<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
September 1, 1998
FIRST SIERRA RECEIVABLES II, INC.
(exact name of Registrant as specified in its charter)
Delaware 33-988288 76-0543174
- ------------------------------- ---------------- ------------------
(State or Other Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
Suite 7050
600 Travis Street
Houston, TX 77002
- -------------------------------- ----------
(Address of Principal Executive) (Zip Code)
Registrant's telephone number, including area code: 713-221-8822
<PAGE> 2
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
formed solely for the purpose of acquiring from First Sierra Financial, Inc.
certain leases (the "Leases") and interests in equipment underlying the leases
(together the "Receivables") and securitizing the Receivables through the
issuance of Certificates. As a bankruptcy remote entity, the Registrant's
operations are restricted so that (a) it does not engage in business with, or
incur liabilities to, any other entity which may bring bankruptcy proceedings
against the Registrant and (b) the risk is diminished that it will be
consolidated into the bankruptcy proceedings of any other entity. The
Registrant has no other assets except the Receivables and proceeds thereof.
Item 2. Acquisition or Disposition of Assets
None
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
1.1 Servicing Reports for the collection periods ending in September
1, 1998.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
First Sierra Receivables II, Inc.
By: /s/ E. R. Gebhart
-----------------------------
Name: E. R. Gebhart
Title: Vice President
2
<PAGE> 4
INDEX TO EXHIBITS
1.1 Servicing Reports for the collection periods ending in September 1,
1998.
<PAGE> 1
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
- -------------
Initial ADCPB 85,790,915.00
Prior Month ADCPB 48,113,942.26
Current Month ADCPB (Before addition of New Property) 46,150,148.08
Base Principal Amount (Prior - Current) 1,963,794.18
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 46,150,148.08
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 41,272,003.33
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 235,594.35
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 235,594.35
Class A Interest Paid 235,594.35
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 41,272,003.33
Class A Percentage 86.00%
Base Principal Amount 1,963,794.18
-------------
Class A Base Principal Distribution Amount 1,688,862.99
Prior Month Class A Overdue Principal 0.00
-------------
Total A Note Principal Due 1,688,862.99
Additional amount due for floor payment 3,127.10
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,691,990.09
Class A Overdue Principal 0.00
Current Month Class A Principal Balance 39,580,013.25
</TABLE>
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
Prior Month Class B-1 Principal Balance 1,919,628.45
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 12,205.64
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 12,205.64
Class B-1 Interest Paid 12,205.64
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 1,919,628.45
Class B-1 Percentage 4.00%
Base Principal Amount 1,963,794.18
Class B-1 Base Principal Distribution Amount 78,551.77
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 145.45
------------
Total B-1 Note Principal Due 78,697.22
Class B-1 Principal Paid 78,697.22
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,840,931.24
</TABLE>
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
Prior Month Class B-2 Principal Balance 1,919,628.45
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 13,069.47
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 13,069.47
Class B-2 Interest Paid 13,069.47
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,919,628.45
Class B-2 Percentage 4.00%
Base Principal Amount 1,963,794.18
Class B-2 Base Principal Distribution Amount 78,551.77
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 145.45
------------
Total B-1 Note Principal Due 78,697.22
Class B-2 Principal Paid 78,697.22
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,840,931.24
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C> <C>
FLOOR TEST
Initial ADCPB 85,790,915.00
Floor percent 3.50%
-------------
Floor 3,002,682.03
Ending ADCPB 46,150,148.08
less
Beginning Balance - Class A 41,272,003
Beginning Balance - Class B1 1,919,628
Beginning Balance - Class B2 1,919,628
----------
45,111,260
less
Current Month Payment - Class A 1,688,863
Current Month Payment - Class B1 78,552
Current Month Payment - Class B2 78,552
----------
1,845,967 43,265,293.71
Excess of ending ADCPB over Note balance after initial
payments 2,884,854.38
Excess (deficit) of excess balance over floor (117,827.65)
Cash available after payment of regular payments 3,417.99
-------------
Additional payment to certificate holders 3,417.99
ADJUSTED FLOOR TEST
Ending ADCPB 46,150,148.08
less
Beginning Balance - Class A 41,272,003
Beginning Balance - Class B1 1,919,628
Beginning Balance - Class B2 1,919,628
----------
45,111,260
less
Current Month Payment - Class A 1,691,990
Current Month Payment - Class B1 78,697
Current Month Payment - Class B2 78,697
---------
1,849,385 43,261,875.72
Excess of ending ADCPB over Note balance after initial
payments 2,888,272.37
Excess (deficit) of excess balance over floor (114,409.66)
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
- ----------------------
Prior Month ADCPB 48,113,942
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 20,047.48
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 20,047.48
