<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Data of earliest event reported)
August 1, 1999
FIRST SIERRA RECEIVABLES II, INC.
---------------------------------
(exact name of Registrant as specified in its charter)
Delaware 333-12199-01 76-0589331
- ------------------------------- ---------------- -------------------
(State or Other Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
Suite 7050
600 Travis Street
Houston, TX 77002
----------- -----
(Address of Principal Executive) (Zip Code)
Registrant's telephone number, including area code: 713-221-8822
<PAGE> 2
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
formed solely for the purpose of acquiring from First Sierra Financial, Inc.
certain leases (the "Leases") and interests in equipment underlying the leases
(together the "Receivables") and securitizing the Receivables through the
issuance of Certificates. As a bankruptcy remote entity, the Registrant's
operations are restricted so that (a) it does not engage in business with, or
incur liabilities to, any other entity which may bring bankruptcy proceedings
against the Registrant and 9b) the risk is diminished that it will be
consolidated into the bankruptcy proceedings of any other entity. The Registrant
has no other assets except the Receivables and proceeds thereof.
Item 2. Acquisition or Disposition of Assets
None
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
1.1 Servicing Reports for the collection periods ending in August 1,
1999.
<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
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
1.1 Servicing Reports for the collection periods ending in August 1,
1999.
</TABLE>
<PAGE> 1
EXHIBIT 1.1
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 85,790,915.00
Prior Month ADCPB 29,981,078.28
Current Month ADCPB (Before addition of New Property) 28,558,434.11
Base Principal Amount (Prior - Current) 1,422,644.17
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 28,558,434.11
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 24,799,471.36
Class A Certificate Rate 6.85%
One twelfth of Class A Certificate Rate 0.57%
Class A Certificate Interest 141,563.65
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 141,563.65
Class A Interest Paid 141,563.65
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 24,799,471.36
Class A Percentage 86.00%
Base Principal Amount 1,422,644.17
-------------
Class A Base Principal Distribution Amount 1,223,473.99
Prior Month Class A Overdue Principal 0.00
-------------
Total A Note Principal Due 1,223,473.99
Additional amount due for floor payment 98,679.51
Additional Class A Principal Due 0.00
-------------
Class A Principal Paid 1,322,153.50
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 23,477,317.86
</TABLE>
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,153,464.17
Class B-1 Certificate Rate 7.63%
One twelfth of Class B-1 Certificate Rate 0.64%
Class B-1 Certificate Interest 7,334.11
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 7,334.11
Class B-1 Interest Paid 7,334.11
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,153,464.17
Class B-1 Percentage 4.00%
Base Principal Amount 1,422,644.17
Class B-1 Base Principal Distribution Amount 56,905.77
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 4,589.74
------------
Total B-1 Note Principal Due 61,495.51
Class B-1 Principal Paid 61,495.51
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,091,968.66
</TABLE>
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 1,153,464.17
Class B-2 Certificate Rate 8.17%
One twelfth of Class B-2 Certificate Rate 0.68%
Class B-2 Certificate Interest 7,853.17
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 7,853.17
Class B-2 Interest Paid 7,853.17
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 1,153,464.17
Class B-2 Percentage 4.00%
Base Principal Amount 1,422,644.17
Class B-2 Base Principal Distribution Amount 56,905.77
Prior Month B-1 Overdue Principal 0.00
Additional amount due for floor payment 4,589.74
------------
Total B-1 Note Principal Due 61,495.51
Class B-2 Principal Paid 61,495.51
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 1,091,968.66
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C> <C>
FLOOR TEST
Initial ADCPB 85,790,915.00
Floor percent 3.50%
-------------
Floor 3,002,682.03
Ending ADCPB 28,558,434.11
less
Beginning Balance - Class A 24,799,471
Beginning Balance - Class B1 1,153,464
Beginning Balance - Class B2 1,153,464
----------
27,106,400
less
Current Month Payment - Class A 1,223,474
Current Month Payment - Class B1 56,906
Current Month Payment - Class B2 56,906
----------
1,337,286 25,769,114.18
Excess of ending ADCPB over Note balance after initial payments 2,789,319.93
Excess (deficit) of excess balance over floor (213,362.09)
Cash available after payment of regular payments 107,859.00
-------------
Additional payment to certificate holders 107,859.00
ADJUSTED FLOOR TEST
Ending ADCPB 28,558,434.11
less
Beginning Balance - Class A 24,799,471
Beginning Balance - Class B1 1,153,464
Beginning Balance - Class B2 1,153,464
----------
27,106,400
less
Current Month Payment - Class A 1,322,154
Current Month Payment - Class B1 61,496
Current Month Payment - Class B2 61,496
----------
1,445,145 25,661,255.18
