Computational Materials
UACSC 2000-D Owner Trust
$44,525,000 Class A-1 Automobile Receivable Backed Notes
$139,250,000 Class A-2 Automobile Receivable Backed Notes
$184,625,000 Class A-3 Automobile Receivable Backed Notes
$116,100,000 Class A-4 Automobile Receivable Backed Notes
$25,500,000 Class B Automobile Receivable Backed Notes
UAC Securitization Corporation
Seller
Union Acceptance Corporation
Servicer
Computational
Materials
The information contained in the attached computational materials is
preliminary and will be replaced by the prospectus supplement and accompanying
prospectus applicable to the UACSC 2000-D Owner Trust and any other information
subsequently filed with the Securities and Exchange Commission. You should make
your investment decision with respect to the securities described in the
computational materials based solely upon the information contained in the
prospectus supplement and accompanying prospectus.
These computational materials do not constitute an offer to sell or the
solicitation of an offer to buy and we will not sell the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such jurisdiction.
The securities may not be sold and no offer to buy will be accepted prior to the
delivery of the prospectus supplement and accompanying prospectus relating to
the securities.
The information in the attached computational materials is preliminary,
limited in nature and subject to completion or amendment. We do not claim that
the securities will actually perform as described in any scenario presented.
The information in the computational materials has been prepared by the
seller. The underwriters, Banc of America Securities LLC ("Banc of America"),
Salomon Smith Barney ("Salomon") or any of their affiliates do not make any
representation as to the accuracy or completeness of the information in the
computational materials.
The information in the computational materials addresses only certain
aspects of the characteristics of the securities and does not provide a complete
assessment of the securities. As such, the information may not reflect the
impact of all structural characteristics of the securities. The assumptions
underlying the information, including structure, trust property and collateral,
may be changed from time to time to reflect changed circumstances.
The data supporting the information in the computational materials has been
obtained from sources that the underwriters believe to be reliable, but the
underwriters do not guarantee the accuracy of or computations based on such
data. The underwriters and their affiliates may engage in transactions with the
seller or its affiliates while the information is circulating. The underwriters
may act as principal in transactions with you, and accordingly, you must
determine the appropriateness for you of such transactions and address any
legal, tax, or accounting considerations applicable to you. The underwriters
shall not be a fiduciary or advisor, unless they have agreed in writing to
receive compensation specifically to act in such capacities. If you are subject
to the Employee Retirement Income Security Act of 1974, as amended, the
information in the computational materials is being furnished on the condition
that it will not form a primary basis for any investment decision.
Although a registration statement (including a form of prospectus) relating
to the securities described in the information in the computational materials
has been filed with the Securities and Exchange Commission and is effective, the
prospectus supplement and accompanying prospectus relating to the securities
described in the information in the computational materials have not been filed
with the Securities and Exchange Commission. You must refer to the prospectus
supplement and accompanying prospectus for definitive information on any matter
described in the computational materials. Your investment decision should be
based only on the data in the prospectus supplement and accompanying prospectus.
The prospectus supplement and accompanying prospectus contain data that is
current as of the applicable publication dates and after publication may no
longer be complete or current. The prospectus supplement and accompanying
prospectus may be updated by information subsequently filed with the Securities
and Exchange Commission.
You may obtain the prospectus supplement and accompanying prospectus by
contacting the Banc of America Syndicate Desk at (704) 386-9690 or the Salomon
Syndicate Desk at (212) 723-6171.
[THE FOLLOWING LANGUAGE APPEARS AT THE BOTTOM OF EVERY PAGE HEREAFTER]
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your
financial advisor at Banc of America or Salomon immediately.
<PAGE>
UACSC 2000-D Owner Trust
Computational Materials
Subject to Revision
Dated as of November 9, 2000
SUMMARY OF TERMS
The definitions or references to capitalized terms used in these materials
can be found on the pages indicated in the "Index of Terms" on page 26 of these
materials.
Issuer
The UACSC 2000-D Owner Trust, a Delaware business trust, will issue the notes
described in these materials.
Seller
UAC Securitization Corporation is the seller and the depositor of the trust. The
seller will transfer the automobile receivables and related property to the
trust.
Servicer
Union Acceptance Corporation ("UAC") will act as the servicer of the trust. The
servicer will receive and apply payments on the automobile receivables, service
the collection of the receivables and direct the trustees to make the
appropriate payments to the noteholders and the certificateholder. The servicer
will receive a monthly servicing fee as compensation for its services.
Indenture Trustee
The Bank of New York will serve as the indenture trustee under the terms of an
indenture between the trust and the indenture trustee.
Owner Trustee
First Union Trust Company, National Association will serve as the owner trustee
under the terms of a trust and servicing agreement between the seller, the
servicer and the owner trustee.
Cut-Off Date
The cut-off date is the close of business on or about November 16, 2000.
Receivables included in the trust will have been initially acquired by UAC on or
before this date.
Statistical Cut-Off Date
The statistical cut-off date is the close of business on October 31, 2000. This
is the date we used in preparing the statistical information presented in these
materials. As of such date the aggregate principal balance of the receivables
was $434,340,011.52. Such statistical information does not reflect the inclusion
of additional receivables in the aggregate principal amount of approximately
$75,659,988.48, which will have been initially acquired by UAC after October 31,
2000 through the cut-off date.
Closing Date
The closing date will be on or about November 21, 2000.
The Notes
On the closing date, the trust will issue the class A-1 notes, the class A-2
notes, the class A-3 notes, the class A-4 notes and the class B notes, as
described below, under an indenture between the trust and the indenture trustee.
We are offering the notes for sale in these materials. The notes are
non-recourse obligations of the trust and are secured by certain assets of the
trust. The interest rates and initial principal balances of the notes are as
follows:
<PAGE>
Interest Rate Initial Aggregate
(per annum) Principal Balance
class A-1 notes $44,525,000
class A-2 notes $139,250,000
class A-3 notes $184,625,000
class A-4 notes $116,100,000
class B notes $25,500,000
Payment Date
The trust will pay interest and principal on the notes on the eighth calendar
day of each month or, if such day is not a business day, on the next business
day. The payments will begin on January 8, 2001 and will be made to holders of
record of the notes as of the record date, which will be the business day before
the payment date. However, if definitive notes are issued, the record date will
be the last day of the collection period related to the payment date. The
collection period with respect to any payment date (other than the initial
payment date) is the calendar month immediately preceding the calendar month in
which such payment date occurs. The collection period with respect to the
initial payment date will begin on November 17, 2000, and end on December 31,
2000.
Interest on the Notes
Interest on the class A-1 notes will be calculated on the basis of a 360-day
year and the actual number of days from the previous payment date through the
day before the related payment date. Interest on all other classes of notes will
be calculated on the basis of a 360-day year consisting of twelve 30-day months.
See "Yield and Prepayment Considerations" in these materials.
Class A-1 Monthly Interest. Generally, the amount of monthly interest
distributable to the class A-1 noteholders on each payment date is the product
of:
(1) 1/360th of the interest rate for the class A-1 notes;
(2) the actual number of days from the previous payment date through the
day before the related payment date; and
(3) the aggregate outstanding principal balance of the class A-1 notes on
the preceding payment date (after giving effect to all payments to
noteholders on such date).
Monthly Interest for Other Notes. Generally, the amount of monthly interest
distributable to each class of noteholders (other than the class A-1
noteholders) on each payment date is the product of:
(1) one-twelfth of the interest rate applicable to such class of notes;
and
(2) the aggregate outstanding principal balance of such class on the
preceding payment date (after giving effect to all payments to
noteholders on such date).
Monthly Interest on First Payment Date. The amount of interest distributable on
the first payment date of January 8, 2001 will be based upon the initial
aggregate principal balance of the applicable class of notes and will accrue
from the closing date through the day before the first payment date (and in the
case of all of the notes other than the class A-1 notes, assuming that every
month has 30 days).
Note Principal
The trust will distribute principal on each payment date to the noteholders of
record as of the record date. Generally, the amount of monthly principal the
trust will pay is equal to the decrease in the outstanding principal balance of
the receivables pool during the preceding calendar month.
Generally, principal will be distributed to the noteholders in the order of the
alpha-numeric designation of each class of the notes, starting with the class
A-1 notes and ending with the class B notes. For example, no principal will be
distributed to the class A-2 noteholders until the outstanding principal balance
of the class A-1 notes has been reduced to zero. No principal will be
distributed to the class B noteholders until the principal of all of the class A
notes has been paid in full. See "Risk Factors - Some Notes Are More at Risk
Than Others If There Are Losses on the Receivables" in these materials.
The trust must pay the outstanding principal balance of each class of notes, to
the extent not previously paid, by the final maturity date for such class of
notes as follows:
Final Maturity Date
-------------------
class A-1 notes September 10, 2001
class A-2 notes September 8, 2003
class A-3 notes October 11, 2005
class A-4 notes April 9, 2007
class B notes July 8, 2008
Since the rate of payment of principal of each class of notes depends greatly
upon the rate of payment of principal on the receivables (including voluntary
prepayments and principal paid in respect of defaulted receivables and purchased
receivables), the final payment in respect of each class of notes could occur
significantly earlier than the respective final maturity dates.
