<PAGE> 1
Form 10-K
Securities and Exchange Commission
Washington, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ___________________
FIRST SIERRA RECEIVABLES II, INC.
(exact name of Registrant as specified in its charter)
Suite 7050
600 Travis Street
Houston, TX 77002
713-221-8822
Securities Registered Pursuant to Section 12(b) of the Securities and Exchange
Act of 1934: none
Securities Registered Pursuant to Section 12(g) of the Securities and Exchange
Act of 1934: none
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes No X
------ ------
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the Registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this form 10-K or any amendment to this
form 10-K [X]
The aggregate market value of the voting stock held by non-affiliates of the
Registrant. None
As of December 31, 1996 there were 1,000 shares of the Registrant's Common Stock
outstanding.
The Registrants meets the conditions set forth in General Instruction
(J)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with the
reduced disclosure format permitted thereunder.
<PAGE> 2
PART I
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
recently formed solely for the purpose of acquiring from First Sierra Financial,
Inc. certain leases (the "Leases") and interests in equipment underlying the
leases (together the "Receivables") and securitizing the Receivables through
the issuance of Certificates. As a bankruptcy remote entity, the Registrant's
operations are restricted so that (a) it does not engage in business with, or
incur liabilities to, any other entity which may bring bankruptcy proceedings
against the Registrant and (b) the risk is diminished that it will be
consolidated into the bankruptcy proceedings of any other entity. The Registrant
has no other assets except the Receivables and proceeds thereof.
Item 2. Properties
None
Item 3. Legal Proceedings
None
Item 4. Submission to Matters to a Vote of Security Holders
None
PART II
Item 5. Market for Registrants Common Equity and Related
Stockholder Matters
None
Item 6. Selected Financial Data
None
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Not Applicable
Item 8. Financial Statements and Supplemental Data
Not Applicable
2
<PAGE> 3
Item 9. Change in and Disagreements on Account and Financial
Disclosure
PART III
Item 10. Directors and Officers of the Registrant
The following individuals comprise the board of directors and the
officers of the Registrant:
<TABLE>
<CAPTION>
Name Position
- ---- --------
<S> <C>
Thomas Depping President
Sandy B. Ho Secretary
E. Roger Gebhart Vice President
Russell Strickland Director
Cheryl Strickland Director
</TABLE>
All Directors and officers hold office for the term of one year and until their
successors are elected and qualified, subject to earlier termination by removal
or resignation.
Item 11. Executive Compensation
Not Applicable
Item 12. Security Ownership of Certain Beneficial Owners and
Management
Not Applicable
Item 13. Certain Relationships and Related Transactions
Not Applicable
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form
8-K
1. Servicer Reports for the payment periods ending June, July, August,
September, October, November, December.
3
<PAGE> 4
SIGNATURES
Pursuant to the requirement of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
First Sierra Receivables II, Inc.
By:
---------------------------------
Name: E.R. Gebhart
Title: Vice President
Dated: December 31, 1996
Pursuant to the requirements of the Securities Exchange Act of 1938, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated:
By:
---------------------------------
Title: President
Name: Thomas J. Depping
Date: December 31, 1996
By:
---------------------------------
Title: Secretary
Name: Sandy B. Ho
Date: December 31, 1996
By:
---------------------------------
Title: Vice President
Name: E. Roger Gebhart
Date: December 31, 1996
By:
---------------------------------
Title: Director
Name: Russell Strickland
Date: December 31, 1996
By:
---------------------------------
Title: Director
Name: Cheryl Strickland
Date: December 31, 1996
4
<PAGE> 5
Supplemental Information:
None
5
<PAGE> 6
EXHIBIT INDEX
99.1 Servicer reports for the payment periods ending in June, July, August,
September, October, November, December.
<PAGE> 1
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
<TABLE>
CLASS A INTEREST SCHEDULE
<S> <C>
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest N/A
Prior Month Class A Overdue Interest N/A
Class A Interest Due 0.00
Class A Interest Paid 0.00
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,397,378.00
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
<PAGE> 2
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest N/A
Prior Month Class B-1 Overdue Interest N/A
Class B-1 Interest Due 0.00
Class B-1 Interest Paid 0.00
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,397,387.00
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
- ------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
<PAGE> 3
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 0.00
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 0.00
Class B-2 Interest Paid 0.00
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,397,387.00
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
<PAGE> 4
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,790,915.00
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee N/A
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 0.00
Servicer Fee Paid 0.00
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,790,915.00
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee N/A
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 0.00
Back-Up Servicer Fee Paid 0.00
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 0.00
Trustee Fee Paid 0.00
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0000%
Prior Premium Arrearage 0.00
Premium Amount Due 0.00
Premium Amount Paid 0.00
Current Premium Arrearage 0.00
</TABLE>
<PAGE> 5
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee by
the Certificateholders of at least 50% in aggregate principal amount of the
outstanding Class A Certificates a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a
"Notice of default" hereunder, or it, in any such case, the Depositor have
consented in writing that any such event shall be an Early Amortization
Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or any of its Indebtedness under any
law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall
occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under any
applicable Federal or State law, or to the consent by it to the filing of
such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of
the Depositor or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the making by it of an
admission by it in writing of its inability to pay its Debts generally as
they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder, our if, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
<PAGE> 6
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
---------------
(b) Certificate Insurer makes an Insured Payment No
---------------
(a) Gross Charge-Off Event (Yes/No) No
---------------
(b) Delinquency Trigger Event No
---------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in
section 11.01 (a) (ii) hereof) on the date of such payment, deposit,
transfer or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during each
Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to
occur of(x) the date on which written notice of such failure or
breach, requiring the situation giving rise to such failure or breach
to be remedied, shall have been given to a Servicing Officer of the
Servicer or a Responsible Officer of the Trustee by the Depositor or
any Holder of Certificates or (y) the date on which any Servicing
Officer or Responsible Officer of the Trustee first knows, or
reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian,
receiver, trustee or liquidator (or other similar official) of itself,
or of a substantial part of its property, or shall admit in writing
its inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an
agreement, composition, extension or adjustment with its creditors;
[11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any vourt of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property,or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in
effect, shall be filed and shall not be stayed, withdrawn or dismissed
within 60 days thereafter, or if, under the provisions of any of any
law providing for reorganization or winding up of debtors which may
apply to the Servicer, or any substantial part of its property, and
such jurisdication, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 60 days;
[11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
GROSS CHARGE-OFFS
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADLB Charge-Offs
-------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
2 months prior N/A N/A N/A N/A N/A
1 month prior N/A N/A N/A N/A N/A
Current 0 0 0 84,393,537 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----------- -------------
<S> <C> <C> <C>
2 months prior N/A N/A N/A
1 month prior N/A N/A N/A