Excess of ending ADCPB over Note balance after initial payments 2,897,178.93
Excess (deficit) of excess balance over floor (105,503.09)
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 29,981,078
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 12,492.12
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 12,492.12
Servicer Fee Paid 12,492.12
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 29,981,078
Back-Up Servicer Fee Rate 0.0130%
One-twelfth 0.0011%
Back-up Servicer Fee 324.80
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 324.80
Back-Up Servicer Fee Paid 324.80
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 24,799,471.36
Monthly Premium Rate 0.0208%
Prior Premium Arrearage 0.00
Premium Amount Due 5,167.00
Premium Amount Paid 5,167.00
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 AUGUST 1, 1999
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 6
<PAGE> 7
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
NO
(a) Event of Servicer Termination (Yes/No) No
------------
(b) Certificate Insurer makes an Insured Payment No
------------
(a) Gross Charge-Off Event (Yes/No) No
------------
(b) Delinquency Trigger Event No
------------
Events of Servicer Termination
(i) Any failure by the Servicer to make any payment, deposit, transfer or
delivery required to be made hereunder (other than with respect to the
Monthly Servicer Report, As to which the remedy is set forth in section
11.01 (a)(ii) hereof) on the date of such payment, deposit, transfer
or delivery is required to be made; [11.01 (a)(i)]
(ii) Any failure by the Servicer to submit a Monthly Statement pursuant to
Section 6.07 hereof that continues unremedied for a period of three
business days after the earlier of the date upon which (A) the
Certificate Insurer or a Certificateholder provides written
notification to the Servicer of such failure or (B) the Depositor
becomes aware that the Certificate Insurer and the Certificateholders
have not received a copy of the Monthly Report in accordance with the
provisions hereof (provided that the Servicer shall be granted a two
business day grace period on not more than one occasion during each
Collection Period); [11.01 (a)(ii)]
(iii) Any failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer
set forth in the Certificates or in this agreement, as in the case may
be, or any breach of representation or warranty of the Servicer set
forth in Section 3.02 of this Agreement, which failure or breach (A)
materially and adversely affects the rights of the Trustee,
Certificateholders, the Certificate Insurer or the Depositor and (B)
continues unremedied for a period of 30 days after the earlier
Activities related to Collection Period Ended 1/1/97 remedied, shall
have been given to a Servicing Officer of the Servicer or a Responsible
Officer of the Trustee by the Depositor or any Holder of Certificates
or (y) the date on which any Servicing Officer or Responsible Officer
of the Trustee first knows, or reasonably should have known, of such
failure or breach; [11.01 (a)(iii)]
(iv) The Servicer shall consent to the appointment on a custodian, receiver,
trustee or liquidator (or other similar official) of itself, or of a
substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of
competent jurisdiction shall determine that the Servicer is generally
not paying its debts as they come due or the Servicer shall make a
general assignment for the benefit of creditors; [11.01 (a)(iv)]
(v) The Servicer shall file a voluntary petition in bankruptcy or a
voluntary petition or an answer seeking reorganization in a proceeding
under any bankruptcy laws (as now defined hereafter in effect) or an
answer admitting the material allegation of a petition filed against
the Servicer shall, by voluntary petition, answer or consent, seek
relief under the bankruptcy or other similar law providing for the
reorganization or winding up of debtors, or providing for an agreement,
composition, extension or adjustment with its creditors; [11.01 (a)(v)]
(vi) An order, judgment or decree in excess of [$500,000] shall be entered
in any proceeding by any court of competent jurisdiction appointing,
without the consent (express or legally implied) of the Servicer, a
custodian, receiver, trustee or liquidator (or other similar official)
of the Servicer, or any substantial part of its property, or
sequestering any substantial part of its property, and any such order,
judgement or decree or appointment or sequestration shall remain in
force undismissed, unstayed or unvacated for a period of [90] days
after the date of entry thereof; [11.01 (a)(vi)]
(vii) A petition against the Servicer in a proceeding under applicable
bankruptcy laws or the insolvency laws, as now or hereafter in effect,
shall be filed and shall not be stayed, withdrawn or dismissed within
60 days thereafter, or if, under the provisions of any of any law
providing for reorganization or winding up of debtors which may apply
to the Servicer, or any substantial part of its property, and such
jurisdiction, custody or control shall remain in force unrelinquished,
unstayed or unterminated for a period of 60 days; [11.01(a)(vii)]
(viii) Any assignment by the Servicer to a delegate of its duties or rights
hereunder, except as specifically permitted hereunder, or any attempt
