Exhibit 1.1
FIELDSTONE MORTGAGE INVESTMENT
CORPORATION
Mortgage-Backed Notes
UNDERWRITING AGREEMENT
[____________], 200[ ]
[Name and Address of the
Representative of the Underwriters]
Ladies and Gentlemen:
1.
Introduction . Fieldstone Mortgage Investment Corporation, a
Maryland corporation (the “ Depositor ”),
proposes to sell to the several underwriters listed in Schedule
II (the “ Underwriters ”) for which [ ] is
acting as representative (the “Representative”), the
class principal amount or class notional amount of the Fieldstone
Mortgage Investment Trust, Series 200[]-[] Mortgage-Backed Notes,
identified in Schedule I hereto (the “ Notes
”) to be issued pursuant to a Transfer and Servicing
Agreement (the “ Transfer and Servicing Agreement
”) and an Indenture, the (“ Indenture ”),
by and among Fieldstone Mortgage Investment Trust, Series 200[
]-[], a Delaware statutory trust (the “ Issuer ”
or the “ Trust ”), an indenture trustee (the
“ Indenture Trustee ”), and a trust
administrator (the “ Trust Administrator ”). The
Trust has been created pursuant to a trust agreement (the “
Trust Agreement ”) by and between an owner trustee
(the “ Owner Trustee ”), the Depositor and Trust
Administrator.
The
Notes will generally be payable out of the cash flows attributable
to the property of each Trust, which will consist of one or more
pools of mortgage loans (the “ Mortgage Loans ”)
and certain related property to be conveyed to the Trust by the
Depositor. The Mortgage Loans will be conveyed by the Depositor on
the Delivery Date pursuant to one or more mortgage loan purchase
agreements (each, a “ Mortgage Loan Purchase Agreement
”), by and between each Fieldstone Investment Corporation and
any other party identified as a seller of the Mortgage Loans (each
referred to herein as a “Seller”) and the Depositor. On
the Delivery Date, the Depositor will convey the Mortgage Loans to
the Issuer pursuant to a transfer and servicing agreement ( the
“ Transfer and Servicing Agreement ”), by and
among the Issuer, the Depositor, each Seller, a master servicer
(the “ Master Servicer ”), the Trust
Administrator, the Indenture Trustee, the Servicer and potentially,
one or more subservicers, including JPMorgan Chase Bank, National
Association (each, a “ Subservicer ”). The Notes
are more fully described in the Registration Statement (as such
term is defined in Section 2(a)), which the Depositor has furnished
to the Representative.
This
Underwriting Agreement (the “ Agreement ”)
includes the terms and conditions governing the offering and sale
of Notes from the Depositor to the Representative on behalf of
itself and the other Underwriters. Upon the execution and delivery
of this Agreement, the Representative and the other Underwriters
identified on Schedule II hereto agree to become obligated
to purchase Notes from the Depositor. Schedule I of this
Agreement identifies the price at which such Notes are to be
purchased by the Representative and each of the Underwriters from
the Depositor, the aggregate amount of Notes to be purchased by
the
Representative and each
Underwriter and any other Underwriter identified on Schedule
I attached hereto and the initial public offering price or the
method by which the price at which such Notes are to be sold will
be determined. Schedule I may be amended, modified or supplemented
from time to time upon the mutual agreement of the parties hereto
to reflect changes to the pricing and structural terms of the
transaction. Capitalized terms used herein and not otherwise
defined herein, shall have the meanings set forth in the Transfer
and Servicing Agreement.
2.
