<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Data of earliest event reported)
February 1, 1998
FIRST SIERRA RECEIVABLES II, INC.
------------------------------------------------------
(exact name of Registrant as specified in its charter)
Delaware 33-988288 76-0543174
- ------------------------------- ---------------- ------------------
(State or Other Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
Suite 7050
600 Travis Street
Houston, TX 77002
- -------------------------------- ---------
(Address of Principal Executive) (Zip Code)
Registrant's telephone number, including area code: 713-221-8822
<PAGE> 2
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
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 9b) 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. Acquisition or Disposition of Assets
None
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
1.1 Servicing Reports for the collection periods ending in February 1,
1998.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, 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: /s/ E. R. Gebhart
-------------------
Name: E. R. Gebhart
Title: Vice President
2
<PAGE> 4
INDEX TO EXHIBITS
1.1 Servicing Reports for the collection periods ending in February 1,
1998.
<PAGE> 1
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
ADCPB BALANCE
- -------------
<S> <C>
Initial ADCPB 85,790,915.00
Prior Month ADCPB 63,095,524.14
Current Month ADCPB (Before addition of New Property) 60,358,395.78
Base Principal Amount (Prior - Current) 2,737,128.36
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 60,358,395.78
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 54,262,150.75
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 309,746.44
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 309,746.44
Class A Interest Paid 309,746.44
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 54,262,150.75
Class A Percentage 86.00%
Base Principal Amount 2,737,128.36
Class A Base Principal Distribution Amount 2,353,930.39
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,353,930.39
Additional Class A Principal Due 0.00
--------------
Class A Principal Paid 2,353,930.39
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 51,908,220.36
</TABLE>
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-1 Principal Balance 2,523,821.35
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 16,047.30
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 16,047.30
Class B-1 Interest Paid 16,047.30
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 2,523,821.35
Class B-1 Percentage 4.00%
Base Principal Amount 2,737,128.36
Class B-1 Base Principal Distribution Amount 109,485.13
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 109,485.13
---------------
Class B-1 Principal Paid 109,485.13
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,414,336.22
</TABLE>
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-2 Principal Balance 2,523,821.35
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 17,183.02
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 17,183.02
Class B-2 Interest Paid 17,183.02
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 2,523,821.35
Class B-2 Percentage 4.00%
Base Principal Amount 2,737,128.36
Class B-2 Base Principal Distribution Amount 109,485.13
Prior Month B-1 Overdue Principal 0.00
-------------
Total B-1 Note Principal Due 109,485.13
Class B-2 Principal Paid 109,485.13
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,414,336.22
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
- ----------------------
<S> <C>
Prior Month ADCPB 63,095,524
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 26,289.80
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 26,289.80
Servicer Fee Paid 26,289.80
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 63,095,524
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 683.53
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 683.53
Back-Up Servicer Fee Paid 683.53
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 54,262,150.75
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 11,305.00
Premium Amount Paid 11,305.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
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> 6
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
RESTRICTING EVENT CALCULATIONS No
- ------------------------------
(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 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
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 1
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
- -----------------------------------------------------------
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- ----------
<S> <C> <C> <C> <C> <C>
2 months prior 147,032 147,032 0 65,786,008 0.00%
1 month prior 364,097 269,832 94,265 63,095,524 1.79%
Current 836,804 745,087 91,717 60,358,396 1.82%
3 Month Gross Charge-Off Ratio 1.21%
Maximum Allowed 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
- -----------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,147,299 65,786,008 6.30%
1 month prior 3,814,432 63,095,524 6.05%
Current month 3,373,454 60,358,396 5.59%
Delinquency Ratio: 5.98%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 2
<PAGE> 8
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
- -------------------------------------
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
<TABLE>
<CAPTION>
GROSS DEFAULTS (>=180)
- ----------------------
Monthly Gross
Defaults ADCPB
-------------- -----
<S> <C> <C> <C>
Current month 38,307 60,358,396
1 month prior 2,090 63,095,524
2 months prior 2,090 65,786,008
------ ----------
Sum/Average 42,487 63,079,976 0.0674%
4
Gross Defaults 0.27%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.06
ii Two
Ratio (i/ii) 2.42%
</TABLE>
<TABLE>
<CAPTION>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 614,454 65,786,008 0.93%
1 month prior 462,400 63,095,524 0.73%
Current month 369,255 60,358,396 0.61%
Issuer Delinquency Trigger Ratio: 0.76%
Maximum Ratio Allowed: 2.50%
</TABLE>
<TABLE>
<CAPTION>
EARLY AMORTIZATION EVENT
- ------------------------
<S> <C>
(1) Is Subordination Level < 14% No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
</TABLE>
Page 3
<PAGE> 9
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
AGING/DELINQUENCY STATISTICS
- ----------------------------
ADCPB Total
<S> <C> <C>
Current 56,984,942 94.41%
31-60 Days Past Due 2,053,704 3.40%
61-90 Days Past Due 950,495 1.57%
91+ Days Past Due 369,255 0.61%
--------------- ---------------
Total 60,358,396 100.00%
