<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)
January 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 January,
February, March, April, May, June and July 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
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------ -----------
<S> <C>
1.1 Servicing Reports for the collection periods ending in
January, February, March, April, May, June and July 1998.
</TABLE>
<PAGE> 1
EXHIBIT 1.1
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 65,572,767.90
Current Month ADCPB (Before addition of New Property) 63,095,524.14
Base Principal Amount (Prior - Current) 2,477,243.77
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 63,095,524.14
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 56,392,580.39
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 321,907.65
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 321,907.65
Class A Interest Paid 321,907.65
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 56,392,580.39
Class A Percentage 86.00%
Base Principal Amount 2,477,243.77
Class A Base Principal Distribution Amount 2,130,429.64
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,130,429.64
Class A Principal Paid 2,130,429.64
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 54,262,150.75
</TABLE>
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,622,911.10
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 16,677.34
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 16,677.34
Class B-1 Interest Paid 16,677.34
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,622,911.10
Class B-1 Percentage 4.00%
Base Principal Amount 2,477,243.77
Class B-1 Base Principal Distribution Amount 99,089.75
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 99,089.75
Class B-1 Principal Paid 99,089.75
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,523,821.35
</TABLE>
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
Class B-2 Interest Schedule
Prior Month Class B-2 Principal Balance 2,622,911.10
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 17,857.65
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 17,857.65
Class B-2 Interest Paid 17,857.65
Current Month Class B-2 Overdue Interest 0.00
Class B-2 Principal Schedule
Prior Month Class B-2 Principal Balance 2,622,911.10
Class B-2 Percentage 4.00%
Base Principal Amount 2,477,243.77
Class B-2 Base Principal Distribution Amount 99,089.75
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 99,089.75
Class B-2 Principal Paid 99,089.75
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,523,821.35
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 65,572,768
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 27,321.99
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 27,321.99
Servicer Fee Paid 27,321.99
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 65,572,768
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 710.37
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 710.37
Back-Up Servicer Fee Paid 710.37
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 56,392,580.39
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 11,748.00
Premium Amount Paid 11,748.00
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 JANUARY 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 in Chief Accounting Officer 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> 6
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
Restricting Event Calculations
<TABLE>
<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
Activities related to Collection Period Ended 1/1/97 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 6
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
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 212,220 212,220 0 67,643,591 0.00%
1 month prior 147,032 147,032 0 65,786,008 0.00%
Current 364,097 269,832 94,265 63,095,524 0.15%
0.05%
2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,465,357 67,643,591 5.12%
1 month prior 4,147,299 65,786,008 6.30%
Current month 3,814,432 63,095,524 6.05%
Delinquency Ratio: 5.82%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 8
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
<TABLE>
<S> <C>
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
</TABLE>
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-offs
-------------- ----- -----------
<S> <C> <C> <C> <C>
Current 2,090 63,095,524 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.74
ii Two
Ratio (i/ii) 2.88%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 563,209 67,643,591 0.83%
1 month prior 614,454 65,786,008 0.93%
Current month 462,400 63,095,524 0.73%
Issuer Delinquency Trigger Ratio: 0.83%
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> 9
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
AGING/DELINQUENCY STATISTICS
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 59,281,092 93.95%
31-60 Days Past Due 2,718,123 4.31%
61-90 Days Past Due 633,910 1.00%
91+ Days Past Due 462,400 0.73%
----------------- --------
Total 63,095,524 100.00%
CERTIFICATE FACTORS
Class A Notes 0.735456943
Class B-1 Notes 0.735456970
Class B-2 Notes 0.735456970
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 6,798,937.71
Current month ADCPB prepaid 741,407.38
-----------------
Cumulative ADCPB prepaid 7,540,345.09
Prior month Cumulative ADCPB Defaulted 3,248,480.58
Current month ADCPB Defaulted 328,111.51
-----------------
Cumulative ADCPB Defaulted 3,576,592.09
</TABLE>
Page 9
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 329,535.91
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (238,379.69)
Transfer of prior period Excluded Amounts not yet transferred (41,639.43)
Collections Received [5.02 (b)(d)] 2,437,339.87
Excluded Amounts [5.02 (d)][Definition] (881,317.81)
Collections on Deposit due Collection Account [5.02 (d)] (1,508,754.85)
ENDING BALANCE 96,784.00
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, DECEMBER 1, 1997 1,350,595.86
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED DECEMBER 1, 1997
Add: Servicer Advance 851,364.13
Add: Payments due Collection Account from last 2 business days prior period 238,379.69
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on December 10, 1997 (2,440,339.68)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JANUARY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,577,845.99
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)] 5,188.49
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 December 31, 1997 and January 1, 1998 1,583,034.48
Add: Servicer Advances to be deposited on Determination Date 1,286,444.75
Add: Payments due Collection Acct from last 3 business days 132,282.11
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 3,001,761.34
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 137,237.25
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 643.65
Ending balance on December 31, 1997 137,880.90
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 137,880.90
</TABLE>
<TABLE>
<S> <C>
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 December 31, 1997 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 11
<PAGE> 12
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JANUARY 1, 1998
<TABLE>
<S> <C>
Available Amount to Certificate Holders 3,001,761.34
</TABLE>
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 27,321.99
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 710.37
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 11,748.00
(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)] 321,907.65
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest
[6.06 c (viii)] 16,677.34
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest
[6.06 c (ix)] 17,857.65
(x) Class A Base Principal Distribution Amount and Overdue Class A
Principal [6.06 c (x)] 2,130,429.64
(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 99,089.75
(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 99,089.75
(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)] 276,637.53
</TABLE>
Reviewed By:
-----------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
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> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- ---------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
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> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
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> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
SERVICING FEE SCHEDULE
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
<TABLE>
<S> <C>
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> 17
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 Chief
Accounting Officer 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 1996-1
- --------------------------------------------------------------------------------
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 19
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <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>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <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 7
<PAGE> 20
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
------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross
Defaults ADCPB
-------- -----
<S> <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>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <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>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
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 9
<PAGE> 22
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <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
</TABLE>
<TABLE>
<S> <C>
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 (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 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 1,312,724.99
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 10
<PAGE> 23
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
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
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 11
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 3,131,861.59
</TABLE>
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 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 12
<PAGE> 25
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 60,358,395.78
Current Month ADCPB (Before addition of New Property) 58,394,704.32
Base Principal Amount (Prior - Current) 1,963,691.46
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 58,394,704.32
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 51,908,220.36
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 296,309.42
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 296,309.42
Class A Interest Paid 296,309.42
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 51,908,220.36
Class A Percentage 86.00%
Base Principal Amount 1,963,691.46
Class A Base Principal Distribution Amount 1,688,774.65
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,688,774.65
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,688,774.65
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 50,219,445.71
</TABLE>
Page 1
<PAGE> 26
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,414,336.22
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 15,351.15
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 15,351.15
Class B-1 Interest Paid 15,351.15
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,414,336.22
Class B-1 Percentage 4.00%
Base Principal Amount 1,963,691.46
Class B-1 Base Principal Distribution Amount 78,547.66
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 78,547.66
------------
Class B-1 Principal Paid 78,547.66
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,335,788.56
</TABLE>
Page 2
<PAGE> 27
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,414,336.22
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 16,437.61
