon each
Underwriter participating in the offering of such Securities.
2. REPRESENTATIONS AND WARRANTIES. The Depositor 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 the Securities, 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 (as such date is defined in Rule 158(c) under the Act,
the "EFFECTIVE DATE"), is hereinafter called the "REGISTRATION STATEMENT," and
such prospectus, as such prospectus is supplemented by a prospectus supplement
relating to the Securities 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 (such prospectus supplement,
including such incorporated documents, 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" (except where
the context requires otherwise). 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 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.
(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 (the "RULES AND REGULATIONS"); on
the date of the related Terms Agreement and on the related Closing Date (as
defined herein), the Registration Statement, the Prospectus and the related
Prospectus Supplement, and any amendments thereof and supplements thereto, will
conform in all material respects to the requirements of the Act and the Rules
and Regulations; 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 and Prospectus Supplement, on the date
of any filing pursuant to Rule 424(b) and on the related 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; provided, however, that the Depositor
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 Depositor by or on behalf of the Underwriters specifically for
use in the preparation thereof as specified in the related Terms Agreement or
(B) any ABS Filing (as defined herein), 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 Depositor is a corporation duly incorporated, validly
existing and in good standing under the laws of the state of its incorporation,
and is duly qualified to transact business and is in good standing in each
jurisdiction in the United States of America in which the conduct of its
business or the ownership of its property requires such qualification, with
corporate power to own, lease and operate its property and conduct its business
as it is currently conducted.
(d) The Depositor has, and will have, the requisite power to
execute and deliver this Underwriting Agreement, each pooling and servicing
agreement, to be entered into among the Depositor, the servicer specified
therein (the "SERVICER"), and the trustee specified therein (the "P&S TRUSTEE");
each trust agreement, to be entered into between the Depositor and the trustee
specified therein (the "OWNER TRUSTEE"); each indenture, to be entered into
among the Trust and the trustee specified therein (the "INDENTURE TRUSTEE" and
together with the P&S Trustee and the Owner Trustee, the "TRUSTEE"); each
transfer and servicing agreement, transfer agreement or other document executed
by the Depositor in connection with the issuance and sale of the related
Securities (each of the above-referenced agreements, an "AGREEMENT"), and Terms
Agreement and to perform its obligations hereunder and thereunder.
(e) The Depositor is not aware of (i) any request by the
Commission for any further amendment of the Registration Statement or the
Prospectus or for any additional information, (ii) the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or the institution or threatening of any proceeding for that purpose,
or (iii) any notification with respect to the suspension of the qualification of
the Securities for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose.
(f) Each of the Agreements, Terms Agreements and this Underwriting
Agreement has been, or will be, duly and validly authorized, executed and
delivered by the Depositor, and each of the Agreements (as applicable), Terms
Agreements and this Underwriting Agreement constitutes, or will constitute, the
valid, legal and binding obligation of the Depositor, enforceable against the
Depositor in accordance with its terms.
(g) The Securities of each Series conform, or will conform as of
the related Closing Date, to the description thereof contained in the
Registration Statement, the Prospectus, and the related Prospectus Supplement;
and the Securities of such Series, on the related Closing Date, will have been
duly and validly authorized and, when such Securities are duly and validly
executed, issued and delivered in accordance with the related 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 such
Agreement.
(h) As of the related Closing Date, the representations and
warranties of the Depositor set forth in the related Agreement will be true and
correct.
(i) Neither the execution and delivery by the Depositor of any
Agreement (as applicable), Terms Agreement or this Underwriting Agreement nor
the consummation by the Depositor of the transactions contemplated herein or
therein, nor the issuance of the Securities of a Series or the public offering
thereof as contemplated in the Prospectus and the applicable Prospectus
Supplement, will conflict in any material respect with or result in a material
breach of, or constitute a material default (with notice or passage of time or
both) under, or result in the imposition of any lien, pledge, charge,
encumbrance, adverse claim or other security interest of any other person
(collectively, "LIENS") upon any of the property or assets of the Depositor
(except as required or permitted pursuant thereto or hereto), pursuant to any
material mortgage, indenture, loan agreement, contract or other instrument to
which the Depositor is party or by which it is bound, nor will such action
result in any violation of any provisions of any applicable law, administrative
regulation or administrative or court decree, the certificate of incorporation
or by-laws of the Depositor. The Depositor is not in violation of its
certificate of incorporation, in default in any material respect in the
performance or observance of any material obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, loan agreement, note,
lease, trust agreement, transfer and servicing agreement or other instrument to
which it is a party or by which it may be bound, or to which any material
portion of its property or assets is subject.
(j) No legal or governmental proceedings are pending to which the
Depositor is a party or of which any property of the Depositor is the subject,
which if determined adversely to the Depositor would, individually or in the
aggregate, have a material adverse effect on the financial position,
shareholders' equity or results of operations of the Depositor; and to the best
of the Depositor's knowledge, no such proceedings are threatened or contemplated
by governmental authorities or threatened by others.
(k) Since the date as of which information is given in the
Registration Statement, there has not been any material adverse change in the
business or net worth of the Depositor.
(l) Any taxes, fees and other governmental charges in connection
with the execution and delivery of this Underwriting Agreement, the related
Terms Agreement or the related Agreement and the execution, delivery and sale of
the Securities have been or will be paid at or prior to the related Closing
Date.
