<PAGE>
Filed Pursuant to Rule 424(b)(5)
Registration File No.: 333-40939
Prospectus Supplement to Prospectus dated October 14, 1998.
$1,638,134,628
(Approximate)
GS MORTGAGE SECURITIES CORPORATION II
AS SELLER
Commercial Mortgage Pass-Through Certificates
Series 1998-C1
---------------------
The Commercial Mortgage Pass-Through Certificates Series 1998-C1 will
include sixteen classes of certificates that we are offering pursuant to this
prospectus supplement. The Series 1998-C1 certificates represent the beneficial
ownership interests in a trust. The trust's main assets will be a pool of 322
fixed rate mortgage loans with original terms to maturity of not more than 360
months, secured by first liens on various types of commercial or multifamily
properties.
<TABLE>
<CAPTION>
Initial Certificate Expected
Principal or Pass-Through Ratings Rated Final
Notional Amount(1) Rate Description (S&P/Fitch) Distribution Date
----------------------- ---------------- ------------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
Class A-1 ......... $ 207,500,000 6.060% Fixed AAA/AAA October 18, 2030
Class A-2 ......... $ 436,033,000 6.620% Fixed AAA/AAA October 18, 2030
Class A-3 ......... $ 650,220,628 6.135% Fixed AAA/AAA October 18, 2030
Class X ........... $ 1,861,517,825(2) 1.042%(3) WAC/IO AAAr/AAA October 18, 2030
Class B ........... $ 102,384,000 6.970% Fixed AA/AA October 18, 2030
Class C ........... $ 102,383,000 6.910% Fixed A/A October 18, 2030
Class D ........... $ 107,038,000 7.450%(4) WAC BBB/BBB October 18, 2030
Class E ........... $ 32,576,000 7.450%(4) WAC BBB-/BBB- October 18, 2030
</TABLE>
(Footnotes to table on page S-6)
We will not list the offered certificates on any national securities
exchange or on any automated quotation system of any registered securities
association such as NASDAQ.
The Series 1998-C1 certificates are not obligations of GS Mortgage
Securities Corporation II, the trustee, the master servicer, the special
servicer, any loan originator or loan seller, or any of their respective
affiliates. The offered certificates and the underlying mortgage loans are not
insured or guaranteed by any governmental agency or any of the persons
specified above. THE CLASS B, CLASS C, CLASS D AND CLASS E CERTIFICATES ARE
SUBORDINATED TO THE CLASS A-1, CLASS A-2, CLASS A-3 AND CLASS X CERTIFICATES,
AND EACH SUCH CLASS IS ALSO SUBORDINATED TO OTHER CLASSES WITH EARLIER
ALPHABETIC DESIGNATIONS, AS FURTHER DESCRIBED IN THIS PROSPECTUS SUPPLEMENT.
Investing in the offered certificates involves risk. See "Risk Factors"
beginning on page S-18 in this prospectus supplement and page 4 in the
prospectus.
---------------------
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER REGULATORY
BODY HAS APPROVED OR DISAPPROVED OF THE OFFERED CERTIFICATES, OR PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT OR PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
---------------------
The underwriter, Goldman, Sachs & Co., will purchase the offered
certificates from GS Mortgage Securities Corporation II and will offer them to
the public at negotiated prices, plus accrued interest, determined at the time
of sale. Goldman, Sachs & Co. also expects to deliver the offered certificates
to purchasers in book-entry form only through the facilities of The Depository
Trust Company against payment in New York, New York on October 29, 1998. We
expect to receive from this offering approximately $1,745,000,000, plus accrued
interest from October 1, 1998, before deducting expenses payable by us.
GOLDMAN, SACHS & CO.
---------------------
Prospectus Supplement dated October 26, 1998.
<PAGE>
$1,638,134,628 (APPROXIMATE)
GS MORTGAGE SECURITIES CORPORATION II (SELLER)
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-C1
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
---------------------------------------
Commercial Mortgage Pass-Through Certificates, Series 1998-C1
Geographic Overview of Mortgage Pool
Map of the United States, presenting the following data, omitted:
Oregon
8 properties
$62,941,850
3.38% of total
Washington
13 properties
$83,788,247
4.50% of total
IDAHO
3 properties
$19,319,783
1.04% of total
NEBRASKA
7 properties
$12,777,182
0.69% of total
MISSOURI
2 properties
$13,463,766
0.72% of total
IOWA
3 properties
$7,384,419
0.40% of total
MINNESOTA
9 properties
$20,025,695
1.08% of total
ILLINOIS
7 properties
$25,801,584
1.39% of total
WISCONSIN
4 properties
$40,135,242
2.16% of total
MICHIGAN
9 properties
$52,148,068
2.80% of total
INDIANA
4 properties
$14,654,090
0.79% of total
OHIO
19 properties
$98,304,399
5.28% of total
VERMONT
1 property
$5,161,627
0.28% of total
PENNSYLVANIA
5 properties
$50,654,823
2.72% of total
NEW HAMPSHIRE
2 properties
$8,082,073
0.43% of total
MASSACHUSETTS
13 properties
$35,148,109
1.89% of total
CONNECTICUT
11 properties
$28,842,897
1.55% of total
RHODE ISLAND
3 properties
$5,765,973
0.31% of total
NEW YORK
30 properties
$163,395,938
8.78% of total
NEW JERSEY
1 property
$1,998,409
0.11% of total
DELAWARE
1 property
$1,347,306
0.07% of total
WASHINGTON, DC
2 properties
$52,315,613
2.81% of total
VIRGINIA
22 properties
$127,968,671
6.87% of total
MARYLAND
14 properties
$58,684,345
3.15% of total
KENTUCKY
9 properties
$20,300,455
1.09% of total
WEST VIRGINIA
1 property
$2,290,025
0.12% of total
TENNESSEE
12 properties
$44,497,695
2.39% of total
NORTH CAROLINA
1 property
$2,094,922
0.11% of total
GEORGIA
10 properties
$34,245,325
1.84% of total
SOUTH CAROLINA
4 properties
$10,090,706
0.54% of total
FLORIDA
25 properties
$67,734,586
3.64% of total
ALABAMA
9 properties
$5,949,607
0.32% of total
MISSISSIPPI
3 properties
$3,334,171
0.18% of total
LOUISIANA
9 properties
$33,964,040
1.82% of total
ARKANSAS
5 properties
$15,919,238
0.86% of total
OKLAHOMA
3 properties
$39,820,432
2.14% of total
KANSAS
2 properties
$3,978,438
0.21% of total
TEXAS
48 properties
$157,647,607
8.47% of total
COLORADO
8 properties
$19,069,730
1.02% of total
NEW MEXICO
23 properties
$37,246,054
2.00% of total
ARIZONA
6 properties
$22,140,526
1.19% of total
UTAH
4 properties
$11,606,330
0.62% of total
NEVADA
3 properties
$6,919,163
0.37% of total
CALIFORNIA
41 properties
$294,180,915
15.80% of total
PUERTO RICO
2 properties
$38,377,755
2.06% of total
WEIGHTED AVERAGES BY PROPERTY TYPE
Other 3.41%
Lodging 16.75%
Office 16.18%
Multifamily 15.80%
Retail 24.10%
Industrial 13.11%
Movie 5.63%
Health Care 5.03%
[ ] Less than 1.00% of Initial Pool Balance
[ ] 1.01 - 5.00% of Initial Pool Balance
[ ] 5.01 - 10.00% of Initial Pool Balance
[ ] Greater than 10.00% of Initial Pool Balance
Photographs of the following properties, grouped by loan pool, omitted:
Skyline City Pool, Falls Church, VA: One Skyline Tower and Three Skyline Tower:
Americold Pool: Gloucester, MA;
Milwaukie, OR; and
Flover, WI;
AIMCO Multifamily Pool: Casa de Monterey, Norwalk, CA;
Pathfinder Village Apartments, Fremont, CA; and
Shadowood Apartments, Monroe, LA;
Washington Monarch Hotel, Washington, D.C.: Exterior;
Ballroom; and
Interior; and
Entertainment Properties Trust Pool: AMC Studio 30, Houston, TX;
AMC Promenade 16, Los Angeles, CA;
AMC Ontario Mills 30, Ontario, CA; and
AMC Lennox 24, Columbus, OH.
<PAGE>
IMPORTANT NOTICE ABOUT INFORMATION PRESENTED IN THIS
PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS
Information about the offered certificates is contained in two separate
documents that progressively provide more detail: (a) the accompanying
prospectus, which provides general information, some of which may not apply to
the offered certificates; and (b) this prospectus supplement, which describes
the specific terms of the offered certificates. IF THE TERMS OF THE OFFERED
CERTIFICATES VARY BETWEEN THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING
PROSPECTUS, YOU SHOULD RELY ON THE INFORMATION IN THIS PROSPECTUS SUPPLEMENT.
You should rely only on the information contained in this prospectus
supplement and the accompanying prospectus. We have not authorized anyone to
provide you with information that is different from that contained in this
prospectus supplement and the prospectus. The information in this prospectus
supplement is accurate only as of the date of this prospectus supplement.
This prospectus supplement begins with several introductory sections
describing the Series 1998-C1 certificates and the trust in abbreviated form:
Certificate Summary, commencing on page S-5 of this prospectus
supplement, which sets forth important statistical information relating to
the certificates;
Summary of Prospectus Supplement, commencing on page S-7, which gives a
brief introduction of the key features of the Series 1998-C1 certificates
and a description of the mortgage loans; and
Risk Factors, commencing on page S-18 of this prospectus supplement,
which describes risks that apply to the Series 1998-C1 certificates which
are in addition to those described in the prospectus with respect to the
securities issued by the trust generally.
This prospectus supplement and the accompanying prospectus include cross
references to sections in these materials where you can find further related
discussions. The Tables of Contents in this prospectus supplement and the
prospectus identify the pages where these sections are located.
Certain capitalized terms are defined and used in this prospectus
supplement and the prospectus to assist you in understanding the terms of the
offered certificates and this offering. The capitalized terms used in this
prospectus supplement are defined on the pages indicated under the caption
"Index of Significant Definitions" beginning on page S-148 in this prospectus
supplement.
In this prospectus supplement, the terms "Seller", "we," "us" and "our"
refer to GS Mortgage Securities Corporation II.
S-2
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
SUMMARY OF PROSPECTUS SUPPLEMENT .................................................. S-7
RISK FACTORS ...................................................................... S-18
Special Prepayment Considerations ................................................ S-18
Special Yield Considerations ..................................................... S-19
Risks Relating to Enforceability of Prepayment Premiums .......................... S-19
Risks Associated with Certain of the Mortgage Loans and Mortgaged Properties ..... S-20
Limitations of Appraisals ........................................................ S-21
Tenant Concentration Entails Risk ................................................ S-21
Mortgaged Properties Leased to Multiple Tenants Also Have Risks .................. S-22
Tenant Bankruptcy Entails Risks .................................................. S-22
Concentration of Mortgage Loans .................................................. S-22
Risks Relating to Enforceability of Cross-Collateralization ...................... S-24
Risks Particular to Retail Properties ............................................ S-24
Risks Particular to Hotel Properties ............................................. S-25
Risks Particular to Office Properties ............................................ S-26
Risks Particular to Multifamily Rental Properties ................................ S-26
Risks Particular to Industrial Properties ........................................ S-26
Risks Associated with Refrigerated Distribution/Warehouse Facilities ............. S-27
Risks Associated with Movie Theater Properties ................................... S-27
Risks Particular to Healthcare-Related Properties ................................ S-28
Nonrecourse Mortgage Loans ....................................................... S-29
Risks of Different Timing of Mortgage Loan Amortization .......................... S-29
Bankruptcy Proceedings Entail Certain Risks ...................................... S-29
Geographic Concentration ......................................................... S-30
Environmental Risks .............................................................. S-31
Costs of Compliance with Americans with Disabilities Act ......................... S-31
Litigation and Other Matters Affecting the Mortgaged Properties or Borrowers ..... S-32
Other Financings ................................................................. S-32
Effect of Borrower Delinquencies and Defaults .................................... S-33
Balloon Payments ................................................................. S-34
Special Considerations Relating to AIMCO Multifamily Pool Loan ................... S-35
Ground Leases and Other Leasehold Interests ...................................... S-36
Attornment Considerations ........................................................ S-36
State Law Limitations on Remedies ................................................ S-36
Tax Considerations Relating to Foreclosure ....................................... S-37
Zoning Compliance and Use Restrictions ........................................... S-37
Earthquake Insurance, Flood and Other Insurance .................................. S-37
Special Servicer Actions ......................................................... S-38
Possible Conflict of Interest of Special Servicer ................................ S-38
Limitations with Respect to Representations and Warranties ....................... S-38
Servicing of the Americold Pool Loan ............................................. S-38
Risks of Limited Liquidity and Market Value ...................................... S-39
Book-Entry Registration .......................................................... S-39
Risks Associated with Year 2000 Compliance ....................................... S-39
Other Risks ...................................................................... S-39
DESCRIPTION OF THE MORTGAGE POOL .................................................. S-40
General .......................................................................... S-40
Additional Mortgage Loan Information ............................................. S-41
Representations and Warranties ................................................... S-42
Certain Characteristics of the Mortgage Loans .................................... S-42
Escrows .......................................................................... S-45
Underwriting Guidelines .......................................................... S-45
Additional Information ........................................................... S-47
Significant Mortgage Loans ....................................................... S-47
Americold Pool: The Borrower; The Properties .................................... S-47
Americold Pool: The Loan ........................................................ S-51
AIMCO Multifamily Pool: The Borrower; The Properties ............................ S-58
AIMCO Multifamily Pool: The Loan ................................................ S-61
</TABLE>
S-3
<PAGE>
<TABLE>
<CAPTION>
PAGE
------
<S> <C>
EPT Pool: The Borrower; The Properties ................................................ S-66
EPT Pool: The Loan .................................................................... S-71
Skyline City Pool: The Borrowers; The Properties ...................................... S-74
Skyline City Pool: The Loan ........................................................... S-77
DESCRIPTION OF THE OFFERED CERTIFICATES ................................................. S-82
General ................................................................................ S-82
Distributions .......................................................................... S-83
Subordination .......................................................................... S-94
Appraisal Reductions ................................................................... S-94
Delivery, Form and Denomination ........................................................ S-95
Book-Entry Registration ................................................................ S-96
Definitive Certificates ................................................................ S-98
Transfer Restrictions .................................................................. S-98
YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS ........................................... S-100
Yield .................................................................................. S-100
Weighted Average Life of the Offered Certificates ...................................... S-102
Price/Yield Tables ..................................................................... S-108
Yield Sensitivity of the Class X Certificates .......................................... S-115
THE POOLING AGREEMENT ................................................................... S-117
General ................................................................................ S-117
Assignment of the Mortgage Loans ....................................................... S-117
Servicing of the Mortgage Loans; Collection of Payments ................................ S-117
Advances ............................................................................... S-120
Accounts ............................................................................... S-121
Withdrawals from the Collection Account ................................................ S-122
Enforcement of "Due-on-Sale" and "Due-on-Encumbrance" Clauses .......................... S-123
Inspections ............................................................................ S-124
Evidence as to Compliance .............................................................. S-124
Certain Matters Regarding the Seller, the Master Servicer and the Special Servicer ..... S-125
Events of Default ...................................................................... S-126
Rights Upon Event of Default ........................................................... S-127
Amendment .............................................................................. S-128
Realization Upon Mortgage Loans ........................................................ S-128
Modifications, Waivers and Amendments .................................................. S-131
The Controlling Class Representative ................................................... S-133
The Healthcare Adviser ................................................................. S-133
Optional Termination; Optional Mortgage Loan Purchase .................................. S-134
The Trustee ............................................................................ S-134
Duties of the Trustee .................................................................. S-135
The Fiscal Agent ....................................................................... S-136
Duties of the Fiscal Agent ............................................................. S-136
The Master Servicer .................................................................... S-137
Servicing Compensation and Payment of Expenses ......................................... S-137
Special Servicer ....................................................................... S-138
Master Servicer and Special Servicer Permitted to Buy Certificates ..................... S-139
Reports to Certificateholders .......................................................... S-139
USE OF PROCEEDS ......................................................................... S-140
CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS ............................................. S-140
FEDERAL INCOME TAX CONSEQUENCES ......................................................... S-142
STATE TAX CONSIDERATIONS ................................................................ S-144
ERISA CONSIDERATIONS .................................................................... S-144
LEGAL INVESTMENT ........................................................................ S-145
UNDERWRITING ............................................................................ S-145
LEGAL MATTERS ........................................................................... S-146
RATINGS ................................................................................. S-146
INDEX OF SIGNIFICANT DEFINITIONS ........................................................ S-148
ANNEX A--CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS .................................. A-1
ANNEX B--REPRESENTATIONS AND WARRANTIES ................................................. B-1
ANNEX C--FORM OF STATEMENT TO CERTIFICATEHOLDERS ........................................ C-1
ANNEX D--STRUCTURAL AND COLLATERAL TERM SHEET ........................................... D-1
</TABLE>
S-4
<PAGE>
CERTIFICATE SUMMARY
<TABLE>
<CAPTION>
INITIAL APPROXIMATE
CERTIFICATE PERCENT OF
APPROXIMATE PRINCIPAL RATINGS TOTAL
CREDIT SUPPORT CLASS AMOUNT (S&P/FITCH) CERTIFICATES
<S> <C> <C> <C> <C> <C>
CLASS X
$1,861,517,825 CLASS A-1 $207,500,000 AAA/AAA 11.15%
(NOTIONAL AMOUNT) CLASS A-2 $436,033,000 AAA/AAA 23.42%
30.50%* (AAAR/AAA) CLASS A-3 $650,220,628 AAA/AAA 34.93%
25.00% CLASS B $102,384,000 AA/AA 5.50%
19.50% CLASS C $102,383,000 A/A 5.50%
13.75% CLASS D $107,038,000 BBB/BBB 5.75%
12.00% CLASS E $ 32,576,000 BBB-/BBB- 1.75%
7.50% CLASS F** $ 83,768,000 N/A 4.50%
6.25% CLASS G** $ 23,268,000 N/A 1.25%
3.25% CLASS H** $ 55,846,000 N/A 3.00%
2.00% CLASS J** $ 23,269,000 N/A 1.25%
N/A CLASS K** $ 37,232,197 N/A 2.00%
</TABLE>
* Represents the approximate credit support for the Class A-1,
Class A-2 and Class A-3 Certificates in the aggregate.
** Not offered hereby.
The Class Q, Class R and Class LR Certificates are not offered
hereby or represented in this table.
S-5
<PAGE>
<TABLE>
<CAPTION>
INITIAL PASS-THROUGH
RATINGS CERTIFICATE APPROXIMATE RATE AS OF WEIGHTED
S&P/ PRINCIPAL OR CREDIT CLOSING AVG. LIFE(5) PRINCIPAL
CLASS FITCH NOTIONAL AMOUNT(1) SUPPORT DESCRIPTION DATE (YRS.) WINDOW(5)
<S> <C> <C> <C> <C> <C> <C> <C>
Offered
Certificates
A-1 AAA/AAA $ 207,500,000 30.50% Fixed 6.060% 5.01 11/98-07/07
A-2 AAA/AAA $ 436,033,000 30.50% Fixed 6.620% 9.49 07/07-10/08
A-3 AAA/AAA $ 650,220,628 30.50% Fixed 6.135% 8.99 11/98-10/08
X AAAr/AAA $ 1,861,517,825(2) N/A WAC I/O 1.042%(3) 9.34 11/98-09/19
B AA/AA $ 102,384,000 25.00% Fixed 6.970% 9.97 10/08-10/08
C A/A $ 102,383,000 19.50% Fixed 6.910% 9.97 10/08-10/08
D BBB/BBB $ 107,038,000 13.75% WAC 7.450%(4) 9.97 10/08-10/08
E BBB-/BBB- $ 32,576,000 12.00% WAC 7.450%(4) 9.97 10/08-10/08
Certificates Not Offered Hereby
F N/A $ 83,768,000 7.50% Fixed 6.000% N/A N/A
G N/A $ 23,268,000 6.25% Fixed 6.000% N/A N/A
H N/A $ 55,846,000 3.25% Fixed 6.000% N/A N/A
J N/A $ 23,269,000 2.00% Fixed 6.000% N/A N/A
K N/A $ 37,232,197 N/A Fixed 6.000% N/A N/A
</TABLE>
(1) Approximate, subject to a variance of 5%.