Representations and Warranties of the Depositor . The
Depositor represents and warrants to the Representative and to each
of the Underwriters as of the date hereof and as of the date the
Prospectus if first filed pursuant to Rule 424 under the Act, as
follows:
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(a)
A registration statement on Form S-3 including a prospectus and
such amendments thereto as may have been required on the date
hereof relating to the Notes has been filed with the Securities and
Exchange Commission (the “ Commission ”) and
such registration statement, as amended, has become effective under
the Act of 1933 (the “ Act ”). Such registration
statement, as amended to the date of this Agreement meets the
requirements set forth in Rule 415(a)(1) under the Act and complies
in all other material respects with such rule. Such registration
statement, as amended and all documents incorporated therein by
reference relating to the Notes, is hereinafter referred to as the
“Registration Statement”; such prospectus the form of
which is contained in the Registration Statement is hereinafter
referred to as the “Base Prospectus”; and such
supplemented form of prospectus, in the form in which it shall be
filed with the Commission pursuant to Rule 424 (b) of the rules and
regulations of the Commission promulgated under the Act (the
“ Rules and Regulations ”); provided, however,
that a supplement to such Base Prospectus prepared pursuant to
Section 5(a) shall be deemed to have supplemented the Base
Prospectus with respect to the offering of the Notes (any such
supplement “ Prospectus Supplement ” and
together with the Base Prospectus, the “ Prospectus
”). Reference made herein to the Prospectus shall be deemed
to refer to and to include any documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Act as of the
date of the Prospectus and any reference to any amendment or
supplement to the Prospectus shall be deemed to refer to and
include any document filed under the Securities Exchange Act of
1934 (the “ Exchange Act ”) after the date of
the Prospectus and incorporated by reference in the Prospectus and
any reference to any amendment to the Registration Statement shall
be deemed to include any report of the Depositor filed with the
Commission pursuant to Section 13(a) or 15(d) of the Exchange Act
after the Effective Time (as defined below) that is incorporated by
reference in the Registration Statement.
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(b)
The Depositor proposes to file with the Commission pursuant to Rule
424 under the Act a Prospectus Supplement relating to the Notes and
the plan of distribution thereof and has previously advised the
Underwriters of all further information (financial and other) with
respect to the Depositor to be set forth therein. Any preliminary
prospectus, including any preliminary prospectus supplement which,
as completed, is proposed to be used in connection with the sale of
the Notes and any prospectus filed with the Commission pursuant to
Rule 424(a) of the Act, is hereinafter called a “
Preliminary Prospectus ”; provided that if no
preliminary prospectus is proposed to be
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used in connection with the sale
of the Notes, references herein to Preliminary Prospectus shall be
disregarded. The Commission has not issued any order preventing or
suspending the use of the Prospectus or the effectiveness of the
Registration Statement and no proceedings for such purpose are
pending or, to the Depositor’s knowledge, threatened by the
Commission. There are no contracts or documents of the Depositor
that are required to be filed as exhibits to the Registration
Statement pursuant to the Act or the Rules and Regulations which
have not been so filed or incorporated by reference therein on or
prior to the Effective Date of the Registration Statement. The
conditions to the use of a registration statement on Form S-3 under
the Act, as set forth in the General Instructions to Form S-3, and
the conditions of Rule 415 under the Act, have been satisfied with
respect to the Registration Statement. For purposes of this
Agreement, “ Effective Time ” means the date and
time as of which such registration statement, or the most recent
post-effective amendment thereto (if any) filed prior to the
execution and delivery of this Agreement, was declared effective by
the Commission and “ Effective Date ” means the
date of the Effective Time.
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At
or prior to the time when sales to investors of the Notes were
first made, as set forth in Schedule I hereto (the “
Time of Sale ”), the Depositor had prepared or
approved the following information (collectively, the “
Approved Offering Materials ”): the Preliminary
Prospectus, if any, each “issuer free writing
prospectus” (as defined pursuant to Rule 433 under the
Act, each an “ Issuer Free Writing Prospectus ”)
and any other “free writing prospectus” (as defined
pursuant to Rule 405 under the Act, a “ Free Writing
Prospectus ”), any Corrective Information (as defined
below) or portion thereof listed as “Approved Offering
Materials” on Schedule I hereto. If, subsequent to the
date of this Agreement, the Depositor and the Underwriters have
determined that such information 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 Notes, then
“Approved Offering Materials” 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 ”).