Current month 1,928,902 84,393,537 2.29%
Delinquency Ratio: 2.29%
Maximum Delinquency Ratio: 6.00%
</TABLE>
<PAGE> 8
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults No
---------------
(b) Issuer Delinquency Ratio No
---------------
GROSS DEFAULTS
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ---------- -----------
<S> <C> <C> <C>
Current 0 84,393,537 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.33
ii Two
Trigger (i/ii) 2.14%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior N/A N/A N/A
1 month prior N/A N/A N/A
Current month 0 84,393,537 0.00%
Delinquency Ratio: 0.00%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADLB? No
-------------
(2) Has a Gross Charge-Off Event Occurred? No
-------------
(3) Has a Delinquency Event Occurred? No
-------------
<PAGE> 9
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADLB Total
----------
<S> <C> <C>
Current 82,361,155 97.71%
31-60 Days Past Due 1,664,321 1.97%
61-90 Days Past Due 264,581 0.31%
91+ Days Past Due 0 0.00%
Total 84,290,057 100.00%
</TABLE>
Certificate Factors
<TABLE>
<S> <C>
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
</TABLE>
Substitution Limits [Section 7]
<TABLE>
<S> <C>
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts
(5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 0.00
Current month ADCPB Substituted 118,645.27
Cumulative ADCPB Substituted 118,645.27
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distribution Distributions
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 55,198.12 0.00 127,333.91 0.00 0.00 0.00
LOCKBOX ACCOUNT
Collections Received [5.02 (b)(d)] 1,895,835.29
Payments with respect to Maintenance,
Taxes or Assessments 0.002 (c)(h)] 0.00
Excluded Amounts [5.02 (d)][Definition] (715,286.12) 0.00
Collections on Deposit due Collection
Account [5.02 (1,185,534.98)
COLLECTION ACCOUNT
Aggregate Amount of Actual Payments [6.01 b (i)] 1,185,534.98
Add: Servicer Advances [5.03][6.01 b (ii)] 740,580.27
Add: Sch. Payments, Final Payments or Purchase Option
from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 0.00
Add: Deposits from New Transferred Property Funding
Account [6.01 b (vi) 0.00
Add: Amount Payable to Class A Certificateholders
under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Servicing Deposits Related to Prepayment 181.97
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] (1,397,378.00)
Less: Amounts Servicer Advanced but deems
uncollectible [6.01 d] 0.00
SECURITY DEPOSIT ACCOUNT
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] (181.97)
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i] 1,397,378.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,397,378.00)
ENDING ACCOUNT BALANCES 50,212.31 528,919.22 127,151.94 0.00 0.00 0.00
</TABLE>
- -------------------------------------------------------------------------------
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 1,926,297.22
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [60.00b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account[6.05 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b(vii)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06b(vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.05b (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [0.00b (ix)] 0.00
(x) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xi) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xii) To the Servicer Security Deposit Refund under 6.02 C 181.97
(xiii) To the depositor the lessor of Base Principal Amount or ADCPB
new Contracts transferred to the Trust, [6.06 b (xii)] 0.00
If less than the Base Principal Amount, the remainder to the
New Transferred Property Funding Account [6.06 b (xii)] 0.00
(ix) To the Holder of the Trust Certificate any remaining amounts 737.25b (xiii)] 0.00
</TABLE>
<PAGE> 12
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
CLASS A INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,665,336.89
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,665,336.89
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,665,336.89
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,790,984
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,746.24
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,746.24
Servicer Fee Paid 35,746.24
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,790,984
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.40
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.40
Back-Up Servicer Fee Paid 929.40
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 0.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 15,371.00
</TABLE>
Page 4
<PAGE> 17
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee by
the Certificateholders of at least 50% in aggregate principal amount of the
outstanding Class A Certificates a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a
"Notice of default" hereunder, or it, in any such case, the Depositor have
consented in writing that any such event shall be an Early Amortization
Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or any of its Indebtedness under any
law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall
occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under any
applicable Federal or State law, or to the consent by it to the filing of
such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of
the Depositor or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the making by it of an
admission by it in writing of its inability to pay its Debts generally as
they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder, our if, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 18
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
---------------
(b) Certificate Insurer makes an Insured Payment No
---------------
(a) Gross Charge-Off Event (Yes/No) No
---------------
(b) Delinquency Trigger Event No
---------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(ii) Any failure on the part of the Servicer duly to observe or perform in any
material respect any other covenants or agreements of the Servicer set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Servicer set forth in
Section 3.02 of this Agreement, which failure or breach (A) materially
and adversely affects the rights of the Trustee, Certificateholders, the
Certificate Insurer or the Depositor and (B) continues unremedied for a
period of 30 days after the earlier to occur of(x) the date on which
written notice of such failure or breach, requiring the situation giving
rise to such failure or breach to be remedied, shall have been given to a
Servicing Officer of the Servicer or a Responsible Officer of the Trustee
by the Depositor or any Holder of Certificates or (y) the date on which
any Servicing Officer or Responsible Officer of the Trustee first knows,
or reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its inability
to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying
its debts as they come due or the Servicer shall make a general
assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now defined hereafter in effect) or an answer
admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any vourt of competent jurisdiction appointing, without
the consent (express or legally implied) of the Servicer, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Servicer, or any substantial part of its property,or sequestering any
substantial part of its property, and any such order, judgement or decree
or appointment or sequestration shall remain in force undismissed,
unstayed or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page
<PAGE> 19
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
GROSS CHARGE-OFFS (>=160)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior N/A N/A N/A N/A N/A
1 month prior 0 0 0 84,393,537 0.00%
Current 0 0 0 84,125,647 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior N/A N/A N/A
1 month prior 1,928,902 84,393,537 2.29%
Current month 2,599,721 84,125,647 3.09%
Delinquency Ratio: 2.69%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page
<PAGE> 20
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
---------------
(b) Issuer Delinquency Ratio No
---------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 84,125,647 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.29
ii Two
Trigger (i/ii) 2.18%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior N/A N/A N/A
1 month prior 0 84,393,537 0.00%
Current month 28,306 84,125,647 0.03%
Delinquency Ratio: 0.02%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADLB? No
-------------
(2) Has a Gross Charge-Off Event Occurred? No
-------------
(3) Has a Delinquency Event Occurred? No
-------------
Page
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADLB Total
<S> <C> <C>
Current 81,544,788 96.91%
31-60 Days Past Due 1,911,545 2.27%
61-90 Days Past Due 659,869 0.78%
91+ Days Past Due 28,306 0.03%
Total 84,144,509 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 118,645.27
Current month ADCPB Substituted 371,503.95
Cumulative ADCPB Substituted 490,149.22
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page
<PAGE> 22
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
<TABLE>
<CAPTION>
MONTHLY SERVICER CERTIFICATE New Transf.