Servicer Fee Paid 20,047.48
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 48,113,942
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 521.23
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 521.23
Back-Up Servicer Fee Paid 521.23
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 41,272,003.33
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 8,598.00
Premium Amount Paid 8,598.00
Current Premium Arrearage 0.00
</TABLE>
Page 5
<PAGE> 6
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
Early Amortization Events
- -------------------------
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice specifying
such default or breach and requiring it to be remedied and stating that
such notice is a "Notice of default" hereunder, or it, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
or if, in any such case, the Depositor have consented in writing that any
such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 6
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
RESTRICTING EVENT CALCULATIONS NO
- ------------------------------
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
- ------------------------------
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a) (ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to occur
of (x) the date on which written notice of such failure or breach,
requiring the situation giving rise to such failure or breach to be
remedied, shall have been given to a Servicing Officer of the Servicer
or a Responsible Officer of the Trustee by the Depositor or any Holder
of Certificates or (y) the date on which any Servicing Officer or
Responsible Officer of the Trustee first knows, or reasonably should
have known, of such failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its inability
to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying
its debts as they come due or the Servicer shall make a general
assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now defined hereafter in effect) or an answer
admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any court of competent jurisdiction appointing, without
the consent (express or legally implied) of the Servicer, a custodian,
receiver, trustee or liquidator (or other similar official) of the
Servicer, or any substantial part of its property, or sequestering any
substantial part of its property, and any such order, judgement or decree
or appointment or sequestration shall remain in force undismissed,
unstayed or unvacated for a period of [90] days after the date of entry
thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such jurisdiction,
custody or control shall remain in force unrelinquished, unstayed or
unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 1
<PAGE> 8
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<CAPTION>
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
- -----------------------------------------------------------
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C>
2 months prior 222,943 151,284 71,659 49,962,053 1.72%
1 month prior 86,049 84,906 1,143 48,113,942 0.03%
Current 120,372 158,319 (37,948) 46,276,297 -0.98%
3 Month Gross Charge-Off Ratio 0.26%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
- -----------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 2,638,327 49,962,053 5.28%
1 month prior 2,495,894 48,113,942 5.19%
Current month 2,546,268 46,276,297 5.50%
Delinquency Ratio: 5.32%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 2
<PAGE> 9
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
- -------------------------------------
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
- ----------------------
<TABLE>
<CAPTION>
Monthly Gross Monthly
Defaults ADCPB Gross Defaults
-------- ----- --------------
<S> <C> <C> <C>
Current month 0 46,276,297 0.0000%
1 month prior 0 48,113,942 0.0000%
2 months prior 0 49,962,053 0.0000%
Sum/Average 0 48,117,431 0.0000%
4
-------
Gross Defaults 0.00%
i A Subordinated Percentage 10.25%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 3.00%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 190,553 49,962,053 0.38%
1 month prior 574,534 48,113,942 1.19%
Current month 708,758 46,276,297 1.53%
Issuer Delinquency Trigger Ratio: 1.04%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
- ------------------------
(1) Is Subordination Level < 14% No
--------------
(2) Has a Gross Charge-Off Event Occurred? No
--------------
(3) Has a Delinquency Event Occurred? No
--------------
Page 3
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
Aging/Delinquency Statistics
----------------------------
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 43,730,029 94.50%
31-60 Days Past Due 1,481,850 3.20%
61-90 Days Past Due 355,660 0.77%
91+ Days Past Due 708,758 1.53%
---------- ------
Total 46,276,297 100.00%
Certificate Factors
-------------------
Class A Notes 0.536458565
Class B-1 Notes 0.536458616
Class B-2 Notes 0.536458616
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 10,369,824.61
Current month ADCPB prepaid 186,689.00
-------------
Cumulative ADCPB prepaid 10,556,513.61
Prior month Cumulative ADCPB Defaulted 5,009,130.83
Current month ADCPB Defaulted 120,371.76
-------------
Cumulative ADCPB Defaulted 5,129,502.59
</TABLE>
Page 1
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 124,075.56
- --------------------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection (105,668.06)
Transfer of prior period Excluded Amounts not yet transferred (46,186.64)
Collections Received [5.02 (b)(d)] 2,231,419.09
Excluded Amounts [5.02 (d)][Definition] (737,927.14)
