<PAGE> 1
Form 10-K
Securities and Exchange Commission
Washington, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------ -----------
FIRST SIERRA RECEIVABLES II, INC.
(exact name of Registrant as specified in its charter)
Suite 7050
600 Travis Street
Houston, TX 77002
713-221-8822
Securities Registered Pursuant to Section 12(b) of the Securities and Exchange
Act of 1934: none
Securities Registered Pursuant to Section 12(g) of the Securities and Exchange
Act of 1934: none
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes No X
------ ------
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained , to the
best of the Registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this form 10-K or any
amendment to this form 10-K [X]
<PAGE> 2
The aggregate market value of the voting stock held by non-affiliates of the
Registrant. None
As of December 31, 1997 there were 1,000 shares of the Registrant's Common
Stock outstanding.
The Registrants meets the conditions set forth in General Instruction
(J)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with the
reduced disclosure format permitted thereunder.
2
<PAGE> 3
PART I
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
recently formed solely for the purpose of acquiring from First Sierra
Financial, Inc. certain leases (the "Leases") and interests in equipment
underlying the leases (together the "Receivables") and securitizing the
Receivables through the issuance of Certificates. As a bankruptcy remote
entity, the Registrant's operations are restricted so that (a) it does not
engage in business with, or incur liabilities to, any other entity which may
bring bankruptcy proceedings against the Registrant and 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. Properties
None
Item 3. Legal Proceedings
None
Item 4. Submission to Matters to a Vote of Security Holders
None
PART II
Item 5. Market for Registrants Common Equity and Related
Stockholder Matters
None
Item 6. Selected Financial Data
None
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Not Applicable
Item 8. Financial Statements and Supplemental Data
Not Applicable
3
<PAGE> 4
Item 9. Change in and Disagreements on Account and Financial
Disclosure
PART III
Item 10. Directors and Officers of the Registrant
The following individuals comprise the board of directors and the
officers of the Registrant:
<TABLE>
<CAPTION>
Name Position
- ---- --------
<S> <C>
Thomas Depping President
Sandy B. Ho Secretary
E. Roger Gebhart Vice President
Russell Strickland Director
Cheryl Strickland Director
</TABLE>
All Directors and officers hold office for the term of one year and until their
successors are elected and qualified, subject to earlier termination by removal
or resignation.
Item 11. Executive Compensation
Not Applicable
Item 12. Security Ownership of Certain Beneficial Owners and
Management
Not Applicable
Item 13. Certain Relationships and Related Transactions
Not Applicable
4
<PAGE> 5
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
1. Servicer Reports for the payment periods ending January, February, March,
April, May, June, July, August, September, October, November, December.
5
<PAGE> 6
SIGNATURES
Pursuant to the requirement of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
First Sierra Receivables II, Inc.
By: /s/ E. R. Gebhart
Name: E. R. Gebhart
Title: Vice President
Dated: December 31, 1997
Pursuant to the requirements of the Securities Exchange Act of 1938, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:
By: /s/ Thomas J. Depping
------------------------------
Title: President
Name: Thomas J. Depping
Date: December 31, 1997
By: /s/ Sandy B. Ho
------------------------------
Title: Secretary
Name: Sandy B. Ho
Date: December 31, 1997
By: /s/ E. Roger Gebhart
------------------------------
Title: Vice President
Name: E. Roger Gebhart
Date: December 31, 1997
By: /s/ Russell Strickland
------------------------------
Title: Director
Name: Russell Strickland
Date: December 31, 1997
By: /s/ Cheryl Strickland
------------------------------
Title: Director
Name: Cheryl Strickland
Date: December 31, 1997
6
<PAGE> 7
Supplemental Information:
None
7
<PAGE> 8
EXHIBIT INDEX
99.1 Servicer reports for the payment periods ending in January, February,
March, April, May, June, July, August, September, October, November,
December.
<PAGE> 1
<TABLE>
<CAPTION>
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -----------------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
<S> <C>
ADCPB BALANCE
Prior Month ADCPB 85,794,661.74
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 84,832,141.62
Base Principal Amount (Prior - Current) 962,520.12
Add: ADCPB of New Transferred Property 962,667.53
Ending ADCPB (Current + ADCPB of New Property) 85,794,809.15
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 962,520.12
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 2
<TABLE>
<CAPTION>
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -----------------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC. ENDING BALANCE @ 12/31/96 AND 1/1/97
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage Ending Balance @ 12/31/96 4.00%
Base Principal Amount 962,520.12
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 3
<TABLE>
<CAPTION>
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -----------------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC. ENDING BALANCE @ 12/31/96
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 962,520.12
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 4
<TABLE>
<CAPTION>
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -----------------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,662
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.78
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.78
Servicer Fee Paid 35,747.78
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,662
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.44
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.44
Back-Up Servicer Fee Paid 929.44
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Class A Certificate Principal Balance 73,780,187.00
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
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 proper) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 6
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
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, Certificatesholders, 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)]
Ending Balance @ 12/31/96 and 1/1/97 (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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97 ENDING BALANCE @ 12/31/96
GROSS CHARGE-OFFS (GREATER THAN OR EQUAL TO 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 140,393 140,393 0 84,082,027 0.00%
1 month prior 284,791 284,791 0 83,828,578 0.00%
Current 336,294 336,294 0 83,526,023 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
Ending Balance @ 12/31/96
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,996,394 84,082,027 4.75%
1 month prior 4,233,943 83,828,578 5.05%
Current month 4,325,063 83,526,023 5.18%
Delinquency Ratio: 4.99%
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 1/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults Greater Than Or Equal To 180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 83,526,023 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.10
ii Two
Ratio (i/ii) 2.38%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 392,982 84,082,027 0.47%
1 month prior 636,426 83,828,578 0.76%
Current month 303,510 83,526,023 0.36%
Issuer Delinquency Trigger Ratio: 0.53%
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 1/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
----- -----
<S> <C> <C>
Current 79,200,960 94.82%
31-60 Days Past Due 2,960,907 3.54%
61-90 Days Past Due 1,060,646 1.27%
91+ Days Past Due 303,510 0.36%
----------
Total 83,526,023 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Activities related to Collection Period Ended 1/1/97 1,993,450.01
Current month ADCPB Substituted 370,035.65
Cumulative ADCPB Substituted 2,363,485.66
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 870,233
Current month ADCPB Substituted Defaulted Contracts 336,294
Cumulative ADCPB Substituted for Defaulted Contracts 1,206,527
</TABLE>
Page 9
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 309,836.60
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (158,566.24)
Transfer of prior period Excluded Amounts not yet transferred (46,274.91)
Collections Received [5.02 (b)(d)] 2,488,893.50
Excluded Amounts [5.02 (d)][Definition] (1,022,481.99)
Collections on Deposit due Collection Account [5.02 (d)] (1,376,061.65)
Ending Balance 195,345.31
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
BEGINNING BALANCE @ 12/1/96 1,297,139.90
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/96
Add: Servicer Advance 931,359.79
Add: Payments due Collection Account from last 2 business days prior period 158,566.24
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 11/11/96 (2,387,065.93)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 1/1/97
----------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 1,534,627.89
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)] 4,771.57
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 @ 12/31/96 and 1/1/97 1,539,399.46
Add: Servicer Advances to be deposited on Determination Date 1,101,293.38
Add:Payments due Collection Acct from last 2 business days 80,910.39
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 2,721,603.23
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 130,080.24
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 581.48
------
Ending Balance @ 12/31/96 130,661.72
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 130,661.72
</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 @ 12/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 962,667.53
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (962,667.53)
-----------
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 1/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,721,603.23
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.78
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.44
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 962,520.12
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 1,240,398.11
</TABLE>
Page 12
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
- -------------------------------------------------------------------------------
SANDY B. HO
CHIEF FINANCIAL OFFICER
Page 13
<PAGE> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Prior Month ADCPB 85,794,809.15
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,455,713.32
Base Principal Amount (Prior - Current) 2,339,095.83
Add: ADCPB of New Transferred Property 2,339,226.94
Ending ADCPB (Current + ADCPB of New Property) 85,794,940.26
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance Activities related to Collection Period Ended 1/1/97 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 2,339,095.83
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 2,339,095.83
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
-------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 2,339,095.83
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 17
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,809
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.84
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.84
Servicer Fee Paid 35,747.84
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,809
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.44
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.44
Back-Up Servicer Fee Paid 929.44
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Class A Certificate Principal Balance 73,780,187.00
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 18
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment
becomes due and payable and continuance of such default for a period of
five business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement
a default in whose performance or whose breach is elsewhere in this
section 10.01 specifically dealt with), and continuance of such default
or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Service, the
Certificate Insurer or the Trustee, or to the Depositor, the
Certificate Insurer and the Trustee by the Certificateholders of at
least 50% in aggregate principal amount of the outstanding Class A
Certificates a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice
of default" hereunder, or it, in any such case, the Depositor have
consented in writing that any such event shall be an Early Amortization
Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any
of its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order
for relief or the appointment of a receiver, trustee, custodian or
other similar official for it or for any substantial part of its
property, or any of the actions sought in such proceeding (including,
without limitation, the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official
for, it or for any substantial part of its property) shall occur; or
[10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding
under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding
to be adjudicated a bankrupt or insolvent, or the consent by it to the
entry of a decree or order for relief in respect of the Depositor in an
involuntary case or proceeding under any applicable Federal or state
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against
it, or the filing by it of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State law, or
to the consent by it to the filing of such petition or to the
appointment or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Depositor or
of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the making by it of an
admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor
in furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days
or more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given,
by registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the
Certificate Insurer and the Trustee by the Certificateholders of at
least 50% in aggregate principal amount of the outstanding Class A
Certificates a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice
of Default" hereunder, our if, in any such case, the Depositor have
consented in writing that any such event shall be an Early Amortization
Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 19
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
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,
Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 20
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
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 284,791 284,791 0 83,828,578 0.00%
1 month prior 336,294 336,294 0 83,526,023 0.00%
Current 370,630 370,630 0 82,748,627 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,233,943 83,828,578 5.05%
1 month prior 4,325,063 83,526,023 5.18%
Current month 4,053,347 82,748,627 4.90%
Delinquency Ratio: 5.04%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 82,748,627 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.10
ii Two
Ratio (i/ii) 2.38%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C> <C>
2 months prior 636,426 83,926,281 0.76%
1 month prior 303,510 83,526,023 0.36%
Current month 517,583 82,748,627 0.63%
Issuer Delinquency Trigger Ratio: 0.58%
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> 22
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 78,695,280 95.10%
31-60 Days Past Due 2,892,251 3.50%
61-90 Days Past Due 643,512 0.78%
91+ Days Past Due 517,583 0.63%
------------
Total 82,748,627 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 5,790,915.00
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 2,363,485.66
Current month ADCPB Substituted 565,077.51
Cumulative ADCPB Substituted 2,928,563.17
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,206,527
Current month ADCPB Substituted Defaulted Contracts 370,630
Cumulative ADCPB Substituted for Defaulted Contracts 1,577,158
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 2,363,485.66
Current month ADCPB prepaid 565,077.51
Cumulative ADCPB prepaid 2,928,563.17
Prior month Cumulative ADCPB Defaulted 1,206,527
Current month ADCPB Defaulted 370,630
Cumulative ADCPB Defaulted 1,577,158
</TABLE>
Page 9
<PAGE> 23
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 195,345.31
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (80,910.39)
Transfer of prior period Excluded Amounts not yet transferred (51,570.52)
Collections Received [5.02 (b)(d)] 3,023,705.16
Excluded Amounts [5.02 (d)][Definition] (1,086,360.59)
Collections on Deposit due Collection Account [5.02 (d)] (1,745,849.60)
Ending Balance 254,359.37
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
BEGINNING BALANCE @ 1/1/97 1,539,399.46
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 1/1/97
Add: Servicer Advance 1,101,293.38
Add: Payments due Collection Account from last 2 business days prior period 80,910.39
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 1/10/97 (2,721,603.23)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 2/1/97
----------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 1,745,849.60
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)] 5,031.43
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 @ 1/31/97 and 2/1/97 1,750,881.03
Add: Servicer Advances to be deposited on Determination Date 1,191,744.57
Add:Payments due Collection Acct from last 2 business days 118,397.14
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 3,061,022.74
</TABLE>
Page 10
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 130,661.72
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 582.39
------
Ending Balance @ 1/31/97 131,244.11
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 131,244.11
</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 @ 1/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 2,339,226.94
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (2,339,226.94)
--------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 25
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 3,061,022.74
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.84
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.44
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 2,339,095.83
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 203,241.83
</TABLE>
Page 12
<PAGE> 26
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
------------------------------------------------------
CRAIG M. SPENCER
CHIEF ACCOUNTING OFFICER
Page 13
<PAGE> 27
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Prior Month ADCPB 85,794,940.26
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,515,742.25
Base Principal Amount (Prior - Current) 2,279,198.01
Add: ADCPB of New Transferred Property 2,279,234.63
Ending ADCPB (Current + ADCPB of New Property) 85,794,976.88
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance
Activities related to Collection Period Ended 1/1/97 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 2,279,198.01
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 73,780,187.00
</TABLE>
Page 1
<PAGE> 28
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 2,279,198.01
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,431,637.00
</TABLE>
Page 2
<PAGE> 29
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 2,279,198.01
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,431,637.00
</TABLE>
Page 3
<PAGE> 30
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,940
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.89
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.89
Servicer Fee Paid 35,747.89
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,940
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.45
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.45
Back-Up Servicer Fee Paid 929.45
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Class A Certificate Principal Balance 73,780,187.00
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 31
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 32
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
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 thee insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 33
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
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 336,294 336,294 0 83,526,023 0.00%
1 month prior 370,630 370,630 0 82,748,627 0.00%
Current 403,705 403,705 0 82,811,619 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 4,325,063 83,526,023 5.18%
1 month prior 4,053,347 82,748,627 4.90%
Current month 4,440,784 82,811,619 5.36%
Delinquency Ratio: 5.15%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 34
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ---------- -----------
<S> <C> <C> <C>
Current 0 82,811,619 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.10
ii Two
Ratio (i/ii) 2.38%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 303,510 83,526,023 0.36%
1 month prior 517,583 82,748,627 0.63%
Current month 413,631 82,811,619 0.50%
Issuer Delinquency Trigger Ratio: 0.50%
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> 35
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C>
Current 78,370,835 94.64%
31-60 Days Past Due 3,148,755 3.80%
61-90 Days Past Due 878,398 1.06%
91+ Days Past Due 413,631 0.50%
---------- ------
Total 82,811,619 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 85,790,915.00
Maximum Substitution (10% of Initial) 8,579,091.50
Maximum Substitution for Defaulted Contracts (5% of Initial) 4,289,545.75
Prior month Cumulative ADCPB Substituted 2,928,563.17
Current month ADCPB Substituted 403,705.41
Cumulative ADCPB Substituted 3,332,268.58
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,577,157.65
Current month ADCPB Substituted Defaulted Contracts 403,705.41
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 2,928,563.17
Current month ADCPB prepaid 403,705.41
Cumulative ADCPB prepaid 3,332,268.58
Prior month Cumulative ADCPB Defaulted 1,577,157.65
Current month ADCPB Defaulted 403,705.41
Cumulative ADCPB Defaulted 1,980,863.06
</TABLE>
Page 9
<PAGE> 36
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 254,359.37
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (118,397.14)