FOR THE COLLECTION PERIOD ENDING 6/1/96 Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distribution Distributions
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 0.00
LOCKBOX ACCOUNT
Collections Received [5.02 (b)(d)] 2,080,145.99
Payments with respect to Maintenance, Taxes
or Assessments [5.02 (c)(h)] 0.00
Excluded Amounts [5.02(d)][Definition] (788,889.97)
Collections on Deposit due Collection
Account [5.02(d)] (1,260,169.34)
Excluded Amounts not yet transferred 624,190.09
Payments due Collection Acct. from last
2 business days 96,534.82
Payments deposited to Lockbox Account in error 61,112.76
-------------
Ending Balance 812,924.35
COLLECTION ACCOUNT
BEGINNING BALANCE 0.00
Aggregate Amount of Actual Payments [6.01 b (i)] 1,488,083.92
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from
Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 1,731.32
Add: Deposits from New Transferred Property Funding Account
[6.01 b(vi)] 0.00
Add: Amount Payable to Class A Certificateholders under
6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days (96,534.82)
Less: Payments not yet transferred to the Collection Account (131,379.76)
------------
Ending Balance @ 5/31/96 1,261,900.66
Add: Servicer Advances to be deposited on Determination Date 752,376.14
Add: Payments due Collection Acct from last 2 business days 96,534.82
Add: Payments not yet transferred to the Collection Account 131,379.76
Add: Amounts to Collection Account from Security Deposit
Account [6.07e] 725.01
------------
Adjusted Collection Account Balance 2,242,916.39
SECURITY DEPOSIT ACCOUNT
Beginning Balance 0.00
Add: Balance deposited on closing date 127,151.94
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 305.28
----------
Ending Balance @ 5/31/96 127,457.22
Less: Amounts to Collection Account [6.02 c] (725.01)
Adjusted Security Deposit Account Balance 126,732.21
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New
Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property
[6.05 iii] 0.00
----
Ending Balance @ 5/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans.
Property [6.05 i]) 1,665,336.89
Less:Amount Transferred from Collection Account in consid. of New Trans.
Property [6.05iii] (1,665,336.89)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page
<PAGE> 23
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,242,916.39
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [60.00b (i)]
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06b(i)] 0.00
b (ii)]
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,746.24
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.40
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b] 0.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06v(vii)] 291.67
(viii) Class A Certificate Interest and Overdue Class A
Interest [6.06b(vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Inter 21,819.49
[6.06 b(viii)]
(x) Class B-2 Certificate Interest and Overdue Class B-2 Inter 23,363.73
[6.06 b(ix)]
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment 0.00
Date [6.06 b (x)]
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 C 725.01
(ix) To the depositor the lessor of Base Principal Amount or ADCPS new
Contracts transferred to the Trust, [6.06 b (xii)] 1,665,336.89
If less than the Base Principal Amount, the remainder to the
New Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts 73,542.06
[6.06b (xiii)]
</TABLE>
Page
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
--------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page
<PAGE> 25
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
CLASS A INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,591,633.67
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 26
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,591,633.67
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 27
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,591,633.67
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 28
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,791,611
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,746.50
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,746.50
Servicer Fee Paid 35,746.50
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,791,611
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.41
Back-Up Servicer Fee Paid 929.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
</TABLE>
Page 4
<PAGE> 29
CERTIFICATE PREMIUM SCHEDULE
<TABLE>
<S> <C>
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 0.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 15,371.00
</TABLE>
Page 5
<PAGE> 30
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
Page 6
<PAGE> 31
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 7
<PAGE> 32
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer
or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during
each Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to occur
of(x) the date on which written notice of such failure or breach,
requiring the situation giving rise to such failure or breach to be
remedied, shall have been given to a Servicing Officer of the Servicer
or a Responsible Officer of the Trustee by the Depositor or any Holder
of Certificates or (y) the date on which any Servicing Officer or
Responsible Officer of the Trustee first knows, or reasonably should
have known, of such failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any vourt of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property,or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within
60 days thereafter, or if, under the provisions of any of any law
providing for reorganization or winding up of debtors which may apply
to the Servicer, or any substantial part of its property, and such
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
Page 6
<PAGE> 33
(viii)Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 7
<PAGE> 34
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
GROSS CHARGE-OFFS (>=160)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 84,393,537 0.00%
1 month prior 0 0 0 84,125,647 0.00%
Current 0 0 0 84,145,443 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 1,928,902 84,393,537 2.29%
1 month prior 2,599,721 84,125,647 3.09%
Current month 2,687,262 84,145,443 3.19%
Delinquency Ratio: 2.86%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 8
<PAGE> 35
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ---------- -----------
<S> <C> <C> <C>
Current 0 84,145,443 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.17
ii Two
Trigger (i/ii) 2.31%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 0 84,393,537 0.00%
1 month prior 28,306 84,125,647 0.03%
Current month 214,664 84,145,443 0.26%
Delinquency Ratio: 0.10%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
-------------
(2) Has a Gross Charge-Off Event Occurred? No
-------------
(3) Has a Delinquency Event Occurred? No
-------------
Page 9
<PAGE> 36
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 81,458,181 96.81%
31-60 Days Past Due 1,788,182 2.13%
61-90 Days Past Due 684,416 0.81%
91+ Days Past Due 214,664 0.26%
Total 84,145,443 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 371,503.95
Current month ADCPB Substituted 237,565.11
Cumulative ADCPB Substituted 727,714.33
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 37
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 812,924.35
LOCKBOX ACCOUNT
Transfer of prior period Payments yet transferred to
Collection (131,379.76)
Transfer of prior period Excluded Amounts not yet
transferred (624,190.09)
Collections Received [5.02 (b)(d)] 2,133,646.74
Excluded Amounts [5.02(d)][Definition] (798,890.30)
Collections on Deposit due Collection Account
[5.02 (d)] (1,146,901.84)
Ending Balance @ 7/1/96 245,209.10
COLLECTION ACCOUNT
BEGINNING BALANCE 1,261,900.66
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 6/1/96
Add: Servicer Advance 752,376.14
Add: Payments due Collection Account from last 2 business days 96,534.82
Add: Add'l transfers 131,379.76
Add: Amounts to Collection Acct from Security deposit account 725.01
Less: Total distributions on 6/10/96 (2,242,916.39)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 1,180,421.53
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec.