(2) The Class X Certificates will not have a principal amount and will not be
entitled to receive distributions of principal. Interest will accrue on
the Class X Certificates at their Pass-Through Rate on their notional
amounts. The notional amount of the Class X Certificates will be
initially $1,861,517,825, which will be equal to the aggregate initial
principal amounts of the Class A-1, Class A-2, Class A-3, Class B, Class
C, Class D, Class E, Class F, Class G, Class H, Class J and Class K
Certificates.
(3) The Pass-Through Rate on the Class X Certificates will be equal to the
excess, if any, of (i) the weighted average of the net interest rates on
the mortgage loans (in each case, adjusted if necessary to accrue on the
basis of a 360-day year consisting of twelve 30-day months), over (ii)
the weighted average of the Pass-Through Rates of the other certificates
(other than the Class R, Class LR and Class Q Certificates) as described
herein.
(4) For any distribution date, if the weighted average net mortgage rate
(adjusted if necessary to accrue on the basis of a 360-day year
consisting of twelve 30-day months) as of the first day of the related
Collection Period is less than the rate specified for the Class D or
Class E Certificates with respect to such distribution date, then the
Pass-Through Rate for such classes of certificates on that distribution
date will equal the weighted average net mortgage rate.
(5) Assuming a 0% prepayment rate, no balloon payment extensions, and
repayment of each hyperamortizing loan on its anticipated repayment date.
S-6
<PAGE>
SUMMARY OF PROSPECTUS SUPPLEMENT
The following is only a summary. Detailed information appears elsewhere in
this prospectus supplement and in the accompanying prospectus. That information
includes, among other things, detailed mortgage loan information and
calculations of cash flows on the offered certificates. To understand all of
the terms of the offered certificates, read carefully this entire document and
the accompanying prospectus. See "Index of Significant Definitions" in this
prospectus supplement and in the prospectus for definitions of capitalized
terms.
TITLE, REGISTRATION AND DENOMINATION OF CERTIFICATES
The certificates to be issued are known as the GS Mortgage Securities
Corporation II Commercial Mortgage Pass-Through Certificates, Series 1998-C1,
and are sometimes referred to in this prospectus supplement as the
"Certificates". The offered certificates will be issued in book-entry form
through The Depository Trust Company ("DTC") and its participants. See
"Description of the Offered Certificates--Book-Entry Registration" in this
prospectus supplement and "Description of the Certificates--General" in the
prospectus. We will issue the offered certificates in denominations of $10,000
and integral multiples of $1.00 above $10,000 and will issue the Class X
Certificates in denominations of $5,000,000 and integral multiples of $1.00
above $5,000,000.
PARTIES AND DATES
Seller...................... GS Mortgage Securities Corporation II, a
Delaware corporation. The Seller's address is 85
Broad Street, New York, New York 10004 and its
telephone number is (212) 902-1000. See "The
Seller" in the prospectus.
Loan Sellers................ The mortgage loans will be sold to the Seller
by:
o Goldman Sachs Mortgage Company, a New York
limited partnership ("GSMC") or an affiliate
thereof; and
o Falcon Financial, LLC, a Delaware limited
liability company ("Falcon").
Originators................. The mortgage loans were originated by:
o AMRESCO Capital, L.P., a Delaware limited
partnership;
o Archon Financial, L.P., a Delaware limited
partnership;
o Central Park Capital, L.P., a Delaware
limited partnership;
o GSMC;
o MF VMS, LLC, a Delaware limited liability
company; and
o Falcon.
Master Servicer and
Special Servicer.......... GMAC Commercial Mortgage Corporation, a
California corporation. The Master Servicer will
initially service all of the mortgage loans. See
"The Pooling Agreement--The Master Servicer,"
"--The Special Servicer" and "--Servicing of the
Mortgage Loans; Collection of Payments" in this
prospectus supplement.
Trustee..................... LaSalle National Bank, a national banking
association. See "The Pooling Agreement--The
Trustee" in this prospectus supplement.
S-7
<PAGE>
Fiscal Agent................ ABN AMRO Bank N.V., a Netherlands banking
corporation, and the indirect corporate parent of
the Trustee.
Cut-Off Date................ October 11, 1998.
Closing Date................ On or about October 29, 1998.
Distribution Dates.......... The Trustee will make distributions on the
certificates, to the extent of available funds,
on the 18th day of each month or, if any such
18th day is not a business day, on the next
business day, beginning on November 18, 1998, to
the holders of record at the end of the previous
month.
Determination Date.......... The fifth business day prior to the related
Distribution Date.
THE MORTGAGE LOANS
The Mortgage Pool........... The trust's primary assets will be 322 fixed
rate mortgage loans (the "Mortgage Pool") secured
by commercial and multifamily properties located
in 43 states, Puerto Rico and the District of
Columbia. See "Risk Factors--Risks Associated
with Certain of the Mortgage Loans and Mortgaged
Properties" in this prospectus supplement. For
purposes of principal distributions on the
certificates, the Mortgage Pool will consist of
two groups of mortgage loans (each, a "Loan
Group", and "Group 1" and "Group 2",
respectively). 186 of the mortgage loans,
representing approximately 65.1% of the aggregate
unpaid principal balance of the mortgage loans as
of the applicable Cut-Off Date (which aggregate
balance is referred to in this prospectus
supplement as the "Initial Pool Balance"), are in
Group 1 and 137 of the mortgage loans,
representing approximately 34.9% of the Initial
Pool Balance, are in Group 2. Each Loan Group
consists of those mortgage loans designated as
such on Annex A hereto.
Monthly payments of principal and/or interest on
each mortgage loan are due on the first day of
each month, or in the case of 1 mortgage loan,
representing approximately 0.03% of the Initial
Pool Balance, are due on the 5th day of each
month, or in the case of 2 mortgage loans
representing approximately 0.95% of the Initial
Pool Balance, the 10th day of each month, or in
the case of 6 mortgage loans, representing
approximately 23.5% of the Initial Pool Balance,
the 11th day of each month. Some of the mortgage
loans provide for monthly payments of principal
based on an amortization schedule that is
significantly longer than the remaining term of
such mortgage loan. These mortgage loans will
have substantial principal payments due on their
maturity dates, unless prepaid earlier.
S-8
<PAGE>
General characteristics of the mortgage loans as
of the Cut-Off Date:
<TABLE>
<CAPTION>
GROUP 1 GROUP 2 TOTAL
LOANS LOANS MORTGAGE POOL
----------------- --------------- -----------------
<S> <C> <C> <C>
Initial Pool Balance (1) ..... $1,211,297,197 $650,220,628 $1,861,517,825
Number of Mortgage Loans ..... 186 137 322
Number of Mortgaged
Properties ................. 259 162 421
Average Mortgage Loan
Balance .................... $ 6,512,351 $ 4,746,136 $ 5,781,111
Number of Multifamily
Properties ................. 12 60 72
Percentage of Multifamily
Properties ................. 4.9% 36.2% 15.8%
Weighted Average Mortgage
Rate ....................... 7.338% 7.433% 7.371%
Range of Mortgage Rates ...... 6.160-9.470% 6.370-8.500% 6.160-9.470%
Weighted Average
Loan-to-Value Ratio ........ 66.7% 72.7% 68.8%
Weighted Average Remaining
Term to Maturity (months)
(2) ........................ 132 115 126
Weighted Average DSCR (3)..... 1.59x 1.42x 1.53x
Balloon Mortgage Loans ....... 116 (48.2%) 133 (94.5%) 248 (64.4%)
Hyperamortizing Mortgage
Loans ...................... 15 (39.1%) 4 (5.5%) 19 (27.4%)
Fully Amortizing Mortgage
Loans ...................... 55 (12.6%) 0 (0%) 55 (8.2%)
</TABLE>
------------
(1) Subject to a permitted variance of plus or
minus 5%.
(2) In the case of 19 mortgage loans,
representing approximately 27.4% of the
Initial Pool Balance, which are
hyperamortizing mortgage loans, this
calculation assumes that such mortgage loans
pay in full on their anticipated repayment
dates.
(3) See "Description of the Mortgage
Pool--Additional Mortgage Loan Information"
for a description of the calculation of the
Debt Service Coverage Ratio.
Except in certain limited circumstances, each
mortgage loan either prohibits voluntary
prepayments during a certain number of years
following origination or allows the borrower
to prepay the principal balance in whole or in
part during a certain number of years
following origination if the borrower pays a
prepayment premium or a yield maintenance
charge. 301 mortgage loans, representing
approximately 72.2% of the Initial Pool
Balance are freely prepayable by the borrower
during a one- to six-month period prior to
maturity and 2 other mortgage loans,
representing approximately 6.1% of the Initial
Pool Balance, are freely prepayable by the
borrower during a 12 to 18-month period prior
to maturity. In addition, certain mortgage
loans permit the related borrower to
substitute U.S. government securities as
collateral and obtain a release of the
mortgaged property instead of prepaying the
mortgage loan. See "Description of the
Mortgage Pool--Certain Characteristics of the
Mortgage Loans--Defeasance; Collateral
Substitution" and Annex A in this prospectus
supplement.
Significant Loans........... 4 of the mortgage loans represent, in the
aggregate, approximately 24.1% of the Initial
Pool Balance. Each such mortgage loan had an
unpaid principal balance as of the Cut-Off
Date in excess of $50,000,000. For a further
description of such mortgage loans, see
"Description of the Mortgage Pool--Significant
Mortgage Loans" in this prospectus supplement.
S-9
<PAGE>
THE SECURITIES
The Certificates............ We are offering the following eight classes of
Commercial Mortgage Pass-Through Certificates
as part of Series 1998-C1:
o Class A-1
o Class A-2
o Class A-3
o Class X
o Class B
o Class C
o Class D
o Class E
Series 1998-C1 will consist of a total of 16
classes, the following eight of which are not
being offered through this prospectus
supplement and the accompanying prospectus:
Class F, Class G, Class H, Class J, Class K,
Class Q, Class R and Class LR (collectively,
the "Private Certificates").
Certificate Principal
Amounts and Notional
Amount.................. Your certificates will have the approximate
aggregate initial principal amount or notional
amount set forth below, subject to a variance of
plus or minus 5%:
<TABLE>
<S> <C>
o Class A-1 ......... $ 207,500,000 principal amount
o Class A-2 ......... $ 436,033,000 principal amount
o Class A-3 ......... $ 650,220,628 principal amount
o Class X ........... $1,861,517,825 notional amount
o Class B ........... $ 102,384,000 principal amount
o Class C ........... $ 102,383,000 principal amount
o Class D ........... $ 107,038,000 principal amount
o Class E ........... $ 32,576,000 principal amount
</TABLE>
The notional amount of the Class X Certificates
will generally be equal to the aggregate
principal amounts of the other certificates
that have principal amounts, determined as of
the preceding distribution date (after giving
effect to the distribution of principal on
such distribution date) or, in the case of the
first distribution date, the Closing Date.
See "Description of the Offered
Certificates--General" in this prospectus
supplement.
Pass-Through Rates
A. Offered Certificates
(Other Than Class X)... Your certificates will accrue interest at an
annual rate called a "Pass-Through Rate" which is
set forth below (other than for the Class X
Certificates) for each class.
<TABLE>
<S> <C>
o Class A-1 ......... 6.060%
o Class A-2 ......... 6.620%
o Class A-3 ......... 6.135%
o Class B ........... 6.970%
o Class C ........... 6.910%
o Class D ........... 7.450%*
o Class E ........... 7.450%*
</TABLE>
------------
* The lesser of such rate or the weighted
average of the net interest rates (adjusted if
necessary to accrue on the basis of 360-day
year consisting of twelve 30-day months, as
described below) on the mortgage loans.
S-10
<PAGE>
Interest on such classes of certificates will be
calculated based on a 360-day year consisting
of twelve 30-day months, or a "30/360 basis".
B. Class X Certificates..... If you invest in the Class X Certificates, your
Pass-Through Rate will be equal to the
difference between the weighted average
interest rate of the mortgage loans (after
giving effect to the Master Servicer's and the
Trustee's fees) and the weighted average of
the Pass-Through Rates of the other
certificates (other than the Class R, Class LR
and Class Q Certificates), as described in
this prospectus supplement. The weighting will
be based upon the respective principal amounts
of those classes.
For purposes of calculating the Class X
Pass-Through Rate, the mortgage loan interest
rates will not reflect any default interest
rate or any rate increase occurring after an
Anticipated Repayment Date. The mortgage loan
interest rates will also be determined without
regard to any loan term modifications agreed
to by the Special Servicer or resulting from
the borrower's bankruptcy or insolvency. In
addition, if a mortgage loan does not accrue
interest on a 30/360 basis, its interest rate
for any month that is not a 30-day month will
be recalculated so that the amount of interest
that would accrue at that rate in such month,
calculated on a 30/360 basis, will equal the
amount of interest that actually accrues on
that loan in that month.
See "Description of the Offered
Certificates--Distributions--
Payment Priorities" in this prospectus
supplement.
Distributions
A. Amount and Order
of Distributions....... On each distribution date, funds available for
distribution from the mortgage loans, net of
specified trust expenses, will be distributed
in the following amounts and order of
priority:
Step 1/Class A and Class X: To interest on Class
A (which includes Classes A-1, A-2 and A-3)
and Class X, pro rata, in accordance with
their interest entitlements.
Step 2/Class A: Concurrently:
(a) In an amount equal to the funds allocated
to principal from mortgage loans in Group 1,
to principal on Classes A-1 and A-2, in that
order, until reduced to zero, and then to
principal on Class A-3 until reduced to zero.
Notwithstanding the foregoing, if, at any time
prior to July 2008, no unscheduled payment of
principal on any mortgage loan has been
received (excluding for this purpose any
prepayment in full on an ARD Loan on its
Anticipated Repayment Date), no mortgage loan
fails to be paid in full on its maturity date
(or in the case of an ARD Loan, its
Anticipated Repayment Date) or within 30 days
thereafter, and no mortgage loan has been
delinquent for 60 days or more, all scheduled
payments on mortgage loans in Group 1 that are
due in July 2008 through September 2008
(including for this purpose prepayments in
full of ARD Loans in Group 1 that have
Anticipated Repayment Dates in such period)
that are received in July 2008 through
September 2008 will
S-11
<PAGE>
not be distributed on the certificates.
Instead, they will be held in a reserve
account until Class A-3 has been reduced to
zero, and thereafter distributed as principal
on Class A-2 until reduced to zero.
If any unscheduled payment of principal on any
mortgage loan is received (excluding for this
purpose any prepayment in full on any ARD Loan
on its Anticipated Repayment Date), any
mortgage loan fails to be paid in full on its
maturity date (or in the case of an ARD Loan,
its Anticipated Repayment Date) or within 30
days thereafter, or a delinquency of 60 days
or more occurs with respect to any mortgage
loan, any funds deposited in the reserve
account described above will be distributed in
accordance with clause (a) above.
(b) In an amount equal to the funds allocated
to principal from mortgage loans in Group 2,
to principal on Class A-3 until reduced to
zero, and then to principal on Classes A-1 and
A-2, in that order, until reduced to zero.
Notwithstanding clauses (a) and (b) above, if
each class of certificates other than Class A
has been reduced to zero, funds available for
principal will be distributed to Classes A-1,
A-2 and A-3, pro rata, rather than
sequentially.
Step 3/Class A: After each class of certificates
other than Class A has been reduced to zero,
to reimburse Classes A-1, A-2 and A-3, pro
rata, for any previously unreimbursed losses
on the mortgage loans allocable to principal
that were previously borne by those classes,
together with interest on such amount.
Step 4/Class B: To Class B as follows: (a) to
interest on Class B in the amount of its
interest entitlement; (b) to the extent of
funds allocated to principal from mortgage
loans in both Group 1 and Group 2, and
remaining after distributions in respect of
principal to each Class with a higher
priority, to principal on Class B until
reduced to zero; and (c) to reimburse Class B
for any previously unreimbursed losses on the
mortgage loans allocable to principal that
were previously borne by that class, together
with interest on such amount.
Step 5/Class C: To Class C in a manner analogous
to the Class B allocations of Step 4.
Step 6/Class D: To Class D in a manner analogous
to the Class B allocations of Step 4.
Step 7/Class E: To Class E in a manner analogous
to the Class B allocations of Step 4.
See "Description of the Offered
Certificates--Distributions--
Payment Priorities" and
"--Distributions--Reserve Account and
Reinvestment Letter of Credit" in this
prospectus supplement.
B. Interest and Principal
Entitlements........... A description of each class's interest
entitlement can be found in "Description of the
Offered Certificates--Distributions-- Method,
Timing and Amount" and "--Distributions--Payment
Priorities" in this prospectus supplement. As
described in such section, there are
circumstances in which your interest
S-12
<PAGE>
entitlement for a distribution date could be
less than one full month's interest at the
Pass-Through Rate on your certificate's
principal amount or notional amount.
A description of the amount of principal
required to be distributed to the classes
entitled to principal on a particular
distribution date also can be found in
"Description of the Offered
Certificates--Distributions--Method, Timing
and Amount" and "--Distributions--Payment
Priorities" in this prospectus supplement.
C. Prepayment Premiums..... The manner in which any prepayment premiums and
yield maintenance charges received during a
particular collection period will be allocated
to the Class X Certificates, on the one hand,
and certain of the classes of certificates
entitled to principal, on the other hand, is
described in "Description of the Offered
Certificates--Distributions--Prepayment
Premiums" in this prospectus supplement.
D. Reinvestment Letter
of Credit.............. In order to cover any reinvestment shortfall
that might otherwise be suffered by
certificateholders resulting from the
reinvestment of funds on deposit in the
reserve account as described in clause (a) of
"Step 2/Class A" under "--Amount and Order of
Distributions" above, the Seller or an
affiliate of the Seller will cause to be
deposited on the Closing Date with the Trustee
a letter of credit issued by ABN AMRO Bank
N.V. (who is also acting as the Fiscal Agent).
The letter of credit will be in the initial
amount of approximately $2,990,126.
In the event any unscheduled payment of
principal on any mortgage loan is received
(excluding for this purpose any prepayment in
full on an ARD Loan on its Anticipated
Repayment Date), any mortgage loan fails to be
paid in full on its maturity date (or in the
case of an ARD Loan, its Anticipated Repayment
Date) or within 30 days thereafter, or a
delinquency of 60 days or more occurs with
respect to any mortgage loan, the Trustee will
release to the Seller or an affiliate of the
Seller the letter of credit, and there will be
no further obligation to maintain such a
letter of credit for the benefit of
certificateholders. See "Description of the
Offered Certificates--Distributions--Reserve
Account and Reinvestment Letter of Credit" in
this prospectus supplement.
Advances
A. Principal and Interest
Advances.............. Master Servicer is required to advance (each,
a "P&I Advance") delinquent monthly mortgage
loan payments, if it determines that the
advance will be recoverable. The Master
Servicer will not be required to advance
balloon payments due at maturity or interest
in excess of a mortgage loan's regular
interest rate (without considering any default
rate or any rate increase after an Anticipated
Repayment Date). The Master Servicer also is
not required to advance amounts deemed
non-recoverable, prepayment premiums or yield
maintenance charges. See "The Pooling
Agreement--Advances" in this prospectus
supplement. If an advance is made, the Master
Servicer will not advance its servicing fee,
but will advance the Trustee's fee.
B. Property Protection
Advances.............. Master Servicer is also required to make
advances to pay delinquent real estate taxes,
assessments and hazard insur-
S-13
<PAGE>
ance premiums and similar expenses necessary
to protect and maintain the mortgaged
property, to maintain the lien on the
mortgaged property or enforce the related
mortgage loan documents ("Property Advances,"
and collectively with P&I Advances,
"Advances"). The Master Servicer is not
required to advance amounts deemed
non-recoverable. See "The Pooling
Agreement--Advances" in this prospectus
supplement.