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 16,437.61
Class B-2 Interest Paid 16,437.61
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,414,336.22
Class B-2 Percentage 4.00%
Base Principal Amount 1,963,691.46
Class B-2 Base Principal Distribution Amount 78,547.66
Prior Month B-1 Overdue Principal 0.00
------------
Total B-1 Note Principal Due 78,547.66
Class B-2 Principal Paid 78,547.66
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,335,788.56
</TABLE>
Page 3
<PAGE> 28
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
SERVICING FEE SCHEDULE
Prior Month ADCPB 60,358,396
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 25,149.33
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 25,149.33
Servicer Fee Paid 25,149.33
Current Servicing Fee Arrearage 0.00
<TABLE>
<S> <C>
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 60,358,396
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 653.88
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 653.88
Back-Up Servicer Fee Paid 653.88
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 51,908,220.36
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 10,814.00
Premium Amount Paid 10,814.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 29
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 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 Chief
Accounting Officer 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> 30
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 31
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2 months prior 364,097 269,832 94,265 63,095,524 1.79%
1 month prior 836,804 745,087 91,717 60,358,396 1.82%
Current 24,381 23,034 1,347 58,394,704 0.03%
3 Month Gross Charge-Off Ratio 1.21%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,814,432 63,095,524 6.05%
1 month prior 3,373,454 60,358,396 5.59%
Current month 3,441,565 58,394,704 5.89%
Delinquency Ratio: 5.84%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 32
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Charge-Offs
-------- ----- -----------
<S> <C> <C> <C>
Current month 24,381 58,394,704 0.0418%
1 month prior 38,307 60,358,396 0.0635%
2 months prior 2,090 63,095,524 0.0033%
Sum/Average 64,778 60,616,208 0.1069%
4
Gross Defaults 0.43%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.71
ii Two
Ratio (i/ii) 2.93%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 462,400 63,095,524 0.73%
1 month prior 369,255 60,358,396 0.61%
Current month 695,661 58,394,704 1.19%
Issuer Delinquency Trigger Ratio: 0.85%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 33
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 54,953,139 94.11%
31-60 Days Past Due 2,463,019 4.22%
61-90 Days Past Due 282,885 0.48%
91+ Days Past Due 695,661 1.19%
--------------- ----------
Total 58,394,704 100.00%
Certificate Factors
Class A Notes 0.680663031
Class B-1 Notes 0.680663065
Class B-2 Notes 0.680663065
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 8,534,437.18
Current month ADCPB prepaid 265,632.72
---------------
Cumulative ADCPB prepaid 8,800,069.90
Prior month Cumulative ADCPB Defaulted 4,367,515.95
Current month ADCPB Defaulted 24,381.28
---------------
Cumulative ADCPB Defaulted 4,391,897.23
</TABLE>
Page 9
<PAGE> 34
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 111,704.08
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (160,830.05)
Transfer of prior period Excluded Amounts not yet transferred (50,445.23)
Collections Received [5.02 (b)(d)] 2,337,823.82
Excluded Amounts [5.02 (d)][Definition] (907,725.22)
Collections on Deposit due Collection Account [5.02 (d)] (1,227,164.64)
Ending Balance 103,362.76
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, FEBRUARY 1, 1998 1,312,724.99
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED FEBRUARY 1, 1998
Add: Servicer Advance 1,658,306.55
Add: Payments due Collection Account from last 2 business days prior period 160,830.05
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on February 10, 1998 (3,131,861.59)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MARCH 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,227,164.64
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)] 3,770.67
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 February 28, 1998 and March 1, 1998 1,230,935.31
Add: Servicer Advances to be deposited on Determination Date 969,616.15
Add: Payments due Collection Acct from last 3 business days 249,191.58
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 2,449,743.04
</TABLE>
Page 10
<PAGE> 35
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 138,547.89
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 577.08
----------
Ending balance on February 28, 1998 139,124.97
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 139,124.97
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 February 28, 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 11
<PAGE> 36
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,449,743.04
</TABLE>
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 25,149.33
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 653.88
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 10,814.00
(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)] 296,309.42
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 15,351.15
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 16,437.61
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,688,774.65
(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)] 78,547.66
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 78,547.66
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)] 238,866.01
</TABLE>
Reviewed By:
----------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 37
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 58,394,704.32
Current Month ADCPB (Before addition of New Property) 55,926,195.61
Base Principal Amount (Prior - Current) 2,468,508.71
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 55,926,195.61
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 50,219,445.71
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 286,669.34
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 286,669.34
Class A Interest Paid 286,669.34
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 50,219,445.71
Class A Percentage 86.00%
Base Principal Amount 2,468,508.71
Class A Base Principal Distribution Amount 2,122,917.49
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,122,917.49
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 2,122,917.49
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 48,096,528.22
</TABLE>
Page 1
<PAGE> 38
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,335,788.56
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 14,851.72
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 14,851.72
Class B-1 Interest Paid 14,851.72
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,335,788.56
Class B-1 Percentage 4.00%
Base Principal Amount 2,468,508.71
Class B-1 Base Principal Distribution Amount 98,740.35
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 98,740.35
------------
Class B-1 Principal Paid 98,740.35
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,237,048.21
</TABLE>
Page 2
<PAGE> 39
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,335,788.56
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 15,902.83
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 15,902.83
Class B-2 Interest Paid 15,902.83
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,335,788.56
Class B-2 Percentage 4.00%
Base Principal Amount 2,468,508.71
Class B-2 Base Principal Distribution Amount 98,740.35
Prior Month B-1 Overdue Principal 0.00
------------
Total B-1 Note Principal Due 98,740.35
Class B-2 Principal Paid 98,740.35
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,237,048.21
</TABLE>
Page 3
<PAGE> 40
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 58,394,704
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 24,331.13
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 24,331.13
Servicer Fee Paid 24,331.13
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 58,394,704
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 632.61
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 632.61
Back-Up Servicer Fee Paid 632.61
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 50,219,445.71
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 10,462.00
Premium Amount Paid 10,462.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 41
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 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
Chief Accounting Officer 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> 42
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 43
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2 months prior 836,804 745,087 91,717 60,358,396 1.82%
1 month prior 24,381 23,034 1,347 58,394,704 0.03%
Current 172,015 83,915 88,101 56,026,295 1.89%
3 Month Gross Charge-Off Ratio 1.25%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,373,454 60,358,396 5.59%
1 month prior 3,441,565 58,394,704 5.89%
Current month 3,415,516 56,026,295 6.10%
Delinquency Ratio: 5.86%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 44
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
----------------
(b) Issuer Delinquency Trigger Ratio No
----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Gross Defaults
------------- ----- --------------
<S> <C> <C> <C>
Current month 0 56,026,295 0.0000%
1 month prior 24,381 58,394,704 0.0418%
2 months prior 38,307 60,358,396 0.0635%
------- ----------- -------
Sum/Average 62,688 58,259,798 0.1076%
4
Gross Defaults 0.43%
i A Subordinated Percentage 10.00%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 2.93%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 369,255 60,358,396 0.61%
1 month prior 695,661 58,394,704 1.19%
Current month 511,071 56,026,295 0.91%
Issuer Delinquency Trigger Ratio: 0.91%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
--------------------
(2) Has a Gross Charge-Off Event Occurred? No
--------------------
(3) Has a Delinquency Event Occurred? No
--------------------
Page 8
<PAGE> 45
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 52,610,780 93.90%
31-60 Days Past Due 2,260,243 4.03%
61-90 Days Past Due 644,201 1.15%
91+ Days Past Due 511,071 0.91%
--------------- ----------
Total 56,026,295 100.00%
Certificate Factors
Class A Notes 0.651889487
Class B-1 Notes 0.651889524
Class B-2 Notes 0.651889524
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 8,800,069.90
Current month ADCPB prepaid 470,459.75
---------------
Cumulative ADCPB prepaid 9,270,529.65
Prior month Cumulative ADCPB Defaulted 4,391,897.23
Current month ADCPB Defaulted 88,402.66
---------------
Cumulative ADCPB Defaulted 4,480,299.89
</TABLE>
Page 9
<PAGE> 46
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 103,362.76
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (249,191.58)
Transfer of prior period Excluded Amounts not yet transferred (115,285.83)
Collections Received [5.02 (b)(d)] 2,851,943.36
Excluded Amounts [5.02 (d)][Definition] (998,559.61)
Collections on Deposit due Collection Account [5.02 (d)] (1,494,194.74)
Ending Balance 98,074.36
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, MARCH 1, 1998 1,230,935.31
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MARCH 1, 1998
Add: Servicer Advance 969,616.15
Add: Payments due Collection Account from last 2 business days prior period 249,191.58
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on March 10, 1998 (2,449,743.04)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED APRIL 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,494,194.74
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)] 3,816.18
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 March 31, 1998 and April 1, 1998 1,498,010.92
Add: Servicer Advances to be deposited on Determination Date 787,197.03