Deposit Account [6.01 b(iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 2,684.69
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding
Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days (130,054.51)
Ending Balance @ 7/1/96 1,053,051.71
Add: Servicer Advances to be deposited on Determination Date 828,858.24
Add:Payments due Collection Acct from last 2 business days 130,054.51
Add: Payments not yet transferred to the Collection Account 115,408.48
Less: Excluded Amts. transferred to the Collection Account (4,700.21)
Add: Amounts to Collection Account from Security Deposit Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,122,672.73
</TABLE>
Page 10
<PAGE> 38
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 126,732.21
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 538.54
Ending Balance @ 5/31/96 127,270.75
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 127,270.75
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 5/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,591,633.67
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,591,633.67)
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 39
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,122,672.73
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06
b (ii) 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection
Account 0.00
(iv) Current and unpaid Servicing Fees 35,746.50
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b
(vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b(viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b(xi)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06b(x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 C 0.00
(ix) To the depositor the lessor of Base Principal Amount or ADCPB new
Contracts transferred to the Trust, [6.06 b (xii)] 1,591,633.67
If less than the Base Principal Amount, the remainder to he New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 12,355.36
</TABLE>
Page 12
<PAGE> 40
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
- --------------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page 13
<PAGE> 41
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 85,791,611.02
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 84,136,906.13
Base Principal Amount (Prior - Current) 1,654,704.88
Add: ADCPB of New Transferred Property 1,654,218.35
Ending ADCPB (Current + ADCPB of New Property) 85,791,124.49
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,654,704.88
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 42
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,654,704.88
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 43
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,654,704.88
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 44
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,791,611
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,746.50
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,746.50
Servicer Fee Paid 35,746.50
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,791,611
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.41
Back-Up Servicer Fee Paid 929.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 0.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 15,371.00
</TABLE>
Page 4
<PAGE> 45
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 46
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer
or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during
each Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to occur
of(x) the date on which written notice of such failure or breach,
requiring the situation giving rise to such failure or breach to be
remedied, shall have been given to a Servicing Officer of the Servicer
or a Responsible Officer of the Trustee by the Depositor or any Holder
of Certificates or (y) the date on which any Servicing Officer or
Responsible Officer of the Trustee first knows, or reasonably should
have known, of such failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any vourt of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property,or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within
60 days thereafter, or if, under the provisions of any of any law
providing for reorganization or winding up of debtors which may apply
to the Servicer, or any substantial part of its property, and such
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 47
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
GROSS CHARGE-OFFS (>=160)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 84,125,647 0.00%
1 month prior 0 0 0 84,145,443 0.00%
Current 0 0 0 83,999,395 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,599,721 84,125,647 3.09%
1 month prior 2,687,262 84,145,443 3.19%
Current month 3,881,760 83,999,395 4.62%
Delinquency Ratio: 3.64%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 48
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 83,999,395 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.25
ii Two
Trigger (i/ii) 2.22%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 28,306 84,125,647 0.03%
1 month prior 214,664 84,145,443 0.26%
Current month 553,629 83,999,395 0.66%
Delinquency Ratio: 0.32%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 49
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 80,117,636 95.38%
31-60 Days Past Due 2,756,339 3.28%
61-90 Days Past Due 571,791 0.68%
91+ Days Past Due 553,629 0.66%
----------
Total 83,999,395 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 237,565.11
Current month ADCPB Substituted 182,319.51
Cumulative ADCPB Substituted 910,033.84
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 50
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 245,209.10
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet
transferred to Collection Account (130,054.51)
Transfer of prior period Excluded Amounts not
yet transferred (36,340.01)
Collections Received [5.02 (b)(d)] 2,216,903.80
Excluded Amounts [5.02 (d)][Definition] (848,325.09)
Collections on Deposit due Collection Account
[5.02 (d)] (1,154,111.26)
Ending Balance @ 8/1/96 293,282.03
COLLECTION ACCOUNT
BEGINNING BALANCE @ 7/1/96 1,053,051.71
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/96
Add: Servicer Advance 828,858.24
Add: Payments due Collection Account from last 2 business days 130,054.51
Add: Add'l transfers 115,408.48
Less: Return of Prior month Excluded Amts. sent to Collection
Acct. in error (4,700.21)
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 7/10/96 (2,122,672.73)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 1,263,033.62
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec.