C. Interest on Advances.... The Master Servicer, the Trustee and the Fiscal
Agent, as applicable, will be entitled to
interest as described in this prospectus
supplement on any Advances made. Interest
accrued on outstanding Advances may result in
reductions in amounts otherwise payable on the
certificates.
See"Description of the Offered Certificates--
Realized Losses" and "The Pooling Agreement--
Advances" in this prospectus supplement.
Subordination............... The amount available for distribution will be
applied in the order described in
"Distributions--Amount and Order of
Distributions" above.
The chart below describes the manner in which
the payment rights of certain classes will be
senior or subordinate, as the case may be, to
the payment rights of other classes. The chart
shows entitlement to receive principal and
interest on any Distribution Date in
descending order (beginning with the Class A
and Class X Certificates). It also shows the
manner in which mortgage loan losses are
allocated in ascending order (beginning with
the Class K Certificates). (However, no
principal payments or loan losses will be
allocated to the Class X Certificates,
although loan losses will reduce the notional
amount of the Class X Certificates and,
therefore, the amount of interest they
accrue.)
[GRAPHIC OMITTED]
------------
* Interest only
S-14
<PAGE>
NO OTHER FORM OF CREDIT ENHANCEMENT WILL BE
AVAILABLE FOR THE BENEFIT OF THE HOLDERS OF
THE OFFERED CERTIFICATES.
See "Description of the Offered
Certificates--Subordination" in this
prospectus supplement.
Any allocation of a loss to a class of
certificates will reduce the related principal
amount of such class.
In addition to losses caused by mortgage loan
defaults, shortfalls in payments to holders of
certificates may occur as a result of the
Master Servicer's right to receive payments of
interest on unreimbursed advances, the Special
Servicer's right to compensation with respect
to mortgage loans which are or have been
serviced by the Special Servicer and as a
result of other unanticipated trust expenses.
Such shortfalls will reduce distributions to
the classes of certificates with the lowest
payment priority. To the extent funds are
available on a subsequent distribution date
for distribution on your certificates, you
will be reimbursed for any shortfall with
interest at the Pass-Through Rate on your
certificates.
Information Available to
Certificateholders........ Please see "The Pooling Agreement--Reports to
Certificateholders" in this prospectus
supplement for a description of the periodic
reports that you will receive.
Optional Termination........ On any distribution date on which the aggregate
unpaid principal balance of the mortgage
loans remaining in the trust is less than
1% of the Initial Pool Balance, certain
specified persons will have the option to
purchase all of the remaining mortgage
loans at the price specified in this
prospectus supplement (and all property
acquired through exercise of remedies in
respect of any mortgage loan). Exercise of
this option will terminate the trust and
retire the then-outstanding certificates.
OTHER INVESTMENT CONSIDERATIONS
Federal Income
Tax Consequences........... We will make REMIC elections for parts of the
trust. The certificates will represent
ownership of "regular interests" in a REMIC.
Pertinent federal income tax consequences of
an investment in the offered certificates
include:
o Each class of offered certificates will
constitute REMIC "regular interests."
o The regular interests will be treated as
newly originated debt instruments for
federal income tax purposes.
o You will be required to report income on
your certificates in accordance with the
accrual method of accounting.
o The Class X Certificates will, and one or
more other classes of offered certificates
may, be issued with original issue
discount.
S-15
<PAGE>
For information regarding the federal income
tax consequences of investing in the offered
certificates, see "Federal Income Tax
Consequences" in this prospectus supplement
and in the prospectus.
Yield Considerations........ You should carefully consider the matters
described under "Risk Factors--Special
Prepayment Considerations" and "--Special
Yield Considerations" in this prospectus
supplement, which may affect significantly the
yields on your investment.
ERISA Considerations........ Subject to important considerations described
under "ERISA Considerations" in this
prospectus supplement, if you are subject to
ERISA, generally you can buy the Class A-1,
Class A-2, Class A-3 and Class X Certificates,
but not any other offered certificates. A
fiduciary of any retirement plan or other
employment benefit plan or arrangement should
review carefully with its legal advisors
whether the purchase or holding of any class
of offered certificates could give rise to a
transaction that is not permitted under
applicable law or whether there exists any
statutory or administrative exemption
applicable to an investment. This prospectus
supplement describes several exemptions that
may be available. If you use insurance company
general account funds to purchase
certificates, you should consider the
availability of Section III of Prohibited
Transaction Class Exemption 95-60 (60 Fed.
Reg. 35925, July 12, 1995) issued by the U.S.
Department of Labor. See "ERISA
Considerations" in this prospectus supplement
and in the prospectus.
Ratings..................... On the Closing Date, the offered certificates
must have the minimum ratings from Standard &
Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. ("S&P"), and Fitch
IBCA, Inc. ("Fitch") set forth below:
<TABLE>
<CAPTION>
S&P FITCH
------ ------
<S> <C> <C>
Class A-1 .......... AAA AAA
Class A-2 .......... AAA AAA
Class A-3 .......... AAA AAA
Class X ............ AAAr AAA
Class B ............ AA AA
Class C ............ A A
Class D ............ BBB BBB
Class E ............ BBB- BBB-
</TABLE>
A rating agency may downgrade, qualify or
withdraw a rating at any time. A rating agency
not requested to rate the offered certificates
may nonetheless issue a rating and, if one
does, it may be lower than those stated above.
S&P assigns the additional rating of "r" to
highlight classes of securities that S&P
believes may experience high volatility or
high variabil-
S-16
<PAGE>
ity in expected returns due to non-credit
risks. The security ratings do not address the
frequency of prepayments (whether voluntary or
involuntary) of mortgage loans, or the degree
to which such prepayments might differ from
those originally anticipated, or the
likelihood of collection of excess interest,
default interest, prepayment premiums or yield
maintenance charges, or the tax treatment of
the certificates. Even though the Class X
Certificates will be rated AAAr/AAA, it is
still possible that you may fail to recover
your full initial investment due to a rapid
rate of prepayments, defaults or liquidations.
The ratings do not address the fact that the
Pass-Through Rates of the Class D and Class E
Certificates, to the extent that they are
based on the weighted average interest rate of
the mortgage loans, will be affected by
changes in such weighted average interest
rate. See "Certain Prepayment, Maturity and
Yield Considerations" in this prospectus
supplement, "Risk Factors" and "Ratings" in
this prospectus supplement and in the
prospectus, and "Yield Considerations" in the
prospectus.
Legal Investment............ The offered certificates will NOT constitute
"mortgage related securities" within the
meaning of SMMEA. As a result, the appropriate
characterization of the offered certificates
under various legal investment restrictions,
and thus your ability, if you are subject to
these restrictions, to purchase the offered
certificates, may be subject to significant
interpretative uncertainties.
You should consult your own legal advisors to
determine whether and to what extent the
offered certificates constitute legal
investments for you. See "Legal Investment" in
this prospectus supplement and the prospectus.
S-17
<PAGE>
RISK FACTORS
You should carefully consider the following risks before making an
investment decision. In particular, distribution on your certificates will
depend on payments received on and other recoveries with respect to the
mortgage loans. Therefore, you should carefully consider the risk factors
relating to the mortgage loans and the mortgaged properties.
The risks and uncertainties described below are not the only ones relating
to your certificates. Additional risks and uncertainties not presently known to
us or that we currently deem immaterial may also impair your investment.
If any of the following risks are realized, your investment could be
materially and adversely affected.
This prospectus supplement also contains forward-looking statements that
involve risks and uncertainties. Actual results could differ materially from
those anticipated in these forward-looking statements as a result of certain
factors, including the risks described below and elsewhere in this prospectus
supplement.
SPECIAL PREPAYMENT CONSIDERATIONS
The yield to maturity on your certificates will depend significantly on
the rate and timing of principal payments on the certificates. The rate and
timing of principal payments on the mortgage loans will affect the rate and
timing of principal payments on the offered certificates. Because, generally,
principal distributions to the holders of the Class A-1 and Class A-2
Certificates will be based on principal received with respect to the mortgage
loans in Group 1, such certificates will be sensitive to the rate and timing of
principal payments on mortgage loans in such Loan Group. Similarly, the Class
A-3 Certificates will be sensitive to principal payments on mortgage loans in
Group 2.
In addition to scheduled payments of principal, principal payments on the
offered certificates could result from prepayments, defaults, liquidations or
purchases of mortgage loans due to a breach of representation and warranty. The
rate of principal payments and prepayments on the mortgage loans, in turn, will
depend on a variety of factors, such as:
o the terms of the mortgage loans, including amortization schedules,
interest rates and prepayment restrictions and penalties;
o the level of market interest rates;
o the availability of mortgage credit;
o the existence and extent of periods in which prepayments are prohibited
(known as "lock-out periods") and defeasance, prepayment premium and
yield maintenance provisions of the mortgage loans, and the
enforceability of those provisions; and
o economic, demographic, geographic, tax, legal and other factors.
In general, if market interest rates fall significantly below the interest
rates on the mortgage loans, the borrowers are likely to increase the number
and amount of principal prepayments. At the same time, there should be smaller
and less frequent principal prepayments on mortgage loans with prepayment
restrictions and prepayment premiums and/or yield maintenance charges than on
similar mortgage loans without such provisions, or with shorter restrictions or
lower prepayment premiums and/or yield maintenance charges.
In addition, certain mortgage loans permit the borrower to defease the
borrower's mortgage loan by substituting U.S. government securities for the
mortgaged property as collateral. This substitution will not result in a
prepayment on your certificates, even though the borrower effectively gets a
release of the mortgaged property.
Nevertheless, we cannot assure you that the related borrowers will refrain
from prepaying their mortgage loans due to the existence of prepayment premiums
or yield maintenance charges. Also, we cannot assure you that involuntary
prepayments will not occur. Generally, no prepayment premiums or
S-18
<PAGE>
yield maintenance charges will be required if the prepayment results from a
casualty or condemnation. See "Description of the Mortgage Pool" and "Certain
Prepayment, Maturity and Yield Considerations" in this prospectus supplement
and "Yield Considerations" in the prospectus.
SPECIAL YIELD CONSIDERATIONS
The yield to maturity on each class of the offered certificates will
depend in part on the following:
o the purchase price for the certificates;
o the rate and timing of principal payments on the mortgage loans, and in
general with respect to the Class A Certificates, the mortgage loans in
the applicable Loan Group;
o the receipt and allocation of prepayment premiums and/or yield
maintenance charges;
o the allocation of principal payments to pay down classes of
certificates; and
o interest shortfalls on the mortgage loans, such as interest shortfalls
resulting from prepayments.
The yield on the Class X, Class D and Class E Certificates could also be
adversely affected if mortgage loans with higher interest rates pay faster than
the mortgage loans with lower interest rates, since those classes bear interest
at a rate limited by the weighted average mortgage rate of the mortgage loans.
The Pass-Through Rates on the Class D and Class E Certificates may be limited
by the weighted average of the net interest rates on the mortgage loans even if
principal prepayments do not occur.
In general, if you buy a Class X Certificate, or if you buy a certificate
at a premium, and principal distributions (or, for the Class X Certificates,
reductions in their notional amount) occur faster than expected, your actual
yield to maturity will be lower than expected. If principal distributions are
very high, holders of Class X Certificates (and other certificates purchased at
a premium) might not recover their initial investment. Conversely, if you buy a
certificate (other than a Class X Certificate) at a discount and principal
distributions occur more slowly than expected, your actual yield to maturity
will be lower than expected. Because losses on the mortgage loans will be
allocated to reduce the certificate principal amounts of certain classes of
certificates as described in this prospectus supplement, the allocation of any
such losses will also reduce the notional amount of the Class X Certificates,
and notwithstanding their parity in interest distributions with the Class A-1,
Class A-2 and Class A-3 Certificates, the amount and timing of such losses
could have a significant adverse effect on the yield of the Class X
Certificates. Losses on the mortgage loans will be allocated without regard to
Loan Groups. See "Certain Prepayment, Maturity and Yield Considerations" in
this prospectus supplement and "Yield Considerations" in the prospectus.
In addition, the rate and timing of delinquencies, defaults, losses and
other shortfalls on mortgage loans will affect distributions on the
certificates and their timing. See "--Effect of Borrower Delinquencies and
Defaults" below.
Yields on the Class X Certificates will be extremely sensitive to the
prepayment and loss experience on the mortgage loans. If you are an investor in
the Class X Certificates, you should fully consider the associated risks,
including the risk that you, in circumstances of higher than anticipated rates
of principal prepayments or losses, could fail to fully recoup your initial
investment. We make no representation as to the anticipated rate of prepayments
or losses on the mortgage loans or as to the anticipated yield to maturity of
any class of certificates. See "Yield, Prepayment and Maturity Considerations"
in this prospectus supplement.
RISKS RELATING TO ENFORCEABILITY OF PREPAYMENT PREMIUMS
Provisions requiring yield maintenance charges or prepayment premiums may
not be enforceable in some states and under federal bankruptcy law. Those
provisions also may constitute interest for usury purposes. Accordingly, we
cannot assure you that the obligation to pay a yield maintenance charge or
prepayment premium will be enforceable. Also, we cannot assure you that
foreclosure proceeds will be sufficient to pay an enforceable yield maintenance
charge or prepayment premium. Additionally, although
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<PAGE>
the collateral substitution provisions related to defeasance do not have the
same effect on the certificateholders as prepayment, we cannot assure you that
a court would not interpret those provisions as requiring a yield maintenance
charge or prepayment premium. In certain jurisdictions those collateral
substitution provisions might therefore be deemed unenforceable under
applicable law, or usurious.
RISKS ASSOCIATED WITH CERTAIN OF THE MORTGAGE LOANS AND MORTGAGED PROPERTIES
Security for the mortgage loans consists of fee simple and/or leasehold
interests in multifamily, retail, office, hotel, industrial, cold storage,
entertainment, healthcare-related, self-storage properties and mobile home
communities. Commercial and multifamily lending is generally riskier for the
lender than one- to four-family residential lending because:
o loans to a given borrower or groups of related borrowers are larger than
residential one- to four-family mortgage loans;
o the repayment of loans secured by income producing properties typically
depends upon the successful operation of the property;
o if the property's cash flow declines (for example, if leases are not
obtained or renewed), the borrower may have trouble repaying the loan;
o commercial and multifamily real estate is sensitive to increases in the
supply and decreases in the demand in the market for the type of
property securing the loan; and
o market values may vary because of economic events or governmental
regulations outside the control of the borrower or lender, such as rent
control laws in the case of multifamily mortgage loans, which impact the
future cash flow of the property. See "--Nonrecourse Mortgage Loans"
below.
The successful operation of a real estate project also depends on the
performance and viability of the property manager. The property manager must,
among other things:
o respond to changes in the local market;
o plan and implement appropriate rental rates; and
o advise the borrower about maintenance and capital improvements.
Property managers may change when leases or management agreements expire or
following a default or foreclosure of a mortgage loan. The poor performance or
financial condition of current or future property managers could have a
negative impact on payments on the mortgage loans.
Commercial and multifamily property values and net operating income are
volatile. The net operating income and value of the mortgaged properties may
decline for a number of reasons related to the general business environment or
to a specific property. Reasons related to the general business environment
include:
o economic conditions such as plant closings, industry slowdowns and other
factors;
o local real estate conditions (such as an oversupply of multifamily
housing, retail, office, industrial or self-storage space, movie
theaters, hotel rooms or nursing home beds);
o weakness in specific industry segments; and
o demographic factors.
The following are some of the property-specific reasons:
o the construction quality, age and design of the property;
o perceptions regarding the safety, convenience, services and
attractiveness of the property;
o the ability of the property manager and the adequacy of maintenance on
the property;
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o retroactive changes to building or similar codes; and
o increases in operating expenses (such as energy costs).
LIMITATIONS OF APPRAISALS
Appraisals were obtained with respect to each of the mortgaged properties
prior to the origination of the applicable mortgage loan, and in some cases
updates were peformed in anticipation of this transaction. See Annex A to this
prospectus supplement for dates of the latest appraisals. In general,
appraisals represent the analysis and opinion of qualified appraisers and are
not guarantees of present or future value. One appraiser may reach a different
conclusion than the conclusion that would be reached if a different appraiser
were appraising such property. Moreover, appraisals seek to establish the
amount a typically motivated buyer would pay a typically motivated seller and,
in certain cases, may have taken into consideration the purchase price paid by
the borrower. Such amount could be significantly higher than the amount
obtained from the sale of a mortgaged property under a distress or liquidation
sale. Information regarding the appraised values of the mortgaged properties
(including loan-to-value ratios) presented in this prospectus supplement is not
intended to be a representation as to the past, present or future market values
of the mortgaged properties. Historical operating results of the mortgaged
properties used in these appraisals may not be comparable to future operating
results. In addition, other factors may impair the mortgaged properties' value
without affecting their current net operating income, including:
o changes in governmental regulations, zoning or tax laws;
o potential environmental or other legal liabilities;
o the availability of refinancing; and
o changes in interest rate levels.
TENANT CONCENTRATION ENTAILS RISK
A deterioration in the financial condition of a tenant can be particularly
significant if a mortgaged property is leased to a single tenant, or a small
number of tenants. In the event of a default by the tenant, there would likely
be an interruption of rental payments under the lease and, accordingly,
insufficient funds available to the borrower to pay the debt service on the
loan. Mortgaged properties leased to a single tenant, or a small number of
tenants, also are more susceptible to interruptions of cash flow if a tenant
fails to renew its lease. This is so because:
o the financial effect of the absence of rental income may be severe;
o more time may be required to re-lease the space; and
o substantial capital costs may be incurred to make the space appropriate
for replacement tenants.
Concentrations of particular tenants among the mortgaged properties or of
tenants in a particular business or industry could increase the possibility of
financial problems with such tenants or in such business or industry sectors
affecting the affected mortgaged properties.
The Americold Pool Loan, representing approximately 7.9% of the Initial
Pool Balance, is secured by the Americold Pool Properties which are all leased
to Americold Corporation. The EPT Pool Loan, representing approximately 5.6% of
the Initial Pool Balance, is secured by the EPT Pool Properties which are all
leased to American Multi-Cinema, Inc. ("AMC").
Each lease of the EPT Pool Properties expires before the EPT Pool Maturity
Date (but between two and three years after its Anticipated Repayment Date). If
the EPT Pool Loan is not prepaid on or after its Anticipated Repayment Date,
and the EPT Pool Borrower is unable to enter into an extension with AMC or to
lease the EPT Pool Properties to another tenant at favorable rental rates, the
EPT Pool Borrower may be unable to fulfill its obligations under the EPT Pool
Loan.
2 groups of mortgage loans, representing in the aggregate approximately
2.6% of the Initial Pool Balance, are secured by properties occupied by certain
affiliated tenants. The affiliated tenants, who rent
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13.1% of the aggregate net leasable area of the related mortgaged properties
and account for 21.4% of the aggregate rentals of such mortgaged properties,
have pledged certain cash flows to secure debt of their parent entity, which
debt is currently in default. If the lender attempts to enforce its security
interest against the tenants, their ability to pay rent (and the ability of the
related borrower to make payments on the affected mortgage loans) would be
adversely affected.
MORTGAGED PROPERTIES LEASED TO MULTIPLE TENANTS ALSO HAVE RISKS
If a mortgaged property has multiple tenants, re-leasing expenditures may
be more frequent than in the case of mortgaged properties with fewer tenants,
thereby reducing the cash flow available for debt service payments.
Multi-tenanted mortgaged properties also may experience higher continuing
vacancy rates and greater volatility in rental income and expenses.
TENANT BANKRUPTCY ENTAILS RISKS
The bankruptcy or insolvency of a major tenant (such as Americold
Corporation, AMC or an anchor tenant), or a number of smaller tenants, may
adversely affect the income produced by a mortgaged property. Under the federal
bankruptcy code (11 U.S.C.) (the "Bankruptcy Code"), a tenant has the option of
assuming or rejecting any unexpired lease. If the tenant rejects the lease, the
landlord's claim for breach of the lease would be a general unsecured claim
against the tenant (absent collateral securing the claim). The claim would be
limited to the unpaid rent reserved under the lease for the periods prior to
the bankruptcy petition (or earlier surrender of the leased premises) which are
unrelated to the rejection, plus the greater of one year's rent or 15% of the
remaining reserved rent (but not more than three years' rent). Notwithstanding
provisions in the lease prohibiting assignment, if the tenant assigns the
lease, it may assign such lease to another entity which could be less
creditworthy than such tenant may have been at the time of origination of the
related loan.
