EXECUTION COPY
$1,585,000,000
THE MONEY STORE INC.
The Money Store Trust Asset Backed Certificates
Series 1997-D
UNDERWRITING AGREEMENT
December 29, 1997
Xxxxxx Xxxxxxx & Co. Incorporated Xxxxxxx Lynch, Pierce, Xxxxxx &
0000 Xxxxxxxx Xxxxx Xxxxxxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000 World Financial Center
North Tower, 10th Floor
New York, New York 10281-1310
Prudential Securities Xxxxxx Brothers Inc.
Incorporated Three World Financial Center
Xxx Xxx Xxxx Xxxxx Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxxx, Xxx Xxxx 00000
Salomon Brothers Inc Nomura Securities International,
7 World Trade Center Inc.
New York, New York 10048 2 World Financial Center,
Building B
New York, New York 10281
Xxxxx Xxxxxx Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The Money Store Inc., a New Jersey corporation (the "Company"), and each of
the Originators listed on Annex A hereto (each an "Originator" and collectively,
the "Originators") hereby confirm their agreement with Xxxxxx Xxxxxxx & Co.
Incorporated, Prudential Securities Incorporated, Salomon Brothers Inc, Xxxxx
Xxxxxx Inc., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, Xxxxxx Brothers
Inc. and Nomura Securities International, Inc. (together, the "Representatives")
on behalf of the several Underwriters listed on Annex B hereto (the
"Underwriters"), with respect to the delivery by the Company, on behalf of the
Originators, of certificates entitled "The Money Store Trust Asset Backed
Certificates, Series 1997-D, Class AF-1, Class AF-2, Class AF-3, Class AF-4,
Class AF-5, Class AF-6, Class AF-7 (collectively, the "Pool I Certificates"),
Class AV-1, Class AV-2, Class MV-1, Class MV-2, Class BV (collectively, the
"Pool II Certificates"), Class AH-1, Class AH-2, Class AH-3, Class AH-4, Class
MH-1, Class MH-2, Class BH (collectively, the "Pool III Certificates") and Class
AMF (the "Pool IV Certificates," and together with the Pool I Certificates, the
Pool II Certificates and the Pool III Certificates, the "Offered Certificates")
to be issued pursuant to a Pooling and Servicing Agreement, to be dated as of
November 30, 1997 (the "Pooling and Servicing Agreement"), among the Company, as
Representative, Servicer and Claims Administrator, the Originators and The Bank
of New York, as trustee ("Bank of New York" or, in its capacity as trustee under
the Pooling and Servicing Agreement, the "Trustee"). The initial principal
amount of each Class of Offered Certificates will be as set forth on Annex B
hereto. The Offered Certificates represent beneficial interests in a trust fund
(the "Trust Fund") that will consist at the Closing Time (as defined in Section
2 hereof) primarily of four sub-trusts, consisting of one pool of fixed rate
first and junior lien home equity mortgage loans (the "Pool I Home Equity
Loans"), one pool of adjustable rate first lien home equity mortgage loans (the
"Pool II Home Equity Loans"), one pool of home improvement mortgage loans (the
"Pool III Home Improvement Loans"), certain of which Pool III Home Improvement
Loans (the "FHA Loans") are partially insured by the Federal Housing
Administration of the United States Department of Housing and Urban Development
under Title I of the National Housing Act of 1934 and one pool of multifamily
mortgage loans (the "Pool IV Multifamily Loans"), amounts to be deposited in the
Pre-Funding Account and certain related properties. The Pool I Home Equity
Loans, Pool II Home Equity Loans and Pool III Home Improvement Loans and the
Pool IV Multifamily Loans are referred to herein collectively as the "Loans".
Simultaneously with the issuance and delivery of the Offered Certificates as
contemplated herein, the Company, on behalf of the Originators, will cause to be
issued under the Pooling and Servicing Agreement certificates entitled "The
Money Store Trust Asset Backed Certificates, Series 1997-D, Class R-1 and Class
R-2" (the "Class R Certificates"), and "The Money Store Trust Asset Backed
Certificates, Series 1997-D, Class X" (the "Class X Certificates" and, together
with the Offered Certificates and Class R Certificates, the "Certificates"). The
Certificates will evidence fractional interests in the Trust Fund. The Class R
Certificates and Class X Certificates will be retained by the Company and TMS
Special Holdings, Inc. and are not being delivered to the Underwriters
hereunder.
On or prior to the date of issuance of the Certificates, the Company will
obtain from MBIA Insurance Corporation ("MBIA") certificate guaranty insurance
policies (the "MBIA Policies") on behalf of the Trustee for the benefit of the
holders of the Pool I and Pool IV Certificates. An election will be made to
treat certain assets of the Trust Fund as a real estate mortgage investment
conduit ("REMIC") within the meaning of Section 860D of the Internal Revenue
Code of 1986, as amended (the "Code").
Capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in the Pooling and Servicing Agreement.
Prior to the delivery of the Offered Certificates by the Company, on behalf
of the Originators, and the public offering thereof by the Underwriters, the
Company and the Representatives, as representatives of the Underwriters, shall
enter into an agreement substantially in the form of Exhibit A hereto (the
"Pricing Agreement"). The Pricing Agreement shall be between the Company and the
Representatives, as representatives of the Underwriters, and shall specify such
applicable information as is indicated in, and be in substantially the form of,
Exhibit A hereto. The offering of the Offered Certificates will be governed by
this Agreement, as supplemented by the Pricing Agreement. From and after the
date of the execution and delivery of the Pricing Agreement, this Agreement
shall be deemed to incorporate the Pricing Agreement.
The Company and the Originators understand that the Underwriters propose to
make a public offering of the Offered Certificates as soon as the Underwriters
deem advisable after the Pricing Agreement has been executed and delivered.
Section 1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE
ORIGINATORS.
(a) The Company and the Originators represent and warrant to each of the
Underwriters as of the date hereof and, if the Pricing Agreement is executed on
a date other than the date hereof, as of the date of the Pricing Agreement (such
latter date being hereinafter referred to as the "Representation Date") as
follows:
(i) The Company, on behalf of the Originators, has filed with the
Securities and Exchange Commission (the "Commission") registration
statements on Form S-3 (No. 333-32775) including a prospectus, and such
amendments thereto as may have been required to the date hereof, relating
to the Offered Certificates and the offering thereof from time to time in
accordance with Rule 415 under the Securities Act of 1933, as amended (the
"1933 Act"), and such registration statement, as amended, has become
effective. Such registration statement, as amended, and the prospectus
relating to the sale of the Offered Certificates constituting a part
thereof as from time to time amended or supplemented (including any
prospectus supplement (the "Prospectus Supplement") filed with the
Commission pursuant to Rule 424 of the rules and regulations of the
Commission under the 1933 Act (the "1933 Act Regulations") and any
information incorporated therein by reference) are respectively referred to
herein collectively as the "Registration Statement" and the "Prospectus."
The conditions of Rule 415 under the 1933 Act have been satisfied with
respect to the Company and the Registration Statement.
(ii) At the time the Registration Statement became effective and
at the Representation Date, the Registration Statement complied and will
comply in all material respects with the requirements of the 1933 Act and
the 1933 Act Regulations and did not and will not contain an 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. The Prospectus, at the Representation Date (unless the term
"Prospectus" refers to a prospectus which has been provided to the
Representatives, as representatives of the Underwriters, by the Company for
use in connection with the offering of the Offered Certificates which
differs from the Prospectus on file at the Commission at the time the
Registration Statement became effective, in which case at the time it is
first provided to the Representatives, as representatives of the
Underwriters, for such use) and at Closing Time referred to in Section 2
hereof, will not include an untrue statement of a material fact or omit 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;
provided, however, that the representations and warranties in this
subsection shall not apply to statements in or omissions from the
Registration Statement or Prospectus made in reliance upon and in
conformity with information furnished to the Company in writing by any
Underwriter through the Representatives expressly for use in the
Registration Statement or Prospectus; and provided further, that neither
the Company nor the Originators make any representations or warranties as
to any information in any Computational Materials (as defined in Section 11
below) provided by any Underwriter to the Company pursuant to Section 11,
except to the extent of any errors in the Computational Materials that are
caused by errors in the pool information provided by the Company to the
applicable Underwriter. The conditions to the use by the Company of a
registration statement on Form S-3 under the 1933 Act, as set forth in the
General Instructions to Form S-3, have been satisfied with respect to the
Registration Statement and the Prospectus.
(iii) Since the respective dates as of which information is given
in the Registration Statement and the Prospectus, except as otherwise
stated therein, (A) there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company, the Originators and their subsidiaries
considered as one enterprise, whether or not arising in the ordinary course
of business, which would have a material adverse effect on the ability of
the Company and the Originators to perform their obligations under the
Basic Documents (as defined below) and, in the case of the Company, the
Indemnification Agreement (as defined below) and (B) there have been no
transactions entered into by the Company or the Originators or any of their
subsidiaries, other than those in the ordinary course of business, which
would have a material adverse effect on the ability of the Company and the
Originators to perform their obligations under this Agreement, the Pricing
Agreement, the Pooling and Servicing Agreement and the Insurance Agreement
dated as of December 1, 1997 among the Company, the Originators, the
Trustee and MBIA (the "Insurance Agreement") (this Agreement, the Pricing
Agreement, the Pooling and Servicing Agreement, and the Insurance Agreement
being herein referred to, collectively, as the "Basic Documents") and the
Indemnification Agreement to be dated as of December 1, 1997 (the
"Indemnification Agreement") among the Company, MBIA and the Underwriters.