Deposit Account [6.01 b(iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,470.07
Add: Deposits from New Transferred Property Funding Account
[6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d
[6.01 b (vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding
Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in
calendar mo. (122,829.49)
Ending Balance @ 7/31/96 1,143,674.20
Add: Payment transferred to Coll. Acct. from 2 days prior 13,907.13
Ending Balance @ 8/1/96 1,157,581.33
Add: Servicer Advances to be deposited on Determination Date 751,058.64
Add: Payments due Collection Acct from last 2 business days 217,619.98
Add: Payments not yet transferred to the Collection Account 72,562.76
Add: Amounts to Collection Account from Security Deposit Account
[6.02 c] 0.00
------------
Adjusted Collection Account Balance 2,198,822.71
</TABLE>
Page 10
<PAGE> 51
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 127,270.75
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 562.57
------
Ending Balance @ 5/31/96 127,833.32
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 127,833.32
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 7/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,654,218.35
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,654,218.35)
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 52
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,198,822.71
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 (ii) 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,746.50
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 30,742.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b(viii0] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b(ix) 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date
[6.06 b(x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new
Contracts transferred to the Trust, [6.06 b (xii)] 1,654,704.88
If less than the Base Principal Amount, the remainder to the New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b(x)] 10,063.12
</TABLE>
Page 12
<PAGE> 53
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
--------------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page 13
<PAGE> 54
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 85,791,124.49
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 84,123,762.26
Base Principal Amount (Prior - Current) 1,667,362.22
Add: ADCPB of New Transferred Property 1,670,586.92
Ending ADCPB (Current + ADCPB of New Property) 85,794,349.18
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,667,362.22
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 55
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,667,362.22
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 56
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,667,362.22
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 57
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,791,124
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,746.30
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,746.30
Servicer Fee Paid 35,746.30
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,791,124
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.40
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.40
Back-Up Servicer Fee Paid 929.40
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 58
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 59
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in
section 11.01 (a)(ii) hereof) on the date of such payment, deposit,
transfer or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during each
Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to
occur of(x) the date on which written notice of such failure or
breach, requiring the situation giving rise to such failure or breach
to be remedied, shall have been given to a Servicing Officer of the
Servicer or a Responsible Officer of the Trustee by the Depositor or
any Holder of Certificates or (y) the date on which any Servicing
Officer or Responsible Officer of the Trustee first knows, or
reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian,
receiver, trustee or liquidator (or other similar official) of itself,
or of a substantial part of its property, or shall admit in writing
its inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an
agreement, composition, extension or adjustment with its creditors;
[11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any court of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property,or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in
effect, shall be filed and shall not be stayed, withdrawn or dismissed
within 60 days thereafter, or if, under the provisions of any of any
law providing for reorganization or winding up of debtors which may
apply to the Servicer, or any substantial part of its property, and
such jurisdiction, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 60 days;
[11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) For so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
Page 6
<PAGE> 60
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 84,145,443 0.00%
1 month prior 0 0 0 83,999,395 0.00%
Current 100,353 100,353 0 83,942,153 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,687,262 84,145,443 3.19%
1 month prior 3,881,760 83,999,395 4.62%
Current month 3,503,237 83,942,153 4.17%
Delinquency Ratio: 4.00%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 61
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 83,942,153 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.20
ii Two
Trigger (i/ii) 2.27%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 214,664 84,145,443 0.26%
1 month prior 553,629 83,999,395 0.66%
Current month 446,572 83,942,153 0.53%
Delinquency Ratio: 0.48%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 62
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 80,438,917 95.83%
31-60 Days Past Due 2,530,264 3.01%
61-90 Days Past Due 526,400 0.63%
91+ Days Past Due 446,572 0.53%
-------------
Total 83,942,153 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 182,319.51
Current month ADCPB Substituted 209,538.18
Cumulative ADCPB Substituted 1,119,572.02
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 63
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Lockbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 293,282.03
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred
to Collection Account (122,829.49)
Transfer of prior period Excluded Amounts not yet
transferred (10,540.53)
Collections Received [5.02 (b)(d)] 2,280,536.26
Excluded Amounts [5.02(d)][Definition] (833,163.87)
Collections on Deposit due Collection Account
[5.02(d)] (1,360,479.56)
Ending Balance @ 9/1/96 246,804.84
COLLECTION ACCOUNT
BEGINNING BALANCE @ 8/1/96 1,157,581.33
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/96
Add: Servicer Advance 751,058.64
Add: Payments due Collection Account from last 2 business
days 217,619.98
Add: Add'l transfers 72,562.76
Add: Amounts to Collection Acct from Security deposit
account 0.00
Less: Total distributions on 7/10/96 (2,198,822.71)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 9/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 1,269,185.55
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from
Sec. Deposit Account [6.01 b(iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,520.63
Add: Deposits from New Transferred Property Funding Account
[6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under
6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period
[6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible
[6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business
days in calendar mo. 0.00
Add: Overage in 8/7 Wire re: add'l. transfers
(72,652.76 vs. 72,562.76) 90.00
Ending Balance @ 8/30/96 1,272,796.18
Ending Balance @ 9/1/96 1,272,796.18
Add: Servicer Advances to be deposited on Determination Date 813,682.65
Add: Payments due Collection Acct from last 2 business days 120,019.23
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit
Account [6.02 c] 0.00
Less: Correction of overage in 8/7 Wire (90.00)
-------------
Adjusted Collection Account Balance 2,206,498.06
</TABLE>
Page 10
<PAGE> 64
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 127,833.32
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 562.96
----------
Ending Balance @ 8/31/96 128,396.28
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 128,396.28
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
------------
Ending Balance @ 8/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,670,586.92
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,670,586.92)
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 65
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,206,498.06
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep. in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,746.30
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.40
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii) 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 (b)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 (b)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date
[6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 c 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new
Contracts transferred to the Trust, [6.06 b (xii)] 1,667,362.22
If less than the Base Principal Amount, the remainder to the New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts
[6.06 b (xiii)] 20,452.34
</TABLE>
REVIEWED BY:
--------------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page 12
<PAGE> 66
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,349.18
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,826,254.53
Base Principal Amount (Prior - Current) 1,968,094.65
Add: ADCPB of New Transferred Property 1,968,268.83
Ending ADCPB (Current + ADCPB of New Property) 85,794,523.36
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,968,094.65
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 67
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,968,094.65
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 68
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,968,094.65
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 69
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,349
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.65
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.65
Servicer Fee Paid 35,747.65
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,349
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.44
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.44
Back-Up Servicer Fee Paid 929.44
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 70
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, or if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 71
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in
section 11.01(a) (ii) hereof) on the date of such payment, deposit,
transfer or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during each
Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to
occur of(x) the date on which written notice of such failure or
breach, requiring the situation giving rise to such failure or breach
to be remedied, shall have been given to a Servicing Officer of the
Servicer or a Responsible Officer of the Trustee by the Depositor or
any Holder of Certificates or (y) the date on which any Servicing
Officer or Responsible Officer of the Trustee first knows, or
reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian,
receiver, trustee or liquidator (or other similar official) of itself,
or of a substantial part of its property, or shall admit in writing
its inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an
agreement, composition, extension or adjustment with its creditors;
[11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any court of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property,or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in
effect, shall be filed and shall not be stayed, withdrawn or dismissed
within 60 days thereafter, or if, under the provisions of any of any
law providing for reorganization or winding up of debtors which may
apply to the Servicer, or any substantial part of its property, and
such jurisdiction, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 60 days;
[11.01 (a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 72
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 83,999,395 0.00%
1 month prior 100,353 100,353 0 83,942,153 0.00%
Current 344,696 344,696 0 83,931,117 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,881,760 83,999,395 4.62%
1 month prior 3,503,237 83,942,153 4.17%
Current month 3,957,922 83,931,117 4.72%
Delinquency Ratio: 4.50%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 73
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 83,931,117 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.18
ii Two
Trigger (i/ii) 2.29%
</TABLE>
ISSUER DELINQUENCY RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 553,629 83,999,395 0.66%
1 month prior 446,572 83,942,153 0.53%
Current month 392,982 83,931,117 0.47%
Delinquency Ratio: 0.55%
Maximum Delinquency Ratio: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 74
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
---------- -------
<S> <C> <C>
Current 79,973,195 95.28%
31-60 Days Past Due 2,548,544 3.04%
61-90 Days Past Due 1,016,396 1.21%
91+ Days Past Due 392,982 0.47%
----------
Total 83,931,117 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 209,538.18
Current month ADCPB Substituted 415,253.09
Cumulative ADCPB Substituted 1,534,825.11
Prior month ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 75
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
<TABLE>
<CAPTION> New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 246,804.84
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet
transferred to Collection Account (120,019.23)
Transfer of prior period Excluded Amounts
not yet transferred (47,161.20)
Collections Received [5.02 (b)(d)] 2,577,789.44
Excluded Amounts [5.02 (d)][Definition] (894,556.88)
Collections on Deposit due Collection Account
[5.02 (d)] (1,358,445.18)
Ending Balance @ 9/1/96 404,411.79
COLLECTION ACCOUNT
BEGINNING BALANCE @ 9/1/96 1,272,796.18
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 9/1/96
Add: Servicer Advance 813,682.65
Add: Payments due Collection Account from last 2 business days 120,019.23
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 7/10/96 (2,206,498.06)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 10/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 1,359,467.35
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec.