CONCENTRATION OF MORTGAGE LOANS
The impact of losses on individual mortgage loans will be more severe in
mortgage pools consisting of relatively few mortgage loans with large
outstanding principal balance.
ALL MORTGAGE LOANS
<TABLE>
<CAPTION>
AGGREGATE % OF
CUT-OFF DATE INITIAL POOL
BALANCE BALANCE
-------------- -------------
<S> <C> <C>
Largest Single Mortgage Loan ........................... $147,597,677 7.9%
Largest 5 Mortgage Loans(1) ............................ $495,919,618 26.6%
Largest 10 Mortgage Loans(1) ........................... $655,225,140 35.2%
Largest Related-Borrower Concentration(2) .............. $ 62,362,331 3.4%
Next Largest Related-Borrower Concentration(2) ......... $ 60,517,392 3.3%
</TABLE>
- ----------
(1) Includes cross-collateralized mortgage loans.
(2) Excluding single mortgage loans.
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GROUP 1 LOANS
<TABLE>
<CAPTION>
% OF
GROUP 1 LOANS
AGGREGATE AGGREGATE % OF
CUT-OFF DATE CUT-OFF DATE INITIAL POOL
BALANCE BALANCE BALANCE
-------------- -------------- -------------
<S> <C> <C> <C>
Largest Single Mortgage Loan ...................... $147,597,677 12.1% 7.9%
Largest 5 Mortgage Loans(1) ....................... $419,679,951 34.6% 22.5%
Largest 10 Mortgage Loans(1) ...................... $551,234,891 45.5% 29.6%
Largest Related-Borrower Concentration(2) ......... $ 60,517,392 5.0% 3.3%
Next Largest Related-Borrower
Concentration(2) ................................. $ 38,432,633 3.2% 2.1%
</TABLE>
- ----------
(1) Includes cross-collateralized mortgage loans.
(2) Excluding single mortgage loans.
GROUP 2 LOANS
<TABLE>
<CAPTION>
AGGREGATE % OF % OF
CUT-OFF DATE GROUP 2 LOANS INITIAL POOL
BALANCE AS OF CUT-OFF DATE BALANCE
-------------- -------------------- -------------
<S> <C> <C> <C>
Largest Single Mortgage Loan ...................... $ 79,836,798 12.3% 4.3%
Largest 5 Mortgage Loans(1) ....................... $185,360,314 28.5% 10.0%
Largest 10 Mortgage Loans(1) ...................... $244,990,348 37.7% 13.2%
Largest Related-Borrower Concentration(2) ......... $ 43,954,407 6.8% 2.4%
Next Largest Related-Borrower
Concentration(2) ................................. $ 23,929,698 3.7% 1.3%
</TABLE>
- ----------
(1) Includes cross-collateralized mortgage loans.
(2) Excluding single mortgage loans.
A concentration of mortgaged property types or of mortgage loans with the
same borrower or related borrowers also can pose increased risks. For example,
if a person that owns or controls several mortgaged properties (whether or not
all of them secure mortgage loans in the mortgage pool) experiences financial
difficulty at one mortgaged property, it could defer maintenance at one
mortgaged property in order to satisfy current expenses with respect to the
first mortgaged property, or it could attempt to avert foreclosure by filing a
bankruptcy petition that might have the effect of interrupting debt service
payments on the mortgage loans in the mortgage pool (subject to the Master
Servicer's obligation to make P&I Advances) for an indefinite period. In
addition, mortgaged properties owned by the same borrower or related borrowers
are likely to have common management, increasing the risk that financial or
other difficulties experienced by the property manager could have a greater
impact on the pool of mortgage loans.
With respect to concentration of borrowers of the total mortgage pool:
o 26 groups of mortgage loans have borrowers related to each other and
such mortgage loans represent, in the aggregate, approximately 19.8% of
the Initial Pool Balance. Each such group of mortgage loans represents
less than 5% of the Initial Pool Balance.
o 1 group of 3 mortgage loans (those mortgage loans designated "Related
Borrower Group A" on Annex A hereto) has borrowers related to each
other and such mortgage loans represent, in the aggregate,
approximately 3.4% of the Initial Pool Balance. The first such mortgage
loan has 5 notes which are cross-collateralized and cross-defaulted
with each other. The second such mortgage loan has 5 notes which are
cross-collateralized and cross-defaulted with each other. The borrower
for the third such mortgage loan is affiliated with the borrower on the
two mortgage loans but is a separate borrower and the loans are not
cross-collateralized or cross-defaulted.
o 1 other group of 4 mortgage loans (those mortgage loans designated
"Related Borrower Group B" on Annex A hereto) has borrowers related to
each other and such mortgage loans represent, in the aggregate,
approximately 3.3% of the Initial Pool Balance.
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o 23 mortgage loans, representing approximately 29.5% of the Initial Pool
Balance, are secured by more than one mortgaged property.
o 8 groups of 26 mortgage loans, representing approximately 7.4% of the
Initial Pool Balance, are cross-collateralized and cross-defaulted with
each other.
The terms of many of the mortgage loans require that the borrowers be
single-purpose entities and, in most cases, such borrowers' organizational
documents or the terms of the mortgage loans limit their activities to the
ownership of only the related mortgaged property or properties and limit the
borrowers' ability to incur additional indebtedness. Such provisions are
designed to mitigate the possibility that the borrower's financial condition
would be adversely impacted by factors unrelated to the mortgaged property and
the mortgage loan in the pool. However, we cannot assure you that such
borrowers will comply with such requirements. Further, in many cases such
borrowers are not required to observe all covenants and conditions which
typically are required in order for such borrowers to be viewed under standard
rating agency criteria as "special purpose entities." See "Certain Legal
Aspects of the Mortgage Loans--Anti-Deficiency Legislation; Bankruptcy Laws" in
the prospectus.
See "Description of the Mortgage Pool--Significant Mortgage Loans" in this
prospectus supplement.
RISKS RELATING TO ENFORCEABILITY OF CROSS-COLLATERALIZATION
As described above, 8 groups of mortgage loans, representing approximately
7.4% of the Initial Pool Balance, are cross-collateralized with other mortgage
loans in the mortgage pool. Cross-collateralization arrangements involving more
than one borrower could be challenged as fraudulent conveyances by creditors of
the related borrower in an action brought outside a bankruptcy case or, if such
borrower were to become a debtor in a bankruptcy case, by the borrower's
representative.
A lien granted by such a borrower entity could be avoided if a court were
to determine that:
(i) such borrower was insolvent when it granted the lien, was rendered
insolvent by the granting of the lien, or was left with inadequate capital
after the lien was granted; and
(ii) such borrower did not receive fair consideration or reasonably
equivalent value when it allowed its mortgaged property or properties to be
encumbered by a lien securing the entire indebtedness.
Among other things, a legal challenge to the granting of the liens may
focus on the benefits realized by such borrower from the respective mortgage
loan proceeds, as well as the overall cross-collateralization. If a court were
to conclude that the granting of the liens was an avoidable fraudulent
conveyance, that court could:
(i) subordinate all or part of the pertinent mortgage loan to existing or
future indebtedness of that borrower;
(ii) recover payments made under that mortgage loan; or
(iii) take other actions detrimental to the holders of the certificates,
including, under certain circumstances, invalidating the mortgage loan or
the mortgages securing such cross-collateralization.
RISKS PARTICULAR TO RETAIL PROPERTIES
117 mortgaged properties, representing approximately 24.1% of the Initial
Pool Balance, are retail properties. In addition to risks generally associated
with commercial real estate, retail properties face the following risks:
o adverse changes in consumer spending patterns;
o local competitive conditions (such as an increased supply of retail
space or the construction of other shopping centers);
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o other forms of retailing (such as direct mail, video shopping networks
and selling through the Internet, which reduce merchants' need for
store space);
o the quality and philosophy of management;
o the attractiveness of the properties and the surrounding neighborhood
to tenants and their customers;
o the public perception of the safety in the neighborhood; and
o the need to make major repairs or improvements to satisfy major
tenants.
The presence or absence of an "anchor tenant" in a shopping center also
can be important, because anchors play a key role in generating customer
traffic and making a center desirable for other tenants. While there is no
strict definition of an "anchor tenant," it is generally understood that a
retail anchor tenant is larger in size and is vital in attracting customers to
a retail property, whether or not it is located on the related mortgaged
property. An anchor tenant may cease operations at a retail property because it
decides not to renew a lease, becomes insolvent or simply goes out of business
and other tenants at retail properties may be entitled to terminate their
leases if an anchor tenant ceases operations.
If anchor stores in a mortgaged property were to close, the related
borrower may be unable to replace those anchors in a timely manner or without
suffering adverse economic consequences. It is impossible to predict whether
any particular anchor tenants will continue to occupy their current space.
All of these circumstances and events may increase the possibility that a
borrower will be unable to meet its obligations under its mortgage loan.
RISKS PARTICULAR TO HOTEL PROPERTIES
73 of the mortgaged properties, representing approximately 16.7% of the
Initial Pool Balance, are hotel properties. In addition to risks generally
associated with commercial real estate, the following specific risks are
relevant to hotel properties:
o income from a hotel property may decline relatively quickly if economic
or competitive conditions worsen, because such income is primarily
generated by room occupancy, and room occupancy is usually for a short
period of time;
o daily exposure to market conditions increases the sensitivity of a
hotel's performance to economic cycles;
o relatively small decreases in revenue can cause significant declines in
net cash flow because of hotel properties' relatively high operating
costs;
o sensitivity to competition may require more frequent improvements and
renovations than are required for other properties;
o if a hotel is affiliated with a regional, national or international
chain, changes in the public perception of the chain and/or
deterioration in the financial health of the franchisor may affect the
income generated by the hotel; and
o operation of certain hotels is seasonal and, accordingly, the hotel's
income will fluctuate during the year.
The liquor licenses for some of these properties may be held by the
property manager rather than by the related borrower. The laws and regulations
relating to liquor licenses generally prohibit the transfer of such licenses to
any person. In the event of a foreclosure of a hotel property, the Trustee, the
Special Servicer or a purchaser in a foreclosure sale would likely have to
apply for a new license, which might not be granted.
All of these conditions and events may increase the possibility that a
borrower will be unable to meet its obligations under its mortgage loan.
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<PAGE>
RISKS PARTICULAR TO OFFICE PROPERTIES
52 mortgaged properties, representing approximately 16.2% of the Initial
Pool Balance, are office properties. In addition to risks generally associated
with commercial real estate, the following factors may affect operations of
office buildings:
o adverse changes in population, patterns of telecommuting and sharing of
office space, and employment growth (all of which affect demand for
office space);
o local competitive conditions (such as increased supply of office space
or the construction of new, competitive office buildings);
o the quality of the building's tenants and the philosophy of management;
o the attractiveness of the properties and the surrounding area to
tenants and their customers or clients;
o the public perception of safety in the neighborhood; and
o the need to make major repairs or improvements to satisfy major
tenants.
In addition, an economic decline in the business operated by tenants can
affect a building and cause one or more significant tenants to cease
operations. A tenant may decide not to renew a lease, may become insolvent and
unable to meet its lease obligations or may simply go out of business. The risk
of an economic decline is particularly severe for office properties with a
single tenant or several tenants in the same industry.
All of these conditions and events may increase the possibility that a
borrower will be unable to meet its obligations under its mortgage loan.
RISKS PARTICULAR TO MULTIFAMILY RENTAL PROPERTIES
72 mortgaged properties, representing approximately 15.8% of the Initial
Pool Balance, are multifamily rental properties. The following conditions and
events may reduce rent payments and occupancy levels:
o adverse economic conditions, such as unemployment;
o construction of additional housing units;
o local military base closings;
o national and local politics, including current or future rent
stabilization and rent control laws and agreements; and
o changes in the characteristics of a neighborhood over time or in
relation to newer developments.
Other circumstances also may increase the possibility that a borrower will
be unable to meet its obligations under its mortgage loan, such as:
o the level of mortgage interest rates may encourage tenants in
multifamily rental properties to move out and purchase single-family
housing; and
o the cost of operating a multifamily property may increase, including
the cost of utilities and the costs of required capital expenditures.
RISKS PARTICULAR TO INDUSTRIAL PROPERTIES
56 mortgaged properties, representing approximately 13.1% of the Initial
Pool Balance, are industrial properties (including refrigerated
distribution/warehouse facilities). In addition to risks generally associated
with commercial real estate, the following specific risks are relevant to
industrial properties:
o reduced demand for industrial space because of a decline in a
particular industry segment may hurt operations of such properties;
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o an industrial property that suited the needs of its original tenant may
be difficult to relet to another tenant or may become functionally
obsolete compared to newer properties;
o the availability of labor sources or a change in the proximity of
supply sources may impair such properties' operations; and
o industrial properties may be more likely to suffer damage from
environmental hazards.
All of these conditions and events may increase the possibility that a borrower
will be unable to meet its obligations under its mortgage loan.
RISKS ASSOCIATED WITH REFRIGERATED DISTRIBUTION/WAREHOUSE FACILITIES
The largest loan in the pool, the Americold Pool Loan, representing
approximately 7.93% of the Initial Pool Balance, is secured by refrigerated
distribution/warehouse facilities. Significant factors determining the value of
such cold storage facilities are:
o the quality and mix of tenants;
o the location of the facility (tenants frequently incur transportation
costs which are significantly greater than warehousing costs);
o site design and adaptability of the facilities (site characteristics
which are valuable to such facilities include high clear heights, wide
column spacing, a large number of bays and large bay depths,
divisibility, large minimum truck turning radii and overall
functionality and accessibility);
o the availability of labor sources, proximity to supply sources and
customers and accessibility to rail lines, major roadways and other
distribution channels; and
o a facility that suited the needs of its original tenant may be
difficult to relet to another tenant or may become functionally
obsolete compared to newer properties.
Cold storage facilities are often located near or adjacent to tenants'
processing facilities and in such cases, a majority of and, in some cases, the
entire property is devoted to the use of a single tenant or a small number of
major tenants or commodities. An interruption or reduction in the business
received by such properties from such tenants or a reduction in demand for such
commodities could result in a decrease in the sales and overall profitability
at cold storage facilities.
The regional distribution and regional production facilities of cold
storage facilities may be adversely affected by a decline in the general
economic condition in the regions in which such facilities are located. In
addition, warehousing sales can be seasonal, depending on the timing and
availability of crops grown for frozen food production and the seasonal
build-up of certain products for holiday consumption, and this seasonality can
be expected to cause periodic fluctuations in a cold storage facility's
revenues and operating expenses.
RISKS ASSOCIATED WITH MOVIE THEATER PROPERTIES
The EPT Pool Loan, representing approximately 5.6% of the Initial Pool
Balance, is secured by eight megaplex movie theater properties. In addition to
the risks generally associated with commercial real estate, movie theater
properties face the following risks:
o adverse changes in movie theater patronage, including the seasonal
nature of movie theater attendance, which may cause a movie theater's
income to fluctuate during the year;
o movie theater properties are "special purpose" properties that cannot
be readily converted to a new use;
o local competitive conditions, including increased number of competing
theaters and competition from other sources of entertainment; and
o the condition of the local area, including other businesses which
attract customers to the area.
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All these conditions and events may increase the possibility that the EPT
Pool Borrower will be unable to meet its obligations under the EPT Pool Loan.
RISKS PARTICULAR TO HEALTHCARE-RELATED PROPERTIES
11 mortgaged properties, representing approximately 5.0% of the Initial
Pool Balance, are healthcare-related facilities. In addition to risks generally
associated with commercial real estate, the following are some of the
conditions that can adversely impact the performance of healthcare-related
facilities:
o most healthcare-related facilities (including hospitals and nursing
facilities) receive significant revenues from government reimbursement
programs, primarily Medicaid and Medicare, and payments under these
programs are subject to reductions as a result of statutory and
regulatory changes, changes in reimbursement methodologies, retroactive
rate adjustments, administrative rulings, policy interpretations,
delays by payment intermediaries and government funding restrictions;
o governmental payors have employed cost-containment measures that limit
payments to healthcare providers;
o legislative efforts to further decrease government healthcare
expenditures are expected to continue and could have a material adverse
impact upon the healthcare-related facilities;
o non-government payors have sought to transfer the financial risk of
treating patients to providers and healthcare-related facilities, which
has created profitability pressures in the healthcare industry;
o the care delivery, billing and reimbursement processes may be
particularly affected by any Year 2000 computer problems experienced by
payors or the healthcare-related facilities;
o healthcare-related facilities are highly regulated by federal, state,
commonwealth and local law; and such regulations could increase the
cost of operation and limit growth;
o failure to comply with any of the numerous laws and regulations
applicable to healthcare-related facilities could also result in
monetary penalties, civil or criminal sanctions or appointment of a
receiver or temporary manager, the suspension or termination of the
operator from government payment programs, termination of payments or
other actions that could severely impair the ability to make payments
on a mortgage loan; and
o continued focus by government authorities on abuses by
healthcare-related facilities and providers for billing processes,
filings, and relationships among providers, suppliers, and facilities
could increase the possibility that a healthcare facility's operations
are found to be violative of the law.
The healthcare-related property securing 1 mortgage loan, representing
approximately 0.5% of the Initial Pool Balance, has been determined by the
County of Los Angeles, Department of Health Services, Public Health Programs
and Services, Health Facilities Division ("CDHS"), to be not in substantial
compliance with two conditions for participation in the Medicare and Medicaid
programs (which account for a majority of the facility's revenues). The
facility is contesting certain of the CDHS findings. However, the CDHS
determination has resulted in the imposition of a $3,000 fine (which is being
contested by the facility). The determination also could result in denial of
payment for new admissions to such facility if the facility fails to submit an
acceptable plan of correction for the deficiencies and if the Department of
Health and Human Services, Health Care Financing Administration ("HCFA"),
determines that denial of payments for new admissions is warranted. HCFA could
also terminate the facilities' Medicare and Medicaid provider agreements if the
facility is not in substantial compliance by January 27, 1999.
Also, federal and state laws and regulations generally prohibit Medicare
and Medicaid reimbursements to any person other than the provider of the
related medical goods and services. Accordingly, after a foreclosure on a
healthcare-related facility, none of the Trustee, the Special Servicer or a
subsequent lessee or operator of the mortgaged property would receive directly
any federal or state government
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reimbursement payments for services furnished at the facility prior to
foreclosure. This would increase the risk of loss on a healthcare-related
facility after foreclosure.
Furthermore, if there is a foreclosure or other proposed transfer of a
healthcare-related facility, the Trustee (or Special Servicer) or a purchaser
in a foreclosure sale or other transferee may have no rights under any required
licenses and regulatory approvals and may have to apply in its own right for
such licenses and approvals, which may be impossible to obtain. In addition,
healthcare-related facilities are generally "special purpose" properties that
cannot be readily converted to a new use. Transfers of healthcare-related
facilities are subject to regulatory approvals under state, commonwealth and in
some cases federal, law not required for transfers of other types of commercial
operations and other types of real estate. All of these factors may adversely
affect the liquidation value of healthcare-related properties upon foreclosure.
NONRECOURSE MORTGAGE LOANS
Subject to certain exceptions for liability in connection with breaches of
mortgage loan terms, each mortgage loan is a nonrecourse loan. In the event of
a default, only the mortgaged property, and not other assets of the borrower,
would be available to satisfy the debt. Consequently, payment of each mortgage
loan prior to maturity depends primarily on the net operating income of the
mortgaged property. At maturity (whether as scheduled or upon the acceleration
of maturity after default), payment on each mortgage loan depends on the market
value of the mortgaged property at that time, or the ability to refinance the
mortgage loan. No mortgage loan is insured or guaranteed by any governmental
agency or by the Seller, the Trustee, the Master Servicer, the Special Servicer
or any loan originator or loan seller, or any of their respective affiliates.