The Certificate
In addition to the notes, the trust will issue an automobile receivable backed
certificate pursuant to the trust and servicing agreement. The certificate
represents an undivided beneficial ownership interest in the trust and will be
retained by the seller. We are not offering the certificate for sale in this
offering.
The Trust Assets
The trust will pledge its assets to the indenture trustee as collateral for the
repayment of the notes. The trust assets will include:
o a pool of simple and precomputed interest installment sale and
installment loan contracts originated in various states in the United
States of America, secured by new and used vehicles, with an
anticipated aggregate principal amount on November 16, 2000, of
$510,000,000;
o certain monies (including accrued interest) due in respect of the
receivables as of and after November 16, 2000, but excluding accrued
interest paid before the closing date;
o security interests in the related vehicles financed through the
receivables;
o funds on deposit in a collection account and a spread account;
o any proceeds from claims on certain insurance policies relating to the
financed vehicles or the related obligors;
o any lender's single interest insurance policy;
o an unconditional and irrevocable insurance policy issued by MBIA
Insurance Corporation guaranteeing payments of principal and interest
on the notes; and
o certain rights under the agreements by which the receivables are sold
from UAC to the seller and from the seller to the trust.
The trust will acquire its assets from the seller pursuant to the trust and
servicing agreement. See "Formation of the Trust" in these materials.
Spread Account; Rights of the Certificateholder
The trust will establish a spread account on the closing date for the benefit of
the noteholders and the insurer. On the closing date we will deposit into the
spread account the amount, if any, required by the insurer as an initial
deposit. The spread account will hold the excess, if any, of the collections on
the receivables over the amounts which the trust is required to pay to the
noteholders, the servicer and the insurer. The amount of funds available for
payment to noteholders on any payment date will consist of funds from the
following sources:
(1) payments received from obligors in respect of the receivables (net of
any amount required to be deposited to the payahead account in respect
of precomputed receivables);
(2) any net withdrawal from the payahead account in respect of precomputed
receivables;
(3) interest earned on funds on deposit in the collection account;
(4) liquidation proceeds received in respect of receivables;
(5) advances received from the servicer in respect of interest on certain
delinquent receivables; and
(6) amounts received in respect of required repurchases or purchases of
receivables by UAC or the servicer.
The indenture trustee will withdraw funds from the spread account (up to the
amount on deposit in the spread account) and then draw on the policy, if the
amount of available funds for any payment date is not sufficient to pay:
(1) the amounts owed to the servicer (including the monthly servicing fee
and reimbursement for advances made by the servicer to the trust); and
(2) the required payments of interest and principal to the noteholders
(including required payments of interest to the class B noteholders
after an event of default under the indenture).
If the amount on deposit in the spread account is zero, after any withdrawals
for the benefit of the noteholders, and there is a default under the policy, any
remaining losses on the receivables will be borne directly by the class B
noteholders (up to the full class B note balance at the time a loss is incurred)
and then by the class A noteholders pro rata (to the extent of the outstanding
class or classes of class A notes at such time). See "Risk Factors - You May
Incur a Loss if there is a Default Under the Policy" and "- Some Notes are More
at Risk than Others if there are Losses on the Receivables" in these materials.
The trust will be required to maintain a specified amount on deposit in the
spread account through the deposit of excess collections, if any, on the
receivables. The required spread amount will be set forth in the indenture.
In no event will the amount on deposit in the spread account exceed the
aggregate outstanding principal balance of the notes.
Any amount on deposit in the spread account on any payment date in excess of the
required spread amount (after all other required deposits to and withdrawals
from the spread account have been made) will be distributed to the
certificateholder. Any such distribution to the certificateholder will no longer
be an asset of the trust.
We intend for the amount on deposit in the spread account to grow over time to
the required spread amount through the deposit of the excess collections, if
any, on the receivables. However, we cannot assure you that the amount on
deposit in the spread account will actually grow to the required spread amount.
If net losses on the receivables pool exceed the levels set forth in the
insurance and reimbursement agreement among the seller, the trust, the UAC
funding subsidiaries participating in the transaction (the "Funding
Subsidiaries"), UAC, in its individual capacity and as servicer, and the
insurer, the required spread amount will be increased to the amount set forth in
the indenture. The required spread amount may be increased:
(1) if the servicer defaults, fails to perform its obligations, or
breaches a material representation under the trust and servicing
agreement, the indenture or the insurance and reimbursement agreement;
or
(2) upon the occurrence of certain other events described in the insurance
and reimbursement agreement generally involving the performance of the
receivables.
The Policy
The seller will obtain an unconditional and irrevocable insurance policy.
Subject to the terms of the policy, the insurer will guarantee the payment of
monthly interest and monthly principal on the notes up to the policy amount.
In addition, the policy will cover any amount paid or required to be paid by the
trust to the noteholders, which amount is sought to be recovered as a voidable
preference by a trustee in bankruptcy of UAC, the seller or any of the Funding
Subsidiaries under the United States Bankruptcy Code in accordance with a final
nonappealable order of a court having competent jurisdiction.
Policy Amount
The policy amount with respect to any payment date will be:
(a) the sum of:
(1) the monthly servicing fee;
(2) monthly interest;
(3) the lesser of (i) the outstanding aggregate principal balance of all
classes of notes on such payment date (after giving effect to any
distributions of available funds and any funds withdrawn from the
spread account to pay monthly principal on such payment date) and (ii)
the initial aggregate principal balances of the notes minus all
amounts withdrawn from the spread account or drawn on the policy with
respect to principal;
less:
(b) all amounts on deposit in the spread account on such payment date (after
giving effect to any amounts withdrawn from the spread account on such
date).
Insurer
MBIA Insurance Corporation is the insurer and, subject to the terms of the
policy, will unconditionally and irrevocably guarantee the payment of monthly
interest and monthly principal. See "The Insurer" in these materials.
Indenture Default; Control by the Insurer and Noteholders
Certain events will cause events of default under the indenture. If an indenture
default occurs and the insurer is not in default under the policy, the insurer
may declare the indenture default and control the remedy for such default. If an
indenture default occurs and the insurer is in default under the policy, the
noteholders holding notes evidencing at least two-thirds of the outstanding
principal balances of the notes may declare the indenture default and control
the remedy.
The party that controls the remedy may give notice of acceleration and declare
the principal of the notes to be immediately due and payable. The rights and
remedies of the insurer and the noteholders upon the occurrence of an indenture
default may include the right to direct the indenture trustee to liquidate the
property of the trust. See also "Risk Factors - Noteholders Have a Limited Right
to Declare Indenture Defaults or Remedies" in these materials.
Legal Investment
The class A-1 notes will be eligible for purchase by money market funds under
Rule 2a-7 of the Investment Company Act of 1940, as amended.
Optional Redemption
The servicer has the right to purchase all of the receivables as of the last day
of any collection period on which the aggregate principal balance of all classes
of the notes on the related payment date (after the payment of all amounts to be
paid on such payment date) will be equal to or less than 10% of the initial
aggregate principal balance of all classes of notes. We will redeem the notes as
a result of such a purchase of the receivables.
The purchase price for the receivables will be equal to the fair market value of
the receivables; provided that such amount may not be less than the sum of:
(1) 100% of the outstanding aggregate principal balance of all classes of
notes,
(2) accrued and unpaid interest on the outstanding principal balances of
all outstanding classes of notes at the weighted average interest rate
of such notes, and
(3) any amounts due the insurer.
Increase of the Class A-4 Interest Rate and the Class B Interest Rate
If the servicer does not exercise its rights with respect to the optional
redemption on the first payment date that the optional redemption is permitted,
each of the class A-4 interest rate and the class B interest rate will be
increased by 0.50% after such date.
Tax Status
In the opinion of special tax counsel to the seller, for federal income tax
purposes:
o the class A notes will be characterized as debt,
o the class B notes may be characterized as debt or as equity, and
o the trust will not be treated as an association taxable as a
corporation or as a "publicly traded partnership" taxable as a
corporation.
The owner trustee, the noteholders and the certificateholder will agree to treat
the notes as indebtedness for federal income tax purposes. Should the class B
notes be characterized as equity, a non-U.S. person, a tax-exempt entity or an
individual who is a class B noteholder may suffer adverse tax consequences.
Accordingly, such persons may not be suitable investors for the class B notes.
Ratings
On the closing date, each class of notes will be issued only if such class
receives ratings from Moody's Investors Service, Inc. and Standard & Poor's
Ratings Services, a division of The McGraw-Hill Companies, Inc. as follows:
Rating
------
Class Moody's S&P
----- ------- ---
A-1 P-1 A-1+
A-2 Aaa AAA
A-3 Aaa AAA
A-4 Aaa AAA
B Aaa AAA
A rating is not a recommendation to buy, sell or hold the notes and may be
subject to revision or withdrawal at any time by the assigning rating agency.
See "Risk Factors - A Change in the Note Ratings May Adversely Affect the Notes"
in these materials.