Add: Payments due Collection Acct from last 3 business days 388,331.54
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 2,673,539.49
</TABLE>
Page 10
<PAGE> 47
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 139,124.97
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 618.17
----------
Ending balance on March 31, 1998 139,743.14
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 139,743.14
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 March 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 11
<PAGE> 48
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,673,539.49
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 24,331.13
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 632.61
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 10,462.00
(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)] 286,669.34
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 14,851.72
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 15,902.83
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 2,122,917.49
(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)] 98,740.35
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 98,740.35
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 M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 49
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 55,926,195.61
Current Month ADCPB (Before addition of New Property) 53,766,936.01
Base Principal Amount (Prior - Current) 2,159,259.60
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 53,766,936.01
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 48,096,528.22
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 274,551.02
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 274,551.02
Class A Interest Paid 274,551.02
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 48,096,528.22
Class A Percentage 86.00%
Base Principal Amount 2,159,259.60
Class A Base Principal Distribution Amount 1,856,963.26
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,856,963.26
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,856,963.26
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 46,239,564.96
</TABLE>
Page 1
<PAGE> 50
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,237,048.21
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 14,223.90
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 14,223.90
Class B-1 Interest Paid 14,223.90
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,237,048.21
Class B-1 Percentage 4.00%
Base Principal Amount 2,159,259.60
Class B-1 Base Principal Distribution Amount 86,370.38
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 86,370.38
------------
Class B-1 Principal Paid 86,370.38
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,150,677.83
</TABLE>
Page 2
<PAGE> 51
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,237,048.21
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 15,230.57
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 15,230.57
Class B-2 Interest Paid 15,230.57
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,237,048.21
Class B-2 Percentage 4.00%
Base Principal Amount 2,159,259.60
Class B-2 Base Principal Distribution Amount 86,370.38
Prior Month B-1 Overdue Principal 0.00
------------
Total B-1 Note Principal Due 86,370.38
Class B-2 Principal Paid 86,370.38
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,150,677.83
</TABLE>
Page 3
<PAGE> 52
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 55,926,196
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 23,302.58
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 23,302.58
Servicer Fee Paid 23,302.58
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 55,926,196
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 605.87
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 605.87
Back-Up Servicer Fee Paid 605.87
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 48,096,528.22
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 10,020.00
Premium Amount Paid 10,020.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 53
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 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
Chief Accounting Officer 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> 54
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 55
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2 months prior 24,381 23,034 1,347 58,394,704 0.03%
1 month prior 172,015 83,915 88,101 56,026,295 1.89%
Current 122,143 46,342 75,801 53,938,852 1.69%
3 Month Gross Charge-Off Ratio 1.20%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,441,565 58,394,704 5.89%
1 month prior 3,415,516 56,026,295 6.10%
Current month 2,328,029 53,938,852 4.32%
Delinquency Ratio: 5.44%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 56
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
----------------
(b) Issuer Delinquency Trigger Ratio No
----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Gross Defaults
-------- ----- --------------
<S> <C> <C> <C>
Current month 0 53,938,852 0.0000%
1 month prior 0 56,026,295 0.0000%
2 months prior 24,381 58,394,704 0.0418%
- ------ ---------- ------
Sum/Average 24,381 56,119,951 0.0434%
4
Gross Defaults 0.17%
i A Subordinated Percentage 10.00%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 2.93%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 695,661 58,394,704 1.19%
1 month prior 511,071 56,026,295 0.91%
Current month 374,674 53,938,852 0.69%
Issuer Delinquency Trigger Ratio: 0.93%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
----------------
(2) Has a Gross Charge-Off Event Occurred? No
----------------
(3) Has a Delinquency Event Occurred? No
----------------
Page 8
<PAGE> 57
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 51,610,823 95.68%
31-60 Days Past Due 1,109,142 2.06%
61-90 Days Past Due 844,213 1.57%
91+ Days Past Due 374,674 0.69%
--------------- ----------
Total 53,938,852 100.00%
Certificate Factors
Class A Notes 0.626720626
Class B-1 Notes 0.626720667
Class B-2 Notes 0.626720667
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 9,270,529.65
Current month ADCPB prepaid 364,664.84
---------------
Cumulative ADCPB prepaid 9,635,194.49
Prior month Cumulative ADCPB Defaulted 4,480,299.89
Current month ADCPB Defaulted 86,462.61
---------------
Cumulative ADCPB Defaulted 4,566,762.50
</TABLE>
Page 9
<PAGE> 58
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 98,074.36
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (388,331.54)
Transfer of prior period Excluded Amounts not yet transferred (80,893.11)
Collections Received [5.02 (b)(d)] 2,721,548.81
Excluded Amounts [5.02 (d)][Definition] (783,383.67)
Collections on Deposit due Collection Account [5.02 (d)] (1,414,639.67)
Ending Balance 152,375.18
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, APRIL 1, 1998 1,498,010.92
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED APRIL 1, 1998
Add: Servicer Advance 787,197.03
Add: Payments due Collection Account from last 2 business days prior period 388,331.54
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on April 10, 1998 (2,673,539.49)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MAY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,414,639.68
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)] 4,566.91
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 April 30, 1998 and May 1, 1998 1,419,206.59
Add: Servicer Advances to be deposited on Determination Date 719,198.69
Add: Payments due Collection Acct from last 3 business days 294,731.35
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 2,433,136.63
</TABLE>
Page 10
<PAGE> 59
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 139,743.14
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 619.44
----------
Ending balance on April 30, 1998 140,362.58
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 140,362.58
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 April 30, 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 11
<PAGE> 60
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,433,136.63
</TABLE>
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 23,302.58
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 605.87
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 10,020.00
(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)] 274,551.02
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 14,223.90
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 15,230.57
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,856,963.26
(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)] 86,370.38
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 86,370.38
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)] 65,207.00
</TABLE>
Reviewed By:
-----------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 61
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 53,766,936.01
Current Month ADCPB (Before addition of New Property) 52,005,138.50
Base Principal Amount (Prior - Current) 1,761,797.51
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 52,005,138.50
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 46,239,564.96
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 263,950.85
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 263,950.85
Class A Interest Paid 263,950.85
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 46,239,564.96
Class A Percentage 86.00%
Base Principal Amount 1,761,797.51
Class A Base Principal Distribution Amount 1,515,145.86
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,515,145.86
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,515,145.86
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 44,724,419.10
</TABLE>
Page 1
<PAGE> 62
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,150,677.83
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 13,674.73
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 13,674.73
Class B-1 Interest Paid 13,674.73
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,150,677.83
Class B-1 Percentage 4.00%
Base Principal Amount 1,761,797.51
Class B-1 Base Principal Distribution Amount 70,471.90
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 70,471.90
------------
Class B-1 Principal Paid 70,471.90
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,080,205.93
</TABLE>
Page 2
<PAGE> 63
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,150,677.83
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 14,642.53
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 14,642.53
Class B-2 Interest Paid 14,642.53
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,150,677.83
Class B-2 Percentage 4.00%
Base Principal Amount 1,761,797.51
Class B-2 Base Principal Distribution Amount 70,471.90
Prior Month B-1 Overdue Principal 0.00
------------
Total B-1 Note Principal Due 70,471.90
Class B-2 Principal Paid 70,471.90
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,080,205.93
</TABLE>
Page 3
<PAGE> 64
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 53,766,936
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 22,402.89
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 22,402.89
Servicer Fee Paid 22,402.89
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 53,766,936
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 582.48
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 582.48
Back-Up Servicer Fee Paid 582.48
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 46,239,564.96
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 9,633.00
Premium Amount Paid 9,633.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 65
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 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
Chief Accounting Officer 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> 66
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 67
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2 months prior 172,015 83,915 88,101 56,026,295 1.89%