(m) No consent, approval, authorization or order of, or
registration, filing or declaration with, any court or governmental agency or
body is required, or will be required, in connection with (i) the execution and
delivery by the Depositor of any Agreement (as applicable), Terms Agreement or
this Underwriting Agreement or the performance by the Depositor of any Agreement
(as applicable), Terms Agreement or this Underwriting Agreement or (ii) the
offer, sale or delivery of the Securities of any Series, except such as shall
have been obtained or made, as the case may be, or will be obtained or made, as
the case may be, prior to the applicable Closing Date, or will not materially
adversely affect the ability of the Depositor to perform its obligations under
any Agreement (as applicable), Terms Agreement or this Underwriting Agreement.
(n) The Depositor possesses, and will possess, all material
licenses, certificates, authorities or permits issued by the appropriate state,
federal or foreign regulatory agencies or bodies necessary to conduct the
business now conducted by it and as described in the Prospectus and Prospectus
Supplement, except to the extent that the failure to have such licenses,
certificates, authorities or permits does not have a material adverse effect on
the Securities of any Series or the financial condition of the Depositor, and
the Depositor has not received, nor will have received as of each Closing Date,
any notice of proceedings relating to the revocation or modification of any such
license, certificate, authority or permit which, singly or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, would materially and
adversely affect the conduct of its business, operations or financial condition.
(o) On the related Closing Date, (i) the Depositor will have good
and marketable title to the related Mortgage Loans being transferred by it to
the Trust pursuant thereto, free and clear of any Lien, except to the extent
permitted in the applicable Agreement, (ii) the Depositor will not have assigned
to any person any of its right, title or interest in such Mortgage Loans or in
the applicable Agreement, and (iii) the Depositor will have the power and
authority to sell such Mortgage Loans to the Trust, and upon execution and
delivery of the applicable Agreement by the Trustee and Servicer (as
applicable), the Trust will have good and marketable title thereto, in each case
free of Liens other than any Lien created by an Underwriter.
(p) The properties and businesses of the Depositor conform, and
will conform, in all material respects, to the descriptions thereof contained in
the Prospectus and the Prospectus Supplements.
3. PURCHASE, SALE AND DELIVERY OF SECURITIES.
(a) On the basis of the representations, warranties and agreements
contained in this Underwriting Agreement and in the Terms Agreement for a
particular offering of Securities, but subject to the terms and conditions set
forth in this Underwriting Agreement and subject to the execution of such Terms
Agreement, the Depositor agrees to sell to each Underwriter, severally and not
jointly, and each Underwriter, severally and not jointly, agrees to purchase
from the Depositor, the respective original principal amounts of the related
Securities set forth in the related Terms Agreement opposite the name of such
Underwriter, plus any additional original principal amount of Securities which
such Underwriter may be obligated to purchase pursuant to Section 12 hereof, at
the purchase price thereof set forth in such Terms Agreement.
(b) The parties hereto agree that settlement for all securities
sold pursuant to this Underwriting Agreement shall take place on the terms set
forth herein and not as set forth in Rule 15c6-1 under the Exchange Act.
(c) Against payment of the purchase price specified in the
applicable Terms Agreement in same day funds drawn to the order of the Depositor
(or paid by such other manner as may be agreed upon by the Depositor and the
Representative), the Depositor will deliver the related Securities of a Series
to the Underwriters at the address set forth in the related Terms Agreement, at
such time as shall be specified in such Terms Agreement, or at such other place
and time as the Representative and the Depositor shall agree upon, each such
time being herein referred to as a "CLOSING DATE." The Securities of each Series
will initially be in definitive, fully registered form or will be maintained
through the facilities of The Depository Trust Company, as indicated in the
applicable Prospectus Supplement.
(d) With respect to the purchase of Securities of a Series by the
Underwriters, the Depositor hereby agrees to pay each Underwriter the
compensation, if any, specified in the related Terms Agreement.
4. PUBLIC OFFERING OF SECURITIES. It is understood by the parties hereto
that, after the Registration Statement becomes effective, the Underwriters
propose to offer the Securities for sale to the public (which may include
selected dealers), as set forth in the Prospectus.
5. COVENANTS OF THE DEPOSITOR. The Depositor covenants and agrees with
each Underwriter:
(a) That immediately following the execution of each Terms
Agreement, the Depositor shall prepare a Prospectus Supplement setting forth the
amount of Securities covered thereby and the terms thereof not otherwise
specified in the Prospectus, the price at which such Securities are to be
purchased by the Underwriters from the Depositor, either the initial public
offering price or the method by which the price at which such Securities are to
be sold will be determined, the selling concessions and reallowances, if any,
and such other information as the Representative and the Depositor deem
appropriate in connection with the offering of such Securities; provided,
however, that the Depositor shall make no amendment or supplement to the
Registration Statement affecting or relating to any material extent to the
Securities of a Series to which this Underwriting Agreement relates, and shall
make no amendment or supplement to the Prospectus or the Prospectus Supplement
without furnishing the Representative with a copy of the proposed form thereof
and providing the Representative with a reasonable opportunity to review the
same, and shall not file any such amendment or supplement to which the
Representative shall reasonably object; and, provided further, that the
Depositor shall advise the Representative, promptly after it receives notice
thereof, of the time when any amendment to the Registration Statement has been
filed or becomes effective or any supplement to the Prospectus or the Prospectus
Supplement or any amended Prospectus or Prospectus Supplement has been filed or
mailed for filing, of the issuance of any stop order by the Commission, of the
suspension of the qualification of the Securities of a Series for offering or
sale in any jurisdiction, of the initiation or threatening of any proceeding for
any such purpose, or of any request by the Commission for the amending or
supplementing of the Registration Statement, the Prospectus or the Prospectus
Supplement or for additional information; and, in the event of the issuance of
any such stop order or of any order preventing or suspending the use of any
Prospectus or Prospectus Supplement relating to the Securities of a Series or
suspending any such qualification, promptly shall use its best efforts to obtain
its withdrawal.