(iv) The Company has been duly organized and is validly existing
as a corporation in good standing under the laws of the State of New Jersey
with all requisite power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus and
to enter into and perform its obligations under the Basic Documents and the
Indemnification Agreement; and the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except
where the failure to so qualify would not have a material adverse effect
on, (A) the Company's ability to perform its obligations under the Basic
Documents and the Indemnification Agreement, or (B) the business,
properties, financial position, operations or results of operations of the
Company.
(v) Each Originator has been duly organized and is validly
existing as a corporation in good standing under the laws of its
jurisdiction of incorporation with all requisite power and authority to
own, lease and operate its properties and to conduct its business as
described in the Prospectus and to enter into and perform its obligations
under the Basic Documents; and each Originator is duly qualified as a
foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except
where the failure to so qualify would not have a material adverse effect
on, (A) the Originator's ability to perform its obligations under the Basic
Documents, or (B) the business, properties, financial position, operations
or results of operations of the Originator.
(vi) Any person who signed this Agreement on behalf of the
Company or the Originators, was, as of the time of such signing and
delivery, and is now duly elected or appointed, qualified and acting, and
the Agreement, as so executed, is duly and validly authorized, executed,
and constitutes the valid, legal and binding agreement of the Company and
each Originator, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors' rights in
general and by general principles of equity regardless of whether such
enforcement is considered in a proceeding in equity or at law.
(vii) Any person who signs the Indemnification Agreement on
behalf of the Company, will be, as of the time of such signing and
delivery, duly elected or appointed, qualified and acting, and the
Indemnification Agreement, as so executed, will have been duly and validly
authorized, and, when executed, will constitute the valid, legal and
binding agreement of the Company, enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of
creditors' rights in general and by general principles of equity regardless
of whether such enforcement is considered in a proceeding in equity or at
law.
(viii) The Pooling and Servicing Agreement and the Insurance
Agreement have been duly and validly authorized by the Company and the
Originators and, when executed and delivered by the Company and the
Originators and duly and validly authorized, executed and delivered by the
other parties thereto, will constitute, the valid and binding agreement of
the Company and the Originators, enforceable in accordance with their
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of
creditors' rights in general and by general principles of equity regardless
of whether such enforcement is considered in a proceeding in equity or at
law; and the Pooling and Servicing Agreement and the MBIA Policies conform
in all material respects to the statements relating thereto contained in
the Prospectus.
(ix) The Certificates have been duly and validly authorized by
the Company and, when executed and delivered by the Company and
authenticated by the Trustee as specified in the Pooling and Servicing
Agreement and, in the case of the Offered Certificates, delivered to the
Underwriters pursuant to this Agreement, the Certificates will be duly and
validly issued and outstanding and entitled to the benefits of the Pooling
and Servicing Agreement; and the Certificates conform in all material
respects to all statements relating thereto contained in the Prospectus.
(x) Neither the issuance or delivery of the Certificates, nor the
consummation of any other of the transactions herein contemplated or in any
other Basic Document and, in the case of the Company, the Indemnification
Agreement, nor the execution and delivery by the Company and the
Originators of the Basic Documents and, in the case of the Company, the
Indemnification Agreement nor the fulfillment of the terms of the
Certificates or each Basic Document and, in the case of the Company, the
Indemnification Agreement will result in the breach of any term or
provision of the charter or by-laws of the Company and the Originators, and
the Company and the Originators are not in breach or violation of or in
default (nor has an event occurred which with notice or lapse of time or
both would constitute a default) under the terms of (A) any material
obligation, agreement, covenant or condition contained in any material
contract, indenture, loan agreement, note, lease or other material
instrument to which the Company or the Originators are a party or by which
it may be bound, or to which any of the property or assets of the Company
or the Originators are subject, or (B) any law, decree, order, rule or
regulation applicable to the Company and the Originators of any court or
supervisory, regulatory, administrative or governmental agency, body or
authority, or arbitrator having jurisdiction over the Company or the
Originators or their properties, the default in or the breach or violation
of which would have a material adverse effect on the Company or the
Originators or the ability of the Company and the Originators to perform
their obligations under the Basic Documents and, in the case of the
Company, the Indemnification Agreement; and neither the issuance or
delivery of the Certificates, nor the consummation of any other of the
transactions herein contemplated, nor the fulfillment of the terms of the
Certificates or the Basic Documents and, in the case of the Company, the
Indemnification Agreement will result in such a breach, violation or
default which would have such a material adverse effect.
(xi) Except as described in the Prospectus, there is no action,
suit or proceeding against or investigation of the Company or any
Originator, now pending, or, to the knowledge of the Company and the
Originators, threatened against the Company or any Originator, before any
court, governmental agency or body (A) which is required to be disclosed in
the Prospectus (other than as disclosed therein) or (B) (1) asserting the
invalidity of any Basic Document, the Indemnification Agreement or the
Certificates, (2) seeking to prevent the issuance of the Certificates or
the consummation of any of the transactions contemplated by the Basic
Documents, (3) which would materially and adversely affect the performance
by the Company or any Originator of its obligations under the Basic
Documents, or the validity or enforceability of any Basic Document or the
Certificates and, in the case of the Company, the Indemnification Agreement
or (4) seeking to adversely affect the federal income tax attributes of the
Offered Certificates described in the Prospectus; all pending legal or
governmental proceedings to which the Company or any Originator is a party
or of which any of its property or assets is the subject which are not
described in the Prospectus, including ordinary routine litigation
incidental to the business, are, considered in the aggregate, not material
to the Company's or any Originator's ability to perform its obligations
under the Basic Documents and, in the case of the Company, the
Indemnification Agreement.
(xii) The Company and each of the Originators possess such
licenses, certificates, authorities or permits issued by the appropriate
state or federal regulatory agencies or governmental bodies necessary to
conduct the businesses now conducted by them (except where the failure to
possess any such license, certificate, authority or permit would not
materially and adversely affect the holders of the Offered Certificates)
and neither the Company nor any of the Originators has received 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 any unfavorable decision, ruling or finding,
would materially and adversely affect the ability of the Company to perform
its obligations under the Basic Documents and the Indemnification
Agreement.
(xiii) No authorization, approval or consent of any court or
governmental authority or agency is necessary in connection with the
issuance or sale of the Offered Certificates hereunder, except such as have
been obtained or will be obtained prior to the Closing Date and except as
may be required under state securities laws.
(xiv) At the time of execution and delivery of the Pooling and
Servicing Agreement by the Company, the Originators and the Trustee, the
Trustee (or, with respect to the Pool III Home Improvement Loans, the
Co-Trustee) will have acquired good title on behalf of the Trust Fund to
the related Loans, free and clear of any security interest, mortgage,
pledge, lien, encumbrance, claim or equity, and, upon delivery to the
Underwriters of the Offered Certificates which they purchase, the
Underwriters will have good and marketable title to such Offered
Certificates free and clear of any security interest, mortgage, pledge,
lien, encumbrance, claim or equity.
(xv) The transfer of the Loans to the Trust Fund at Closing Time
will be treated by the Company and the Originators for financial accounting
and reporting purposes as a sale of assets and not as a pledge of assets to
secure debt.
(xvi) Each assignment of Mortgage required to be prepared
pursuant to the Pooling and Servicing Agreement is based on forms recently
utilized by the applicable Originator with respect to mortgaged properties
located in the appropriate jurisdiction and used in the regular course of
the applicable Originator's business. Upon execution each such assignment
will be in recordable form, and it is reasonable to believe that it will be
sufficient to effect the assignment of the Mortgage to which it relates as
provided in the Pooling and Servicing Agreement.
(xvii) Any taxes, fees and other governmental charges that are
assessed and due in connection with the execution, delivery and issuance of
the Basic Documents, the Indemnification Agreement and the Offered
Certificates which have become due or will become due on or prior to
Closing Time shall have been paid at or prior to Closing Time.
(xviii) The Trust Fund is not required to be registered as an
"investment company" under the Investment Company Act of 1940 (the "1940
Act").
(b) Any certificate signed by any officer of the Company or any Originator
and delivered to the Representatives, as representatives of the Underwriters, or
counsel for the Underwriters shall be deemed a representation and warranty by
the Company and such Originator as to the matters covered thereby.
Section 2. DELIVERY TO THE UNDERWRITERS; CLOSING.
(a) On the basis of the representations and warranties herein contained and
subject to the terms and conditions herein set forth, the Company, on behalf of
the Originators, agrees to sell to each Underwriter, severally and not jointly,
and each of the Underwriters, severally and not jointly, agrees to purchase from
the Company, the Offered Certificates set forth opposite its name in Annex B
hereto at the price set forth below. In the event that the pass-through rates
for each Class of Offered Certificates have not been agreed upon and the Pricing
Agreement has not been executed and delivered by all parties thereto by the
close of business on the fourth business day following the date of this
Agreement, this Agreement shall terminate forthwith, without liability of any
party to any other party, unless otherwise agreed upon by the Representatives,
as representatives of the Underwriters, and the Company.
