Terms Agreement for SACO I Trust 2006-1 Mortgage-Backed Notes Between Bear Stearns Asset Backed Securities I LLC and Bear, Stearns & Co. Inc.
Bear Stearns Asset Backed Securities I LLC and Bear, Stearns & Co. Inc. entered into this agreement for the purchase and sale of mortgage-backed notes (Series 2006-1) issued by SACO I Trust 2006-1. The Underwriter, Bear, Stearns & Co. Inc., agrees to buy specific classes of notes at set prices and resell them. The notes are backed by home equity lines of credit (HELOCs) and have specified ratings and payment terms. The agreement is subject to the terms of a prior Underwriting Agreement and includes details on credit enhancements and payment schedules.
EXHIBIT 1.0
BEAR STEARNS ASSET BACKED SECURITIES I LLC
SACO I Trust 2006-1
Mortgage-Backed Notes Series 2006-1
TERMS AGREEMENT
Dated: as of February 24, 2006
| To: | BEAR STEARNS ASSET BACKED SECURITIES I LLC | |||||
| Re: | Underwriting Agreement, dated December 12, 2005 |
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| Underwriter: | Bear, Stearns & Co. Inc. (the “Underwriter”) |
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| Series Designation: | Series 2006-1 |
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Class Designation Schedule of the Notes: Class A, Class M-1, Class M-2, Class M-3 and Class M-4 Notes
Terms of the Notes:
| Class | Original Note | Pass-Through |
| Class A | $286,065,000 | Adjustable |
| Class M-1 | $4,651,000 | Adjustable |
| Class M-2 | $4,651,000 | Adjustable |
| Class M-3 | $3,721,000 | Adjustable |
| Class M-4 | $4,031,000 | Adjustable |
The Notes purchased by the Underwriter will be offered from time to time by the Underwriter in negotiated transactions at varying prices to be determined at the time of sale.
Defined Terms: Terms not otherwise defined herein shall have the meanings given to such terms in the Indenture, dated as of February 28, 2006, among SACO I Trust 2006-1, as issuer, LaSalle Bank National Association, as securities administrator and Citibank, N.A., as indenture trustee.
Form of Notes Being Purchased by the Underwriter: Book-Entry.
Payment Dates: The 25th day of each month or, if such 25th day is not a business day, the next succeeding business day beginning in March 2006.
Note Rating for the Notes Being Purchased by the Underwriter:
| Class | Ratings | |
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| S&P | Moody’s |
| Class A | AAA | Aaa |
| Class M-1 | A | A3 |
| Class M-2 | A- | Baa1 |
| Class M-3 | BBB+ | Baa2 |
| Class M-4 | BBB | Baa3 |
Mortgage Assets: The HELOCS to be included in the Trust Fund are as described in Annex A hereto.
Purchase Price: The aggregate purchase price payable by the Underwriter for the Notes covered by this Agreement will be $ * (plus $ * in accrued interest).
Credit Enhancement: Excess spread, overcollateralization and subordination as described in the Prospectus Supplement. Also the Class A Notes the benefit from a financial guaranty insurance policy, as described in the Prospectus Supplement.
Closing Date: February 28, 2006.
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* contact Bear, Stearns & Co. Inc. for pricing information
The undersigned, as Underwriter, agrees, subject to the terms and provisions of the above-referenced Underwriting Agreement, which is incorporated herein in its entirety and made a part hereof, to purchase the respective principal amounts of the Classes of the above-referenced Series of Notes as set forth herein.
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| BEAR, STEARNS & CO. INC. | ||||||
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| BEAR STEARNS ASSET BACKED | ||||||
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| By: | /s/ Mary P. Haggerty | |||||
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| Name: | Mary P. Haggerty | |||||
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| Title: | Vice President | |||||
Annex A
Mortgage Loan Schedule
[Available Upon Request]