(b) That the Depositor shall cause any Computational Materials and
any Structural Term Sheets (each as defined herein) with respect to the
Securities of a Series that are delivered by an Underwriter to the Depositor
pursuant to Section 10 to be filed with the Commission on a Current Report on
Form 8-K (an "ABS Filing") 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 Depositor by an Underwriter prior to 1:00 p.m. New York time and (ii) the
date on which the related Prospectus Supplement is first made available to the
public. The Depositor shall cause any Collateral Term Sheet with respect to the
Securities of a Series that is delivered by the Representative to the Depositor
in accordance with the provisions of Section 11 to be filed with the Commission
on an ABS Filing 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 Depositor by the Representative. Each such ABS
Filing shall be incorporated by reference in the related Prospectus and the
related Registration Statement.
(c) To furnish to each Underwriter copies of the Registration
Statement (one of which will be signed and will include all exhibits), each
related preliminary prospectus, the Prospectus, Prospectus Supplement, and all
amendments and supplements to such documents, in each case as soon as available
and in such quantities as such Underwriter may from time to time reasonably
request; and, if the delivery of a Prospectus or Prospectus Supplement shall be
at the time required by law in connection with sales of the Securities of a
Series and either (i) any event shall have occurred as a result of which the
Prospectus or Prospectus Supplement would include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading or (ii) for any other reason it shall be necessary during
such same period to amend or supplement the Prospectus or Prospectus Supplement,
to notify the Representative and to prepare and furnish to the Representative as
the Representative may from time to time reasonably request an amendment or a
supplement to the Prospectus or Prospectus Supplement which will correct such
statement or omission or effect such compliance, or if it is necessary at any
time to amend or supplement the Prospectus or Prospectus Supplement to comply
with the Act or the Rules and Regulations, the Depositor will promptly prepare
and file with the Commission an amendment or supplement that will correct such
statement or omission or an amendment that will effect such compliance;
provided, however, that the Depositor will not be required to file any such
amendment or supplement with respect to any Computational Materials, Structural
Term Sheets or Collateral Term Sheets incorporated by reference in the
Prospectus other than any amendments or supplements of such Computational
Materials or Structural Term Sheets that are furnished to the Depositor by the
Underwriters pursuant to Section l0(c) hereof or any amendments or supplements
of such Collateral Term Sheets that are furnished to the Depositor by the
Underwriters pursuant to Section 11(c) hereof which are required to be filed in
accordance therewith.
(d) So long as any of the Securities of a Series are outstanding,
to furnish each Underwriter copies of all reports or other communications
(financial or other) furnished to holders of such Securities, and to deliver to
the Underwriters during such same period (i) as soon as they are available,
copies of any reports and financial statements furnished to or filed with the
Commission and (ii) such additional information concerning the business and
financial condition of the Depositor as such Underwriter may from time to time
reasonably request.
(e) Promptly from time to time to take such action as the
Representative may reasonably request in order to qualify the Securities of a
Series for offering and sale under the securities laws of such states as the
Representative may request and to continue such qualifications in effect so long
as necessary under such laws for the distribution of such Securities; provided,
that in connection therewith the Depositor shall not be required to qualify as a
foreign corporation to do business or to file a general consent to service of
process in any jurisdiction.
(f) To pay all expenses (other than fees of counsel for the
Underwriters, except as provided herein) incident to the performance of the
obligations under this Underwriting Agreement and the related Terms Agreement,
including:
(i) the word processing, printing and filing of the
Registration Statement as originally filed and of each amendment
thereto;
(ii) the reproduction of this Underwriting Agreement and
the related Terms Agreement;
(iii) the preparation, printing, issuance and delivery of
the Securities of each Series to the Underwriters;
(iv) the fees and disbursements of counsel and accountants
for the Depositor;
(v) the qualification of the Securities of a Series under
securities laws in accordance with the provisions of Section 5(e)
hereof, including filing fees and the reasonable fees and disbursements
of counsel for the Underwriters in connection therewith and in
connection with the preparation of the Blue Sky Survey;
(vi) if requested by the Representative, the determination
of the eligibility of the Securities for investment and the reasonable
fees and disbursements of counsel for the Underwriters in connection
therewith and in connection with the preparation of the Legal
Investment Memorandum;
(vii) the printing and delivery to the Underwriters of
copies of the Registration Statement as originally filed and of each
amendment thereto, of the preliminary prospectuses, and of the
Prospectus and Prospectus Supplement and any amendments or supplements
thereto;
(viii) the printing and delivery to the Underwriters of
copies of the Blue Sky Survey and, if requested by the Representative,
the Legal Investment Memorandum, if any; and
(ix) the fees of any rating agency rating the Securities
of a Series.