CERTIFICATE FACTORS
- -------------------
Class A Notes 0.703552301
Class B-1 Notes 0.703552334
Class B-2 Notes 0.703552334
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 3,332,268.58
Current month ADCPB Substituted --
---------------
Cumulative ADCPB Substituted 3,332,268.58
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Current month ADCPB Substituted Defaulted Contracts --
---------------
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
PORTFOLIO PREPAYMENT STATISTICS
- -------------------------------
Prior month Cumulative ADCPB prepaid 7,540,345.09
Current month ADCPB prepaid 994,092.09
---------------
Cumulative ADCPB prepaid 8,534,437.18
Prior month Cumulative ADCPB Defaulted 3,576,592.09
Current month ADCPB Defaulted 790,923.86
---------------
Cumulative ADCPB Defaulted 4,367,515.95
</TABLE>
Page 1
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 96,784.00
- --------------------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection Account (132,573.59)
Transfer of prior period Excluded Amounts not yet transferred (57,246.72)
Collections Received [5.02 (b)(d)] 2,502,865.21
Excluded Amounts [5.02(d)][Definition] (987,638.60)
Collections on Deposit due Collection Account [5.02(d)] (1,310,486.22)
Ending Balance 111,704.08
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE, JANUARY 1, 1998 1,583,034.48
----------------------------------
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JANUARY 1, 1998
-------------------------------------------------------------
Add: Servicer Advance 1,286,444.75
Add: Payments due Collection Account from last 2 business days prior period 132,282.11
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on January 10, 1998 (3,001,761.34)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED FEBRUARY 1, 1998
--------------------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b(i)] 1,308,250.23
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)] 4,474.76
Add: Deposits from New Transferred Property Funding Account [6.01 b(vi)] 0.00
Add: Amount Payable to Class A Certificate holders 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 uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending balance on January 31, 1998 and February 1, 1998 1,312,724.99
Add: Servicer Advances to be deposited on Determination Date 1,658,306.55
Add: Payments due Collection Acct from last 3 business days 160,830.05
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 3,131,861.59
</TABLE>
Page 1
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
- ------------------------
<S> <C> <C>
Beginning Balance 137,880.90
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 666.99
----------
Ending balance on January 31, 1998 138,547.89
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 138,547.89
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 on January 31, 1998 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 2
<PAGE> 12
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 3,131,861.59
- --------------------------------------
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
- ------------------------------------------------------------------------------
(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 26,289.80
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c(iv)] 683.53
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c(v)] 11,305.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c(vi)] 291.67
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c(vii)] 309,746.44
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c(viii)] 16,047.30
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c(ix)] 17,183.02
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c(x)] 2,353,930.39
(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)] 109,485.13
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c(xiii)] 109,485.13
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)] 177,414.18
</TABLE>
Reviewed By:
-----------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 3
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
ADCPB BALANCE
- -------------
<S> <C>
Initial ADCPB 72,024,925.77
Prior Month ADCPB 66,149,595.25
Current Month ADCPB (Before addition of New Property) 64,322,780.63
Base Principal Amount (Prior - Current) 1,826,814.62
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 64,322,780.63
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 58,210,917.16
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 305,122.22
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 305,122.22
Class A Interest Paid 305,122.22
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 58,210,917.16
Class A Percentage 88.00%
Base Principal Amount 1,826,814.62
Class A Base Principal Distribution Amount 1,607,596.87
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,607,596.87
Class A Principal Paid 1,607,596.87
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 56,603,320.29
</TABLE>
Page 1
<PAGE> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-1 Principal Balance 1,984,462.78
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 11,592.57
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 11,592.57
Class B-1 Interest Paid 11,592.57
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 1,984,462.78
Class B-1 Percentage 3.00%
Base Principal Amount 1,826,814.62
Class B-1 Base Principal Distribution Amount 54,804.44
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 54,804.44
------------
Class B-1 Principal Paid 54,804.44
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,929,658.34
</TABLE>
Page 2
<PAGE> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-2 Principal Balance 1,653,719.16
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 11,327.98
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 11,327.98
Class B-2 Interest Paid 11,327.98
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,653,719.16
Class B-2 Percentage 2.50%
Base Principal Amount 1,826,814.62
Class B-2 Base Principal Distribution Amount 45,670.37
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 45,670.37
Class B-2 Principal Paid 45,670.37
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,608,048.79
</TABLE>
Page 3
<PAGE> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
- ----------------------
<S> <C>
Prior Month ADCPB 66,149,595
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 27,562.33
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 27,562.33
Servicer Fee Paid 27,562.33
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 66,149,595
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,102.49