Transfer of prior period Excluded Amounts not yet transferred (48,214.87)
Collections Received [5.02 (b)(d)] 2,786,910.48
Excluded Amounts [5.02 (d)][Definition] (1,019,401.35)
Collections on Deposit due Collection Account [5.02 (d)] (1,530,497.69)
Ending Balance 324,758.80
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 2/1/97 1,750,881.03
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 2/1/97
Add: Servicer Advance 1,191,744.57
Add: Payments due Collection Account from last 2 business days prior period 118,397.14
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 2/10/97 (3,061,022.74)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 3/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,530,497.69
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)] 4,077.02
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 @ 2/28/97 and 3/1/97 1,534,574.71
Add: Servicer Advances to be deposited on Determination Date 1,118,080.28
Add: Payments due Collection Acct from last 2 business days 145,228.15
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 2,797,883.14
</TABLE>
Page 10
<PAGE> 37
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 131,244.11
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 524.47
Ending Balance @ 2/28/97 131,768.58
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 131,768.58
</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 @ 2/28/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 2,279,234.63
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (2,279,234.63)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 38
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,797,883.14
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b
(ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 35,747.89
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 929.45
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 15,371.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 421,161.90
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 21,819.49
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 23,363.73
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 2,279,198.01
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Page 12
<PAGE> 39
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Reviewed By:
- -------------------------------------------
Craig M. Spencer
Chief Accounting Officer
Page 13
<PAGE> 40
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
ADCPB BALANCE
- -------------
<S> <C>
Prior Month ADCPB 85,794,976.88
Initial ADCPB 85,790,915.00
Current Month ADCPB (Before addition of New Property) 83,438,699.07
Base Principal Amount (Prior - Current) 2,352,215.93
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 83,438,699.07
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 73,780,187.00
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 421,161.90
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 421,161.90
Class A Interest Paid 421,161.90
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Mon Activities related to Collection Period Ended 1/1/97 73,780,187.00
Class A Percentage 86.00%
Base Principal Amount 2,352,215.93
Class A Base Principal Distribution Amount 2,022,905.70
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,022,905.70
Class A Principal Paid 2,022,905.70
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 71,757,281.30
</TABLE>
Page 1
<PAGE> 41
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,819.49
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,819.49
Class B-1 Interest Paid 21,819.49
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,431,637.00
Class B-1 Percentage 4.00%
Base Principal Amount 2,352,215.93
Class B-1 Base Principal Distribution Amount 94,088.64
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 94,088.64
------------
Class B-1 Principal Paid 94,088.64
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,337,548.36
</TABLE>
Page 2
<PAGE> 42
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
<S> <C>
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 23,363.73
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 23,363.73
Class B-2 Interest Paid 23,363.73
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,431,637.00
Class B-2 Percentage 4.00%
Base Principal Amount 2,352,215.93
Class B-2 Base Principal Distribution Amount 94,088.64
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 94,088.64
Class B-2 Principal Paid 94,088.64
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,337,548.36
</TABLE>
Page 3
<PAGE> 43
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
<S> <C>
Prior Month ADCPB 85,794,977
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 35,747.91
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 35,747.91
Servicer Fee Paid 35,747.91
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 85,794,977
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 929.45
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 929.45
Back-Up Servicer Fee Paid 929.45
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Class A Certificate Principal Balance 73,780,187.00
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 15,371.00
Premium Amount Paid 15,371.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 44
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of default" hereunder, or it, in
any such case, the Depositor have consented in writing that any such
event shall be an Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any
of its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that
any such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 45
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- ------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
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, Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 46
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
GROSS CHARGE-OFFS GREATER THAN OR EQUALS TO 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 370,630 370,630 0 82,748,627 0.00%
1 month prior 403,705 403,705 0 82,811,619 0.00%
Current 0 0 0 82,906,605 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 4,053,347 82,748,627 4.90%
1 month prior 4,440,784 82,811,619 5.36%
Current month 4,880,208 82,906,605 5.89%
Delinquency Ratio: 5.38%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 47
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults greater than or equals to 180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS greater than or equals to 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 30,634 82,906,605 0.04%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.06
ii Two
Ratio (i/ii) 2.43%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 517,583 82,748,627 0.63%
1 month prior 413,631 82,811,619 0.50%
Current month 497,839 82,906,605 0.60%
Issuer Delinquency Trigger Ratio: 0.58%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCP? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 48
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
- ----------------------------
ADCPB Total
---------- -----------
<S> <C> <C>
Current 78,026,397 94.11%
31-60 Days Past Due 3,159,766 3.81%
61-90 Days Past Due 1,222,603 1.47%
91+ Days Past Due 497,839 0.60%
---------- ----------
Total 82,906,605 100.00%
Certificate Factors
Class A Notes 0.972581993
Class B-1 Notes 0.972581996
Class B-2 Notes 0.972581996
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 3,332,268.58
Current month ADCPB prepaid 331,851.67
Cumulative ADCPB prepaid 3,664,120.25
Prior month Cumulative ADCPB Defaulted 1,980,863.06
Current month ADCPB Defaulted 249,878.47
Cumulative ADCPB Defaulted 2,230,741.53
</TABLE>
Page 9
<PAGE> 49
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 324,758.80
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (145,228.15)
Transfer of prior period Excluded Amounts not yet transferred (58,276.80)
Collections Received [5.02 (b)(d)] 3,050,082.41
Excluded Amounts [5.02 (d)][Definition] (1,167,591.37)
Collections on Deposit due Collection Account [5.02 (d)] (1,581,565.14)
Ending Balance 422,179.75
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 3/1/97 1,534,574.71
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 3/1/97
Add: Servicer Advance 1,118,080.28
Add: Payments due Collection Account from last 2 business days prior period 145,228.15
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 3/10/97 (2,797,883.14)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 4/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,458,173.15
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,898.40
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 @ 3/31/97 and 4/1/97 1,462,071.55
Add: Servicer Advances to be deposited on Determination Date 959,410.67
Add:Payments due Collection Acct from last 2 business days 308,285.90
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 2,729,768.12
</TABLE>
Page 10
<PAGE> 50
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 131,768.58
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 588.31
-----------
Ending Balance @ 3/31/97 132,356.89
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 132,356.89
</TABLE>
<TABLE>
<CAPTION>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<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 @ 3/31/97 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> 51
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,729,768.12
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 35,747.91
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 929.45
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 15,371.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 291.67
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 421,161.90
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 21,819.49
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 23,363.73
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 2,022,905.70
(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)] 94,088.64
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 94,088.64
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)] 0.00
</TABLE>
Reviewed By:
- ---------------------------------------------------
Craig M. Spencer
Chief Accounting Officer
Page 12
<PAGE> 52
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
ADCPB BALANCE
- -------------
<TABLE>
<S> <C>
Initial ADCPB 85,790,915.00
Prior Month ADCPB 83,438,699.07
Current Month ADCPB (Before addition of New Property) 81,147,785.17
Base Principal Amount (Prior - Current) 2,290,913.90
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 81,147,785.17
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 71,757,281.30
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 409,614.48
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 409,614.48
Class A Interest Paid 409,614.48
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 71,757,281.30
Class A Percentage 86.00%
Base Principal Amount 2,290,913.90
Class A Base Principal Distribution Amount 1,970,185.95
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,970,185.95
Class A Principal Paid 1,970,185.95
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 69,787,095.35
</TABLE>
Page 1
<PAGE> 53
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,337,548.36
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 21,221.24
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 21,221.24
Class B-1 Interest Paid 21,221.24
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 3,337,548.36
Class B-1 Percentage 4.00%
Base Principal Amount 2,290,913.90
Class B-1 Base Principal Distribution Amount 91,636.56
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 91,636.56
---------
Class B-1 Principal Paid 91,636.56
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,245,911.80
</TABLE>
Page 2
<PAGE> 54
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,337,548.36
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 22,723.14
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 22,723.14
Class B-2 Interest Paid 22,723.14
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 3,337,548.36
Class B-2 Percentage 4.00%
Base Principal Amount 2,290,913.90
Class B-2 Base Principal Distribution Amount 91,636.56
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 91,636.56
Class B-2 Principal Paid 91,636.56
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,245,911.80
</TABLE>
Page 3
<PAGE> 55
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
SERVICING FEE SCHEDULE
- ----------------------
<TABLE>
<S> <C>
Prior Month ADCPB 83,438,699
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 34,766.12
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 34,766.12
Servicer Fee Paid 34,766.12
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 83,438,699
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 903.92
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 903.92
Back-Up Servicer Fee Paid 903.92
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 71,757,281.30
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 14,949.00
Premium Amount Paid 14,949.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 56
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
Early Amortization Events
- -------------------------
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of default" hereunder, or it, in
any such case, the Depositor have consented in writing that any such
event shall be an Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor, (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any
of its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that
any such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 57
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
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, Certificatesholders, 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 their insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 58
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
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 403,705 403,705 0 82,811,619 0.00%
1 month prior 249,878 249,878 0 82,906,605 0.00%
Current 0 0 0 81,262,581 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
- -----------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,440,784 82,811,619 5.36%
1 month prior 4,880,208 82,906,605 5.89%
Current month 4,324,368 81,262,581 5.32%
Delinquency Ratio: 5.52%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 59
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
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 38,732 81,262,581 0.05%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 2.04
ii Two
Ratio (i/ii) 2.46%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 413,631 82,811,619 0.50%
1 month prior 497,839 82,906,605 0.60%
Current month 794,592 81,262,581 0.98%
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> 60
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
Aging/Delinquency Statistics
----------------------------
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 76,938,213 94.68%
31-60 Days Past Due 2,208,387 2.72%
61-90 Days Past Due 1,321,389 1.63%
91+ Days Past Due 794,592 0.98%
---------- -----
Total 81,262,581 100.00%
Certificate Factors
-------------------
Class A Notes 0.945878537
Class B-1 Notes 0.945878543
Class B-2 Notes 0.945878543
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
-------------------------------
Prior month Cumulative ADCPB prepaid 3,664,120.25
Current month ADCPB prepaid 362,013.91
Cumulative ADCPB prepaid 4,026,134.16
Prior month Cumulative ADCPB Defaulted 2,230,741.53
Current month ADCPB Defaulted 198,683.21
Cumulative ADCPB Defaulted 2,429,424.74
</TABLE>
Page 9
<PAGE> 61
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 422,179.75
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (308,285.90)
Transfer of prior period Excluded Amounts not yet transferred (81,721.11)
Collections Received [5.02 (b)(d)] 2,660,976.42
Excluded Amounts [5.02 (d)] [Definition] (931,895.15)
Collections on Deposit due Collection Account [5.02 (d)] (1,510,220.32)
Ending Balance 251,033.69
COLLECTION ACCOUNT
BEGINNING BALANCE @ 4/1/97 1,462,071.55
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 4/1/97
Add: Servicer Advance 959,410.67
Add: Payments due Collection Account from last 2 business days prior period 308,285.90
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 4/10/97 (2,729,768.12)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 5/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,706,810.51
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)] 5,229.51
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 @ 4/30/97 and 5/1/97 1,712,040.02
Add: Servicer Advances to be deposited on Determination Date 907,905.66
Add: Payments due Collection Acct from last 2 business days 136,870.90
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 2,756,816.58
</TABLE>
Page 10
<PAGE> 62
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 132,356.89
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 583.09
------
Ending Balance @ 4/30/97 132,939.98
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 132,939.98
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 @ 4/30/97 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> 63
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,756,816.58
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 34,766.12
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 903.92
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 14,949.00
(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)] 409,614.48
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 21,221.24
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 22,723.14
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,970,185.95
(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)] 91,636.56
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 91,636.56
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)] 98,887.93
</TABLE>
Reviewed By:
----------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 64
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
ADCPB BALANCE
<S> <C>
Initial ADCPB 85,790,915.00
Prior Month ADCPB 81,147,785.17
Current Month ADCPB (Before addition of New Property) 79,013,785.78
Base Principal Amount (Prior - Current) 2,133,999.39
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 79,013,785.78
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 69,787,095.35
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 398,368.00
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 398,368.00
Class A Interest Paid 398,368.00
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 69,787,095.35
Class A Percentage 86.00%
Base Principal Amount 2,133,999.39
Class A Base Principal Distribution Amount 1,835,239.47
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,835,239.47
Class A Principal Paid 1,835,239.47
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 67,951,855.88
</TABLE>
Page 1
<PAGE> 65
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 3,245,911.80
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 20,638.59
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 20,638.59
Class B-1 Interest Paid 20,638.59
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,245,911.80
Class B-1 Percentage 4.00%
Base Principal Amount 2,133,999.39
Class B-1 Base Principal Distribution Amount 85,359.98
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 85,359.98
---------
Class B-1 Principal Paid 85,359.98
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,160,551.82
</TABLE>
Page 2
<PAGE> 66
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 3,245,911.80
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 22,099.25
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 22,099.25
Class B-2 Interest Paid 22,099.25
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,245,911.80
Class B-2 Percentage 4.00%
Base Principal Amount 2,133,999.39
Class B-2 Base Principal Distribution Amount 85,359.98
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 85,359.98
Class B-2 Principal Paid 85,359.98
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,160,551.82
</TABLE>
Page 3
<PAGE> 67
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
SERVICING FEE SCHEDULE
<S> <C>
Prior Month ADCPB 81,147,785
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 33,811.58
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 33,811.58
Servicer Fee Paid 33,811.58
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 81,147,785
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 879.10
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 879.10
Back-Up Servicer Fee Paid 879.10
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 69,787,095.35
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 14,539.00
Premium Amount Paid 14,539.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 68
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in accordance
with the provisions of Section 6.06 when such payment becomes due and
payable and continuance of such default for a period of five business days;
or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer or
the Trustee, or to the Depositor, the Certificate Insurer and the Trustee
by the Certificateholders of at least 50% in aggregate principal amount of
the outstanding Class A Certificates a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of default" hereunder, or it, in any such case, the
Depositor have consented in writing that any such event shall be an Early
Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under
any applicable Federal or State law, or to the consent by it to the filing
of such petition or to the appointment or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Depositor or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the making by it of
an admission by it in writing of its inability to pay its Debts generally
as they become due, or the taking of corporate action by the Depositor in
furtherance of any such action; or [10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the payment
thereof) against the Depositor shall remain unpaid, unstayed on appeal,
undischarged, unbonded or undismissed for a period of 30 days or more; or
[10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such default
