Exhibit 1.1
FIRST HORIZON ASSET SECURITIES INC.
MORTGAGE PASS-THROUGH CERTIFICATES
(Issuable in Series)
UNDERWRITING AGREEMENT
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Banc of America Securities LLC Charlotte, North Carolina
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ May 23, 2002
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
First Horizon Asset Securities Inc., a corporation organized and existing
under the laws of the State of Delaware (the "Company"), may offer for sale to
you and to each of the other several underwriters, if any, participating in an
underwriting syndicate managed by you, from time to time its Mortgage
Pass-Through Certificates evidencing interests in pools of mortgage loans (the
"Certificates"). The Certificates may be issued in various series, and within
each series, in one or more classes, in one or more offerings on terms
determined at the time of sale (each such series, a "Series" and each such
class, a "Class"). Each Series of the Certificates will be issued under a
separate Pooling and Servicing Agreement (each, a "Pooling and Servicing
Agreement") to be dated as of the respective cut-off date (each, a "Cut-off
Date") by and among the Company, as depositor, First Horizon Home Loan
Corporation, as seller and master servicer, and The Bank of New York, as trustee
(the "Trustee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the related Pooling and Servicing Agreement.
The Certificates issued under each Pooling and Servicing Agreement will
represent the entire beneficial ownership interest in a trust fund (the "Trust
Fund") established by such Pooling and Servicing Agreement. The assets of each
Trust Fund will consist primarily of (i) one or more pools of conventional,
fixed rate, first lien, fully amortizing, one- to four-family residential
mortgage loans (the "Mortgage Loans") having the original terms to maturity
specified in the related Terms Agreement referred to hereinbelow, (ii) mortgage
pass-through securities issued or guaranteed by ▇▇▇▇▇▇ Mae, ▇▇▇▇▇▇ ▇▇▇ or
▇▇▇▇▇▇▇ Mac, or (iii) private mortgage-backed securities backed by first lien
mortgage loans secured by one- to four-family residential properties or
participations therein. If so specified in the related Terms Agreement, one or
more elections may be made to treat the assets of each Trust Fund as a real
estate mortgage investment conduit (each, a "REMIC") for federal income tax
purposes.
Whenever the Company determines to make an offering of Certificates (each,
a "Certificate Offering") pursuant to this Agreement through you, it will enter
into an agreement (the "Terms Agreement") providing for the sale of specified
Classes of Offered Certificates (as defined below) to, and the purchase and
public offering thereof by, you and such other underwriters, if any, selected by
you as have authorized you to enter into such Terms Agreement on their behalf
(the underwriters in any such Terms Agreement being referred to herein as
"Underwriters," which term shall include you whether acting alone in the sale of
any Series of
Certificates or as a member of the underwriting syndicate). Each such
Certificate Offering which the Company elects to make pursuant to this Agreement
shall be governed by this Agreement, as supplemented by the related Terms
Agreement. Each Terms Agreement, which shall be substantially in the form of
Exhibit A hereto, shall specify, among other things, the Classes of Certificates
to be purchased by the Underwriters (the "Offered Certificates"), the names of
the Underwriters participating in such offering (subject to substitution as
provided in Section 16 hereof) and the principal amount of the Offered
Certificates which each severally agrees to purchase, the names of such other
Underwriters, if any, acting as co-managers with you in connection with each
offering, the principal balance or balances of the Offered Certificates, each
subject to any stated variance, and the price or prices at which such Offered
Certificates are to be purchased by the Underwriters from the Company.
1. Representations and Warranties. The Company represents and warrants to
and agrees with each Underwriter, as of the date of the related Terms Agreement,
that:
(a) The registration statement specified in the related Terms
Agreement, on Form S-3, including a prospectus, has been filed with the
Securities and Exchange Commission (the "Commission") for registration
under the Securities Act of 1933, as amended (the "Act"), of mortgage
pass-through certificates issuable in series, which registration statement
has been declared effective by the Commission. Such registration statement,
as amended to the date of the related Terms Agreement, including any
documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the Act which were filed under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), on or before the effective date of the
Registration Statement, is hereinafter called the "Registration Statement",
and such prospectus, as such prospectus is supplemented by a prospectus
supplement relating to the Offered Certificates of the related Series, each
in the form first filed after the date of the related Terms Agreement
pursuant to Rule 424(b) under the Act, including any documents incorporated
by reference therein pursuant to Item 12 of Form S-3 under the Act which
were filed under the Exchange Act on or before the date of such prospectus
supplement (other than any such incorporated documents that relate to
Collateral Term Sheets (as defined herein))(such prospectus supplement,
including such incorporated documents (other than those that relate to
Collateral Term Sheets), in the form first filed after the date of the
related Terms Agreement pursuant to Rule 424(b) is hereinafter called the
"Prospectus Supplement"), is hereinafter called the "Prospectus". Any
reference herein to the terms "amend", "amendment" or "supplement" with
respect to the Registration Statement, the Prospectus or the Prospectus
Supplement shall be deemed to refer to and include the filing of any
document under the Exchange Act after the effective date of the
Registration Statement or the issue date of the Prospectus or Prospectus
Supplement, as the case may be, and shall be deemed to be incorporated
therein by reference pursuant to Item 12 of Form S-3 under the Act.
(b) The related Registration Statement, at the time it became
effective, and the Prospectus contained therein, and any amendments thereof
and supplements thereto filed prior to the date of the related Terms
Agreement, conformed in all material respects to the requirements of the
Act and the rules and regulations of the Commission thereunder;
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on the date of the related Terms Agreement and on each Closing Date (as
defined in Section 3 below), the related Registration Statement and the
related Prospectus, and any amendments thereof and supplements thereto,
will conform in all material respects to the requirements of the Act and
the rules and regulations of the Commission thereunder; such Registration
Statement, at the time it became effective, did not contain any untrue
statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not
misleading; such Prospectus, on the date of any filing pursuant to Rule
424(b) and on each Closing Date, will not include any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they are
made, not misleading; and the detailed description (each, a "Detailed
Description") filed in connection with any pre-funding arrangement referred
to in such Prospectus, on each closing date relating to the purchase of the
related Subsequent Mortgage Loans and the date of any filing thereof under
cover of Form 8-K, will not include any untrue statement of a material fact
or omit to state any information which such Prospectus states will be
included in such Detailed Description; provided, however, that the Company
makes no representations or warranties as to the information contained in
or omitted from (A) such Registration Statement or such Prospectus (or any
supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter
specifically for use in the preparation thereof or (B) any Current Report
(as defined in Section 5(b) below), or in any amendment thereof or
supplement thereto, incorporated by reference in such Registration
Statement or such Prospectus (or any amendment thereof or supplement
thereto), unless provided by the Company.
(c) The Certificates of the related Series will conform to the
description thereof contained in the related Prospectus; will each, if
rated at the time of issuance in one of the two highest rating categories
by a nationally recognized statistical rating organization, be when issued
a "mortgage related security" as such term is defined in Section 3(a)(41)
of the Exchange Act, and will each on the related Closing Date be duly and
validly authorized, and, when validly executed, countersigned, issued and
delivered in accordance with the related Pooling and Servicing Agreement
and sold to the Underwriters as provided herein and in the related Terms
Agreement, will each be validly issued and outstanding and entitled to the
benefits of the related Pooling and Servicing Agreement.