(b) Delivery of the Offered Certificates shall be made at the offices of
Stroock & Stroock & Xxxxx LLP, 000 Xxxxxx Xxxx, Xxx Xxxx, Xxx Xxxx 00000, or at
such other place as shall be agreed upon by the Underwriter and the Company, at
11:00 A.M., New York City time, on December 31, 1997, or such other time not
later than ten business days after such date as shall be agreed upon by the
Representatives, as representatives of the Underwriters, and the Company (such
time and date of payment and delivery being herein called "Closing Time").
Each Class of Offered Certificates will initially be represented by one
certificate registered in the name of Cede & Co., the nominee of The Depository
Trust Company ("DTC") (the "DTC Certificates"). The interests of beneficial
owners of the DTC Certificates will be represented by book entries on the
records of DTC and participating members thereof. Definitive certificates
evidencing the Offered Certificates will be available only under the limited
circumstances specified in the Pooling and Servicing Agreement. The interest in
the DTC Certificates to be purchased by the applicable Underwriter will be
delivered by the Company to the applicable Underwriter (which delivery shall be
made through the facilities of DTC) against payment of the purchase price
therefor by a same day federal funds wire payable to the order of the Company,
equal to 99.852711066% of the aggregate initial principal amount of the Offered
Certificates plus accrued interest as set forth in the Prospectus Supplement.
Section 3. COVENANTS OF THE COMPANY AND THE ORIGINATORS. The Company and
the Originators covenant with each of the Underwriters as follows:
(a) The Company will promptly notify the Representatives, as
representatives of the Underwriters, and confirm the notice in writing, (i)
of any amendment to the Registration Statement; (ii) of any request by the
Commission for any amendment to the Registration Statement or any amendment
or supplement to the Prospectus or for additional information; (iii) of the
issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or the initiation or threatening of any
proceedings for that purpose; and (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Offered Certificates for sale in any jurisdiction or the initiation or
threatening of any proceedings for that purpose. The Company will make
every reasonable effort to prevent the issuance of any stop order and, if
any stop order is issued, to obtain the lifting thereof at the earliest
possible moment.
(b) The Company will give the Representatives, as representatives
of the Underwriters, notice of its intention to file or prepare any
amendment to the Registration Statement or any amendment or supplement to
the Prospectus (including any revised prospectus which the Company proposes
for use by the Underwriters in connection with the offering of the Offered
Certificates which differs from the prospectus on file at the Commission at
the time the Registration Statement becomes effective, whether or not such
revised prospectus is required to be filed pursuant to Rule 424(b) of the
1933 Act Regulations, will furnish the Representatives, as representatives
of the Underwriters, with copies of any such amendment or supplement a
reasonable amount of time prior to such proposed filing or use, as the case
may be, and, unless required by law to do so, will not file any such
amendment or supplement or use any such prospectus to which The
Representatives, as representatives of the Underwriters, or counsel for the
Underwriters shall reasonably object.
(c) The Company will deliver to the Representatives, as
representatives of the Underwriters, as many signed and as many conformed
copies of the Registration Statement as originally filed and of each
amendment thereto (in each case including exhibits filed therewith) as the
Representatives may reasonably request.
(d) The Company will furnish to the Representatives, as
representatives of the Underwriters, from time to time during the period
when the Prospectus is required to be delivered under the 1933 Act or the
Securities Exchange Act of 1934, as amended (the "1934 Act"), such number
of copies of the Prospectus (as amended or supplemented) as the
Representatives may reasonably request for the purposes contemplated by the
1933 Act or the 1934 Act or the respective applicable rules and regulations
of the Commission thereunder.
(e) If any event shall occur as a result of which it is
necessary, in the reasonable opinion of counsel for the Underwriters, to
amend or supplement the Prospectus in order to make the Prospectus not
misleading in the light of the circumstances existing at the time it is
delivered to a purchaser, the Company will forthwith amend or supplement
the Prospectus (in form and substance satisfactory to counsel for the
Underwriters) so that, as so amended or supplemented, the Prospectus will
not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the
light of the circumstances existing at the time it is delivered to a
purchaser, not misleading, and the Company will furnish to the
Representatives, as representatives of the Underwriters, a reasonable
number of copies of such amendment or supplement.
(f) The Company and the Originators will endeavor, in cooperation
with the Representatives, as representatives of the Underwriters, to
qualify the Offered Certificates for offering and sale under the applicable
securities laws of such states and other jurisdictions of the United States
as the Representatives, as representatives of the Underwriters, may
designate; provided, however, that neither the Company nor any Originator
shall be obligated to qualify as a foreign corporation in any jurisdiction
in which it is not so qualified. In each jurisdiction in which the Offered
Certificates have been so qualified, the Company and the Originators will
file such statements and reports as may be required by the laws of such
jurisdiction to continue such qualification in effect for a period of not
less than one year from the date hereof.
(g) So long as any Certificates shall be outstanding, the Company
and the Originators will deliver to the Representatives, as representatives
of the Underwriters, as promptly as practicable, such information
concerning the Company, the Originators or the Certificates as the
Representatives may reasonably request from time to time.
Section 4. PAYMENT OF EXPENSES. The Company and the Originators will pay
all expenses incident to the performance of their obligations under this
Agreement, including (i) the printing (or other reproducing) and filing of the
Registration Statement as originally filed and of each amendment thereto (other
than amendments relating to the filing of Computational Materials pursuant to
Section 11); (ii) the reproducing of the Basic Documents and the Indemnification
Agreement; (iii) the preparation, printing, issuance and delivery of the
certificates for the DTC Certificates to the Underwriters; (iv) the fees and
disbursements of (A) the Company's counsel, (B) the Underwriters' counsel, (C)
KPMG Peat Marwick, accountants for the Company and issuer of the comfort letter,
(D) the Trustee and the Co-Trustee, if applicable, and their respective counsel
and (E) DTC in connection with the book-entry registration of the DTC
Certificates; (v) the qualification of the Offered Certificates under state
securities laws in accordance with the provisions of Section 3(f) hereof,
including filing fees and the fees and disbursements of counsel for the
Underwriters in connection therewith and in connection with the preparation of
the Blue Sky Survey; (vi) the printing (or other reproducing) and delivery to
the Underwriters of copies of the Registration Statement as originally filed and
of each amendment thereto, of each preliminary prospectus and of the Prospectus
and any amendments or supplements thereto; (vii) the fees charged by each of
Xxxxx'x Investors Service, Inc. ("Moody's"), Standard & Poor's Rating Services,
a division of The XxXxxx-Xxxx Companies Inc. ("Standard & Poor's") and Ftich
IBCA Inc. ("Fitch"), for rating the Offered Certificates; and (viii) the
reproducing and delivery to the Underwriters of copies of the Blue Sky Survey.
If this Agreement is terminated by the Representatives, as representatives
of the Underwriters, in accordance with the provisions of Section 5 or Section
9(a)(i) (unless, in the case of Section 9(a)(i), such termination arises from a
change or development involving a prospective change in or affecting the
business or properties of MBIA), the Company and the Originators shall reimburse
the Underwriters severally for all of their reasonable out-of-pocket expenses,
including the reasonable fees and disbursements of counsel for the Underwriters.
Section 5. CONDITIONS OF THE UNDERWRITERS' OBLIGATIONS. The obligations of
the Underwriters hereunder are subject, in the Representatives' sole discretion,
to the accuracy of the representations and warranties of the Company and the
Originators herein contained, to the performance by the Company and the
Originators of their respective obligations hereunder, and to the following
further conditions:
(a) The Registration Statement shall have become effective and,
at Closing Time, no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the 1933 Act or
proceedings therefor initiated or threatened by the Commission. As of the
Closing Time, the Prospectus shall have been filed with the Commission in
accordance with Rule 424 of the 1933 Act Regulations.
(b) At Closing Time, the Representatives, as representatives of
the Underwriters, shall have received:
(i) The favorable opinion, dated as of Closing Time, of
Stroock & Stroock & Xxxxx LLP, counsel for the Underwriters, to the
effect that:
(A) To the best of their knowledge and information, the
Registration Statement is effective under the 1933 Act and no
stop order suspending the effectiveness of the Registration
Statement has been issued under the 1933 Act or proceedings
therefor initiated or threatened by the Commission.
(B) At the time the Registration Statement became
effective and at the Representation Date, the Registration
Statement (other than the financial, numerical, statistical and
quantitative information included or incorporated therein, as to
which no opinion need be rendered) complied as to form in all
material respects with the requirements of the 1933 Act and the
Rules and Regulations thereunder.
(C) The information in the Prospectus under
"Description of the Certificates" and "The Agreements" and the
information in the Prospectus Supplement under "Description of
the Agreement" and "Description of The Certificates," insofar as
they constitute summaries of certain provisions of the
Certificates, the Pooling and Servicing Agreement, the Insurance
Agreement and the MBIA Policies, summarizes fairly such
provisions.
(D) The information in the Prospectus under "Summary of
Terms -- Federal Income Tax Consequences," "Summary of Terms --
ERISA Considerations," "Certain Legal Aspects of the Mortgage
Loans," "Federal Income Tax Consequences," "ERISA Considerations"
and "Risk Factors--The Status of the Mortgage Loans in the Event
of Bankruptcy of The Representative or an Originator" and in the
Prospectus Supplement under "Summary of Terms-- REMIC Election
and Tax Status," "Summary of Terms--ERISA Considerations,"
"Federal Income Tax Consequences," and "ERISA Considerations," to
the extent that they constitute matters of federal, New York or
California law, summaries of legal matters, documents or
proceedings or legal conclusions, has been reviewed by them and
is correct in all material respects.