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,102.49
Back-Up Servicer Fee Paid 1,102.49
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 58,210,917.16
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 11,642.00
Premium Amount Paid 11,642.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 17
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
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> 18
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
RESTRICTING EVENT CALCULATIONS
- ------------------------------
<S> <C>
(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
-------------
</TABLE>
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 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 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 1
<PAGE> 19
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
- ------------------------------------------------------------
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 100,318 100,318 0 68,171,653 0.00%
1 month prior 194,272 119,330 74,942 66,149,595 1.36%
Current 169,192 16,503 152,689 64,322,781 2.85%
1.40%
2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
- -----------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,703,888 68,171,653 5.43%
1 month prior 3,414,428 66,149,595 5.16%
Current month 4,305,099 64,322,781 6.69%
Delinquency Ratio: 5.76%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 2
<PAGE> 20
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
- -------------------------------------
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
<TABLE>
<CAPTION>
GROSS DEFAULTS (>=180)
- ----------------------
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 82,153 64,322,781 0.13%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.12%
</TABLE>
<TABLE>
<CAPTION>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 251,465 68,171,653 0.37%
1 month prior 474,828 66,149,595 0.72%
Current month 444,353 64,322,781 0.69%
Issuer Delinquency Trigger Ratio: 0.59%
Maximum Ratio Allowed: 2.50%
</TABLE>
<TABLE>
<CAPTION>
EARLY AMORTIZATION EVENT
- ------------------------
<S> <C> <C>
(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
-------------
</TABLE>
Page 3
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
AGING/DELINQUENCY STATISTICS
- ----------------------------
ADCPB Total
<S> <C> <C>
Current 60,017,682 93.31%
31-60 Days Past Due 3,044,876 4.73%
61-90 Days Past Due 815,870 1.27%
91+ Days Past Due 444,353 0.69%
-------------- ------
Total 64,322,781 100.00%
CERTIFICATE FACTORS
- -------------------
Class A Notes 0.893057302
Class B-1 Notes 0.893057282
Class B-2 Notes 0.893057296
SUBSTITUTION LIMITS [SECTION 7]
- -------------------------------
ADCPB as of Cut-Off Date 72,024,925.77
Maximum Substitution (10% of Initial) 7,202,492.58
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,246.29
Prior month Cumulative ADCPB Substituted 3,234,855.86
Current month ADCPB Substituted --
--------------
Cumulative ADCPB Substituted 3,234,855.86
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
Current month ADCPB Substituted Defaulted Contracts --
--------------
Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
PORTFOLIO PREPAYMENT STATISTICS
- -------------------------------
Prior month Cumulative ADCPB prepaid 4,540,788.17
Current month ADCPB prepaid 398,155.29
--------------
Cumulative ADCPB prepaid 4,938,943.46
Prior month Cumulative ADCPB Defaulted 1,587,390.25
Current month ADCPB Defaulted 85,254.22
--------------
Cumulative ADCPB Defaulted 1,672,644.47
</TABLE>
Page 1
<PAGE> 22
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
BEGINNING ACCOUNT BALANCES 353,178.41
- --------------------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection Account (128,919.51)
Transfer of prior period Excluded Amounts not yet transferred (79,126.80)
Collections Received [5.02 (b)(d)] 2,304,218.13
Excluded Amounts [5.02(d)][Definition] (1,001,106.78)
Collections on Deposit due Collection Account [5.02(d)] (1,168,902.22)
Ending Balance 279,341.23
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE, JANUARY 1, 1998 1,118,563.58
----------------------------------
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JANUARY 1, 1998
-------------------------------------------------------------
Add: Servicer Advance 1,084,144.17
Add: Payments due Collection Account from last 2 business days prior period 128,919.51
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on January 10, 1998 (2,331,627.26)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED FEBRUARY 1, 1998
--------------------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b(i)] 1,168,902.22
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)] 3,817.42
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 uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending balance on January 31, 1998 and February 1, 1998 1,172,719.64
Add: Servicer Advances to be deposited on Determination Date 1,028,251.82
Add: Payments due Collection Acct from last 3 business days 95,585.39
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 2,296,556.85
</TABLE>
Page 1
<PAGE> 23
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
SECURITY DEPOSIT ACCOUNT
- ------------------------
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 on January 31, 1998 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 on January 31, 1998 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 2
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,296,556.85
- ---------------------------------------
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
- ------------------------------------------------------------------------------
(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 27,562.33
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c(iv)] 1,102.49
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c(v)] 11,642.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c(vi)] 291.67
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c(vii)] 305,122.22
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c(viii)] 11,592.57
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c(ix)] 11,327.98
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c(x)] 1,607,596.87
(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)] 54,804.44
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c(xiii)] 45,670.37
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)] 219,843.91
</TABLE>
Reviewed By:
--------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
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