(g) To file or cause to be filed with the Commission all reports
required to be filed with respect to each Series pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act.
(h) So long as the Securities of a Series are outstanding, or
until such time as each Underwriter shall cease to maintain a secondary market
in such Securities, whichever occurs first, to deliver to each Underwriter all
statements and reports furnished to the related Trustee or Servicer pursuant the
applicable Agreement, as soon as such statements and reports are furnished to
such Trustee or Servicer.
(i) From and after the related Closing Date, not to take any
action inconsistent with the related Trust's ownership of the related Mortgage
Loans other than as permitted by the applicable Agreement.
(j) To the extent, if any, that the rating provided with respect
to any Class of Securities of a Series by a rating agency or agencies that
initially rate such Securities is conditional upon the furnishing of documents
or the taking of any other actions by the Depositor, to furnish such documents
and take any such other actions.
(k) That during the period when a prospectus is required by law to
be delivered in connection with the sale of the Securities of a Series pursuant
to this Underwriting Agreement and the related Terms Agreement, the Depositor
will file, or cause the related Trustee to file on behalf of the related Trust,
on a timely and complete basis, all documents that are required to be filed by
such Trust with the Commission pursuant to Sections 13, 14 or 15(d) of the
Exchange Act.
6. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE UNDERWRITERS. The
obligation of the Underwriters to purchase and pay for the Securities of a
Series is subject to the accuracy of the representations and warranties on the
part of the Depositor herein and in the related Terms Agreement as of the
respective dates thereof and the related Closing Date, to the accuracy of the
statements of officers of the Depositor made pursuant to the provisions hereof
and thereof, to the performance by the Depositor of its obligations hereunder
and thereunder and to the following additional conditions precedent:
(a) The Registration Statement shall have become effective not
later than 4:00 p.m., New York time, on the day following the date of this
Underwriting Agreement or such later date as shall have been consented to by the
Representative; and prior to the related Closing Date no stop order suspending
the effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
the Depositor, shall be contemplated by the Commission. If the Depositor has
elected to rely upon Rule 430A of the Rules and Regulations, the price of the
Securities of a Series and any price-related information previously omitted from
the effective Registration Statement pursuant to such Rule 430A shall have been
transmitted to the Commission for filing pursuant to Rule 424(b) of the Rules
and Regulations within the prescribed time period, and prior to the related
Closing Date the Depositor shall have provided evidence satisfactory to the
Representative of such timely filing, or a post-effective amendment providing
such information shall have been promptly filed and declared effective in
accordance with the requirements of Rule 430A of the Rules and Regulations.
(b) The Depositor shall have delivered on or before the related
Closing Date to the Representative a certificate, dated as of such Closing Date,
signed by an authorized officer of the Depositor to the effect that the signer
of such certificate has carefully examined the Registration Statement, the
Prospectus, each related Agreement and this Underwriting Agreement and related
Terms Agreement and that:
(i) to the best of such officer's knowledge, the
representations and warranties of the Depositor in this Underwriting
Agreement and the related Terms Agreement are true and correct in all
material respects at and as of such Closing Date with the same effect
as if made on such Closing Date;
(ii) the Depositor 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;
(iii) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been initiated or to the Depositor's knowledge, threatened
as of such Closing Date; and
(iv) nothing has come to such person's attention that
would lead such person to believe that the Prospectus as amended and
supplemented as of such Closing Date contains any untrue statement of a
material fact or omits to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under
which they were made, not misleading.
(c) Since the respective dates as of which information is given in
the Prospectus and Prospectus Supplement, there shall not have occurred any
material adverse change or any development involving a prospective material
adverse change in or affecting particularly the business or assets of the
related Trust or the Depositor or any material adverse change in the financial
position or results or operations of such Trust or the Depositor otherwise than
as set forth or contemplated in the Prospectus and Prospectus Supplement, which
in any such case makes it impracticable or inadvisable in the Representative's
judgment to proceed with the public offering or the delivery of the related
Securities on the terms and in the manner contemplated in the related Terms
Agreement and Prospectus and Prospectus Supplement.
(d) Subsequent to the execution and delivery of a Terms Agreement,
there shall not have occurred (i) any change, or any development involving a
prospective change, in or affecting particularly the business, financial
condition or properties of the Depositor which, in the Representative's
judgment, materially impairs the investment quality of the related Securities,
(ii) any material adverse change in the financial markets in the United States
or any outbreak of hostilities or other calamity or crisis, the effect of which
is such as to make it, in the judgment of the Representative, impracticable or
inadvisable to market such Securities or to enforce contracts for the sale of
such Securities, (iii) the suspension of trading generally by either the
American Stock Exchange or the New York Stock Exchange, or the establishment of
minimum or maximum prices or ranges of prices, by either of such exchanges or by
order of the Commission or any other governmental authority, or any banking
moratorium declared by federal or New York authorities or (iv) any event that
would constitute a default under such Terms Agreement or this Underwriting
Agreement or default in the performance of the Depositor's obligations under any
related Agreement or which, with the passage of time or the giving of notice or
both, would constitute such default.
(e) The Representative shall have received from counsel (who shall
be satisfactory to the Representative) for the Depositor, an opinion, dated the
related Closing Date, addressed to the Underwriters and satisfactory in form and
substance to the Representative and to counsel to the Underwriters, with respect
to such matters as the Representative shall reasonably request.