(E) TMS Special Holdings, Inc. has been duly
incorporated and is validly existing and in good standing under
the laws of the State of Delaware. TMS Mortgage Inc. is qualified
to transact business as a foreign corporation in, and is in good
standing under the laws of, the States of California, Florida and
New York.
(F) Assuming due authorization, execution and delivery
by the other parties thereto (including but not limited to the
Originators), the Pooling and Servicing Agreement, the
Certificates, the Insurance Agreement, the Indemnification
Agreement, the Pricing Agreement and this Agreement are legal,
valid and binding agreements enforceable in accordance with their
respective terms against the Company, subject (a) to the effect
of bankruptcy, insolvency, reorganization, moratorium and similar
laws relating to or affecting creditors' rights generally and
court decisions with respect thereto, (b) to the understanding
that no opinion is expressed as to the application of equitable
principles in any proceeding, whether at law or in equity, and
(c) to limitations of public policy under applicable securities
laws as to rights of indemnity and contribution thereunder.
(G) No consent, approval, authorization or order of any
court or governmental agency or body is required for the
execution, delivery and performance by the Company of, or
compliance by the Company with, this Agreement, the Pooling and
Servicing Agreement, the Insurance Agreement, the Pricing
Agreement and the Indemnification Agreement or the offer,
issuance, sale or delivery of the Certificates, or the
consummation of any other transactions by the Company
contemplated by this Agreement, the Insurance Agreement, the
Pooling and Servicing Agreement, the Pricing Agreement and the
Indemnification Agreement, except as may be required under the
blue sky laws of any jurisdiction (as to which such counsel need
not opine) and such other approvals as have been obtained.
(H) Neither the consummation of the transactions
contemplated by, nor the fulfillment of the terms of, this
Agreement, the Pooling and Servicing Agreement, the Insurance
Agreement, the Pricing Agreement, the Indemnification Agreement
and the Certificates, conflicts or will conflict with or results
or will result in a breach of or constitutes or will constitute a
default under (a) the terms of any material indenture or other
material agreement or instrument of which counsel has knowledge
to which the Company is a party or by which it is bound or to
which it is subject or (b) any statute or order, rule,
regulation, writ, injunction or decree of which counsel has
knowledge of any court, governmental authority or regulatory body
to which the Company is subject or by which it is bound.
(I) The delivery of each Mortgage Note and Mortgage by
an Originator as and in the manner contemplated by the
Underwriting Agreement and the Pooling and Servicing Agreement is
sufficient fully to transfer to the Trustee (or, with respect to
the Pool III Home Improvement Loans, the Co- Trustee) for the
benefit of the Certificateholders all right, title and interest
of the applicable Originator in and to each such Loan including,
without limitation, the right to enforce each such Loan in
accordance with its terms to the extent enforceable by the
related Originator at the time of such delivery. With respect to
the transfer of the Loans by the Originators, such counsel shall
express no opinion as to (i) whether the laws of the State of New
York would apply to the transfer of the related Mortgages or (ii)
the effectiveness of the transfer of the Mortgages under the laws
of the jurisdictions in which such Originators are located (other
than Mortgages relating to Mortgaged Properties situated in
California or New York) or in which the Mortgaged Properties are
situated (other than Mortgaged Properties situated in California
or New York) or the right of the Trustee and the Co-Trustee to
enforce such Mortgages.
(J) The Certificates, assuming due execution by the
Company, due authorization by the Trustee and delivery and
payment therefore pursuant to the Underwriting Agreement, will be
validly issued and outstanding and entitled to the benefits of
the Pooling and Servicing Agreement.
(K) Assuming compliance with all provisions of the
Pooling and Servicing Agreement, for federal income tax purposes,
each of REMIC I and REMIC II will qualify as a REMIC, the Offered
Certificates and the Class X Certificates will constitute
"regular interests" in REMIC I and the Class R-1 Certificates and
the Class R-2 Certificates will each constitute a single class of
"residual interests" in REMIC I and REMIC II, respectively,
within the meaning of the REMIC Provisions. Assuming compliance
with all provisions of the Pooling and Servicing Agreement, for
New York State and City tax purposes, each of REMIC I and REMIC
II will be classified as a REMIC and not as a corporation,
partnership or trust, in conformity with the federal income tax
treatment of such assets. Accordingly, each of REMIC I and REMIC
II will be exempt from all New York State and City taxation
imposed upon its income, franchise or capital stock.
Additionally, each of REMIC I and REMIC II will be exempt from
all State of California taxation imposed upon its income,
franchise or capital stock, other than the application of the
annual minimum tax under Section 23153 of the California Revenue
and Taxation Code.
(L) An Offered Certificate owned by a "domestic
building and loan association" within the meaning of Section
7701(a)(19) of the Code will be considered in its entirety to
represent an interest in qualified assets within the meaning of
Section 7701(a)(19)(C)(xi) of the Code so long as at least 95% of
the REMIC I's assets consist of assets described in Section
7701(a)(19)(C)(i) through (x) of the Code. If less than 95% of
the REMIC I's assets consist of such items, an Offered
Certificate will be considered qualified assets in the same
proportion as the REMIC I's assets which are such items. An
Offered Certificate owned by a real estate investment trust will
be considered in its entirety an interest in "real estate assets"
within the meaning of Section 856(c)(5)(A) of the Code and
interest thereon will be considered in its entirety "interest on
obligations secured by mortgages on real property" within the
meaning of Section 856(c)(3)(B) of the Code in both cases so long
as at least 95% of the REMIC I's assets are "real estate assets"
as defined in Section 856(c)(3)(B) of the Code. If less than 95%
of the REMIC I's assets are "real estate assets," an Offered
Certificate will be considered "real estate assets" and the
interest thereon will be considered "interest on obligations
secured by mortgages on real property" in the same proportion as
the REMIC I's assets which are "real estate assets." An Offered
Certificate will not be considered "residential loans" for
purposes of the residential loan requirement of Section
593(g)(4)(B) of the Code. An Offered Certificate held by another
REMIC will be a "qualified mortgage" within the meaning of
Section 860G(a)(3) of the Code, assuming it is transferred to the
REMIC on its startup day in exchange for regular or residual
interests in such REMIC.
(M) The Pooling and Servicing Agreement is not required
to be qualified under the Trust Indenture Act of 1939, as
amended. The Trust Fund created by the Pooling and Servicing
Agreement is not required to be registered under the Investment
Company Act of 1940, as amended.
In rendering such opinion, Stroock & Xxxxxxx & Xxxxx LLP may
rely on certificates of responsible officers of the Company, the Trustee, the
Co-Trustee and public officials or, as to matters of law other than New York,
California or Federal law, on opinions of other counsel (copies of which
opinions shall be delivered to you and upon which you may rely).
(ii) The favorable opinion, dated as of Closing Time, of
counsel for the Company and the Originators, in form and substance
satisfactory to counsel for the Underwriters, to the effect that:
(A) The Company has been duly organized and is validly
existing and is in good standing under the laws of the State of
New Jersey. Each Originator has been duly organized under the
laws of its jurisdiction of incorporation and is qualified to
transact business in the laws of the states in which the
Mortgaged Properties underlying the Loans originated by each such
Originator are located or is otherwise exempt under applicable
law from such qualification. TMS Special Holdings, Inc. has been
duly organized and is validly existing and in good standing under
the laws of the State of Delaware.
(B) The Company and each of the Originators have the
power to engage in the transactions contemplated by this
Agreement, the Pooling and Servicing Agreement, the Insurance
Agreement and, in the case of the Company, the Pricing Agreement,
the Indemnification Agreement, the Auction Agent Agreement and
the Certificates, and have all requisite power, authority and
legal right to execute and deliver this Agreement, the Pooling
and Servicing Agreement, the Insurance Agreement, and, in the
case of the Company, the Pricing Agreement, the Indemnification
Agreement, the Auction Agent Agreement and the Certificates (and
any other documents delivered in connection therewith) and to
perform and observe the terms and conditions of such instruments.
(C) This Agreement, the Pooling and Servicing
Agreement, the Insurance Agreement, the Pricing Agreement, the
Indemnification Agreement, and the Certificates each have been
duly authorized, executed and delivered by the Company; this
Agreement, the Pooling and Servicing Agreement and the Insurance
Agreement each have been duly authorized, executed and delivered
by each Originator and, assuming due authorization, execution and
delivery by the other parties thereto, are legal, valid and
binding agreements of the Company and each Originator, as the
case may be, and assuming such agreements were governed by the
laws of the State of New Jersey, would be enforceable in
accordance with their respective terms against the Company and
each Originator, as the case may be, subject (a) to the effect of
bankruptcy, insolvency, reorganization, moratorium and similar
laws relating to or affecting creditors' rights generally and
court decisions with respect thereto, (b) to the understanding
that no opinion is expressed as to the application of equitable
principles in any proceeding, whether at law or in equity, and
(c) to limitations of public policy under applicable securities
laws as to rights of indemnity and contribution thereunder.