or breach for a period of 30 days after there has been given, by registered
or certified mail, to the Depositor by the Servicer, the Certificate
Insurer or the Trustee, or to the Depositor, the Certificate Insurer and
the Trustee by the Certificateholders of at least 50% in aggregate
principal amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, our if, in any
such case, the Depositor have consented in writing that any such event
shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 69
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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, Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 70
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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 249,878 249,878 0 82,906,605 0.00%
1 month prior 198,683 198,683 0 81,262,581 0.00%
Current 0 0 0 78,845,490 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 4,880,208 82,906,605 5.89%
1 month prior 4,324,368 81,262,581 5.32%
Current month 4,343,854 78,845,490 5.51%
Delinquency Ratio: 5.57%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 71
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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 38,084 78,845,490 0.05%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.98
ii Two
Ratio (i/ii) 2.53%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 497,839 82,906,605 0.60%
1 month prior 794,592 81,262,581 0.98%
Current month 673,826 78,845,490 0.85%
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> 72
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
AGING/DELINQUENCY STATISTICS
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 74,501,635 94.49%
31-60 Days Past Due 2,326,029 2.95%
61-90 Days Past Due 1,344,000 1.70%
91+ Days Past Due 673,826 0.85%
---------- ------
Total 78,845,490 100.00%
Certificate Factors
Class A Notes 0.921004116
Class B-1 Notes 0.921004123
Class B-2 Notes 0.921004123
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 4,026,134.16
Current month ADCPB prepaid 565,760.76
Cumulative ADCPB prepaid 4,591,894.92
Prior month Cumulative ADCPB Defaulted 2,429,424.74
Current month ADCPB Defaulted 102,956.42
Cumulative ADCPB Defaulted 2,532,381.16
</TABLE>
Page 9
<PAGE> 73
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 251,033.69
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (136,870.90)
Transfer of prior period Excluded Amounts not yet transferred (37,504.24)
Collections Received [5.02 (b)(d)] 2,850,093.52
Excluded Amounts [5.02 (d)][Definition] (960,379.13)
Collections on Deposit due Collection Account [5.02 (d)] (1,798,740.82)
Ending Balance 167,632.12
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 5/1/97 1,712,040.02
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 5/1/97
Add: Servicer Advance 907,905.66
Add: Payments due Collection Account from last 2 business days prior period 136,870.90
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 5/10/97 (2,756,816.58)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 6/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,870,486.14
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)] 5,238.48
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 uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 5/31/97 and 6/1/97 1,875,724.62
Add: Servicer Advances to be deposited on Determination Date 972,558.12
Add:Payments due Collection Acct from last 2 business days 114,094.26
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 2,962,377.00
</TABLE>
Page 10
<PAGE> 74
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 132,939.98
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 611.69
-----------
Ending Balance @ 5/31/97 133,551.67
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 133,551.67
</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 @ 5/31/97 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> 75
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,962,377.00
</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 33,811.58
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 879.10
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 14,539.00
(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)] 398,368.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 20,638.59
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 22,099.25
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,835,239.47
(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)] 85,359.98
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 85,359.98
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)] 465,790.39
</TABLE>
Reviewed By:
- -------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 76
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 79,013,785.78
Current Month ADCPB (Before addition of New Property) 76,404,223.85
Base Principal Amount (Prior - Current) 2,609,561.94
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 76,404,223.85
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 67,951,855.88
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 387,891.84
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 387,891.84
Class A Interest Paid 387,891.84
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 67,951,855.88
Class A Percentage 86.00%
Base Principal Amount 2,609,561.94
Class A Base Principal Distribution Amount 2,244,223.27
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,244,223.27
Class A Principal Paid 2,244,223.27
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 65,707,632.61
</TABLE>
Page 1
<PAGE> 77
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
CLASS B-1 INTEREST SCHEDULE
<S> <C>
Prior Month Class B-1 Principal Balance 3,160,551.82
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 20,095.84
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 20,095.84
Class B-1 Interest Paid 20,095.84
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 3,160,551.82
Class B-1 Percentage 4.00%
Base Principal Amount 2,609,561.94
Class B-1 Base Principal Distribution Amount 104,382.48
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 104,382.48
----------
Class B-1 Principal Paid 104,382.48
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 3,056,169.34
</TABLE>
Page 2
<PAGE> 78
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
CLASS B-2 INTEREST SCHEDULE
<S> <C>
Prior Month Class B-2 Principal Balance 3,160,551.82
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 21,518.09
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 21,518.09
Class B-2 Interest Paid 21,518.09
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 3,160,551.82
Class B-2 Percentage 4.00%
Base Principal Amount 2,609,561.94
Class B-2 Base Principal Distribution Amount 104,382.48
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 104,382.48
Class B-2 Principal Paid 104,382.48
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 3,056,169.34
</TABLE>
Page 3
<PAGE> 79
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 79,013,786
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 32,922.41
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 32,922.41
Servicer Fee Paid 32,922.41
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 79,013,786
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 855.98
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 855.98
Back-Up Servicer Fee Paid 855.98
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 67,951,855.88
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 14,157.00
Premium Amount Paid 14,157.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 80
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of default" hereunder, or it, in
any such case, the Depositor have consented in writing that any such
event shall be an Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any
of its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that
any such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 81
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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, Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 82
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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 198,683 198,683 0 81,262,581 0.00%
1 month prior 102,956 102,956 0 78,845,490 0.00%
Current 51,944 51,944 0 76,615,468 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- --------------
<S> <C> <C> <C>
2 months prior 4,324,368 81,262,581 5.32%
1 month prior 4,343,854 78,845,490 5.51%
Current month 4,672,898 76,615,468 6.10%
Delinquency Ratio: 5.64%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 83
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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 38,084 76,615,468 0.05%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.94
ii Two
Ratio (i/ii) 2.57%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 794,592 81,262,581 0.98%
1 month prior 673,826 78,845,490 0.85%
Current month 788,164 76,615,468 1.03%
Issuer Delinquency Trigger Ratio: 0.95%
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> 84
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 71,942,570 93.90%
31-60 Days Past Due 2,473,459 3.23%
61-90 Days Past Due 1,411,275 1.84%
91+ Days Past Due 788,164 1.03%
---------- ------
Total 76,615,468 100.00%
Certificate Factors
Class A Notes 0.890586420
Class B-1 Notes 0.890586429
Class B-2 Notes 0.890586429
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 4,591,894.92
Current month ADCPB prepaid 446,291.15
Cumulative ADCPB prepaid 5,038,186.07
Prior month Cumulative ADCPB Defaulted 2,532,381.16
Current month ADCPB Defaulted 51,944.19
Cumulative ADCPB Defaulted 2,584,325.35
</TABLE>
Page 9
<PAGE> 85
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 167,632.12
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (114,094.26)
Transfer of prior period Excluded Amounts not yet transferred (57,805.59)
Collections Received [5.02 (b)(d)] 2,976,820.80
Excluded Amounts [5.02 (d)] [Definition] (1,035,868.15)
Collections on Deposit due Collection Account [5.02 (d)] (1,593,112.80)
Ending Balance 343,572.12
</TABLE>
<TABLE>
COLLECTION ACCOUNT
<S> <C>
BEGINNING BALANCE @ 6/1/97 1,875,724.62
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 6/1/97
Add: Servicer Advance 972,558.12
Add: Payments due Collection Account from last 2 business days prior period 114,094.26
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 6/10/97 (2,962,377.00)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,545,401.07
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)] 5,184.32
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 6/30/97 and 7/1/97 1,550,585.39
Add: Servicer Advances to be deposited on Determination Date 1,324,192.09
Add: Payments due Collection Acct from last 2 business days 55,943.58
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 2,930,721.06
</TABLE>
Page 10
<PAGE> 86
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 133,551.67
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 597.81
----------
Ending Balance @ 6/30/97 134,149.48
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 134,149.48
</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 @ 6/30/97 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> 87
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,930,721.06
</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 32,922.41
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 855.98
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 14,157.00
(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)] 387,891.84
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 20,095.84
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 21,518.09
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 2,244,223.27
(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)] 104,382.48
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 104,382.48
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> 88
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
ADCPB BALANCE
- -------------
<TABLE>
<S> <C>
Initial ADCPB 85,790,915.00
Prior Month ADCPB 76,404,223.85
Current Month ADCPB (Before addition of New Property) 74,059,808.77
Base Principal Amount (Prior - Current) 2,344,415.07
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 74,059,808.77
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 65,707,632.61
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 375,081.07
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 375,081.07
Class A Interest Paid 375,081.07
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 65,707,632.61
Class A Percentage 86.00%
Base Principal Amount 2,344,415.07
Class A Base Principal Distribution Amount 2,016,196.96
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,016,196.96
Class A Principal Paid 2,016,196.96
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,691,435.65
</TABLE>
Page 1
<PAGE> 89
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 3,056,169.34
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 19,432.14
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 19,432.14
Class B-1 Interest Paid 19,432.14
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 3,056,169.34
Class B-1 Percentage 4.00%
Base Principal Amount 2,344,415.07
Class B-1 Base Principal Distribution Amount 93,776.60
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 93,776.60
---------
Class B-1 Principal Paid 93,776.60
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,962,392.74
</TABLE>
Page 2
<PAGE> 90
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
ASS B-2 INTEREST SCHEDULE
- -------------------------
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 3,056,169.34
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 20,807.42
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 20,807.42
Class B-2 Interest Paid 20,807.42
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 3,056,169.34
Class B-2 Percentage 4.00%
Base Principal Amount 2,344,415.07
Class B-2 Base Principal Distribution Amount 93,776.60
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 93,776.60
Class B-2 Principal Paid 93,776.60
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,962,392.74
</TABLE>
Page 3
<PAGE> 91
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 76,404,224
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 31,835.09
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 31,835.09
Servicer Fee Paid 31,835.09
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 76,404,224
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 827.71
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 827.71
Back-Up Servicer Fee Paid 827.71
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 65,707,632.61
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 13,689.00
Premium Amount Paid 13,689.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 92
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
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> 93
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
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> 94
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
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 102,956 102,956 0 78,845,490 0.00%
1 month prior 51,944 51,944 0 76,615,468 0.00%
Current 299,823 299,823 0 73,964,797 0.00%
0.00%
2.50%
</TABLE>
30+ DELINQUENCIES
- -----------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,343,854 78,845,490 5.51%
1 month prior 4,672,898 76,615,468 6.10%
Current month 3,127,329 73,964,797 4.23%
Delinquency Ratio: 5.28%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 95
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-----------------------
(b) Issuer Delinquency Trigger Ratio No
-----------------------
GROSS DEFAULTS (>=180)
- ----------------------
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 73,964,797 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.91
ii Two
Ratio (i/ii) 2.62%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 673,826 78,845,490 0.85%
1 month prior 788,164 76,615,468 1.03%
Current month 384,752 73,964,797 0.52%
Issuer Delinquency Trigger Ratio: 0.80%
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> 96
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
Aging/Delinquency Statistics
----------------------------
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 70,837,469 95.77%
31-60 Days Past Due 2,218,050 3.00%
61-90 Days Past Due 524,527 0.71%
91+ Days Past Due 384,752 0.52%
---------- -----
Total 73,964,797 100.00%
Certificate Factors
-------------------
Class A Notes 0.863259342
Class B-1 Notes 0.863259353
Class B-2 Notes 0.863259353
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
-------------------------------
Prior month Cumulative ADCPB prepaid 5,038,186.07
Current month ADCPB prepaid 471,634.84
Cumulative ADCPB prepaid 5,509,820.91
Prior month Cumulative ADCPB Defaulted 2,584,325.35
Current month ADCPB Defaulted 189,184.99
Cumulative ADCPB Defaulted 2,773,510.34
</TABLE>
Page 9
<PAGE> 97
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 343,572.12
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (55,943.58)
Transfer of prior period Excluded Amounts not yet transferred (53,181.68)
Collections Received [5.02 (b)(d)] 2,786,877.85
Excluded Amounts [5.02 (d)][Definition] (1,182,278.56)
Collections on Deposit due Collection Account [5.02 (d)] (1,654,232.75)
Ending Balance 184,813.40
COLLECTION ACCOUNT
BEGINNING BALANCE @ 7/1/97 1,550,585.39
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/97
Add: Servicer Advance 1,324,192.09
Add: Payments due Collection Account from last 2 business days prior period 55,943.58
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 6/10/97 (2,930,721.06)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,670,926.40
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)] 5,144.28
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 7/31/97 and 8/1/97 1,676,070.68
Add: Servicer Advances to be deposited on Determination Date 885,478.57
Add: Payments due Collection Acct from last 2 business days 139,308.47
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 2,700,857.72
</TABLE>
Page 10
<PAGE> 98
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
SECURITY DEPOSIT ACCOUNT
- ------------------------
<TABLE>
<S> <C> <C>
Beginning Balance 134,149.48
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 620.78
----------
Ending Balance @ 7/31/97 134,770.26
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 134,770.26
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 7/31/97 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> 99
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,700,857.72
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 31,835.09
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 27.71
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 13,689.00
(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 e(vii)] 375,081.07
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 19,432.14
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 20,807.42
(x) Class A Base Principal Distribution Amount and Overdue Class A
Principal [6.06 c (x)] 2,016,196.96
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date 0.00
[6.06 b (xi)]
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 93,776.60
Principal [6.06 c (xii)] provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 93,776.60
Principal [6.06 c (xiii)]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)] 35,143.44
</TABLE>
Reviewed By:
---------------------------------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 100
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 74,059,808.77
Current Month ADCPB (Before addition of New Property) 71,829,092.08
Base Principal Amount (Prior - Current) 2,230,716.69
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 71,829,092.08
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,691,435.65
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 363,571.95
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 363,571.95
Class A Interest Paid 363,571.95
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,691,435.65
Class A Percentage 86.00%
Base Principal Amount 2,230,716.69
Class A Base Principal Distribution Amount 1,918,416.36
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,918,416.36
Class A Principal Paid 1,918,416.36
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 61,773,019.29
Page 1
<PAGE> 101
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,962,392.74
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 18,835.88
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 18,835.88
Class B-1 Interest Paid 18,835.88
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,962,392.74
Class B-1 Percentage 4.00%
Base Principal Amount 2,230,716.69
Class B-1 Base Principal Distribution Amount 89,228.67
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 89,228.67
------------
Class B-1 Principal Paid 89,228.67
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,873,164.07
Page 2
<PAGE> 102
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,962,392.74
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 20,168.96
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 20,168.96
Class B-2 Interest Paid 20,168.96
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,962,392.74
Class B-2 Percentage 4.00%
Base Principal Amount 2,230,716.69
Class B-2 Base Principal Distribution Amount 89,228.67
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 89,228.67
Class B-2 Principal Paid 89,228.67
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,873,164.07
Page 3
<PAGE> 103
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
SERVICING FEE SCHEDULE
Prior Month ADCPB 74,059,809
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,858.25
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,858.25
Servicer Fee Paid 30,858.25
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 74,059,809
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 802.31
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 802.31
Back-Up Servicer Fee Paid 802.31
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 63,691,435.65
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 13,269.00
Premium Amount Paid 13,269.00
Current Premium Arrearage 0.00
Page 4