RISKS OF DIFFERENT TIMING OF MORTGAGE LOAN AMORTIZATION
As mortgage loans pay down or properties are released, the remaining
mortgage loans may face a higher risk with respect to the diversity of property
types and property characteristics and with respect to the number of different
borrowers. See the tables entitled "Distribution of Year of Maturity" in Annex
A to this prospectus supplement for a description of the maturity dates of the
mortgage loans. Because principal on the offered certificates is payable in
sequential order, and a class receives principal only after the preceding class
or classes have paid off, classes that have a lower sequential priority are
more likely to face the risk of concentration discussed under "--Concentration
of Mortgage Loans" above than classes with a higher sequential priority.
BANKRUPTCY PROCEEDINGS ENTAIL CERTAIN RISKS
Under the Bankruptcy Code, the filing of a petition in bankruptcy by or
against a borrower will stay the sale of the real property owned by that
borrower, as well as the commencement or continuation of a foreclosure action.
In addition, if a court determines that the value of the mortgaged property is
less than the principal balance of the mortgage loan it secures, the court may
reduce the amount of secured indebtedness to the then-value of the mortgaged
property. Such an action would make the lender a general unsecured creditor for
the difference between the then-value and the amount of its outstanding
mortgage indebtedness. A bankruptcy court also may: (i) grant a debtor a
reasonable time to cure a payment default on a mortgage loan; (ii) reduce
monthly payments due under a mortgage loan; (iii) change the rate of interest
due on a mortgage loan; or (iv) otherwise alter the mortgage loan's repayment
schedule.
Moreover, upon the filing of a petition in bankruptcy by, or on behalf of,
a junior lienholder may stay the senior lienholder from taking action to
foreclose out the junior lien. Certain of the borrowers or their affiliates
have subordinate or mezzanine debt secured by the related mortgaged properties.
See "--Other Financings" below. Additionally, the borrower's trustee or the
borrower, as debtor-in-possession, has certain special powers to avoid,
subordinate or disallow debts. In certain circumstances, the claims of the
trustee may be subordinated to financing obtained by a debtor-in-possession
subsequent to its bankruptcy.
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Under the Bankruptcy Code, the lender will be stayed from enforcing a
borrower's assignment of rents and leases. The Bankruptcy Code also may
interfere with the Trustee's ability to enforce lockbox requirements. The legal
proceedings necessary to resolve these issues can be time consuming and may
significantly delay the receipt of rents. Rents also may escape an assignment
to the extent they are used by the borrower to maintain the mortgaged property
or for other court authorized expenses.
As a result of the foregoing, the Trustee's recovery with respect to
borrowers in bankruptcy proceedings may be significantly delayed, and the
aggregate amount ultimately collected may be substantially less than the amount
owed.
GEOGRAPHIC CONCENTRATION
This table shows the states with the five largest concentrations of
mortgaged properties:
ALL MORTGAGE LOANS
<TABLE>
<CAPTION>
AGGREGATE
CUT-OFF DATE % OF INITIAL
STATE BALANCE POOL BALANCE
- -------------- -------------- -------------
<S> <C> <C>
California $294,077,203 15.8%
New York $163,395,938 8.8%
Texas $157,716,858 8.5%
Virginia $127,968,671 6.9%
Ohio $ 98,318,576 5.3%
</TABLE>
GROUP 1 LOANS
<TABLE>
<CAPTION>
AGGREGATE % OF
CUT-OFF DATE GROUP 1 LOANS
STATE BALANCE AS OF CUT-OFF DATE
- -------------- -------------- -------------------
<S> <C> <C>
California $163,984,824 13.5%
Virginia $118,342,168 9.8%
New York $109,492,106 9.0%
Texas $101,517,481 8.4%
Washington $ 68,086,173 5.6%
</TABLE>
GROUP 2 LOANS
<TABLE>
<CAPTION>
AGGREGATE % OF
CUT-OFF DATE GROUP 2 LOANS
STATE BALANCE AS OF CUT-OFF DATE
- -------------- -------------- -------------------
<S> <C> <C>
California $130,092,379 20.0%
Ohio $ 60,711,266 9.3%
Texas $ 56,199,377 8.6%
New York $ 53,903,832 8.3%
Maryland $ 35,704,975 5.5%
</TABLE>
Concentrations of mortgaged properties in geographic areas may increase
the risk that adverse economic or other developments or natural disaster
affecting a particular region of the country could increase the frequency and
severity of losses on mortgage loans secured by those properties. The following
geographic factors could impair the borrowers' ability to repay the mortgage
loans:
o economic conditions in regions where the borrowers and the mortgaged
properties are located;
o conditions in the real estate market where the mortgaged properties are
located;
o changes in local governmental rules and fiscal policies; and
o acts of nature (including earthquakes and floods, which may result in
uninsured losses).
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ENVIRONMENTAL RISKS
Under federal, state and local environmental laws and regulations, a
current or previous owner or operator of real property may be liable for the
costs of removal and remediation of hazardous substances affecting its
property. These laws often impose liability whether or not the owner or
operator knew of, or was responsible for, the presence of such hazardous
substances. The cost of any required remediation and the owner's liability is
generally unlimited and could exceed the value of the property and/or the
aggregate assets of the owner. In addition, the presence of unremediated
hazardous substances may impair the value of a property. Certain laws impose
liability specifically for release of asbestos into the air, and third parties
may seek recovery from property owners or operators for injuries associated
with exposure to asbestos.
Under some environmental laws, such as the federal Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended
("CERCLA"), as well as some state laws, a secured lender (such as the trust)
may be liable as an "owner" or "operator" for the costs of dealing with
hazardous substances affecting a borrower's property, if agents or employees of
the lender have participated in the management of the borrower's property. This
liability could exist even if a previous owner caused the environmental damage.
The trust's potential exposure to liability for cleanup costs may increase if
the trust actually takes possession of a borrower's property, or control of its
day-to-day operations, as for example through the appointment of a receiver.
An environmental site assessment ("ESA") of each of the Mortgaged
Properties was performed (or prior assessments were updated) not more than 18
months prior to the Cut-Off Date, except with respect to 3 mortgage loans,
representing approximately 0.8% of the Initial Pool Balance. In certain cases,
environmental testing in addition to the ESA was performed. With respect to a
number of the mortgaged properties, the ESAs revealed the existence of
asbestos-containing materials, possible radon gas and other environmental
matters. None of the environmental matters constituted a material violation of
any environmental law in the judgment of the assessor, except with respect to
one mortgage loan, representing 1.1% of the Initial Pool Balance, secured by
the site of a former General Motors assembly line. General Motors Corporation
has provided an indemnification for clean-up costs that extends until the later
of two years from loan closing or two years from the closure of the state's
enforcement action. General Motors Corporation is required to remediate
contamination levels acceptable to state environmental regulatory authorities,
and commenced such remediation in 1996.
The ESAs for the Americold Pool Properties recommended additional
investigation, removal and the possible remediation of petroleum contamination
in the soil and ground water as a result of underground storage tanks at 3
Americold Pool Properties, and the remediation of lead-contaminated soil and
transformer fluid at 2 Americold Pool Properties.
It is possible that the ESAs did not reveal all environmental liabilities,
or that there are material environmental liabilities of which we are not aware.
Also, the environmental condition of the mortgaged properties in the future
could be affected by tenants and occupants or by third parties unrelated to the
borrowers. For a more detailed description of environmental matters that may
affect the Mortgaged Properties, see "Certain Legal Aspects of the Mortgage
Loans--Environmental Risks" in the prospectus.
COSTS OF COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT
Under the Americans with Disabilities Act of 1990 (the "ADA"), all public
accommodations are required to meet certain federal requirements related to
access and use by disabled persons. To the extent the mortgaged properties do
not comply with the ADA, the borrowers are likely to incur costs of complying
with the ADA. In addition, noncompliance could result in the imposition of
fines by the federal government or an award of damages to private litigants. In
connection with the origination of the related mortgage loan, property
inspection reports were generally obtained which included limited information
regarding compliance with the ADA. A portion of funds in the capital reserve
escrow accounts established by certain borrowers are required to be used for
costs associated with complying with the ADA. There can be no assurance that
the related mortgaged properties will comply with the ADA in all respects once
the related conditions are remedied, that such property-inspection reports
identified all risks or conditions relating to the ADA or that amounts reserved
(if any) are sufficient to pay such costs.
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LITIGATION AND OTHER MATTERS AFFECTING THE MORTGAGED PROPERTIES OR BORROWERS
One mortgage loan, representing approximately 1.0% of the Initial Pool
Balance, is subject to pending litigation. The subject lawsuit involves claims
by certain partners of the borrower against other partners alleging (i)
misappropriation of refinancing proceeds belonging to the partnership and
distribution of those proceeds to affiliates of the managing general partner;
(ii) failure to honor the partnership agreement's buy/sell provision; and (iii)
payment of excessive management fees and reimbursement of expenses of the
managing general partner beyond those permitted by the partnership agreement.
The plaintiffs seek, among other things, dissolution of the partnership. We are
not able to predict the outcome of this litigation. Resolution of such
litigation in favor of the plaintiff partners may result in a prepayment of the
mortgage loan (if the partnership is dissolved and the mortgaged property
liquidated) or may otherwise impact the income derived from the mortgaged
property, which may in turn impact the rate and timing of distributions to
certificateholders.
There may be other legal proceedings pending or threatened from time to
time against the borrowers and the managers of the mortgaged properties and
their affiliates arising out of their ordinary business. Any such litigation
may materially impair distributions to certificateholders if borrowers must use
property income to pay judgments or litigation costs.
In addition, in the event the owner of a borrower experiences financial
problems, we cannot assure you that such owner would not attempt to take
actions with respect to the mortgaged property that may adversely affect the
borrower's ability to fulfill its obligations under the related mortgage loan.
OTHER FINANCINGS
The mortgage loans generally prohibit incurring any additional debt
secured by the mortgaged property without the consent of the lender. With
respect to 8 mortgage loans, representing approximately 10.5% of the Initial
Pool Balance, each borrower has debt secured by the related mortgaged property
or affiliates of the borrowers have obtained a loan secured by the equity
interests in such borrowers (in each case, "Subordinate Debt"), in addition to
the debt owed under the mortgage loan. The AIMCO Multifamily Pool Borrower has
Subordinate Debt with an original principal balance of $29,877,414. The
borrower under another mortgage loan (identified on Annex A to this prospectus
supplement as "Washington Monarch Hotel"), representing approximately 2.5% of
the Initial Pool Balance, has Subordinate Debt with an original principal
balance of $8,250,000. In addition as described under "The Mortgage Pool--
Significant Mortgage Loans--Americold Pool: The Borrower; the Properties--The
Loan," each of the Americold Pool Properties secures a pari passu mortgage loan
not included in the mortgage pool with an original principal balance of
$148,500,000. Generally, each holder of Subordinate Debt has executed an
agreement pursuant to which such holder of Subordinate Debt has agreed to
subordinate such Subordinate Debt to the applicable mortgage loan. In addition,
under certain circumstances, the terms of certain of the mortgage loans would
allow the related borrowers to incur additional Subordinate Debt or debt that
is not secured by the related mortgaged property or the equity interests in the
borrower.
When a mortgage loan borrower (or its constituting members) also has one
or more other outstanding loans (even if subordinated loans), the trust is
subjected to additional risk. The borrower may have difficulty servicing and
repaying multiple loans. The existence of another loan generally also will make
it more difficult for the borrower to obtain refinancing of the mortgage loan
and may thereby jeopardize repayment of the mortgage loan. Moreover, the need
to service additional debt may reduce the cash flow available to the borrower
to operate and maintain the mortgaged property.
Additionally, if the borrower (or its constituent members) defaults on the
mortgage loan and/or any other loan, actions taken by other lenders could
impair the security available to the trust. If a junior lender files an
involuntary petition for bankruptcy against the borrower (or the borrower files
a voluntary petition to stay enforcement by a junior lender), the trust's
ability to foreclose would be automatically stayed, and
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principal and interest payments might not be made during the course of the
bankruptcy case. The bankruptcy of another lender also may operate to stay
foreclosure by the trust.
Further, if another loan secured by the mortgaged property is in default,
the other lender may foreclose on the mortgaged property, absent an agreement
to the contrary, thereby causing a delay in payments and/or an involuntary
repayment of the mortgage loan prior to maturity. The trust may also be subject
to the costs and administrative burdens of involvement in foreclosure
proceedings or related litigation.
EFFECT OF BORROWER DELINQUENCIES AND DEFAULTS
The rate and timing of mortgage loan delinquencies and defaults will
affect:
o the aggregate amount of distributions on the offered certificates;
o the yield to maturity of the offered certificates;
o the rate of principal payments on the offered certificates; and
o the weighted average lives of the offered certificates.
When defaults occur, a borrower bankruptcy filing, lengthy foreclosure
proceedings or adverse local market conditions may reduce or delay recoveries.
Defaults can also have the effect of accelerating repayment of principal, if a
servicer declares the mortgage loan payable in full after the default (assuming
the amounts owed are actually collected).
Generally, the mortgage loans were originated within twelve months of the
Cut-Off Date. Therefore, the mortgage loans do not have a long standing payment
history.
If you assume a rate of default and an amount of losses on the mortgage
loans to calculate your expected yield to maturity and the actual default rate
or amount of losses allocable to your class of certificates is higher, your
actual yield to maturity will be lower than expected. Under certain extreme
scenarios, the yield could be negative. The timing of any loss on a liquidated
mortgage loan will also affect the actual yield to maturity of the class of
offered certificates to which any of such loss is allocable, even if the
overall rate of defaults and severity of losses are consistent with your
expectations. In general, the earlier you bear a loss, the greater is the
effect on your yield to maturity. Losses will also reduce the notional amount
of the Class X Certificates, and notwithstanding their senior priority in
interest distributions with the Class A Certificates, the amount and timing of
losses could have a significant adverse effect on the yield of the Class X
Certificates.
Also, if:
o a servicer agrees to an extension of the maturity of a mortgage loan
that the related borrower cannot pay in full when due, or
o the related borrower does not repay a mortgage loan with a
hyperamortization feature by its Anticipated Repayment Date,
the extension of maturity will increase the weighted average life of your
certificates and reduce your yield to maturity.
As described in more detail under "The Pooling Agreement--Advances," the
Master Servicer will receive interest on unreimbursed advances of principal,
interest and servicing expenses. It must recover advances either from amounts
received on the mortgage loan for which it made such advances (in the form of
late payments, liquidation proceeds, insurance proceeds, condemnation proceeds
or amounts paid in connection with the purchase of such mortgage loan, or, if
the advance is nonrecoverable, from the trust. Interest on the advance accrues
until the Master Servicer recovers the advance. The Master Servicer's right to
receive interest is prior to the rights of certificateholders to receive
distributions on the certificates. Therefore, because of the accrual of such
interest, losses may be allocated to the offered certificates.
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<PAGE>
Also, with respect to each mortgage loan serviced by the Special Servicer,
the Special Servicer will receive certain compensation to which the Special
Servicer is entitled prior to the right of certificateholders to receive
distributions on the certificates. Consequently, it is possible that shortfalls
resulting from such compensation will be allocated to the offered certificates
with respect to any mortgage loan which is a specially serviced mortgage loan.
See "The Pooling Agreement--Special Servicer" in this prospectus supplement.
Even if losses do not occur, delinquencies and defaults on the mortgage
loans may significantly delay the receipt of payments by an investor, if
advances of principal and interest or the subordination of another class of
certificates does not fully offset the delinquency or default. The Special
Servicer can extend and modify mortgage loans that are in default or nearly in
default, including extending the date on which a Balloon Payment is due. The
Special Servicer must comply with the Pooling Agreement's requirements for
those modifications. The Master Servicer's obligation to make advances of
principal and interest on a mortgage loan with a delinquent Balloon Payment is
limited as described under "The Pooling Agreement--Advances" herein. Until
liquidation of a mortgage loan with a delinquent Balloon Payment, investors
entitled to principal will receive, in connection with that mortgage loan, only
payments made by the borrower, if any, and any advance of principal and
interest made by the Master Servicer. Consequently, any delay in the receipt of
a Balloon Payment will extend the weighted average life of the offered
Certificates.
In addition, 19 mortgage loans, representing approximately 27.4% of the
Initial Pool Balance, require the borrower to pay interest (which may be
capitalized) at an increased rate after a date (each, an "Anticipated Repayment
Date") specified in the mortgage loan documents, and to use excess property
cash flow to pay mortgage loan principal after that date. Though the borrower
can avoid these additional payments by prepaying the mortgage loan, if it fails
to do so it may be unable to pay the Balloon Payment at maturity resulting from
the increased interest.
BALLOON PAYMENTS
267 of the mortgage loans, representing approximately 91.8% of the Initial
Pool Balance, are expected to have substantial remaining principal balances as
of their respective Anticipated Repayment Dates or stated maturity dates. 248
of such mortgage loans, representing approximately 64.4% of the Initial Pool
Balance, require amounts of principal due and payable on their maturity dates
(each such amount, after application of monthly payments due on or prior to
their maturity dates, a "Balloon Payment") at stated maturity, and 19 of such
mortgage loans, representing approximately 27.4% of the Initial Pool Balance,
would require a substantial payment at their Anticipated Repayment Date.
Mortgage loans with substantial remaining principal balances at their stated
maturity (i.e., "balloon loans") involve greater risk than fully amortizing
loans.
A borrower's ability to repay a loan on its Anticipated Repayment Date or
stated maturity date typically will depend upon its ability either to refinance
the loan or to sell the mortgaged property at a price sufficient to permit
repayment. A borrower's ability to achieve either of these goals will be
affected by a number of factors, including:
o the availability of, and competition for, credit for commercial real
estate projects, which fluctuate over time;
o the prevailing interest rates;
o the fair market value of the related properties;
o the borrower's equity in the related properties;
o the borrower's financial condition;
o the operating history and occupancy level of the property;
o the tax laws; and
o prevailing general and regional economic conditions.
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<PAGE>
We cannot assure you that each borrower will have the ability to repay the
remaining principal balances on the pertinent date.
SPECIAL CONSIDERATIONS RELATING TO AIMCO MULTIFAMILY POOL LOAN
The amended bankruptcy reorganization plan pursuant to which the AIMCO
Multifamily Pool Loan, which represents approximately 5.9% of the Initial Pool
Balance, was made, may operate to require court approval for the borrower to
refinance the mortgaged properties or to restructure the AIMCO Multifamily Pool
Loan. Such plan provides that court approval is not required for a
restructuring or refinancing of the secured debt on the mortgaged properties
(which includes the AIMCO Multifamily Pool Loan) if:
(1) such restructuring or refinancing does not increase the aggregate
principal balance of or debt service of the AIMCO Multifamily Pool Loan,
(2) the proceeds of the restructure or refinancing are used to satisfy
the existing secured and unsecured claims against the borrower in the order
and manner provided for in the amended bankruptcy plan, and
(3) certain persons consent in writing to such restructure or refinance.
We cannot assure you that the borrower will be able to meet the conditions
described above. These conditions could accordingly limit the ability of the
borrower to refinance the AIMCO Multifamily Pool Loan. As a result, the
borrower might not be able to repay the AIMCO Multifamily Pool Loan at maturity
without selling the underlying mortgaged properties.
The amended bankruptcy plan could also restrict the ability of the Special
Servicer to restructure or modify the AIMCO Multifamily Pool Loan if the
borrower were unable to pay the AIMCO Multifamily Pool Loan in accordance with
its terms. Therefore, if the AIMCO Multifamily Pool Loan was to become
troubled, the Special Servicer's remedies may be limited to foreclosing on the
mortgaged properties.
Upon a sale of the underlying mortgaged properties, the borrower would be
required to satisfy from the proceeds of such sale the then outstanding
principal balance and all other amounts due and owing under the AIMCO
Multifamily Pool Loan and all amounts due and owing under the subordinated debt
secured by such mortgaged properties. Each of the 15 notes which in the
aggregate evidence the AIMCO Multifamily Pool Loan has an unpaid principal
balance called the AIMCO Multifamily Pool Agreed Valuation Amount (to which the
holders of the Certificates other than the Class Q Certificates are entitled)
and a larger face amount that is payable only in the event of a default under
the AIMCO Multifamily Pool Loan. The difference between the unpaid principal
balance and the larger face amount at all times will aggregate approximately
$42.2 million (the "AIMCO Multifamily Pool Conditional Debt"), and only the
Class Q Certificates are entitled to any payments received in respect of the
AIMCO Multifamily Pool Conditional Debt. The implementation of the AIMCO
Multifamily Pool Conditional Debt arrangement may have allowed certain owners
of the AIMCO Multifamily Pool Borrower to defer to a later date income taxes
that may have otherwise been due if there had been a discharge of the AIMCO
Multifamily Pool Conditional Debt.
