Exhibit 99.2
EXECUTION COPY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
MORTGAGE PASS-THROUGH CERTIFICATES
Series ▇▇▇▇-▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
March 27, 2006
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Dear Sirs and Madams:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., a Delaware corporation (the
"Company"), proposes to sell to you as representative (the "Underwriter") the
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Loan Trust 2006-5AR (the "Issuing Entity"), Mortgage
Pass-Through Certificates, Series 2006-5AR in the classes and in the
respective original principal or notional amounts and with the designations
described on Schedule A attached hereto (the "Securities"). The Securities,
along with the Class B-1, Class B-2, Class B-3, Class P and Class C
Certificates (the "Private Securities"), will be issued pursuant to a pooling
and servicing agreement dated as of March 1, 2006 (the "Pooling and Servicing
Agreement") among the Company, as depositor, ▇▇▇▇▇ Fargo Bank, National
Association ("▇▇▇▇▇ Fargo"), as the master servicer (the "Master Servicer")
and as securities administrator (the "Securities Administrator"), ▇▇▇▇▇▇
▇▇▇▇▇▇▇ Mortgage Capital Inc., as seller ("MSMCI"), and LaSalle Bank National
Association, as trustee (the "Trustee"). The Securities will represent
undivided beneficial ownership interests in a trust fund consisting primarily
of a pool of fixed-rate mortgage loans, adjustable-rate mortgage loans, and
hybrid adjustable-rate mortgage loans (the "Mortgage Loans"), secured by first
liens on one- to four-family residential properties. The Mortgage Loans may be
sold to the Depositor pursuant to various mortgage loan purchase agreements
(such agreements, the "Mortgage Loan Purchase Agreements" and the "Servicing
Agreements," respectively) between MSMCI and one or more sellers (the
"Sellers"), a mortgage loan purchase agreement between MSMCI and the Depositor
and assignment, assumption and recognition agreements between the Depositor,
MSMCI, the Trustee and each Seller and/or servicer (each servicer, a
"Servicer") (collectively, the "Assignment Agreements"), as applicable.
The Company has filed with the Securities and Exchange
Commission (the "Commission") a registration statement, including a
prospectus, relating to the Securities and has filed with the Commission one
or more free writing prospectuses (together, the "Free Writing Prospectus")
and prospectus supplement (the "Prospectus Supplement") specifically relating
to the Securities pursuant to Rule 424 under the Securities Act of 1933 (the
"Securities Act") and the rules and regulations thereunder (the "Securities
Act Regulations"). The term Registration Statement means such registration
statement as amended to the date of the Underwriting Agreement. The term Base
Prospectus means the prospectus included in the Registration Statement. The
term Prospectus means the Base Prospectus together with the Prospectus
Supplement specifically relating to the Securities, as filed with the
Commission pursuant to Rule
424. The term free writing prospectus means any free writing prospectus, as
defined in Rule 405 of the Securities Act. Any reference in this underwriting
agreement (the "Agreement") to the Registration Statement or the Prospectus
shall be deemed to refer to and include the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as
of the effective date of the Registration Statement or the Prospectus, as the
case may be. Terms not otherwise defined in this Agreement are used in this
Agreement as defined in the Pooling and Servicing Agreement.
The term "Disclosure Package" means (i) the Base Prospectus,
as most recently amended or supplemented immediately prior to the Initial Sale
Time (as defined herein) and (ii) any Free Writing Prospectus that the parties
hereto shall hereafter expressly agree to treat as part of the Disclosure
Package. If, subsequent to the date of this Agreement, the Company and the
Underwriter have determined that the Disclosure Package included an untrue
statement of 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 and have terminated their old purchase
contracts and entered into new purchase contracts with purchasers of the
Securities, then the "Disclosure Package" will refer to the information
available to purchasers at the time of entry into the first such new purchase
contract, including any information that corrects such material misstatements
or omissions ("Corrective Information").
I.
The Company represents and warrants to and agrees with the
Underwriter that:
(a) The Registration Statement has become effective; no stop
order suspending the effectiveness of the Registration Statement
is in effect, and no proceedings for such purpose are pending
before or threatened by the Commission.
(b) (i) Each part of the Registration Statement, when such
part became effective, did not contain, and each such part, as
amended or supplemented, if applicable, will 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, (ii) the Registration
Statement, the Disclosure Package and the Prospectus comply, and,
as amended or supplemented, if applicable, will comply in all
material respects with the Securities Act and the applicable rules
and regulations of the Commission thereunder and (iii) each of the
Disclosure Package and the Prospectus does not contain and, as
amended or supplemented, if applicable, will not contain 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 were made, not misleading, except
that the representations and warranties set forth in this
paragraph I(b) do not apply to statements or omissions in the
Registration Statement, the Disclosure Package or the Prospectus
based upon and in conformity with information relating to the
Underwriter furnished to the Company in writing by the Underwriter
expressly for use or incorporation therein.
(c) The Company has been duly incorporated, is validly
existing as a corporation in good standing under the laws of the
State of Delaware, has the corporate power and authority to own
its property and to conduct its business as described in the
Prospectus and to enter into and perform its obligations under
this Agreement and the Pooling and Servicing Agreement.