(d) Neither the issuance nor sale of the Certificates of the related
Series nor the consummation of any other of the transactions herein
contemplated, nor the fulfillment of the terms hereof or of the related
Terms Agreement, will conflict with any statute, order or regulation
applicable to the Company of any court, regulatory body, administrative
agency or governmental body having jurisdiction over the Company or with
any organizational document of the Company or any instrument or any
agreement under which the Company is bound or to which it is a party.
(e) This Agreement and the related Terms Agreement have been duly
authorized, executed and delivered by the Company.
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(f) At or prior to the related Closing Date, the Company will have
entered into the related Pooling and Servicing Agreement and, assuming the
due authorization, execution and delivery thereof by the other parties
thereto, such Pooling and Servicing Agreement (on such Closing Date) will
constitute the valid and binding agreement of the Company enforceable in
accordance with its terms, subject as to enforceability, to bankruptcy,
insolvency, reorganization or other similar laws affecting creditors'
rights and to general principles of equity (regardless of whether the
enforceability of such Pooling and Servicing Agreement is considered in a
proceeding in equity or at law).
2. Purchase and Sale. Subject to the execution of the Terms Agreement for
a particular Certificate Offering and subject to the terms and conditions and in
reliance upon the representations and warranties set forth in this Agreement and
such Terms Agreement, the Company agrees to sell to each Underwriter, severally
and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Company, the respective original principal amounts of the
Offered Certificates set forth in the applicable Terms Agreement opposite the
name of such Underwriter, plus any additional original principal amount of
Offered Certificates which such Underwriter may be obligated to purchase
pursuant to Section 16 hereof at the purchase price therefor set forth in such
Terms Agreement (the "Purchase Price").
The parties hereto agree that settlement for all securities sold pursuant
to this Agreement and the applicable Terms Agreement shall take place on the
settlement date agreed upon at the time of the related transaction and set forth
as the "Closing Date" in such Terms Agreement and not as set forth in Rule
15c6-l(a) of the Exchange Act.
3. Delivery and Payment. Delivery of and payment for the Offered
Certificates of a Series shall be made at the offices of ▇▇▇▇▇▇▇ & ▇▇▇▇▇ L.L.P.,
Dallas, Texas, at 10:00 A.M., Dallas time, on the Closing Date specified in the
related Terms Agreement, which date and time may be postponed by agreement
between you and the Company (such date and time being herein called the "Closing
Date"). Delivery of such Offered Certificates shall be made to you for the
respective accounts of the Underwriters against payment of the Purchase Price
thereof to or upon the order of the Company by wire transfer in federal or other
immediately available funds or by check payable in federal funds, as the Company
shall specify no later than five full business days prior to such Closing Date.
Unless delivery is made through the facilities of The Depository Trust Company,
the Offered Certificates shall be registered in such names and in such
authorized denominations as you may request not less than two full business days
in advance of each Closing Date.
The Company agrees to notify you at least two business days before each
Closing Date of the exact principal balance evidenced by the Offered
Certificates and to have such Offered Certificates available for inspection,
checking and packaging in Dallas, Texas, no later than 12:00 noon on the
business day prior to such Closing Date.
4. Offering by the Underwriter. It is understood that the Underwriters
propose to offer the Offered Certificates of the related Series for sale to the
public as set forth in the related Prospectus.
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5. Agreements. The Company agrees with each Underwriter that:
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(a) The Company will cause the Prospectus as supplemented by a
Prospectus Supplement relating to the Offered Certificates to be filed
pursuant to Rule 424 under the Act and will promptly advise you when such
Prospectus as so supplemented has been so filed, and prior to the
termination of the Certificate Offering to which such Prospectus relates
also will promptly advise you (i) when any amendment to the related
Registration Statement specifically relating to such Offered Certificates
shall have become effective or any further supplement to such Prospectus
has been filed, (ii) of any request by the Commission for any amendment of
such Registration Statement or Prospectus or for any additional
information, (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of such Registration Statement or the
institution or threatening of any proceeding for that purpose and (iv) of
the receipt by the Company of any written notification with respect to the
suspension of the qualification of such Offered Certificates for sale in
any jurisdiction or the initiation or threatening of any proceeding for
such purpose. The Company will not file any amendment of the related
Registration Statement or supplement to the related Prospectus (other than
any amendment or supplement specifically relating to one or more Series of
mortgage pass-through certificates other than the Series that includes the
related Offered Certificates or any Exchange Act filings other than Current
Reports) unless the Company has furnished you and your counsel with a copy
for your respective review prior to filing and you have consented to such
filing. The Company will use its best efforts to prevent the issuance of
any such stop order and, if issued, to obtain as soon as possible the
withdrawal thereof.
(b) The Company will cause any Computational Materials and any
Structural Term Sheets (each as defined in Section 8 below) with respect to
the Offered Certificates of a Series that are delivered by any Underwriter
to the Company pursuant to Section 8 to be filed with the Commission on a
Current Report on Form 8-K (each such filing of such materials, a "Current
Report") pursuant to Rule 13a-l 1 under the Exchange Act on the business
day immediately following the later of (i) the day on which such
Computational Materials and Structural Term Sheets are delivered to counsel
for the Company by such Underwriter, and (ii) the date on which this
Agreement is executed and delivered. The Company will cause any Collateral
Term Sheet (as defined in Section 9 below) with respect to the Offered
Certificates of a Series that is delivered by any Underwriter to the
Company in accordance with the provisions of Section 9 to be filed with the
Commission on a Current Report pursuant to Rule 13a-l 1 under the Exchange
Act on the business day immediately following the day on which such
Collateral Term Sheet is delivered to counsel for the Company by such
Underwriter. Each such Current Report shall be incorporated by reference in
the related Prospectus and the related Registration Statement.
(c) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, any
event occurs as a result of which the related Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein in
light of the circumstances under which they were made not misleading, or if
it
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shall be necessary at any time to amend or supplement the related
Prospectus to comply with the Act or the rules thereunder, the Company
promptly shall prepare and file with the Commission, subject to the
penultimate sentence of paragraph (a) of this Section 5, an amendment or
supplement which will correct such statement or omission or an amendment
which will effect such compliance.
(d) The Company will furnish to each Underwriter and counsel for the
Underwriters, without charge, as many signed copies of the related
Registration Statement (including exhibits thereto) and, so long as
delivery of a prospectus by such Underwriter or dealer may be required by
the Act, as many copies of the related Prospectus and any supplements
thereto as such Underwriter may reasonably request.
(e) The Company will furnish such information, execute such
instruments and take such actions as may be reasonably requested by you to
qualify the Offered Certificates of a Series for sale under the laws of
such jurisdictions as the Underwriter may designate, to maintain such
qualifications in effect so long as required for the distribution of such
Offered Certificates and to determine the legality of such Offered
Certificates for purchase by institutional investors; provided, however,
that the Company shall not be required to qualify to do business in any
jurisdiction where it is not qualified on the date of the related Terms
Agreement or to take any action which would subject it to general or
unlimited service of process in any jurisdiction in which it is not, on the
date of the related Terms Agreement, subject to such service of process.
(f) So long as the Offered Certificates of a Series are outstanding,
the Company will furnish to each Underwriter, upon request, copies of the
annual independent public accountants' servicing report furnished to the
Trustee pursuant to the related Pooling and Servicing Agreement.