Deposit Account [6.01 b(iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 4,522.27
Add: Deposits from New Transferred Property Funding Account
[6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d
[6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Fundi
Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d 0.00
Less: Payments due Collection Acct. from last 2 business days i
calendar mo. 0.00
Ending Balance @ 9/30/96 1,363,989.62
Add: Pmt. transferred to Coll. Acct. from 2 days prior
(9/27/96) 28,629.00
Ending Balance @ 10/1/96 1,392,618.62
Add: Servicer Advances to be deposited on Determination Date 769,591.49
Add: Payments due Collection Acct from last 2 business days 361,857.05
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit
Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,524,067.16
</TABLE>
Page 10
<PAGE> 76
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 128,396.28
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 551.61
----------
Ending Balance @ 9/30/96 128,947.89
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 128,947.89
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
-------------
Ending Balance @ 9/30/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,968,268.83
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,968,268.83)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 77
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,524,067.16
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep. in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.65
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.44
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 c 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new
Contracts transferred to the Trust, [6.06 b (xii)] 1,968,094.65
If less than the Base Principal Amount, the remainder to the New Transferred
Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 37,287.64
</TABLE>
Page 12
<PAGE> 78
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 15,371.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal
[6.06 c (xii)] provided no restricting event exists 0.00
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal
[6.06 c (xiii)] provided no restricting event or issuer restricting event exists 0.00
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
--------------------------------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page 13
<PAGE> 79
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,523.36
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,969,922.62
Base Principal Amount (Prior - Current) 1,824,600.75
Add: ADCPB of New Transferred Property 1,824,738.98
Ending ADCPB (Current + ADCPB of New Property) 85,794,661.59
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,824,600.75
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 80
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,824,600.75
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
---------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 81
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,824,600.75
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 82
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,523
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.72
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.72
Servicer Fee Paid 35,747.72
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,523
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.44
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.44
Back-Up Servicer Fee Paid 929.44
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 73,780,187.00
Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 83
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 84
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set forth
in Section 3.02 of this Agreement, which failure or breach (A) materially
and adversely affects the rights of the Trustee, Certificateholders, the
Certificate Insurer or the Depositor and (B) continues unremedied for a
period of 30 days after the earlier to occur of (x) the date on which
written notice of such failure or breach, requiring the situation giving
rise to such failure or breach to be remedied, shall have been given to a
Servicing Officer of the Servicer or a Responsible Officer of the Trustee
by the Depositor or any Holder of Certificates or (y) the date on which
any Servicing Officer or Responsible Officer of the Trustee first knows,
or reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its inability
to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying
its debts as they come due or the Servicer shall make a general
assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now defined hereafter in effect) or an answer
admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any court of competent jurisdiction appointing, without
the consent (express or legally implied) of the Servicer, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Servicer, or any substantial part of its property,or sequestering any
substantial part of its property, and any such order, judgement or decree
or appointment or sequestration shall remain in force undismissed,
unstayed or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against he Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01 (a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 85
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
Gross Charge-Offs (>=160 and accounts bought back by source)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 100,353 100,353 0 83,942,153 0.00%
1 month prior 344,696 344,696 0 83,931,117 0.00%
Current 140,393 140,393 0 84,082,027 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ Delinquencies
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 3,503,237 83,942,153 4.17%
1 month prior 3,957,922 83,931,117 4.72%
Current month 3,996,394 84,082,027 4.75%
Delinquency Ratio: 4.55%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 86
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
--------------
(b) Issuer Delinquency Ratio No
--------------
Gross Defaults (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ---------- -----------
<S> <C> <C> <C>
Current 0 84,082,027 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.14
ii Two
Trigger (i/ii) 2.33%
</TABLE>
Issuer Delinquency Ratio (90+days)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 446,572 83,942,153 0.53%
1 month prior 392,982 83,931,117 0.47%
Current month 675,283 84,082,027 0.80%
Delinquency Ratio: 0.60%
Maximum Delinquency Ratio: 2.50%
</TABLE>
Early Amortization Event
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 87
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 79,907,489 95.24%
31-60 Days Past Due 2,451,649 2.92%
61-90 Days Past Due 869,462 1.04%
91+ Days Past Due 675,283 0.80%
----------
Total 83,903,883 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
Initial ADCPB 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month ADCPB Substituted 415,253.09
Current month ADCPB Substituted 226,055.49
Cumulative ADCPB Substituted 1,760,880.60
Prior month ADCPB Substituted for Defaulted Contracts 344,696
Current month ADCPB Substituted Defaulted Contracts 140,393
Cumulative ADCPB Substituted for Defaulted Contracts 585,442
</TABLE>
Page 9
<PAGE> 88
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
<TABLE>
<CAPTION>
MONTHLY SERVICER CERTIFICATE New Transf.