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(c)
The Registration Statement and the Prospectus conform, and any
further amendments or supplements to the Registration Statement or
the Prospectus will conform, when they become effective or are
filed with the Commission, as the case may be, in all material
respects to the requirements of the Act and the Rules and
Regulations. The Registration Statement, as of the Effective Date
thereof and of any amendment thereto, did not contain an untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading. The Prospectus for the Notes, as of its
date, and as amended or supplemented as of the Delivery Date (as
defined in section 3), does not and will not contain any untrue
statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to
information contained in or omitted from the Registration Statement
or the Prospectus in reliance upon and in conformity with written
information furnished to the Depositor in
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writing by any Underwriter
through the Representative expressly for use therein, it being
understood that such information is limited to the information
identified in the Schedule I hereto as the “
Underwriters’ Information .” The Depositor
acknowledges that the Underwriters’ Information constitutes
the only information furnished in writing by you or on your behalf
for use in connection with the preparation of the Prospectus, and
the Representative confirms that the Underwriters’
Information is correct. The Prospectus delivered to the
Underwriters for use in connection with the offering of the Notes
was identical to the electronically transmitted copies thereof
filed with the Commission pursuant to its Electronic Data
Gathering, Analysis and Retrieval system, except to the extent
permitted by Regulation S-T. The Approved Offering Materials, at
the Time of Sale, did not, and at the Delivery Date will not,
contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading; provided that the Depositor makes no
representation and warranty with respect to the information
contained in or omitted from the Approved Offering Materials or any
amendment thereof or supplement thereto in reliance upon and in
conformity with information furnished in writing to the Depositor
by or on behalf of any Underwriter through the Representative
specifically for use in connection with the preparation of the
Approved Offering Materials.
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(d)
The documents incorporated by reference in the Prospectus, when
they were filed with the Commission, conformed in all material
respects to the requirements of the Act or the Exchange Act, as
applicable, and the rules and regulations of the Commission
thereunder; and any further documents so filed and incorporated by
reference in the Prospectus, when such documents are filed with the
Commission, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the
rules and regulations of the Commission thereunder.
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(e)
The Depositor has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of
Maryland, with full corporate power and authority to own its assets
and conduct its business as now conducted by it, is duly qualified
as a foreign corporation in good standing in all jurisdictions in
which the ownership or lease of its property or the conduct of its
business requires such qualification, except where the failure to
be so qualified would not have a material adverse effect on the
Depositor, and is conducting its business so as to comply in all
material respects with the applicable statutes, ordinances, rules
and regulations of the jurisdictions in which it is conducting
business.
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(f)
There are no actions, proceedings or investigations pending with
respect to which the Depositor has received service of process or,
to the knowledge of the Depositor, threatened by or before any
court, administrative agency or other tribunal to which the
Depositor is a party or of which any of its properties is the
subject (i) which if determined adversely to the Depositor would
have a material adverse effect on the business or financial
condition of the Depositor, (ii) asserting the invalidity of any of
the Operative Agreements or the Notes, (iii) seeking to prevent the
issuance of the Notes or the consummation by the Depositor of any
of the transactions contemplated by any of the Operative Agreements
or (iv) which might materially and adversely affect the
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performance by the Depositor of
its obligations under, or the validity or enforceability of, any of
the Operative Agreements or the Notes.
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(g)
The Operative Agreements and the Notes conform, or will conform as
of the Delivery Date, to the description thereof contained in the
Registration Statement, the Preliminary Prospectus, if any, and the
related Prospectus and any Issuer Free Writing Prospectus; and the
Notes, on the Delivery Date, will have been duly and validly
authorized and, when such Notes are duly and validly executed by
the Trust, authenticated by the Indenture Trustee or the Trust
Administrator and delivered in accordance with such Operative
Agreements and delivered and paid for as provided herein, will be
validly issued and outstanding and entitled to the benefits
afforded by the Operative Agreements.
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(h)
The execution and delivery by the Depositor of this Agreement and
the other Operative Agreements to which it is a party are within
the corporate power of the Depositor and have been, or will have
been on the related Delivery Date, duly authorized by all necessary
corporate action on the part of the Depositor; and neither the
execution and delivery by the Depositor of such instruments, nor
the consummation by the Depositor of the transactions herein or
therein contemplated, nor the compliance by the Depositor with the
provisions hereof or thereof, nor the issuance of the Notes or
offering thereof pursuant to the Prospectus, the Preliminary
Prospectus, if any, or the Approved Offering Materials will (i)
conflict with or result in a breach of, or constitute a default
under, any of the provisions of the certificate of incorporation or
by-laws of the Depositor, (ii) conflict with any of the provisions
of any law, governmental rule, regulation, judgment, decree or
order binding on the Depositor or its properties, (iii) conflict
with any of the provisions of any indenture, mortgage, contract or
other instrument to which the Depositor is a party or by which it
is bound, or (iv) result in the creation or imposition of any lien,
charge or encumbrance upon any of its property pursuant to the
terms of any such indenture, mortgage, contract or other
instrument.