<PAGE> 104
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
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 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 6
<PAGE> 105
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
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> 106
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
GROSS CHARGE-OFFS greater than or equals to 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 51,944 51,944 0 76,615,468 0.00%
1 month prior 299,823 299,823 0 73,964,797 0.00%
Current 163,780 163,780 0 71,675,317 0.00%
0.00%
2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 4,672,898 76,615,468 6.10%
1 month prior 3,127,329 73,964,797 4.23%
Current month 3,518,645 71,675,317 4.91%
Delinquency Ratio: 5.08%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 107
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS greater than or equals to 180)
Monthly
Gross Defaults ADCPB Charge-Offs
Current 59,656 71,675,317 0.08%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.91
ii Two
Ratio (i/ii) 2.62%
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
Monthly
Delinquencies ADCPB Delinquencies
2 months prior 788,164 76,615,468 1.03%
1 month prior 384,752 73,964,797 0.52%
Current month 542,705 71,675,317 0.76%
Issuer Delinquency Trigger Ratio: 0.77%
Maximum Ratio Allowed: 2.50%
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCP? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 108
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
AGING/DELINQUENCY STATISTICS
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 68,156,672 95.09%
31-60 Days Past Due 2,055,476 2.87%
61-90 Days Past Due 920,464 1.28%
91+ Days Past Due 542,705 0.76%
---------- ---------
Total 71,675,317 100.00%
Certificate Factors
Class A Notes 0.837257559
Class B-1 Notes 0.837257573
Class B-2 Notes 0.837257573
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 0.00
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 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,980,863.06
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 5,509,820.91
Current month ADCPB prepaid 498,672.01
Cumulative ADCPB prepaid 6,008,492.92
Prior month Cumulative ADCPB Defaulted 2,773,510.34
Current month ADCPB Defaulted 122,698.68
Cumulative ADCPB Defaulted 2,896,209.02
</TABLE>
Page 9
<PAGE> 109
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 184,813.40
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (88,371.34)
Transfer of prior period Excluded Amounts not yet transferred (67,757.10)
Collections Received [5.02 (b)(d)] 2,317,167.22
Excluded Amounts [5.02 (d)][Definition] (902,940.58)
Collections on Deposit due Collection Account [5.02 (d) (1,387,394.70)
Ending Balance 55,516.90
COLLECTION ACCOUNT
BEGINNING BALANCE @ 8/1/97 1,676,070.68
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/97
Add: Servicer Advance 885,478.57
Add: Payments due Collection Account from last 2 business days prior period 139,308.47
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 8/10/97 (2,700,857.72)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 9/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,493,682.90
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)] 5,711.87
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 @ 8/31/97 and 9/1/97 1,499,394.77
Add: Servicer Advances to be deposited on Determination Date 928,782.42
Add: Payments due Collection Acct from last 2 business days 116,494.52
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 2,544,671.71
</TABLE>
Page 10
<PAGE> 110
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
- ------------------------
<S> <C>
Beginning Balance 134,770.26
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 643.32
----------
Ending Balance @ 8/31/97 135,413.58
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 135,413.58
</TABLE>
<TABLE>
<CAPTION>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
<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 @ 8/31/97 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> 111
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,544,671.71
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 30,858.25
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 802.31
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 13,269.00
(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)] 363,571.95
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 18,835.88
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 20,168.96
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,918,416.36
(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 (xiii)] provided no restricting event exists 89,228.67
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2
Principal [6.06 c89,228.67 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)] (0.01)
</TABLE>
Reviewed By:
- ---------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
<PAGE> 112
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 71,829,092.08
Current Month ADCPB (Before addition of New Property) 69,643,558.02
Base Principal Amount (Prior - Current) 2,185,534.06
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 69,643,558.02
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 61,773,019.29
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 352,620.99
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 352,620.99
Class A Interest Paid 352,620.99
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 61,773,019.29
Class A Percentage 86.00%
Base Principal Amount 2,185,534.06
Class A Base Principal Distribution Amount 1,879,559.30
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,879,559.30
Class A Principal Paid 1,879,559.30
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 59,893,459.99
</TABLE>
Page 1
<PAGE> 113
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,873,164.07
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 18,268.53
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 18,268.53
Class B-1 Interest Paid 18,268.53
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,873,164.07
Class B-1 Percentage 4.00%
Base Principal Amount 2,185,534.06
Class B-1 Base Principal Distribution Amount 87,421.36
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 87,421.36
-------------
Class B-1 Principal Paid 87,421.36
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,785,742.71
</TABLE>
Page 2
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,873,164.07
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 19,561.46
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 19,561.46
Class B-2 Interest Paid 19,561.46
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,873,164.07
Class B-2 Percentage 4.00%
Base Principal Amount 2,185,534.06
Class B-2 Base Principal Distribution Amount 87,421.36
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 87,421.36
Class B-2 Principal Paid 87,421.36
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,785,742.71
</TABLE>
Page 3
<PAGE> 115
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 71,829,092
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 29,928.79
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 29,928.79
Servicer Fee Paid 29,928.79
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 71,829,092
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 778.15
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 778.15
Back-Up Servicer Fee Paid 778.15
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 61,773,019.29
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 12,869.00
Premium Amount Paid 12,869.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 116
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
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> 117
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
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> 118
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
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 299,823 299,823 0 73,964,797 0.00%
1 month prior 163,780 163,780 0 71,675,317 0.00%
Current 165,059 165,059 0 69,767,793 0.00%
0.00%
2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,127,329 73,964,797 4.23%
1 month prior 3,518,645 71,675,317 4.91%
Current month 4,150,688 69,767,793 5.95%
Delinquency Ratio: 5.03%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 119
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
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 38,404 69,767,793 0.06%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.84
ii Two
Ratio (i/ii) 2.72%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 384,752 73,964,797 0.52%
1 month prior 542,705 71,675,317 0.76%
Current month 778,753 69,767,793 1.12%
Issuer Delinquency Trigger Ratio: 0.80%
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> 120
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
ADCPB Total
<S> <C> <C>
Current 65,617,105 94.05%
31-60 Days Past Due 2,359,908 3.38%
61-90 Days Past Due 1,012,027 1.45%
91+ Days Past Due 778,753 1.12%
------------- -------
Total 69,767,793 100.00%
Certificate Factors
Class A Notes 0.811782437
Class B-1 Notes 0.811782455
Class B-2 Notes 0.811782455
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 6,008,492.92
Current month ADCPB prepaid 323,387.54
-------------
Cumulative ADCPB prepaid 6,331,880.46
Prior month Cumulative ADCPB Defaulted 2,896,209.02
Current month ADCPB Defaulted 113,505.38
-------------
Cumulative ADCPB Defaulted 3,009,714.40
</TABLE>
Page 9
<PAGE> 121
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 55,516.90
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (116,494.52)
Transfer of prior period Excluded Amounts not yet transferred (46,432.87)
Collections Received [5.02 (b)(d)] 2,751,527.94
Excluded Amounts [5.02 (d)][Definition] (1,013,208.39)
Collections on Deposit due Collection Account [5.02 (d)] (1,496,217.37)
Ending Balance 134,691.69
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
Beginning Balance @ 9/1/97 1,499,394.77
Activities related to Collection Period Ended 9/1/97
Add: Servicer Advance 928,782.42
Add: Payments due Collection Account from last 2 business days prior period 116,494.52
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 9/10/97 (2,544,671.71)
Activities related to Collection Period Ended 10/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,332,844.86
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)] 3,790.55
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 @ 9/30/97 and 10/1/97 1,336,635.41
Add: Servicer Advances to be deposited on Determination Date 807,506.12
Add: Payments due Collection Acct from last 3 business days 358,949.40
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 2,503,090.93
</TABLE>
Page 10
<PAGE> 122
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 135,413.58
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 584.56
Ending Balance @ 9/30/97 135,998.14
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 135,998.14
</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 @ 9/30/97 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> 123
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,503,090.93
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 29,928.79
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 778.15
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 12,869.00
(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)] 352,620.99
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 18,268.53
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 19,561.46
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,879,559.30
(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 87,421.36
[6.06 c (xii)] provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal 87,421.36
[6.06 c (xiii)] 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)] 14,370.32
</TABLE>
Reviewed By:
--------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 124
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 69,643,558.02
Current Month ADCPB (Before addition of New Property) 67,643,591.07
Base Principal Amount (Prior - Current) 1,999,966.94
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 67,643,591.07
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 59,893,459.99
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 341,891.83
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 341,891.83
Class A Interest Paid 341,891.83
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 59,893,459.99
Class A Percentage 86.00%
Base Principal Amount 1,999,966.94
Class A Base Principal Distribution Amount 1,719,971.57
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,719,971.57
Class A Principal Paid 1,719,971.57
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 58,173,488.42
</TABLE>
Page 1
<PAGE> 125
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,785,742.71
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 17,712.68
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 17,712.68
Class B-1 Interest Paid 17,712.68
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,785,742.71
Class B-1 Percentage 4.00%
Base Principal Amount 1,999,966.94
Class B-1 Base Principal Distribution Amount 79,998.68
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 79,998.68
------------
Class B-1 Principal Paid 79,998.68
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,705,744.03
</TABLE>
Page 2
<PAGE> 126
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 2,785,742.71
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 18,966.26
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 18,966.26
Class B-2 Interest Paid 18,966.26
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,785,742.71
Class B-2 Percentage 4.00%
Base Principal Amount 1,999,966.94
Class B-2 Base Principal Distribution Amount 79,998.68
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 79,998.68
Class B-2 Principal Paid 79,998.68
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,705,744.03
</TABLE>
Page 3
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 69,643,558
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 29,018.15
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 29,018.15
Servicer Fee Paid 29,018.15
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 69,643,558
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 754.47
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 754.47
Back-Up Servicer Fee Paid 754.47
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 59,893,459.99
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 12,478.00
Premium Amount Paid 12,478.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 128
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
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> 129
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
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 8
<PAGE> 130
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
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 163,780 163,780 0 71,675,317 0.00%
1 month prior 165,059 165,059 0 69,767,793 0.00%
Current 212,220 212,220 0 67,643,591 0.00%
0.00%
2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,518,645 71,675,317 4.91%
1 month prior 4,150,688 69,767,793 5.95%
Current month 3,465,357 67,643,591 5.12%
Delinquency Ratio: 5.33%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 131
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS GREATER THAN OR EQUALS TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 2,088 67,643,591 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.81
ii Two
Ratio (i/ii) 2.77%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 542,705 71,675,317 0.76%
1 month prior 778,753 69,767,793 1.12%
Current month 563,209 67,643,591 0.83%
Issuer Delinquency Trigger Ratio: 0.90%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCP No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 132
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<CAPTION>
AGING/DELINQUENCY STATISTICS
ADCPB Total
<S> <C> <C>
Current 64,178,234 94.88%
31-60 Days Past Due 1,949,282 2.88%
61-90 Days Past Due 952,867 1.41%
91+ Days Past Due 563,209 0.83%
--------------- ---------------
Total 67,643,591 100.00%
Certificate Factors
Class A Notes 0.788470330
Class B-1 Notes 0.788470351
Class B-2 Notes 0.788470351
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 6,331,880.46
Current month ADCPB prepaid 169,447.52
---------------
Cumulative ADCPB prepaid 6,501,327.98
Prior month Cumulative ADCPB Defaulted 3,009,714.40
Current month ADCPB Defaulted 107,100.19
---------------
Cumulative ADCPB Defaulted 3,116,814.59
</TABLE>
Page 9
<PAGE> 133
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 134,691.69
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (195,576.89)
Transfer of prior period Excluded Amounts not yet transferred (38,717.35)
Collections Received [5.02 (b)(d)] 2,609,277.02
Excluded Amounts [5.02 (d)][Definition] (991,328.20)
Collections on Deposit due Collection Account [5.02 (d)] (1,397,997.35)
Ending Balance 120,348.92
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 10/1/97 1,336,635.41
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 10/1/97
Add: Servicer Advance 807,506.12
Add: Payments due Collection Account from last 2 business days prior period 358,949.40
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 10/10/97 (2,503,090.93)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,370,592.23
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 4,866.16
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 @ 10/31/97 and 11/1/97 1,375,458.39
Add: Servicer Advances to be deposited on Determination Date 881,847.58
Add: Payments due Collection Acct from last 2 business days 117,923.43
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 2,375,229.40
</TABLE>
Page 10
<PAGE> 134
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 135,998.14
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 667.18
------
Ending Balance @ 10/31/97 136,665.32
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 136,665.32
</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 [6.05i1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
Ending Balance @ 10/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05i 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> 135
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,375,229.40
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 29,018.15
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 754.47
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 12,478.00
(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)] 341,891.83
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 17,712.68
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 18,966.26
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,719,971.57
(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 79,998.68
Principal [6.06 c (xii)] provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 79,998.68
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)] 74,147.41
</TABLE>
Reviewed By:
- -------------------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 136
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 67,643,591.07
Current Month ADCPB (Before addition of New Property) 65,572,767.90
Base Principal Amount (Prior - Current) 2,070,823.17
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 65,572,767.90
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 58,173,488.32
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 332,073.66
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,073.66
Class A Interest Paid 332,073.66
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 58,173,488.32
Class A Percentage 86.00%
Base Principal Amount 2,070,823.17
Class A Base Principal Distribution Amount 1,780,907.93
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,780,907.93
Class A Principal Paid 1,780,907.93
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 56,392,580.39
</TABLE>
Page 1
<PAGE> 137
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,705,744.03
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 17,204.02
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 17,204.02
Class B-1 Interest Paid 17,204.02
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,705,744.03
Class B-1 Percentage 4.00%
Base Principal Amount 2,070,823.17
Class B-1 Base Principal Distribution Amount 82,832.93
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 82,832.93
------------
Class B-1 Principal Paid 82,832.93
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,622,911.10
</TABLE>
Page 2
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 2,705,744.03
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 18,421.61
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 18,421.61
Class B-2 Interest Paid 18,421.61
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 2,705,744.03
Class B-2 Percentage 4.00%
Base Principal Amount 2,070,823.17
Class B-2 Base Principal Distribution Amount 82,832.93
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 82,832.93
Class B-2 Principal Paid 82,832.93
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 2,622,911.10
</TABLE>
Page 3
<PAGE> 139
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 67,643,591
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 28,184.83
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 28,184.83
Servicer Fee Paid 28,184.83
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 67,643,591
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 732.81
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 732.81
Back-Up Servicer Fee Paid 732.81
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 58,173,488.32
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 12,119.00
Premium Amount Paid 12,119.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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> 142
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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 165,059 165,059 0 69,767,793 0.00%
1 month prior 212,220 212,220 0 67,643,591 0.00%
Current 147,032 147,032 0 65,786,008 0.00%
0.00%
2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 4,150,688 69,767,793 5.95%
1 month prior 3,465,357 67,643,591 5.12%
Current month 4,147,299 65,786,008 6.30%