(g) Unless otherwise specified in the related Terms Agreement, the
Company will pay, and First Horizon Home Loan Corporation will cause the
Company to pay, all expenses incident to the performance of the Company's
obligations under this Agreement and the applicable Terms Agreement (other
than the expenses of Deloitte & Touche LLP under Sections 8(c) and 9(c)
hereof, the Underwriters' due diligence expenses, the Underwriters' counsel
fees and the Underwriters' own expenses, which will be paid by the
Underwriters), including and without limitation those related to: (i) the
filing of the Registration Statement with respect to the Certificates and
all amendments thereto, (ii) the printing or photocopying and delivery to
the Underwriters, in such quantities as you may reasonably request, of
copies of this Agreement and the Terms Agreement, (iii) the preparation,
registration, issuance and delivery to the Underwriters of the Certificates
underwritten pursuant to this Agreement, (iv) the fees and disbursements of
the Company's counsel and accountants, and of any counsel rendering a
closing opinion with respect to matters of local law, (v) the qualification
of the Certificates underwritten pursuant to this Agreement under
securities and blue sky laws and the determination of the eligibility of
the Certificates for investment, including filing fees in connection
therewith, (vi) the printing and delivery to the Underwriters, in such
quantities as they may reasonably request, of copies of the Registration
Statement
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with respect to the Certificates underwritten pursuant to this Agreement
and all amendments thereto, of any preliminary prospectus and preliminary
prospectus supplement and of the Final Prospectus and all amendments and
supplements thereto and all documents incorporated therein (other than
exhibits to any Current Report), and of any blue sky survey and legal
investment survey, (vii) the printing or photocopying and delivery to the
Underwriters, in such quantities as you may reasonably request, of copies
of the applicable Pooling and Servicing Agreement, (viii) the fees charged
by investment rating agencies requested by the Company to rate the
Certificates underwritten pursuant to this Agreement, (ix) the fees and
expenses, if any, incurred in connection with the listing of the
Certificates underwritten pursuant to this Agreement on any national
securities exchange, and (x) the fees and expenses of the Trustee and its
counsel.
6. Conditions to the Obligations of the Underwriters. The obligations of
the Underwriters to purchase the Offered Certificates of any Series shall be
subject to the accuracy in all material respects of the representations and
warranties on the part of the Company contained in this Agreement, as
supplemented by the related Terms Agreement, as of the respective dates thereof
and the related Closing Date, to the accuracy of the statements of the Company
made in any applicable officers' certificates pursuant to the provisions hereof
to the performance by the Company of its obligations under this Agreement and
such Terms Agreement and to the following additional conditions applicable to
the related Certificate Offering:
(a) No stop order suspending the effectiveness of the related
Registration Statement shall have been issued and no proceedings for that
purpose shall have been instituted or threatened.
(b) ▇▇▇▇▇▇▇ & ▇▇▇▇▇ L.L.P., counsel for the Company, shall have
furnished to you an opinion addressed to the Underwriters, dated the
related Closing Date, to the effect that:
(i) this Agreement and the related Terms Agreement have been
duly executed and delivered by the Company under the laws of the State
of New York;
(ii) the related Pooling and Servicing Agreement has been duly
executed and delivered by the Company under the laws of the State of
New York and is a legal, valid and binding agreement of the Company
enforceable against the Company in accordance with its terms;
(iii) the Offered Certificates, when duly executed and
countersigned by the Trustee in accordance with the related Pooling
and Servicing Agreement, will be validly issued and outstanding and
entitled to the benefits of such Pooling and Servicing Agreement;
(iv) the related Pooling and Servicing Agreement is not
required to be qualified under the Trust Indenture Act of 1939, as
amended, and the trust created thereunder is not required to be
registered under the Investment Company
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Act of 1940, as amended;
(v) such counsel confirms that the related Registration
Statement is effective under the Act and, to the best of such
counsel's knowledge, no stop order with respect thereto has been
issued, and no proceeding for that purpose has been instituted or
threatened by the Commission; such Registration Statement (except the
financial statements and schedules and other financial and statistical
data included therein and the documents incorporated by reference
therein, as to which such counsel need express no view), at the time
it became effective and the related Prospectus (except the financial
statements and schedules, the other financial and statistical data
included therein and the documents incorporated by reference therein),
as of the date of the Prospectus Supplement conformed in all material
respects to the requirements of the Act and the rules and regulations
thereunder; and no information has come to the attention of such
counsel that causes it to believe that (A) such Registration Statement
(except the financial statements and schedules and the other financial
and statistical data included therein and the documents incorporated
by reference therein, as to which such counsel need express no view)
at 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 (B) such Prospectus or any amendment or supplement
thereto (except the financial statements and schedules and the other
financial and statistical data included therein), as of the date of
the Prospectus Supplement, or at the related Closing Date, contained
or contains an untrue statement of a material fact or omitted or omits
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;
(vi) the statements set forth under the heading "Description
of the Certificates" in the related Prospectus, insofar as such
statements purport to summarize certain provisions of the related
Pooling and Servicing Agreement and the related Offered Certificates,
provide a fair summary of such provisions;
(vii) the statements set forth in the related Prospectus under
the headings "Certain Legal Aspects of the Mortgage Loans", "Material
Federal Income Tax Consequences" (insofar as they relate specifically
to the purchase, ownership and disposition of the related Offered
Certificates) and "ERISA Considerations" (insofar as they relate
specifically to the purchase, ownership and disposition of such
Offered Certificates), to the extent that they constitute matters of
law or legal conclusions, provide a fair summary of such law or
conclusions;
(viii) assuming compliance with all provisions of the related
Pooling and Servicing Agreement, for federal income tax purposes, (A)
if any election is made to treat the assets of the Trust Fund as a
REMIC: the related Trust Fund (and any specified subgrouping therein)
will qualify as a REMIC pursuant to Section 860D of the Internal
Revenue Code of 1986, as amended (the "Code"),
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each Class of Certificates of the related Series, other than the
related Residual Class or Classes, will constitute a class of "regular
interests" in the related REMIC within the meaning of the Code, and
each Class of such Certificates specified in the related Prospectus as
a Class of Residual Certificates will constitute the "residual
interest" in the related REMIC within the meaning of the Code; (B) if
no such REMIC election is made: the Trust Fund will be treated as a
"grantor trust"; and
(ix) assuming that some or all of the Offered Certificates of
the related Series shall be rated at the time of issuance in one of
the two highest rating categories by a nationally recognized
statistical rating organization, each Offered Certificate so rated
will be at the time of issuance, a "mortgage related security" as such
term is defined in Section 3(a)(41) of the Exchange Act.
Such opinion may express its reliance as to factual matters on the
representations and warranties made by, and on certificates or other
documents furnished by, officers of the parties to this Agreement, the
related Terms Agreement or the related Pooling and Servicing Agreement.
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 Company. Such opinion may be qualified, insofar as it
concerns the enforceability of the documents referred to therein, to the
extent that such enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of
creditors' rights in general and by general equity principles (regardless
of whether such enforcement is considered in a proceeding in equity or at
law). Such opinion may be further qualified as expressing no opinion as to
(x) the statements in the related Prospectus under the heading "Certain
Legal Aspects of the Mortgage Loans" except insofar as such statements
relate to the laws of the State of New York and the laws of the United
States, and (y) the statements in such Prospectus under the headings "ERISA
Considerations" and "Material Federal Income Tax Consequences" except
insofar as such statements relate to the laws of the United States. In
addition, such opinion may be qualified as an opinion only on the laws of
the States of New York and Texas and the federal laws of the United States
of America.