ERISA Considerations
The class A notes may be eligible for purchase by employee benefit plans subject
to Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"). Any benefit plan fiduciary considering the purchase of notes should,
among other things, consult with experienced legal counsel in determining
whether all required conditions for such purchase have been satisfied. While
exemptive relief may be available to permit benefit plans to purchase the class
B notes, benefit plan fiduciaries should consult with their tax and legal
advisors regarding the consequences of the class B notes being characterized as
equity for federal income tax purposes. Specifically, benefit plan fiduciaries
should be aware that such characterization would cause income on the class B
notes to be considered "unrelated business taxable income" for tax-exempt
investors, including benefit plans. See "Summary of Terms -Tax Status" in these
materials.
<PAGE>
RISK FACTORS
You should carefully consider the risk factors set forth below as well as
the other investment considerations described in these materials as you decide
whether to purchase the notes.
You May Not Be Able to
Resell the Notes There is currently no secondary market for the
notes. The underwriters currently intend to make a
market to enable resale of the notes, but are
under no obligation to do so. As such, we cannot
assure you that a secondary market will develop
for your notes or, if one does develop, that such
market will provide you with liquidity of
investment or that it will continue for the life
of your notes.
The Notes Are Obligations
of the Trust Only and Are
Not Guaranteed by Any
Other Party The notes are obligations of the trust only and do
not represent an interest in or obligation of the
seller, UAC, any of their affiliates or any other
party or governmental body. Except for the policy,
the notes have not been insured or guaranteed by
any party or governmental body. See The Insurer in
these materials.
The Amount in the Spread
Account May Not Be Sufficient
to Assure Payment of
Principal and Interest If the amount of available funds on any payment
date is not sufficient to pay monthly interest and
monthly principal (after payment of the monthly
servicing fee) to you, the indenture trustee will
withdraw funds from the spread account, up to the
full balance of the funds on deposit in such
account.
The amount on deposit in the spread account may
increase over time to an amount equal to the
required spread amount. We cannot assure you that
such growth will occur or that the balance in the
spread account will always be sufficient to assure
payment in full of monthly interest and monthly
principal. If the amount on deposit in the spread
account is reduced to zero (after giving effect to
all deposits and withdrawals from the spread
account), the indenture trustee will then draw on
the policy, up to the policy amount, in an amount
equal to any remaining shortfall in respect of
monthly interest and monthly principal.
You May Incur a Loss
If There Is a Default
Under the Policy If the spread account is reduced to zero and the
insurer defaults under the policy, the trust will
depend solely on payments on and proceeds from the
receivables to make payments on the notes. The
insurer will default under the policy if it fails
to pay any required amount to the trust when due,
for any reason, including the insolvency of the
insurer.
If the trust does not have sufficient funds to
fully make the required payments to noteholders on
a payment date during a default by the insurer,
amounts to be distributed on the notes on such
payment date will generally be reduced in the
following order:
1. class B monthly principal,
2. class B monthly interest,
3. class A monthly principal, pro rata, and
4. class A monthly interest, pro rata.
See "The Receivables Pool - Delinquencies and Net
Losses" and "- Delinquency and Credit Loss
Experience" in these materials.
Some Notes Are More at
Risk Than Others If There
Are Losses on
the Receivables Principal will be paid on the notes in
alpha-numeric order, beginning with the class A-1
notes and ending with the class B notes, with
certain exceptions if an indenture default occurs.
Because payments of principal will be applied
first to the class A-1 notes, second to the class
A-2 notes, third to the class A-3 notes, fourth to
the class A-4 notes, and finally to the class B
notes, in the event the insurer defaults under the
policy after the class A-1 notes have been fully
or partially repaid and before the other classes
of notes have been fully repaid, delinquencies,
defaults and losses experienced on the receivables
will have a disproportionately greater effect on
the classes of notes which pay principal to
noteholders later.
Some Payments on the
Notes Are Subordinate to
Other Payments on
the Notes Interest due on the class B notes is subordinate
in priority of payment to interest due on the
class A notes, and, on the final maturity date for
a class of class A notes or after an event of
default under the indenture, interest due on the
class B notes is subordinated to principal due on
such class A notes. Principal due on the class B
notes is subordinated to principal and interest
due on the class A notes. Consequently, after an
insurer default, the class B noteholders will not
receive any interest on a payment date until the
full amount of interest on the class A notes due
on such payment date has been paid, and, if such
payment date is on or after the final maturity
date for a class of class A notes or an event of
default under the indenture, the class B
noteholders will not receive any interest until
all principal on such class A notes has been paid
in full. No principal will be paid on the class B
notes until each class of class A notes has been
paid in full.
In the event of a default by the insurer, the
class B notes will be more at risk than the class
A notes due to delinquencies, defaults and losses
experienced on the receivables.
Noteholders Have a Limited
Right to Declare Indenture
Defaults or Remedies The insurer is the only party that has the right
to declare an indenture default and control the
remedy for such default, unless the insurer is in
default under the policy, in which case the
noteholders will have such right subject to
applicable voting requirements.
If an indenture default occurs, the insurer or, in
certain limited circumstances, the noteholders,
will have the right to accelerate the payment of
principal of the notes and, possibly, to direct
the indenture trustee to liquidate the trust
property.
Following an indenture default, the indenture
trustee and the owner trustee will continue to
submit claims under the policy to enable the trust
to make payments to you each month. However,
following an indenture default, the insurer may
elect to prepay all or any portion of the
outstanding notes, plus accrued interest.
A Change in the Note
Ratings May Adversely
Affect the Notes Moodys Investors Service and Standard & Poors
Ratings Services are the rating agencies rating
the notes. The rating for any class of notes will
reflect only the view of the relevant rating
agency. We cannot assure you that any such rating
will continue for any period of time or that any
rating will not be revised or withdrawn entirely
by such rating agency if, in its judgment,
circumstances so warrant. A revision or withdrawal
of such rating may have an adverse effect on the
liquidity and market price of your notes. A rating
is not a recommendation to buy, sell or hold the
notes.
<PAGE>
FORMATION OF THE TRUST
The trust is a business trust formed under the laws of the State of
Delaware under a trust and servicing agreement between the seller, the servicer
and the owner trustee. The trust was formed solely for the purpose of
accomplishing the transactions described in these materials. Upon formation, the
trust will not engage in any business activity other than:
o acquiring, managing and holding the receivables and related interests
described in these materials;
o issuing the notes and the certificate;
o making payments and distributions on the notes and the certificate;
and
o engaging in those activities, including entering into agreements, that
are necessary, suitable or convenient to accomplish the above listed
activities or are incidental to those activities.
Pursuant to an indenture between the trust and the indenture trustee, the
trust will grant a security interest in the trust assets in favor of the
indenture trustee on behalf of and for the benefit of the noteholders and the
insurer. The seller will transfer the trust assets to the owner trustee in
exchange for the certificate and the cash proceeds of the notes. The seller will
retain the certificate. UAC will service the receivables pursuant to the trust
and servicing agreement and will receive compensation for acting as the
servicer. To facilitate servicing and to minimize administrative burden and
expense, the servicer will serve as custodian of the receivables for the owner
trustee. However, the servicer will not stamp the receivables to reflect the
sale and assignment of the receivables to the trust or the indenture trustee or
make any notation of the indenture trustee's lien on the certificates of title
of the financed vehicles. In the absence of such notation on the certificates of
title, the trust or the indenture trustee may not have perfected security
interests in the financed vehicles securing the receivables. Under the terms of
the trust and servicing agreement, UAC may delegate its duties as servicer and
custodian; however, any such delegation will not relieve UAC of its liability
and responsibility with respect to such duties.
The trust will establish a spread account for the benefit of the
noteholders and the insurer and will obtain the policy. The indenture trustee
will draw on the policy, up to the policy amount, if available funds and the
amount on deposit in the spread account (after paying amounts owed to the
servicer) are not sufficient to fully distribute monthly interest and monthly
principal. If the spread account is reduced to zero and there is a default under
the policy, the trust will look only to the obligors on the receivables and the
proceeds from the repossession and sale of financed vehicles that secure
defaulted receivables for payments of interest and principal on the notes. In
such event, certain factors, such as the indenture trustee not having perfected
security interests in some of the financed vehicles, may affect the trust's
ability to realize on the collateral securing the receivables, and thus may
reduce the proceeds to be distributed to the noteholders.
<PAGE>
THE RECEIVABLES POOL
The receivables were selected from the portfolio of the Funding
Subsidiaries for purchase by the seller according to several criteria, including
that each receivable:
o has an original number of payments of not more than 84 payments and
not less than twelve payments;
o has a remaining maturity of not more than 84 months and not less than
three months;
o provides for level monthly payments that fully amortize the amount
financed over the original term; and
o has a contract rate of interest (exclusive of prepaid finance charges)
of not less than 6.50%.
No selection procedures adverse to the noteholders will be utilized in
selecting the receivables to be conveyed to the trust.
The statistical information presented in these materials is based on the
receivables as of the statistical cut-off date, which is October 31, 2000.
o As of the statistical cut-off date, the receivables have an aggregate
principal balance of $434,340,011.52.
o As of the cut-off date, the receivables are expected to have an
aggregate principal balance of approximately $510,000,000.