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(i)
At the date thereof, each Operative Agreement to which the
Depositor is a party will constitute a legal, valid and binding
obligation of the Depositor, enforceable against the Depositor in
accordance with its terms, subject, as to enforcement of remedies,
to applicable bankruptcy, reorganization, insolvency, moratorium
and other similar laws affecting creditors’ rights generally
from time to time in effect, and to general principles of
equity.
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(j)
All approvals, authorizations, consents, orders or other actions of
any person, corporation or other organization, or of any court,
governmental agency or body or official (except with respect to the
state securities or Blue Sky laws of various jurisdictions),
required in connection with the valid and proper authorization,
issuance and sale of the Notes pursuant to this Agreement and the
other Operative Agreements has been or will be taken or obtained on
or prior to the applicable Delivery Date.
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(k)
At the Delivery Date, each of the Mortgage Loans included in the
Trust will conform to the representations and warranties with
respect thereto set forth in the Mortgage Loan Purchase Agreement
and the Depositor will (i) have equitable right, title
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and interest in the Mortgage
Loans, free and clear of any lien, mortgage, pledge, charge,
encumbrance, adverse claim or other security interest
(collectively, “Liens”), (ii) not have assigned to any
person (other than the Trust) any of its right, title or interest
in the Mortgage Loans, and (iii) have the power and authority to
sell its interest in the Mortgage Loans to the Trust and to sell
the Notes to the Underwriters. Upon execution and delivery of the
Transfer and Servicing Agreement by the Owner Trustee, the Owner
Trustee will have acquired beneficial ownership of all of the
Depositor’s title and interest in and to the Mortgage Loans,
which will in turn be pledged to the Indenture Trustee in
accordance with the terms of the Indenture.
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(l)
If so specified in the Prospectus, the Preliminary Prospectus, if
any, and any Issuer Free Writing Prospectus, certain of the Notes
subject to this Agreement and offered by means of the Registration
Statement may, when issued pursuant to the Indenture, be
“mortgage related securities”, as such term is defined
in Section 3(a)(41) of the Exchange Act.
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(m)
Neither the Depositor nor the Trust will be subject to registration
as an investment company under the Investment Company Act of 1940,
as amended (the “ Investment Company Act
”).
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(n)
Since the respective dates as of which information provided by the
Seller or the Depositor is given in the Prospectus, there has not
been any material adverse change in the general affairs,
management, financial condition, or results of operations of the
Depositor or any Seller, otherwise than as set forth or
contemplated in the Prospectus as supplemented or amended as of the
Delivery Date.
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(o)
Any certificate signed by an officer of the Depositor and delivered
to the Representative or counsel for the Representative in
connection with an offering of the Notes shall be deemed, and shall
state that it is, a representation and warranty of the Depositor as
to the matters covered thereby on the date of such certificate to
each person to whom the representations and warranties in this
Section 2 are made.
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(p)
As of the date of delivery, there are no Mortgage Pool Errors in
any of the information provided to the Underwriters regarding the
Mortgage Loans and such information is true and correct in all
material respects or, if there is any material error in any such
information, the Depositor has promptly provided corrected
information to the Underwriters.
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(q)
On the Delivery Date, the Mortgage Loans will conform in all
material respects to the description thereof contained in the
Prospectus, the Preliminary Prospectus, if any, and any Issuer Free
Writing Prospectus and the representations and warranties contained
in this Agreement will be true and correct in all material
respects. The representations and warranties of the Seller and the
Depositor set out in the Transfer and Servicing Agreement are
hereby made to the Underwriters as though set out herein, and at
the dates specified therein, such representations and warranties
were and will be true and correct in all material
respects.
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(r)
Each of the Seller and the Depositor possess all material licenses,
certificates, permits or other authorizations issued by the
appropriate state, federal or foreign regulatory agencies or bodies
necessary to conduct the business now operated by it and as
described in the Prospectus, the Preliminary Prospectus, if any,
and any Issuer Free Writing Prospectus and there are no proceedings
pending or, to the best knowledge of the Depositor, threatened,
relating to the revocation or modification of any such license,
certificate, permit or other authorization which singly or in the
aggregate, if the subject of an unfavorable decision, ruling or
finding, would materially and adversely affect the business,
operations, results of operations, financial position, income,
property or assets of either the Seller or the
Depositor.