FOR THE COLLECTION PERIOD ENDING 11/1/96 Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 404,411.79
LOCKBOX ACCOUNT
Transfer of prior period Payments not
yet transferred to Collection Account (317,843.71)
Transfer of prior period Excluded Amounts not
yet transferred (61,484.25)
Collections Received [5.02 (b)(d)] 2,706,314.65
Excluded Amounts [5.02 (d)][Definition] (815,522.46)
Collections on Deposit due Collection Account
[5.02 (d)] 1,586,578.19)
Ending Balance @ 10/1/96 329,297.83
COLLECTION ACCOUNT
BEGINNING BALANCE @ 10/1/96 1,363,989.62
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 10/1/96
Add: Servicer Advance 769,591.49
Add: Payments due Collection Account from last 2
business days prior period 361,857.05
Add: Payments due Collection Account from prior period
deposited 10/1/96 28,629.00
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit 0.00
account
Less: Total distributions on 7/10/96 (2,524,067.16)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 1,210,235.31
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option
from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 4,186.33
Add: Deposits from New Transferred Property Funding
Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under
6.04 d [6.01 b (vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period
[6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible
[6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days
in calendar mo. 0.00
Ending Balance @ 10/31/96 1,214,421.64
Add: Pmt. transferred to Coll. Acct. from 2 days prior
(10/30/96) 75,970.07
Ending Balance @ 11/1/96 1,290,391.71
Add: Servicer Advances to be deposited on Determination
Date 875,914.89
Add: Payments due Collection Acct from last 2 business days 158,653.09
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit
Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,324,959.69
</TABLE>
Page 10
<PAGE> 89
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 128,947.89
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 573.66
------
Ending Balance @ 10/31/96 129,521.55
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 129,521.55
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 10/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,824,738.98
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,824,738.98)
--------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 90
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,324,959.69
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.72
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.44
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 c 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,824,600.75
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] (18,326.01)
</TABLE>
Page 12
<PAGE> 91
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A
Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1
Principal [6.06 c (xii)] provided no restricting event exists 0.00
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class
B-2 Principal [6.06 c (xiii)] provided no restricting event or
issuer restricting event exists 0.00
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
-------------------------------------------------
SANDY B. HO
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Page 13
<PAGE> 92
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,661.59
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,926,280.68
Base Principal Amount (Prior - Current) 1,868,380.92
Add: ADCPB of New Transferred Property 1,868,381.06
Ending ADCPB (Current + ADCPB of New Property) 85,794,661.74
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 1,868,380.92
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 93
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 1,868,380.92
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 94
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 1,868,380.92
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 95
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 85,794,662
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.78
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.78
Servicer Fee Paid 35,747.78
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,662
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.44
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.44
Back-Up Servicer Fee Paid 929.44
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Class A Certificate Principal Balance 73,780,187.00
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 96
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee by
the Certificateholders of at least 50% in aggregate principal amount of the
outstanding Class A Certificates a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a
"Notice of default" hereunder, or it, in any such case, the Depositor have
consented in writing that any such event shall be an Early Amortization
Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or any of its Indebtedness under any
law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall
occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under any
applicable Federal or State law, or to the consent by it to the filing of
such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of
the Depositor or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the making by it of an
admission by it in writing of its inability to pay its Debts generally as
they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder, our if, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 97
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
------------
(b) Certificate Insurer makes an Insured Payment No
------------
(a) Gross Charge-Off Event (Yes/No) No
------------
(b) Delinquency Trigger Event No
------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in any
material respect any other covenants or agreements of the Servicer set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Servicer set forth in
Section 3.02 of this Agreement, which failure or breach (A) materially
and adversely affects the rights of the Trustee, Certificateholders, the
Certificate Insurer or the Depositor and (B) continues unremedied for a
period of 30 days after the earlier to occur of (x) the date on which
written notice of such failure or breach, requiring the situation giving
rise to such failure or breach to be remedied, shall have been given to a
Servicing Officer of the Servicer or a Responsible Officer of the Trustee
by the Depositor or any Holder of Certificates or (y) the date on which
any Servicing Officer or Responsible Officer of the Trustee first knows,
or reasonably should have known, of such failure or breach;
[11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its inability
to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying
its debts as they come due or the Servicer shall make a general
assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now defined hereafter in effect) or an answer
admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any court of competent jurisdiction appointing, without
the consent (express or legally implied) of the Servicer, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Servicer, or any substantial part of its property,or sequestering any
substantial part of its property, and any such order, judgement or decree
or appointment or sequestration shall remain in force undismissed,
unstayed or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) For so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 98
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- ------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 344,696 344,696 0 83,931,117 0.00%
1 month prior 140,393 140,393 0 84,082,027 0.00%
Current 284,791 284,791 0 83,828,578 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,957,922 83,931,117 4.72%
1 month prior 3,996,394 84,082,027 4.75%
Current month 4,226,781 83,828,578 5.04%
Delinquency Ratio: 4.84%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 99
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 83,828,578 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.34%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 446,572 83,931,117 0.53%
1 month prior 392,982 84,082,027 0.47%
Current month 635,527 83,828,578 0.76%
Issuer Delinquency Trigger Ratio: 0.59%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 100
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 79,601,798 94.96%
31-60 Days Past Due 2,251,609 2.69%
61-90 Days Past Due 1,339,645 1.60%
91+ Days Past Due 635,527 0.76%
----------
Total 83,828,578 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month Cumulative ADCPB Substituted 1,760,880.60
Current month ADCPB Substituted 232,569.41
Cumulative ADCPB Substituted 1,993,450.01
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 585,442
Current month ADCPB Substituted Defaulted Contracts 284,791
Cumulative ADCPB Substituted for Defaulted Contracts 870,233
</TABLE>
Page 9
<PAGE> 101
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 329,297.83
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet
transferred to Collection Account (158,653.09)
Transfer of prior period Excluded Amounts
not yet transferred (29,349.65)
Collections Received [5.02 (b)(d)] 2,247,938.44
Excluded Amounts [5.02 (d)][Definition] (888,632.58)
Collections on Deposit due Collection
Account [5.02 (d)] (1,190,764.95)
Ending Balance @ 12/1/96 309,836.00
COLLECTION ACCOUNT
BEGINNING BALANCE @ 11/1/96 1,290,391.71
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/96
Add: Servicer Advance 875,914.89
Add: Payments due Collection Account from last 2 business
days prior period 158,653.09
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit
account 0.00
Less: Total distributions on 11/11/96 (2,324,959.69 )
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/96
------------- -
Aggregate Amount of Actual Payments [6.01 b (i)] 1,293,651.15
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option
from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,488.75
Add: Deposits from New Transferred Property Funding
Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under
6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection
Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible
[6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business
days in calendar mo. 0.00
Ending Balance @ 11/30/96 and 12/1/96 1,297,139.90
Add: Servicer Advances to be deposited on Determination Date 931,359.79
Add: Payments due Collection Acct from last 2 business days 158,566.24
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security
Deposit Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,387,065.93
</TABLE>
Page 10
<PAGE> 102
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 129,521.55
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 558.69
------
Ending Balance @ 11/30/96 130,080.24
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 130,080.24
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
-------------
Ending Balance @ 11/30/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,868,381.06
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,868,381.06)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 103
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,387,065.93
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.78
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.44
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 c 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,868,380.92
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Page 12
<PAGE> 104
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
-----------------------------------
CRAIG SPENCER
CHIEF ACCOUNTING OFFICER
Page 13
<PAGE> 105
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
ADCPB BALANCE
- -------------
<S> <C>
Prior Month ADCPB 72,024,443.60
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 70,243,296.92
Base Principal Amount (Prior - Current) 1,781,146.69
Add: ADCPB of New Transferred Property 1,781,194.46
Ending ADCPB (Current + ADCPB of New Property) 72,024,491.37
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 0.00
Current Month Class A Overdue Interest 332,224.75
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,781,146.69
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 106
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,781,146.69
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 107
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,781,146.69
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 108
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
- ----------------------
<S> <C>
Prior Month ADCPB 72,024,444
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.18
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.18
Servicer Fee Paid 30,010.18
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 72,024,444
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
- --------------------
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
- ----------------------------
Initial Class A Balance 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 109
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
Early Amortization Events
- -------------------------
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice specifying
such default or breach and requiring it to be remedied and stating that
such notice is a "Notice of default" hereunder, or it, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any of
its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or for
any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that any
such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 110
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
RESTRICTING EVENT CALCULATIONS
(a) Event of Servicer Termination (Yes/No) No
---------
(b) Certificate Insurer makes an Insured Payment No
---------
(a) Gross Charge-Off Event (Yes/No) No
---------
(b) Delinquency Trigger Event No
---------
EVENTS OF SERVICER TERMINATION
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in any
material respect any other covenants or agreements of the Servicer set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Servicer set forth in
Section 3.02 of this Agreement, which failure or breach (A) materially
and adversely affects the rights of the Trustee, Certificateholders, the
Certificate Insurer or the Depositor and (B) continues unremedied for a
period of 30 days after the earlier to occur of (x) the date on which
written notice of such failure or breach, requiring the situation giving
rise to such failure or breach to be remedied, shall have been given to a
Servicing Officer of the Servicer or a Responsible Officer of the Trustee
by the Depositor or any Holder of Certificates or (y) the date on which
any Servicing Officer or Responsible Officer of the Trustee first knows,
or reasonably should have known, of such failure or breach; [11.01
(a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its inability
to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying
its debts as they come due or the Servicer shall make a general
assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now defined hereafter in effect) or an answer
admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any court of competent jurisdiction appointing, without
the consent (express or legally implied) of the Servicer, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Servicer, or any substantial part of its property, or sequestering any
substantial part of its property, and any such order, judgment or decree
or appointment or sequestration shall remain in force undismissed,
unstayed or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01 (a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) For so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 111
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 0 0.00%
1 month prior 0 0 0 0 0.00%
Current 0 0 0 70,488,682 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 0 0 0.00%
1 month prior 0 0 0.00%
Current month 2,591,745 70,488,682 3.68%
Delinquency Ratio: 1.23%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 112
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 70,488,682 0.00%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.17
ii Two
Ratio (i/ii) 2.08%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 0 0 0.00%
1 month prior 0 0 0.00%
Current month 74,024 70,488,682 0.11%
Issuer Delinquency Trigger Ratio: 0.04%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPB? No
-------------
(2) Has a Gross Charge-Off Event Occurred? No
-------------
(3) Has a Delinquency Event Occurred? No
-------------
Page 8
<PAGE> 113
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
------------- ------
<S> <C> <C>
Current 67,896,937 96.32%
31-60 Days Past Due 2,052,892 2.91%
61-90 Days Past Due 464,828 0.66%
91+ Days Past Due 74,024 0.11%
------------- ------
Total 70,488,682 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 72,024,443.60
Maximum Substitution (10% of Initial) 7,202,444.36
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,222.18
Prior month Cumulative ADCPB Substituted 0.00
Current month ADCPB Substituted 85,962.49
Cumulative ADCPB Substituted 85,962.49
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 114
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<CAPTION>
New Transf.
Security Property
Loxbox Collection Deposit Funding Intra-Month Payment Date
Account Account Account Account Distributions Distributions
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING ACCOUNT BALANCES 0.00
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet
transferred to Collection Account 0.00
Transfer of prior period Excluded Amounts
not yet transferred 0.00
Collections Received [5.02 (b)(d)] 1,471,227.20
Excluded Amounts [5.02 (d)][Definition] (572,418.50)
Collections on Deposit due Collection
Account [5.02 (d)] (763,955.30)
Ending Balance @ 12/1/96 134,853.40
COLLECTION ACCOUNT
BEGINNING BALANCE @ 11/1/96 0.00
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/96
Add: Servicer Advance 0.00
Add: Payments due Collection Account from last 2
business days prior period 0.00
Add: Payments due Collection Account from prior
period deposited 10/1/96 0.00
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security
deposit account 0.00
Less: Total distributions on 11/11/96 0.00
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/96
Aggregate Amount of Actual Payments [6.01 b (i)] 840,057.19
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option
from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 1,121.28
Add: Deposits from New Transferred Property Funding
Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under
6.04 d [6.01 b (vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period
[6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property
Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible
[6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business
days in calendar mo. 0.00
Ending Balance @ 11/30/96 and 12/1/96 841,178.47
Add: Servicer Advances to be deposited on Determination Date 1,227,529.31
Add: Payments due Collection Acct from last 2 business days 113,798.38
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit
Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,182,506.16
</TABLE>
Page 10
<PAGE> 115
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 11/30/96 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
--------------
Ending Balance @ 11/30/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,781,194.46
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,781,194.46)
--------------
Adjusted New Transferred Property Funding Account Balance 0.00
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 11
<PAGE> 116
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,182,506.16
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.18
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02 c 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,781,146.69
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Page 12
<PAGE> 117
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/96
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in consideration
of the transfer of New Transferred Property not in excess of $5,000,000 [6.06 c (xv)] 0.00
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
--------------------------
CRAIG SPENCER
CHIEF ACCOUNTING OFFICER
Page 13