1 month prior 122,143 46,342 75,801 53,938,852 1.69%
Current 135,308 85,344 49,964 52,063,123 1.15%
3 Month Gross Charge-Off Ratio 1.57%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,415,516 56,026,295 6.10%
1 month prior 2,328,029 53,938,852 4.32%
Current month 2,900,279 52,063,123 5.57%
Delinquency Ratio: 5.33%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 68
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------------
(b) Issuer Delinquency Trigger Ratio No
------------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Gross Defaults
-------- ----- --------------
<S> <C> <C> <C>
Current month 0 52,063,123 0.0000%
1 month prior 0 53,938,852 0.0000%
2 months prior 0 56,026,295 0.0000%
-- ---------- ------
Sum/Average 0 54,009,423 0.0000%
4
Gross Defaults 0.00%
i A Subordinated Percentage 10.00%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 2.93%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 511,071 56,026,295 0.91%
1 month prior 374,674 53,938,852 0.69%
Current month 339,710 52,063,123 0.65%
Issuer Delinquency Trigger Ratio: 0.75%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
-----------------
(2) Has a Gross Charge-Off Event Occurred? No
-----------------
(3) Has a Delinquency Event Occurred? No
-----------------
Page 8
<PAGE> 69
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 49,162,844 94.43%
31-60 Days Past Due 1,805,993 3.47%
61-90 Days Past Due 754,576 1.45%
91+ Days Past Due 339,710 0.65%
--------------- ----------
Total 52,063,123 100.00%
Certificate Factors
Class A Notes 0.606184681
Class B-1 Notes 0.606184725
Class B-2 Notes 0.606184725
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 9,635,194.49
Current month ADCPB prepaid 170,624.11
---------------
Cumulative ADCPB prepaid 9,805,818.60
Prior month Cumulative ADCPB Defaulted 4,566,762.50
Current month ADCPB Defaulted 135,308.01
---------------
Cumulative ADCPB Defaulted 4,702,070.51
</TABLE>
Page 9
<PAGE> 70
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 152,375.18
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (294,731.35)
Transfer of prior period Excluded Amounts not yet transferred (109,357.95)
Collections Received [5.02 (b)(d)] 2,200,521.02
Excluded Amounts [5.02 (d)][Definition] (675,657.39)
Collections on Deposit due Collection Account [5.02 (d)] (1,196,583.04)
Ending Balance 76,566.47
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, MAY 1, 1998 1,419,206.59
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MAY 1, 1998
Add: Servicer Advance 719,198.69
Add: Payments due Collection Account from last 2 business days prior period 294,731.35
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on May 10, 1998 (2,433,136.63)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JUNE 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,196,583.04
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)] 3,581.71
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 May 31, 1998 and June 1, 1998 1,200,164.75
Add: Servicer Advances to be deposited on Determination Date 863,947.70
Add: Payments due Collection Acct from last 3 business days 139,110.85
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 2,203,223.30
</TABLE>
Page 10
<PAGE> 71
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 140,362.58
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 643.00
----------
Ending balance on May 31, 1998 141,005.58
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 141,005.58
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 May 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 11
<PAGE> 72
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JUNE 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,203,223.30
</TABLE>
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 22,402.89
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 582.48
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 9,633.00
(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)] 263,950.85
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 13,674.73
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 14,642.53
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,515,145.86
(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)] 70,471.90
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 70,471.90
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)] 221,955.49
</TABLE>
Reviewed By:
---------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 73
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 52,005,138.50
Current Month ADCPB (Before addition of New Property) 49,826,490.94
Base Principal Amount (Prior - Current) 2,178,647.56
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 49,826,490.94
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 44,724,419.10
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 255,301.89
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 255,301.89
Class A Interest Paid 255,301.89
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 44,724,419.10
Class A Percentage 86.00%
Base Principal Amount 2,178,647.56
-------------
Class A Base Principal Distribution Amount 1,873,636.90
Prior Month Class A Overdue Principal 0.00
-------------
Total A Note Principal Due 1,873,636.90
Additional amount due for floor payment 11,979.02
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,885,615.92
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 42,838,803.18
</TABLE>
Page 1
<PAGE> 74
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,080,205.93
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 13,226.64
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 13,226.64
Class B-1 Interest Paid 13,226.64
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,080,205.93
Class B-1 Percentage 4.00%
Base Principal Amount 2,178,647.56
Class B-1 Base Principal Distribution Amount 87,145.90
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 557.16
------------
Total B-1 Note Principal Due 87,703.06
Class B-1 Principal Paid 87,703.06
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,992,502.87
</TABLE>
Page 2
<PAGE> 75
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,080,205.93
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 14,162.74
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 14,162.74
Class B-2 Interest Paid 14,162.74
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,080,205.93
Class B-2 Percentage 4.00%
Base Principal Amount 2,178,647.56
Class B-2 Base Principal Distribution Amount 87,145.90
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 557.16
------------
Total B-1 Note Principal Due 87,703.06
Class B-2 Principal Paid 87,703.06
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,992,502.87
</TABLE>
Page 3
<PAGE> 76
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
FLOOR TEST
<TABLE>
<S> <C> <C>
Initial ADCPB 85,790,915.00
Floor percent 3.50%
-------------
Floor 3,002,682.03
Ending ADCPB 49,826,490.94
less
Beginning Balance - Class A 44,724,419
Beginning Balance - Class B1 2,080,206
Beginning Balance - Class B2 2,080,206
----------
48,884,831
less
Current Month Payment - Class A 1,873,637
Current Month Payment - Class B1 87,146
Current Month Payment - Class B2 87,146
----------
2,047,929 46,836,902.26
Excess of ending ADCPB over Note balance after initial payments 2,989,588.68
Excess (deficit) of excess balance over floor (13,093.35)
ADJUSTED FLOOR TEST
Ending ADCPB 49,826,490.94
less
Beginning Balance - Class A 44,724,419
Beginning Balance - Class B1 2,080,206
Beginning Balance - Class B2 2,080,206
----------
48,884,831
less
Current Month Payment - Class A 1,885,616
Current Month Payment - Class B1 87,703
Current Month Payment - Class B2 87,703
----------
2,061,022 46,823,808.92
Excess of ending ADCPB over Note balance after initial payments 3,002,682.03
Excess (deficit) of excess balance over floor 0.00
</TABLE>
Page 4
<PAGE> 77
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 52,005,139
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 21,668.81
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 21,668.81
Servicer Fee Paid 21,668.81
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 52,005,139
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 563.39
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 563.39
Back-Up Servicer Fee Paid 563.39
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 44,724,419.10
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 9,318.00
Premium Amount Paid 9,318.00
Current Premium Arrearage 0.00
</TABLE>
Page 5
<PAGE> 78
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 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
Chief Accounting Officer 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 6
<PAGE> 79
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 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 Activities related to Collection
Period Ended 1/1/97 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 7
<PAGE> 80
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2 months prior 122,143 46,342 75,801 53,938,852 1.69%
1 month prior 135,308 85,344 49,964 52,063,123 1.15%
Current 222,943 151,284 71,659 49,962,053 1.72%
3 Month Gross Charge-Off Ratio 1.52%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 2,328,029 53,938,852 4.32%
1 month prior 2,900,279 52,063,123 5.57%
Current month 2,638,327 49,962,053 5.28%
Delinquency Ratio: 5.06%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 8
<PAGE> 81
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-----------------
(b) Issuer Delinquency Trigger Ratio No
-----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Gross Defaults
-------- ----- --------------
<S> <C> <C> <C>
Current month 0 49,962,053 0.0000%
1 month prior 0 52,063,123 0.0000%
2 months prior 0 53,938,852 0.0000%
-- ----------- -------
Sum/Average 0 51,988,009 0.0000%
4
Gross Defaults 0.00%
i A Subordinated Percentage 10.03%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 2.94%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 374,674 53,938,852 0.69%
1 month prior 339,710 52,063,123 0.65%
Current month 190,553 49,962,053 0.38%
Issuer Delinquency Trigger Ratio: 0.58%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
---------------
(2) Has a Gross Charge-Off Event Occurred? No
---------------
(3) Has a Delinquency Event Occurred? No
---------------
Page 9
<PAGE> 82
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
ADCPB Total
<S> <C> <C>
Current 47,323,725 94.72%
31-60 Days Past Due 1,105,216 2.21%
61-90 Days Past Due 1,342,559 2.69%
91+ Days Past Due 190,553 0.38%
--------------- ----------
Total 49,962,053 100.00%
Certificate Factors
Class A Notes 0.580627468
Class B-1 Notes 0.580627516
Class B-2 Notes 0.580627516
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 9,805,818.60
Current month ADCPB prepaid 452,179.82
---------------
Cumulative ADCPB prepaid 10,257,998.42
Prior month Cumulative ADCPB Defaulted 4,702,070.51
Current month ADCPB Defaulted 221,011.43
---------------
Cumulative ADCPB Defaulted 4,923,081.94
</TABLE>
Page 10
<PAGE> 83
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 76,566.47
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (122,824.25)
Transfer of prior period Excluded Amounts not yet transferred (52,714.33)
Collections Received [5.02 (b)(d)] 2,454,387.18
Excluded Amounts [5.02 (d)][Definition] (832,681.58)
Collections on Deposit due Collection Account [5.02 (d)] (1,423,900.60)
Ending Balance 98,832.89
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, JUNE 1, 1998 1,200,164.75
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JUNE 1, 1998
Add: Servicer Advance 863,947.70
Add: Payments due Collection Account from last 2 business days prior period 139,110.85
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on June 10, 1998 (2,203,223.30)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JULY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,423,900.60