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(s)
The Depositor is not aware of (i) any request by the Commission for
any further amendment of the Registration Statement or the
Prospectus or for any additional information, (ii) the issuance by
the Commission of any stop order suspending the effectiveness of
the Registration Statement or the institution or threatening of any
proceeding for that purpose, or (iii) any notification with respect
to the suspension of the qualification of the Notes for sale in any
jurisdiction or the initiation or threatening of any proceeding for
such purpose.
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(t)
(i) At the earliest time after the filing of the Registration
Statement that the Depositor or another offering participant made a
bona fide offer (within the meaning of Rule 164(h)(2) of
Rules and Regulations and (ii) at the date hereof, the Depositor is
not an Ineligible Issuer, as such term is defined in Rule 405 of
the Rules and Regulations.
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(u)
Any Issuer Free Writing Prospectus conforms in all material
respects to the requirements of the Act and the Rules and
Regulations. The Issuer Free Writing Prospectus as of the date
thereof and as of the Delivery Date does not and will not contain
any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as
to information contained in or omitted from the Issuer Free Writing
Prospectus in reliance upon and in conformity with written
information furnished to the Depositor in writing by the
Underwriter expressly for use therein, it being understood that
such information is limited to the information identified on
Schedule I hereto as the “Underwriters’
Information.” The Depositor acknowledges that the
Underwriters’ Information constitutes the only information
furnished in writing to you or on your behalf for use in connection
with the preparation of the Issuer Free Writing Prospectus
identified on Schedule I hereto and the Representative
confirms that the Underwriters’ Information is correct. Any
Issuer Free Writing Prospectus delivered to the Underwriters for
use in connection with the offering of the Notes will be identical
to the electronically transmitted copies thereof filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and
Retrieval system, except to the extent permitted by Regulation
S-T.
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(v)
The Depositor (including its agents and representatives other than
the Underwriters in their capacity as such) has not made, used,
prepared, authorized, approved or referred to and will not make,
use, prepare, authorize, approve or refer to any
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“written
communication” (as defined in Rule 405 under the Act)
that constitutes an offer to sell or solicitation of an offer to
buy the Notes other than (i) the Preliminary Prospectus, if any,
(ii) the Prospectus, (iii) information included in the Approved
Offering Materials, (iv) any document not constituting a
prospectus pursuant to Section 2(a)(10)(a) of the Act or
Rule 134 under the Act or (v) other written
communication approved in writing in advance by the
Representative.
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(w)
The Depositor will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus
that is not filed with the Commission in accordance with Rule 433
under the Act.
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3.
Purchase, Sale and Delivery of Notes . Delivery of and
payment for the Notes will be made at such time and location as is
specified in Schedule I attached hereto, or as the
Representative and the Depositor shall agree upon, each such time
being herein referred to as a “ Delivery Date .”
Delivery of such Notes shall be made by the Depositor to the
Underwriters against payment of the purchase price specified in
Schedule I attached hereto in same day funds wired to such
bank as may be designated by the Depositor, or by such other manner
of payment as may be agreed upon by the Depositor and the
Representative. Except as otherwise provided in Schedule I
attached hereto, each Class of Notes sold to the Underwriters
pursuant to this Agreement will be represented initially by one or
more notes registered in the name of Cede & Co., the nominee of
the Depository Trust Company (the “ DTC Notes
”). The interests of the beneficial owners of the DTC Notes
will be represented by book entries on the records of DTC and
participating members thereof. Definitive certificates for the DTC
Notes will be made available only under the limited circumstances
specified in the Indenture. Except as otherwise provided in
Schedule I attached hereto, each Class of Notes sold to the
Underwriters as definitive notes will be in definitive, fully
registered form, in such denominations and registered in such names
as the Representative shall request, and will be made available at
least 24 hours prior to the applicable Delivery Date, for checking
and packaging at the offices of Hunton & Williams LLP,
Riverfront Plaza, East Tower, 951 E. Byrd Street, Richmond,
Virginia 23219 in such amounts as specified in Schedule I
attached hereto.
4.
Offering by Underwriters . It is understood that the
Underwriters propose to offer the Notes subject to this Agreement
for sale to the public as set forth in the Prospectus.
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(a)
It is understood that the Underwriters will solicit offers to
purchase the Notes only as follows: prior to the time the
Underwriters have received the [INSERT DOCUMENT ON WHICH INVESTORS
ARE TO CONFIRM SALES], the Underwriters may, in compliance with the
provisions of this Agreement, solicit offers to purchase Notes;
provided, that the Underwriters shall not accept any such offer to
purchase a Note or any interest in any Note or Mortgage Loan or
otherwise enter into any Contract of Sale for any Note, any
interest in any Note or any Mortgage Loan prior to the
investor’s receipt of [INSERT DOCUMENT ON WHICH INVESTORS ARE
TO CONFIRM SALES].