(c) ▇▇▇▇▇▇▇ & ▇▇▇▇▇, L.L.P., counsel for the Company, shall have
furnished to you an opinion addressed to the Underwriters, dated the
related Closing Date, to the effect that:
(i) The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the State
of Delaware, with corporate power to own its properties, to conduct
its business as described in the related Prospectus and to enter into
and perform its obligations under this Agreement, the related Terms
Agreement, the related Pooling and Servicing Agreement and the
Certificates of the related Series;
(ii) The Company has full power and authority to sell the
related Mortgage Loans as contemplated herein and in the related
Pooling and Servicing
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Agreement;
(iii) This Agreement, the related Terms Agreement and the
related Pooling and Servicing Agreement have been duly authorized,
executed and delivered by the Company under the laws of the State of
Delaware;
(iv) The issuance and sale of the Offered Certificates have
been duly authorized by the Company;
(v) No consent, approval, authorization or order of any court
or governmental agency or body is required for the consummation by the
Company of the transactions contemplated herein or in the related
Pooling and Servicing Agreement, except such as may be required under
the blue sky laws of any jurisdiction and such other approvals as have
been obtained;
(vi) Neither the issuance of the Certificates of the related
Series nor delivery of the related Offered Certificates, nor the
consummation of any other of the transactions contemplated in this
Agreement, the related Terms Agreement or the related Pooling and
Servicing Agreement, nor the fulfillment of the terms of the related
Certificates, the related Pooling and Servicing Agreement, this
Agreement or the related Terms Agreement will conflict with or violate
any term or provision of the articles of incorporation or by-laws of
the Company or any statute, order or regulation applicable to the
Company of any court, regulatory body, administrative agency or
governmental body having jurisdiction over the Company and will not
conflict with, result in a breach or violation or the acceleration of
or constitute a default under the terms of any indenture or other
agreement or instrument known to such counsel to which the Company is
a party or by which it is bound; and
(vii) There are no actions, proceedings or investigations
pending or, to the best knowledge of such counsel, threatened before
any court, administrative agency or other tribunal (i) asserting the
invalidity of this Agreement, the related Terms Agreement, the related
Pooling and Servicing Agreement or the related Certificates, (ii)
seeking to prevent the issuance of the Certificates of the related
Series or the consummation by the Company of any of the transactions
contemplated by this Agreement, such Terms Agreement or such Pooling
and Servicing Agreement, or (iii) which might materially and adversely
affect the performance by the Company of its obligations under, or the
validity or enforceability of, this Agreement, such Terms Agreement,
such Pooling and Servicing Agreement or the related Certificates.
In rendering his or her opinion such counsel may rely as to matters of
fact, to the extent deemed proper and as stated therein, on certificates of
responsible officers of the Company or public officials. In addition, such
opinion may be qualified as an opinion only on the general corporation laws
of the State of Delaware.
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(d) In-house counsel for First Horizon Home Loan Corporation
(or its ultimate parent) shall have furnished to you an opinion
addressed to the Underwriters, dated the related Closing Date, to the
effect that:
(i) First Horizon Home Loan Corporation has been
duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Kansas, with
corporate power to own its properties, to conduct its
business as described in the related Prospectus and to enter
into and perform its obligations under this Agreement, the
related Terms Agreement, the related Pooling and Servicing
Agreement and the Certificates of the related Series;
(ii) First Horizon Home Loan Corporation has full
power and authority to sell and master service the related
Mortgage Loans as contemplated herein and in the related
Pooling and Servicing Agreement;
(iii) This Agreement, the related Terms Agreement
and the related Pooling and Servicing Agreement have been
duly authorized, executed and delivered by First Horizon Home
Loan Corporation under the laws of the State of Kansas;
(iv) The issuance and sale of the Offered
Certificates have been duly authorized by First Horizon Home
Loan Corporation;
(v) No consent, approval, authorization or order
of any court or governmental agency or body is required for
the consummation by First Horizon Home Loan Corporation of
the transactions contemplated herein or in the related
Pooling and Servicing Agreement, except such as may be
required under the blue sky laws of any jurisdiction and such
other approvals as have been obtained;
(vi) Neither the issuance of the Certificates of
the related Series nor delivery of the related Offered
Certificates, nor the consummation of any other of the
transactions contemplated in this Agreement, the related
Terms Agreement or the related Pooling and Servicing
Agreement, nor the fulfillment of the terms of the related
Certificates, the related Pooling and Servicing Agreement,
this Agreement or the related Terms Agreement will conflict
with or violate any term or provision of the articles of
incorporation or by-laws of First Horizon Home Loan
Corporation or any statute, order or regulation applicable
to First Horizon Home Loan Corporation of any court,
regulatory body, administrative agency or governmental body
having jurisdiction over First Horizon Home Loan Corporation
and will not conflict with, result in a breach or violation
or the acceleration of or constitute a default under the
terms of any indenture or other agreement or instrument
known to such counsel to which First Horizon Home Loan
Corporation is a party or by which it is bound, other than
such conflicts, breaches and violations or defaults which,
individually or on a cumulative basis, would not have a
material adverse effect on First Horizon Home Loan
Corporation and its subsidiaries, taken as a whole, or on
the issuance and sale of
11
the Certificates or the consummation of the transactions
contemplated hereby; and
(vii) There are no actions, proceedings or investigations
pending or, to the best knowledge of such counsel, threatened
before any court, administrative agency or other tribunal (i)
asserting the invalidity of this Agreement, the related Terms
Agreement, the related Pooling and Servicing Agreement or the
related Certificates, (ii) seeking to prevent the issuance of
the Certificates of the related Series or the consummation by
First Horizon Home Loan Corporation of any of the
transactions contemplated by this Agreement, such Terms
Agreement or such Pooling and Servicing Agreement, or (iii)
which might materially and adversely affect the performance
by First Horizon Home Loan Corporation of its obligations
under, or the validity or enforceability of, this Agreement,
such Terms Agreement, such Pooling and Servicing Agreement or
the related Certificates.
In rendering his or her opinion such counsel may rely as to
matters of fact, to the extent deemed proper and as stated therein, on
certificates of responsible officers of First Horizon Home Loan
Corporation or public officials. In addition, such opinion may be
qualified as an opinion which is based solely upon a review of the
general corporation law of the State of Kansas without regard to the
interpretational case law thereof.
(e) You shall have received from ▇▇▇▇▇ ▇▇▇▇▇▇ LLP, counsel
for the Underwriters, such opinion or opinions, dated the related
Closing Date, with respect to the issuance and sale of the
Certificates of the related Series, the related Registration
Statement, the related Prospectus and such other related matters as
the Underwriters may reasonably require, and the Company shall have
furnished to such counsel such documents as the Underwriters may
reasonably request for the purpose of enabling them to pass upon such
matters.
(f) The Company shall have furnished to you a certificate of
the Company, signed by the President or any Vice President or the
principal financial or accounting officer of the Company, dated the
related Closing Date, to the effect that the signers of such
certificate have carefully examined the related Registration Statement
(excluding any Current Reports and any other documents incorporated by
reference therein), the related Prospectus, any Detailed Description
(excluding any related Current Report), this Agreement and the related
Terms Agreement and that:
(i) the representations and warranties of the Company
in this Agreement are true and correct in all material
respects on and as of the related Closing Date with the same
effect as if made on such Closing Date, and the Company has
complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied at or
prior to such Closing Date;
(ii) no stop order suspending the effectiveness of such
Registration Statement has been issued and no proceedings for
that purpose have been
12
instituted or, to their knowledge, threatened; and
(iii) nothing has come to their attention that would
lead them to believe that such Registration Statement
(excluding any Current Report) contains any untrue statement
of a material fact or omits to state any material fact
required to be stated therein or necessary to make the
statements therein not misleading, or that the related
Prospectus (excluding any related Current Report) contains
any untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to
make the statements therein, in the light of the
circumstances under which they were made, not misleading, or
that any Detailed Description includes any untrue statement
of a material fact or omits to state any information which
the Prospectus (or the related Prospectus Supplement) states
will be included in such Detailed Description.