Delinquency Ratio: 5.79%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 7
<PAGE> 143
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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 2,090 65,786,008 0.00%
i A Subordinated Percentage 10.00%
B WAL of Remaining Leases 1.77
ii Two
Ratio (i/ii) 2.82%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 778,753 69,767,793 1.12%
1 month prior 563,209 67,643,591 0.83%
Current month 614,454 65,786,008 0.93%
Issuer Delinquency Trigger Ratio: 0.96%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordinate Interest less than 8.86% of ADCPNB? No
------------
(2) Has a Gross Charge-Off Event Occurred? No
------------
(3) Has a Delinquency Event Occurred? No
------------
Page 8
<PAGE> 144
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
AGING/DELINQUENCY STATISTICS
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 61,638,710 93.70%
31-60 Days Past Due 2,937,571 4.47%
61-90 Days Past Due 595,274 0.90%
91+ Days Past Due 614,454 0.93%
---------- ------
Total 65,786,008 100.00%
CERTIFICATE FACTORS
Class A Notes 0.764332305
Class B-1 Notes 0.764332329
Class B-2 Notes 0.764332329
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 6,501,327.98
Current month ADCPB prepaid 297,609.73
------------
Cumulative ADCPB prepaid 6,798,937.71
Prior month Cumulative ADCPB Defaulted 3,116,814.59
Current month ADCPB Defaulted 131,665.99
------------
Cumulative ADCPB Defaulted 3,248,480.58
</TABLE>
Page 9
<PAGE> 145
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 120,348.92
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (145,328.55)
Transfer of prior period Excluded Amounts not yet transferred (86,024.72)
Collections Received [5.02 (b)(d)] 2,771,017.85
Excluded Amounts [5.02 (d)][Definition] (941,607.42)
Collections on Deposit due Collection Account [5.02 (d)] (1,388,870.17)
Ending Balance 329,535.91
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
Beginning Balance @ 11/1/97 1,375,458.39
Activities related to Collection Period Ended 11/1/97
Add: Servicer Advance 881,847.58
Add: Payments due Collection Account from last 2 business days prior period 117,923.43
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on 11/10/97 (2,375,229.40)
Activities related to Collection Period Ended 12/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,347,187.15
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec. Deposit Account [6.01 b (iii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,408.71
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 @ 11/30/97 and 12/1/97 1,350,595.86
Add: Servicer Advances to be deposited on Determination Date 851,364.13
Add: Payments due Collection Acct from last 3 business days 238,379.69
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 2,440,339.68
</TABLE>
Page 10
<PAGE> 146
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 136,665.32
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 571.93
----------
Ending Balance @ 11/30/97 137,237.25
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 137,237.25
</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 @ 11/30/97 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> 147
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
Available Amount to Certificate Holders 2,440,339.68
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 28,184.83
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 732.81
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 12,119.00
(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)] 332,073.66
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 17,204.02
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 18,421.61
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,780,907.93
(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)] 82,832.93
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 82,832.93
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)] 84,738.29
</TABLE>
Reviewed By:
--------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 148
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
ADCPB BALANCE
- -------------
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,491.37
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 71,659,253.87
Base Principal Amount (Prior - Current) 365,237.50
Add: ADCPB of New Transferred Property 365,287.11
Ending ADCPB (Current + ADCPB of New Property) 72,024,540.98
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 0.00
Current Month Class A Overdue Interest 332,224.75
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 365,237.50
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 149
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 365,237.50
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 365,237.50
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 151
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
SERVICING FEE SCHEDULE
- ----------------------
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,491
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.20
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.20
Servicer Fee Paid 30,010.20
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 72,024,491
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
- --------------------
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
- ----------------------------
Initial Class A Balance 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 152
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice specifying
such default or breach and requiring it to be remedied and stating that
such notice is a "Notice of default" hereunder, or it, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any of
its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or for
any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that any
such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 153
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
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,
Certificatesholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to occur
of (x) the date on which written notice of such failure or breach,
requiring the situation giving rise to such failure or breach to be
remedied, shall have been given to a Servicing Officer of the Servicer
or a Responsible Officer of the Trustee by the Depositor or any Holder
of Certificates or (y) the date on which any Servicing Officer or
Responsible Officer of the Trustee first knows, or reasonably should
have known, of such failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any court of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property, or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days after
the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or their insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such
jurisdiction, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 154
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 0 0.00%
1 month prior 0 0 0 70,488,682 0.00%
Current 0 0 0 70,642,634 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
- -----------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 0 0 0.00%
1 month prior 2,591,745 70,488,682 3.68%
Current month 2,491,482 70,642,634 3.53%
Delinquency Ratio: 2.40%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 155
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
------------------------
(b) Issuer Delinquency Trigger Ratio No
------------------------
GROSS DEFAULTS (>=180)
- ----------------------
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 70,642,634 0.00%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.16
ii Two
Ratio (i/ii) 2.09%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 0 0 0.00%
1 month prior 74,024 70,488,682 0.11%
Current month 251,380 70,642,634 0.36%
Issuer Delinquency Trigger Ratio: 0.15%
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> 156
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
Aging/Delinquency Statistics
----------------------------
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 68,151,152 96.47%
31-60 Days Past Due 1,746,807 2.47%
61-90 Days Past Due 493,295 0.70%
91+ Days Past Due 251,380 0.36%
----------
Total 70,642,634 100.00%
Certificate Factors
-------------------
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
-------------------------------
ADCPB as of Cut-Off Date 72,024,443.60
Maximum Substitution (10% of Initial) 7,202,444.36
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,222.18
Prior month Cumulative ADCPB Substituted 85,962.49
Current month ADCPB Substituted 142,894.81
Cumulative ADCPB Substituted 228,857.30
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 0.00
Cumulative ADCPB Substituted for Defaulted Contracts 0.00
</TABLE>
Page 9
<PAGE> 157
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 134,853.40
- -------------------------- ------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection Account (113,798.38)
Transfer of prior period Excluded Amounts not yet transferred (32,226.03)
Collections Received [5.02 (b)(d)] 2,103,116.17
Excluded Amounts [5.02 (d)][Definition] (1,123,843.22)
Collections on Deposit due Collection Account [5.02 (d)] (813,146.91)
Ending Balance @ 1/1/97 154,955.03
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE @ 12/1/96 841,178.47
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/96
Add: Servicer Advance 1,227,529.31
Add: Payments due Collection Account from last 2 business days prior period 113,798.38
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 12/10/96 (2,182,506.16)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 1/1/97
----------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 926,945.29
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec. Deposit Account 0.00
[6.01 b (iii)]
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,101.01
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 uncollectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 12/31/96 and 1/1/97 930,046.30
Add: Servicer Advances to be deposited on Determination Date 1,047,235.46
Add: Payments due Collection Acct from last 2 business days 114,016.95
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 2,091,298.71
</TABLE>
Page 10
<PAGE> 158
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
SECURITY DEPOSIT ACCOUNT
- ------------------------
<TABLE>
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 12/31/96 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 12/31/96 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 365,287.11
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (365,287.11)
-----------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
- -------------------------------------------------------------------------------
Page 11
<PAGE> 159
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 1/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,091,298.71
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.20
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 365,237.50
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 1,324,701.71
</TABLE>
REVIEWED BY:
-----------------------------------------
CRAIG M. SPENCER
CHIEF ACCOUNTING OFFICER
Page 12
<PAGE> 160
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
ADCPB BALANCE
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,540.98
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 70,254,590.12
Base Principal Amount (Prior - Current) 1,769,950.86
Add: ADCPB of New Transferred Property 1,770,010.68
Ending ADCPB (Current + ADCPB of New Property) 72,024,600.81
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,769,950.86
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 161
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,769,950.86
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 162
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,769,950.86
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 163
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,541
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.23
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.23
Servicer Fee Paid 30,010.23
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,541
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 164
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
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
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- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
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> 166
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
GROSS CHARGE-OFFS >=160
AND ACCOUNTS BOUGHT BACK BY SOURCE
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 70,488,682 0.00%
1 month prior 0 0 0 70,642,634 0.00%
Current 121,045 121,045 0 69,762,119 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,591,745 70,488,682 3.68%
1 month prior 2,491,482 70,642,634 3.53%
Current month 3,161,952 69,762,119 4.53%
Delinquency Ratio: 3.91%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 167
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 69,762,119 0.00%
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>
2 months prior 74,024 70,488,682 0.11%
1 month prior 251,380 70,642,634 0.36%
Current month 447,401 69,762,119 0.64%
Issuer Delinquency Trigger Ratio: 0.37%
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> 168
First Sierra Equipment Lease Trust 1996-2
- -------------------------------------------------------------------------------
First Sierra Receivables Inc.
Monthly Servicer Certificate
For the Collection Period Ending 2/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 66,600,167 95.47%
31-60 Days Past Due 1,965,114 2.82%
61-90 Days Past Due 749,437 1.07%
91+ Days Past Due 447,401 0.64%
-------------
Total 69,762,119 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 72,024,443.60
Maximum Substitution (10% of Initial) 7,202,444.36
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,222.18
Prior month Cumulative ADCPB Substituted 228,857.30
Current month ADCPB Substituted 268,701.17
Cumulative ADCPB Substituted 497,558.47
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 0.00
Current month ADCPB Substituted Defaulted Contracts 121,044.56
Cumulative ADCPB Substituted for Defaulted Contracts 121,044.56
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 228,857.30
Current month ADCPB prepaid 268,701.17
Cumulative ADCPB prepaid 497,558.47
Prior month Cumulative ADCPB Defaulted 0.00
Current month ADCPB Defaulted 121,044.56
Cumulative ADCPB Defaulted 121,044.56
</TABLE>
Page 9
<PAGE> 169
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 154,955.03
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (114,016.95)
Transfer of prior period Excluded Amounts not yet transferred (32,226.03)
Collections Received [5.02 (b)(d)] 2,331,155.10
Excluded Amounts [5.02 (d)][Definition] (1,099,451.82)
Collections on Deposit due Collection Account [5.02 (d)] (1,030,713.95)
Ending Balance @ 2/1/97 209,701.38
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 1/1/97 930,046.30
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 1/1/97
Add: Servicer Advance 1,047,235.46
Add: Payments due Collection Account from last 2 business days prior period 114,016.95
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 1/10/97 (2,091,298.71)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 2/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,062,775.01
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)] 3,127.75
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 1/31/97 and 2/1/97 1,065,902.76
Add: Servicer Advances to be deposited on Determination Date 1,131,502.68
Add: Payments due Collection Acct from last 2 business days 100,060.40
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 2,297,465.84
</TABLE>
Page 10
<PAGE> 170
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
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 @ 1/31/97 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 @ 1/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,770,010.68
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,770,010.68)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 171
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,297,465.84
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.23
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,769,950.86
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 126,155.46
</TABLE>
Page 12
<PAGE> 172
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 2/1/97
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
REVIEWED BY:
-----------------------------------
CRAIG M. SPENCER
CHIEF ACCOUNTING OFFICER
Page 13
<PAGE> 173
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,024,600.81
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 70,300,291.50
Base Principal Amount (Prior - Current) 1,724,309.30
Add: ADCPB of New Transferred Property 1,724,331.60
Ending ADCPB (Current + ADCPB of New Property) 72,024,623.10
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,724,309.30
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 174
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,724,309.30
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 175
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,724,309.30
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 176
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,601
Service Fee Rate 0.5000%
One-twelfth 0.0417%
Service Fee 30,010.25
Prior Service Fee Arrearage 0.00
Service Fee Due 30,010.25
Service Fee Paid 30,010.25
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,601
Back-Up Service Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Service Fee 1,200.41
Prior Back-Up Service Fee Arrearage 0.00
Total Back-Up Service Fee Due 1,200.41
Back-Up Service Fee Paid 1,200.41
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
Initial Class A Balance 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
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, unstated 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 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, our if, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
<PAGE> 178
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
RESTRICTING EVENT CALCULATIONS
(a) Event of Service 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 Service Termination
(i) Any failure by the Service to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Service 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 Service 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 Service 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 Service 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 Service duly to observe or perform in any
material respect any other covenants or agreements of the Service set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Service 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 Service 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 Service 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 Service is generally not paying its
debts as they come due or the Service 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 Service
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 Service, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Service, 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,
unstated or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against he Service in a proceeding under applicable bankruptcy
laws or thee 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 Service,
or any substantial part of its property, and such jurisdiction, custody
or control shall remain in force unrelinquished, unstated or unterminated
for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Service 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 Service is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
GROSS CHARGE-OFFS (GREATER THAN OR EQUAL TO 160 AND ACCOUNTS BOUGHT BACK BY
SOURCE)
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 0 0 0 70,642,634 0.00%
1 month prior 121,045 121,045 0 69,762,119 0.00%
Current 209,096 209,096 0 69,811,709 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,491,482 70,642,634 3.53%
1 month prior 3,161,952 69,762,119 4.53%
Current month 2,875,843 69,811,709 4.12%
Delinquency Ratio: 4.06%
Maximum Delinquency Ratio: 7.00%
</TABLE>
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (GREATER THAN OR EQUAL TO 180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 0 69,811,709 0.00%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.11%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
<S> <C> <C> <C>
2 months prior 251,380 70,642,634 0.36%
1 month prior 447,401 69,762,119 0.64%
Current month 570,118 69,811,709 0.82%
Issuer Delinquency Trigger Ratio: 0.60%
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
------------
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
% of
ADCPB Total
<S> <C> <C>
Current 66,935,866 95.88%
31-60 Days Past Due 1,603,312 2.30%
61-90 Days Past Due 702,413 1.01%
91+ Days Past Due 570,118 0.82%
--------------- ---------------
Total 69,811,709 100.00%
Certificate Factors
Class A Notes 1.0000000
Class B-1 Notes 1.0000000
Class B-2 Notes 1.0000000
Substitution Limits [Section 7]
ADCPB as of Cut-Off Date 72,024,443.60
Maximum Substitution (10% of Initial) 7,202,444.36
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,222.18
Prior month Cumulative ADCPB Substituted 497,558.47
Current month ADCPB Substituted 212,563.12
Cumulative ADCPB Substituted 710,121.59
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 121,044.56
Current month ADCPB Substituted Defaulted Contracts 209,095.72
Cumulative ADCPB Substituted for Defaulted Contracts 330,140.28
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 497,558.47
Current month ADCPB prepaid 212,563.12
Cumulative ADCPB prepaid 710,121.59
Prior month Cumulative ADCPB Defaulted 121,044.56
Current month ADCPB Defaulted 209,095.72
Cumulative ADCPB Defaulted 330,140.28
</TABLE>
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 209,701.38
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to
Collection Account (100,060.40)
Transfer of prior period Excluded Amounts not yet transferred (37,586.65)
Collections Received [5.02 (b)(d)] 2,266,876.80
Excluded Amounts [5.02 (d)][Definition] (1,163,774.99)
Collections on Deposit due Collection Account [5.02 (d)] (985,985.50)