(d) This Agreement has been duly authorized, executed and
delivered by the Company.
(e) Each of the Pooling and Servicing Agreement and the
Assignment Agreements has been duly authorized, executed and
delivered by the Company and is a valid and binding agreement of
the Company, enforceable in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors' rights generally
and to general principles of equity regardless of whether
enforcement is sought in a proceeding in equity or at law.
(f) The direction by the Company to the Securities
Administrator to execute, authenticate and deliver the Securities
has been duly authorized by the Company, and the Securities, when
executed and authenticated in the manner contemplated in the
Pooling and Servicing Agreement, and delivered to and paid for by
the Underwriter in accordance with the terms of this Agreement,
will be validly issued and outstanding and entitled to the
benefits of the Pooling and Servicing Agreement.
(g) Neither the execution and delivery by the Company of,
nor the performance by the Company of its obligations under, this
Agreement, the Pooling and Servicing Agreement and the Assignment
Agreements, will contravene any provision of applicable law or the
certificate of incorporation or by-laws of the Company or any
agreement or other instrument binding upon the Company that is
material to the Company or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the
Company or any subsidiary, and no consent, approval, authorization
or order of, or qualification with, any governmental body or
agency is required for the performance by the Company of its
obligations under this Agreement, the Pooling and Servicing
Agreement and the Assignment Agreements, except such as may be
required by the securities or Blue Sky laws of the various states
in connection with the offer and sale of the Securities.
(h) There has not occurred any material adverse change, or
any development involving a prospective material adverse change,
in the condition, financial or otherwise, or in the earnings,
business or operations of the Company and its subsidiaries, taken
as a whole, from that set forth in the Prospectus.
(i) There are no legal or governmental proceedings pending
or threatened to which the Company is a party or to which any of
the properties of the Company are subject that are required to be
described in the Registration Statement, the Disclosure Package or
the Prospectus and that are not so described, nor are there any
statutes, regulations, contracts or other documents required to be
described in the Registration Statement, the Disclosure Package or
the Prospectus or to be filed as exhibits to the Registration
Statement that are not described or filed as required.
(j) Each preliminary prospectus filed as part of the
Registration Statement as originally filed or as a part of any
amendment thereto, or filed pursuant to Rule 424 under the
Securities Act, complied as to form, when so filed, in all
material respects with the Securities Act and the rules and
regulations of the Commission thereunder.
(k) The Company is not an "investment company" or an entity
"controlled" by an "investment company," as such terms are defined
in the Investment Company Act of 1940, as amended (the "Investment
Company Act").
(l) the Company is eligible to use Free Writing Prospectuses
in connection with this offering pursuant to Rules 164 and 433 of
the Securities Act Regulations; any Free Writing Prospectus that
the Company is required to file pursuant to Rule 433(d) under the
Securities Act Regulations has been, or will be, filed with the
Commission in accordance with the requirements of the Securities
Act and the Securities Act Regulations; and each Free Writing
Prospectus that the Company has filed, or is required to file,
pursuant to Rule 433(d) under the Securities Act Regulations or
that was prepared by or on behalf of or used by the Company
complies or will comply in all material respects with the
requirements of the Securities Act and the Securities Act
Regulations.
(m) The characteristics of the Issuing Entity will not
subject the Issuing Entity to registration as an "investment
company" under the Investment Company Act.
II.
MSMCI represents and warrants to and agrees with the
Underwriter that:
(a) MSMCI has been duly incorporated, is validly existing as
a corporation in good standing under the laws of the State of New
York, has the corporate power and authority to own its property
and to conduct its business as described in the Prospectus and to
enter into and perform its obligations under this Agreement and
the Pooling and Servicing Agreement.
(b) This Agreement has been duly authorized, executed and
delivered by MSMCI.
(c) Each of the Pooling and Servicing Agreement, the
Mortgage Loan Purchase Agreements and the Assignment Agreements
has been duly authorized, executed and delivered by MSMCI and is a
valid and binding agreement of MSMCI, enforceable in accordance
with its terms except as the enforceability thereof may be limited
by bankruptcy, insolvency or similar laws affecting creditors'
rights generally and to general principles of equity regardless of
whether enforcement is sought in a proceeding in equity or at law.
(d) Neither the execution and delivery by MSMCI of, nor the
performance by the Company of its obligations under, the Pooling
and Servicing Agreement, the Mortgage Loan Purchase Agreements and
the Assignment Agreements, will contravene any provision of
applicable law or the certificate of incorporation or by-laws of
MSMCI or any agreement or other instrument binding upon MSMCI that
is material to MSMCI or
any judgment, order or decree of any governmental body,
agency or court having jurisdiction over MSMCI or any subsidiary,
and no consent, approval, authorization or order of, or
qualification with, any governmental body or agency is required
for the performance by MSMCI of its obligations under the Pooling
and Servicing Agreement, the Mortgage Loan Purchase Agreements and
the Assignment Agreements.
III.
The Company hereby agrees to sell the Securities to the
Underwriter, and the Underwriter, upon the basis of the representations and
warranties contained in this Agreement, but subject to the conditions stated
in this Agreement, agrees to purchase the Securities from the Company, for a
purchase price that is the sum of (i) 101.75% of the original principal amount
of the Securities and (ii) accrued interest, if any, from the Closing Date to
the date of payment and delivery.