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)] 4,575.48
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 June 30, 1998 and July 1, 1998 1,428,476.08
Add: Servicer Advances to be deposited on Determination Date 695,655.23
Add: Payments due Collection Acct from last 3 business days 279,508.72
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 2,403,640.03
</TABLE>
Page 11
<PAGE> 84
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 141,005.58
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 626.59
----------
Ending balance on June 30, 1998 141,632.17
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 141,632.17
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 June 30, 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 12
<PAGE> 85
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,403,640.03
</TABLE>
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 21,668.81
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 563.39
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 9,318.00
(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)] 255,301.89
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 13,226.64
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 14,162.74
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,873,636.90
(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)] 87,145.90
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 87,145.90
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)] 28,084.84
Net of Additional Principal Distribution to Class A, B1 & B2
a. Class A Additional Principal Distribution Amount 11,979.02
b. Class B1 Additional Principal Distribution Amount 557.16
c. Class B2 Additional Principal Distribution Amount 557.16
</TABLE>
Reviewed By:
---------------------------
E. Roger Gebhart
Senior Vice President and
Treasurer
Page 13
<PAGE> 86
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 67,916,861.84
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 66,149,595.25
Base Principal Amount (Prior - Current) 1,767,266.59
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 66,149,595.25
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 59,766,111.76
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 313,274.04
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 313,274.04
Class A Interest Paid 313,274.04
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 59,766,111.76
Class A Percentage 88.00%
Base Principal Amount 1,767,266.59
Class A Base Principal Distribution Amount 1,555,194.60
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,555,194.60
Class A Principal Paid 1,555,194.60
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 58,210,917.16
</TABLE>
Page 1
<PAGE> 87
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,037,480.78
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 11,902.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 11,902.28
Class B-1 Interest Paid 11,902.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,037,480.78
Class B-1 Percentage 3.00%
Base Principal Amount 1,767,266.59
Class B-1 Base Principal Distribution Amount 53,018.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 53,018.00
------------
Class B-1 Principal Paid 53,018.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,984,462.78
</TABLE>
Page 2
<PAGE> 88
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,697,900.82
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 11,630.62
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 11,630.62
Class B-2 Interest Paid 11,630.62
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,697,900.82
Class B-2 Percentage 2.50%
Base Principal Amount 1,767,266.59
Class B-2 Base Principal Distribution Amount 44,181.66
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 44,181.66
Class B-2 Principal Paid 44,181.66
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,653,719.16
</TABLE>
Page 3
<PAGE> 89
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 67,916,862
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 28,298.69
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 28,298.69
Servicer Fee Paid 28,298.69
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 67,916,862
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,131.95
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,131.95
Back-Up Servicer Fee Paid 1,131.95
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
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 59,766,111.76
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 11,953.00
Premium Amount Paid 11,953.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 90
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
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> 91
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
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 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 6
<PAGE> 92
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
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> <C>
2 months prior 148,823 148,823 0 69,685,152 0.00%
1 month prior 100,318 100,318 0 68,171,653 0.00%
Current 194,272 119,330 74,941 66,149,595 0.11%
Gross Charge-Off Ratio: 0.04%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,174,555 69,685,152 4.56%
1 month prior 3,703,888 68,171,653 5.43%
Current month 3,414,428 66,149,595 5.16%
Delinquency Ratio: 5.05%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 93
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
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 72,711 66,149,595 0.11%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.10
ii Two
Ratio (i/ii) 2.14%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 197,725 69,685,152 0.28%
1 month prior 251,465 68,171,653 0.37%
Current month 474,828 66,149,595 0.72%
Issuer Delinquency Trigger Ratio: 0.46%
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> 94
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 62,735,167 94.84%
31-60 Days Past Due 2,328,453 3.52%
61-90 Days Past Due 611,147 0.92%
91+ Days Past Due 474,828 0.72%
--------------- ----------
Total 66,149,595 100.00%
Certificate Factors
Class A Notes 0.918421116
Class B-1 Notes 0.918421102
Class B-2 Notes 0.918421111
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 3,234,855.86
Current month ADCPB Substituted 0.00
---------------
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 0.00
---------------
Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 4,274,429.24
Current month ADCPB prepaid 266,358.93
---------------
Cumulative ADCPB prepaid 4,540,788.17
Prior month Cumulative ADCPB Defaulted 1,465,829.49
Current month ADCPB Defaulted 121,560.76
---------------
Cumulative ADCPB Defaulted 1,587,390.25
</TABLE>
Page 9
<PAGE> 95
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 513,541.76
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (256,140.09)
Transfer of prior period Excluded Amounts not yet transferred (49,667.26)
Collections Received [5.02 (b)(d)] 2,183,510.65
Excluded Amounts [5.02 (d)][Definition] (985,605.10)
Collections on Deposit due Collection Account [5.02 (d)] (1,052,461.55)
Ending Balance @ 1/1/98 353,178.41
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 12/1/97 920,564.37
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/97
Add: Servicer Advance 897,080.81
Add: Payments due Collection Account from last 2 business days prior period 256,140.09
Add: Payments due Collection Account from prior period 0.00
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 12/10/97 (2,073,785.27)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 1/1/98
Aggregate Amount of Actual Payments [6.01 b (i)] 1,115,093.21
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)] 3,470.37
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 @ 12/31/97 and 1/1/98 1,118,563.58
Add: Servicer Advances to be deposited on Determination Date 1,084,144.17
Add:Payments due Collection Acct from last 3 business days 128,919.51
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 2,331,627.26
</TABLE>
Page 10
<PAGE> 96
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 @ 12/31/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 @ 12/31/97 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 11
<PAGE> 97
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/98
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,331,627.26
</TABLE>
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 Servicing Fees 28,298.69
(v) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,131.95
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 11,953.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 313,274.04
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 11,902.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 11,630.62
(xi) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,555,194.60
(xii) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xiii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 53,018.00
provided no restricting event exists
(xiv) Class B-2 Base Principal Distribution Amount and Overdue Class B-2
Principal [6.06 c (xiii)] 44,181.66 provided no restricting event or
issuer restricting event exists
(xv)
Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xvi) 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)]
(xvii) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 300,750.75
</TABLE>
Reviewed By:
---------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 98
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
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> 99
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<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> 100
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<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> 101
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
SERVICING FEE SCHEDULE
<TABLE>
<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> 102
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
Chief Accounting Officer 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> 103
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 104
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
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> <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>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <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 7
<PAGE> 105
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
----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
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>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <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>
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> 106
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
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 9
<PAGE> 107
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<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
</TABLE>
<TABLE>
<S> <C>
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 10
<PAGE> 108
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on January 31, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 11
<PAGE> 109
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING FEBRUARY 1, 1998
<TABLE>
<S> <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
Page 12
<PAGE> 110
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 64,322,780.63
Current Month ADCPB (Before addition of New Property) 62,534,795.08
Base Principal Amount (Prior - Current) 1,787,985.55
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 62,534,795.08
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 56,603,320.29
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 296,695.74
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 296,695.74
Class A Interest Paid 296,695.74
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 56,603,320.29
Class A Percentage 88.00%
Base Principal Amount 1,787,985.55