(D) Neither the transfer of the Loans to the Trust
Fund, the consummation of the transactions contemplated by, nor
the fulfillment of the terms of, this Agreement, the Pooling and
Servicing Agreement, the Insurance Agreement, or in the case of
the Company, the Pricing Agreement, the Indemnification Agreement
and the Certificates, (A) conflicts or will conflict with or
results or will result in a breach of or constitutes or will
constitute a default under the Certificates of Incorporation or
Bylaws of the Company or any Originator, or the terms of any
material indenture or other material agreement or instrument of
which such counsel has knowledge to which the Company or any
Originator are a party or by which it is bound or to which it is
subject, or (B) results in, or will result in the creation or
imposition of any lien or encumbrance upon the Trust Fund or upon
the related Certificates, except as otherwise contemplated by the
Pooling and Servicing Agreement, or (C) any statute or order,
rule, regulations, writ, injunction or decree of any court,
governmental authority or regulatory body to which the Company or
any Originator is subject or to which it is bound.
(E) Except as set forth in the Prospectus Supplement,
there is no action, suit, proceeding or investigation pending or,
to the best of such counsel's knowledge, threatened against the
Company or any Originator which, in such counsel's judgment,
either in any one instance or in the aggregate, may result in any
material adverse change in the business, operation, financial
condition, properties or assets of the Company or an Originator
or in any material impairment of the right or ability of the
Company or any Originator to carry on its business substantially
as now conducted or result in any material liability on the part
of the Company or any Originator or which would draw into
question the validity of this Agreement, the Pricing Agreement,
the Certificates, the Insurance Agreement, the Indemnification
Agreement or the Pooling and Servicing Agreement or of any action
taken or to be taken in connection with the transactions
contemplated thereby, or which would be likely to impair
materially the ability of the Company or any Originator to
perform under the terms of this Agreement, the Insurance
Agreement or the Pooling and Servicing Agreement, or in the case
of the Company, the Pricing Agreement, the Indemnification
Agreement or the Certificates.
(F) No consent, approval, authorization or order of any
court or governmental agency or body is required for the
execution, delivery and performance by the Company and each
Originator of, or compliance by the Company and each Originator
with, this Agreement, the Pooling and Servicing Agreement, the
Insurance Agreement or, in the case of the Company, the Pricing
Agreement, the Indemnification Agreement or the Certificates, or
the consummation of the transactions contemplated therein, except
such as may be required under the blue sky laws of any
jurisdiction and such other approvals as have been obtained.
(G) The delivery by TMS Mortgage Inc. ("TMS") of each
Mortgage Note and Mortgage secured by real property located in
New Jersey as and in the manner contemplated by the Pooling and
Servicing Agreement is sufficient fully to transfer to the
Trustee (or, with respect to the Pool III Home Improvement Loans,
the Co-Trustee) for the benefit of the Certificateholders all
right, title and interest of TMS in and to each such Loan
including, without limitation, the right to enforce each such
Loan in accordance with its terms to the extent enforceable by
TMS at the time of such delivery.
(iii) The favorable opinion, dated as of Closing Time, of
Xxxxx Xxxx, counsel for MBIA, in form and substance satisfactory to
counsel for the Underwriters, to the effect that:
(A) MBIA is a stock insurance corporation, duly
incorporated and validly existing under the laws of the State of
New York. MBIA is validly licensed and authorized to issue the
MBIA Policies and perform its obligations under the MBIA Policies
in accordance with the terms thereof, under the laws of the State
of New York.
(B) The execution and delivery by MBIA of the MBIA
Policies, the Insurance Agreement and the Indemnification
Agreement are within the corporate power of MBIA and have been
authorized by all necessary corporate action on the part of MBIA;
the MBIA Policies have been duly executed and is the valid and
binding obligation of MBIA enforceable in accordance with its
terms except that the enforcement of the MBIA Policies may be
limited by laws relating to bankruptcy, insolvency,
reorganization, moratorium, receivership and other similar laws
affecting creditors' rights generally and by general principles
of equity.
(C) MBIA is authorized to deliver the Insurance
Agreement and the Indemnification Agreement, and the Insurance
Agreement and the Indemnification Agreement have been duly
executed and are the valid and binding obligations of MBIA
enforceable in accordance with their respective terms except that
the enforcement of the Insurance Agreement and the
Indemnification Agreement may be limited by laws relating to
bankruptcy, insolvency, reorganization, moratorium, receivership
and other similar laws affecting creditors' rights generally and
by general principles of equity and by public policy
considerations relating to indemnification for securities law
violations.
(D) No consent, approval, authorization or order of any
state or federal court or govern-mental agency or body is
required on the part of MBIA, the lack of which would adversely
affect the validity or enforceability of the MBIA Policies; to
the extent required by applicable legal requirements that would
adversely affect the validity or enforceability of the MBIA
Policies, the form of the MBIA Policies has been filed with, and
approved by, all governmental authorities having jurisdiction
over MBIA in connection with such MBIA Policies.
(E) To the extent the MBIA Policies constitute
securities within the meaning of Section 2(l) of the Securities
Act of 1933, as amended (the "Act"), it is a security that is
exempt from the registration requirements of the Act.
(F) The information set forth under the caption "MBIA
Policies and MBIA" in the Prospectus Supplement, relating to the
offer and sale of the Class A Certificates, to the Prospectus
forming a part of the Registration Statement on Form S-3 (No.
333-32775) filed by the Company with the Securities and Exchange
Commission and declared effective on December 23, 1997, insofar
as such statements constitute a description of the MBIA Policies,
accurately summarizes the MBIA Policies.
In rendering this opinion, such counsel may rely, as to matters of fact, on
certificates of responsible officers of the Company, the Trustee, the Co-Trustee
MBIA and public officials. 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 MBIA.
(iv) The favorable opinion, dated as of Closing Time, of
Xxxxxx, Xxxxxx & Xxxxxx, counsel for the Trustee, in form and
substance satisfactory to counsel for the Underwriters.
(v) The favorable opinion, dated as of Closing Time, of
Xxxxxx & Xxxxxxxx, counsel for the Co-Trustee, in form and substance
satisfactory to counsel for the Underwriters.
(vi) The favorable opinion, dated as of the Closing Time, of
Xxxxxx & Xxxxxxxx counsel for the Custodian, in form and substance
satisfactory to counsel for the Underwriters.
(vii) In giving its opinion required by subsection (b)(i) of
this Section, Stroock & Stroock & Xxxxx LLP shall additionally state
that nothing has come to its attention that has caused it to believe
that the Registration Statement, as of 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 that the Prospectus, at the
Representation Date (unless the term "Prospectus" refers to a
prospectus which has been provided to the Representatives, as
representatives of the Underwriters, by the Company for use in
connection with the offering of the Offered Certificates which differs
from the Prospectus on file at the Commission at the Representation
Date, in which case at the time it is first provided to the
Representatives, as representatives of the Underwriters, for such use)
or at Closing Time, included an untrue statement of a material fact or
omitted 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 (other than the financial, numerical,
statistical and quantitative information contained therein, the
information under the heading "The MBIA Policies and MBIA" therein,
and the information in the Exhibits thereto, as to which such counsel
need express no view).
(c) At Closing Time, the Representatives, as representatives of the
Underwriters, shall have received from Stroock & Stroock & Xxxxx LLP, counsel
for the Underwriters, a letter, dated as of Closing Time, authorizing the
Representatives, as representatives of the Underwriters, to rely upon each
opinion delivered by Stroock & Xxxxxxx & Xxxxx LLP to each of Xxxxx'x, Standard
& Poor's and Fitch in connection with the issuance of the Certificates as though
each such opinion was addressed to the Representatives, as representatives of
the Underwriters, and attaching a copy of each such opinion.
(d) At Closing Time there shall not have been, since the date hereof or
since the respective dates as of which information is given in the Registration
Statement and the Prospectus, any material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and the Originators and their subsidiaries considered
as one enterprise, whether or not arising in the ordinary course of business,
and the Underwriters shall have received a certificate signed by one or more
duly authorized officers of the Company and the Originators, dated as of Closing
Time, to the effect that (i) there has been no such material adverse change;
(ii) the representations and warranties in Section 1(a) hereof are true and
correct in all material respects with the same force and effect as though
expressly made at and as of Closing Time; (iii) the Company and the Originators
have complied with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to Closing Time; and (iv) no stop order
suspending the effectiveness of the Registration Statement has been issued and
no proceedings for that purpose have been initiated or threatened by the
Commission.
(e) At or before the time of printing of the Prospectus Supplement, the
Representatives, as representatives of the Underwriters, shall have received
from KPMG Peat Marwick a letter dated as of Closing Time and in form and
substance satisfactory to the Representatives, as representatives of the
Underwriters, to the effect that they have carried out certain specified
procedures, not constituting an audit, with respect to (i) certain amounts,
percentages and financial information relating to the Company's servicing
portfolio which are included in the Prospectus and which are specified by the
Representatives, as representatives of the Underwriters, and have found such
amounts, percentages and financial information to be in agreement with the
relevant accounting, financial and other records of the Company and the
Originators identified in such letter, (ii) the information contained in the
weighted average life tables contained in the Prospectus under the caption
"Maturity, Prepayment and Yield Considerations" and have found such information
to be in agreement with the corresponding information as computed by KPMG Peat
Marwick and (iii) certain information regarding the Loans and the Files which
are specified by the Representatives, as representatives of the Underwriters,
and contained in the Current Report on Form 8-K described in Section 5(l) hereof
and setting forth the results of such specified procedures.