If the AIMCO Multifamily Pool Borrower were to pay the AIMCO Multifamily
Pool Loan in accordance with its terms, it would not be required to pay the
AIMCO Multifamily Pool Conditional Debt. As a result, the cancellation of the
AIMCO Multifamily Pool Conditional Debt could create income taxable to certain
owners as ordinary income for federal, state and local income tax purposes in
the year in which the debt is forgiven. Repayment of the AIMCO Multifamily Pool
Agreed Valuation Amount could therefore lead to a significant tax liability.
Even if proceeds from the sale of the mortgaged properties would be sufficient
to repay the AIMCO Multifamily Pool Loan at the AIMCO Multifamily Pool Agreed
Valuation Amount and the other secured indebtedness of the borrower, if the
proceeds are insufficient to also pay the tax liability resulting from the
disposition or sale of the AIMCO Multifamily Pool Properties, the potential tax
liability to the AIMCO Multifamily Pool Borrower or its owners could cause the
borrower to attempt to delay such sale, including the possibility of filing for
bankruptcy protection. This risk may be increased since the borrower does not
meet all the indicia of a special purpose entity. See "Description of the
Mortgage Pool--Significant Mortgage Loans--AIMCO Multifamily Pool: The
Borrower; The Properties" in this prospectus supplement.
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In the event of a default on any of the notes evidencing the AIMCO
Multifamily Pool Loan, the Master Servicer and Special Servicer will be
obligated under the Pooling Agreement to apply payments or other receipts on or
with respect to such note to payment in full of the portion of the note to
which the holders of the Certificates other than the Class Q Certificates are
entitled before payments are applied to the portion representing the AIMCO
Multifamily Pool Conditional Debt, to which the Class Q Certificates are
entitled.
GROUND LEASES AND OTHER LEASEHOLD INTERESTS
21 mortgage loans, representing approximately 21.9% of the Initial Pool
Balance, are secured in whole or in part by leasehold interests. Under Section
365(h) of the Bankruptcy Code, ground lessees may remain in possession of their
leased premises upon the bankruptcy of their ground lessor and the rejection of
the ground lease by the ground lessor or its bankruptcy trustee. The leasehold
mortgages generally provide that the borrower needs the prior approval of the
lender in order to elect to treat the ground lease as terminated because of any
such bankruptcy of, and rejection by, the ground lessor. In the event of a
bankruptcy of a ground lessee/borrower, the Bankruptcy Code permits the ground
lessee/borrower to assume (continue) or reject (terminate) any or all of its
ground leases. In the event of concurrent bankruptcy proceedings involving the
ground lessor and the ground lessee/borrower, the Trustee may be unable to
force the bankrupt ground lessee/borrower to refuse to treat a ground lease
rejected by a bankrupt ground lessor as terminated. In such circumstances, a
ground lease could be terminated notwithstanding lender protection provisions
contained in the lease or in the mortgage.
ATTORNMENT CONSIDERATIONS
Some of the tenant leases, including the anchor tenant leases, contain
attornment provisions that require the tenant to recognize as landlord under
the lease a successor owner of the property following foreclosure. Some of the
leases, including the anchor tenant leases, may be either subordinate to the
liens created by the mortgage loans or else contain a provision that requires
the tenant to subordinate the lease if the mortgagee agrees to enter into a
non-disturbance agreement. In some states, if tenant leases are subordinate to
the liens created by the mortgage loans and such leases do not contain the
attornment provisions described above, such leases may terminate upon the
transfer of the property in a foreclosure. Accordingly, after foreclosure of a
mortgaged property located in such a state, the termination of leases without
attornment provisions could cause a further decline in value of the mortgaged
property, particularly if the tenants were paying above-market rents. If a
mortgage is subordinate to a lease, the lender will not be able to evict a
tenant after foreclosure, unless the lender and the tenant agree otherwise. If
the lease contains provisions inconsistent with the mortgage (e.g., provisions
relating to application of insurance proceeds or condemnation awards), the
provisions of the lease will control.
STATE LAW LIMITATIONS ON REMEDIES
Certain jurisdictions (including California) have laws that prohibit more
than one "judicial action" to enforce a mortgage, and some courts have viewed
the term "judicial action" broadly. The Pooling Agreement will require the
Master Servicer or Special Servicer to obtain legal advice prior to enforcing
any rights under the mortgage loans that relate to properties where the rule
could be applicable. In addition, the Master Servicer or Special Servicer may
be required to foreclose on properties in states where the "one action" rules
apply before foreclosing on properties located in states where judicial
foreclosure is the only permitted method of foreclosure. See "Certain Legal
Aspects of Mortgage Loans--Foreclosure" in the prospectus.
Because of these considerations, the ability of the Master Servicer and
Special Servicer to foreclose on the mortgage loans may be limited by the
application of state laws. Such actions could also subject the Trust Fund to
liability as a "mortgagee-in-possession" or result in equitable subordination
of the claims of the Trustee to the claims of other creditors of the borrower.
The servicers will be required to consider these factors in deciding what
alternative to pursue after a default.
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TAX CONSIDERATIONS RELATING TO FORECLOSURE
If the trust acquires a mortgaged property pursuant to a foreclosure or
deed in lieu of foreclosure, the Special Servicer must retain an independent
contractor to operate the property. Any net income from such operation (other
than qualifying "rents from real property"), or any rental income based on the
net profits of a tenant or sub-tenant or allocable to a non-customary service,
will subject the Lower-Tier REMIC to federal tax (and possibly state or local
tax) on such income at the highest marginal corporate tax rate (currently 35%).
In such event, the net proceeds available for distribution to
certificateholders will be reduced. The Special Servicer may permit the
Lower-Tier REMIC to earn "net income from foreclosure property" that is subject
to tax if it determines that the net after-tax benefit to holders of
certificates is greater than under another method of operating or net leasing
the mortgaged property.
One of the mortgage loans, representing approximately 1.1% of the Initial
Pool Balance, is secured by a hospital in Puerto Rico. At any time subsequent
to the acquisition of a mortgaged property located in Puerto Rico pursuant to a
foreclosure or deed in lieu of foreclosure, the Trust Fund will be subject to
29% Commonwealth of Puerto Rico withholding tax on gross rental income from the
mortgaged property if it is not deemed to be engaged in a trade or business
within Puerto Rico. The Trust Fund could also be subject to taxation of gain or
loss and tax return filing requirements in Puerto Rico upon disposition of such
a mortgaged property. Any such taxes would reduce the net proceeds available to
be distributed to certificateholders in respect of such a defaulted mortgage
loan. You should consult your own tax advisors regarding the specific tax
consequences of ownership of a property located in Puerto Rico by the Trust
Fund.
ZONING COMPLIANCE AND USE RESTRICTIONS
Due to changes in zoning requirements after certain of the mortgaged
properties were constructed, those mortgaged properties may not comply with
current zoning laws, including density, use, parking and set-back requirements.
The operation of these properties is considered to be a "permitted non-
conforming use." This means that the borrower is not required to alter its
structure to comply with the new law; however, the borrower may not be able to
rebuild the premises "as is" in the event of a substantial casualty loss. This
may adversely affect the cash flow of the property following such loss. If a
substantial casualty were to occur, it is expected that insurance proceeds
would be available to pay the mortgage loan in full. Such proceeds may not be
sufficient to pay the mortgage loan in full. In addition, if the mortgaged
property were repaired or restored in conformity with the current law, the
value of the property or the revenue-producing potential of the property may
not be equal to that before the casualty.
In addition, certain of the mortgaged properties are subject to certain
use restrictions imposed pursuant to reciprocal easement agreements or
operating agreements. Such use restrictions include, for example, limitations
on the character of the improvements thereon, limitations affecting noise and
parking requirements, among other things, and limitations on the borrowers'
right to operate certain types of facilities within a prescribed radius. These
limitations could adversely affect the ability of the related borrower to lease
the mortgaged property on favorable terms, thus adversely affecting the
borrower's ability to fulfill its obligations under the related mortgage loan.
EARTHQUAKE INSURANCE, FLOOD AND OTHER INSURANCE
The mortgaged properties may suffer casualty losses due to risks which
were not covered by insurance or for which insurance coverage is inadequate. In
addition, approximately 27.9% of the mortgaged properties (by Initial Pool
Balance) are located in California, Florida and Texas, states that have
historically been at greater risk regarding acts of nature (such as hurricanes,
floods and earthquakes) than other states. We cannot assure you that borrowers
will be able to maintain adequate insurance. Moreover, if construction or any
major repairs are required, changes in laws may materially affect the
borrower's ability to effect such reconstruction or major repairs or may
materially increase the cost thereof.
Recently, certain areas of the United States and Puerto Rico have
experienced hurricanes and/or floods. We have been informed that the hotel
property securing 1 mortgage loan (representing
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approximately 0.07% of the Initial Pool Balance) has sustained damage to
certain of the rooms and general facilities which is in the process of being
restored. However, we cannot assure that the borrower will be able to
completely restore the property. In addition, we cannot assure you that other
properties securing the mortgage loans have not sustained similar damage.
As a result of any of the foregoing, the amount available to make
distributions on your certificates could be reduced.
SPECIAL SERVICER ACTIONS
The Special Servicer may take actions with respect to the servicing of
mortgage loans it services that could adversely affect the holders of some or
all of the classes of offered certificates. A representative of the Controlling
Class, whose interests may differ from those of the holders of the other
classes of certificates, may review and reject the actions of the Special
Servicer. See "The Pooling Agreement--Special Servicer." As a result, such
representative may cause the Special Servicer to take actions which conflict
with the interests of certain classes of certificates.
POSSIBLE CONFLICT OF INTEREST OF SPECIAL SERVICER
The Special Servicer or its affiliates may purchase some of the
certificates. This could cause a conflict between the Special Servicer's duties
as Special Servicer and its interest as an investor. However, the Special
Servicer must administer the mortgage loans (other than the Americold Pool
Loan) in accordance with the servicing standard included in the Pooling
Agreement, without regard to ownership of any certificate by the Special
Servicer or any of its affiliates.
LIMITATIONS WITH RESPECT TO REPRESENTATIONS AND WARRANTIES
Certain persons will make certain limited representations and warranties
regarding the mortgage loans for which it is acting as a responsible party in
the Pooling Agreement. See "Description of the Mortgage Pool--Representations
and Warranties" in this prospectus supplement and Annex B to this prospectus
supplement for a summary of such representations and warranties. A material
breach of such representations and warranties could obligate such person to
repurchase the mortgage loan, in which case, the proceeds of such repurchase
would be passed through to certificateholders in the same manner as a principal
prepayment.
If a responsible party is required to but does not cure or remedy a breach
of a representation or warranty, payments on the offered certificates may be
substantially less than such payments would be if such person had cured or
remedied the breach.
The obligation of a responsible party to cure a breach or repurchase a
mortgage loan will constitute the only remedy available to holders of
certificates for a breach of a representation or warranty. No other party will
be obligated to cure or repurchase a mortgage loan in the event of a breach if
the related reponsible party does not fulfill its obligations.
SERVICING OF THE AMERICOLD POOL LOAN
The Americold Pool Loan is secured by 29 cold storage warehouses. Each of
these properties also serves as security for another loan made by GSMC to the
related borrower on April 22, 1998 (the "Other Americold Pool Loan"). The Other
Americold Pool Loan is included in the trust fund created in connection with
the issuance of GS Mortgage Securities Corporation II Commercial Mortgage
Pass-Through Certificates, Series 1998-GL II ("Series 1998-GL II").
In connection with the origination of the Americold Pool Loan, the trustee
(the "Other Trustee") of Series 1998-GL II and GSMC entered into a co-lender
agreement (the "Co-Lender Agreement"). The Other Trustee is the mortgagee of
record of each property. Under the terms of the Co-Lender Agreement, the
servicer of Series 1998-GL II (which is currently also the Master Servicer for
the Series 1998-C1 Certificates) will service both the Americold Pool Loan and
the Other Americold Pool Loan and the
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special servicer of Series 1998-GL II (which is currently also the Special
Servicer for the Series 1998-C1 Certificates) will, to the extent necessary,
specially service both the Americold Pool Loan and the Other Americold Pool
Loan, in each case under the terms of the Co-Lender Agreement and the pooling
and servicing agreement related to Series 1998-GL II.
As a result of the foregoing, actions relating to the servicing of the
Americold Pool Loan will be taken pursuant to the Series 1998-GL II pooling and
servicing agreement. In the event the identity of the master servicer and/or
the special servicer for Series 1998-GL II becomes different from the identity
of the Master Servicer and the Special Servicer for the Series 1998-C1
Certificates, the Master Servicer will thereafter not directly service the
Americold Pool Loan (except that the Master Servicer will be required to
advance delinquent payments and a pro rata portion of property protection
expenses), and neither the Special Servicer nor the Controlling Class will have
the ability to direct any foreclosure or workout of the Americold Pool Loan.
RISKS OF LIMITED LIQUIDITY AND MARKET VALUE
Your certificates will not be listed on any national securities exchange
or on any automated quotation system of any registered securities association
such as NASDAQ and there is currently no secondary market for your
certificates. While Goldman, Sachs & Co. currently intends to make a secondary
market in the offered certificates, it is not obligated to do so. Accordingly,
you may not have an active or liquid secondary market for your certificates.
Lack of liquidity could result in a substantial decrease in the market value of
your certificates. The market value of your certificates also may be affected
by many other factors, including the then-prevailing level of interest rates.
BOOK-ENTRY REGISTRATION
Your certificates will be initially represented by one or more
certificates registered in the name of Cede & Co., as the nominee for DTC, and
will not be registered in your name. As a result, you will not be recognized as
a "certificateholder", or holder of record of your certificates.
RISKS ASSOCIATED WITH YEAR 2000 COMPLIANCE
We are aware of the issues associated with the programming code in
existing computer systems as the year 2000 approaches. The "year 2000 problem"
is pervasive and complex; virtually every computer operation will be affected
in some way by the rollover of the two digit year value to 00. The issue is
whether computer systems will properly recognize date-sensitive information
when the year changes to 2000. Systems that do not properly recognize such
information could generate erroneous data or cause a system to fail.
We have been advised by each of the Master Servicer, the Special Servicer
and the Trustee that they are committed either to (i) implement modifications
to their respective existing systems to the extent required to cause them to be
year 2000 ready or (ii) acquire computer systems that are year 2000 ready in
each case prior to January 1, 2000. However, we have not made any independent
investigation of the computer systems of the Master Servicer, the Special
Servicer or the Trustee. In the event that computer problems arise out of a
failure of such efforts to be completed on time, or in the event that the
computer systems of the Master Servicer, the Special Servicer or the Trustee
are not fully year 2000 ready, the resulting disruptions in the collection or
distribution of receipts on the mortgage loans could materially and adversely
affect your investment.
OTHER RISKS
See "Risk Factors" in the accompanying prospectus for a description of
certain other risks and special considerations that may be applicable to your
certificates.
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DESCRIPTION OF THE MORTGAGE POOL
GENERAL
The assets of the trust created pursuant to the Pooling Agreement (the
"Trust Fund") will consist of a pool of fixed rate mortgage loans (the
"Mortgage Loans") with an aggregate principal balance as of the Cut-Off Date,
after deducting payments of principal due on such date, of approximately
$1,861,517,825 (with respect to each Mortgage Loan, the "Cut-Off Date Balance",
and in the aggregate, the "Initial Pool Balance"). Each Mortgage Loan is
evidenced by a promissory note (a "Mortgage Note") and secured by a mortgage,
deed of trust or other similar security instrument (a "Mortgage") creating a
first lien on a fee simple or leasehold interest in a retail, hotel, office,
multifamily, industrial, health care-related or self-storage property or a
mobile home community (each, a "Mortgaged Property"). All of the Mortgage Loans
are nonrecourse loans. Therefore, in the event of a borrower default, recourse
may be had only against the specific property and such limited other assets as
have been pledged to secure a Mortgage Loan, and not against the borrower's
other assets. Except as otherwise indicated all percentages of the Mortgage
Loans described herein are approximate percentages of the Initial Pool Balance.
Of the Mortgage Loans to be included in the Trust Fund:
o 150 Mortgage Loans, representing approximately 31.7% of the Initial
Pool Balance, were originated by AMRESCO Capital, L.P. ("ACLP") or a
predecessor entity (the "ACLP Loans"),
o 96 Mortgage Loans, representing approximately 25.5% of the Initial
Pool Balance, were originated by Archon Financial, L.P. (the "Archon Loans"),
o 70 Mortgage Loans, representing approximately 16.1% of the Initial
Pool Balance, were originated by Central Park Capital, L.P. (the "CPC Loans"),
o 4 Mortgage Loans, representing approximately 20.8% of the Initial Pool
Balance, were originated by Goldman Sachs Mortgage Company (the "GSMC Loans"),
o 1 Mortgage Loan, representing approximately 5.9% of the Initial Pool
Balance, was originated by by MF-VMS, LLC (the "AIMCO Multifamily Pool Loan"),
and
o 1 Mortgage Loan, representing approximately 0.1% of the Initial Pool
Balance, was originated by Falcon Financial, LLC (the "Falcon Loan").
The originators of the Mortgage Loans are referred to herein as the
"Originators". The CPC Loans and Archon Loans were originated for sale to GSMC.
All the ACLP Loans were originated for sale to AMRESCO Capital Limited, Inc.
("ACLI") or AMRESCO Commercial Mortgage Funding, L.P. ("ACMFLP") (such ACLP
Loans acquired by ACLI and ACMFLP being respectively referred to as the "ACLI
Loans" and the "ACMFLP Loans"), and were underwritten generally in conformity
with the guidelines of ACLP. GSMC has acquired the ACLP Loans, the CPC Loans,
the AIMCO Multifamily Pool Loan and the Archon Loans. The Seller will acquire
the Mortgage Loans from GSMC (or an affiliate thereof) and Falcon Financial,
LLC (collectively, the "Loan Sellers") on or before the Closing Date. The
Seller will cause the Mortgage Loans in the Mortgage Pool to be assigned to the
Trustee pursuant to the Pooling Agreement.
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ADDITIONAL MORTGAGE LOAN INFORMATION
GENERAL MORTGAGE LOAN CHARACTERISTICS
(AS OF THE CUT-OFF DATE, UNLESS OTHERWISE INDICATED)
<TABLE>
<CAPTION>
GROUP 1 GROUP 2 ALL
MORTGAGE LOANS MORTGAGE LOANS MORTGAGE LOANS(7)
------------------- ------------------- ----------------------
<S> <C> <C> <C>
Initial Cut-Off Date Balance(1) ........... $1,211,297,197 $650,220,628 $1,861,517,825
Number of Mortgage Loans .................. 186 137 322
Number of Mortgaged Properties ............ 259 162 421
Average Mortgage Loan Balance ............. 6,512,351 4,746,136 5,781,111
Weighted Average Mortgage Rate ............ 7.338% 7.433% 7.371%
Range of Mortgage Rates ................... 6.160% -- 9.470% 6.370% -- 8.500% 6.160% -- 9.470%
Weighted Average Remaining Term to
Maturity (months)(2) ..................... 132 115 126
Range of Remaining Terms to Maturity
(months)(2) .............................. 69 -- 251 81 -- 120 69 -- 251
Weighted Average Original Amortization
Term (months)(3) ......................... 313 338 326(8)
Range of Original Amortization Terms
(months) ................................. 144 -- 360 180 -- 360 144 -- 360
Weighted Average DSCR(4) .................. 1.59x 1.42x 1.53x
Range of DSCRs(4) ......................... 1.00x -- 2.85x 1.13x -- 2.14x 1.00x -- 2.85x
Weighted Average LTV(5) ................... 66.7% 72.7% 68.8%
Range of LTVs(5) .......................... 40.4% -- 97.1% 49.4% -- 89.7% 40.4% -- 97.1%
Weighted Average LTV at Maturity(6) ....... 45.7% 62.6% 51.6%
Percentage of Initial Pool Balance made
up of:
Fully Amortizing Loans ................... 12.6% 0.0% 8.2%
Balloon Mortgage Loans ................... 48.2% 94.5% 64.4%
ARD Loans ................................ 39.1% 5.5% 27.4%
Defeasance Loans ......................... 74.7% 58.7% 69.2%
</TABLE>
- ----------
(1) Subject to a permitted variance of plus or minus 5%.