IV.
A. The Underwriter proposes to make a public offering of the
Securities as soon as the Underwriter deems advisable after this Agreement has
been executed and delivered. The terms of the public offering of the
Securities are set forth in the Prospectus.
B. In connection with the offering of the Securities, the
Underwriter may prepare and provide to prospective investors Free Writing
Prospectuses, or portions thereof, which the Company is required to file with
the Commission in electronic format and will use reasonable efforts to provide
to the Company such Free Writing Prospectuses, or portions thereof, in either
Microsoft Word(R) or Microsoft Excel(R) format and not in a PDF, except to the
extent that the Company, in its sole discretion, waives such requirements,
subject to the following conditions (to which such conditions the Underwriter
agrees):
(i) "Business Day" shall mean any day other than (i) a
Saturday or Sunday or (ii) a day on which banking
institutions in the State of New York or the jurisdiction in
which the offeree is located are required or authorized by
law or executive order to be closed.
(ii) Unless preceded or accompanied by the Base
Prospectus, the Underwriter shall not convey or deliver any
written communication to any person in connection with the
initial offering of the Securities, unless such written
communication (1) is made in reliance on Rule 134 of the
Securities Act Regulations, (2) constitutes a prospectus
satisfying the requirements of Rule 430B of the Securities
Act Regulations or (3) constitutes a Free Writing Prospectus
and such Free Writing Prospectus is attached to this
Agreement as Schedule B. The Underwriter shall not convey or
deliver in connection with the initial offering of the
Securities any "ABS informational and computational
material," as defined in Item 1101(a) of Regulation AB of
the Securities Act Regulations ("ABS Informational and
Computational Material"), in reliance upon Rules 167 and 426
of the Securities Act Regulations in lieu of a free writing
prospectus.
(iii) The Underwriter shall deliver to the Depositor,
(a) no later than two Business Days prior to the date of
first use thereof, any Free Writing Prospectus prepared by
or on behalf of such Underwriter that contains any "issuer
information," as defined in Rule 433(h) of the Securities
Act Regulations and footnote 271 of the Commission's
Securities Offering Reform Release No. 33-8591 ("Issuer
Information") (which the parties hereto agree includes,
without limitation, Pool Information (as defined herein)),
and (b) upon first use, any Free Writing Prospectus or
portion thereof that contains only a description of the
final terms of the Securities. Notwithstanding the
foregoing, any Free Writing Prospectus that contains only
ABS Informational and Computational Materials shall be
delivered by any Underwriter to the Company not later than
the later of (a) two Business Days prior to the due date for
filing of the Prospectus pursuant to Rule 424(b) of the
Securities Act Regulations and (b) the date of first use of
such Free Writing Prospectus.
(iv) The Underwriter represents and warrants to the
Company that the Free Writing Prospectuses to be furnished
to the Company by the Underwriter pursuant to Section
3(b)(ii) above will constitute all Free Writing Prospectuses
of the type described in such Section that were furnished to
prospective investors by such Underwriter in connection with
its offer and sale of the Securities.
(v) The Underwriter represents and warrants to the
Company that each Free Writing Prospectus required to be
provided by it to the Company pursuant to Section 3(b)(ii)
above, did not, as of the Time of Sale, and will not as of
the Closing Date, include any untrue statement of a material
fact or, when read in conjunction with the other information
included in the Disclosure Package, omit any material fact
necessary to make the statements contained therein, in light
of the circumstances under which they were made, not
misleading; provided however, that such Underwriter makes no
representation to the extent such misstatements or omissions
were the result of any inaccurate Issuer Information
supplied by the Company to such Underwriter, which
information was not corrected by Corrective Information
subsequently supplied by the Company to the Underwriter
prior to the Time of Sale.
(vi) The Company agrees to file with the Commission
the following:
(a) Any Free Writing Prospectus or portion
thereof delivered by the Underwriter to the Company
pursuant to Article IV(B)(ii); and
(b) Any Free Writing Prospectus for which the
Company or any person acting on its behalf provided,
authorized or approved information that is prepared
and published or disseminated by a person unaffiliated
with the Company or any other offering participant
that is in the business of publishing, radio or
television broadcasting or otherwise disseminating
communications.
(vii) Any Free Writing Prospectus required to be filed
pursuant to Article IV(B)(v) by the Company shall be filed
with the Commission not later than the date of first use of
the Free Writing Prospectus, except that:
(a) Any Free Writing Prospectus or portion
thereof required to be filed that contains only the
description of the final terms of the Securities shall
be filed by the Company with the Commission within two
days of the later of the date such final terms have
been established for all classes of Securities and the
date of first use;
(b) Any Free Writing Prospectus or portion
thereof required to be filed that contains only ABS
Informational and Computational Material shall be
filed by the Company with the Commission not later
than the later of the due date for filing the final
Prospectus relating to the Securities pursuant to Rule
424(b) of the Securities Act Regulations and two
Business Days after the first use of such Free Writing
Prospectus;
(c) Any Free Writing Prospectus required to be
filed pursuant to Article IV(B)(v)(b) shall, if no
payment has been made or consideration has been given
by or on behalf of the Company for the Free Writing
Prospectus or its dissemination, be filed by the
Company with the Commission not later than four
Business Days after the Company becomes aware of the
publication, radio or television broadcast or other
dissemination of the Free Writing Prospectus; and
(d) The Company shall not be required to file
(1) Issuer Information contained in any Free Writing
Prospectus of an Underwriter or any other offering
participant other than the Company, if such
information is included or incorporated by reference
in a prospectus or Free Writing Prospectus previously
filed with the Commission that relates to the offering
of the Securities or (2) any Free Writing Prospectus
or portion thereof that contains a description of the
Securities or the offering of the Securities which
does not reflect the final terms thereof.