The seller will acquire additional receivables after the statistical
cut-off date but prior to the cut-off date. In addition, some amortization of
the receivables will occur after the statistical cut-off date, and some
receivables included as of the statistical cut-off date may prepay in full or
may be determined not to meet the eligibility requirements regarding the
receivables and may not, therefore, be included in the trust. As a result, the
statistical distribution of characteristics as of the cut-off date will vary
from the statistical distribution of characteristics as of the statistical
cut-off date. However, the variance in statistical distribution of
characteristics should not be material.
The weighted average remaining maturity of the receivables is approximately
73 months as of the statistical cut-off date.
Approximately 99.96% of the aggregate principal balance of the receivables
as of October 31, 2000 are simple interest contracts which provide for equal
monthly payments. Approximately 0.04% of the aggregate principal balance of the
receivables as of October 31, 2000 are precomputed receivables originated in the
State of California. All of such precomputed receivables are rule of 78's
receivables. Approximately 31.25% of the aggregate principal balance of the
receivables as of October 31, 2000 represent financing of new vehicles; the
remainder of the receivables represent financing of used vehicles.
Receivables representing more than 10% of the aggregate principal balance
of the receivables as of October 31, 2000 were originated in the State of Texas.
The performance of the receivables in the aggregate could be adversely affected
in particular by the development of adverse economic conditions in such state.
<PAGE>
<TABLE>
<CAPTION>
Composition of the Receivables by Financed Vehicle Type as of October 31, 2000
Weighted
Aggregate Original Average
Number of Principal Principal Contract
Receivables Balance Balance Rate
-----------------------------------------------------------
<S> <C> <C> <C> <C>
New Vehicles..................................... 6,506 $135,738,176.66 $138,690,474.40 12.65%
Used Vehicles.................................... 19,784 298,601,834.86 304,748,534.43 13.97%
-----------------------------------------------------------
All Receivables.................................. 26,290 $434,340,011.52 $443,439,008.83 13.56%
================================================
</TABLE>
<TABLE>
<CAPTION>
Weighted Weighted Percent
Average Average of Aggregate
Remaining Original Principal
Term(1) Term(1) Balance(2)
-----------------------------------------------
<S> <C> <C> <C>
New Vehicles..................................... 75.5 mos. 77.0 mos. 31.25%
Used Vehicles.................................... 71.6 mos. 72.9 mos. 68.75
-----------------------------------------------
All Receivables.................................. 72.8 mos. 74.1 mos. 100.00%
======
</TABLE>
(1) Based on scheduled maturity and assuming no prepayments of the receivables.
(2) Sum may not equal 100% due to rounding.
<TABLE>
<CAPTION>
Distribution of the Receivables by Financed Vehicle Model Year as of October 31, 2000
Percent Percent
of Total Aggregate of Aggregate
Model Number of Number of Principal Principal
Year Receivables Receivables(1) Balance Balance(1)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
1991 and earlier....................... 549 2.09% $ 3,475,814.21 0.80%
1992................................... 555 2.11 4,064,408.57 0.94
1993................................... 801 3.05 6,497,845.87 1.50
1994................................... 1,260 4.79 12,235,525.82 2.82
1995................................... 2,062 7.84 23,652,438.93 5.45
1996................................... 2,246 8.54 30,487,960.34 7.02
1997................................... 4,188 15.93 67,777,301.01 15.60
1998................................... 3,403 12.94 59,574,607.85 13.72
1999................................... 3,065 11.66 56,120,197.04 12.92
2000................................... 5,952 22.64 121,711,688.87 28.02
2001................................... 2,209 8.40 48,742,223.01 11.22
--------------------------------------------------------------
Total................................ 26,290 100.00% $434,340,011.52 100.00%
==============================================================
</TABLE>
(1) Sum may not equal 100% due to rounding.
<PAGE>
<TABLE>
<CAPTION>
Distribution of the Receivables by Contract Rate as of October 31, 2000
Percent Percent
of Total Aggregate of Aggregate
Number of Number of Principal Principal
Contract Rate Range Receivables Receivables(1) Balance Balance(1)
------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Less than 7.000%.................... 21 0.08% $ 303,406.09 0.07%
7.000 to 7.999%.................... 269 1.02 4,475,151.62 1.03
8.000 to 8.999%.................... 590 2.24 9,745,731.59 2.24
9.000 to 9.999%.................... 882 3.35 15,007,666.77 3.46
10.000 to 10.999%.................... 1,442 5.48 25,214,443.06 5.81
11.000 to 11.999%.................... 2,527 9.61 45,014,696.71 10.36
12.000 to 12.999%.................... 4,244 16.14 74,207,326.99 17.09
13.000 to 13.999%.................... 5,556 21.13 95,798,780.88 22.06
14.000 to 14.999%.................... 4,756 18.09 77,344,909.56 17.81
15.000 to 15.999%.................... 2,797 10.64 44,080,361.71 10.15
16.000 to 16.999%.................... 1,289 4.90 19,651,086.61 4.52
17.000 to 17.999%.................... 776 2.95 11,132,352.57 2.56
18.000 to 18.999%.................... 789 3.00 9,907,316.07 2.28
19.000 to 19.999%.................... 77 0.29 809,142.24 0.19
20.000 to 20.999%.................... 61 0.23 480,643.91 0.11
21.000 to 21.999%.................... 188 0.72 1,019,891.97 0.23
22.000 to 22.999%.................... 10 0.04 52,314.94 0.01
23.000 to 23.999%.................... 4 0.02 29,158.66 0.01
24.000 to 24.999%.................... 4 0.02 37,245.73 0.01
25.000 to 25.999%.................... 8 0.03 28,383.84 0.01
---------------------------------------------------------------
Total.............................. 26,290 100.00% $434,340,011.52 100.00%
==============================================================
</TABLE>
(1) Sum may not equal 100% due to rounding.
<PAGE>
<TABLE>
<CAPTION>
Geographic Distribution of the Receivables as of October 31, 2000
Percent Percent
of Total Aggregate of Aggregate
Number of Number of Principal Principal
State (1) (2) Receivables Receivables (3) Balance Balance (3)
--------------------- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arizona...................... 525 2.00% $ 9,046,835 2.08%
California................... 2,551 9.70 43,425,152.32 10.00
Colorado..................... 507 1.93 7,892,783.46 1.82
Connecticut.................. 199 0.76 3,161,269.10 0.73
Delaware..................... 131 0.50 1,946,085.92 0.45
Florida...................... 1,501 5.71 24,426,651.33 5.62
Georgia...................... 1,097 4.17 20,090,937.84 4.63
Idaho........................ 103 0.39 1,603,679.74 0.37
Illinois..................... 1,651 6.28 26,239,930.09 6.04
Indiana...................... 1,260 4.79 19,227,697.47 4.43
Iowa ........................ 480 1.83 7,276,231.44 1.68
Kansas....................... 110 0.42 1,762,814.25 0.41
Kentucky..................... 561 2.13 9,024,407.66 2.08
Maine........................ 286 1.09 4,626,782.96 1.07
Maryland..................... 386 1.47 6,872,165.89 1.58
Massachusetts................ 558 2.12 8,785,514.06 2.02
Michigan..................... 691 2.63 11,634,157.13 2.68
Minnesota.................... 526 2.00 8,095,406.86 1.86
Missouri..................... 778 2.96 13,353,238.55 3.07
Nebraska..................... 247 0.94 3,446,412.01 0.79
Nevada....................... 317 1.21 5,690,595.63 1.31
New Hampshire................ 194 0.74 3,155,728.50 0.73
New Jersey................... 99 0.38 1,741,406.77 0.40
New Mexico................... 191 0.73 3,382,826.16 0.78
New York..................... 536 2.04 8,446,600.22 1.94
North Carolina............... 1,888 7.18 31,896,702.19 7.34
Ohio ........................ 952 3.62 14,264,978.14 3.28
Oklahoma..................... 1,012 3.85 16,017,707.84 3.69
Oregon....................... 248 0.94 3,727,279.44 0.86
Pennsylvania................. 431 1.64 6,671,487.13 1.54
South Carolina............... 751 2.86 13,123,368.64 3.02
South Dakota................. 10 0.04 138,559.44 0.03
Tennessee.................... 901 3.43 15,283,451.20 3.52
Texas........................ 2,481 9.44 44,544,080.41 10.26
Utah ........................ 268 1.02 4,569,915.41 1.05
Vermont...................... 151 0.57 2,431,146.58 0.56
Virginia..................... 975 3.71 15,005,691.23 3.45
Washington................... 294 1.12 5,540,653.16 1.28
Wisconsin.................... 443 1.69 6,769,679.91 1.56
----------------------------------------------------------------------------
Total..................... 26,290 100.00% $434,340,011.52 100.00%
============================================================================
</TABLE>
(1) Based on address of the dealer selling the related financed vehicle.
(2) Receivables originated in Ohio were solicited by dealers for direct
financing by UAC or its predecessor. All other receivables were originated
by dealers and purchased from such dealers by UAC or its predecessor.