Notwithstanding the foregoing, if the letter delivered by KPMG Peat Marwick
at Closing Time does not cover the information set forth in subclause (iii), the
Company shall cause KPMG Peat Marwick to deliver to the Representatives, as
representatives of the Underwriters, an additional letter covering such
information within 5 business days of the Closing Time.
(f) At Closing Time, the Representatives, as representatives of the
Underwriters, shall have received from each of the Trustee and the Co-Trustee a
certificate signed by one or more duly authorized officers of the Trustee and
the Co-Trustee, respectively, dated as of Closing Time, as to the due acceptance
of the Pooling and Servicing Agreement by the Trustee and the Co-Trustee and the
due authentication of the Certificates by the Trustee and such other matters as
the Representatives, as representatives of the Underwriters, shall request.
(g) At Closing Time, the Representatives, as representatives of the
Underwriters, shall have received a certificate signed by one or more duly
authorized officers of MBIA, dated as of Closing Time, to the effect that the
information contained under the caption "The MBIA Policies and MBIA" in the
Prospectus and the information incorporated by reference therein is true and
accurate in all material respects and such other matters as the Representatives,
as representatives of the Underwriters, shall request.
(h) At Closing Time, the Representatives, as representatives of the
Underwriters, shall have received a certificate signed by one or more duly
authorized officers of the Company and the Originators, dated as of Closing Time
to the effect that:
(i) the representations and warranties of the Company and
the Originators in the Pooling and Servicing Agreement are true and
correct in all material respects at and on the Closing Date, with the
same effect as if made on the Closing Date;
(ii) the Company and the Originators have complied with all
the agreements and satisfied all the conditions on its part to be
performed or satisfied in connection with the sale and delivery of the
Certificates;
(iii) all statements and information contained in the
Prospectus Supplement under the captions "The Representative and the
Originators" and "The Loans" and in the Prospectus under the captions
"The Representative and the Originators" and "Lending Programs" are
true and accurate in all material respects and nothing has come to
such officer's attention that would lead him to believe that any of
the specified sections contains any untrue statement of a material
fact or omits to state any material fact necessary in order to make
the statements and information therein, in the light of the
circumstances under which they were made, not misleading;
(iv) the information set forth in the Schedule of Loans
required to be furnished pursuant to the Pooling and Servicing
Agreement is true and correct in all material respects and the Loans
actually being delivered to the Trustee and the Co-Trustee at Closing
Time conform in all material respects to the Pool information set
forth in the Prospectus Supplement;
(v) the copies of the Charter and By-laws of the Company and
the Originators attached to such certificate are true and correct and,
are in full force and effect on the date thereof;
(vi) except as may otherwise be disclosed in the Prospectus,
there are no actions, suits or proceedings pending (nor, to the best
knowledge of such officers, are any actions, suits or proceedings
threatened), against or affecting the Company or any Originator which
if adversely determined, individually or in the aggregate, would
adversely affect the Company's or such Originator's obligations under
the Pooling and Servicing Agreement, the Indemnification Agreement,
the Insurance Agreement, the Pricing Agreement or this Agreement;
(vii) each person who, as an officer or representative of
the Company or of any Originator, signed (a) this Agreement, (b) the
Pooling and Servicing Agreement, (c) the Certificates issued
thereunder, (d) the Insurance Agreement, (e) the Indemnification
Agreement or (f) any other document delivered prior hereto or on the
date hereof in connection with the purchase described in this
Agreement and the Pooling and Servicing Agreement, was, at the
respective times of such signing and delivery, and is now duly elected
or appointed, qualified and acting as such officer or representative;
(viii) a certified true copy of the resolutions of the board
of directors of the Company and the Originators with respect to the
sale of the Offered Certificates subject to this Agreement and the
Pooling and Servicing Agreement, which resolutions have not been
amended and remain in full force and effect;
(ix) all payments received with respect to the Loans after
the Cut-Off Date have been deposited in the Principal and Interest
Account, and are, as of the Closing Date, in the Principal and
Interest Account;
(x) the Company has complied, and has ensured that the
Originators have complied, with all the agreements and satisfied, and
has ensured that the Originators have satisfied, all the conditions on
its, and the Originators', part to be performed or satisfied in
connection with the issuance, sale and delivery of the Loans and the
Certificates;
(xi) all statements contained in the Prospectus with respect
to the Company and the Originators are true and accurate in all
material respects and nothing has come to such officer's attention
that would lead such officer to believe that the Prospectus contains
any untrue statement of a material fact or omits to state any material
fact;
(xii) each Mortgage assignment will be prepared based on
forms recently utilized by the Company with respect to mortgaged
properties located in the appropriate jurisdiction and used in the
regular course of the Company's business. Based on the Company's
experience with such matters, the Company reasonably believes that
upon execution each such assignment will be in recordable form and
will be sufficient to effect the assignment of the Mortgage to which
it relates as provided in the Pooling and Servicing Agreement; and
(xiii) the weighted average lives of the Offered
Certificates, in each case using the applicable pricing speed and a
weighted average coupon (or, in the case of the Pool II Home Equity
Loans, the weighted average margin) and weighted average maturity
based upon the Loans actually delivered to the Trustee and the
Co-Trustee, will not vary by more than 1/10th of one year from the
number of years set forth below:
CLASS YEARS CLASS YEARS
----- ----- ----- -----
AF-1 0.42 BV 6.15
AF-2 1.01 AH-1 1.17
AF-3 2.23 AH-2 3.00
AF-4 4.08 AH-3 5.00
AF-5 5.22 AH-4 10.32
AF-6 9.39 MH-1 7.57
AF-7 6.40 MH-2 7.55
AV-1 1.71 BH 7.47
AV-2 4.29 AMF 4.28
MV-1 7.42
MV-2 11.15
(i) At Closing Time, each Class of the Offered Certificates shall have been
rated as follows by Xxxxx'x, Standard & Poor's and Fitch:
RATING
CLASS S&P XXXXX'X FITCH
----- --- ------- -----
AF-1 AAA Aaa --
AF-2 AAA Aaa --
AF-3 AAA Aaa --
AF-4 AAA Aaa --
AF-5 AAA Aaa --
AF-6 AAA Aaa --
AF-7 AAA Aaa --
AV-1 AAA Aaa --
AV-2 AAA Aaa --
MV-1 AA Aa2 --
MV-2 A A2 --
BV BBB Baa2 --
AH-1 AAA -- AAA
AH-2 AAA -- AAA
AH-3 AAA -- AAA
AH-4 AAA -- AAA
MH-1 AA -- AA+
MH-2 A -- A
BH BBB -- BBB
AMF AAA Aaa --
(j) At Closing Time, counsel for the Underwriters shall have been furnished
with such documents and opinions as they may reasonably require for the purpose
of enabling them to pass upon the issuance and delivery of the Offered
Certificates as herein contemplated and related proceedings, or in order to
evidence the accuracy of any of the representations or warranties, or the
fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Company in connection with the issuance and sale of the Offered
Certificates as herein contemplated shall be satisfactory in form and substance
to the Representatives, as representatives of the Underwriters, and counsel for
the Underwriters.
(k) On or before the Closing Time the Company and the Originators shall
have delivered to the Trustee (or, with respect to the Pool III Home Improvement
Loans, the Co- Trustee), to hold in trust for the benefit of the holders of the
Certificates, Pool I and Pool II Home Equity Loans, Pool III Home Improvement
Loans and Pool IV Multifamily Loans (as defined in the Prospectus) with
aggregate outstanding principal balances as of the Cut-Off Date of at least
$594,000,000, $610,000,000, $162,000,000 and $8,000,000 respectively. The
Company and the Originators shall, immediately following the sale of the Offered
Certificates, cause to be deposited with the Trustee, for deposit in the
Pre-Funding Account (as defined in the Prospectus Supplement), cash in an amount
equal to the sum of (A) the excess of (i) the aggregate initial principal
balance of the Class AF-1, Class AF-2, Class AF-3, Class AF-4, Class AF-5, Class
AF-6 and Class AF-7 (I.E., $725,000,000) over (ii) the aggregate discounted
outstanding principal balances as of the Cut-Off Date of the Pool I Home Equity
Loans actually delivered to the Trustee, (B) the excess of (i) the aggregate
initial principal balance of the Class AV-1, Class AV-2, Class MV-1, Class MV-2
and Class BV Certificates (I.E., $650,000,000) over (ii) the aggregate
outstanding principal balances as of the Cut-Off Date of the Pool II Home Equity
Loans actually delivered to the Trustee, and (C) the excess of (i) the aggregate
initial principal balance of the Class AH-1, Class AH-2, Class AH-3, Class AH-4,
Class MH-1, Class MH-2 and Class BH Certificates (I.E., $200,000,000) over (ii)
the aggregate outstanding principal balances as of the Cut-Off Date of the Pool
III Home Improvement Loans actually delivered to the Trustee and the Co-Trustee,
and (D) the excess of (i) the aggregate initial principal balance of the Class
AMF Certificates (i.e. $10,000,000) over (ii) the aggregate outstanding
principal balances as of the Cut-Off Date of the Pool IV Multifamily Loans
actually delivered to the Trustee.