(viii) The Underwriter shall file with the Commission
any Free Writing Prospectus that is used or referred to by
it and distributed by or on behalf of the Underwriter in a
manner reasonably designed to lead to its broad,
unrestricted dissemination not later than the date of the
first use of such Free Writing Prospectus.
(ix) Notwithstanding the provisions of Article
IV(B)(vii), the Underwriter shall file with the Commission
any Free Writing Prospectus for which such Underwriter or
any person acting on its behalf provided, authorized or
approved information that is prepared and published or
disseminated by a person unaffiliated with the Company or
any other offering participant that is in the business of
publishing, radio or television broadcasting or otherwise
disseminating written communications and for which no
payment was made or
consideration given by or on behalf of the Company or
any other offering participant, not later than four Business
Days after such Underwriter becomes aware of the
publication, radio or television broadcast or other
dissemination of the Free Writing Prospectus.
(x) Notwithstanding the provisions of Articles
IV(B)(v) and IV(B)(vii), neither the Company nor any
Underwriter shall be required to file any Free Writing
Prospectus that does not contain substantive changes from or
additions to a Free Writing Prospectus previously filed with
the Commission.
(xi) The Company and each Underwriter each agree that
any Free Writing Prospectuses prepared by it shall contain
the following legend:
"The depositor has filed a registration statement
(including a prospectus) with the SEC for the
offering to which this communication relates.
Before you invest, you should read the prospectus
in that registration statement and other documents
the depositor has filed with the SEC for more
complete information about the issuing entity and
this offering. You may get these documents for free
by visiting ▇▇▇▇▇ on the SEC Web site at
▇▇▇.▇▇▇.▇▇▇. Alternatively, the depositor, any
underwriter or any dealer participating in the
offering will arrange to send you the prospectus if
you request it by calling toll-free ▇-▇▇▇-▇▇▇-▇▇▇▇."
(xii) The Company and each Underwriter agree to retain
all Free Writing Prospectuses that they have used and that
are not required to be filed pursuant to this Article IV for
a period of three years following the initial bona fide
offering of the Securities.
(a) In the event that any Underwriter becomes
aware that, as of the Time of Sale, any Free Writing
Prospectus prepared by or on behalf of such
Underwriter and delivered to such investor contained
any untrue statement of a material fact or, when read
in conjunction with the other information included in
the Disclosure Package, omitted to state a material
fact necessary in order to make the statements
contained therein, in the light of the circumstances
under which they were made, not misleading (such Free
Writing Prospectus, a "Defective Free Writing
Prospectus"), such Underwriter shall notify the
Company thereof within one Business Day after
discovery.
(b) Provided that the Defective Free Writing
Prospectus was an Issuer Free Writing Prospectus or
contained Issuer Information, such Underwriter shall,
if requested by the Company:
(1) Prepare a Free Writing Prospectus with
Corrective Information that corrects the material
misstatement in or omission from the Defective
Free Writing Prospectus (such corrected Free
Writing Prospectus, a "Corrected Free Writing
Prospectus");
(2) Deliver the Corrected Free Writing
Prospectus to each investor which received the
Defective Free Writing Prospectus prior to
entering into a contract of sale with such
investor; provided if the Time of Sale has
occurred with respect to such investor, the
Underwriter shall provide such investor with (w)
adequate disclosure of the contractual
arrangement, (x) adequate disclosure of the
person's rights under the existing contract of
sale at the time termination is sought, (y)
adequate discloser of the new information that
is necessary to correct the misstatements or
omissions in the information given at the time
of the original contract of sale, and (z) a
meaningful ability to elect to terminate or not
terminate the prior contract of sale and to
elect to enter into or not enter into a new
contract of sale; and
(3) In the event that the Defective Free
Writing Prospectus contained Issuer Information,
and the Underwriter shall in good faith incur
any costs to any investor in connection with the
reformation of the contract of sale with the
investor, the Company agrees to reimburse the
Underwriter for such costs; provided that,
before incurring such costs, the Underwriter
first permit the Company access to the
applicable investor and an opportunity to
attempt to mitigate such costs through direct
negotiation with such investor.
(xiii) The Underwriter covenants with the Company that
after the final Prospectus is available such Underwriter
shall not distribute any written information concerning the
Securities to a prospective investor unless such information
is preceded or accompanied by the final Prospectus.
(xiv) The Underwriter covenants and agrees with the
Company that it shall not accept any offer to purchase
Securities until the time at least 24 hours after the time
the related offeree received the Preliminary Prospectus, or
such shorter period as such Underwriter and the Company
shall agree.