to make such an assignment; or [11.01 (a)(viii)]
(ix) for so long as the Servicer is First Sierra, its Total Capital is less
than $9 million. [11.01 (a)(ix)]
Page 7
<PAGE> 8
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
GROSS CHARGE-OFFS (>160 AND ACCOUNTS BOUGHT BACK BY SOURCE)
<TABLE>
<CAPTION>
Gross
Gross Gross Charge-Off
Defaults Recoveries Charge-Offs ADCPB Ratio
-------- ---------- ----------- ----- -----
<S> <C> <C> <C> <C> <C>
2 months prior 267,823 234,109 33,714 31,608,306 1.28%
1 month prior 9,734 19,849 (10,115) 30,064,544 (0.40)%
Current 55,653 25,189 30,464 28,558,434 1.28%
3 Month Gross Charge-Off Ratio 0.72%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 1,488,883 31,608,306 4.71%
1 month prior 1,418,005 30,064,544 4.72%
Current month 1,171,626 28,558,434 4.10%
Delinquency Ratio: 4.51%
Maximum Delinquency Ratio: 6.00%
</TABLE>
Page 8
<PAGE> 9
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
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 28,558,434 0.0000%
1 month prior 0 30,064,544 0.0000%
2 months prior 0 31,608,306 0.0000%
- ---------- ------
Sum/Average 0 30,077,095 0.0000%
4
------
Gross Defaults 0.00%
i A Subordinated Percentage 13.97%
ii B WAL of Remaining Leases 1.71
Two 2
Ratio (i/ii)/2 4.09%
</TABLE>
ISSUER DELINQUENCY TRIGGER RATIO (90+ DAYS)
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ----- -------------
<S> <C> <C> <C>
2 months prior 234,399 31,608,306 0.74%
1 month prior 185,630 30,064,544 0.62%
Current month 197,211 28,558,434 0.69%
Issuer Delinquency Trigger Ratio: 0.68%
Maximum Ratio Allowed: 2.50%
</TABLE>
EARLY AMORTIZATION EVENT
(1) Is Subordination Level < 14% No
-------------
(2) Has a Gross Charge-Off Event Occurred? No
-------------
(3) Has a Delinquency Event Occurred? No
-------------
Page 9
<PAGE> 10
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<CAPTION>
Aging/Delinquency Statistics
ADCPB Total
----- -----
<S> <C> <C>
Current 27,386,808 95.90%
31-60 Days Past Due 631,362 2.21%
61-90 Days Past Due 343,053 1.20%
91+ Days Past Due 197,211 0.69%
------------- ------
Total 28,558,434 100.00%
Certificate Factors
Class A Notes 0.318206267
Class B-1 Notes 0.318206343
Class B-2 Notes 0.318206343
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 4,134,055.76
Current month ADCPB Substituted --
-------------
Cumulative ADCPB Substituted 4,134,055.76
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 12,369,378.95
Current month ADCPB prepaid 183,298.56
-------------
Cumulative ADCPB prepaid 12,552,677.51
Prior month Cumulative ADCPB Defaulted 5,580,647.73
Current month ADCPB Defaulted 55,652.74
-------------
Cumulative ADCPB Defaulted 5,636,300.47
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
BEGINNING ACCOUNT BALANCES 63,771.67
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (157,895.94)
Transfer of prior period Excluded Amounts not yet transferred (21,242.54)
Collections Received [5.02 (b)(d)] 1,698,620.83
Excluded Amounts [5.02 (d)][Definition] (503,421.80)
Collections on Deposit due Collection Account [5.02 (d)] (1,042,704.13)
Ending Balance 37,128.09
</TABLE>
COLLECTION ACCOUNT
<TABLE>
<S> <C>
BEGINNING BALANCE, JULY 1, 1999 1,076,956.44
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JULY 1, 1999
Add: Servicer Advance 407,699.47
Add: Payments due Collection Account from last 2 business days prior period 161,203.23
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on July 10, 1999 (1,645,859.14)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED AUGUST 1, 1999
Aggregate Amount of Actual Payments [6.01 b (i)] 1,042,704.13
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)] 2,899.93
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 July 31, 1999 and August 1, 1999 1,045,604.06
Add: Servicer Advances to be deposited on Determination Date 501,265.68
Add: Payments due Collection Acct from last 3 business days 73,301.31
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 1,620,171.05
</TABLE>
Page 11
<PAGE> 12
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 148,880.81
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 619.03
----------
Ending balance on July 31, 1999 149,499.84
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 149,499.84
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending balance on July 31, 1999 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 12
<PAGE> 13
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
Available Amount to Certificate Holders 1,620,171.05
</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 12,492.12
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 324.80
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 5,167.00
(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)] 141,563.65
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 7,334.11
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 7,853.17
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c (x)] 1,223,473.99
(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)] 56,905.77 provided no restricting
event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class
B-2 Principal [6.06 c (xiii)] 56,905.77 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 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
Net of Additional Principal Distribution to Class A, B1 & B2.