Class A Base Principal Distribution Amount 1,573,427.28
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,573,427.28
Class A Principal Paid 1,573,427.28
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 55,029,893.01
</TABLE>
Page 1
<PAGE> 111
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,929,658.34
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 11,272.42
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 11,272.42
Class B-1 Interest Paid 11,272.42
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,929,658.34
Class B-1 Percentage 3.00%
Base Principal Amount 1,787,985.55
Class B-1 Base Principal Distribution Amount 53,639.57
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 53,639.57
------------
Class B-1 Principal Paid 53,639.57
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,876,018.77
</TABLE>
Page 2
<PAGE> 112
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,608,048.79
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 11,015.13
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 11,015.13
Class B-2 Interest Paid 11,015.13
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,608,048.79
Class B-2 Percentage 2.50%
Base Principal Amount 1,787,985.55
Class B-2 Base Principal Distribution Amount 44,699.64
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 44,699.64
Class B-2 Principal Paid 44,699.64
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,563,349.15
</TABLE>
Page 3
<PAGE> 113
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 64,322,781
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 26,801.16
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 26,801.16
Servicer Fee Paid 26,801.16
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 64,322,781
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,072.05
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,072.05
Back-Up Servicer Fee Paid 1,072.05
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 56,603,320.29
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 11,321.00
Premium Amount Paid 11,321.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 114
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 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
Chief Accounting Officer 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> 115
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 116
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
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> <C>
2 months prior 194,272 119,330 74,942 66,149,595 1.36%
1 month prior 169,192 16,503 152,689 64,322,781 2.85%
Current 86,324 85,979 345 62,534,795 0.01%
3 Month Gross Charge-Off Ratio 1.40%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,414,428 66,149,595 5.16%
1 month prior 4,305,099 64,322,781 6.69%
Current month 3,417,798 62,534,795 5.47%
Delinquency Ratio: 5.77%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 117
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
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 86,324 62,534,795 0.1380%
1 month prior 0 64,322,781 0.0000%
2 months prior 0 66,149,595 0.0000%
------- ---------- ------
Sum/Average 86,324 64,335,724 0.1342%
4
Gross Defaults 0.54%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.08
ii Two
Ratio (i/ii) 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 474,828 66,149,595 0.72%
1 month prior 444,353 64,322,781 0.69%
Current month 421,322 62,534,795 0.67%
Issuer Delinquency Trigger Ratio: 0.69%
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> 118
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 59,116,997 94.53%
31-60 Days Past Due 2,499,091 4.00%
61-90 Days Past Due 497,386 0.80%
91+ Days Past Due 421,322 0.67%
--------------- ----------
Total 62,534,795 100.00%
Certificate Factors
Class A Notes 0.868232597
Class B-1 Notes 0.868232572
Class B-2 Notes 0.868232589
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 4,938,943.46
Current month ADCPB prepaid 266,530.13
---------------
Cumulative ADCPB prepaid 5,205,473.60
Prior month Cumulative ADCPB Defaulted 1,672,644.47
Current month ADCPB Defaulted 86,324.44
---------------
Cumulative ADCPB Defaulted 1,758,968.91
</TABLE>
Page 9
<PAGE> 119
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 279,341.23
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (95,585.39)
Transfer of prior period Excluded Amounts not yet transferred (69,691.78)
Collections Received [5.02 (b)(d)] 2,303,751.85
Excluded Amounts [5.02 (d)][Definition] (1,092,944.60)
Collections on Deposit due Collection Account [5.02 (d)] (957,863.12)
Ending Balance 367,008.19
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, FEBRUARY 1, 1998 1,172,719.64
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED FEBRUARY 1, 1998
Add: Servicer Advance 1,028,251.82
Add: Payments due Collection Account from last 2 business days prior period 95,585.39
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on February 10, 1998 (2,296,556.85)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MARCH 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 957,863.12
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)] 2,977.66
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 February 28, 1998 and March 1, 1998 960,840.78
Add: Servicer Advances to be deposited on Determination Date 1,135,494.93
Add: Payments due Collection Acct from last 3 business days 155,539.19
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 2,251,874.90
</TABLE>
Page 10
<PAGE> 120
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on February 28, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 February 28, 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 11
<PAGE> 121
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MARCH 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,251,874.90
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 26,801.16
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,072.05
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 11,321.00
(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)] 296,695.74
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 11,272.42
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 11,015.13
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,573,427.28
(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)] 53,639.57
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 44,699.64
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)] 221,639.24
</TABLE>
Reviewed By:
---------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 122
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 62,534,795.08
Current Month ADCPB (Before addition of New Property) 60,306,512.98
Base Principal Amount (Prior - Current) 2,228,282.10
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 60,306,512.98
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 55,029,893.01
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 288,448.36
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 288,448.36
Class A Interest Paid 288,448.36
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 55,029,893.01
Class A Percentage 88.00%
Base Principal Amount 2,228,282.10
Class A Base Principal Distribution Amount 1,960,888.25
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,960,888.25
Class A Principal Paid 1,960,888.25
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 53,069,004.76
</TABLE>
Page 1
<PAGE> 123
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,876,018.77
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 10,959.08
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 10,959.08
Class B-1 Interest Paid 10,959.08
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,876,018.77
Class B-1 Percentage 3.00%
Base Principal Amount 2,228,282.10
Class B-1 Base Principal Distribution Amount 66,848.46
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 66,848.46
------------
Class B-1 Principal Paid 66,848.46
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,809,170.31
</TABLE>
Page 2
<PAGE> 124
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,563,349.15
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 10,708.94
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 10,708.94
Class B-2 Interest Paid 10,708.94
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,563,349.15
Class B-2 Percentage 2.50%
Base Principal Amount 2,228,282.10
Class B-2 Base Principal Distribution Amount 55,707.05
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 55,707.05
Class B-2 Principal Paid 55,707.05
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,507,642.10
</TABLE>
Page 3
<PAGE> 125
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 62,534,795
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 26,056.16
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 26,056.16
Servicer Fee Paid 26,056.16
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 62,534,795
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,042.25
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,042.25
Back-Up Servicer Fee Paid 1,042.25
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 55,029,893.01
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 11,006.00
Premium Amount Paid 11,006.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 126
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 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
Chief Accounting Officer 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> 127
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 128
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
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> <C>
2 months prior 169,192 16,503 152,689 64,322,781 2.85%
1 month prior 86,324 85,979 345 62,534,795 0.01%
Current 188,245 82,696 105,549 60,474,973 2.09%
3 Month Gross Charge-Off Ratio 1.65%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,305,099 64,322,781 6.69%
1 month prior 3,417,798 62,534,795 5.47%
Current month 3,148,738 60,474,973 5.21%
Delinquency Ratio: 5.79%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 129
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-----------------
(b) Issuer Delinquency Trigger Ratio No
-----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Gross Defaults
-------------- ----- --------------
<S> <C> <C> <C>
Current 0 60,474,973 0.0000%
1 month prior 86,324 62,534,795 0.1380%
2 months prior 85,254 64,322,781 0.1325%
-------- ---------- ------
Sum/Average 171,579 62,444,183 0.2748%
4
Gross Defaults 1.10%
i A Subordinated Percentage 9.00%
ii B WAL of Remaining Leases 2.08
Two 2.00
Ratio (i/ii)/2 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 444,353 64,322,781 0.69%
1 month prior 421,322 62,534,795 0.67%
Current month 310,271 60,474,973 0.51%
Issuer Delinquency Trigger Ratio: 0.63%
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> 130
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 57,326,235 94.79%
31-60 Days Past Due 1,979,272 3.27%
61-90 Days Past Due 859,195 1.42%
91+ Days Past Due 310,271 0.51%
--------------- ----------
Total 60,474,973 100.00%
Certificate Factors
Class A Notes 0.837294737
Class B-1 Notes 0.837294710
Class B-2 Notes 0.837294729
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 5,205,473.60
Current month ADCPB prepaid 261,614.92
---------------
Cumulative ADCPB prepaid 5,467,088.52
Prior month Cumulative ADCPB Defaulted 1,758,968.91
Current month ADCPB Defaulted 107,197.83
---------------
Cumulative ADCPB Defaulted 1,866,166.74
</TABLE>
Page 9
<PAGE> 131
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 367,008.19
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (155,539.19)
Transfer of prior period Excluded Amounts not yet transferred (143,339.36)
Collections Received [5.02 (b)(d)] 2,582,709.73 Excluded Amounts [5.02 (d)][Definition] (1,170,570.47)
Collections on Deposit due Collection Account [5.02 (d)] (1,080,317.89)
Ending Balance 399,951.01
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, MARCH 1, 1998 960,840.78