(f) The Representative shall have received from counsel (who shall
be satisfactory to the Representative) for each Trustee, an opinion, dated the
related Closing Date, addressed to the Underwriters and the Depositor and
satisfactory in form and substance to the Representative and to counsel to the
Underwriters.
(g) The Representative shall have received from counsel (who shall
be satisfactory to the Representative) for each Servicer, an opinion, dated the
related Closing Date, addressed to the Underwriters and the Depositor and
satisfactory in form and substance to the Representative and to counsel to the
Underwriters.
(h) Counsel to the Depositor shall have furnished to the
Representative any opinions supplied to the rating agencies relating to certain
matters with respect to the Securities of a Series, which opinions shall also be
addressed to the Underwriters. Drafts of such opinions shall have been furnished
to the Representative no later than five business days prior to the related
Closing Date.
(i) The Representative shall have received a letter, dated the
related Closing Date and addressed to the Underwriters, from certified public
accountants (who shall be satisfactory to the Representative), substantially in
the form approved by the Representative and counsel to the Underwriters.
(j) All documents incident to the Agreements, Terms Agreements and
this Underwriting Agreement shall be reasonably satisfactory in form and
substance to the Representative and counsel to the Underwriters; and all actions
taken by the Depositor to authorize the offering and sale of the Securities of a
Series shall be reasonably satisfactory in form and substance to the
Representative and counsel to the Underwriters; and the Depositor shall furnish
the Representative and counsel to the Underwriters with such other opinions,
certificates, letters and documents as the Representative or counsel to the
Underwriters shall reasonably request.
(k) The Securities of the related Series shall have received the
ratings specified in the related Terms Agreement.
(l) On or prior to the related Closing Date, there has been no
downgrading, nor has any notice been given of (i) any intended or possible
downgrading or (ii) any review or possible changes in rating the direction of
which has not been indicated, in the rating accorded and originally requested by
and paid for by or on behalf of the Depositor relating to any previously issued
asset-backed securities of the Depositor by any "nationally recognized
statistical rating organization" (as such term is defined for purposes of the
Exchange Act).
If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Underwriting Agreement
(with respect to the related Securities) and the related Terms Agreement may be
terminated by the Representative by notice to the Depositor at any time at or
prior to the related Closing Date, and such termination shall be without
liability of any party to any other party except as provided in Section 5
hereof.
7. REIMBURSEMENT OF UNDERWRITERS' EXPENSES. If the sale of the Securities
of a Series is not consummated by reason of any failure, refusal or inability on
the part of the Depositor to perform any agreement on its part to be performed,
or because any condition of the Underwriters' obligations hereunder required to
be fulfilled shall not have been fulfilled (other than as a result of any breach
or default by the Underwriters), the Depositor shall be obligated to reimburse
the Underwriters for all out-of-pocket expenses, including the reasonable fees
and disbursements of counsel for the Underwriters. For purposes of the preceding
sentence, the conditions in clauses (ii) and (iii) of Section 6(d) shall not be
conditions required to be fulfilled by the Depositor.
8. INDEMNIFICATION AND CONTRIBUTION.
a) The Depositor shall indemnify and hold harmless each
Underwriter and each person who controls any Underwriter within the meaning of
Section 15 of the Act as follows:
(i) against any and all loss, liability, claim, damage
and expense whatsoever, as incurred, arising out of any untrue
statement or alleged untrue statement of a material fact contained in
the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or
arising out of any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage
and expense whatsoever, as incurred, to the extent of the aggregate
amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, if such
settlement is effected with the written consent of the Depositor (which
consent shall not be unreasonably withheld); and
(iii) against any and all expense whatsoever (including,
subject to Section 8(c) hereof, the reasonable fees and disbursements
of counsel chosen by the Representative) incurred in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened,
or any claim whatsoever based upon any such untrue statement or
omission, to the extent that any such expense is not paid under (i) or
(ii) above;
provided, however, that this Section 8 shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made (A) in reliance upon and
in conformity with written information furnished to the Depositor by the
Representative expressly for use in the Registration Statement (or any amendment
thereto) or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) and set forth in the Prospectus and in the Prospectus
Supplement, in each case as specified in the related Terms Agreement, or (B) in
any ABS Filing 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) from an error (a "POOL ERROR") in the
information concerning the characteristics of the Mortgage Loans furnished by
the Depositor to the Underwriter in writing or by electronic transmission that
was used in the preparation of any Computational Materials or ABS Term Sheets
(or amendments or supplements thereof) included in such ABS Filing (or amendment
or supplement thereof).
(b) Each Underwriter, severally and not jointly, agrees to
indemnify and hold harmless the Depositor, its directors, officers who signed
the Registration Statement, and each person, if any, who controls the Depositor
within the meaning of Section 15 of the Act, against any and all loss,
liability, claim, damage and expense described in the indemnity contained in
subsection (a) of this Section 8, as incurred, but only with respect to (i)
untrue statements or omissions, or alleged untrue statements or omissions, made
in the Registration Statement (or any amendment thereto), or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with written information furnished to the
Depositor through the Representative expressly for use in the Registration
Statement (or any amendment thereto) or such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto), in each case as specified
in the related Terms Agreement, or (ii) any Computational Materials or ABS Term
Sheets (or amendments or supplements thereof) furnished to the Depositor by such
Underwriter through the Representative pursuant to Section 10 or Section 11, or
directly by such Underwriter, to the extent that such materials were delivered
to investors by such Underwriter, 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 Pool Error).