(2) In the case of the ARD Loans, this calculation assumes that the Mortgage
Loans pay off on their Anticipated Repayment Dates.
(3) "Weighted Average Original Amortization Term" reflects the fact that
certain Mortgage Loans provide for Monthly Payments based on amortization
schedules longer than the remaining stated terms of such Mortgage Loans.
(4) "DSCR" for any Mortgage Loan is equal to the Net Cash Flow from the
related Mortgaged Property divided by the annual debt service for such
Mortgaged Property.
(5) "LTV" or "Loan-to-Value Ratio" means, with respect to any Mortgage Loan,
the principal balance of such Mortgage Loan as of the Cut-Off Date
divided by the appraised value of the Mortgaged Property or Properties
securing such Mortgage Loan as of the date of the original appraisal (or,
in certain cases, as updated in contemplation of this transaction).
(6) "LTV at Maturity" for any Mortgage Loan is calculated in the same manner
as LTV as of the Cut-Off Date, except that the Cut-Off Date Balance used
to calculate the LTV as of the Cut-Off Date has been adjusted to give
effect to the amortization of the applicable Mortgage Loan as of its
maturity date, or the Anticipated Repayment Date with respect to ARD
Loans. Such calculation thus assumes that the appraised value of the
Mortgaged Property or Properties securing a Mortgage Loan on the Maturity
Date, or the Anticipated Repayment Date, with respect to ARD Loans, is
the same as the appraised value as of the date of the original appraisal.
There can be no assurance that the value of any particular Mortgaged
Property will not have declined from the original appraised value.
(7) Because individual component loans of the AIMCO Multifamily Pool Loan
have been allocated to both Group 1 Mortgage Loans and Group 2 Mortgage
Loans, for purposes of this Prospectus Supplement the aggregate number of
Mortgage Loans in the Mortgage Pool does not reflect the aggregate of
Group 1 and Group 2 Mortgage Loans.
(8) Does not include 2 Mortgage Loans which pay interest only over their
respective terms.
Where a Mortgage Loan is secured by multiple properties, statistical
information in this Prospectus Supplement relating to geographical locations
and property types of the Mortgaged Properties is based on the principal
balance allocated to such property (each, an "Allocated Loan Amount"). The
Allocated Loan Amount, where not stated in the Mortgage Loan documents, is
generally based on the relative
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appraised values of such properties. In addition, other than as specifically
set forth with respect to the Americold Pool Loan, the AIMCO Multifamily Pool
Loan, the EPT Pool Loan and the Skyline City Pool Loan under "--Significant
Mortgage Loans" below, wherever information is presented in this Prospectus
Supplement with respect to LTVs or DSCRs, the LTV or DSCR of each Mortgaged
Property securing a Mortgage Loan secured by multiple Mortgaged Properties is
assumed to be the weighted average LTV or DSCR of such Mortgage Loan.
REPRESENTATIONS AND WARRANTIES
Pursuant to the Pooling Agreement, the Loan Sellers will make certain
representations and warranties concerning the Mortgage Loans sold by them to
the Seller (other than the ACLI Loans and the ACMFLP Loans). In addition, ACLI
will make such representations and warranties with respect to the ACLI Loans
and ACMFLP will make such representations and warranties with respect to the
ACMFLP Loans. Furthermore, GSMC will make a representation and warranty
regarding its ownership of the ACLI Loans and ACMFLP Loans immediately prior to
the Closing Date (assuming that the corresponding representations and
warranties made by ACLI and ACMFLP immediately prior to their sale of the ACLI
Loans and the ACMFLP Loans, as the case may be, to GSMC are true and correct).
Each of ACLI, ACMFLP, GSMC and Falcon are referred to herein as a "Responsible
Party". Each Responsible Party will be obligated to cure any breach of such
representations and warranties or to repurchase any Mortgage Loan as to which
exists a breach of any such representation or warranty or a document defect
that in either case materially and adversely affects the value of the Mortgage
Loan or the interests of the Certificateholders in such Mortgage Loan. Each
Responsible Party will be required to repurchase any Mortgage Loan or cure any
such breach in all material respects within 90 days of receiving notice
thereof, subject to extension for an additional 90 days if the Responsible
Party is diligently pursuing a cure. The sole remedy available to the Trustee
or the Certificateholders is the obligation of the Responsible Party to cure or
repurchase any Mortgage Loan in connection with which there has been a breach
of any such representation or warranty which materially and adversely affects
the value of the Mortgage Loan or the interest of the Certificateholders in
such Mortgage Loan. The Responsible Parties will make the representations and
warranties set forth in Annex B in this prospectus supplement.
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
313 of the Mortgage Loans, representing approximately 75.5% of the Initial
Pool Balance, have due dates upon which interest and principal payments are due
under the related Mortgage Note (each such date, a "Due Date") that occur on
the first day of each month. 2 Mortgage Loans, representing approximately 1.0%
of the Initial Pool Balance, have Due Dates that occur on the 10th day of each
month. 6 Mortgage Loans, representing approximately 23.5% of the Initial Pool
Balance, have Due Dates that occur on the 11th day of each month. All of the
Mortgage Loans are secured by first liens on fee simple and/or leasehold
interests in the related Mortgaged Properties, subject to the permitted
exceptions reflected in the related title insurance policy. All of the Mortgage
Loans bear fixed interest rates. 3 of the Mortgage Loans, representing
approximately 3.8% of the Initial Pool Balance, provide for monthly payments of
interest only over a fixed period of time after origination. Approximately
91.8% of the Mortgage Loans (by Initial Pool Balance) provide for monthly
payments of principal based on amortization schedules significantly longer than
the remaining terms of such Mortgage Loans (each, a "Balloon Mortgage Loan"). 2
of the Mortgage Loans, representing approximately 1.2% of the Initial Pool
Balance, provide for monthly payments of interest only over its term and the
payment of the entire principal amount at maturity. Thus, such Mortgage Loans
will have Balloon Payments due at their stated maturity dates, unless prepaid
prior thereto. For purposes of determining principal distributions on the Class
A-1, Class A-2 and Class A-3 Certificates, the Mortgage Pool consists of two
groups (each, a "Loan Group", and "Group 1" and "Group 2" respectively). Each
Loan Group consists of those Mortgage Loans designated as such on Annex A
hereto.
"Due-on-Sale" and "Due-on-Encumbrance" Provisions. The Mortgage Loans
generally contain "due-on-sale" and "due-on-encumbrance" clauses, which in each
case permit the holder of the Mortgage Loan to accelerate the maturity of the
Mortgage Loan if the borrower sells or otherwise transfers or
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encumbers the related Mortgaged Property without the consent of the mortgagee.
The Master Servicer (or, with respect to Specially Serviced Mortgage Loans, the
Special Servicer), or, with respect to the Americold Pool Loan, the Series
1998-GLII Master Servicer (or, if the Americold Pool Loan becomes specially
serviced, the Series 1998-GL II Special Servicer) will determine, in a manner
consistent with the Servicing Standard, whether to exercise any right the
mortgagee may have under any such clause to accelerate payment of the related
Mortgage Loan upon, or to withhold its consent to, any transfer or further
encumbrance of the related Mortgaged Property. Certain of the Mortgage Loans
provide that the mortgagee may condition an assumption of the loan on the
receipt of the assumption fee. Certain of the Mortgages provide that such
consent may not be unreasonably withheld, so long as (i) no event of default
has occurred, (ii) the proposed transferee is creditworthy and has sufficient
experience in the ownership and management of properties similar to the
Mortgaged Property, (iii) the Rating Agencies have confirmed in writing that
such transfer will not result in a qualification, downgrade or withdrawal of
the then current rating of the Certificates, (iv) the transferee has executed
and delivered an assumption agreement evidencing its agreement to abide by the
terms of the Mortgage Loan together with legal opinions and title insurance
endorsements and (v) the assumption fee has been received (which assumption fee
will be paid to the Master Servicer or the Special Servicer, as described
herein and as provided in the Pooling Agreement, and will not be paid to the
Certificateholders). See "Certain Legal Aspects of Mortgage Loans--Due-on-Sale
and Due-on-Encumbrance" in the Prospectus. The Seller makes no representation
as to the enforceability of any due-on-sale or due-on-encumbrance provision in
any Mortgage Loan.
For a description of the exceptions to the general prohibition against
transfer, sale, assignment, conveyance or other disposal of legal or equitable
title to or any interest in the Mortgaged Properties securing the four largest
Mortgage Loans, see "Significant Mortgage Loans--Americold Pool: The Borrower;
The Properties--Transfer of Property and Interest in the Americold Pool
Borrower; Encumbrances, AIMCO Multifamily Pool; The Borrower; The
Properties--Transfer of Property and Interest in the AIMCO Multifamily Pool
Borrower; Encumbrances, Entertainment Properties Trust Pool: The Borrower; The
Properties--Transfer of Property and Interest in the EPT Pool Borrower;
Encumbrances, Skyline City Pool: The Borrowers; The Properties--Transfer of
Property and Interest in the Skyline City Pool Borrower; Encumbrances" in this
Prospectus Supplement.
ARD Loans. 19 of the Mortgage Loans (the "ARD Loans"), representing
approximately 27.4% of the Initial Pool Balance (including the Americold Pool
Loan, the Skyline City Pool Loan, and the EPT Pool Loan), contain a
hyper-amortization feature, which provides that if after an Anticipated
Repayment Date the related borrower has not prepaid the ARD Loan in full, any
principal outstanding on such date will accrue at an increased rate (the
"Revised Rate") rather than the stated Mortgage Rate (the "Initial Rate").
Generally, each Anticipated Repayment Date is not more than 120 months after
the first Due Date for the related ARD Loan. 15 of the Group 1 Mortgage Loans
and 4 of the Group 2 Mortgage Loans, representing 39.1% and 5.5%, respectively,
of the aggregate principal balance of the Group 1 Mortgage Loans and the Group
2 Mortgage Loans, respectively, as of the Cut-Off Date, are ARD Loans. The
Revised Rate for any ARD Loan will generally be equal to the sum of (x) the
Initial Rate, plus (y) 2% per annum, or in the case of 3 Mortgage Loans,
representing approximately 11.5% of the Initial Pool Balance, including the
Skyline City Pool Loan and the EPT Pool Loan, the Revised Rate will be equal to
the greater of (x) the sum of (i) the Initial Rate, plus (ii) 2% per annum and
(y) 2% above the yield (the "Treasury Rate"), calculated by linear
interpolation of the yields, of U.S. Treasury obligations with terms (one
longer and one shorter) most nearly approximating that of noncallable U.S.
Treasury obligations having maturities as close as possible to the maturity
date for the applicable Mortgage Loan or in the case of 1 Mortgage Loan,
representing approximately 0.5% of the Initial Pool Balance, the Revised Rate
will be equal to the greater of (x) the sum of (i) the Initial Rate, plus (ii)
5% per annum and (y) 5% above the Treasury Rate. Pursuant to the terms of the
Pooling Agreement, neither the Master Servicer nor the Special Servicer will be
permitted to enforce any increase in the Initial Rate of any ARD Loan above an
increase of 2.00% per annum.
Following the Anticipated Repayment Date, each ARD Loan generally requires
that all cash flow available from the related Mortgaged Property after payment
of the constant monthly payment required
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under the terms of the related loan documents and all escrows, reserves and
expenses required under the related loan documents will be used to accelerate
amortization of principal on such ARD Loan (such available cashflow, "Excess
Cashflow"). With respect to each ARD Loan interest will generally continue to
accrue at the Initial Rate and be payable on a current basis after the
Anticipated Repayment Date, and the payment of interest at the excess of the
Revised Rate over the Initial Rate for such ARD Loan ("Excess Interest") will
be deferred and will be paid, together with any interest thereon, only after
the outstanding principal balance of the ARD Loan has been paid in full. The
foregoing features, to the extent applicable, are designed to increase the
likelihood that the ARD Loan will be prepaid by the borrower on the applicable
Anticipated Repayment Date.
Defeasance; Collateral Substitution. The terms of 198 of the Mortgage
Loans (the "Defeasance Loans"), which include the Americold Pool Loan, the EPT
Pool Loan and the Skyline City Pool Loan, representing approximately 69.2% of
the Initial Pool Balance, permit the applicable borrower at any time (provided
no event of default exists) after a specified period (the "Defeasance Lock-out
Period") to obtain a release of a Mortgaged Property from the lien of the
related Mortgage (a "Defeasance Option"). The Defeasance Lock-Out Period is
generally three years from the date of origination (and with respect to 29
Defeasance Loans, representing approximately 30.3% of the Initial Pool Balance,
the earlier of approximately three years from the date of origination and two
years from the Closing Date).
Approximately 74.7% of the Group 1 Mortgage Loans, by aggregate principal
balance as of the Cut-Off Date, are Defeasance Loans. The Defeasance Lock-out
Period of 13 Group 1 Defeasance Loans, representing approximately 41.4% of the
aggregate principal balance of the Group 1 Mortgage Loans as of the Cut-Off
Date, ends the earlier of approximately three years from the date of
origination and two years from the Closing Date. The Defeasance Lock-out Period
of 2 Group 1 Defeasance Loans, representing approximately 0.26% of the
aggregate principal balance of the Group 1 Mortgage Loans as of the Cut-Off
Date, ends five years after the date of origination. The Defeasance Lock-out
Period of 1 Mortgage Loan in Group 1, representing approximately 0.17% of the
aggregate principal balance of the Group 1 Mortgage Loans as of the Cut-Off
Date, ends eight years after the date of origination. The Defeasance Lock-out
Period of the remaining Group 1 Defeasance Loans ends three years after the
date of origination. 58.7% of the Group 2 Mortgage Loans, by aggregate
principal balance as of the Cut-Off Date, are Defeasance Loans. The Defeasance
Lock-out Period of 16 Group 2 Defeasance Loans, representing approximately 9.6%
of the aggregate principal balance of the Group 2 Mortgage Loans as of the
Cut-Off Date, ends the earlier of approximately three years from the date of
origination and two years from the Closing Date. The Defeasance Lock-out Period
of 1 Group 2 Mortgage Loan, representing approximately 0.44% of the aggregate
principal balance of the Group 2 Mortgage Loans as of the Cut-Off Date, ends
eight years after the date of origination. The Defeasance Lock-out Period of
the remaining Group 2 Defeasance Loans ends three years after the date of
origination.
The Defeasance Option is also generally conditioned on, among other
things, (a) the borrower providing the mortgagee with at least 30 days prior
written notice of the date of such defeasance and (b) the borrower (A) paying
on any Due Date (the "Release Date") (i) all interest accrued and unpaid on the
principal balance of the Mortgage Note to the Release Date, (ii) all other
sums, excluding scheduled interest or principal payments, due under the
Mortgage Loan and all other loan documents executed in connection therewith,
(iii) an amount (the "Defeasance Deposit") that will be sufficient to (x)
purchase direct non-callable obligations of the United States of America
providing payments (1) on or prior to, but as close as possible to, all
successive scheduled payment dates from the Release Date to the related
maturity date or in the case of an ARD Loan, the related Anticipated Repayment
Date, and (2) in amounts equal to the scheduled payments due (or assumed
balloon payment on ARD Loans) on such dates under the Mortgage Loan or the
defeased amount thereof in the case of a partial defeasance, and (y) pay any
costs and expenses incurred in connection with the purchase of such U.S.
government obligations and (B) delivering a security agreement granting the
Trust Fund a first priority lien on the Defeasance Deposit and the U.S.
government obligations purchased with the Defeasance Deposit and an opinion of
counsel to such effect.
The Defeasance Loans secured by more than one Mortgaged Property generally
require that prior to the release of a related Mortgaged Property, (i) a
specified percentage (generally 125%, with a
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minimum of 100% and a maximum of 182%) of the Allocated Loan Amount for such
Mortgaged Property be defeased, provided that in no event will the specified
percentage be greater than the outstanding principal balance of the Mortgage
Loan or, (ii) a minimum debt service coverage ratio test (not less than the
underwritten debt service coverage ratio), be satisfied for the remaining
Mortgaged Properties.
Pursuant to the terms of the Pooling Agreement, the Master Servicer will
be responsible for purchasing the U.S. government obligations on behalf of the
borrower (except with respect to the Americold Pool Borrower, as to which the
Series 1998-GLII Master Servicer will be so obligated) at the borrower's
expense. Any amount in excess of the amount necessary to purchase such U.S.
government obligations will be returned to the borrower. Simultaneously with
such actions, the related Mortgaged Property will be released from the lien of
the Mortgage Loan and the pledged U.S. government obligations (together with
any Mortgaged Property not released, in the case of a partial defeasance) will
be substituted as the collateral securing the Mortgage Loan.
In general, a successor borrower established or designated by the Master
Servicer (or, in the case of the Americold Pool Loan, the Series 1998-GL II
Master Servicer) will assume all of the defeased obligations of a borrower
exercising a Defeasance Option under a Mortgage Loan and the borrower will be
relieved of all of the defeased obligations thereunder. If a Mortgage Loan is
partially defeased, the related promissory note will be split and only the
defeased portion of the borrower's obligations will be transferred to the
successor borrower.
The Seller makes no representation as to the enforceability of the
defeasance provisions of any Mortgage Loan. See "Risk Factors--Special
Prepayment Considerations" and "--Special Yield Considerations."
ESCROWS
298 of the Mortgage Loans, representing approximately 86.8% of the Initial
Pool Balance, provide for monthly escrows to cover property taxes on the
Mortgaged Properties.
278 of the Mortgage Loans, representing approximately 81.5% of the Initial
Pool Balance, provide for monthly escrows to cover insurance premiums on the
Mortgaged Properties.
270 of the Mortgage Loans, representing approximately 83.5% of the Initial
Pool Balance, provide for monthly escrows to cover ongoing replacements and
capital repairs.
121 of the Mortgage Loans, representing approximately 60.3% of the Initial
Pool Balance, that are secured by office, retail and industrial properties, and
34.6% of all Mortgage Loans, by Initial Pool Balance, provide for up-front or
monthly escrows for the full term or a portion of the term of the related
Mortgage Loan to cover anticipated re-leasing costs, including tenant
improvements and leasing commissions. Such escrows are typically considered for
office, retail and industrial properties only.
See Annex A to this Prospectus Supplement for additional information on
the monthly escrows on the Mortgage Loans.
UNDERWRITING GUIDELINES
The Originators have implemented guidelines establishing certain
procedures with respect to underwriting mortgage loans originated by the
Originators, as described more fully below. The Mortgage Loans were generally
originated in accordance with such guidelines. In some instances, one or more
provisions of the guidelines were waived or modified where it was determined
not to adversely affect the Mortgage Loans.
Property Analysis. The Originators perform site inspections to evaluate
the location and quality of each mortgaged property. Such inspections generally
include an evaluation of functionality, design, attractiveness, visibility, and
accessibility, as well as convenience to major thoroughfares, transportation
centers, employment sources, retail areas and educational or recreational
facilities. The Originators also assess the submarket in which the property is
located, which includes evaluating competitive or comparable properties as well
as market trends. In addition, the Originators evaluate the property's age,
physical condition, operating history, leases and tenant mix, and management.
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<PAGE>
Cash Flow Analysis. The Originators review operating statements provided
by the borrower and make adjustments in order to determine the Debt Service
Coverage Ratio. See "Description of the Mortgage Pool--Certain Characteristics
of the Mortgage Loans" above.
Appraisal and Loan-to-Value Ratio. For each mortgaged property, the
Originators obtain a current full narrative appraisal conforming to the
requirements of the Financial Institutions Reform, Recovery and Enforcement Act
of 1989, as amended ("FIRREA"). The appraisal must be based on the highest and
best use of the Mortgaged Property and must include an estimate of the current
market value of the property in its current condition. The Originators
determine the loan-to-value ratio of the mortgage loan at the date of
origination based on the value set forth in the appraisal. With respect to
certain of the Mortgage Loans, an updated appraisal was obtained in connection
with this transaction.