Collections on Deposit due Collection Account [5.02 (d)] (1,232,536.07)
Ending Balance 233,176.74
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE, AUGUST 1, 1998 1,428,476.08
---------------------------------
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED AUGUST 1, 1998
------------------------------------------------------------
Add: Servicer Advance 695,655.23
Add: Payments due Collection Account from last 2 business days prior period 279,508.72
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on August 10, 1998 (2,403,640.03)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED SEPTEMBER 1, 1998
---------------------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 1,232,536.07
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)] 3,343.18
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending balance on August 31, 1998 and September 1, 1998 1,235,879.25
Add: Servicer Advances to be deposited on Determination Date 539,424.18
Add: Payments due Collection Acct from last 3 business days 364,408.93
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 2,139,712.36
</TABLE>
Page 1
<PAGE> 12
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C> <C>
SECURITY DEPOSIT ACCOUNT
- ------------------------
Beginning Balance 141,284.73
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 655.28
----------
Ending balance on August 31, 1998 141,940.01
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 141,940.01
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending balance on August 31, 1998 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 2
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,139,712.36
- ---------------------------------------
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 20,047.48
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 521.23
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 8,598.00
(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)] 235,594.35
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 12,205.64
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 13,069.47
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,688,862.99
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class
B-1 Principal [6.06 c (xii)] 78,551.77 provided no restricting
event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class
B-2 Principal [6.06 c (xiii)] 78,551.77 provided no restricting
event or issuer restricting event exists
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)] 0.00
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)]
Net of Additional Principal Distribution to Class A, B1 & B2. 0.00
a. Class A Additional Principal Distribution Amount 3,127.10
b. Class B1 Additional Principal Distribution Amount 145.45
c. Class B2 Additional Principal Distribution Amount 145.45
</TABLE>
Reviewed By:
-----------------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 3
<PAGE> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
ADCPB BALANCE
- -------------
Initial ADCPB 72,024,925.77
Prior Month ADCPB 52,636,156.78
Current Month ADCPB (Before addition of New Property) 50,560,257.87
Base Principal Amount (Prior - Current) 2,075,898.91
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 50,560,257.87
CLASS A INTEREST SCHEDULE
- -------------------------
Prior Month Class A Principal Balance 46,319,091.30
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 242,789.24
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 242,789.24
Class A Interest Paid 242,789.24
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
- --------------------------
Prior Month Class A Principal Balance 46,319,091.30
Class A Percentage 88.00%
Base Principal Amount 2,075,898.91
Class A Base Principal Distribution Amount 1,826,791.04
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,826,791.04
Class A Principal Paid 1,826,791.04
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 44,492,300.26
</TABLE>
Page 1
<PAGE> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
- ---------------------------
Prior Month Class B-1 Principal Balance 1,579,059.62
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 9,224.34
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 9,224.34
Class B-1 Interest Paid 9,224.34
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-1 Principal Balance 1,579,059.62
Class B-1 Percentage 3.00%
Base Principal Amount 2,075,898.91
Class B-1 Base Principal Distribution Amount 62,276.97
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 62,276.97
------------
Class B-1 Principal Paid 62,276.97
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,516,782.65
</TABLE>
Page 2
<PAGE> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
- ---------------------------
Prior Month Class B-2 Principal Balance 1,315,883.19
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 9,013.80
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 9,013.80
Class B-2 Interest Paid 9,013.80
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
- ----------------------------
Prior Month Class B-2 Principal Balance 1,315,883.19
Class B-2 Percentage 2.50%
Base Principal Amount 2,075,898.91
Class B-2 Base Principal Distribution Amount 51,897.47
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 51,897.47
Class B-2 Principal Paid 51,897.47
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,263,985.72
</TABLE>
Page 3
<PAGE> 17
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C> <C>
FLOOR TEST
Initial ADCPB 72,024,925.77
Floor percent 3.00%
-------------
Floor 2,160,747.77
Ending ADCPB 50,560,257.87
less
Beginning Balance - Class A 46,319,091