(c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it with respect to which indemnity may be sought hereunder, but failure
to so notify an indemnifying party shall not relieve it from any liability which
it may have otherwise than on account of this Section 8. An indemnifying party
may participate at its own expense in the defense of any such action. In no
event shall the indemnifying parties be liable for the fees and expenses of more
than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances.
9. CONTRIBUTION. In order to provide for just and equitable contribution
in circumstances in which the indemnity agreement provided for in Section 8 is
for any reason held to be unenforceable by the indemnified parties although
applicable in accordance with its terms, the Depositor, on the one hand, and the
Underwriters (as applicable), on the other, shall contribute to the aggregate
losses, liabilities, claims, damages and expenses of the nature contemplated by
said Section 8 incurred by the Depositor and one or more Underwriters, as
incurred, in such proportions that each applicable Underwriter is responsible
for that portion represented by the percentage that the underwriting discount
received by it bears to the initial public offering price of the related Series
of Securities, and the Depositor shall be responsible for the balance; provided,
however, that 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. Notwithstanding
the other provisions of this Section 9, an Underwriter shall not be required to
contribute any amount in excess of the amount by which the total price at which
such Securities were offered to the public exceeds the amount of any damages
which such Underwriter has otherwise been required to pay in respect of such
losses, liabilities, claims, damages and expenses. For purposes of this Section
9, each person, if any, who controls an Underwriter within the meaning of
Section 15 of the Act shall have the same rights to contribution as such
Underwriter and each officer of the Depositor who signed the Registration
Statement, and each person, if any, who controls the Depositor within the
meaning of Section 15 of the Act shall have the same rights to contribution as
the Depositor.
10. COMPUTATIONAL MATERIALS AND STRUCTURAL TERM SHEETS.
(a) Not later than 5 p.m., New York time, on the business day
before the date on which the applicable ABS Filing relating to the Securities of
a Series is required to be filed by the Depositor with the Commission pursuant
to Section 5(b) hereof, the Representative shall deliver to the Depositor a
complete copy of all materials provided by the Underwriters to prospective
investors in such Securities 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 Securities
Trust Inc. 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 letters (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"); prior to such
delivery by the Representative to the Depositor of such materials, the
Representative shall notify, or cause to be notified, the Depositor or its
counsel by telephone of its intention to deliver such materials and the
approximate date on which such delivery of such materials is expected to occur.
(b) Each Underwriter, severally and not jointly, represents and
warrants to and agrees with the Depositor, as of the date of the related Terms
Agreement and as of the related Closing Date, that:
(i) the Computational Materials furnished to the
Depositor pursuant to Section 10(a) constitute (either in original,
aggregated or consolidated form) all of the materials furnished to
prospective investors by such Underwriter prior to the time of delivery
thereof to the Depositor that are required to be filed with the
Commission with respect to the related Securities in accordance with
the Xxxxxx Letters, and such Computational Materials comply with the
requirements of the Xxxxxx Letters; and
(ii) the Structural Term Sheets furnished to the Depositor
pursuant to Section 10(a) constitute all of the materials furnished to
prospective investors by such Underwriter prior to the time of delivery
thereof to the Depositor that are required to be filed with the
Commission as "Structural Term Sheets" with respect to the related
Securities in accordance with the PSA Letter, and such Structural Term
Sheets comply with the requirements of the PSA Letter.
(c) If, at any time when a prospectus relating to the Securities
of a Series is required to be delivered under the Act, it shall be necessary to
amend or supplement the related Prospectus and Prospectus Supplement as a result
of an untrue statement of a material fact contained in any Computational
Materials or Structural Term Sheets provided by the Underwriters pursuant to
this Section 10 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 ABS Filing
relating to any Computational Materials or Structural Term Sheets to comply with
the Act or the Rules and Regulations, the Representative promptly will prepare
and furnish to the Depositor for filing with the Commission an amendment or
supplement that will correct such statement or omission or an amendment which
will effect such compliance.
11. COLLATERAL TERM SHEETS.
(a) Prior to the delivery of any "Collateral Term Sheet" within
the meaning of the PSA Letter, the filing of which material is a condition of
the relief granted in such letter (such material being the "COLLATERAL TERM
SHEETS" and together with Structural Term Sheets, referred to herein as "ABS
TERM SHEETS"), to a prospective investor in Securities of a Series, the
Representative shall, in order to facilitate the timely filing of such material
with the Commission, notify the Depositor and its counsel by telephone of its
intention to deliver such materials and the approximate date on which the first
such delivery of such materials is expected to occur. Not later than 2 p.m., New
York time, on the business day immediately following the date on which any
Collateral Term Sheet was first delivered to a prospective investor in such
Securities, the Representative shall deliver to the Depositor a complete copy of
all materials provided by the Underwriters to prospective investors in the
Securities that constitute "Collateral Term Sheets." At the time of each such
delivery, the Representative shall indicate in writing that the materials being
delivered constitute Collateral Term Sheets.