(3) Sum may not equal 100% due to rounding.
<PAGE>
<TABLE>
<CAPTION>
Distribution of the Receivables by Remaining Term as of October 31, 2000
Percent Percent
of Total Aggregate of Aggregate
Remaining Number of Number of Principal Principal
Term Range Receivables Receivables (1) Balance Balance(1)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 to 12 months............... 295 1.12% $ 1,032,500.51 0.24%
13 to 24 months.............. 559 2.13 3,680,141.42 0.85
25 to 36 months.............. 779 2.96 5,883,349.84 1.35
37 to 48 months.............. 1,304 4.96 12,503,276.84 2.88
49 to 60 months.............. 4,056 15.43 56,438,331.94 12.99
61 to 72 months.............. 7,913 30.10 129,551,604.30 29.83
73 to 84 months.............. 11,384 43.30 225,250,806.67 51.86
--------------------------------------------------------------------------
Total..................... 26,290 100.00% $434,340,011.52 100.00%
==========================================================================
</TABLE>
(1) Sum may not equal 100% due to rounding.
Delinquencies and Net Losses
We have set forth below certain information about the experience of UAC
relating to delinquencies and net losses on the prime fixed rate retail vehicle
receivables serviced by UAC. We cannot assure you that the delinquency and net
loss experience of the receivables will be comparable to that set forth in the
following tables.
<PAGE>
<TABLE>
<CAPTION>
Delinquency Experience (1)
At June 30,
------------------------------------------------------------------------------
1998 1999 2000
---------------------- -------------------- ------------------------
(Dollars in thousands)
Number of Number of Number of
Receivables Amount Receivables Amount Receivables Amount
----------- ------ ----------- ------ ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Servicing portfolio........ 184,003 $1,978,920 213,746 $2,464,371 235,732 $2,848,150
Delinquencies
30-59 days.............. 3,179 $ 32,967 3,962 $ 41,475 4,204 $ 45,442
60-89 days.............. 1,907 20,819 1,614 16,654 2,176 25,250
90 days or more......... 657 6,993 670 6,754 886 9,710
------------------------------------------------------------------------------
Total delinquencies........ 5,743 $ 60,779 6,246 $ 64,883 7,266 $ 80,402
==============================================================================
Total delinquencies as a
percent of servicing
portfolio............... 3.12% 3.07% 2.92% 2.63% 3.08% 2.82%
Credit Loss Experience (1)
Year Ended June 30,
------------------------------------------------------------------------------
1998 1999 2000
---------------------- --------------------- -------------------------
(Dollars in thousands)
Number of Number of Number of
Receivables Amount Receivables Amount Receivables Amount
----------- ------ ----------- ------ ----------- ------
Avg. servicing portfolio(2) 179,822 $1,922,977 202,187 $2,269,177 221,948 $2,610,803
-------------------------------------------------------------------------------
Gross charge-offs.......... 7,909 $ 87,325 7,752 $ 82,437 8,548 $ 95,815
Recoveries (3)............. 33,546 32,526 38,863
---------- ---------- ----------
Net losses................. $ 53,779 $ 49,911 $ 56,952
========== ========== ==========
Gross charge-offs as a % of
average servicing
portfolio(4)............ 4.40% 4.54% 3.83% 3.63% 3.85% 3.67%
Recoveries as a % of gross
charge-offs............. 38.41% 39.45% 40.56%
Net losses as a % of
average servicing
portfolio(4).. 2.80% 2.20% 2.18%
</TABLE>
<PAGE>
At September 30, At September 30,
1999 2000
------------------------ -------------------------
Number of Number of
Receivables Amount Receivables Amount
------ ------ ----------- ------
Servicing portfolio........ 217,296 $2,530,654 252,293 $3,133,025
Delinquencies
30-59 days.............. 4,714 $ 50,734 5,120 $ 56,184
60-89 days.............. 1,955 20,439 2,482 29,062
90 days or more......... 875 9,291 1,158 12,918
----------------------------------------------------
Total delinquencies........ 7,544 $ 80,464 8,760 $ 98,164
====================================================
Total delinquencies as a
percent of servicing
portfolio............... 3.47% 3.18% 3.47% 3.13%
Three Months Ended Three Months Ended
September 30, 1999 (5) September 30, 2000 (5)
--------------------------- ------------------------
Number of Number of
Receivables Amount Receivables Amount
----------- ------ ----------- ------
Avg. servicing portfolio(2) 216,508 $2,515,461 246,406 $3,031,640
-------------------------- ----------------------
Gross charge-offs.......... 2,003 $ 21,088 2,306 $ 27,099
Recoveries (3)............. 8,672 11,112
--------------- -----------
Net losses................. $ 12,417 $ 15,987
=============== ===========
Gross charge-offs as a % of
average servicing
portfolio(4)............ 3.70% 3.35% 3.74% 3.58%
Recoveries as a % of gross
charge-offs............. 41.12% 41.01%
Net losses as a % of
average servicing
portfolio(4).. 1.97% 2.11%
<PAGE>
(1) There is generally no recourse to dealers under any of the receivables in
the portfolio serviced by UAC, except to the extent of representations and
warranties made by dealers in connection with such receivables.
(2) Equals the monthly arithmetic average, and includes receivables sold in
prior securitization transactions.
(3) Recoveries include recoveries on receivables previously charged off, cash
recoveries and unsold repossessed assets carried at fair market value.
(4) Variation in the size of the portfolio serviced by UAC will affect the
percentages in "Gross charge-offs as a percentage of average servicing
portfolio" and "Net losses as a percentage of average servicing portfolio."
(5) Percentages are annualized in "Gross charge-offs as a percentage of average
servicing portfolio" and "Net losses as a percentage of average servicing
portfolio" for partial years.
<PAGE>
Delinquency and Credit Loss Experience
As indicated in the foregoing delinquency experience table, the delinquency
percentage for UAC's prime automobile portfolio based upon outstanding balances
of receivables 30 days past due and over was 3.13% at September 30, 2000,
compared to 3.18% at September 30, 1999 and 2.82% at June 30, 2000.
As indicated in the foregoing credit loss experience table, net credit
losses on UAC's prime automobile portfolio totaled approximately $16.0 million
for the quarter ended September 30, 2000, or 2.11% (annualized) of the average
servicing portfolio, compared to $12.4 million, or 1.97% (annualized) for the
quarter ended September 30, 1999. For the year ended June 30, 2000, net credit
losses on UAC's prime automobile portfolio totaled approximately $57.0 million,
or 2.18% of the average servicing portfolio.
Notwithstanding modest increases during the quarter ended September 30,
2000, delinquency and credit loss percentages are within management's
expectations and continue to exhibit relative stability. UAC attributes the
overall strength of the portfolio to strong underwriting guidelines, based on
improved risk-based portfolio analysis, and focused collection efforts.
Recoveries as a percentage of gross charge-offs on the Tier I portfolio
improved to 41.01% for the quarter ended September 30, 2000, compared to 40.56%
and 41.12% for the year ended June 30, 2000 and the quarter ended September 30,
1999, respectively. Overall recovery percentages have been relatively stable
over the past year, bolstered in part by the significantly higher recovery rates
UAC is able to realize by disposing of repossessed vehicles throughout its
retail operation rather than at auction. Approximately 15% of repossessed
automobiles were sold at UAC's retail operation during the quarter ended
September 30, 2000.
UAC's expectations with respect to delinquency and credit loss trends
constitute forward-looking statements and are subject to important factors that
could cause actual results to differ materially from those projected by UAC.
Such factors include, but are not limited to, general economic factors affecting
obligors' abilities to make timely payments on their indebtedness such as
employment status, rates of consumer bankruptcy, consumer debt levels generally
and the interest rates applicable thereto. In addition, credit losses are
affected by UAC's ability to realize on recoveries of repossessed vehicles,
including, but not limited to, the market for used cars at any given time.
WEIGHTED AVERAGE LIFE OF THE NOTES
Because the rate of payment on principal of the notes depends primarily on
the rate of payment of the receivables (including voluntary prepayments,
principal in respect of receivables as to which there has been a default,
principal in respect of required repurchases or purchases of receivables by UAC
or the servicer, final payment on each class of notes could occur much earlier
than the applicable final maturity date. You will bear the risk of being able to
reinvest early principal payments on the notes at yields at least equal to the
yield on your notes.
Prepayments on retail installment sale contracts, such as the receivables,
can be measured relative to a prepayment standard or model. The model used in
these materials is the Absolute Prepayment Model ("ABS"). The ABS model
represents an assumed rate of prepayment each month relative to the original
number of receivables in a pool. The ABS model further assumes that all of the
receivables are the same size, amortize at the same rate and that each
receivable will be paid as scheduled or will be prepaid in full. For example, in
a pool of receivables originally containing 100 receivables, a 1% ABS rate means
that one receivable prepays in full each month. The ABS model, like any
prepayment model, does not claim to be either a historical description of
prepayment experience or a prediction of the anticipated rate of prepayment.