V.
Payment for the Securities shall be made by certified or
official bank check or checks payable to the order of the Company in
immediately available funds at the office of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at 10:00 A.M., local time, on March
31, 2006, or at such other time or place on the same or such other date, not
later than five Business Days after the date of this Agreement. Payment for
the Securities shall be made upon delivery to the Underwriter of the
Securities registered in such names and in such denominations as the
Underwriter shall request in writing not less than two full Business Days
prior to the date of delivery. The time and date of such payment and delivery
with respect to the Securities are referred to in this Agreement as the
"Closing Date."
VI.
The obligations of the Underwriter under this Agreement are
subject to the following conditions:
A. Subsequent to the execution and delivery of this
Agreement and prior to the Closing Date:
(i) there shall not have occurred any
downgrading, nor shall any notice have been given of
any intended or potential downgrading, or any review
for a possible change, that does not indicate the
direction of the possible change, in the rating
accorded any of the Company's securities by any
"nationally recognized statistical rating
organization," as such term is defined for purposes of
Rule 436(g)(2) under the Securities Act;
(ii) there shall not have occurred any change,
or any development involving a prospective change, in
the condition, financial or otherwise, or in the
earnings, business or operations, of the Company and
its subsidiaries, taken as a whole, from that set
forth in the Prospectus, that in the judgment of the
Underwriter, is material and adverse and that makes
it, in the judgment of the Underwriter, impracticable
to market the Securities on the terms and in the
manner contemplated in the Prospectus;
(iii) the Underwriter shall have received on the
Closing Date a certificate, dated the Closing Date and
signed by an executive officer of the Company, to the
effect set forth in clause (i) above and to the effect
that (x) the representations and warranties of the
Company contained in this Agreement are true and
correct as of the Closing Date and that the Company
has complied with all of the agreements and satisfied
all of the conditions on its part to be performed or
satisfied on or before the Closing Date and (y) no
stop order suspending the effectiveness of the
Registration Statement has been issued and no
proceedings for that purpose have been instituted or,
to the Depositor's knowledge, threatened. The officer
signing and delivering such certificate may rely upon
the best of his knowledge as to proceedings
threatened; and
(iv) The Underwriter shall have received on the
Closing Date a certificate or opinion of counsel of
each Seller and/or Servicer, as applicable, the
Trustee, the Master Servicer and the Securities
Administrator, signed by the president or a vice
president of the respective Seller and/or Servicer, as
applicable, the Trustee, the Master Servicer and the
Securities Administrator and dated the Closing Date,
to the effect that (i) the representations and
warranties of the Sellers, Servicers, the Trustee, the
Master Servicer or the Securities Administrator, as
applicable, in this Agreement, the Pooling and
Servicing Agreement, the related Mortgage Loan
Purchase Agreement , the related Servicing Agreement
or related Assignment Agreement, as applicable, are
true and correct in all material respects at and as of
the Closing Date with the same effect as if made on
the Closing Date, (ii) the respective Seller and/or
Servicer, as
applicable, the Trustee, the Master Servicer and
the Securities Administrator has complied with all the
agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the
Closing Date and (iii) with respect to the Seller's
Information related to the respective Seller, the
Servicer's Information related to the respective
Servicer, the Trustee's information related to the
Trustee, or the Master Servicer and Securities
Administrator information related to the Master
Servicer and Securities Administrator, as applicable,
nothing has come to the attention of the signer that
would lead to the signer to believe that the
Prospectus Supplement contains any untrue statement of
a material fact or omits to state any material fact
necessary in order to make the statements therein, in
the light of the circumstances under which they were
made, not misleading. "Seller's Information" refers to
sections in the Prospectus Supplement entitled
"Description of the Mortgage Loans--Loan Purchasing
Guidelines and Underwriting Standards,"
"--Underwriting Standards--Countrywide Home Loans,
Inc.," "Servicer's Information" refers to sections in
the Prospectus Supplement entitled "The
Servicers--GMAC Mortgage Corporation," and
"--Countrywide Home Loans Servicing LP.," "Trustee's
Information" refers to sections in the Prospectus
Supplement entitled "The Trustee," and "Master
Servicer's and Securities Administrator's Information"
refers to sections in the Prospectus Supplement
entitled "The Master Servicer and Securities
Administrator."
B. The Underwriter shall have received on the Closing
Date an opinion of counsel for the Company, dated the
Closing Date, to the effect set forth in Exhibit A.
C. The Underwriter shall have received on the Closing
Date an opinion of counsel to the Underwriter in form and
substance acceptable to it.
D. The Underwriter shall have received on the Closing
Date a letter of KPMG, LLP, dated the date of this Agreement
in form and substance satisfactory to the Underwriter,
regarding certain specified procedures performed thereby
with respect to information set forth in the Prospectus.
E. The Underwriter shall have received from each of
▇▇▇▇▇'▇ Investors Services, Inc. and Standard & Poor's, a
division of The ▇▇▇▇▇▇-▇▇▇▇ Companies, Inc. letters
confirming the ratings set forth in the Prospectus
Supplement, which ratings shall not have been withdrawn.