(b) Each Underwriter, severally and not jointly, represents and
warrants to and agrees with the Depositor as of the date of the related Terms
Agreement and as of the related Closing Date, that the Collateral Term Sheets
furnished to the Depositor pursuant to Section 11 (a) constitute all of the
materials furnished to prospective investors by such Underwriter prior to time
of delivery thereof to the Depositor that are required to be filed with the
Commission as "Collateral Term Sheets" with respect to the related Securities in
accordance with the PSA Letter, and such Collateral Term Sheets comply with the
requirements of the PSA Letter.
(c) If, at any time when a prospectus relating to the Securities
of a Series is required to be delivered under the Act, it shall be necessary to
amend or supplement the related Prospectus and Prospectus Supplement as a result
of an untrue statement of a material fact contained in any Collateral Term
Sheets provided by the Underwriters pursuant to this Section 11 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 ABS Filing relating to any Collateral Term
Sheets to comply with the Act or the Rules and Regulations, the Representative
promptly will prepare and furnish to the Depositor for filing with the
Commission an amendment or supplement that will correct such statement or
omission or an amendment which will effect such compliance.
12. DEFAULT BY ONE OR MORE OF THE UNDERWRITERS. If one or more of the
Underwriters shall fail on a Closing Date to purchase the related Securities
which it or they are obligated to purchase under this Underwriting Agreement and
the applicable Terms Agreement (the "DEFAULTED SECURITIES"), the Representative
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 Securities in such amounts
as may be agreed upon and upon the terms herein set forth and under the
applicable Terms Agreement; if, however, the Representative shall not have
completed such arrangements within such 24-hour period, then:
(a) if the principal amount of Defaulted Securities does not
exceed 10% of the principal amount of such Series of Securities to be purchased
pursuant to such Terms Agreement, each of the non-defaulting Underwriters named
in such Terms Agreement shall be obligated, severally and not jointly, 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, or
(b) if the principal amount of Defaulted Securities exceeds 10% of
the principal amount of such Series of Securities to be purchased pursuant to
such Terms Agreement, the applicable Terms Agreement shall terminate without
liability on the part of any non-defaulting Underwriter.
No action taken pursuant to this Section 12 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 the related Terms Agreement, either the Representative or the Depositor shall
have the right to postpone the related Closing Date for a period not exceeding
seven days in order to effect any required changes in the Registration
Statement, Prospectus or Prospectus Supplement or in any other documents or
arrangements.
13. TERMINATION. This Underwriting Agreement (with respect to the related
Securities) and the related Terms Agreement shall be subject to termination in
the absolute discretion of the Representative by notice given to the Depositor
prior to delivery of and payment for all related Securities if prior to such
time (i) trading in securities of the Depositor or any of its affiliates on the
New York Stock Exchange shall have been suspended or limited, or minimum prices
shall have been established on such exchange, (ii) a banking moratorium shall
have been declared by either federal or New York State authorities, or (iii)
there shall have occurred any outbreak or material escalation of hostilities or
other calamity or crisis, the effect of which on the financial markets of the
United States is such as to make it, in the reasonable judgment of the
Underwriters, impractical to market such Securities.
14. SURVIVAL OF REPRESENTATIONS AND OBLIGATIONS. The respective
indemnities, agreements, representations, warranties and other statements of the
Depositor or its respective officers and of the Representative set forth in or
made pursuant to this Underwriting Agreement and the related Terms Agreement
will remain in full force and effect, regardless of any investigation or
statement as to the results thereof, made by or on behalf of any Underwriter,
the Depositor or any of their respective representatives, officers or directors
of any controlling person, and will survive delivery of and payment for the
related Securities.
15. NOTICES. All communications hereunder will be in writing and:
(a) if sent to the Underwriters, will be mailed, delivered or sent
by facsimile transmission and confirmed to the Representative at:
Nomura Securities International, Inc.
2 World Xxxxxxxxx Xxxxxx, Xxxxxxxx X
Xxx Xxxx, Xxx Xxxx 00000
Attention: Credit and Whole Loan Trading
Telephone: (000) 000-0000
Fax: (000) 000-0000
(b) if sent to the Depositor, will be mailed, delivered or sent by
facsimile transmission, and confirmed to it at:
Nomura Home Equity Loan, Inc.
2 World Xxxxxxxxx Xxxxxx, Xxxxxxxx X
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Telephone:
Fax:
or to such other address as the Depositor or the Representative may designate in
writing to the other parties hereto.
16. SUCCESSORS. This Underwriting Agreement will inure to the benefit of
and be binding upon the Underwriters and the Depositor and their respective
successors and the officers and directors and controlling persons referred to in
Section 8 hereof, and no other person will have any right or obligations
hereunder.
17. GOVERNING LAW. THIS UNDERWRITING AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH PARTY
HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW
YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK, NEW YORK OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS UNDERWRITING AGREEMENT AND ANY TERMS AGREEMENT, AND IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH STATE OR FEDERAL COURT, AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT
MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
OF SUCH ACTION OR PROCEEDING.
18. COUNTERPARTS. This Underwriting Agreement may be executed by each of
the parties hereto in any number of counterparts, and by each of the parties
hereto on separate counterparts, each of which counterparts, when so executed
and delivered, shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
19. PERFORMANCE OF CERTAIN OBLIGATIONS. The Representative agrees to
perform certain of the obligations and exercise certain of the rights of the
Depositor, all on behalf of the Depositor, under the related Agreement, as
specified in the related Terms Agreement.