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(b)
It is understood that the Underwriters will not enter into a
Contract of Sale with any investor until the investor has received
the Approved Offering Materials with respect to the Notes which are
the subject of such Contract of Sale. For purposes of
this
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Agreement, Contract of Sale has
the same meaning as in Rule 159 of the Rules and Regulations and
all Commission guidance relating to Rule 159, including without
limitation the Commission’s statement in Act Release No.
33-8501 that “a contract of sale can occur under the federal
securities laws before there is a bilateral contract under state
law, for example when a purchaser has taken all actions necessary
to be bound but a seller’s obligations remain conditional
under state law.” Each Contract of Sale for a Note entered
into by the Underwriters shall expressly provide in writing that
the Depositor is not obligated to issue such Note or any similar
security and that the obligation of the Underwriters to deliver
such Note is subject to the terms and conditions of this Agreement
and the availability of such Note when, as and if issued by the
Depositor.
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(c)
It is understood that the Underwriters may provide to prospective
investors certain Issuer Free Writing Prospectuses and prepare and
provide to prospective investors other Free Writing Prospectuses,
subject to the following conditions:
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(i)
Unless preceded or accompanied by a prospectus satisfying the
requirements of Section 10(a) of the Act, the Underwriters shall
not convey or deliver any written communication to any person in
connection with the initial offering of the Notes, unless such
“written communication” (as such term is defined in
Rule 405 under the Act) (i) is made in reliance on Rule 134 under
the Act, (ii) constitutes a prospectus satisfying the requirements
of Rule 430B under the Act or (iii) constitutes a Free Writing
Prospectus (as defined below). [The Underwriters shall not convey
or deliver in connection with the initial offering of the Notes any
ABS informational and computation materials (as defined below), in
reliance upon Rules 167 and 426 under the Act.]
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(ii)
The Underwriters shall comply with all applicable laws and
regulations in connection with the use of Free Writing
Prospectuses, including but not limited to Rules 164 and 433 of the
Rules and Regulations and all Commission guidance relating to Free
Writing Prospectuses, including but not limited to Commission
Release No. 33-8591. For purposes hereof, “Issuer
Information” shall have the meaning given such term in Rule
433 (h) of the Rules and Regulations, including the information
specified in footnote 271 of Commission Release No. 33-8591 and
“Derived Information” shall refer to information of the
type described in clause (5) of such footnote 271 when prepared by
the Underwriter. Consistent with such definition, “Issuer
Information” shall not be deemed to include any information
in a Free Writing Prospectus solely by reason of the
Depositor’s review of the materials pursuant to subsection
(e) below. For purposes hereof, “ ABS Informational and
Computational Materials ” shall have the meaning given
such term in Item 1101 of Regulation AB.
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(d)
All Free Writing Prospectuses provided to prospective investors,
whether or not filed with the Commission, shall bear a legend
including the following statement:
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“The issuer has filed a
registration statement (including a prospectus) with the SEC for
the offering to which this free writing
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prospectus relates. Before you
invest, you should read the prospectus in that registration
statement and other documents the issuer has filed with the SEC for
more complete information about the issuer and this offering. You
may get these documents for free by visiting EDGAR on the SEC Web
site at www.sec.gov. Alternatively, the issuer, any underwriter or
any dealer participating in the offering will arrange to send you
the prospectus if you request it by calling toll-free
1-800-xxx-xxxx.
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This free writing prospectus does
not contain all information that is required to be included in the
base prospectus and the prospectus supplement.
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The asset-backed securities
referred to in this free writing prospectus are being offered when,
as and if issued. In particular, you are advised that asset-backed
securities, and the asset pools backing them, are subject to
modification or revision (including, among other things, the
possibility that one or more classes of securities may be split,
combined or eliminated), at any time prior to issuance or
availability of a final prospectus. As a result, you may commit to
purchase securities that have characteristics that may change, and
you are advised that all or a portion of the securities may not be
issued that have the characteristics described in this free writing
prospectus. Our obligation to sell securities to you is conditioned
on the securities having the characteristics described in this free
writing prospectus. If that condition is not satisfied, we will
notify you, and neither the issuer nor [the] [any] underwriter will
have any obligation to you to deliver all or any portion of the
securities which you have committed to purchase, and there will be
no liability between us as a consequence of the
non-delivery.