Beginning Balance - Class B1 1,579,060
Beginning Balance - Class B2 1,315,883
----------
49,214,034
less
Current Month Payment - Class A 1,826,791
Current Month Payment - Class B1 62,277
Current Month Payment - Class B2 51,897
----------
1,940,965 47,273,068.63
Excess of ending ADCPB over Note balance after initial payments 3,287,189.24
Excess (deficit) of excess balance over floor 1,126,441.47
ADJUSTED FLOOR TEST
Ending ADCPB 50,560,257.87
less
Beginning Balance - Class A 46,319,091
Beginning Balance - Class B1 1,579,060
Beginning Balance - Class B2 1,315,883
----------
49,214,034
less
Current Month Payment - Class A 1,826,791
Current Month Payment - Class B1 62,277
Current Month Payment - Class B2 51,897
----------
1,940,965 47,273,068.63
Excess of ending ADCPB over Note balance after initial payments 3,287,189.24
Excess (deficit) of excess balance over floor 1,126,441.47
</TABLE>
Page 4
<PAGE> 18
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
- ----------------------
Prior Month ADCPB 52,636,157
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 21,931.73
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 21,931.73
Servicer Fee Paid 21,931.73
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
- ------------------------------
Prior Month ADCPB 52,636,157
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 877.27
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 877.27
Back-Up Servicer Fee Paid 877.27
Current Back-Up Servicing Fee Arrearage 0.00
TRUSTEE FEE SCHEDULE
- --------------------
Trustee Fee 291.67
Trustee Fee Rate 0.0100%
Prior Trustee Fee Arrearage 0.00
Total Trustee Fee Due 291.67
Trustee Fee Paid 291.67
Current Trustee Fee Arrearage 0.00
CERTIFICATE PREMIUM SCHEDULE
- ----------------------------
Class A Certificate Principal Balance 46,319,091.30
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 9,264.00
Premium Amount Paid 9,264.00
Current Premium Arrearage 0.00
</TABLE>
Page 5
<PAGE> 19
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
Early Amortization Events
- -------------------------
(a) Default in the payment to the Class A Certificateholders or the Class B
Certificateholders of any interest or principal due hereunder in
accordance with the provisions of Section 6.06 when such payment becomes
due and payable and continuance of such default for a period of five
business days; or [10.01 (a)]
(b) Default in the performance, or breach, of the any covenant or agreement of
the Depositor in this Agreement (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this section
10.01 specifically dealt with), and continuance of such default or breach
for a period of 30 days after there has been given, by registered or
certified mail, to the Depositor by the Service, the Certificate Insurer
or the Trustee, or to the Depositor, the Certificate Insurer and the
Trustee by the Certificateholders of at least 50% in aggregate principal
amount of the outstanding Class A Certificates a written notice specifying
such default or breach and requiring it to be remedied and stating that
such notice is a "Notice of default" hereunder, or it, in any such case,
the Depositor have consented in writing that any such event shall be an
Early Amortization Event; or [10.01 (b)]
(c) Any proceeding shall be instituted against the Depositor (or, if the
Depositor is actively contesting the merits thereof, such proceeding is not
dismissed within 90 days) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or any of its
Indebtedness under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property, or any
of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or [10.01 (c)]
(d) The commencement by the Depositor of a voluntary case or proceeding under
any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Depositor in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or to the consent by it to the
filing of such petition or to the appointment or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Depositor or of any substantial part of its
property, or the making by it of an assignment for the benefit of
creditors, or the making by it of an admission by it in writing of its
inability to pay its Debts generally as they become due, or the taking of
corporate action by the Depositor in furtherance of any such action; or
[10.01 (d)]
(e) Judgments or orders in respect of money (other than such judgements or
orders in respect of which adequate insurance is maintained for the
payment thereof) against the Depositor shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days or
more; or [10.01 (e)]
(f) There is a material breach of any of the representations and warranties of
the Depositor set forth in Section 3.01 (a) and continuance of such
default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Depositor by the Servicer, the
Certificate Insurer or the Trustee, or to the Depositor, the Certificate
Insurer and the Trustee by the Certificateholders of at least 50% in
aggregate principal amount of the outstanding Class A Certificates a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder,
or if, in any such case, the Depositor have consented in writing that any
such event shall be an Early Amortization Event; or [10.01 (f)]
(g) The Trust Certificate Percentage Interest is less than the Subordinated
Amount; or [10.01 (g)]
(h) A Gross Charge-Off Event has occurred and is continuing; or [10.01 (h)]
(i) A Delinquency Trigger Event has occurred and is continuing; or
(j) An Event of Servicing Termination has been declared; or [10.01 (j)]
(k) The Certificate Insurer has made an insured Payment under the policy.