Ending Balance @ 3/1/97 189,170.64
COLLECTION ACCOUNT
BEGINNING BALANCE @ 2/1/97 1,065,902.76
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 2/1/97
Add: Service Advance 1,131,502.68
Add: Payments due Collection Account from last 2 business days prior period 100,060.40
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 2/10/97 (2,297,465.84)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 3/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,008,980.28
Add: Service 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 Service [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 2,531.76
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 uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo 0.00
Ending Balance @ 2/28/97 and 3/1/97 1,011,512.04
Add: Service Advances to be deposited on Determination Date 1,025,135.19
Add: Payments due Collection Acct from last 2 business days 89,021.62
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 2,125,668.85
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
------------
Ending Balance @ 2/28/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
------------
Ending Balance @ 2/28/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,724,331.60
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,724,331.60)
------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,125,668.85
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Service Advances from current collection period 0.00
(B) Unreimbursed Service Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.25
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Service under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Service Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,724,309.30
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 3/1/97
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 Service Advances from prior periods 0.00
(B) Service Fee and unpaid Service Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Service 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
Chief Accounting Officer
Page 13
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
ADCPB Balance
- -------------
<S> <C>
Prior Month ADCPB 72,024,623.10
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 69,868,492.74
Base Principal Amount (Prior - Current) 2,156,130.36
Add: ADCPB of New Transferred Property 2,156,321.60
Ending ADCPB (Current + ADCPB of New Property) 72,024,814.34
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 2,156,130.36
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 2,156,130.36
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 2,156,130.36
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,623
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.26
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.26
Servicer Fee Paid 30,010.26
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,623
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
Initial Class A Balance 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement
of the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice
specifying such default or breach and requiring it to be remedied and
stating that such notice is a "Notice of default" hereunder, or it, in
any such case, the Depositor have consented in writing that any such
event shall be an Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is
not dismissed within 90 days) seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or any
of its Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties
of the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
our if, in any such case, the Depositor have consented in writing that
any such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
RESTRICTING EVENT CALCULATIONS
- ------------------------------
<S> <C>
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
</TABLE>
EVENTS OF SERVICER TERMINATION
- ------------------------------
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a) (ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in any
material respect any other covenants or agreements of the Servicer set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Servicer set forth in
Section 3.02 of this Agreement, which failure or breach (A) materially
and adversely affects the rights of the Trustee, Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
GROSS CHARGE-OFFS GREATER THAN OR EQUALS TO 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 121,045 121,045 0 69,762,119 0.00%
1 month prior 209,096 209,096 0 69,811,709 0.00%
Current 178,477 178,477 0 69,609,133 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
- -----------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 3,161,952 69,762,119 4.53%
1 month prior 2,875,843 69,811,709 4.12%
Current month 2,752,006 69,609,133 3.95%
Delinquency Ratio: 4.20%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults greater than or equals to 180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS GREATER THAN OR EQUALS 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 6,926 69,609,133 0.01%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.11%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 447,401 69,762,119 0.64%
1 month prior 570,118 69,811,709 0.82%
Current month 541,150 69,609,133 0.78%
Issuer Delinquency Trigger Ratio: 0.75%
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
AGING/DELINQUENCY STATISTICS
% of
ADCPB Total
<S> <C> <C>
Current 66,857,128 96.05%
31-60 Days Past Due 1,667,723 2.40%
61-90 Days Past Due 543,133 0.78%
91+ Days Past Due 541,150 0.78%
---------- ------
Total 69,609,133 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 710,121.59
Current month ADCPB Substituted 335,893.35
Cumulative ADCPB Substituted 1,046,014.94
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 330,140.28
Current month ADCPB Substituted Defaulted Contracts 178,477.09
Cumulative ADCPB Substituted for Defaulted Contracts 508,617.37
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 710,121.59
Current month ADCPB prepaid 335,893.35
Cumulative ADCPB prepaid 1,046,014.94
Prior month Cumulative ADCPB Defaulted 330,140.28
Current month ADCPB Defaulted 178,477.09
Cumulative ADCPB Defaulted 508,617.37
</TABLE>
Page 9
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- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 189,170.04
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (89,021.62)
Transfer of prior period Excluded Amounts not yet transferred (34,314.37)
Collections Received [5.02 (b)(d)] 2,800,622.84
Excluded Amounts [5.02 (d)][Definition] (1,151,538.19)
Collections on Deposit due Collection Account [5.02 (d)] (1,193,531.47)
Ending Balance @ 4/1/97 521,387.23
COLLECTION ACCOUNT
BEGINNING BALANCE @ 3/1/97 1,011,512.04
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 3/1/97
Add: Servicer Advance 1,025,135.19
Add: Payments due Collection Account from last 2 business days prior period 89,021.62
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 3/10/97 (2,125,668.85)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 4/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,164,699.91
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)] 2,958.18
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificate holders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo 0.00
Ending Balance @ 3/31/97 and 4/1/97 1,167,658.09
Add: Servicer Advances to be deposited on Determination Date 1,070,172.62
Add:Payments due Collection Acct from last 2 business days 319,659.21
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 2,557,489.92
</TABLE>
Page 10
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
- ------------------------
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 3/31/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance
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 @ 3/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 2,156,321.60
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (2,156,321.60)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
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- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
<TABLE>
<CAPTION>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,557,489.92
<S> <C>
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.26
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x) 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 2,156,130.36
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Reviewed By:
- ----------------------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 12
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- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 4/1/97
DISBURSEMENTS FROM COLLECTION ACCOUNT (ON AND AFTER INITIAL AMORTIZATION DATE)
<TABLE>
<S> <C>
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 c (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 c (ii)] 0.00
(iii) Aggregate of: [6.06 c (iii)]
(A) Unreimbursed Servicer Advances from prior periods 0.00
(B) Servicer Fee and unpaid Servicer Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 0.00
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 0.00
(vi) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 c (vi)] 0.00
(vii) Class A Certificate Interest and Overdue Class A Interest [6.06 c (vii)] 0.00
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 0.00
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 0.00
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 0.00
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)] 0.00
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 0.00
provided no restricting event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in 0.00
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Reviewed By:
- ----------------------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 13
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,024,814.34
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 70,145,703.99
Base Principal Amount (Prior - Current) 1,879,110.35
Add: ADCPB of New Transferred Property 1,879,137.38
Ending ADCPB (Current + ADCPB of New Property) 72,024,841.37
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,879,110.35
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,879,110.35
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,879,110.35
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,814
Service Fee Rate 0.5000%
One-twelfth 0.0417%
Service Fee 30,010.34
Prior Service Fee Arrearage 0.00
Service Fee Due 30,010.34
Service Fee Paid 30,010.34
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,814
Back-Up Service Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Service Fee 1,200.41
Prior Back-Up Service Fee Arrearage 0.00
Total Back-Up Service Fee Due 1,200.41
Back-Up Service Fee Paid 1,200.41
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
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, unstated 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 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, our if, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10,01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occur and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 5
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
RESTRICTING EVENT CALCULATIONS
(a) Event of Service 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 Service Termination
(i) Any failure by the Service to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Service 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 Service 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 Service 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 Service 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 Service duly to observe or perform in any
material respect any other covenants or agreements of the Service set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Service 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 Service 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 Service 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 Service is generally not paying its
debts as they come due or the Service shall make a general assignment for
the benefit of creditors; [11.01 (a)(iv)]
(v) The Service 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 Service
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 Service, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Service, 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,
unstated or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against he Service in a proceeding under applicable bankruptcy
laws or thee 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 Service,
or any substantial part of its property, and such jurisdiction, custody
or control shall remain in force unrelinquished, unstated or
undeterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Service 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 Service is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
GROSS CHARGE-OFFS GREATER THAN OR EQUAL TO 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 209,096 209,096 0 69,811,709 0.00%
1 month prior 178,477 178,477 0 69,609,133 0.00%
Current 258,895 258,895 0 70,218,555 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,875,843 69,811,709 4.12%
1 month prior 2,752,006 69,609,133 3.95%
Current month 2,928,006 70,218,555 4.17%
Delinquency Ratio: 4.08%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (LESS THAN OR EQUAL TO 180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (LESS THAN OR EQUAL 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 9,714 70,218,555 0.01%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.14
ii Two
Ratio (i/ii) 2.10%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 570,118 69,811,709 0.82%
1 month prior 541,150 69,609,133 0.78%
Current month 448,919 70,218,555 0.64%
Issuer Delinquency Trigger Ratio: 0.74%
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
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 67,290,549 95.83%
31-60 Days Past Due 1,740,123 2.48%
61-90 Days Past Due 738,964 1.05%
91+ Days Past Due 448,919 0.64%
--------------- ------
Total 70,218,555 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 1,046,014.94
Current month ADCPB Substituted 527,952.09
Cumulative ADCPB Substituted 1,573,967.03
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 508,617.37
Current month ADCPB Substituted Defaulted Contracts 258,895.17
Cumulative ADCPB Substituted for Defaulted Contracts 767,512.54
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 1,046,014.94
Current month ADCPB prepaid 527,952.09
Cumulative ADCPB prepaid 1,573,967.03
Prior month Cumulative ADCPB Defaulted 508,617.37
Current month ADCPB Defaulted 258,895.17
Cumulative ADCPB Defaulted 767,512.54
</TABLE>
Page 9
<PAGE> 208
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 521,387.23
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to
Collection Account (319,659.21)
Transfer of prior period Excluded Amounts not yet transferred (61,842.82)
Collections Received [5.02 (b)(d)] 2,236,611.73
Excluded Amounts [5.02 (d)][Definition] (815,770.41)
Collections on Deposit due Collection Account [5.02 (d)] (1,237,808.10)
Ending Balance @ 5/1/97 322,918.42
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 4/1/97 1,167,658.09
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 4/1/97
Add: Service Advance 1,070,172.62
Add: Payments due Collection Account from last 2 business days prior period 319,659.21
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 4/10/97 (2,557,489.92)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 5/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,361,385.01
Add: Service 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 Service [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,803.47
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 Service 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 @ 4/30/97 and 5/1/97 1,365,188.48
Add: Service Advances to be deposited on Determination Date 847,027.49
Add: Payments due Collection Acct from last 2 business days 150,304.78
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 2,362,520.75
</TABLE>
Page 10
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
------------
Ending Balance @ 4/30/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
------------
Ending Balance @ 4/30/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,879,137.38
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,879,137.38)
------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 5/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,362,520.75
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Service Advances from current collection period 0.00
(B) Unreimbursed Service Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.34
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b
(viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b
(ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date
[6.06 b (x)] 0.00
(xii) Any amounts due Service under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Service Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new
Contracts transferred to the Trust, [6.06 b (xii)] 1,879,110.35
If less than the Base Principal Amount, the remainder to the New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b
(xiii)] 82,050.76
</TABLE>
Reviewed By:
- --------------------------------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 12
<PAGE> 211
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
ADCPB BALANCE
<S> <C>
Prior Month ADCPB 72,024,841.37
Initial ADCPB 72,024,443.60
Current Month ADCPB (Before addition of New Property) 70,203,759.03
Base Principal Amount (Prior - Current) 1,821,082.34
Add: ADCPB of New Transferred Property 1,821,166.74
Ending ADCPB (Current + ADCPB of New Property) 72,024,925.77
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,821,082.34
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
----
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 212
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
CLASS B-1 INTEREST SCHEDULE
<S> <C>
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,821,082.34
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,821,082.34
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
<S> <C>
Prior Month ADCPB 72,024,841
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.35
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.35
Servicer Fee Paid 30,010.35
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,841
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 215
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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, Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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 178,477 178,477 0 69,609,133 0.00%
1 month prior 258,895 258,895 0 70,218,555 0.00%
Current 200,442 200,442 0 70,128,406 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,752,006 69,609,133 3.95%
1 month prior 2,928,006 70,218,555 4.17%
Current month 2,582,403 70,128,406 3.68%
Delinquency Ratio: 3.94%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
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 59,898 70,128,406 0.09%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.14
ii Two
Ratio (i/ii) 2.10%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 541,150 69,609,133 0.78%
1 month prior 448,919 70,218,555 0.64%
Current month 731,450 70,128,406 1.04%
Issuer Delinquency Trigger Ratio: 0.82%
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> 219
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
AGING/DELINQUENCY STATISTICS
% of
ADCPB Total
<S> <C> <C>
Current 67,546,003 96.32%
31-60 Days Past Due 1,316,411 1.88%
61-90 Days Past Due 534,541 0.76%
91+ Days Past Due 731,450 1.04%
---------- ------
Total 70,128,406 100.00%
CERTIFICATE FACTORS
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 1,573,967.03
Current month ADCPB Substituted 452,351.81
Cumulative ADCPB Substituted 2,026,318.84
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 767,512.54
Current month ADCPB Substituted Defaulted Contracts 200,442.33
Cumulative ADCPB Substituted for Defaulted Contracts 967,954.87
PORTFOLIO PREPAYMENT STATISTICS
Prior month Cumulative ADCPB prepaid 1,573,967.03
Current month ADCPB prepaid 452,351.81
Cumulative ADCPB prepaid 2,026,318.84
Prior month Cumulative ADCPB Defaulted 767,512.54
Current month ADCPB Defaulted 200,442.33
Cumulative ADCPB Defaulted 967,954.87
</TABLE>
Page 9
<PAGE> 220
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 322,918.42
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (150,304.78)
Transfer of prior period Excluded Amounts not yet transferred (38,501.82)
Collections Received [5.02 (b)(d)] 2,352,963.68
Excluded Amounts [5.02 (d)][Definition] (902,077.55)
Collections on Deposit due Collection Account [5.02 (d)] (1,315,561.37)
Ending Balance @ 6/1/97 269,436.58
COLLECTION ACCOUNT
BEGINNING BALANCE @ 5/1/97 1,365,188.48
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 5/1/97
Add: Servicer Advance 847,027.49
Add: Payments due Collection Account from last 2 business days prior period 150,304.78
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 5/10/97 (2,362,520.75)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 6/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,388,469.75
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)] 4,588.57
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 @ 5/31/97 and 6/1/97 1,393,058.32
Add: Servicer Advances to be deposited on Determination Date 948,933.90
Add: Payments due Collection Acct from last 2 business days 89,317.58
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 2,431,309.80
</TABLE>
Page 10
<PAGE> 221
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
<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 @ 5/31/97 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 @ 5/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,821,166.74
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,821,166.74)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 222
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 6/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,431,309.80
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection
Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.35