The tables on pages 21 to 23 have been prepared on the basis of certain
assumptions, including that:
o all payments on the receivables are made on the last day of each month
and include 30 days of interest beginning November 2000;
o payments on the class A-1 notes are paid in cash on each payment date
commencing January 8, 2001 and on the eighth calendar day of each
subsequent month or, if such day is not a business day, on the next
business day;
o payments on the notes other than the class A-1 notes are paid in cash
on the eighth calendar day of each month;
o the closing date will be November 21, 2000;
o no defaults or delinquencies in the payment of any of the receivables
occur;
o no receivables are repurchased due to a breach of any representation
or warranty or for any other reason; and
o the servicer exercises its rights with respect to the optional
purchase of the receivables on the first payment date that it is
entitled to exercise such rights.
The tables indicate the projected weighted average life of each class of notes
and set forth the percentage of the initial aggregate principal balance of each
class of notes that is projected to be outstanding after each of the payment
dates shown at specified ABS percentages. The tables also assume that (i) the
receivables have an aggregate principal balance of $510,000,000 as of November
16, 2000, the cut-off date, and (ii) the receivables have been aggregated into
five hypothetical pools with all of the receivables within each such pool having
the characteristics described below:
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Weighted Average
Cutoff Date Weighted Average Original Term to Remaining Term to
Pool Principal Balance Note Rate Maturity (in Months) Maturity (in Months)
---- ----------------- ---------------- -------------------- --------------------
<S> <C> <C> <C> <C>
1 $ 3,393,169.84 16.896% 78 18
2 22,515,540.72 12.960% 42 41
3 64,188,144.98 12.708% 60 59
4 147,411,303.76 13.444% 70 70
5 272,491,840.70 13.818% 82 81
---------------
Total $510,000,000.00
===============
</TABLE>
The information included in the following tables consists of
forward-looking statements and involves risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. The actual characteristics and performance of the receivables will
differ from the assumptions used in constructing the tables on pages 21 to 23.
We have provided these hypothetical illustrations using the assumptions listed
above to give you a general illustration of how the aggregate principal balance
of the notes may decline. However, it is highly unlikely that the receivables
will prepay at a constant ABS until maturity or that all of the receivables will
prepay at the same ABS. In addition, the diverse terms of receivables within
each of the five hypothetical pools could produce slower or faster rates of
principal payments than indicated in the table at the various specified ABS
rates. Any difference between such hypothetical assumptions and the actual
characteristics, performance and prepayment experience of the receivables will
cause the actual percentages of the initial principal balances of the notes
outstanding over time and the weighted average lives of the notes to vary from
what is illustrated in the tables below.
Important notice regarding calculation of the weighted average
life and the assumptions upon which the tables on pages 21 to 23
are based
The weighted average life of a note is determined by: (a)
multiplying the amount of each principal payment on the applicable
note by the number of years from the assumed closing date to the
related payment date, (b) adding the results, and (c) dividing the sum
by the related initial principal amount of such note.
The tables on pages 21 to 23 have been prepared based on (and
should be read in conjunction with) the assumptions described on pages
18 to 20 (including the assumptions regarding the characteristics and
performance of the receivables, which will differ from the actual
characteristics and performance of the receivables).
<PAGE>
<TABLE>
<CAPTION>
Percent of Initial Note Balance at Various ABS Percentages (1)
Class A-1 Notes Class A-2 Notes
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Payment Date 1.0% 1.4% 1.6% 1.8% 2.5% 1.0% 1.4% 1.6% 1.8% 2.5%
------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Closing Date..............100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
1 January, 2001........ 55.3% 45.3% 36.5% 30.5% 14.4% 100.0% 100.0% 100.0% 100.0% 100.0%
2 February, 2001....... 33.1% 18.4% 6.8% 0.0% 0.0% 100.0% 100.0% 100.0% 100.0% 92.3%
3 March, 2001.......... 11.0% 0.0% 0.0% 0.0% 0.0% 100.0% 97.3% 93.2% 90.3% 80.2%
4 April, 2001.......... 0.0% 0.0% 0.0% 0.0% 0.0% 96.5% 88.9% 84.3% 80.8% 68.2%
5 May, 2001............ 0.0% 0.0% 0.0% 0.0% 0.0% 89.5% 80.5% 75.5% 71.3% 56.4%
6 June, 2001........... 0.0% 0.0% 0.0% 0.0% 0.0% 82.6% 72.2% 66.7% 61.9% 44.7%
7 July, 2001........... 0.0% 0.0% 0.0% 0.0% 0.0% 75.7% 64.0% 58.1% 52.6% 33.2%
8 August, 2001......... 0.0% 0.0% 0.0% 0.0% 0.0% 68.8% 55.9% 49.5% 43.4% 21.8%
9 September, 2001...... 0.0% 0.0% 0.0% 0.0% 0.0% 62.0% 47.9% 41.0% 34.3% 10.6%
10 October, 2001........ 0.0% 0.0% 0.0% 0.0% 0.0% 55.2% 40.0% 32.6% 25.3% 0.0%
11 November, 2001....... 0.0% 0.0% 0.0% 0.0% 0.0% 48.5% 32.2% 24.3% 16.4% 0.0%
12 December, 2001....... 0.0% 0.0% 0.0% 0.0% 0.0% 41.8% 24.5% 16.1% 7.6% 0.0%
13 January, 2002........ 0.0% 0.0% 0.0% 0.0% 0.0% 35.1% 16.9% 7.9% 0.0% 0.0%
14 February, 2002....... 0.0% 0.0% 0.0% 0.0% 0.0% 28.5% 9.4% 0.0% 0.0% 0.0%
15 March, 2002.......... 0.0% 0.0% 0.0% 0.0% 0.0% 22.0% 1.9% 0.0% 0.0% 0.0%
16 April, 2002.......... 0.0% 0.0% 0.0% 0.0% 0.0% 15.5% 0.0% 0.0% 0.0% 0.0%
17 May, 2002............ 0.0% 0.0% 0.0% 0.0% 0.0% 9.0% 0.0% 0.0% 0.0% 0.0%
18 June, 2002........... 0.0% 0.0% 0.0% 0.0% 0.0% 2.7% 0.0% 0.0% 0.0% 0.0%
19 July, 2002........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
20 August, 2002......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
21 September, 2002...... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
22 October, 2002........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
23 November, 2002....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
24 December, 2002....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
25 January, 2003........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
26 February, 2003....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
27 March, 2003.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
28 April, 2003.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
29 May, 2003............ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
30 June, 2003........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
31 July, 2003........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32 August, 2003......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
33 September, 2003...... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
34 October, 2003........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
35 November, 2003....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
36 December, 2003....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
37 January, 2004........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
38 February, 2004....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
39 March, 2004.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
40 April, 2004.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
41 May, 2004............ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
42 June, 2004........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
43 July, 2004........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
44 August, 2004......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
45 September, 2004...... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
46 October, 2004........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
47 November, 2004....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
48 December, 2004....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
49 January, 2005........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
50 February, 2005....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
51 March, 2005.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
52 April, 2005.......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
53 May, 2005............ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
54 June, 2005........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
55 July, 2005........... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
56 August, 2005......... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
57 September, 2005...... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
58 October, 2005........ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
59 November, 2005....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Weighted Average
Life (years)......... 0.21 0.18 0.17 0.16 0.14 0.99 0.82 0.75 0.70 0.55
</TABLE>
(1) See pages 18 to 20 of these materials for the important notice regarding
calculation of the weighted average life and the assumptions upon which
these tables are based.