(g) Counsel for the Trustee shall have furnished to you an
opinion addressed to the Underwriters, dated the related Closing Date,
to the effect that:
(i) the Trustee has been duly incorporated and is
validly existing as a New York banking corporation in good
standing under the laws of the State of New York with
corporate power to own its properties and conduct its
business as presently conducted by it, to conduct business as
a trustee and to enter into and perform its obligations under
the related Pooling and Servicing Agreement;
(ii) the related Pooling and Servicing Agreement has
been duly authorized, executed and delivered by the Trustee
and constitutes the legal, valid and binding agreement of the
Trustee enforceable against the Trustee in accordance with
its terms, subject to bankruptcy, insolvency, fraudulent
conveyance, reorganization or other similar laws affecting
the enforcement of creditors' rights generally and to
judicial discretion, and general principles of equity
(regardless of whether enforcement is sought in a proceeding
in equity or at law);
(iii) the Trustee has duly accepted its appointment as
trustee under the related Pooling and Servicing Agreement;
(iv) no consent, approval, authorization or order of any
New York or federal court or government agency or body is
required on the part of the Trustee for the consummation of
the transactions contemplated in the related Pooling and
Servicing Agreement, except such as may be required under any
federal or state securities law; and
(v) the performance on the part of the Trustee of any
of the transactions contemplated in the related Pooling and
Servicing Agreement does not conflict with or result in a
breach or violation of any term or provision of, or
constitute a default under, the certificate of incorporation,
as amended, or by-laws of the Trustee, or any New York or
federal statute or regulation applicable to the
13
Trustee, or to such counsel's knowledge, any indenture or
other agreement or instrument to which the Trustee is a party
or by which it is bound, or, to such counsel's knowledge, any
order of any state or federal court, regulatory body,
administrative agency or governmental body having
jurisdiction over the Trustee.
In addition, such counsel shall furnish to you such opinions
as to the treatment of the Trust Fund for purposes of New York tax law
as are reasonably satisfactory to the Underwriter.
(h) KPMG LLP shall have furnished to you a letter addressed
to the Underwriters, dated as of the date of the related Terms
Agreement, in form and substance satisfactory to you, stating in
effect that they have performed certain specified procedures as a
result of which they have determined that such information as you may
reasonably request of an accounting, financial or statistical nature
(which is limited to accounting, financial or statistical information
derived from the general accounting records of First Horizon Home Loan
Corporation) set forth in the related Prospectus Supplement under the
caption "Servicing of Mortgage Loans Foreclosure, Delinquency and Loss
Experience" agrees with the accounting records of First Horizon Home
Loan Corporation, excluding any questions of legal interpretation.
(i) Deloitte & Touche LLP shall have furnished to you a
letter addressed to the Underwriters, dated as of the related Closing
Date, in form and substance satisfactory to you, stating in effect
that they have performed certain specified procedures as a result of
which they have determined that such information as you may reasonably
request of an accounting, financial or statistical nature (which is
limited to accounting, financial or statistical information derived
from the general accounting records of the Company and which is
obtained from an analysis of a sample of the Mortgage Loans included
in the related pool) set forth in the related Prospectus Supplement
under the caption "The Mortgage Pool" and in any Detailed Description
relating to such Prospectus Supplement is mutually consistent and
agrees with the accounting records of the Company and, where
applicable, the related Mortgage Loan files of the Company, excluding
any questions of legal interpretation. In addition, if applicable,
such accountants shall have furnished to you a letter addressed to the
Underwriters, dated as of the related Closing Date, which shall
include a statement or statements to the effect that based upon the
assumptions and methodology agreed to by the Company (and which is
consistent with the manner in which any final PAC Balances, TAC
Balances, Scheduled Balances, Maximum and Minimum Scheduled Balances
or any other scheduled balances are to be calculated as set forth in
the related Prospectus), all of which shall be described by reference
in such letter, such accountants shall have verified the mathematical
accuracy of any final PAC Balances Table, TAC Balances Table,
Scheduled Balances Table, Maximum or Minimum Scheduled Balances Table
or other scheduled balances table attached as an exhibit to the
related Pooling and Servicing Agreement.
(j) Deloitte & Touche LLP shall have furnished to you
(addressed to the Underwriters) and the Company a letter or letters,
dated as of the date of the related
14
Terms Agreement, in form and substance satisfactory to you and the
Company, including, without limitation, statements, if applicable, to
the effect that:
(i) based upon the assumptions and methodology set
forth in the related Prospectus, all of which shall be
described by reference in such letter, they recomputed the
percentages of the initial principal balance outstanding as
of each of the Distribution Dates (as defined in such
Prospectus) indicated and the weighted average lives of each
Class of Offered Certificates at each of the indicated
percentages of the applicable prepayment assumption, and they
compared the recomputed percentages and weighted average
lives to the corresponding percentages and weighted average
lives set forth in the related tables and found them to be in
agreement;
(ii) based upon the assumptions and methodology set
forth in such Prospectus, all of which shall be described by
reference in such letter, they have verified the mathematical
accuracy of any Scheduled Final Distribution Dates for the
Offered Certificates, PAC Balances, TAC Balances, Scheduled
Balances, Maximum and Minimum Scheduled Balances or any other
scheduled balances set forth in such Prospectus for each
indicated Distribution Date, and have verified the
mathematical accuracy of any initial Effective Ranges of any
PAC Certificates, Scheduled Certificates or other scheduled
Certificates set forth in such Prospectus; and
(iii) based upon the assumptions and methodology set
forth in such Prospectus, all of which shall be described by
reference in such letter, they have verified the mathematical
accuracy of the pre-tax yields to maturity and, if
applicable, aggregate cash flows of any Class of Certificates
for which such pretax yields and, if applicable, aggregate
cash flows are set forth in such Prospectus at the indicated
percentages of the Prepayment Assumption and, if applicable,
at the indicated values of COFI, LIBOR or any other index, as
applicable.
(k) The Offered Certificates of the related Series shall have
received the ratings specified in the related Terms Agreement (the
"Required Ratings").
(1) Prior to the related Closing Date, the Company shall have
furnished to the Underwriters such further information, certificates
and documents as the Underwriters may reasonably request.
(m) If any Certificates of the related Series are to be sold
to any other underwriter and/or offered in reliance upon an exemption
from the registration requirements of the Act, the sale at or prior to
the related Closing Date of such Certificates to the purchaser thereof
shall have occurred.
(n) Subsequent to the date of the related Terms Agreement,
there shall not have been any change, or any development involving a
prospective change, in or
15
affecting the business or properties of the Company which the
Underwriters conclude in their respective reasonable judgment, after
consultation with the Company, materially impairs the investment
quality of the Offered Certificates of the related Series so as to
make it impractical or inadvisable to proceed with the public offering
or the delivery of such Offered Certificates as contemplated by the
related Prospectus.