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This free writing prospectus is
being delivered to you solely to provide you with information about
the offering of the asset-backed securities referred to in this
free writing prospectus and to solicit an indication of your
interest in purchasing such securities, when, as and if issued. Any
such indication of interest will not constitute a contractual
commitment by you to purchase any of the
securities.”
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(e)
The Underwriters shall deliver to the Depositor and its counsel, no
later than the business day prior to the proposed date of first use
thereof, any Free Writing Prospectus prepared by or on behalf of
the Underwriter that contains any Issuer Information and request
that such Free Writing Prospectus be filed with the Commission
within the time period specified in the Rules and
Regulations.
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(f)
Each Underwriter represents and warrants to the Depositor that the
Free Writing Prospectuses to be furnished to the Depositor by the
Underwriters pursuant to Section 4(e) above will constitute all
Free Writing Prospectuses of the type required to be
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delivered pursuant to Section
4(e) that were furnished to prospective investors of the Notes by
the Underwriters in connection with its offer and sale of the
Notes. If the Underwriter does not provide any Free Writing
Prospectuses to the Depositor pursuant to subsection (e) above, the
Underwriter shall be deemed to have represented, as of the Delivery
Date, that it did not provide any prospective investors with any
information in written or electronic form in connection with the
offering of the Notes that is required to be filed with the
Commission in accordance with the Rules and Regulations.
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(g)
Each Underwriter represents and warrants to the Depositor that each
Free Writing Prospectus required to be provided by it to the
Depositor pursuant to Section 4(e), when viewed together with all
other Approved Offering Materials, did not, as of the Time of Sale,
and will not as of the Delivery Date, include any untrue statement
of a material fact or 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 the
Underwriter makes no representation to the extent such
misstatements or omissions were the result of any inaccurate Issuer
Information supplied by the Depositor or the Seller to the
Underwriter prior to the Time of Sale.
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(h)
Each 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.
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(i)
The Underwriters each agree to retain all Free Writing Prospectuses
that they have used and that are not required to be filed pursuant
to this Section 4 for a period of three years following the
initial bona fide offering of the Notes.
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(j)
In the event that the Depositor or any Underwriter becomes aware
that, as of the Time of Sale, any Free Writing Prospectus delivered
to a purchaser of a Note contained any untrue statement of a
material fact or 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 ”), the Underwriter or the Depositor, as
appropriate, shall notify the other parties to the is Agreement
thereof within one business day after discovery thereof. In
connection with the discovery of any Defective Free Writing
Prospectus:
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(i)
The party responsible for the information to be corrected, if
requested by the Depositor or an Underwriter, as appropriate, shall
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
”);
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(ii)
The Underwriters shall deliver the Corrected Free Writing
Prospectus to each purchaser of a Note which received the Defective
Free
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Writing Prospectus prior to
entering into an agreement to purchase any Notes; and
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(iii)
The Underwriters shall notify such purchaser in a prominent fashion
that the prior agreement to purchase Notes has been terminated, and
of such purchaser’s rights as a result of termination of such
agreement and shall provide such purchaser with an opportunity to
affirmatively agree to purchase such Notes on the terms described
in the Corrected Free Writing Prospectus.
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(k)
The Representative covenants with the Depositor that after the
final Prospectus is available each of the Underwriters shall not
distribute any written information concerning the Notes to a
prospective investor of Notes unless such information is preceded
or accompanied by the Prospectus or the required notice pursuant to
Rule 173 of the Act has been delivered.
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5.
Covenants of the Depositor . The Depositor covenants and
agrees with the Underwriters participating in the offering of the
Notes that:
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(a)
Immediately following the execution of this Agreement, the
Depositor will prepare a Prospectus Supplement setting forth the
amount of Notes and the terms thereof not otherwise specified in
the Base Prospectus, the price at which such Notes are to be
purchased by the Underwriters, from the Depositor, either the
initial public offering price or the method by which the price at
which such Notes are to be sold will be determined, the selling
concessions and reallowances, if any, and such other information as
the Representative and the Depositor deem appropriate in connection
with the offering of such Notes, but the Depositor will not file,
for so long as the delivery of a Prospectus is required in
connection with the offering or sale of
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