<PAGE>
<TABLE>
<CAPTION>
Percent of Initial Note Balance at Various ABS Percentages (1)
Class A-3 Notes Class A-4 Notes
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Payment Date 1.0% 1.4% 1.6% 1.8% 2.5% 1.0% 1.4% 1.6% 1.8% 2.5%
------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Closing Date..............100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
1 January, 2001........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
2 February, 2001.......100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 March, 2001..........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
4 April, 2001..........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
5 May, 2001............100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
6 June, 2001...........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
7 July, 2001...........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
8 August, 2001.........100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
9 September, 2001......100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
10 October, 2001........100.0% 100.0% 100.0% 100.0% 99.6% 100.0% 100.0% 100.0% 100.0% 100.0%
11 November, 2001.......100.0% 100.0% 100.0% 100.0% 91.4% 100.0% 100.0% 100.0% 100.0% 100.0%
12 December, 2001.......100.0% 100.0% 100.0% 100.0% 83.3% 100.0% 100.0% 100.0% 100.0% 100.0%
13 January, 2002........100.0% 100.0% 100.0% 99.2% 75.3% 100.0% 100.0% 100.0% 100.0% 100.0%
14 February, 2002.......100.0% 100.0% 99.9% 92.8% 67.5% 100.0% 100.0% 100.0% 100.0% 100.0%
15 March, 2002..........100.0% 100.0% 93.9% 86.4% 59.8% 100.0% 100.0% 100.0% 100.0% 100.0%
16 April, 2002..........100.0% 95.9% 88.0% 80.1% 52.2% 100.0% 100.0% 100.0% 100.0% 100.0%
17 May, 2002............100.0% 90.4% 82.2% 73.9% 44.8% 100.0% 100.0% 100.0% 100.0% 100.0%
18 June, 2002...........100.0% 85.0% 76.4% 67.8% 37.4% 100.0% 100.0% 100.0% 100.0% 100.0%
19 July, 2002........... 97.3% 79.6% 70.7% 61.8% 30.3% 100.0% 100.0% 100.0% 100.0% 100.0%
20 August, 2002......... 92.6% 74.3% 65.1% 55.8% 23.3% 100.0% 100.0% 100.0% 100.0% 100.0%
21 September, 2002...... 88.0% 69.0% 59.5% 50.0% 16.4% 100.0% 100.0% 100.0% 100.0% 100.0%
22 October, 2002........ 83.4% 63.9% 54.1% 44.3% 9.7% 100.0% 100.0% 100.0% 100.0% 100.0%
23 November, 2002....... 78.8% 58.8% 48.7% 38.6% 3.1% 100.0% 100.0% 100.0% 100.0% 100.0%
24 December, 2002....... 74.2% 53.7% 43.4% 33.1% 0.0% 100.0% 100.0% 100.0% 100.0% 94.7%
25 January, 2003........ 69.7% 48.7% 38.2% 27.6% 0.0% 100.0% 100.0% 100.0% 100.0% 84.7%
26 February, 2003....... 65.3% 43.8% 33.1% 22.3% 0.0% 100.0% 100.0% 100.0% 100.0% 75.0%
27 March, 2003.......... 60.8% 39.0% 28.1% 17.1% 0.0% 100.0% 100.0% 100.0% 100.0% 65.5%
28 April, 2003..........56.5% 34.3% 23.1% 11.9% 0.0% 100.0% 100.0% 100.0% 100.0% 56.3%
29 May, 2003............52.1% 29.6% 18.3% 6.9% 0.0% 100.0% 100.0% 100.0% 100.0% 47.4%
30 June, 2003...........47.8% 25.0% 13.5% 2.0% 0.0% 100.0% 100.0% 100.0% 100.0% 38.7%
31 July, 2003...........43.6% 20.5% 8.9% 0.0% 0.0% 100.0% 100.0% 100.0% 95.6% 30.4%
32 August, 2003.........39.4% 16.0% 4.3% 0.0% 0.0% 100.0% 100.0% 100.0% 88.1% 22.2%
33 September, 2003......35.2% 11.7% 0.0% 0.0% 0.0% 100.0% 100.0% 99.7% 80.9% 0.0%
34 October, 2003........31.1% 7.4% 0.0% 0.0% 0.0% 100.0% 100.0% 92.8% 73.8% 0.0%
35 November, 2003.......27.0% 3.2% 0.0% 0.0% 0.0% 100.0% 100.0% 86.0% 66.9% 0.0%
36 December, 2003.......23.0% 0.0% 0.0% 0.0% 0.0% 100.0% 98.6% 79.4% 60.3% 0.0%
37 January, 2004........19.1% 0.0% 0.0% 0.0% 0.0% 100.0% 92.2% 73.0% 53.8% 0.0%
38 February, 2004.......15.2% 0.0% 0.0% 0.0% 0.0% 100.0% 85.9% 66.7% 47.5% 0.0%
39 March, 2004..........11.3% 0.0% 0.0% 0.0% 0.0% 100.0% 79.8% 60.7% 41.4% 0.0%
40 April, 2004.......... 7.5% 0.0% 0.0% 0.0% 0.0% 100.0% 73.9% 54.7% 35.6% 0.0%
41 May, 2004............ 3.9% 0.0% 0.0% 0.0% 0.0% 100.0% 68.3% 49.2% 30.1% 0.0%
42 June, 2004........... 0.5% 0.0% 0.0% 0.0% 0.0% 100.0% 62.8% 43.8% 24.7% 0.0%
43 July, 2004........... 0.0% 0.0% 0.0% 0.0% 0.0% 95.3% 57.5% 38.6% 0.0% 0.0%
44 August, 2004......... 0.0% 0.0% 0.0% 0.0% 0.0% 89.9% 52.4% 33.6% 0.0% 0.0%
45 September, 2004...... 0.0% 0.0% 0.0% 0.0% 0.0% 84.6% 47.4% 28.7% 0.0% 0.0%
46 October, 2004........ 0.0% 0.0% 0.0% 0.0% 0.0% 79.3% 42.5% 24.0% 0.0% 0.0%
47 November, 2004....... 0.0% 0.0% 0.0% 0.0% 0.0% 74.2% 37.8% 0.0% 0.0% 0.0%
48 December, 2004....... 0.0% 0.0% 0.0% 0.0% 0.0% 69.2% 33.3% 0.0% 0.0% 0.0%
49 January, 2005........ 0.0% 0.0% 0.0% 0.0% 0.0% 64.2% 28.9% 0.0% 0.0% 0.0%
50 February, 2005....... 0.0% 0.0% 0.0% 0.0% 0.0% 59.4% 24.6% 0.0% 0.0% 0.0%
51 March, 2005.......... 0.0% 0.0% 0.0% 0.0% 0.0% 54.6% 0.0% 0.0% 0.0% 0.0%
52 April, 2005.......... 0.0% 0.0% 0.0% 0.0% 0.0% 49.9% 0.0% 0.0% 0.0% 0.0%
53 May, 2005............ 0.0% 0.0% 0.0% 0.0% 0.0% 45.4% 0.0% 0.0% 0.0% 0.0%
54 June, 2005........... 0.0% 0.0% 0.0% 0.0% 0.0% 40.9% 0.0% 0.0% 0.0% 0.0%
55 July, 2005........... 0.0% 0.0% 0.0% 0.0% 0.0% 36.5% 0.0% 0.0% 0.0% 0.0%
56 August, 2005......... 0.0% 0.0% 0.0% 0.0% 0.0% 32.3% 0.0% 0.0% 0.0% 0.0%
57 September, 2005...... 0.0% 0.0% 0.0% 0.0% 0.0% 28.1% 0.0% 0.0% 0.0% 0.0%
58 October, 2005........ 0.0% 0.0% 0.0% 0.0% 0.0% 24.1% 0.0% 0.0% 0.0% 0.0%
59 November, 2005....... 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Weighted Average
Life (years)......... 2.57 2.17 2.00 1.86 1.46 4.40 3.79 3.49 3.21 2.48
</TABLE>
(1) See pages 18 to 20 of these materials for the important notice regarding
calculation of the weighted average life and the assumptions upon which
these tables are based.