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest
[6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest
[6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date
[6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new 1,821,082.34
Contracts transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New 0.00
Transferred Property Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 208,867.81
</TABLE>
Received By:
- ---------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 12
<PAGE> 223
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
ADCPB Balance
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,841.37
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 70,071,970.05
Base Principal Amount (Prior - Current) 1,952,871.32
Add: ADCPB of New Transferred Property 1,952,875.49
Ending ADCPB (Current + ADCPB of New Property) 72,024,845.54
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,952,871.32
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 224
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,952,871.32
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
----
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 225
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,952,871.32
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 226
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 72,024,841
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.35
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.35
Servicer Fee Paid 30,010.35
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,841
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.41
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.41
Back-Up Servicer Fee Paid 1,200.41
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
Trustee Fee 291.67
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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,
Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
GROSS CHARGE-OFFS (GREATER THAN OR EQUAL TO 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 258,895 258,895 0 70,218,555 0.00%
1 month prior 200,442 200,442 0 70,128,406 0.00%
Current 20,239 20,239 0 70,290,466 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,928,006 70,218,555 4.17%
1 month prior 2,582,403 70,128,406 3.68%
Current month 2,706,206 70,290,466 3.85%
Delinquency Ratio: 3.90%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (Greater Than Or Equal To 180) Yes
-----------
(b) Issuer Delinquency Trigger Ratio No
-----------
GROSS DEFAULTS (GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 60,180 70,290,466 0.09%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.15
ii Two
Ratio (i/ii) 2.10%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 448,919 70,218,555 0.64%
1 month prior 731,450 70,128,406 1.04%
Current month 720,140 70,290,466 1.02%
Issuer Delinquency Trigger Ratio: 0.90%
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
Current 67,584,259 96.15%
<S> <C> <C>
31-60 Days Past Due 1,531,504 2.18%
61-90 Days Past Due 454,563 0.65%
91+ Days Past Due 720,140 1.02%
------------- ------
Total 70,290,466 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 2,026,318.84
Current month ADCPB Substituted 208,080.75
Cumulative ADCPB Substituted 2,234,399.59
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 967,954.87
Current month ADCPB Substituted Defaulted Contracts 20,239.37
Cumulative ADCPB Substituted for Defaulted Contracts 988,194.24
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 2,026,318.84
Current month ADCPB prepaid 208,080.75
Cumulative ADCPB prepaid 2,234,399.59
Prior month Cumulative ADCPB Defaulted 967,954.87
Current month ADCPB Defaulted 20,239.37
Cumulative ADCPB Defaulted 988,194.24
</TABLE>
Page 9
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- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 269,436.58
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (89,317.58)
Transfer of prior period Excluded Amounts not yet transferred (49,602.60)
Collections Received [5.02 (b)(d)] 2,443,775.78
Excluded Amounts [5.02 (d)][Definition] (986,518.56)
Collections on Deposit due Collection Account [5.02 (d)] (1,123,206.64)
Ending Balance @ 7/1/97 464,566.98
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
BEGINNING BALANCE @ 6/1/97 1,393,058.32
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 6/1/97
Add: Servicer Advance 948,933.90
Add: Payments due Collection Account from last 2 business days prior period 89,317.58
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 6/10/97 (2,431,309.80)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,087,932.45
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)] 3,587.44
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 @ 6/30/97 and 7/1/97 1,091,519.89
Add: Servicer Advances to be deposited on Determination Date 1,209,314.85
Add:Payments due Collection Acct from last 2 business days 53,396.23
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,354,230.97
</TABLE>
Page 10
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
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 @ 6/30/97 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 @ 6/30/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,952,871.32
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,952,871.32)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 7/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,354,230.97
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.35
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,952,871.32
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Reviewed By:
- --------------------------------------------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 12
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,024,845.54
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 70,466,194.67
Base Principal Amount (Prior - Current) 1,558,650.86
Add: ADCPB of New Transferred Property 1,558,780.41
Ending ADCPB (Current + ADCPB of New Property) 72,024,975.08
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,558,650.86
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,558,650.86
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,558,650.86
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,846
Service Fee Rate 0.5000%
One-twelfth 0.0417%
Service Fee 30,010.35
Prior Service Fee Arrearage 0.00
Service Fee Due 30,010.35
Service Fee Paid 30,010.35
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,024,846
Back-Up Service Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Service Fee 1,200.41
Prior Back-Up Service Fee Arrearage 0.00
Total Back-Up Service Fee Due 1,200.41
Back-Up Service Fee Paid 1,200.41
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
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, unstated 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 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, 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
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
RESTRICTING EVENT CALCULATIONS
(a) Event of Service 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 Service Termination
(i) Any failure by the Service to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Service 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 Service 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 Service 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 Service 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 Service duly to observe or perform in any
material respect any other covenants or agreements of the Service set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Service 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 Service 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 Service 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 Service is generally not paying its
debts as they come due or the Service shall make a general assignment for
the benefit of creditors; [11.01 (a)(iv)]
(v) The Service 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 Service
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 Service, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Service, 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,
unstated or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against the Service 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
Service, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstated or
undeterminated for a period of 60 days; [11.01(a)(vii)]
(viii)Any assignment by the Service 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 Service is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
GROSS CHARGE-OFFS GREATER THAN OR EQUAL 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 200,442 200,442 0 70,128,406 0.00%
1 month prior 20,239 20,239 0 70,290,466 0.00%
Current 409,314 409,314 0 70,486,920 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,582,403 70,128,406 3.68%
1 month prior 2,706,206 70,290,466 3.85%
Current month 2,859,865 70,486,920 4.06%
Delinquency Ratio: 3.86%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 242
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (GREATER THAN OR EQUAL TO 180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 154,373 70,486,920 0.22%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.12
ii Two
Ratio (i/ii) 2.12%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 731,450 70,128,406 1.04%
1 month prior 720,140 70,290,466 1.02%
Current month 617,389 70,486,920 0.88%
Issuer Delinquency Trigger Ratio: 0.98%
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
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
% of
ADCPB Total
<S> <C> <C>
Current 67,627,055 95.94%
31-60 Days Past Due 1,862,150 2.64%
61-90 Days Past Due 380,326 0.54%
91+ Days Past Due 617,389 0.88%
--------------- ---------------
Total 70,486,920 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 2,234,399.59
Current month ADCPB Substituted 264,160.27
Cumulative ADCPB Substituted 2,498,559.86
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 988,194.24
Current month ADCPB Substituted Defaulted Contracts 178,191.00
Cumulative ADCPB Substituted for Defaulted Contracts 1,166,385.24
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 2,234,399.59
Current month ADCPB prepaid 264,160.27
Cumulative ADCPB prepaid 2,498,559.86
Prior month Cumulative ADCPB Defaulted 988,194.24
Current month ADCPB Defaulted 178,191.00
Cumulative ADCPB Defaulted 1,166,385.24
</TABLE>
Page 9
<PAGE> 244
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 464,566.98
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (53,396.23)
Transfer of prior period Excluded Amounts not yet transferred (34,515.42)
Collections Received [5.02 (b)(d)] 2,260,347.32
Excluded Amounts [5.02 (d)][Definition] (1,077,307.39)
Collections on Deposit due Collection Account [5.02 (d)] (1,225,415.77)
Ending Balance @ 8/1/97 334,279.49
COLLECTION ACCOUNT
BEGINNING BALANCE @ 7/1/97 1,091,519.89
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 7/1/97
Add: Service Advance 1,209,314.85
Add: Payments due Collection Account from last 2 business days prior period 53,396.23
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 7/10/97 (2,354,230.97)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,204,166.97
Add: Service 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 Service [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 3,574.29
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 Service 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 @ 7/31/97 and 8/1/97 1,207,741.26
Add: Service Advances to be deposited on Determination Date 870,415.21
Add: Payments due Collection Acct from last 2 business days 100,690.96
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 2,178,847.43
</TABLE>
Page 10
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C> <C>
SECURITY DEPOSIT ACCOUNT
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
------------
Ending Balance @ 7/31/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
------------
Ending Balance @ 7/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,558,650.86
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,558,650.86)
------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 246
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 8/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,178,847.43
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Service Advances from current collection period 0.00
(B) Unreimbursed Service Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.35
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.41
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Service under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Service Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 1,558,650.86
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New Transferred Property 0.00
Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 218,836.91
</TABLE>
Reviewed By:
- -------------------------------------------------
Craig M. Spencer
Senior VP and Chief Accounting Officer
Page 12
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,024,975.08
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 70,209,385.98
Base Principal Amount (Prior - Current) 1,815,589.10
Add: ADCPB of New Transferred Property 1,815,697.72
Ending ADCPB (Current + ADCPB of New Property) 72,025,083.70
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 1,815,589.10
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 248
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 1,815,589.10
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 249
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<CAPTION>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
<S> <C>
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 1,815,589.10
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
#
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 250
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<CAPTION>
SERVICING FEE SCHEDULE
- ----------------------
<S> <C>
Prior Month ADCPB 72,024,975
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.41
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.41
Servicer Fee Paid 30,010.41
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 72,024,975
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.42
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.42
Back-Up Servicer Fee Paid 1,200.42
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 251
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
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,
Certificatesholders, 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
jurisdication, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
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 20,239 20,239 0 70,290,466 0.00%
1 month prior 409,314 409,314 0 70,486,920 0.00%
Current 319,686 319,686 0 70,126,926 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
<TABLE>
<CAPTION>
30+ DELINQUENCIES
- -----------------
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,706,206 70,290,466 3.85%
1 month prior 2,859,865 70,486,920 4.06%
Current month 2,827,430 70,126,926 4.03%
Delinquency Ratio: 3.98%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 254
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults greater than or equals to 180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
- ----------------------
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
30,010
Current 166,826 70,126,926 0.24%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.12
ii Two
Ratio (i/ii) 2.12%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 720,140 70,290,466 1.02%
1 month prior 617,389 70,486,920 0.88%
Current month 582,011 70,126,926 0.83%
Issuer Delinquency Trigger Ratio: 0.91%
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> 255
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
----------------------------
% of
ADCPB Total
<S> <C> <C>
Current 67,299,496 95.97%
31-60 Days Past Due 1,800,106 2.57%
61-90 Days Past Due 445,314 0.64%
91+ Days Past Due 582,011 0.83%
------------- ------
Total 70,126,926 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 2,498,559.86
Current month ADCPB Substituted 256,087.47
Cumulative ADCPB Substituted 2,754,647.33
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,166,385.24
Current month ADCPB Substituted Defaulted Contracts 65,052.34
Cumulative ADCPB Substituted for Defaulted Contracts 1,231,437.58
Portfolio Prepayment Statistics
-------------------------------
Prior month Cumulative ADCPB prepaid 2,498,559.86
Current month ADCPB prepaid 256,087.47
Cumulative ADCPB prepaid 2,754,647.33
Prior month Cumulative ADCPB Defaulted 1,166,385.24
Current month ADCPB Defaulted 65,052.34
Cumulative ADCPB Defaulted 1,231,437.58
</TABLE>
Page 9
<PAGE> 256
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 334,279.49
- --------------------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection Account (101,115.62)
Transfer of prior period Excluded Amounts not yet transferred (9,819.87)
Collections Received [5.02 (b)(d)] 2,122,351.30
Excluded Amounts [5.02 (d)][Definition] (932,755.01)
Collections on Deposit due Collection Account [5.02 (d)] (1,033,084.82)
Ending Balance @ 9/1/97 379,855.47
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE @ 8/1/97 1,207,741.26
--------------------------
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 8/1/97
----------------------------------------------------
Add: Servicer Advance 870,415.21
Add: Payments due Collection Account from last 2 business days prior period 100,690.96
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 8/10/97 (2,178,847.43)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 9/1/97
----------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 1,093,290.58
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 (ii)] 0.00
Add: Reconveyance Amounts by Servicer [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 4,011.19
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 @ 8/31/97 and 9/1/97 1,097,301.77
Add: Servicer Advances to be deposited on Determination Date 989,599.33
Add:Payments due Collection Acct from last 2 business days 130,047.71
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 2,216,948.81
</TABLE>
Page 10
<PAGE> 257
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
- ------------------------
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 8/31/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 8/31/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 1,815,589.10
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (1,815,589.10)
-------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 258
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 9/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,216,948.81
- ---------------------------------------
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
- --------------------------------------------------------------------------
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.41
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.42
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on
Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new 1,815,589.10
Contracts transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New 0.00
Transferred Property Funding Account [6.06 b (xii)]
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] (0.01)
</TABLE>
Reviewed By:
----------------------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 259
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,025,083.70
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 69,587,175.89
Base Principal Amount (Prior - Current) 2,437,907.81
Add: ADCPB of New Transferred Property 2,438,093.04
Ending ADCPB (Current + ADCPB of New Property) 72,025,268.93
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 2,437,907.81
Class A Base Principal Distribution Amount 0.00
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 0.00
Class A Principal Paid 0.00
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 63,381,510.00
</TABLE>
Page 1
<PAGE> 260
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 2,437,907.81
Class B-1 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
------------
Class B-1 Principal Paid 0.00
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,160,733.00
</TABLE>
Page 2
<PAGE> 261
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 2,437,907.81
Class B-2 Base Principal Distribution Amount 0.00
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 0.00
Class B-2 Principal Paid 0.00
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,800,611.00
</TABLE>
Page 3
<PAGE> 262
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,025,084
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 30,010.45
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 30,010.45
Servicer Fee Paid 30,010.45
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,025,084
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,200.42
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,200.42
Back-Up Servicer Fee Paid 1,200.42
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 263
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
Early Amortization Events
(a) Default in the payment to the Class A Certificate holders or the Class B
Certificate holders 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 Certificate holders 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> 264
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
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 Certificate holder provides written notification to the
Servicer of such failure or (B) the Depositor becomes aware that the
Certificate Insurer and the Certificate holders 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, Certificatesholders, 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 jurisdication,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01(a)(vii)]
(viii)Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 265
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
GROSS CHARGE-OFFS GREATER THAN OR EQUAL TO 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 409,314 409,314 0 70,486,920 0.00%
1 month prior 319,686 319,686 0 70,126,926 0.00%
Current 197,633 197,633 0 68,174,809 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,859,865 70,486,920 4.06%