F. The Underwriter shall have received from counsel
for the Trustee a favorable opinion, dated the Closing Date,
in form and substance satisfactory to the Underwriter and
its counsel, to the effect that the Pooling and Servicing
Agreement has been duly authorized, executed and delivered
to the Trustee and constitutes legal, valid, binding and
enforceable agreements of the Trustee, subject, as to
enforceability, to bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights
in general and by general principles of equity regardless of
whether
enforcement is considered in a proceeding in equity or
at law, and as to such other matters as may be agreed upon
by the Underwriter and the Trustee.
G. The Underwriter shall have received from counsel
for the Master Servicer and the Securities Administrator a
favorable opinion, dated the Closing Date, in form and
substance satisfactory to the Underwriter and its counsel,
to the effect that the Pooling and Servicing Agreement has
been duly authorized, executed and delivered to the Master
Servicer and the Securities Administrator and constitutes
legal, valid, binding and enforceable agreements of the
Master Servicer and the Securities Administrator, subject,
as to enforceability, to bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting
creditors' rights in general and by general principles of
equity regardless of whether enforcement is considered in a
proceeding in equity or at law, and as to such other matters
as may be agreed upon by the Underwriter and the Master
Servicer and the Securities Administrator.
H. Except as agreed to by the Underwriter, the
Underwriter shall have received from counsel to each Seller
and/or Servicer, as applicable, a favorable opinion, dated
the Closing Date, in form and substance satisfactory to the
Underwriter and its counsel, to the effect that each
Mortgage Loan Purchase Agreement or Servicing Agreement and
Assignment Agreement has been duly authorized, executed and
delivered by each Seller and/or Servicer, as applicable, and
constitute legal, valid, binding and enforceable agreements
of each Seller and/or Servicer, as applicable, subject, as
to enforceability, to bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting
creditors' rights in general and by general principles of
equity regardless of whether enforcement is considered in a
proceeding in equity or at law, and as to such other matters
as may be agreed upon by the Underwriter and the Sellers
and/or Servicers, as applicable.
VII.
In further consideration of the agreements of the
Underwriter contained in this Agreement, the Company covenants as follows:
A. To furnish the Underwriter, without charge, a
signed copy of the Registration Statement and any amendments
thereto, including exhibits, and, during the period
mentioned in paragraph C. below, as many copies of the
Prospectus and any supplements and amendments thereto as the
Underwriter may reasonably request.
B. Before amending or supplementing the Registration
Statement or the Prospectus with respect to the Securities,
to furnish the Underwriter a copy of each such proposed
amendment or supplement and not to file any such proposed
amendment or supplement to which the Underwriter reasonably
objects.
C. If, during such period after the first date of the
public offering of the Securities, as in the opinion of
counsel for the Underwriter the Prospectus is required by
law to be delivered in connection with sales by the
Underwriter, any event shall occur or condition exist as a
result of which it is necessary to amend or supplement the
Prospectus in order to make the statements therein, in the
light of the circumstances when the Prospectus is delivered
to a purchaser, not misleading, or if it is necessary to
amend or supplement the Prospectus to comply with law,
forthwith to prepare and furnish, at its own expense, to the
Underwriter, either amendments or supplements to the
Prospectus so that the statements in the Prospectus as so
amended or supplemented will not, in the light of the
circumstances when the Prospectus is delivered to a
purchaser, be misleading or so that the Prospectus will
comply with law.
D. To endeavor to qualify the Securities for offer and
sale under the securities or Blue Sky laws of such
jurisdictions as the Underwriter shall reasonably request
and to pay all expenses (including fees and disbursements of
counsel) in connection with such qualification and in
connection with the determination of the eligibility of the
Securities for investment under the laws of such
jurisdictions as the Underwriter may designate.
VIII.
The Company agrees to indemnify and hold harmless the
Underwriter and each person, if any, who controls the Underwriter within the
meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and
liabilities caused by any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, any Free Writing
Prospectus or the Prospectus (if used within the period set forth in paragraph
C. of Article VIII and as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or
alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission or alleged untrue statement or omission based
upon and in conformity with information furnished in writing to the Company by
the Underwriter expressly for use or incorporation therein.
The Underwriter agrees to indemnify and hold harmless the
Company and its directors and officers who sign the Registration Statement and
any person controlling the Company within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act, to the same extent as
the foregoing indemnity from the Company to the Underwriter, but only with
reference to information relating to the Underwriter furnished in writing by
the Underwriter expressly for use or incorporation in the Registration
Statement, any Free Writing Prospectus or the Prospectus.
In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either of the two preceding paragraphs,
such person (the "indemnified party") shall promptly notify the person against
whom such indemnity may be sought (the "indemnifying party") in writing and
the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to
such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel
shall be at the
expense of such indemnified party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel
or (ii) the named parties to any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them. It is understood that
the indemnifying party shall not, in respect of the legal expenses of any
indemnified party, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties and that all such fees and expenses shall be reimbursed as they are
incurred. Such firm shall be designated in writing by the Underwriter in the
case of parties indemnified pursuant to the first paragraph of this Article
VIII and by the Company in the case of parties indemnified pursuant to the
second paragraph of this Article VIII. The indemnifying party shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified
party from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by the
third sentence of this paragraph, the indemnifying party agrees that it shall
be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (ii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.