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MARCH 1, 1998
Add: Servicer Advance 1,135,494.93
Add: Payments due Collection Account from last 2 business days prior period 155,539.19
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on March 10, 1998 (2,251,874.90)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED APRIL 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,080,317.89
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)] 3,096.68
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 March 31, 1998 and April 1, 1998 1,083,414.57
Add: Servicer Advances to be deposited on Determination Date 939,485.51
Add: Payments due Collection Acct from last 3 business days 409,056.14
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 2,431,956.22
</TABLE>
Page 10
<PAGE> 132
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on March 31, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 March 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 11
<PAGE> 133
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING APRIL 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,431,956.22
</TABLE>
<TABLE>
<S> <C>
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 26,056.16
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,042.25
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 11,006.00
(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)] 288,448.36
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 10,959.08
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 10,708.94
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,960,888.25
(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)] 66,848.46
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 55,707.05
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 M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 134
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 60,306,512.98
Current Month ADCPB (Before addition of New Property) 58,293,631.49
Base Principal Amount (Prior - Current) 2,012,881.49
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 58,293,631.49
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 53,069,004.76
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 278,170.03
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 278,170.03
Class A Interest Paid 278,170.03
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 53,069,004.76
Class A Percentage 88.00%
Base Principal Amount 2,012,881.49
Class A Base Principal Distribution Amount 1,771,335.71
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,771,335.71
Class A Principal Paid 1,771,335.71
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 51,297,669.05
</TABLE>
Page 1
<PAGE> 135
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,809,170.31
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 10,568.57
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 10,568.57
Class B-1 Interest Paid 10,568.57
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,809,170.31
Class B-1 Percentage 3.00%
Base Principal Amount 2,012,881.49
Class B-1 Base Principal Distribution Amount 60,386.44
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 60,386.44
------------
Class B-1 Principal Paid 60,386.44
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,748,783.87
</TABLE>
Page 2
<PAGE> 136
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,507,642.10
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 10,327.35
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 10,327.35
Class B-2 Interest Paid 10,327.35
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,507,642.10
Class B-2 Percentage 2.50%
Base Principal Amount 2,012,881.49
Class B-2 Base Principal Distribution Amount 50,322.04
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 50,322.04
Class B-2 Principal Paid 50,322.04
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,457,320.06
</TABLE>
Page 3
<PAGE> 137
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 60,306,513
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 25,127.71
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 25,127.71
Servicer Fee Paid 25,127.71
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 60,306,513
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,005.11
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,005.11
Back-Up Servicer Fee Paid 1,005.11
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 53,069,004.76
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 10,614.00
Premium Amount Paid 10,614.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 138
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 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
Chief Accounting Officer 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> 139
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 140
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
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> <C>
2 months prior 86,324 85,979 345 62,534,795 0.01%
1 month prior 188,245 82,696 105,549 60,474,973 2.09%
Current 132,408 61,103 71,305 58,488,149 1.46%
3 Month Gross Charge-Off Ratio 1.19%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,417,798 62,534,795 5.47%
1 month prior 3,148,738 60,474,973 5.21%
Current month 3,412,444 58,488,149 5.83%
Delinquency Ratio: 5.50%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 141
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------------
(b) Issuer Delinquency Trigger Ratio No
-------------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Gross Defaults
-------------- ----- --------------
<S> <C> <C> <C>
Current 0 58,488,149 0.0000%
1 month prior 0 60,474,973 0.0000%
2 months prior 86,324 62,534,795 0.1380%
------ ---------- ------
Sum/Average 86,324 60,499,306 0.1427%
4
------
Gross Defaults 0.57%
i A Subordinated Percentage 9.00%
ii B WAL of Remaining Leases 2.08
Two 2.00
Ratio (i/ii)/2 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 421,322 62,534,795 0.67%
1 month prior 310,271 60,474,973 0.51%
Current month 392,511 58,488,149 0.67%
Issuer Delinquency Trigger Ratio: 0.62%
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> 142
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 55,075,706 94.17%
31-60 Days Past Due 2,331,842 3.99%
61-90 Days Past Due 688,091 1.18%
91+ Days Past Due 392,511 0.67%
--------------- ----------
Total 58,488,149 100.00%
Certificate Factors
Class A Notes 0.809347538
Class B-1 Notes 0.809347508
Class B-2 Notes 0.809347527
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 5,467,088.52
Current month ADCPB prepaid 450,010.73
---------------
Cumulative ADCPB prepaid 5,917,099.25
Prior month Cumulative ADCPB Defaulted 1,866,166.74
Current month ADCPB Defaulted 132,407.97
---------------
Cumulative ADCPB Defaulted 1,998,574.71
</TABLE>
Page 9
<PAGE> 143
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 399,951.01
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (409,056.14)
Transfer of prior period Excluded Amounts not yet transferred (106,041.08)
Collections Received [5.02 (b)(d)] 2,410,827.96 Excluded Amounts [5.02 (d)][Definition] (912,534.68)
Collections on Deposit due Collection Account [5.02 (d)] (1,245,307.99)
Ending Balance 137,839.08
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, APRIL 1, 1998 1,083,414.57
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED APRIL 1, 1998
Add: Servicer Advance 939,485.51
Add: Payments due Collection Account from last 2 business days prior period 409,056.14
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on April 10, 1998 (2,431,956.22)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED MAY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,245,308.00
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)] 3,925.71
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 April 30, 1998 and May 1, 1998 1,249,233.71
Add: Servicer Advances to be deposited on Determination Date 802,285.52
Add: Payments due Collection Acct from last 3 business days 263,620.39
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 2,315,139.62
</TABLE>
Page 10
<PAGE> 144
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on April 30, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 April 30, 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 11
<PAGE> 145
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING MAY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,315,139.62
</TABLE>
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 25,127.71
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,005.11
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 10,614.00
(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)] 278,170.03
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 10,568.57
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 10,327.35
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,771,335.71
(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)] 60,386.44
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 50,322.04
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)] 96,990.99
</TABLE>
Reviewed By:
--------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 146
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 58,293,631.49
Current Month ADCPB (Before addition of New Property) 56,571,343.56
Base Principal Amount (Prior - Current) 1,722,287.93
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 56,571,343.56
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 51,297,669.05
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 268,885.28
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 268,885.28
Class A Interest Paid 268,885.28
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 51,297,669.05
Class A Percentage 88.00%
Base Principal Amount 1,722,287.93
Class A Base Principal Distribution Amount 1,515,613.38
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,515,613.38
Class A Principal Paid 1,515,613.38
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 49,782,055.67
</TABLE>
Page 1
<PAGE> 147
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,748,783.87
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 10,215.81
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 10,215.81
Class B-1 Interest Paid 10,215.81
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,748,783.87
Class B-1 Percentage 3.00%
Base Principal Amount 1,722,287.93
Class B-1 Base Principal Distribution Amount 51,668.64
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 51,668.64
------------
Class B-1 Principal Paid 51,668.64
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,697,115.23
</TABLE>
Page 2
<PAGE> 148
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,457,320.06
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 9,982.64
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 9,982.64
Class B-2 Interest Paid 9,982.64
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,457,320.06
Class B-2 Percentage 2.50%
Base Principal Amount 1,722,287.93
Class B-2 Base Principal Distribution Amount 43,057.20
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 43,057.20
Class B-2 Principal Paid 43,057.20
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,414,262.86
</TABLE>
Page 3
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 58,293,631
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 24,289.01
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 24,289.01
Servicer Fee Paid 24,289.01
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 58,293,631
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 971.56
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 971.56
Back-Up Servicer Fee Paid 971.56
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 51,297,669.05
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 10,260.00
Premium Amount Paid 10,260.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 150
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 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