(l) On or before the Closing Time the Company shall have delivered to the
Representatives a Current Report on Form 8-K containing a detailed description
of the Loans actually being delivered to the Trustee and the Co-Trustee at
Closing Time, in form and substance satisfactory to the Representatives.
(m) On or before the Closing Time the Company shall have delivered to the
Representative confirmation from the Federal Housing Administration (the "FHA")
that the FHA insurance reserves relating to the FHA Loans have been or will be
transferred to the Co-Trustee.
If any condition specified in this Section shall not have been fulfilled
when and as required to be fulfilled, this Agreement may be terminated by the
Representatives, as representatives to the Underwriters, by notice to the
Company at any time at or prior to Closing time, and such termination shall be
without liability of any party to any other party except as provided in Section
4 hereof.
Section 6. INDEMNIFICATION.
(a) The Company and the Originators jointly and severally agree to
indemnify and hold harmless each of the Underwriters and each person, if any,
who controls each of the Underwriters within the meaning of Section 15 of the
1933 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 any
preliminary prospectus or 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 untrue statement or omission described in clause
(i) above, or any such alleged untrue statement or omission, if such
settlement is effected with the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred
(including, subject to Section 6(c) hereof, the reasonable fees and
disbursements of counsel chosen by such Underwriter), reasonably 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 untrue statement or
omission described in clause (i) above, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid
under (i) or (ii) above;
provided, however, that this indemnity agreement 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 in reliance
upon and in conformity with the information referred to in clauses (x), (y) and
(z) of the immediately following paragraph; provided, further, such indemnity
with respect to the Prospectus or any preliminary prospectus shall not inure to
the benefit of any Underwriter (or person controlling such Underwriter) from
whom the person suffering any such loss, claim, damage or liability purchased
the Offered Certificates which are the subject thereof if such person did not
receive a copy of the Prospectus at or prior to the confirmation of the sale of
such Offered Certificates to such person in any case where such delivery is
required by the 1933 Act and the untrue statement or omission of a material fact
contained in any preliminary prospectus was corrected in the Prospectus.
(b) Each Underwriter agrees to indemnify and hold harmless the Company and
the Originators, their directors, each of the Company's and Originator's
officers who signed the Registration Statement, and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act against
any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, contained in (x) the second sentence of the third paragraph on the
third page which is located on the inside cover (discussing the risk of a lack
of secondary trading) of the Prospectus, (y) the second paragraph under the
heading "Underwriting" in the Prospectus Supplement (or any amendment or
supplement thereto) and (z) any Computational Materials prepared by such
Underwriter, except to the extent of any errors in the Computational Materials
that are caused by errors in the pool information provided by the Company to the
applicable Underwriter. The parties hereto agree that no Underwriter shall be
under any liability to the Company, the Originators or any other person
identified in this paragraph (b) for Computational Materials prepared by any
other Underwriter.
(c) Promptly after receipt by an indemnified party under this Section 6 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 6, notify the indemnifying party in writing of the commencement thereof;
but the omission to so notify the indemnifying party will not relieve the
indemnifying party from any liability that it may have to any indemnified party
except to the extent that it has been prejudiced in any material respect by such
failure or from any liability that it may have otherwise than under this Section
6. 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 reasonably 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 or
parties shall have reasonably concluded that there may be legal defenses
available to it or them and/or other indemnified parties that 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 for any legal or
other expenses other than the reasonable costs of investigation subsequently
incurred 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, (ii) the
indemnifying party shall not have employed counsel reasonably 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). After such notice from the indemnifying party to
such indemnified party, the indemnifying party will not be liable for the costs
and expenses of any settlement of such action effected by such indemnified party
without the consent of the indemnifying party.
Section 7. CONTRIBUTION. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Section 6 hereof is for any reason held to be unenforceable by the indemnified
parties although applicable in accordance with its terms, the Company and the
Originators jointly and severally, on the one hand, and the Underwriters, on the
other hand, shall contribute to the aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by said indemnity agreement
incurred by the Company and the Originators jointly and severally, on the one
hand, and the Underwriters, on the other hand, as incurred, in such proportions
that each Underwriter is responsible for that portion represented by the
difference between the purchase price paid by such Underwriter allocated to the
principal amount of Offered Certificates set forth next to each Underwriter's
name on Annex B hereto and the price at which such Underwriter sold such Offered
Certificates to the public (or, with respect to Computational Materials
furnished by an Underwriter (except to the extent of any errors in the
Computational Materials that are caused by errors in the pool information
provided by the Company to the applicable Underwriter), the excess of the
principal amount of Offered Certificates set forth next to such Underwriter's
name on Annex B hereto over the difference between the purchase price paid by
such Underwriter for such Offered Certificates and the price at which such
Offered Certificates were sold to the public), and the Company and the
Originators shall be responsible for the balance; provided, however, that no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. Notwithstanding the provisions
of this Section 7, no Underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the Offered Certificates
set forth next to the name of such Underwriter on Annex B hereto were offered to
the public exceeds the amount of any damages such Underwriter has otherwise been
required to pay in respect of such losses, liabilities, claims, damages and
expenses. For purposes of this Section 7, each person, if any, who controls any
Underwriter within the meaning of Section 15 of the 1933 Act shall have the same
rights to contribution as such Underwriter and each respective director of the
Company and the Originators, each officer of the Company and the Originators who
signed the Registration Statement, and each respective person, if any, who
controls the Company and the Originators within the meaning of Section 15 of the
1933 Act shall have the same rights to contribution as the Company and the
Originators.
Section 8. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY.
All representations, warranties and agreements contained in this Agreement and
the Pricing Agreement, or contained in certificates of officers of the Company
and the Originators submitted pursuant hereto, shall remain operative and in
full force and effect, regardless of any investigation made by or on behalf of
any of the Underwriters or any controlling person thereof, or by or on behalf of
the Company and the Originators, and shall survive delivery of the Offered
Certificates to the Underwriter.
Section 9. TERMINATION OF AGREEMENT.
(a) The Representatives, as representatives of the Underwriters, may
terminate this Agreement, by notice to the Company and the Originators, at any
time at or prior to Closing Time (i) if there has been, since the time of
execution of this Agreement or since the respective dates as of which
information is given in the Registration Statement or Prospectus, any change, or
any development involving a prospective change, in or affecting particularly the
business or properties of the Company and the Originators considered as one
entity or MBIA which, in the reasonable judgment of the Representatives, as
representatives of the Underwriters, materially impairs the investment quality
of any of the Offered Certificates; (ii) if there has occurred any downgrading
in the rating of the debt securities of MBIA by any "nationally recognized
statistical rating organization" (as defined for purposes of Rule 436(g) under
the 1933 Act) which, in the reasonable judgment of the Representatives, as
representatives of the Underwriters, materially impairs the investment quality
or marketability of any of the Offered Certificates or if any debt security of
MBIA has been put on the "watch list" of any such rating organization with
negative implications; (iii) if there has occurred any suspension or limitation
of trading in securities generally on the New York Stock Exchange, or any
setting of minimum prices for trading on such exchange or by any governmental
authority; (iv) if any banking moratorium has been declared by Federal or New
York authorities; or (v) if there has occurred any outbreak or escalation of
major hostilities in which the United States of America is involved, any
declaration of war by Congress, or any other substantial national or
international calamity or emergency if, in the judgment of the Representatives,
as representatives of the Underwriter, the effects of any such outbreak,
escalation, declaration, calamity, or emergency makes it impractical or
inadvisable to proceed with completion of the sale of and payment for the
Offered Certificates.
(b) If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as
provided in Section 4 hereof.
Section 10. DEFAULT BY ONE OF THE UNDERWRITERS. If any of the Underwriters
shall fail at Closing Time to purchase the Offered Certificates which it is
obligated to purchase hereunder (the "Defaulted Certificates"), the remaining
Underwriters (the "Non-Defaulting Underwriters") shall have the right, but not
the obligation, within one (1) Business Day thereafter, to make arrangements to
purchase all, but not less than all, of the Defaulted Certificates upon the
terms herein set forth; if, however, the Non-Defaulting Underwriters shall have
not completed such arrangements within such one (1) Business Day period, then
this Agreement shall terminate without liability on the part of the
Non-Defaulting Underwriters.
No action taken pursuant to this Section 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, either the Non-Defaulting Underwriters or the Company shall have
the right to postpone Closing Time for a period not exceeding seven days in
order to effect any required changes in the Registration Statement or Prospectus
or in any other documents or arrangements.
Section 11. COMPUTATIONAL MATERIALS. (a) It is understood that any
Underwriter may prepare and provide to prospective investors certain
Computational Materials (as defined below) in connection with the Company's
offering of the Offered Certificates, subject to the following conditions:
(i) Each Underwriter shall comply with all applicable laws and
regulations in connection with the use of Computational Materials including
the No- Action Letter of May 20, 1994 issued by the Commission to Xxxxxx,
Xxxxxxx Acceptance Corporation I, Xxxxxx, Xxxxxxx & Co. Incorporated and
Xxxxxx Structured Asset Corporation, as made applicable to other issuers
and underwriters by the Commission in response to the request of the Public
Securities Association dated May 24, 1994, and the No-Action Letter of
February 17, 1995 issued by the Commission to the Public Securities
Association (collectively, the "Xxxxxx/PSA Letters").