To the extent the indemnification provided for in this
Article VIII is unavailable to an indemnified party under the first or second
paragraph of this Article VIII or is insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand, and the
Underwriter on the other, from the offering of the Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company on
the one hand, and of the Underwriter on the other, in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand, and the Underwriter
on the other, in connection with the offering of the Securities shall be
deemed to be in the same proportions that the total net proceeds from the
offering of the Securities (before deducting expenses) received by the Company
and the total underwriting discounts and commissions received by the
Underwriter in respect thereof respectively, bear to the aggregate public
offering price of the Securities. The relative fault of the Company on the one
hand, and of the Underwriter on the other, 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 relates to
information supplied by the Company or by the Underwriter and the parties'
relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.
The Company and the Underwriter agree that it would not be
just and equitable if contribution pursuant to this Article VIII were
determined by pro rata allocation or by any other method of allocation that
does not take account of the considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages and liabilities referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Article VIII, the
Underwriter shall not be required to contribute any amount in excess of the
amount by which the total underwriting discounts and commissions received by
the Underwriter in connection with the Securities underwritten and distributed
to the public by the Underwriter exceeds the amount of any damages that the
Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this
Article VIII and the representations and warranties of the Company in this
Agreement shall remain operative and in full force and effect regardless of
(i) any termination of this Agreement, (ii) any investigation made by or on
behalf of the Underwriter or any person controlling the Underwriter or by or
on behalf of the Company, its directors or officers or any person controlling
the Company and (iii) acceptance of any payment for any of the Securities.
IX.
This Agreement shall be subject to termination in the
Underwriter's absolute discretion, by notice given to the Company, if (a)
after the execution and delivery of this Agreement and prior to the Closing
Date: (i) trading generally shall have been suspended or materially limited on
or by, as the case may be, any of the New York Stock Exchange, the American
Stock Exchange, the National Association of Securities Dealers, Inc., the
Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the
Chicago Board of Trade, (ii) trading of any securities of the Company shall
have been suspended on any exchange or in any over-the-counter market, (iii) a
general moratorium on commercial banking activities in New York shall have
been declared by either Federal or New York State authorities, or (iv) there
shall have occurred any outbreak or escalation of hostilities or any change in
financial markets or any calamity or crisis that, in the judgment of the
Underwriter, is material and adverse and (b) in the case of any of the events
specified in clauses (a)(i) through (iv), such event singly or together with
any other such event, makes it, in the judgment of the Underwriter,
impracticable to market the Securities on the terms and in the manner
contemplated in the Prospectus.
X.
The Company acknowledges that in connection with the
offering of the Securities: (a) the Underwriter has acted at arms length, is
not an agent of, and owes no fiduciary duty to, the Company or any other
person, (b) the Underwriter owes the Company only those duties and obligations
set forth in this Agreement and (c) the Underwriter may have interests that
differ from those of the Company. The Company waives to the full extent
permitted by applicable law any claims it may have against the Underwriter
arising from an alleged breach of fiduciary duty in connection with the
offering of the Securities.
XI.
In relation to each Member State of the European Economic
Area which has implemented the Prospectus Directive (each, a "Relevant Member
State"), the Underwriter has represented and agreed that with effect from and
including the date on which the Prospectus Directive is implemented in that
Relevant Member State (the "Relevant Implementation Date") it has not made and
will not make an offer of certificates to the public in that Relevant Member
State prior to the publication of a prospectus in relation to the Securities
which has been approved by the competent authority in that Relevant Member
State or, where appropriate, approved in another Relevant Member State and
notified to the competent authority in that Relevant Member State, all in
accordance with the Prospectus Directive, except that it may, with effect from
and including the Relevant Implementation Date, make an offer of Securities to
the public in that Relevant Member State at any time:
(a) to legal entities which are authorized or regulated to operate in
the financial markets or, if not so authorized or regulated, whose corporate
purpose is solely to invest in securities;
(b) to any legal entity which has two or more of (1) an average of at
least 250 employees during the last financial year; (2) a total balance sheet
of more than (euro)43,000,000 and (3) an annual net turnover of more than
(euro)50,000,000, as shown in its last annual or consolidated accounts; or
(c) in any other circumstances which do not require the publication
by the issuer of a prospectus pursuant to Article 3 of the Prospectus
Directive.
For the purposes of this provision, the expression an "offer
of certificates to the public" in relation to any certificates in any Relevant
Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the certificates to be
offered so as to enable an investor to decide to purchase or subscribe the
certificates, as the same may be varied in that Member State by any measure
implementing the Prospectus Directive in that Member State and the expression
"Prospectus Directive" means Directive 2003/71/EC and includes any relevant
implementing measure in each Relevant Member State.
XII.
This Agreement, together with any contemporaneous written
agreements and any prior written agreements (to the extent not superseded by
this Agreement) that relate to the
offering of the Securities, represents the entire agreement between the
Company, on the one hand, and the Underwriter, on the other, with respect to
the preparation of the Prospectus, and the conduct of the offering, and the
purchase and sale of the Securities.
XIII.