Chief Accounting Officer 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> 151
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 152
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
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> <C>
2 months prior 188,245 82,696 105,549 60,474,973 2.09%
1 month prior 132,408 61,103 71,305 58,488,149 1.46%
Current 195,585 180,584 15,001 56,686,560 0.32%
3 Month Gross Charge-Off Ratio 1.29%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,148,738 60,474,973 5.21%
1 month prior 3,412,444 58,488,149 5.83%
Current month 3,895,179 56,686,560 6.87%
Delinquency Ratio: 5.97%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 153
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
----------------
(b) Issuer Delinquency Trigger Ratio No
----------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Gross Defaults
-------------- ----- --------------
<S> <C> <C> <C>
Current 0 56,686,560 0.0000%
1 month prior 0 58,488,149 0.0000%
2 months prior 0 60,474,973 0.0000%
-- ---------- ------
Sum/Average 0 58,549,894 0.0000%
4
Gross Defaults 0.00%
i A Subordinated Percentage 9.00%
ii B WAL of Remaining Leases 2.08
Two 2.00
Ratio (i/ii)/2 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 310,271 60,474,973 0.51%
1 month prior 392,511 58,488,149 0.67%
Current month 423,412 56,686,560 0.75%
Issuer Delinquency Trigger Ratio: 0.64%
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> 154
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 52,791,381 93.13%
31-60 Days Past Due 2,283,191 4.03%
61-90 Days Past Due 1,188,576 2.10%
91+ Days Past Due 423,412 0.75%
--------------- ---------
Total 56,686,560 100.00%
Certificate Factors
Class A Notes 0.785434990
Class B-1 Notes 0.785434957
Class B-2 Notes 0.785434977
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 5,917,099.25
Current month ADCPB prepaid 365,126.87
---------------
Cumulative ADCPB prepaid 6,282,226.12
Prior month Cumulative ADCPB Defaulted 1,998,574.71
Current month ADCPB Defaulted 195,584.78
---------------
Cumulative ADCPB Defaulted 2,194,159.49
</TABLE>
Page 9
<PAGE> 155
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 137,839.08
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (263,620.39)
Transfer of prior period Excluded Amounts not yet transferred (53,783.49)
Collections Received [5.02 (b)(d)] 2,137,998.81 Excluded Amounts [5.02 (d)][Definition] (753,835.98)
Collections on Deposit due Collection Account [5.02 (d)] (1,136,223.16)
Ending Balance 68,374.87
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, JUNE 1, 1998 1,249,233.71
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JUNE 1, 1998
Add: Servicer Advance 802,285.52
Add: Payments due Collection Account from last 2 business days prior period 263,620.39
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on June 10, 1998 (2,315,139.62)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JULY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,136,223.16
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)] 3,193.85
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 June 30, 1998 and July 1, 1998 1,139,417.01
Add: Servicer Advances to be deposited on Determination Date 970,922.89
Add: Payments due Collection Acct from last 3 business days 213,756.59
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 2,324,096.49
</TABLE>
Page 10
<PAGE> 156
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on June 30, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 June 30, 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 11
<PAGE> 157
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,324,096.49
</TABLE>
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 24,289.01
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 971.56
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 10,260.00
(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)] 268,885.28
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 10,215.81
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 9,982.64
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,515,613.38
(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)] 51,668.64
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 43,057.20
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)] 388,861.30
</TABLE>
Reviewed By:
-------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 158
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 56,571,343.56
Current Month ADCPB (Before addition of New Property) 54,566,745.70
Base Principal Amount (Prior - Current) 2,004,597.86
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 54,566,745.70
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 49,782,055.67
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 260,940.94
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 260,940.94
Class A Interest Paid 260,940.94
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 49,782,055.67
Class A Percentage 88.00%
Base Principal Amount 2,004,597.86
Class A Base Principal Distribution Amount 1,764,046.12
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,764,046.12
Class A Principal Paid 1,764,046.12
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 48,018,009.55
</TABLE>
Page 1
<PAGE> 159
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 1,697,115.23
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 9,913.98
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 9,913.98
Class B-1 Interest Paid 9,913.98
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,697,115.23
Class B-1 Percentage 3.00%
Base Principal Amount 2,004,597.86
Class B-1 Base Principal Distribution Amount 60,137.94
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 60,137.94
------------
Class B-1 Principal Paid 60,137.94
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,636,977.29
</TABLE>
Page 2
<PAGE> 160
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,414,262.86
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 9,687.70
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 9,687.70
Class B-2 Interest Paid 9,687.70
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,414,262.86
Class B-2 Percentage 2.50%
Base Principal Amount 2,004,597.86
Class B-2 Base Principal Distribution Amount 50,114.95
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 50,114.95
Class B-2 Principal Paid 50,114.95
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,364,147.91
</TABLE>
Page 3
<PAGE> 161
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 56,571,344
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 23,571.39
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 23,571.39
Servicer Fee Paid 23,571.39
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 56,571,344
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 942.86
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 942.86
Back-Up Servicer Fee Paid 942.86
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 49,782,055.67
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 9,956.00
Premium Amount Paid 9,956.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 162
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 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
Chief Accounting Officer 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> 163
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
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 Activities related to Collection
Period Ended 1/1/97 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 6
<PAGE> 164
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
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> <C>
2 months prior 132,408 61,103 71,305 58,488,149 1.46%
1 month prior 195,585 180,584 15,001 56,686,560 0.32%
Current 165,029 171,422 (6,394) 54,740,820 -0.14%
3 Month Gross Charge-Off Ratio 0.55%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 3,412,444 58,488,149 5.83%
1 month prior 3,895,179 56,686,560 6.87%
Current month 1,952,407 54,740,820 3.57%
Delinquency Ratio: 5.42%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 165
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------------
(b) Issuer Delinquency Trigger Ratio No
-------------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Gross Defaults
-------------- ----- --------------
<S> <C> <C> <C>
Current 0 54,740,820 0.0000%
1 month prior 0 56,686,560 0.0000%
2 months prior 0 58,488,149 0.0000%
-- ---------- ------
Sum/Average 0 56,638,510 0.0000%
4
Gross Defaults 0.00%
i A Subordinated Percentage 9.00%
ii B WAL of Remaining Leases 2.08
Two 2.00
Ratio (i/ii)/2 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 392,511 58,488,149 0.67%
1 month prior 423,412 56,686,560 0.75%
Current month 549,827 54,740,820 1.00%
Issuer Delinquency Trigger Ratio: 0.81%
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> 166
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 52,788,413 96.43%
31-60 Days Past Due 687,523 1.26%
61-90 Days Past Due 715,057 1.31%
91+ Days Past Due 549,827 1.00%
--------------- ----------
Total 54,740,820 100.00%
Certificate Factors
Class A Notes 0.757602802
Class B-1 Notes 0.757602763
Class B-2 Notes 0.757602786
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 6,282,226.12
Current month ADCPB prepaid 295,434.14
---------------
Cumulative ADCPB prepaid 6,577,660.26
Prior month Cumulative ADCPB Defaulted 2,194,159.49
Current month ADCPB Defaulted 165,028.59
---------------
Cumulative ADCPB Defaulted 2,359,188.08
</TABLE>
Page 9
<PAGE> 167
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 68,374.87
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (141,680.82)
Transfer of prior period Excluded Amounts not yet transferred (62,737.27)
Collections Received [5.02 (b)(d)] 2,293,033.22 Excluded Amounts[5.02 (d)][Definition] (942,710.34)
Collections on Deposit due Collection Account [5.02 (d)] (1,137,342.66)
Ending Balance 76,937.00
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE, JUNE 1, 1998 1,139,417.01
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JUNE 1, 1998
Add: Servicer Advance 970,922.89
Add: Payments due Collection Account from last 2 business days prior period 213,756.59
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on June 10, 1998 (2,324,096.49)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JULY 1, 1998
Aggregate Amount of Actual Payments [6.01 b (i)] 1,137,342.66
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)] 3,614.68
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 June 30, 1998 and July 1, 1998 1,140,957.34
Add: Servicer Advances to be deposited on Determination Date 706,937.74
Add: Payments due Collection Acct from last 3 business days 341,708.47
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 2,189,603.55
</TABLE>
Page 10
<PAGE> 168
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <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 on June 30, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
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 June 30, 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 11
<PAGE> 169
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING JULY 1, 1998
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,189,603.55
</TABLE>
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 23,571.39
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 942.86
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 9,956.00
(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)] 260,940.94
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 9,913.98
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 9,687.70
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,764,046.12
(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)] 60,137.94
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 50,114.95
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 M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