20. NONPETITION COVENANT. Notwithstanding any prior termination of this
Underwriting Agreement or any Terms Agreement, the Underwriters shall not
acquiesce, petition or otherwise invoke or cause the Depositor or any Trust to
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Depositor or any Trust under any
federal or state bankruptcy, insolvency or similar law, or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Depositor or any Trust or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the
Depositor or any Trust.
If the foregoing is in accordance with your understanding, please sign
and return to us a counterpart hereof, whereupon this letter and your acceptance
hereof shall constitute a binding agreement between the Underwriters and the
Depositor.
Very truly yours,
NOMURA HOME EQUITY LOAN, INC.
By:
--------------------------
Name:
Title:
Accepted in New York, New York, as of the date hereof:
NOMURA SECURITIES INTERNATIONAL, INC.
By:
------------------------------
Name:
Title:
Acting on behalf of itself and, if applicable, as the Representative of the
Underwriters named in the related Terms Agreement.
EXHIBIT A
NOMURA HOME EQUITY LOAN, INC.
Asset Backed Securities Series [______]
TERMS AGREEMENT
---------------
_______ ___, 20__
To: Nomura Home Equity Loan, Inc., as depositor under the Pooling and Servicing
Agreement dated as of _______ ___, 20__ (the "Agreement").
Re: Underwriting Agreement dated April 29, 2003.
SERIES DESIGNATION: Series ___________.
TERMS OF THE SERIES SECURITIES: Nomura Home Equity Loan, Inc. Asset
Backed [Notes] [Certificates], Series _____, Class____, Class ____ Class ____,
Class ____ Class ____ Class ____ and Class ____ [Notes] [Certificates] (the
"Securities") will evidence beneficial ownership interest in a pool of Mortgage
Loans having the characteristics described in the Prospectus Supplement dated
the date hereof. Only the Class ____ Class ____, Class ____, Class ____ and
Class ____ [Notes] [Certificates] (collectively, the "Offered Securities") are
being sold pursuant to the terms hereof.
REGISTRATION STATEMENT: File Number 33-____.
RATINGS: It is a condition of closing that at the Closing Date the
Class ____ and Class ____ Securities be rated "____" by ________ ("____") and
"____" by ________ ("____"); that the Class ____ Securities be rated "____" by
____ and "____" by ____; and that the Class ____ Securities be rated "____" by
____ and "____" by ____.
TERMS OF SALE OF OFFERED SECURITIES: The Depositor agrees to sell to
Nomura Securities International, Inc. [and _______________________________ (the
"Underwriter[s]")] and Nomura Securities International, Inc. [and
_______________ each] agree[s][, severally and not jointly,] to purchase from
the Depositor the Offered Securities in the principal amounts and prices set
forth beneath their [respective] name[s] on Schedule l. The purchase price for
each class of the Offered Securities shall be the applicable Purchase Price
Percentage set forth in Schedule 1 multiplied by the applicable principal
amount.
CUT-OFF DATE: [Date]
CLOSING DATE: 10:00 A.M., New York time, on or about [Date]. On the
Closing Date, the Depositor will deliver the Offered Securities to the
Underwriters against payment therefor at the offices of ______________________.
UNDERWRITER-PROVIDED INFORMATION: The Depositor acknowledges and agrees
that the information set forth in (i) the table immediately following the ______
paragraph under the caption "Underwriting" in the Prospectus Supplement dated
[Date], (ii) the _______ and ______ paragraphs under such caption in such
Prospectus Supplement, and (iii) the table immediately following the ______
paragraph under such caption in such Prospectus Supplement, as such information
relates to the Securities, constitute the only information furnished in writing
by or on behalf of the Underwriters for inclusion in the Registration Statement,
the Prospectus or the Prospectus Supplement, and the Underwriters confirm that
such statements are correct.
PERFORMANCE OF CERTAIN OBLIGATIONS. The Representative agrees to
perform the obligations and exercise the rights of the Depositor, all on behalf
of the Depositor, under Sections ____ and ____ of the Agreement.
INCORPORATION OF THE STANDARD TERMS: Each of the provisions of the
Standard Terms is incorporated herein by reference in its entirety and shall be
deemed to be a part of this Terms Agreement to the same extent as if such
provisions had been set forth in full herein and each of the representations and
warranties set forth therein shall be deemed to have been made on and as of the
date of this Terms Agreement, and the Standard Terms and this Terms Agreement
shall be construed as, together, one and the same agreement. Without limiting
the foregoing, Sections 16 through 20 of the Standard Terms are incorporated
herein by reference in their entirety.
UNDERWRITING COMPENSATION: [As applicable].
If the foregoing is in accordance with your understanding, please sign
and return to us a counterpart hereof, whereupon this letter and your acceptance
hereof shall constitute a binding agreement between the Underwriter[s] and the
Depositor.
Very truly yours,
NOMURA SECURITIES INTERNATIONAL, INC.
By:
------------------------------
Name:
Title:
Accepted in New York, New York, as of the date hereof:
NOMURA HOME EQUITY LOAN, INC.
By:
------------------------------
Name:
Title:
SCHEDULE 1
------------------- -------------------------- ---------------------------
Initial
Interest Principal
Class Rate Amount1
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Class __ $
------------------- -------------------------- ---------------------------
Total/Wtd Avg $
------------------- -------------------------- ---------------------------
----------
1 Approximate