<PAGE>
<TABLE>
<CAPTION>
Percent of Initial Note Balance at Various ABS Percentages (1)
Class B Notes
<S> <C> <C> <C> <C> <C>
Payment Date 1.0% 1.4% 1.6% 1.8% 2.5%
------------ ------ ------ ------ ------ ------
Closing Date.............. 100.0% 100.0% 100.0% 100.0% 100.0%
1 January, 2001........ 100.0% 100.0% 100.0% 100.0% 100.0%
2 February, 2001....... 100.0% 100.0% 100.0% 100.0% 100.0%
3 March, 2001.......... 100.0% 100.0% 100.0% 100.0% 100.0%
4 April, 2001.......... 100.0% 100.0% 100.0% 100.0% 100.0%
5 May, 2001............ 100.0% 100.0% 100.0% 100.0% 100.0%
6 June, 2001........... 100.0% 100.0% 100.0% 100.0% 100.0%
7 July, 2001........... 100.0% 100.0% 100.0% 100.0% 100.0%
8 August, 2001......... 100.0% 100.0% 100.0% 100.0% 100.0%
9 September, 2001...... 100.0% 100.0% 100.0% 100.0% 100.0%
10 October, 2001........ 100.0% 100.0% 100.0% 100.0% 100.0%
11 November, 2001....... 100.0% 100.0% 100.0% 100.0% 100.0%
12 December, 2001....... 100.0% 100.0% 100.0% 100.0% 100.0%
13 January, 2002........ 100.0% 100.0% 100.0% 100.0% 100.0%
14 February, 2002....... 100.0% 100.0% 100.0% 100.0% 100.0%
15 March, 2002.......... 100.0% 100.0% 100.0% 100.0% 100.0%
16 April, 2002.......... 100.0% 100.0% 100.0% 100.0% 100.0%
17 May, 2002............ 100.0% 100.0% 100.0% 100.0% 100.0%
18 June, 2002........... 100.0% 100.0% 100.0% 100.0% 100.0%
19 July, 2002........... 100.0% 100.0% 100.0% 100.0% 100.0%
20 August, 2002......... 100.0% 100.0% 100.0% 100.0% 100.0%
21 September, 2002...... 100.0% 100.0% 100.0% 100.0% 100.0%
22 October, 2002........ 100.0% 100.0% 100.0% 100.0% 100.0%
23 November, 2002....... 100.0% 100.0% 100.0% 100.0% 100.0%
24 December, 2002....... 100.0% 100.0% 100.0% 100.0% 100.0%
25 January, 2003........ 100.0% 100.0% 100.0% 100.0% 100.0%
26 February, 2003....... 100.0% 100.0% 100.0% 100.0% 100.0%
27 March, 2003.......... 100.0% 100.0% 100.0% 100.0% 100.0%
28 April, 2003.......... 100.0% 100.0% 100.0% 100.0% 100.0%
29 May, 2003............ 100.0% 100.0% 100.0% 100.0% 100.0%
30 June, 2003........... 100.0% 100.0% 100.0% 100.0% 100.0%
31 July, 2003........... 100.0% 100.0% 100.0% 100.0% 100.0%
32 August, 2003......... 100.0% 100.0% 100.0% 100.0% 100.0%
33 September, 2003...... 100.0% 100.0% 100.0% 100.0% 0.0%
34 October, 2003........ 100.0% 100.0% 100.0% 100.0% 0.0%
35 November, 2003....... 100.0% 100.0% 100.0% 100.0% 0.0%
36 December, 2003....... 100.0% 100.0% 100.0% 100.0% 0.0%
37 January, 2004........ 100.0% 100.0% 100.0% 100.0% 0.0%
38 February, 2004....... 100.0% 100.0% 100.0% 100.0% 0.0%
39 March, 2004.......... 100.0% 100.0% 100.0% 100.0% 0.0%
40 April, 2004.......... 100.0% 100.0% 100.0% 100.0% 0.0%
41 May, 2004............ 100.0% 100.0% 100.0% 100.0% 0.0%
42 June, 2004........... 100.0% 100.0% 100.0% 100.0% 0.0%
43 July, 2004........... 100.0% 100.0% 100.0% 0.0% 0.0%
44 August, 2004......... 100.0% 100.0% 100.0% 0.0% 0.0%
45 September, 2004...... 100.0% 100.0% 100.0% 0.0% 0.0%
46 October, 2004........ 100.0% 100.0% 100.0% 0.0% 0.0%
47 November, 2004....... 100.0% 100.0% 0.0% 0.0% 0.0%
48 December, 2004....... 100.0% 100.0% 0.0% 0.0% 0.0%
49 January, 2005........ 100.0% 100.0% 0.0% 0.0% 0.0%
50 February, 2005....... 100.0% 100.0% 0.0% 0.0% 0.0%
51 March, 2005.......... 100.0% 0.0% 0.0% 0.0% 0.0%
52 April, 2005.......... 100.0% 0.0% 0.0% 0.0% 0.0%
53 May, 2005............ 100.0% 0.0% 0.0% 0.0% 0.0%
54 June, 2005........... 100.0% 0.0% 0.0% 0.0% 0.0%
55 July, 2005........... 100.0% 0.0% 0.0% 0.0% 0.0%
56 August, 2005......... 100.0% 0.0% 0.0% 0.0% 0.0%
57 September, 2005...... 100.0% 0.0% 0.0% 0.0% 0.0%
58 October, 2005........ 100.0% 0.0% 0.0% 0.0% 0.0%
59 November, 2005....... 0.0% 0.0% 0.0% 0.0% 0.0%
Weighted Average
Life (years)......... 4.96 4.30 3.96 3.63 2.80
</TABLE>
(1) See pages 18 to 20 of these materials for the important notice regarding
calculation of the weighted average life and the assumptions upon which
these tables are based.
<PAGE>
YIELD AND PREPAYMENT CONSIDERATIONS
Monthly interest will be distributed to noteholders on each payment date to
the extent of the interest rate applicable to each class of notes applied to the
aggregate principal balance for each class of notes, as of the preceding payment
date or the closing date, as applicable (after giving effect to payments of
principal on such preceding payment date).
Upon a full or partial prepayment on a receivable, noteholders should
receive interest for the full month of such prepayment either:
(1) through the distribution of interest paid on the receivables;
(2) from a withdrawal from the spread account;
(3) by an advance from the servicer; or
(4) by a draw on the policy.
The receivables will have different contract rates. The contract rate on a
small percentage of the receivables will not exceed the sum of:
(1) the weighted average of the interest rates on the notes;
(2) the per annum rate used to calculate the insurance premium paid
to the insurer; and
(3) the per annum rate used to calculate the monthly servicing fee.
Disproportionate rates of prepayments between receivables with higher and
lower contract rates could affect the ability of the trust to pay monthly
interest to you.
THE INSURER
MBIA
MBIA Insurance Corporation ("MBIA"), the insurer, is the principal
operating subsidiary of MBIA Inc., a New York Stock Exchange listed company (the
"Company"). The Company is not obligated to pay the debts of or claims against
MBIA. MBIA is domiciled in the State of New York and licensed to do business in
and subject to regulation under the laws of all 50 states, the District of
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the Virgin Islands of the United States and the Territory of
Guam. MBIA has two European branches, one in the Republic of France and the
other in the Kingdom of Spain. New York has laws prescribing minimum capital
requirements, limiting classes and concentrations of investments and requiring
the approval of policy rates and forms. State laws also regulate the amount of
both the aggregate and individual risks that may be insured, the payment of
dividends by MBIA, changes in control and transactions among affiliates.
Additionally, MBIA is required to maintain contingency reserves on its
liabilities in certain amounts and for certain periods of time.
MBIA does not accept any responsibility for the accuracy or completeness of
these materials or any information or disclosure contained in, or omitted from,
these materials, other than with respect to the accuracy of the information
regarding the policy and MBIA set forth under the heading "The Insurer."
Additionally, MBIA makes no representation regarding the notes or the
advisability of investing in the notes.
The policy issued by MBIA as insurer is not covered by the
Property/Casualty Insurance Security Fund specified in Article 76 of the New
York Insurance Law.
<PAGE>
MBIA Financial Information
The consolidated financial statements of MBIA, a wholly owned subsidiary of
the Company, and its subsidiaries as of December 31, 1999 and December 31, 1998,
and for each of the three years in the period ended December 31, 1999, prepared
in accordance with generally accepted accounting principles ("GAAP"), included
in the Annual Report on Form 10-K of the Company for the year ended December 31,
1999, and the consolidated financial statements of MBIA and its subsidiaries as
of June 30, 2000, and for the six month periods ended June 30, 2000, and
June 30, 1999, included in the Quarterly Report on Form 10-Q of the Company for
the period ended June 30, 2000, are hereby incorporated by reference into these
materials and shall be deemed to be a part of these materials. Any statement
contained in a document incorporated by reference in these materials shall be
modified or superseded for purposes of these materials to the extent that a
statement contained in these materials or in any other subsequently filed
document which also is incorporated by reference in these materials modifies or
supersedes such statement. Any statement so modified or superseded shall not be
deemed, except as so modified or superseded, to constitute a part of these
materials.
All financial statements of MBIA and its subsidiaries included in documents
filed by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, subsequent to the date of these
materials and prior to the termination of the offering of the notes shall be
deemed to be incorporated by reference into these materials and to be a part of
these materials from the respective dates of filing such documents.
The tables below present selected financial information of MBIA determined
in accordance with statutory accounting practices prescribed or permitted by
insurance regulatory authorities ("SAP") and GAAP:
SAP
------------------------------------------------
December 31, June 30,
1999 2000
------------ -------------
(Audited) (Unaudited)
(in millions)
Admitted Assets $7,045 $7,349
Liabilities 4,632 4,880
Capital and Surplus 2,413 2,469
GAAP
------------------------------------------------
December 31, June 30,
1999 2000
------------ -------------
(Audited) (Unaudited)
(in millions)
Assets $7,446 $7,858
Liabilities 3,218 3,384
Shareholder's Equity 4,228 4,474
Where You Can Obtain Additional Information About MBIA
Copies of the financial statements of MBIA incorporated by reference in
these materials and copies of MBIA's 1999 year-end audited financial statements
prepared in accordance with SAP are available, without charge, from MBIA. The
address of MBIA is 113 King Street, Armonk, New York 10504. The telephone number
of MBIA is (914) 273-4545.
<PAGE>
Financial Strength Ratings of MBIA
Moody's Investors Service, Inc. rates the financial strength of MBIA "Aaa."
Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. rates the financial strength of MBIA "AAA."
Fitch IBCA, Inc. (formerly known as Fitch Investors Service, L.P.) rates
the financial strength of MBIA "AAA."
Each rating of MBIA should be evaluated independently. The ratings reflect
the respective rating agency's current assessment of the creditworthiness of
MBIA and its ability to pay claims on its policies of insurance. Any further
explanation as to the significance of the above ratings may be obtained only
from the applicable rating agency.
The above ratings are not recommendations to buy, sell or hold the notes,
and such ratings may be subject to revision or withdrawal at any time by the
rating agencies. Any downward revision or withdrawal of any of the above ratings
may have an adverse effect on the market price of the notes. MBIA does not
guaranty the market price of the notes nor does it guaranty that the ratings on
the notes will not be revised or withdrawn.
INDEX OF TERMS
We have listed below the terms used in these materials and the pages where
definitions of the terms can be found.
ABS............................................................18
Banc of America................................................ 2
Company........................................................24
ERISA.......................................................... 8
Funding Subsidiaries........................................... 6
GAAP...........................................................25
MBIA...........................................................24
Salomon........................................................ 2
SAP............................................................25
UAC............................................................ 3