If any of the conditions specified in this Section 6 shall not have
been fulfilled in all material respects with respect to the particular Offered
Certificates of a Series when and as provided in this Agreement and the related
Terms Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement and the related Terms Agreement shall not be in all
material respects reasonably satisfactory in form and substance to the
Underwriters and their counsel, this Agreement (with respect to the related
Offered Certificates) and the related Terms Agreement and all obligations of the
Underwriters hereunder (with respect to the related Offered Certificates) and
thereunder may be canceled at, or at any time prior to, the related Closing Date
by the Underwriters. Notice of such cancellation shall be given to the Company
in writing, or by telephone or telegraph confirmed in writing.
7. Indemnification and Contribution.
--------------------------------
(a) The Company and First Horizon Home Loan Corporation jointly
and severally agree to indemnify and hold harmless each Underwriter
and each person who controls any Underwriter within the meaning of the
Act or the Exchange Act against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become
subject under the Act, the Exchange Act, or other federal or state
statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in the
Registration Statement relating to the Offered Certificates of the
applicable Series as it became effective or in any amendment or
supplement thereof, or in such Registration Statement or the related
Prospectus, or in any amendment thereof, or in any Detailed
Description referred to in such Prospectus (or the related Prospectus
Supplement) or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading,
and agree to reimburse each such indemnified party for any legal or
other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or
action; provided, however, that (i) neither the Company nor First
Horizon Home Loan Corporation will be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or
is based upon any such untrue statement or alleged untrue statement or
omission or alleged omission made therein (A) in reliance upon and in
conformity with written information furnished to the Company or First
Horizon Home Loan Corporation, as the case may be, as herein stated by
or on behalf of any Underwriter specifically for use in connection
with the preparation thereof or (B) in any Current Report or any
amendment or supplement thereof except to the extent that any untrue
statement or alleged untrue statement therein or omission therefrom
results (or is alleged to have resulted) directly from an error (a
"Mortgage Pool Error") in the information concerning the
characteristics of the
16
Mortgage Loans furnished by the Company or First Horizon Home Loan
Corporation, as the case may be, to any Underwriter in writing or by
electronic transmission that was used in the preparation of either (x)
any Computational Materials or ABS Term Sheets (or amendments or
supplements thereof) included in such Current Report (or amendment or
supplement thereof) or (y) any written or electronic materials
furnished to prospective investors on which the Computational
Materials or ABS Term Sheets (or amendments or supplements) were based
and (ii) such indemnity with respect to any Corrected Statement (as
defined below) in such Registration Statement or the related
Prospectus (or any amendment or supplement thereto) shall not inure to
the benefit of any Underwriter (or any person controlling such
Underwriter) from whom the person asserting any loss, claim, damage or
liability purchased the Certificates of the related Series that are
the subject thereof if such person did not receive a copy of an
amendment or supplement to such Registration Statement or the related
Prospectus at or prior to the confirmation of the sale of such
Certificates and the untrue statement or omission of a material fact
contained in such Registration Statement or the related Prospectus (or
any amendment or supplement thereto) was corrected (a "Corrected
Statement") in such other amendment or supplement and such amendment
or supplement was furnished by the Company or First Horizon Home Loan
Corporation, as the case may be, to such Underwriter prior to the
delivery of such confirmation. This indemnity agreement will be in
addition to any liability which the Company and First Horizon Home
Loan Corporation may otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold
harmless the Company, each of its directors, each of its officers, and
each person or entity (including each of its directors and officers)
who controls the Company within the meaning of the Act or the Exchange
Act, to the same extent as the foregoing indemnities from the Company
and First Horizon Home Loan Corporation to the Underwriter, but only
with reference to (A) written information furnished to the Company by
or on behalf of such Underwriter specifically for use in the
preparation of the documents referred to in the foregoing indemnity
with respect to the related Series, or (B) any Computational Materials
or ABS Term Sheets (or amendments or supplements thereof) furnished to
the Company by such Underwriter pursuant to Section 8 or Section 9 and
incorporated by reference in such Registration Statement or the
related Prospectus or any amendment or supplement thereof (except that
no such indemnity shall be available for any losses, claims, damages
or liabilities, or actions in respect thereof, resulting from any
Mortgage Pool Error). This indemnity agreement will be in addition to
any liability that the Underwriters may otherwise have. The Company
and First Horizon Home Loan Corporation each hereby acknowledges,
unless otherwise specified in writing by an Underwriter, that the
statements set forth in the first sentence of the last paragraph
appearing on the cover page of the related Prospectus Supplement as
such statements relate to such Offered Certificates and the second
sentence of the first paragraph and the first sentence of the second
paragraph in each case under the heading "Method of Distribution" in
such Prospectus Supplement as such statements relate to such Offered
Certificates constitute the only information furnished in writing by
or on behalf of such Underwriter for inclusion in the related
Prospectus (other than any Computational
17
Materials or ABS Term Sheets (or amendments or supplements thereof)
furnished to the Company by such Underwriter), and such Underwriter
confirms that such statements are correct.
(c) Promptly after receipt by an indemnified party under
Section 7 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 7, notify the
indemnifying party in writing of the commencement thereof; but the
omission so to notify the indemnifying party will not relieve it from
any liability which it may have to any indemnified party otherwise
than under this Section 7, except to the extent that the omission to
so notify the indemnifying party causes or exacerbates a loss. 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
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 shall have reasonably
concluded that there may be legal defenses available to it and/or
other indemnified parties which 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 under this Section 7 for any legal or
other expenses subsequently incurred by such indemnified party 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 (it being understood, however, that the indemnifying party
shall not be liable for the expenses of more than one separate counsel
approved by the indemnified party in the case of subparagraph (a) or
(b), representing the indemnified parties under subparagraph (a) or
(b), who are parties to such action), (ii) the indemnifying party
shall not have employed counsel 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).
(d) If the indemnification provided for in paragraph (a) or (b)
of this Section 7 is due in accordance with its terms but is for any
reason held by a court to be unavailable from the Company, First
Horizon Home Loan Corporation or any Underwriter, on grounds of policy
or otherwise, or if the indemnified party failed to give notice under
paragraph (c) of this Section 7 in respect of a claim otherwise
subject to indemnification
18
in accordance with paragraph (a) or (b) of this Section 7, the
Company, First Horizon Home Loan Corporation and such Underwriter
shall contribute to the aggregate losses, claims, damages and
liabilities (including legal and other expenses reasonably incurred in
connection with investigating or defending same) to which the Company,
First Horizon Home Loan Corporation and such Underwriter may be
subject, as follows:
(i) in the case of any losses, claims, damages and
liabilities (or actions in respect thereof) which do not
arise out of or are not based upon any untrue statement or
omission of a material fact in any Computational Materials or
ABS Term Sheets (or any amendments or supplements thereof) or
in any written or electronic materials distributed to
prospective investors on which the Computational Materials
are based, in such proportion so that such Underwriter is
responsible for that portion represented by the difference
between the proceeds to the Company in respect of the Offered
Certificates appearing on the cover page of the Prospectus
Supplement for the related Series and the total proceeds
received by such Underwriter from the sale of such Offered
Certificates (the "Underwriting Discount"), and the Company
and First Horizon Home Loan Corporation are jointly and
severally responsible for the balance; provided, however,
that in no case shall such Underwriter be responsible under
this subparagraph (i) for any amount in excess of such
Underwriting Discount applicable to the Offered Certificates
purchased by such Underwriter pursuant to this Agreement and
the related Terms Agreement; and
(ii) in the case of any losses, claims, damages and
liabilities (or actions in respect thereof) which arise out
of or are based upon any untrue statement or omission of a
material fact in any Computational Materials or ABS Term
Sheets (or any amendments or supplements thereof) or in any
written or electronic materials distributed to prospective
investors on which the Computational Materials are based, in
such proportion as is appropriate to reflect the relative
fault of the Company or First Horizon Home Loan Corporation,
as the case may be, on the one hand and such Underwriter on
the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities
(or actions in respect thereof) as well as any other relevant
equitable considerations; provided, however, that in no case
shall such Underwriter be responsible under this subparagraph
(ii) for any amount in excess of the Underwriting Discount
applicable to the Offered Certificates purchased by such
Underwriter pursuant to this Agreement and the related Terms
Agreement. The relative fault shall be determined by
reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact in such
Computational Materials or ABS Term Sheets (or any amendments
or supplements thereof or such written or electronic
materials) results from information prepared by the Company
or First Horizon Home Loan Corporation, as the case may be,
on the one hand or such Underwriter on the other and the
parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or
omission.
