EX-1.4 3 v056302_ex1-4.htm
FIRST HORIZON ASSET SECURITIES INC.
 
MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2006-FA7
 
TERMS AGREEMENT
(to Underwriting Agreement,
dated March 24, 2006
among the Company, First Horizon
Home Loan Corporation
and the Underwriter)
 
First Horizon Asset Securities Inc. 
  Charlotte, North Carolina
4000 Horizon Way
 October 24, 2006
Irving, Texas 75063   
 
Banc of America Securities LLC (the “Underwriter”) agrees, subject to the terms and provisions herein and of the captioned Underwriting Agreement (the “Underwriting Agreement”), to purchase such Classes of Series 2006-FA7 Certificates specified in Section 2(a) hereof (the “Offered Certificates”). This letter supplements and modifies the Underwriting Agreement solely as it relates to the purchase and sale of the Offered Certificates described below. The Series 2006-FA7 Certificates are registered with the Securities and Exchange Commission by means of an effective Registration Statement (No. 333-132046). Capitalized terms used and not defined herein have the meanings given them in the Underwriting Agreement.
 
Section 1. The Mortgage Pool: The Series 2006-FA7 Certificates shall evidence the entire beneficial ownership interest in a mortgage pool (the “Mortgage Pool”) of conventional, fixed rate, first lien, fully amortizing one- to four-family residential mortgage loans (the “Mortgage Loans”) having the following characteristics as of October 1, 2006 (the “Cut-off Date”):
 
(a) Aggregate Principal Amount of the Mortgage Pool: Approximately $217,029,800 aggregate principal balance as of the Cut-off Date, subject to an upward or downward variance of up to 5%, the precise aggregate principal balance to be determined by the Company.
 
(b) Original Terms to Maturity: The original term to maturity of each Mortgage Loan shall be between 240 and 360 months.
 
Section 2. The Certificates: The Offered Certificates shall be issued as follows:
 
(a) Classes: The Offered Certificates shall be issued with the following Class designations, interest rates and principal balances, subject in the aggregate to the variance referred to in Section 1(a) and, as to any particular Class, to an upward or downward variance of up to 5%:
 
 

202970 FHAMS 2006-FA77
BofA Underwriting Terms Agreement
 
 
 
 
 
Class
 
Class Principal Balance
 
Interest Rate
Class Purchase
Price Percentage
 
Required Ratings
Fitch
S&P
Class B-1
$4,667,000.00
6.2500000000%
99.87500000%
AA
AA-
Class B-2
$1,953,000.00
6.2500000000%
98.500000000%
A
A-
Class B-3
$1,411,000.00
6.2500000000%
90.000000000%
BBB
N/A
 
(b) The Offered Certificates shall have such other characteristics as described in the related Prospectus.
 
The Underwriter agrees, subject to the terms and conditions contained herein and in the Underwriting Agreement, to purchase the principal balances of the Classes of Certificates specified opposite its name below:

 
Series 2006-FA7
Designation
Banc of America Securities LLC ($)
Class B-1
$4,667,000.00
Class B-2
$1,953,000.00
Class B-3
$1,411,000.00
 
Section 3. Purchase Price: The Purchase Price for each Class of the Offered Certificates shall be the Class Purchase Price Percentage therefor (as set forth in Section 2(a) above) of the initial Class Principal Balance thereof plus accrued interest at the applicable per annum Pass-Through Rate set forth in 2(a) above from and including the Cut-off Date up to, but not including, October 30, 2006 (the “Closing Date”).
 
Section 4. Required Ratings: The Offered Certificates shall have received at least the Required Ratings from Fitch, Inc. (“Fitch”) and Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc. (“S&P”) set forth in the table in Section 2(a).
 
Section 5. Tax Treatment: One or more elections will be made to treat the assets of the Trust Fund as a REMIC.
 
If the foregoing is in accordance with your understanding of our agreement, please sign and return to the undersigned a counterpart hereof, whereupon this letter and your acceptance shall represent a binding agreement among the Underwriter, First Horizon Home Loan Corporation and the Company
 
 

202970 FHAMS 2006-FA77
BofA Underwriting Terms Agreement
 
2
 
     
  Very truly yours, 
   
  BANC OF AMERICA SECURITIES LLC
 
 		  
 		  
 
  By:   ____________________________
  Name:
  Title:
 
 
The foregoing Agreement is
hereby confirmed and accepted
as of the date first above written. 
    
     
FIRST HORIZON ASSET SECURITIES INC.     
     
By: _______________________________   
Name: Alfred Chang 
    
Title: Vice President 
    
     
     
FIRST HORIZON HOME LOAN CORPORATION   
     
By: _______________________________    
Name: Terry L. McCoy 
    
Title: Executive Vice President 
    
     
 



 
 
 
 

202970 FHAMS 2006-FA77
BofA Underwriting Terms Agreement
 
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