a. Class A Additional Principal Distribution Amount 98,679.51
b. Class B1 Additional Principal Distribution Amount 4,589.74
c. Class B2 Additional Principal Distribution Amount 4,589.74
</TABLE>
Reviewed By:
-------------------------------------------
E. ROGER GEBHART
SENIOR VICE PRESIDENT & TREASURER
Page 13
<PAGE> 14
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
ADCPB BALANCE
Initial ADCPB 72,024,925.77
Prior Month ADCPB 34,698,184.17
Current Month ADCPB (Before addition of New Property) 33,496,705.50
Base Principal Amount (Prior - Current) 1,201,478.67
Add: ADCPB of New Transferred Property 0.00
Ending ADCPB (Current + ADCPB of New Property) 33,496,705.50
CLASS A INTEREST SCHEDULE
Prior Month Class A Principal Balance 30,533,675.40
Class A Certificate Rate 6.29%
One twelfth of Class A Certificate Rate 0.52%
Class A Certificate Interest 160,047.35
Prior Month Class A Overdue Interest 0.00
Class A Interest Due 160,047.35
Class A Interest Paid 160,047.35
Current Month Class A Overdue Interest 0.00
CLASS A PRINCIPAL SCHEDULE
Prior Month Class A Principal Balance 30,533,675.40
Class A Percentage 88.00%
Base Principal Amount 1,201,478.67
Class A Base Principal Distribution Amount 1,057,301.23
Prior Month Class A Overdue Principal 0.00
Total A Note Principal Due 1,057,301.23
Class A Principal Paid 1,057,301.23
Class A Overdue Principal 0.00
-------------
Current Month Class A Principal Balance 29,476,374.17
</TABLE>
Page 1
<PAGE> 15
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
CLASS B-1 INTEREST SCHEDULE
Prior Month Class B-1 Principal Balance 1,040,920.45
Class B-1 Certificate Rate 7.01%
One twelfth of Class B-1 Certificate Rate 0.58%
Class B-1 Certificate Interest 6,080.71
Prior Month Class B-1 Overdue Interest 0.00
Class B-1 Interest Due 6,080.71
Class B-1 Interest Paid 6,080.71
Current Month Class B-1 Overdue Interest 0.00
CLASS B-1 PRINCIPAL SCHEDULE
Prior Month Class B-1 Principal Balance 1,040,920.45
Class B-1 Percentage 3.00%
Base Principal Amount 1,201,478.67
Class B-1 Base Principal Distribution Amount 36,044.36
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 36,044.36
------------
Class B-1 Principal Paid 36,044.36
Class B-1 Overdue Principal 0.00
Current Month Class B-1 Principal Balance 1,004,876.09
</TABLE>
Page 2
<PAGE> 16
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
CLASS B-2 INTEREST SCHEDULE
Prior Month Class B-2 Principal Balance 867,433.87
Class B-2 Certificate Rate 8.22%
One twelfth of Class B-2 Certificate Rate 0.69%
Class B-2 Certificate Interest 5,941.92
Prior Month Class B-2 Overdue Interest 0.00
Class B-2 Interest Due 5,941.92
Class B-2 Interest Paid 5,941.92
Current Month Class B-2 Overdue Interest 0.00
CLASS B-2 PRINCIPAL SCHEDULE
Prior Month Class B-2 Principal Balance 867,433.87
Class B-2 Percentage 2.50%
Base Principal Amount 1,201,478.67
Class B-2 Base Principal Distribution Amount 30,036.97
Prior Month B-1 Overdue Principal 0.00
Total B-1 Note Principal Due 30,036.97
Class B-2 Principal Paid 30,036.97
Class B-2 Overdue Principal 0.00
Current Month Class B-2 Principal Balance 837,396.90
</TABLE>
Page 3
<PAGE> 17
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
FLOOR TEST
Initial ADCPB 2,024,925.77
Floor percent 3.00%
------------
Floor 2,160,747.77
Ending ADCPB 3,496,705.50
less
Beginning Balance - Class A 30,533,675
Beginning Balance - Class B1 1,040,920
Beginning Balance - Class B2 867,434
----------
32,442,030
less
Current Month Payment - Class A 1,057,301
Current Month Payment - Class B1 36,044
Current Month Payment - Class B2 30,037
----------
1,123,383 31,318,647.16
Excess of ending ADCPB over Note balance after initial
payments 2,178,058.34
Excess (deficit) of excess balance over floor 17,310.57