19
Notwithstanding anything to the contrary in this Section 7(d), no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 7,
each person who controls an Underwriter within the meaning of either the Act or
the Exchange Act shall have the same rights to contribution as such Underwriter,
and each person who controls the Company or First Horizon Home Loan Corporation,
as the case may be, within the meaning of either the Act or the Exchange Act,
each officer of the Company who shall have signed the Registration Statement and
each director of the Company or First Horizon Home Loan Corporation, as the case
may be, shall have the same rights to contribution as the Company or First
Horizon Home Loan Corporation, as the case may be, subject in each case to the
immediately preceding sentence of this paragraph (d).
8. Computational Materials and Structural Term Sheets.
--------------------------------------------------
(a) On the business day before the date on which the Current
Report relating to the Offered Certificates of a Series is required to
be filed by the Company with the Commission pursuant to Section 5(b)
hereof; each Underwriter shall deliver to the Company five complete
copies of all materials provided by such Underwriter to prospective
investors in such Offered Certificates that constitute (i)
"Computational Materials" within the meaning of the no-action letter
dated May 20, 1994 issued by the Division of Corporation Finance of
the Commission to ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ Acceptance Corporation I, ▇▇▇▇▇▇,
Peabody & Co. Incorporated, and ▇▇▇▇▇▇ Structured Asset Corporation
and the no-action letter dated May 27, 1994 issued by the Division of
Corporation Finance of the Commission to the Public Securities
Association (together, the "▇▇▇▇▇▇ Letters"), the filing of which
material is a condition of the relief granted in such letter (such
materials being the "Computational Materials"), and (ii) "Structural
Term Sheets" within the meaning of the no-action letter dated February
17, 1995 issued by the Division of Corporation Finance of the
Commission to the Public Securities Association (the "PSA Letter"),
the filing of which material is a condition of the relief granted in
such letter (such materials being the "Structural Term Sheets"). Each
delivery of Computational Materials and Structural Term Sheets to the
Company pursuant to this paragraph (a) shall be effected by delivering
four copies of such materials to counsel for the Company on behalf of
the Company at the address specified in Section 3 hereof and one copy
of such materials to the Company.
(b) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, it
shall be necessary to amend or supplement the related Prospectus as a
result of an untrue statement of a material fact contained in any
Computational Materials or Structural Term Sheets provided by any
Underwriter pursuant to this Section 8 or the omission to state
therein a material fact required, when considered in conjunction with
the related Prospectus and Prospectus Supplement, to be stated therein
or necessary to make the statements therein, when read in conjunction
with the related Prospectus and Prospectus Supplement, not misleading,
or if it shall be necessary to amend or supplement any Current Report
relating to any Computational Materials or Structural Term Sheets to
comply with the Act or the rules
20
thereunder, such Underwriter shall prepare and furnish to the Company
for filing with the Commission an amendment or supplement which will
correct such statement or omission or an amendment or supplement which
will effect such compliance.
(c) Each Underwriter shall cause Deloitte & Touche LLP to furnish
to the Company a letter, dated as of the date on which you deliver any
Computational Materials or Structural Term Sheets to the Company
pursuant to Section 8(a), in form and substance satisfactory to the
Company, stating in effect that they have verified the mathematical
accuracy of any calculations performed by such Underwriter and set
forth in such Computational Materials or Structural Term Sheets, as
applicable.
9. Collateral Term Sheets.
----------------------
(a) On the business day immediately following the date on which
any Collateral Term Sheet (as defined in the PSA Letter) was first
delivered to a prospective investor in such Offered Certificates, each
Underwriter shall deliver to the Company five complete copies of all
materials provided by such Underwriter to prospective investors in the
Offered Certificates that constitute "Collateral Term Sheets." Each
delivery of a Collateral Term Sheet to the Company pursuant to this
paragraph (a) shall be effected by delivering four copies of such
materials to counsel for the Company on behalf of the Company at the
address specified in Section 3 hereof and one copy of such materials
to the Company. (Collateral Term Sheets and Structural Term Sheets
are, together, referred to herein as "ABS Term Sheets.")
(b) If, at any time when a prospectus relating to the Offered
Certificates of a Series is required to be delivered under the Act, it
shall be necessary to amend or supplement the related Prospectus as a
result of an untrue statement of a material fact contained in any
Collateral Term Sheets provided by an Underwriter pursuant to this
Section 9 or the omission to state therein a material fact required,
when considered in conjunction with the related Prospectus and
Prospectus Supplement, to be stated therein or necessary to make the
statements therein, when read in conjunction with the related
Prospectus and Prospectus Supplement, not misleading, or if it shall
be necessary to amend or supplement any Current Report relating to any
Collateral Term Sheets to comply with the Act or the rules thereunder,
such Underwriter shall prepare and furnish to the Company for filing
with the Commission an amendment or supplement which will correct such
statement or omission or an amendment or supplement which will effect
such compliance.
(c) Each Underwriter shall cause Deloitte & Touche LLP to furnish
to the Company a letter, dated as of the date on which you deliver any
Collateral Term Sheets to the Company pursuant to Section 9(a), in
form and substance satisfactory to the Company, stating in effect that
they have verified the mathematical accuracy of any calculations
performed by such Underwriter and set forth in such Collateral Term
Sheets, as applicable.
10. Termination. This Agreement (with respect to a particular
Certificate Offering)
21
and the related Terms Agreement shall be subject to termination in your absolute
discretion, by notice given to the Company prior to delivery of and payment for
the related Offered Certificates, if prior to the related Closing Date (i)
trading in securities generally on the New York Stock Exchange shall have been
suspended or materially limited, (ii) a general moratorium on commercial banking
activities in New York shall have been declared by either federal or New York
State authorities, or (iii) there shall have occurred any outbreak or escalation
of hostilities or other calamity, event or crisis the effect of which on the
financial markets of the United States is such as to make it, in your reasonable
judgment, impracticable to market such Offered Certificates.
11. Representations and Indemnities to Survive Delivery. The agreements,
representations, warranties, indemnities and other statements of the Company (or
First Horizon Home Loan Corporation, as the case may be) or its officers and of
each Underwriter set forth in or made pursuant to this Agreement and the related
Terms Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company (or First
Horizon Home Loan Corporation, as the case may be) or any of the officers,
directors or controlling persons referred to in Section 7 hereof; and will
survive delivery of and payment for the related Offered Certificates. The
provisions of Section 7 hereof shall survive the termination or cancellation of
this Agreement and the related Terms Agreement.