[10.01 (k)]
Page 6
<PAGE> 20
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
RESTRICTING EVENT CALCULATIONS
- ------------------------------
(a) Event of Servicer Termination (Yes/No) No
-------------
(b) Certificate Insurer makes an Insured Payment No
-------------
(a) Gross Charge-Off Event (Yes/No) No
-------------
(b) Delinquency Trigger Event No
-------------
Events of Servicer Termination
- ------------------------------
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a) (ii) hereof) on the date of such payment, deposit, transfer or
delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written notification
to the Servicer of such failure or (B) the Depositor becomes aware that
the Certificate Insurer and the Certificateholders have not received a
copy of the Monthly Report in accordance with the provisions hereof
(provided that the Servicer shall be granted a two business day grace
period on not more than one occasion during each Collection Period);
[11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier to occur
of (x) the date on which written notice of such failure or breach,
requiring the situation giving rise to such failure or breach to be
remedied, shall have been given to a Servicing Officer of the Servicer
or a Responsible Officer of the Trustee by the Depositor or any Holder
of Certificates or (y) the date on which any Servicing Officer or
Responsible Officer of the Trustee first knows, or reasonably should
have known, of such failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against the
Servicer shall, by voluntary petition, answer or consent, seek relief
under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered in
any proceeding by any court of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property, or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days after
the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any of any law providing
for reorganization or winding up of debtors which may apply to the
Servicer, or any substantial part of its property, and such
jurisdiction, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt to
make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 1
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
GROSS CHARGE-OFFS (>=160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Gross Monthly
Defaults Recoveries Charge-Offs ADCPB Charge-Offs
-------- ---------- ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
2 months prior 165,029 171,422 (6,394) 54,740,820 -0.14%
1 month prior 182,384 85,541 96,843 52,636,157 2.21%
Current 130,568 105,393 25,175 50,720,085 0.60%
3 Month Gross Charge-Off Ratio 0.89%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
- -----------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 1,952,407 54,740,820 3.57%
1 month prior 2,899,921 52,636,157 5.51%
Current month 2,781,825 50,720,085 5.48%
Delinquency Ratio: 4.85%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 2
<PAGE> 22
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
ISSUER RESTRICTING EVENT CALCULATIONS
- -------------------------------------
(a) Gross Defaults (>=180) No
-------------
(b) Issuer Delinquency Trigger Ratio No
-------------
GROSS DEFAULTS (>=180)
- ----------------------
<TABLE>
<CAPTION>
Monthly
Gross Defaults ADCPB Gross Defaults
-------------- ----- --------------
<S> <C> <C> <C>
Current 0 50,720,085 0.0000%
1 month prior 0 52,636,157 0.0000%
2 months prior 0 54,740,820 0.0000%
-- ---------- ------
Sum/Average 0 52,699,020 0.0000%
4
------
Gross Defaults 0.00%
i A Subordinated Percentage 9.00%
ii B WAL of Remaining Leases 2.08
Two 2.00
Ratio (i/ii)/2 2.17%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
- -------------------------------------------
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 549,827 54,740,820 1.00%
1 month prior 272,728 52,636,157 0.52%
Current month 260,441 50,720,085 0.51%
Issuer Delinquency Trigger Ratio: 0.68%
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 3
<PAGE> 23
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
----------------------------
ADCPB Total
<S> <C> <C>
Current 47,938,259 94.52%
31-60 Days Past Due 1,277,498 2.52%
61-90 Days Past Due 1,243,886 2.45%
91+ Days Past Due 260,441 0.51%
---------- ------
Total 50,720,085 100.00%
Certificate Factors
-------------------
Class A Notes 0.701976022
Class B-1 Notes 0.701975973
Class B-2 Notes 0.701976007
Substitution Limits [Section 7]
-------------------------------
ADCPB as of Cut-Off Date 72,024,925.77
Maximum Substitution (10% of Initial) 7,202,492.58
Maximum Substitution for Defaulted Contracts (5% of Initial) 3,601,246.29
Prior month Cumulative ADCPB Substituted 3,234,855.86
