Terms Agreement for Sale of Multi-Class Mortgage Pass-Through Certificates by ABN AMRO Mortgage Corporation to Underwriters

Summary

This agreement is between ABN AMRO Mortgage Corporation and a group of underwriters, including Goldman, Sachs & Co., for the sale of approximately $255 million in Multi-Class Mortgage Pass-Through Certificates. The certificates are issued under a Pooling and Servicing Agreement and will be sold to the underwriters at a specified price, who will then offer them to the public. The agreement outlines the terms of the sale, including pricing, interest rates, ratings, and closing details. The transaction is set to close on February 27, 2003, in New York City.

EX-1.2 4 d129495.txt TERMS AGREEMENT EXECUTION PASS-THROUGH CERTIFICATES ABN AMRO MORTGAGE CORPORATION, DEPOSITOR TERMS AGREEMENT Dated: February 25, 2003 To: ABN AMRO Mortgage Corporation Re: Underwriting Agreement, dated as of January 23, 2003 (the "Underwriting Agreement") Ladies and Gentlemen: The undersigned (being herein called the "Underwriters"), understand that ABN AMRO Mortgage Corporation, a Delaware corporation (the "Company"), proposes to issue and sell approximately $255,030,829 original principal amount of Multi-Class Mortgage Pass-Through Certificates described below (the "Certificates"). The Certificates will be issued under a Pooling and Servicing Agreement dated as of February 1, 2003 among the Company, as depositor, ABN AMRO Mortgage Group, Inc., as servicer and JPMorgan Chase Bank, as trustee. The terms of the Certificates are summarized below and are more fully described in the Company's Prospectus Supplement prepared with respect to the Certificates. All the provisions (including defined terms) contained in the Underwriting Agreement are incorporated by reference herein in their entirety and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. The Closing Time referred to in Section 2 of the Underwriting Agreement shall be 10:00 a.m., New York, New York time, on February 27, 2003 and the location of the closing shall be the New York City offices of Thacher Proffitt & Wood. The opinion referred to in Section 4(b) of the Underwriting Agreement shall be delivered by Thacher Proffitt & Wood, as counsel for the Company. Subject to the terms and conditions set forth or incorporated by reference herein, the Company hereby agrees to sell and the Underwriters agree to purchase, severally and not jointly, the respective original principal amounts of Certificates set forth opposite their names in Exhibit I hereto at the purchase price set forth below. The Underwriters will offer the Certificates for sale upon the terms and conditions set forth in the Prospectus and the Prospectus Supplement. Subject to the terms and conditions set forth or incorporated by reference herein, the Underwriters will pay for the Certificates at the time and place and in the manner set forth in the Underwriting Agreement. The Underwriters will pay their pro rata share (based upon the principal amount of Offered Certificates each of the Underwriters has agreed to purchase as indicated on Exhibit I hereto) of all fees and expenses relating to any letter of independent certified public accountants delivered in connection with the Computational Materials. Series Designation: ABN AMRO Mortgage Corporation Multi-Class Mortgage Pass-Through Certificates, Series 2003-2 Terms of the Certificates and Underwriting Compensation: - ------------------------------------------------------- Original Principal or Price to Class Notional Amount* Certificate Rate Public ----- ---------------- ---------------- ------ IA-1 $25,000,000 5.00% ** IA-2 $55,064,963 4.50% ** IA-3 $5,506,496 5.00% ** IA-4 $4,811,037 5.00% ** IIA-1 $107,882,177 (1) ** IIA-2 $58,844,824 (1) ** A-P $870,729 *** ** A-X $1,496,503 5.50% ** M $1,534,000 (2) ** B-1 $511,000 (2) ** B-2 $512,000 (2) ** R $100 5.00% ** - ---------- * Approximate. Subject in the case of each Class to a permitted variance of plus or minus 5%. ** The Certificates are being offered by the Underwriters from time to time in negotiated transactions or otherwise at varying prices to be determined, in each case, at the time of sale. *** The Class A-P Certificates are principal-only certificates and are not entitled to payments of interest. (1) The Certificate Rate for certificates with variable rates of interests are set forth in the table below: -2- Class Formula Initial Maximum Minimum ----- ------- ------- ------- ------- Class IIA-1 LIBOR + 0.50% 1.86875% 8.50% 0.50% 14.666667% - (LIBOR x Class IIA-2 1.833333) 12 ###-###-####% 14.666667% 0.00% (2) The Certificate Rate for the Class M, Class B-1 and Class B-2 Certificates will vary from 5.00% to 5.50% per annum. The initial Certificate Rate for the Class M, Class B-1 and Class B-2 Certificates will be approximately 5.330226112% per annum. Certificate Rating: AAA on the Class A Certificates and the Class R Certificate by each of Fitch Ratings ("Fitch") and Standard & Poor's Ratings Service, a division of The McGraw-Hill Companies, Inc. ("S&P"). AA on the Class M Certificates by S&P. A on the Class B-1 Certificates by S&P. BBB on the Class B-2 Certificates by S&P. REMIC Election: The Company intends to cause an election to be made to treat each of REMIC I, REMIC II and REMIC III as "real estate mortgage investment conduits" (each, a "REMIC") for federal income tax purposes. All of the Certificates issued by REMIC III, other than the Class R Certificate, will represent ownership of REMIC "regular interests" in REMIC III. The Class R Certificate will represent ownership of the REMIC "residual interest" in each of REMIC I, REMIC II and REMIC III. Credit Enhancement: Senior/Subordinated: Shifting interest. Cut-off Date: The Cut-off Date is February 1, 2003. Remittance Date: The 25th day of each month, or if such 25th day is not a Business Day, the first Business Day immediately following, commencing March 25, 2003. -3- Purchase Price: The purchase price payable by the Underwriter for the Certificates is 101.215% of the aggregate principal balance of the Certificates as of the Closing Date plus accrued interest, as applicable, from February 1, 2003 up to but not including the Closing Date. Information Provided by Goldman, Sachs & Co.: The information described in the last sentence of Section 6(b) of the Underwriting Agreement constitutes information furnished in writing by Goldman, Sachs & Co. on behalf of the Underwriters expressly for use in the Registration Statement relating to such Series of Certificates as originally filed or in any amendment thereof, any related preliminary prospectus or the Prospectus or in any amendment thereof or supplement thereto, as the case may be. Underwriting Commission: Notwithstanding anything to the contrary in the Underwriting Agreement, no additional underwriting commission shall be payable by the Company to the Underwriter in connection with the purchase of the Certificates. Closing Date and Location: February 27, 2003 at the New York City offices of Thacher Proffitt & Wood. -4- Please confirm your agreement by having an authorized Officer sign a copy of this Agreement in the space set forth below and returning a signed copy to us. GOLDMAN, SACHS & CO. By: /s/ David J. Rosenblum ---------------------------------- Name: David J. Rosenblum Title: Managing Director ABN AMRO FINANCIAL SERVICES, INC. By: /s/ Maria N. Fregosi ---------------------------------- Name: Maria N. Fregosi Title: Group Senior Vice President ACCEPTED: ABN AMRO MORTGAGE CORPORATION By: /s/ Daniel J. Fischer ------------------------------------------------- Name: Daniel J. Fischer Title: Vice President LASALLE BANK CORPORATION By: /s/ Thomas G. Dolan ------------------------------------------------- Name: Thomas G. Dolan Title: Senior Vice President By: /s/ Marty Penstein ------------------------------------------------- Name: Marty Penstein Title: Executive Vice President EXHIBIT I Original Principal Name Amount of Certificates Goldman, Sachs & Co. $255,030,829 Total $255,030,829 100% ============ ====