ADJUSTED FLOOR TEST
Ending ADCPB 33,496,705.50
less
Beginning Balance - Class A 30,533,675
Beginning Balance - Class B1 1,040,920
Beginning Balance - Class B2 867,434
----------
32,442,030
less
Current Month Payment - Class A 1,057,301
Current Month Payment - Class B1 36,044
Current Month Payment - Class B2 30,037
----------
1,123,383 31,318,647.16
Excess of ending ADCPB over Note balance after initial
payment 2,178,058.34
Excess (deficit) of excess balance over floor 17,310.57
</TABLE>
Page 4
<PAGE> 18
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C>
SERVICING FEE SCHEDULE
Prior Month ADCPB 34,698,184
Servicer Fee Rate 0.5000%
One-twelfth 0.0417%
Servicer Fee 14,457.58
Prior Servicer Fee Arrearage 0.00
Servicer Fee Due 14,457.58
Servicer Fee Paid 14,457.58
Current Servicing Fee Arrearage 0.00
BACK-UP SERVICING FEE SCHEDULE
Prior Month ADCPB 34,698,184
Back-Up Servicer Fee Rate 0.0200%
One-twelfth 0.0017%
Back-up Servicer Fee 578.30
Prior Back-Up Servicer Fee Arrearage 0.00
Total Back-Up Servicer Fee Due 578.30
Back-Up Servicer Fee Paid 578.30
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 30,533,675.40
Monthly Premium Rate 0.0200%
Prior Premium Arrearage 0.00
Premium Amount Due 6,107.00
Premium Amount Paid 6,107.00
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 AUGUST 1, 1999
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 6
<PAGE> 20
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
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 7
<PAGE> 21
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
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 14,776 19,230 (4,454) 36,208,138 (0.15)%
1 month prior 83,249 84,174 (926) 34,813,079 (0.03)%
Current 50,356 75,048 (24,691) 33,496,706 (0.88)%
3 Month Gross Charge-Off Ratio (0.35)%
Maximum Allowed 2.50%
</TABLE>
30+ DELINQUENCIES
<TABLE>
<CAPTION>
Monthly
Delinquencies ADCPB Delinquencies
------------- ---------- -------------
<S> <C> <C> <C>
2 months prior 1,644,039 36,208,138 4.54%
1 month prior 1,294,917 34,813,079 3.72%
Current month 1,489,060 33,496,706 4.45%
Delinquency Ratio: 4.24%
Maximum Delinquency Ratio: 7.00%
</TABLE>
Page 8
<PAGE> 22
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
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 33,496,706 0.0000%
1 month prior 0 34,813,079 0.0000%
2 months prior 0 36,208,138 0.0000%
-- ----------- ------
Sum/Average 0 34,839,308 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 287,152 36,208,138 0.79%
1 month prior 139,676 34,813,079 0.40%
Current month 315,216 33,496,706 0.94%
Issuer Delinquency Trigger Ratio: 0.71%
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 9
<PAGE> 23
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
Aging/Delinquency Statistics
<TABLE>
<CAPTION>
ADCPB Total
<S> <C> <C>
Current 32,007,646 95.55%
31-60 Days Past Due 823,715 2.46%
61-90 Days Past Due 350,129 1.05%
91+ Days Past Due 315,216 0.94%
-------------- -----
Total 33,496,706 100.00%
Certificate Factors
Class A Notes 0.465062668
Class B-1 Notes 0.465062592
Class B-2 Notes 0.465062637
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) l3,601,246.29
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
Contacts 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 9,905,684.14
Current month ADCPB prepaid 165,544.21
-------------
Cumulative ADCPB prepaid 10,071,228.35
Prior month Cumulative ADCPB Defaulted 3,709,886.42
Current month ADCPB Defaulted 50,356.24
-------------
Cumulative ADCPB Defaulted 3,760,242.66
</TABLE>
Page 10
<PAGE> 24
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BEGINNING ACCOUNT BALANCES 80,234.02
LOCKBOX ACCOUNT
Transfer of prior period Payments not yet transferred to Collection Account (216,581.98)