Current month ADCPB Substituted -
-
------------
Cumulative ADCPB Substituted 3,234,855.86
Prior month Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
Current month ADCPB Substituted Defaulted Contracts -
------------
Cumulative ADCPB Substituted for Defaulted Contracts 1,320,928.59
Portfolio Prepayment Statistics
-------------------------------
Prior month Cumulative ADCPB prepaid 6,902,980.15
Current month ADCPB prepaid 506,834.80
------------
Cumulative ADCPB prepaid 7,409,814.95
Prior month Cumulative ADCPB Defaulted 2,541,571.85
Current month ADCPB Defaulted 130,567.76
------------
Cumulative ADCPB Defaulted 2,672,139.61
</TABLE>
Page 1
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 124,165.83
- --------------------------
LOCKBOX ACCOUNT
- ---------------
Transfer of prior period Payments not yet transferred to Collection Account (333,015.54)
Transfer of prior period Excluded Amounts not yet transferred (44,771.29)
Collections Received [5.02 (b)(d)] 2,548,317.88
Excluded Amounts [5.02 (d)][Definition] (862,090.28)
Collections on Deposit due Collection Account [5.02 (d)] (1,289,136.15)
Ending Balance 143,470.45
COLLECTION ACCOUNT
- ------------------
BEGINNING BALANCE, AUGUST 1, 1998 1,100,471.98
---------------------------------
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED AUGUST 1, 1998
------------------------------------------------------------
Add: Servicer Advance 871,867.13
Add: Payments due Collection Account from last 2 business days prior period 331,212.48
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on August 10, 1998 (2,303,551.59)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED SEPTEMBER 1, 1998
---------------------------------------------------------------
Aggregate Amount of Actual Payments [6.01 b (i)] 1,289,136.15
Add: Servicer Advances [5.03][6.01 b (ii)] 0.00
Add: Sch. Payments, Final Payments or Purchase Option from Sec. Deposit Acc [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)] 3,289.95
Add: Deposits from New Transferred Property Funding Account [6.01 b (vi)] 0.00
Add: Amount Payable to Class A Certificateholders under 6.04 d [6.01 b(vii)] 0.00
Add: Advance Payments Due and Owing for Collection Period [6.01 c] 0.00
Add: Security Deposits Related to Prepayment 0.00
Add: Offset Amount as Provided by 5.12 [6.01 c] 0.00
Less: Amounts transferred to the New Transferred Property Funding Account [6.01 d] 0.00
Less: Amounts Servicer Advanced but deems uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending balance on August 31, 1998 and September 1, 1998 1,292,426.10
Add: Servicer Advances to be deposited on Determination Date 619,291.19
Add: Payments due Collection Acct from last 3 business days 339,259.46
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 2,250,976.75
</TABLE>
Page 1
<PAGE> 25
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<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 on August 31, 1998 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
- ----------------------------------------
Beginning Balance 0.00
-----------------
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending balance on August 31, 1998 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 2
<PAGE> 26
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING SEPTEMBER 1, 1998
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 2,250,976.75
- ---------------------------------------
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 21,931.73
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 877.27
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 9,264.00
(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)] 242,789.24
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 9,224.34
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 9,013.80
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,826,791.04
(xi) Certificate Insurer Reimbursement Amount, if any, due on Payment Date [6.06 b (xi)] 0.00
(xii) Class B-1 Base Principal Distribution Amount and Overdue Class B-1 Principal [6.06 c (xii)]
provided no restricting event exists 62,276.97
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06 c (xiii)]
provided no restricting event or issuer restricting event exists 51,897.47
(xiv) Any amounts due Servicer under 9.03 [6.06 b (xiv)] 0.00
(xv) Prepayments optionally transferred to collection account and disbursed in
consideration of the transfer of New Transferred Property not in excess of
$5,000,000 [6.06 c (xv)] 0.00
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 16,619.22
</TABLE>
Reviewed By:
---------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
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