(ii) As used herein, "Computational Materials" and the term "ABS
Term Sheets" shall have the meanings given such terms in the Xxxxxx/PSA
Letters, but shall
include only those Computational Materials that have been
prepared or delivered to prospective investors by or at the direction of an
Underwriter.
(iii) Each Underwriter shall provide the Company with
representative forms of all Computational Materials prior to their first
use, to the extent such forms have not previously been approved by the
Company for use by such Underwriter. The Underwriter shall provide to the
Company, for filing on Form 8-K as provided in Section 11(b), copies of all
Computational Materials that are to be filed with the Commission pursuant
to the Xxxxxx/PSA Letters. The Underwriter may provide copies of the
foregoing in a consolidated or aggregated form. All Computational Materials
described in this subsection (a)(iii) must be provided to the Company not
later than 10:00 a.m. New York time one business day before filing thereof
is required pursuant to the terms of this Agreement.
(iv) If an Underwriter does not provide any Computational
Materials to the Company pursuant to subsection (a)(iii) above, such
Underwriter shall be deemed to have represented, as of the Closing Date,
that it did not provide any prospective investors with any information in
written or electronic form in connection with the offering of the
Certificates that is required to be filed with the Commission in accordance
with the Xxxxxx/PSA Letters.
(v) In the event of any delay in the delivery by any Underwriter
to the Company of all Computational Materials required to be delivered in
accordance with subsection (a)(iii) above, the Company shall have the right
to delay the release of the Prospectus to investors or to any Underwriter,
to delay the Closing Date and to take other appropriate actions in each
case as necessary in order to allow the Company to comply with its
agreement set forth in Section 11(b) to file the Computational Materials by
the time specified therein.
(vi) The Company shall file the Computational Materials (if any)
provided to it by each Underwriter under Section 11(a)(iii) with the
Commission pursuant to a Current Report on Form 8-K no later than 10:00
a.m. on the date required pursuant to the Xxxxxx/PSA Letters.
Section 12. NOTICES. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the
Underwriters shall be directed to Xxxxxx, as representative of the Underwriters,
0000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: ABS Structuring (Fax:
000-000-0000); Prudential, as representative of the Underwriters, One New York
Plaza, New York, New York 10292, Attention: Syndicate Department (Fax:
000-000-0000); Xxxxxxx, as representative of the Underwriters, 0 Xxxxx Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Asset Backed Finance (Fax:
000-000-0000), Xxxxx Xxxxxx, as representative of the Underwriters, 000
Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Asset Backed Finance,
Xxxxxxx, as representative of the Underwriters, World Financial Center, North
Tower, 10th Floor, New York, New York 10281-1310, Attention: ABS/MBS (Fax:
212-449- 9015); Lehman, as representative of the Underwriters, Three World
Financial Center, New York, New York 10285, Attention: Asset Backed Securities
(Fax: 000-000-0000); Nomura, as representative of the Underwriters, 2 World
Financial Center, Building B, New York, New York 10281, Attention: Structured
Finance Group (Fax: 000-000-0000); and notices to the Company or any Originator
shall be directed to it at 0000 Xxxxxx Xxxxxx, Xxxxx, Xxx Xxxxxx 00000,
Attention: Executive Vice President (Fax: 000-000-0000).
Section 13. PARTIES. This Agreement and the Pricing Agreement shall each
inure to the benefit of and be binding upon the Underwriters, the Company, the
Originators and their respective successors. Nothing expressed or mentioned in
this Agreement or the Pricing Agreement is intended or shall be construed to
give any person, firm or corporation, other than the Underwriters, the Company,
the Originators and their respective successors and the controlling persons and
officers and directors referred to in Section 6 and 7 hereof and their heirs and
legal representatives, any legal or equitable right, remedy or claim under or
with respect to this Agreement or the Pricing Agreement or any provision herein
or therein contained. This Agreement and the Pricing Agreement and all
conditions and provisions hereof and thereof are intended to be for the sole and
exclusive benefit of the Underwriters, the Company, the Originators and their
respective successors, and said controlling persons and officers and directors
and their heirs and legal representatives, and for the benefit of no other
person, firm or corporation. No purchaser of Offered Certificates from the
Underwriters shall be deemed to be a successor by reason merely of such
purchase. The Company and the Originators shall be jointly and severally liable
for all obligations incurred under this Agreement and the Pricing Agreement.
Section 14. GOVERNING LAW AND TIME. This Agreement and the Pricing
Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to agreements made and to be performed in said
State. Unless otherwise set forth herein, specified times of day refer to New
York time.
Section 15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among
each of the Underwriters and the Company in accordance with its terms.
Very truly yours,
THE MONEY STORE INC.
By: /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Executive Vice President
THE ORIGINATORS LISTED ON
ANNEX A HERETO
By: /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Senior Vice President
CONFIRMED AND ACCEPTED, as of
the date first above written:
XXXXXX XXXXXXX & CO. INCORPORATED
By: /s/ Xxxxxxx X. Xxx
Name: Xxxxxxx X. Xxx
Title: Vice President
PRUDENTIAL SECURITIES INCORPORATED
By: /s/ Xxxxxxx Xxxxx
Name: Xxxxxxx Xxxxx
Title: Vice President
SALOMON BROTHERS INC
By: /s/ Xxxxxx Xxxxxx
Name: Xxxxxx Xxxxxx
Title: Managing Director
XXXXX XXXXXX INC.
By: /s/ Xxxxxxx Xxxxx
Name: Xxxxxxx Xxxxx
Title: Director
XXXXXXX LYNCH, XXXXXX, XXXXXX
& XXXXX INCORPORATED
By: /s/ Xxxxxx XxXxxx
Name: Xxxxxx XxXxxx
Title: Director
XXXXXX BROTHERS INC.
By: /s/ Xxxxxxx X. Xxxxxxx
Name: Xxxxxxx X. Xxxxxxx
Title: Managing Director
NOMURA SECURITIES INTERNATIONAL, INC.
By: /s/ Xxxxxxxxxx X. Xxxxx
Name: Xxxxxxxxxx X. Xxxxx
Title: Vice President
Acting on behalf of themselves
and as the representatives of
the Underwriters.
ANNEX A
THE ORIGINATORS
The Money Store/Minnesota Inc.
The Money Store/D.C. Inc.
The Money Store/Kentucky Inc.
The Money Store Home Equity Corp.
TMS Mortgage Inc.
ANNEX B
XXXXXXX
FIRST XXXXX,
XXXXXXX CHICAGO- XXXXXX, XXXXXX
XXXXXX PRUDENTIAL CAPITAL XXXXXX XXXXXXX XXXXX XXXXXX SECURITIES
& CO. SECURITIES MARKETS, & XXXXX BROTHERS XXXXXX XXXXXXXX INTERNATIONAL
INCORPORATED INCORPORATED INC. INCORPORATED INC. INC. INC. INC. TOTAL
Class
AF-1 $47,000,000 $67,000,000 $8,000,000 $0 $0 $0 $0 $0 $122,000,000
Class AF-2 $31,500,000 $46,500,000 $10,000,000 $0 $0 $0 $0 $0 $88,000,000
Class AF-3 $119,500,000 $119,500,000 $10,000,000 $0 $0 $0 $0 $0 $249,000,000
Class AF-4 $26,500,000 $36,500,000 $5,000,000 $0 $0 $0 $0 $0 $68,000,000
Class AF-5 $13,500,000 $23,500,000 $0 $0 $0 $0 $0 $0 $37,000,000
Class AF-6 $76,000,000 $0 $0 $0 $0 $0 $0 $0 $76,000,000
Class AF-7 $26,500,000 $48,000,000 $10,500,000 $0 $0 $0 $0 $0 $85,000,000
Class AV-1 $0 $0 $0 $466,750,000 $0 $0 $0 $0 $466,750,000
Class AV-2 $0 $0 $0 $0 $76,000,000 $0 $0 $0 $76,000,000
Class MV-1 $0 $0 $0 $0 $0 $37,375,000 $0 $0 $37,375,000
Class MV-2 $0 $0 $0 $0 $0 $37,375,000 $0 $0 $37,375,000
Class BV $0 $0 $0 $0 $0 $32,500,000 $0 $0 $32,500,000
Class AH-1 $0 $0 $0 $0 $0 $0 $84,571,000 $0 $84,571,000
Class AH-2 $0 $0 $0 $0 $0 $0 $28,024,000 $0 $28,024,000
Class AH-3 $0 $0 $0 $0 $0 $0 $19,947,000 $0 $19,947,000
Class AH-4 $0 $0 $0 $0 $0 $0 $20,457,000 $0 $20,457,000
Class MH-1 $0 $0 $0 $0 $0 $0 $13,500,000 $0 $13,500,000
Class MH-2 $0 $0 $0 $0 $0 $0 $15,000,000 $0 $15,000,000
Class BH $0 $0 $0 $0 $0 $0 $18,501,000 $0 $18,501,000
Class AMF $0 $0 $0 $0 $0 $0 $0 $10,000,000 $10,000,000
Total $340,500,000 $341,000,000 $43,500,000 $466,750,000 $76,000,000 $107,250,000 $200,000,000 $10,000,000 $1,585,000,000