If this Agreement shall be terminated by the Underwriter
because of any failure or refusal on the part of the Company to comply with
the terms or to fulfill any of the conditions of this Agreement, or if for any
reason the Company shall be unable to perform its obligations under this
Agreement, the Company will reimburse the Underwriter for all out-of-pocket
expenses (including the fees and disbursements of its counsel) reasonably
incurred by the Underwriter in connection with the Securities.
This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.
This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
Very truly yours,
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President
Accepted and agreed to by:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & CO. INCORPORATED,
as representative
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Executive Director
SCHEDULE A
------------------------------------------------------------------------------------------------------------------
Class Principal Amount ($) Maturity Date Interest Rate (%)
----- -------------------- ------------- -----------------
------------------------------------------------------------------------------------------------------------------
A $514,133,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
A-X Notional (1) March 2036 Variable (1) ,
------------------------------------------------------------------------------------------------------------------
M-X Notional (1) March 2036 Variable (1)
------------------------------------------------------------------------------------------------------------------
M-1 $10,572,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-2 $6,399,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-3 $3,338,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-4 $3,061,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-5 $2,504,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-6 $1,947,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-7 $1,669,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-8 $1,670,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
M-9 $1,391,000 March 2036 Floating Rate (1)
------------------------------------------------------------------------------------------------------------------
A-R $100 March 2036 Variable (1)
------------------------------------------------------------------------------------------------------------------
--------------
(1) Please refer to page iii of the Prospectus Supplement for a description
of the pass-through rate for each Class of Certificates.
Sch. A-1
SCHEDULE B
EXHIBIT A
OPINION OF SIDLEY AUSTIN, COUNSEL FOR THE COMPANY
The opinion of Sidley Austin LLP, counsel for the Company,
to be delivered pursuant to Article VI, paragraph B. of the document entitled
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc. Underwriting Agreement shall be to the effect
that:
1. The Company is validly existing as a corporation in good
standing under the laws of the State of Delaware.
2. The Company has the corporate power and corporate
authority to carry on its business as described in the Prospectus and to own
and operate its properties in connection therewith.
3. The Underwriting Agreement has been duly authorized,
executed and delivered by the Company.
4. Each of the Mortgage Loan Purchase Agreement and the
Pooling and Servicing Agreement has been duly authorized, executed and
delivered by the Company and each is a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
that (A) such enforcement is subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights generally and (B) such enforcement may be
limited by general principles of equity (regardless of whether enforcement is
sought in a proceeding in equity or at law).
5. The execution and delivery by the Company of the
Underwriting Agreement, the Mortgage Loan Purchase Agreement and the Pooling
and Servicing Agreement and the signing of the Registration Statement by the
Company are within the corporate power of the Company and have been duly
authorized by all necessary corporate action on the part of the Company; and
neither the issuance and sale of the Certificates, nor the consummation of the
transactions contemplated in the Underwriting Agreement nor the fulfillment of
the terms of such Underwriting Agreement will (i) result in any violation of
the provisions of the certificate of incorporation or by-laws of the Company
or, to the best of our knowledge, any New York or federal law, administrative
regulation or administrative or court decree applicable to the Company or (ii)
constitute a default under any material contract known to us to which the
Company is a party; provided that for purposes of this clause (ii) we have not
been asked to perform and have not performed in any independent investigation.
6. The Public Certificates have been duly authorized by the
Company and, when executed and authenticated as specified in the Pooling and
Servicing Agreement and delivered and paid for pursuant to the Underwriting
Agreement and the Pooling and Servicing Agreement, will be duly issued and
entitled to the benefits of the Pooling and Servicing Agreement.
7. To the best of our knowledge, no filing or registration
with or notice to or consent, approval, authorization or order of any New York
or federal court or governmental authority or agency is required for the
consummation by the Company of the transactions contemplated by the
Underwriting Agreement, except such as have been obtained under the 1933 Act
or such as may be required under state securities or Blue Sky laws.
8. The Registration Statement is effective under the 1933
Act and, to the best of our knowledge and information, 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.
9. The Pooling and Servicing Agreement is not required to be
qualified under the Trust Indenture Act of 1939, as amended.
10. The statements in the Prospectus under the headings
"Federal Income Tax Consequences" and "ERISA Considerations" to the extent
that they constitute matters of law or legal conclusions with respect thereto,
have been prepared or reviewed by us and are correct in all material respects.
11. The Trust Fund created by the Pooling and Servicing
Agreement is not required to register as an "investment company" under the
Investment Company Act of 1940, as amended.
12. The statements in the Prospectus under the caption
"Description of the Certificates," insofar as such statements purport to
summarize certain terms of the Certificates and certain provisions of the
Pooling and Servicing Agreement, constitute a fair summary of such terms and
provisions in all material respects.
13. The Registration Statement, as of the date it became
effective, and the Prospectus, as of the date thereof (other than the
financial statements and other financial, statistical and numerical
information included therein, as to which no opinion is rendered), appeared on
its face to be appropriately responsive in all material respects to the
applicable requirements of the 1933 Act and the rules and regulations
thereunder.
14. The Public Certificates (other than the Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates) will be
mortgage related securities, as defined in Section 3(a)(41) of the Securities
Exchange Act of 1934, as amended, so long as such Certificates are rated in
one of the two highest rating categories by at least one nationally recognized
statistical rating organization.