1 month prior 2,827,430 70,126,926 4.03%
Current month 2,603,856 68,174,809 3.82%
Delinquency Ratio: 3.97%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 266
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults greater than or equal to 180) No
------------
(b) Issuer Delinquency Trigger Ratio No
------------
GROSS DEFAULTS GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 99,566 68,174,809 0.15%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.11%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 617,389 70,486,920 0.88%
1 month prior 582,011 70,126,926 0.83%
Current month 329,771 68,174,809 0.48%
Issuer Delinquency Trigger Ratio: 0.73%
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
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- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
% of
ADCPB Total
<S> <C> <C>
Current 65,570,953 96.18%
31-60 Days Past Due 2,027,972 2.97%
61-90 Days Past Due 246,113 0.36%
91+ Days Past Due 329,771 0.48%
---------- ------
Total 68,174,809 100.00%
Certificate Factors
Class A Notes 1.000000000
Class B-1 Notes 1.000000000
Class B-2 Notes 1.000000000
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 2,754,647.33
Current month ADCPB Substituted 480,208.53
Cumulative ADCPB Substituted 3,234,855.86
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,231,437.58
Current month ADCPB Substituted Defaulted Contracts 89,491.01
Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
Portfolio Prepayment Statistics
Prior month Cumulative ADCPB prepaid 2,754,647.33
Current month ADCPB prepaid 480,208.53
Cumulative ADCPB prepaid 3,234,855.86
Prior month Cumulative ADCPB Defaulted 1,231,437.58
Current month ADCPB Defaulted 89,491.01
Cumulative ADCPB Defaulted 1,320,928.59
</TABLE>
Page 9
<PAGE> 268
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 379,855.47
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (130,047.71)
Transfer of prior period Excluded Amounts not yet transferred (31,702.03)
Collections Received [5.02 (b)(d)] 2,757,988.44
Excluded Amounts [5.02 (d)][Definition] (1,084,666.38)
Collections on Deposit due Collection Account [5.02 (d)] (1,446,437.02)
Ending Balance @ 10/1/97 444,990.77
COLLECTION ACCOUNT
BEGINNING BALANCE @ 9/1/97 1,097,301.77
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 9/1/97
Add: Servicer Advance 989,599.33
Add: Payments due Collection Account from last 2 business days prior period 130,047.71
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 9/10/97 (2,216,948.81)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 10/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,305,316.66
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)] 3,888.64
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificate holders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo 0.00
Ending Balance @ 9/30/97 and 10/1/97 1,309,205.30
Add: Servicer Advances to be deposited on Determination Date 1,183,428.76
Add:Payments due Collection Acct from last 3 business days 346,633.51
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 2,839,267.57
</TABLE>
Page 10
<PAGE> 269
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<CAPTION>
SECURITY DEPOSIT ACCOUNT
- ------------------------
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 9/30/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 9/30/97 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 2,437,907.81
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] (2,437,907.81)
--------------
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 11
<PAGE> 270
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 10/1/97
<TABLE>
<CAPTION>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,839,267.57
DISBURSEMENTS FROM COLLECTION ACCOUNT (PRIOR TO INITIAL AMORTIZATION DATE]
(i) Initial Unpaid Amts inadvertently dep. in Collection Account [6.06 b (i)] 0.00
(ii) Indemnity payments paid inadvertently dep in Collection Account [6.06 b (ii)] 0.00
(iii) Aggregate of: [6.06 b (iii)]
(A) Unreimbursed Servicer Advances from current collection period 0.00
(B) Unreimbursed Servicer Advances from prior collection period 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.45
(v) Current and unpaid Back-up Servicing Fees [6.06 b (iv)] 1,200.42
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 b (v)] 12,676.00
(vii) Trustee Fee due on Payment Date and unpaid Trustee Fees [6.06 b (vi)] 291.67
(viii) Class A Certificate Interest and Overdue Class A Interest [6.06 b (vii)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 b (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 b (ix)] 12,334.19
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (x)] 0.00
(xii) Any amounts due Servicer under 9.03 [6.06 b (xi)] 0.00
(xiii) To the Servicer Security Deposit Refund under 6.02C 0.00
(ix) To the depositor the lesser of Base Principal Amount or ADCPB new Contracts 2,437,907.81
transferred to the Trust, [6.06 b (xii)]
If less than the Base Principal Amount, the remainder to the New
Transferred Property Funding Account [6.06 b (xii)] 0.00
(x) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 0.00
</TABLE>
Reviewed By:
---------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 271
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
ADCPB Balance
Prior Month ADCPB 72,025,268.93
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 69,685,151.68
Base Principal Amount (Prior - Current) 2,340,117.24
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 69,685,151.68
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 332,224.75
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 332,224.75
Class A Interest Paid 332,224.75
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 63,381,510.00
Class A Percentage 88.00%
Base Principal Amount 2,340,117.24
Class A Base Principal Distribution Amount 2,059,303.17
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 2,059,303.17
Class A Principal Paid 2,059,303.17
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 61,322,206.83
</TABLE>
Page 1
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,622.28
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,622.28
Class B-1 Interest Paid 12,622.28
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,160,733.00
Class B-1 Percentage 3.00%
Base Principal Amount 2,340,117.24
Class B-1 Base Principal Distribution Amount 70,203.52
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 70,203.52
------------
Class B-1 Principal Paid 70,203.52
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,090,529.48
</TABLE>
Page 2
<PAGE> 273
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 12,334.19
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 12,334.19
Class B-2 Interest Paid 12,334.19
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,800,611.00
Class B-2 Percentage 2.50%
Base Principal Amount 2,340,117.24
Class B-2 Base Principal Distribution Amount 58,502.93
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 58,502.93
Class B-2 Principal Paid 58,502.93
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,742,108.07
</TABLE>
Page 3
<PAGE> 274
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 72,025,269
Service Fee Rate 0.5000%
One-twelfth 0.0417%
Service Fee 30,010.53
Prior Service Fee Arrearage 0.00
Service Fee Due 30,010.53
Service Fee Paid 30,010.53
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 72,025,269
Back-Up Service Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Service Fee 1,200.42
Prior Back-Up Service Fee Arrearage 0.00
Total Back-Up Service Fee Due 1,200.42
Back-Up Service Fee Paid 1,200.42
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 63,381,510.00
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,676.00
Premium Amount Paid 12,676.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 275
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
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, unstated 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 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, 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> 276
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
RESTRICTING EVENT CALCULATIONS
(a) Event of Service 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 Service Termination
(i) Any failure by the Service to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Service 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 Service 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 Service 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 Service 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 Service duly to observe or perform in any
material respect any other covenants or agreements of the Service set
forth in the Certificates or in this agreement, as in the case may be, or
any breach of representation or warranty of the Service 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 Service 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 Service 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 Service is generally not paying its
debts as they come due or the Service shall make a general assignment for
the benefit of creditors; [11.01 (a)(iv)]
(v) The Service 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 Service
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 Service, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Service, 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,
unstated or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against the Service 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
Service, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstated or
unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Service 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 Service is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 6
<PAGE> 277
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
GROSS CHARGE-OFFS (GREATER THAN OR EQUAL TO 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 319,686 319,686 0 70,126,926 0.00%
1 month prior 197,633 197,633 0 68,174,809 0.00%
Current 148,823 148,823 0 69,685,152 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,827,430 70,126,926 4.03%
1 month prior 2,603,856 68,174,809 3.82%
Current month 3,174,555 69,685,152 4.56%
Delinquency Ratio: 4.14%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 278
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (GREATER THAN OR EQUAL TO 180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 44,279 69,685,152 0.06%
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>
2 months prior 582,011 70,126,926 0.83%
1 month prior 329,771 68,174,809 0.48%
Current month 197,725 69,685,152 0.28%
Issuer Delinquency Trigger Ratio: 0.53%
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
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FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
% of
ADCPB Total
<S> <C> <C>
Current 66,510,596 95.44%
31-60 Days Past Due 2,649,825 3.80%
61-90 Days Past Due 327,005 0.47%
91+ Days Past Due 197,725 0.28%
--------------- ---------------
Total 69,685,152 100.00%
Certificate Factors
Class A Notes 0.967509402
Class B-1 Notes 0.967509397
Class B-2 Notes 0.967509400
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 3,234,855.86
Current month ADCPB prepaid 833,862.04
---------------
Cumulative ADCPB prepaid 4,068,717.90
Prior month Cumulative ADCPB Defaulted 1,320,928.59
Current month ADCPB Defaulted 103,301.14
---------------
Cumulative ADCPB Defaulted 1,424,229.73
</TABLE>
Page 9
<PAGE> 280
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 444,990.77
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to
Collection Account (205,513.15)
Transfer of prior period Excluded Amounts not yet transferred (50,251.96)
Collections Received [5.02 (b)(d)] 2,702,510.52
Excluded Amounts [5.02 (d)][Definition] (941,368.68)
Collections on Deposit due Collection Account [5.02 (d)] (1,578,530.87)
Ending Balance @ 11/1/97 371,836.63
</TABLE>
<TABLE>
<S> <C>
COLLECTION ACCOUNT
BEGINNING BALANCE @ 10/1/97 1,309,205.30
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 10/1/97
Add: Service Advance 1,183,428.76
Add: Payments due Collection Account from last 2 business days prior period 346,633.51
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 10/10/97 (2,839,267.57)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 1,578,530.87
Add: Service 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 Service [6.01 b (iv)] 0.00
Add: Any Investment Earnings [6.01 b (v)] 5,441.17
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 Service Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo 0.00
Ending Balance @ 10/31/97 and 11/1/97 1,583,972.04
Add: Service Advances to be deposited on Determination Date 1,046,858.05
Add: Payments due Collection Acct from last 3 business days 141,976.99
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 2,772,807.08
</TABLE>
Page 10
<PAGE> 281
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending Balance @ 10/31/97 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending Balance @ 10/31/97 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> 282
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICE CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 11/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,772,807.08
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 Service Advances from prior periods 0.00
(B) Service Fee and unpaid Service Fee 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 30,010.53
(v) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,200.42
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 12,676.00
(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)] 332,224.75
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 12,622.28
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 12,334.19
(xi) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 2,059,303.17
(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)] provided no restricting event exists 70,203.52
(xiv) 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 58,502.93
(xv) Any amounts due Service 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)] 183,437.62
</TABLE>
Reviewed By:
- --------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
<PAGE> 283
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
ADCPB Balance
<TABLE>
<S> <C>
Prior Month ADCPB 69,685,151.68
Initial ADCPB 72,024,925.77
Current Month ADCPB (Before addition of New Property) 67,916,861.84
Base Principal Amount (Prior - Current) 1,768,289.85
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 67,916,861.84
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 61,322,206.83
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 321,430.57
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 321,430.57
Class A Interest Paid 321,430.57
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 61,322,206.83
Class A Percentage 88.00%
Base Principal Amount 1,768,289.85
Class A Base Principal Distribution Amount 1,556,095.07
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,556,095.07
Class A Principal Paid 1,556,095.07
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 59,766,111.76
</TABLE>
Page 1
<PAGE> 284
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
CLASS B-1 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-1 Principal Balance 2,090,529.48
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 12,212.18
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,212.18
Class B-1 Interest Paid 12,212.18
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 2,090,529.48
Class B-1 Percentage 3.00%
Base Principal Amount 1,768,289.85
Class B-1 Base Principal Distribution Amount 53,048.70
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 53,048.70
---------
Class B-1 Principal Paid 53,048.70
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 2,037,480.78
</TABLE>
Page 2
<PAGE> 285
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
CLASS B-2 INTEREST SCHEDULE
<TABLE>
<S> <C>
Prior Month Class B-2 Principal Balance 1,742,108.07
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 11,933.44
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 11,933.44
Class B-2 Interest Paid 11,933.44
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,742,108.07
Class B-2 Percentage 2.50%
Base Principal Amount 1,768,289.85
Class B-2 Base Principal Distribution Amount 44,207.25
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 44,207.25
Class B-2 Principal Paid 44,207.25
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,697,900.82
</TABLE>
Page 3
<PAGE> 286
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
SERVICING FEE SCHEDULE
<TABLE>
<S> <C>
Prior Month ADCPB 69,685,152
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 29,035.48
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 29,035.48
Servicer Fee Paid 29,035.48
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 69,685,152
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 1,161.42
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 1,161.42
Back-Up Servicer Fee Paid 1,161.42
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 61,322,206.83
Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 12,264.00
Premium Amount Paid 12,264.00
Current Premium Arrearage 0.00
</TABLE>
Page 4
<PAGE> 287
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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> 288
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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,
Certificatesholders, 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> 289
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
GROSS CHARGE-OFFS (GREATER THAN OR EQUAL TO 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 197,633 197,633 0 68,174,809 0.00%
1 month prior 148,823 148,823 0 69,685,152 0.00%
Current 100,318 100,318 0 68,171,653 0.00%
Gross Charge-Off Ratio: 0.00%
Maximum Charge-Off Ratio: 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,603,856 68,174,809 3.82%
1 month prior 3,174,555 69,685,152 4.56%
Current month 3,703,888 68,171,653 5.43%
Delinquency Ratio: 4.60%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 7
<PAGE> 290
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
ISSUER RESTRICTING EVENT CALCULATIONS
(a) Gross Defaults (Greater Than Or Equal To 180) No
-----------
(b) Issuer Delinquency Trigger Ratio No
-----------
GROSS DEFAULTS (GREATER THAN OR EQUAL TO 180)
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Charge-Offs
-------------- ----- -----------
<S> <C> <C> <C>
Current 44,449 68,171,653 0.07%
i A Subordinated Percentage 9.00%
B WAL of Remaining Leases 2.13
ii Two
Ratio (i/ii) 2.11%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 329,771 68,174,809 0.48%
1 month prior 197,725 69,685,152 0.28%
Current month 251,465 68,171,653 0.37%
Issuer Delinquency Trigger Ratio: 0.38%
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> 291
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
% of
ADCPB Total
<S> <C> <C>
Current 64,467,765 94.57%
31-60 Days Past Due 2,542,794 3.73%
61-90 Days Past Due 909,628 1.33%
91+ Days Past Due 251,465 0.37%
------------- ------
Total 68,171,653 100.00%
Certificate Factors
Class A Notes 0.942958155
Class B-1 Notes 0.942958146
Class B-2 Notes 0.942958154
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 4,068,717.90
Current month ADCPB prepaid 205,711.34
-------------
Cumulative ADCPB prepaid 4,274,429.24
Prior month Cumulative ADCPB Defaulted 1,424,229.73
Current month ADCPB Defaulted 41,599.77
-------------
Cumulative ADCPB Defaulted 1,465,829.49
</TABLE>
Page 9
<PAGE> 292
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 371,836.63
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (141,976.99)
Transfer of prior period Excluded Amounts not yet transferred (44,286.48)
Collections Received [5.02 (b)(d)] 2,332,203.00
Excluded Amounts [5.02 (d)][Definition] (1,023,753.35)
Collections on Deposit due Collection Account [5.02 (d)] (980,481.05)
Ending Balance @ 12/1/97 513,541.76
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
BEGINNING BALANCE @ 11/1/97 1,583,972.04
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 11/1/97
Add: Servicer Advance 1,046,858.05
Add: Payments due Collection Account from last 2 business days prior period 141,976.99
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 11/10/97 (2,772,807.08)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED 12/1/97
Aggregate Amount of Actual Payments [6.01 b (i)] 917,849.39
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)] 2,714.98
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncollectible [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending Balance @ 11/30/97 and 12/1/97 920,564.37
Add: Servicer Advances to be deposited on Determination Date 897,080.81
Add: Payments due Collection Acct from last 3 business days 256,140.09
Add: Payments not yet transferred to the Collection Account 0.00
Add: Amounts to Collection Account from Security Deposit Account [6.02 c] 0.00
Adjusted Collection Account Balance 2,073,785.27
</TABLE>
Page 10
<PAGE> 293
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
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 @ 11/30/97 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 @ 11/30/97 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> 294
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING 12/1/97
<TABLE>
<S> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,073,785.27
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 0.00
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Servicing Fees 29,035.48
(v) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 1,161.42
(vi) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 12,264.00
(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)] 321,430.57
(ix) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 12,212.18
(x) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 11,933.44
(xi) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,556,095.07
(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)] 53,048.70
provided no restricting event exists
(xiv) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)] 44,207.25
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)] 32,105.50
</TABLE>
Reviewed By:
--------------------------------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 12