12. Successors. This Agreement and the related Terms Agreement will inure
to the benefit of and be binding upon the parties hereto and thereto and their
respective successors and the officers, directors and controlling persons
referred to in Section 7 hereof; and their successors and assigns, and no other
person will have any right or obligation hereunder or thereunder. No purchaser
of any Offered Certificate from any Underwriter shall be deemed a successor or
assign by reason of such purchase.
13. APPLICABLE LAW. THIS AGREEMENT AND THE RELATED TERMS AGREEMENT WILL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.
14. Miscellaneous. This Agreement, as supplemented by the related
Terms Agreement, supersedes all prior and contemporaneous agreements and
understandings relating to the subject matter hereof. This Agreement and the
related Terms Agreement or any term of each may not be changed, waived,
discharged or terminated except by an affirmative written agreement made by the
party against whom enforcement of the change, waiver, discharge or termination
is sought. The headings in this Agreement and the related Terms Agreement are
for purposes of reference only and shall not limit or otherwise affect the
meaning hereof or thereof.
15. Notices. All communications hereunder will be in writing and effective
only on receipt, and, if sent to you, will be delivered to you at the address
first above written to the attention of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ with a copy to ▇▇▇▇▇
▇▇▇▇▇▇ LLP, ▇▇▇▇ ▇ ▇▇▇▇▇▇, ▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇ ▇▇▇▇▇▇▇; or
if sent to the Company, will be delivered to First Horizon Asset Securities
Inc., ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, with a
copy to First Tennessee National Corporation, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇,
▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇., Esq.
16. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail on the Closing Date to purchase the Offered Certificates
which it or they are obligated to purchase hereunder and under the applicable
Terms Agreement (the "Defaulted Certificates"), you shall have the right, within
24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all,
of the Defaulted Certificates in such amounts as may be agreed upon and upon the
terms herein set forth and under the applicable Terms Agreement. If, however,
you have not completed such arrangements within such 24-hour period, then:
(a) if the aggregate original principal amount of Defaulted
Certificates does not exceed 10% of the aggregate original principal amount
of the Certificates to be purchased pursuant to such Terms Agreement, the
non-defaulting Underwriters named in such Terms Agreement shall be
obligated to purchase the full amount thereof in the proportions that their
respective underwriting obligations thereunder bear to the underwriting
obligations of all non-defaulting Underwriters; and
(b) if the aggregate original principal amount of Defaulted
Certificates exceeds 10% of the original principal amount of the Offered
Certificates to be purchased pursuant to such Terms Agreement, the
applicable Terms Agreement shall terminate without any liability on the
part of any non-defaulting Underwriter.
No action taken pursuant to this Section 16 and nothing in this Agreement
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 or such applicable Terms Agreement, either you or the Company
shall have the right to postpone the Closing Date for a period of time not
exceeding seven days in order to effect any required changes in the Registration
Statement or in any other documents or arrangements.
* * *
23
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the undersigned a counterpart hereof, whereupon this
letter and your acceptance shall represent a binding agreement between the
Company and you.
Very truly yours,
FIRST HORIZON ASSET SECURITIES INC.
By:_____________________________________
Name:
Title:
The foregoing Agreement is
hereby confirmed and accepted
as of the date first above written.
BANC OF AMERICA SECURITIES LLC
By:__________________________________
Name:
Title:
FIRST HORIZON HOME LOAN CORPORATION
By:__________________________________
Name:
Title:
24
EXHIBIT A
FTRST HORIZON ASSET SECURITIES INC.
REMIC MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATES
SERIES
TERMS AGREEMENT
---------------
(to Underwriting Agreement,
dated [ ], 2000
between the Company and the Underwriter)
First Horizon Asset Securities Inc. [ ]
4000 Horizon Way [Date]
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Each of [ ] (the "Underwriters") severally agrees, subject to the terms and
provisions herein and of the captioned Underwriting Agreement (the "Underwriting
Agreement"), to purchase such Classes of Series [ ] Certificates specified in
Section 2(a) hereof (the "Offered Certificates"). This letter supplements and
modifies the Underwriting Agreement solely as it relates to the purchase and
sale of the Offered Certificates described below. The Series ______-____
Certificates are registered with the Securities and Exchange Commission by means
of an effective Registration Statement (No. 333-__________) Capitalized terms
used and not defined herein have the meanings given them in the Underwriting
Agreement.
Section 1. The Mortgage Pool: The Series ____-__ Certificates shall
evidence the entire beneficial ownership interest in a mortgage pool (the
"Mortgage Pool") of conventional, fixed rate, fully amortizing one- to
four-family residential mortgage loans (the "Mortgage Loans") having the
following characteristics as of _________ --, ____ (the "Cut-off Date"):
(a) Aggregate Principal Amount of the Mortgage Pool: $[ ]
aggregate principal balance as of the Cut-off Date, subject to [an
upward or downward variance of up to [ ]%, the precise aggregate
principal balance to be determined by the Company (a permitted
variance such that the aggregate Scheduled Principal Balance thereof
will be not less than $[ ] or greater than $[ ].
(b) Original Terms to Maturity: The original term to
maturity of each Mortgage Loan included in the Mortgage Pool shall be
between ___ and ___ years.
Section 2. The Certificates: The Offered Certificates shall be issued
as follows:
(a) Classes: The Offered Certificates shall be issued with
the following Class designations, interest rates and principal
balances, subject in the aggregate to the variance referred to in
Section 1(a)[and, as to any particular Class, to an upward or downward
variance of up to [ ]%]:
25
Principal Interest Class Purchase
Class Balance Rate Price Percentage
----- ------- ---- ----------------
(b) The Offered Certificates shall have such other
characteristics as described in the related Prospectus.
Each of the Underwriters agrees, severally and not jointly, subject to
the terms and conditions contained herein and in the Underwriting Agreement, to
purchase the principal balances of the Classes of Certificates specified
opposite its name below:
Series
Designation [Underwriter] [Underwriter]
Section 3. Purchase Price: The Purchase Price for each Class of the
Offered Certificates shall be the Class Purchase Price Percentage therefor (as
set forth in Section 2(a) above) of the initial Class Certificates Principal
Balance thereof plus accrued interest at the rate of [ 3% per annum from and
including the Cut-off Date up to, but not including, _________ --, _____ (the
"Closing Date").
Section 4. Required Ratings: The Offered Certificates shall have
received Required Ratings of at least [ ] from [ ].
Section 5. Tax Treatment: [One or more elections will be made to treat
the assets of the Trust Fund as a REMIC.] [The Trust Fund will be treated as a
"grantor trust" for federal income tax purposes.]
26
[Section 6. Additional Expenses:] *
______________
* to be inserted if applicable.
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the undersigned a counterpart hereof;
whereupon this letter and your acceptance shall represent a binding agreement
between the Underwriters and the Company.
Very truly yours,
CO-MANAGER:
[UNDERWRITER]
By:
Name:
Title:
CO-MANAGER:
[UNDERWRITER]
By:
Name:
Title:
The foregoing Agreement is
hereby confirmed and accepted
as of the date first above written.
FIRST HORIZON ASSET SECURITIES INC.
By:
Name:
Title:
FIRST HORIZON HOME LOAN CORPORATION
By:
Name:
Title:
27