Transfer of prior period Excluded Amounts not yet tranferred (55,301.30)
Collections Received [5.02 (b)(d)] 1,595,917.09
Excluded Amounts [5.02(d)][Definition] (513,207.66)
Collections on Deposit due Collection Account [5.02(d)] (825,068.05)
Ending Balance 65,992.12
COLLECTION ACCOUNT
BEGINNING BALANCE, JULY 1, 1999 749,033.15
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED JULY 1, 1999
Add: Servicer Advance 503,915.90
Add: Payments due Collection Account from last 2 business days prior period 273,644.56
Add: Add'l transfers 0.00
Add: Amounts to Collection Acct from Security deposit account 0.00
Less: Total distributions on July 10, 1999 (1,526,593.61)
ACTIVITIES RELATED TO COLLECTION PERIOD ENDED AUGUST 1, 1999
Aggregate Amount of Actual Payments [6.01 b (i)] 825,068.05
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)] 2,108.43
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 uncorrectable [6.01 d] 0.00
Less: Payments due Collection Acct. from last 2 business days in calendar mo. 0.00
Ending balance on July 31, 1999 and August 1, 1999 827,176.48
Add: Servicer Advances to be deposited on Determination Date 533,177.23
Add: Payments due Collection Acct from last 3 business days 125,364.70
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 1,485,718.41
</TABLE>
Page 11
<PAGE> 25
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- -------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
SECURITY DEPOSIT ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 0.00
Add: Balance deposited on closing date 0.00
Add: Security Deposits [6.02 b] 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Add: Investment Earnings 0.00
----
Ending balance on July 31, 1999 0.00
Less: Amounts to Collection Account [6.02 c] 0.00
Adjusted Security Deposit Account Balance 0.00
</TABLE>
NEW TRANSFERRED PROPERTY FUNDING ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Add: Amount Transferred to New Transferred Property Funding Account [6.05 ii] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Ending balance on July 31, 1999 0.00
Add: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 i 1] 0.00
Less: Amount Transferred from Collection Account in consid. of New Trans. Property [6.05 iii] 0.00
----
Adjusted New Transferred Property Funding Account Balance 0.00
</TABLE>
Page 12
<PAGE> 26
FIRST SIERRA EQUIPMENT LEASE TRUST 1996-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES INC.
MONTHLY SERVICER CERTIFICATE
FOR THE COLLECTION PERIOD ENDING AUGUST 1, 1999
<TABLE>
<S> <C> <C>
AVAILABLE AMOUNT TO CERTIFICATE HOLDERS 1,485,718.41
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 14,457.58
(C) Servicing Charges inadvertently deposited in Collection Account 0.00
(iv) Current and unpaid Back-up Servicing Fees [6.06 c (iv)] 578.30
(v) Premium Amount due on Payment Date and unpaid Premiums [6.06 c (v)] 6,107.00
(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)] 160,047.35
(viii) Class B-1 Certificate Interest and Overdue Class B-1 Interest [6.06 c (viii)] 6,080.71
(ix) Class B-2 Certificate Interest and Overdue Class B-2 Interest [6.06 c (ix)] 5,941.92
(x) Class A Base Principal Distribution Amount and Overdue Class A Principal [6.06 c(xii)] 1,057,301.23
(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 [6.06c (xiii) 36,044.36
provided no restricting event exists
(xiii) Class B-2 Base Principal Distribution Amount and Overdue Class B-2 Principal [6.06c xiii) 30,036.97
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 [6.06c (xv)]
(xvi) To the Holder of the Trust Certificate any remaining amounts [6.06 b (xiii)] 168,831.32
</TABLE>
Reviewed By:
--------------------------------------------------
E. ROGER GEBHART
SENIOR VICE PRESIDENT & TREASURER
Page 13