Evaluation of Borrower. The Originators evaluate the borrower and its
principals with respect to credit history and prior experience as an owner and
operator of commercial real estate properties. The evaluation generally
includes obtaining and reviewing a credit report or other reliable indication
of the borrower's financial capacity; obtaining and verifying credit references
and/or business and trade references; and obtaining and reviewing
certifications provided by the borrower as to prior real estate experience and
current contingent liabilities. In addition, in general, each borrower for
loans above a minimum loan amount is required to be organized as a
single-purpose, bankruptcy-remote entity, and the Originators review the
organizational documents of the borrower to verify compliance with such
requirement. Finally, although the mortgage loans generally are non-recourse in
nature, in the case of certain mortgage loans, the borrower and certain
principals thereof may be required to assume legal responsibility for
liabilities relating to fraud, misrepresentation, misappropriation of funds,
breach of environmental or hazardous waste requirements and unauthorized
transfer of title to the property. The Originators evaluate the financial
capacity of the borrower and such principals to meet any obligations that may
arise with respect to such liabilities.
Environmental Site Assessment. The Originators obtain a current or updated
ESA for each mortgaged property prepared by a qualified environmental firm
approved by the Originators. The Originators or their designated agents review
the ESA to verify the absence of reported violations of applicable laws and
regulations relating to environmental protection and hazardous waste. In cases
in which the ESA identifies such violations, the Originator requires the
borrower to carry out satisfactory remediation activities prior to the
origination of the mortgage loan, or to establish an operations and maintenance
plans and to place sufficient funds in escrow at the time of origination of the
mortgage loan to complete such remediation within twelve months (except with
respect to de minimis amounts).
Physical Assessment Report. The Originators obtain a current physical
assessment report ("PAR") for each mortgaged property prepared by a qualified
structural engineering firm approved by the Originators. The Originators review
the PAR to verify that the mortgaged property is reported to be in satisfactory
physical condition, and to determine the anticipated costs of necessary repair,
replacement and major maintenance or capital expenditure needs over the term of
the mortgage loan. In cases in which the PAR identifies material repairs or
replacements needed immediately, the Originators require the borrower to carry
out such repairs or replacements prior to the origination of the mortgage loan,
or to place sufficient funds in escrow at the time of origination of the
mortgage loan to complete such repairs or replacements within not more than
twelve months.
Title Insurance Policy. The borrower is required to provide, and the
Originators or its counsel review, a title insurance policy for each mortgaged
property. The title insurance policy must meet the following requirements: (a)
the policy must be written by a title insurer licensed to do business in the
jurisdiction where the mortgaged property is located, (b) the policy must be in
an amount equal to the original principal balance of the mortgage loan, (c) the
protection and benefits must run to the mortgagee and its successors and
assigns, (d) the policy should be written on the most current standard policy
form of the American Land Title Association ("ALTA") or equivalent policy
promulgated in the jurisdiction where the mortgaged property is located and (e)
the legal description of the mortgaged property in the title policy must
conform to that shown on the survey of the mortgaged property, where a survey
has been required.
S-46
<PAGE>
Property Insurance. The borrower is required to provide, and the
Originators review, certificates of required insurance with respect to the
mortgaged property. Such insurance generally may include: (1) commercial
general liability insurance for bodily injury or death and property damage; (2)
an "All Risk of Physical Loss" policy; (3) if applicable, boiler and machinery
coverage; (4) if the Mortgaged Property is located in a flood hazard area,
flood insurance; and (5) such other coverage as the Originators may require
based on the specific characteristics of the mortgaged property.
Escrow Requirements. The Originators require substantially all borrowers
to fund various escrows for taxes and insurance, replacement reserves,
environmental remediation and capital expenditures in excess of available cash
flow.
Underwriting of the Mortgage Loans. In underwriting each Mortgage Loan in
connection with the origination or acquisition thereof, income information
provided by the borrower was examined by the Responsible Party. In addition,
the operating history of the Mortgaged Property, industry data regarding the
local real estate market and the appraiser's analysis were reviewed and, if
conditions warranted, net operating income with respect to the related
Mortgaged Property was adjusted for purposes of determining whether the
Mortgaged Property satisfied the debt service coverage ratio required by the
Responsible Party's underwriting guidelines. In accordance with the
underwriting guidelines, net operating income of any Mortgaged Property may
have been adjusted by, among other things, adjustments in "Net Cash Flow". In
connection with the underwriting, net operating income was based upon
information provided by the borrower and neither the Responsible Party nor the
Seller makes any representation as to the accuracy of such information;
provided, however, that, with respect to certain of the Mortgage Loans, the
related Responsible Party or the borrower engaged independent accountants to
review or perform certain procedures to verify such information.
ADDITIONAL INFORMATION
A Current Report on Form 8-K (the "Form 8-K") will be available to
purchasers of the offered Certificates and will be filed, together with the
Pooling Agreement, with the Securities and Exchange Commission within fifteen
days after the initial issuance of the Offered Certificates.
SIGNIFICANT MORTGAGE LOANS
AMERICOLD POOL: THE BORROWER; THE PROPERTIES
THE LOAN. The "Americold Pool Loan" had a principal balance as of the
Cut-Off Date of approximately $147,597,677 and is evidenced by a note (the
"Americold Pool Note B") issued by Americold Real Estate, L.P. (the "Americold
Pool Borrower"). The Americold Pool Note B is cross-collateralized and
cross-defaulted with a pari passu note (the "Americold Pool Note A") issued by
the Americold Pool Borrower with a principal balance as of the Cut-Off Date of
$147,597,677 (the aggregate indebtedness represented by such notes being
referred to herein as the "Total Americold Pool Loan"). The Total Americold
Pool Loan had a principal balance as of the Cut-Off Date of approximately
$295,195,354. The Americold Pool Loan was originated by GSMC on April 22, 1998.
The portion of the Total Americold Pool Loan evidenced by the Americold Pool
Note A is not included in the Mortgage Pool. The Americold Pool Loan is a
non-recourse loan, secured by first priority mortgage and/or deed of trust
liens encumbering the borrower's fee and leasehold interests in 29 cold storage
warehouses located throughout the United States (the "Americold Pool
Properties") and certain related collateral (including assignments of leases
and rents and the funds in certain accounts). The Americold Pool Borrower owns
fee title to 26 and leasehold title to 3 of the Americold Pool Properties. The
mortgages encumbering the Americold Pool Properties are cross-collateralized
and cross-defaulted. Each title insurance policy issued upon the origination of
the Americold Pool Loan insures that each of the mortgages securing the
Americold Pool Loan constitutes a valid and enforceable first lien on the
Americold Pool Properties encumbered by it, subject to certain exceptions and
exclusions from coverage set forth in the policies.
The Americold Pool Note A, among other mortgage loans, is included in a
trust fund created in connection with the issuance of the Seller's Commercial
Mortgage Pass-Through Certificates, Series 1998-GL II.
S-47
<PAGE>
THE BORROWER. The Americold Pool Borrower is a special purpose Delaware
limited partnership, formed solely for the purpose of acquiring, owning, and
operating the Americold Pool Properties. Americold Corporation ("Americold"),
an affiliate of the Americold Pool Borrower, will operate and manage the
Americold Pool Properties pursuant to the Americold Master Lease as described
in "--Property Management; Master Lease" below. A joint venture between Vornado
Realty Trust and Crescent Real Estate Equities Company (the "Joint Venture")
acquired Americold and URS Logistics, Inc. ("URS") from Kelso Partners, L.P. on
October 31, 1997. Since the acquisition, Americold and URS have been combined
operationally as Americold Logistics with one management team under the
umbrella of the Joint Venture. Individuals who are also directors and officers
of Vornado Realty Trust and Crescent Real Estate Equities, Inc., control
entities which indirectly own the Americold Pool Borrower. The economic
interests in such entities are mostly held by Vornado Realty Trust and Crescent
Real Estate Equities, Inc., respectively. Vornado Realty Trust and Crescent
Real Estate Equities, Inc. are both publicly traded real estate investment
trusts whose beneficial interests are listed on the New York Stock Exchange.
THE PROPERTIES. The Americold Pool Properties are comprised of the
Americold Pool Borrower's fee simple and leasehold interest in 29 cold storage
warehouses. The Americold Pool Properties are located throughout the United
States with a particular focus in the West, Pacific Northwest, and Northeast
regions, and contain a total of approximately 155 million cubic feet of
refrigerated space. The Americold Pool Properties are comprised of five
National Distribution, six Regional Distribution, ten Regional Production, and
eight Captive Production facilities. Americold's top ten customers by revenue
(in alphabetical order) for 1997 were Con Agra, Dean Foods, Grandonet, HJ
Heinz, JR Simplot, McCain, Nestle USA, New West Foods, Norpac Foods, and
Unilever.
Appraisals, dated as of March 1, 1998 determined an aggregate value for
the Americold Pool Properties of approximately $520,600,000, resulting in a
Cut-Off Date LTV Ratio of approximately 56.7%. The appraisals were prepared in
accordance with the Uniform Standards of Professional Appraisal Practice. See
"Risk Factors--Limitations of Appraisals" herein. Structural and seismic risk
assessments of certain of the Americold Pool Properties were performed in March
1998 by a third party structural engineering firm. Those properties included
Jesse Street, Turlock 2, and Watsonville. The seismic reports determined
seismic zones and concluded aggregate probable maximum loss ("PML"). The PML is
commonly defined as the potential loss with a 90% confidence level given the
occurrence of an earthquake within 475 years. For each of the three facilities,
the PML is as follows: Jesse Street, $1,460,000 to $1,825,000, Turlock 2,
$425,000 to $1,105,000, and Watsonville, $1,400,000 to $3,500,000. The
Americold Pool Borrower has obtained blanket earthquake insurance coverage in
the full amount of such PMLs. The Property Condition Reports completed prior to
origination of the Americold Pool Loan indicated that the Americold Pool
Properties were generally in good physical condition but noted certain items of
deferred maintenance for which approximately $543,006 in reserves was funded by
the Americold Pool Borrower at the closing of the Americold Pool Loan. Phase I
environmental site assessments dated January/February 1998, and Phase II
environmental site assessments dated March 1998, were completed by a third
party environmental consulting firm. The reports recommended additional
investigation, removal, and the possible remediation of certain conditions. The
Americold Pool Borrower funded $1,405,171 at the closing of the Americold Pool
Loan for additional investigation and potential remediation requirements. The
reports did not reveal any environmental liability, beyond which funds have
been reserved, that the Seller believes would have a material adverse impact on
the Americold Pool Borrower's business, assets or results of operations taken
as a whole. Nevertheless, there can be no assurance that all environmental
conditions and risks were identified in such reports. See "Risk
Factors--Environmental Risks" herein.
At three of the Americold Pool Properties (Watsonville, California;
Burley, Idaho; and Ash Street Denver, Colorado), all or a portion of the
underlying land is leased to the Americold Pool Borrower pursuant to a ground
lease. Americold assigned its interest in each such lease to the Americold Pool
Borrower in connection with the closing of the Americold Pool Loan.
S-48
<PAGE>
AMERICOLD POOL PROPERTIES SUMMARY
<TABLE>
<CAPTION>
NET
RENTABLE
YEAR BUILT/ SQUARE
PROPERTY LOCATION PROPERTY TYPE RENOVATED FOOTAGE
- ------------------ ----------------- ----------------------- ------------- ------------
<S> <C> <C> <C> <C>
Ash Street ....... Denver, CO Regional Distribution 1976/1980 114,222
Bettendorf ....... Bettendorf, IA Regional Distribution 1973/1977 336,000
Boston ........... Boston, MA Regional Distribution 1969 218,316
Burley ........... Burley, ID Captive Production 1959/1996 407,217
Burlington ....... Burlington, WA Captive Production 1965/1968 194,000
Clearfield ....... Clearfield, UT National Distribution 1973/1978 358,400
Connell .......... Connell, WA Captive Production 1969/1971 232,500
E. Main Street ... Gloucester, MA Regional Production 1962/1973 106,219
Fogelsville ...... Fogelsville, PA National Distribution 1976/1997 717,077
Ft. Dodge ........ Ft. Dodge, IA Regional Distribution 1979/1980 155,811
Hermiston ........ Hermiston, OR Captive Production 1975 168,000
Jesse St. ........ Los Angeles, CA National Distribution 1954/1980 147,600
Lois Avenue ...... Tampa, FL Regional Distribution 1953 42,143
Milwaukie ........ Milwaukie, OR Regional Distribution 1958/1988 196,626
Moses Lake ....... Moses Lake, WA Captive Production 1967/1979 302,400
Nampa ............ Nampa, ID Regional Production 1946/1974 364,000
Plant City ....... Plant City, FL Regional Production 1956 806,400
Plover ........... Plover, WI Captive Production 1978/1981 384,400
Rail Road Ave. Gloucester, MA Regional Production 1964 13,951
Rochelle ......... Rochelle, IL National Distribution 1995 251,172
Rodgers St. ...... Gloucester, MA Regional Production 1967 124,242
Rowe Square ...... Gloucester, MA Regional Production 1955/1986 157,966
Salem ............ Salem, OR Regional Production 1963/1981 498,400
Southgate ........ Atlanta, GA National Distribution 1996 135,116
Turlock 2 ........ Turlock, CA Regional Production 1985 108,400
Walla Walla ...... Walla Walla, WA Regional Production 1960/1968 140,000
Wallula .......... Wallula, WA Captive Production 1981 40,000
Watsonville ...... Watsonville, CA Captive Production 1985 185,980
Woodburn ......... Woodburn, OR Regional Production 1952/1979 277,440
-------
Total/Weighted
Average ......... 7,183,998
=========
<CAPTION>
CUBIC CUT-OFF DATE APPRAISED
SQUARE UNDERWRITTEN ALLOCATED LOAN VALUE(1) CUT-OFF
PROPERTY FOOTAGE NET CASH FLOW(1) AMOUNT (AS OF 4/98) DATE LTV(1) DSCR(1)
- ------------------ -------------- ------------------ ---------------- -------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ash Street ....... 2,750,000 $ 462,849 $ 1,757,790 $ 6,200,000 56.7% 1.54x
Bettendorf ....... 8,848,000 1,088,267 4,082,610 14,400,000 56.7% 1.56x
Boston ........... 3,067,994 606,267 2,098,008 7,400,000 56.7% 1.69x
Burley ........... 10,722,101 4,653,746 9,951,361 35,100,000 56.7% 2.74x
Burlington ....... 4,656,000 1,783,553 4,479,530 15,800,000 56.7% 2.34x
Clearfield ....... 8,601,600 3,016,924 7,881,705 27,800,000 56.7% 2.24x
Connell .......... 5,644,800 2,368,940 6,492,483 22,900,000 56.7% 2.14x
E. Main Street ... 1,862,768 714,605 2,353,171 8,300,000 56.7% 1.78x
Fogelsville ...... 21,623,549 2,139,954 16,330,438 57,600,000 56.7% 0.77x
Ft. Dodge ........ 3,067,994 346,861 1,346,694 4,750,000 56.7% 1.51x
Hermiston ........ 4,032,000 2,739,870 6,662,592 23,500,000 56.7% 2.41x
Jesse St. ........ 2,682,400 685,951 2,069,656 7,300,000 56.7% 1.94x
Lois Avenue ...... 344,080 67,936 127,582 450,000 56.7% 3.12x
Milwaukie ........ 4,688,624 2,131,188 5,358,425 18,900,000 56.7% 2.33x
Moses Lake ....... 7,257,600 3,561,526 9,696,198 34,200,000 56.7% 2.15x
Nampa ............ 7,981,000 680,270 5,783,697 20,400,000 56.7% 0.69x
Plant City ....... 806,400 186,202 680,435 2,400,000 56.7% 1.60x
Plover ........... 9,363,200 5,024,753 13,551,996 47,800,000 56.7% 2.17x
Rail Road Ave. 270,480 164,781 652,083 2,300,000 56.7% 1.48x
Rochelle ......... 6,020,352 2,872,681 6,974,458 24,600,000 56.7% 2.42x
Rodgers St. ...... 2,823,256 1,064,918 3,458,878 12,200,000 56.7% 1.81x
Rowe Square ...... 2,387,465 1,321,472 4,054,258 14,300,000 56.7% 1.91x
Salem ............ 12,487,600 3,364,696 9,242,575 32,600,000 56.7% 2.14x
Southgate ........ 3,726,418 352,282 3,033,606 10,700,000 56.7% 0.68x
Turlock 2 ........ 3,024,000 942,005 2,579,982 9,100,000 56.7% 2.14x
Walla Walla ...... 3,136,000 973,992 2,835,146 10,000,000 56.7% 2.01x
Wallula .......... 1,200,000 833,766 1,927,899 6,800,000 56.7% 2.54x
Watsonville ...... 2,750,000 2,001,777 5,159,965 18,200,000 56.7% 2.28x
Woodburn ......... 8,848,000 2,737,821 6,974,458 24,600,000 56.7% 2.30x
---------- ----------- ------------ ------------
Total/Weighted
Average ......... 154,673,681 $48,889,853 $147,597,677 $520,600,000 56.7% 1.94x
=========== =========== ============ ============
</TABLE>
- -------
(1) Underwritten Net Cash Flow and Appraised Value reflects the Total
Americold Pool Loan. For DSCR and LTV purposes, 50% of the Underwritten
Net Cash Flow and Appraised Value is utilized.
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<PAGE>
OPERATING HISTORY. The following table shows certain information regarding
the operating history of the Americold Pool Properties:
<TABLE>
<CAPTION>
UNDERWRITTEN
1995(1) 1996(1) 1997(2) NET CASH FLOW
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
REVENUES ......................... $130,219,000 $130,111,000 $140,999,400 $138,572,978
EXPENSES
Personnel ....................... 43,132,000 45,989,000 51,060,000 51,673,477
Utilities ....................... 7,603,000 7,934,000 8,681,000 8,708,933
Facilities ...................... 6,372,000 6,314,000 7,399,000 6,806,470
Repairs and Maintenance ......... 2,856,000 2,886,000 3,181,800 4,970,912
Other Direct Expenses ........... 4,754,000 5,688,000 7,600,000 2,674,118
------------ ------------ ------------ ------------
Total Expenses .................. 64,717,000 68,811,000 77,921,800 74,833,910
NET OPERATING INCOME ............. 65,502,000 61,300,000 63,077,600 63,739,068
Capital Expenditure Reserve ..... -- -- -- 6,534,838
Master Lease Adjustment(3) ...... -- -- -- 8,314,379
------------ ------------ ------------ ------------
NET CASH FLOW .................... $ 65,502,000 $ 61,300,000 $ 63,077,600 $ 48,889,851
============ ============ ============ ============
</TABLE>
- ----------
(1) The 1995 and 1996 figures represent a compilation of revenues and certain
expenses of 28 Americold Pool Properties with a February 28 fiscal
year-end and one Americold Pool Property with a December 31 fiscal
year-end.
(2) The 1997 financial statements includes annualizing 10-month revenues and
certain expenses for 28 of the Americold Pool Properties.
(3) It is assumed that the Americold Pool Master Lessee will receive
approximately 6% of the Americold Pool Properties Total Revenues pursuant
to the Americold Pool Master Lease.
PROPERTY MANAGEMENT; MASTER LEASE. The Americold Pool Properties are
subject to a triple net lease (the "Americold Pool Master Lease") between the
Americold Pool Borrower, as landlord (the "Americold Pool Master Lessor"), and
Americold, as tenant (the "Americold Pool Master Lessee"). The Americold Pool
Master Lease commenced as of April 22, 1998 and expires on April 30, 2013, with
two successive 5 year renewal options at the option of the Americold Pool
Master Lessee, provided that the term of the lease with respect to any ground
lease property will expire 5 years prior to the expiration of the term
(including renewals) of such ground lease. Under the Americold Pool Master
Lease, the Americold Pool Master Lessee is required to pay fixed rent (the
"Americold Pool Minimum Rent") of (i) $48,164,000 per annum for the period
commencing on April 22, 1998 through December 31, 2002, (ii) $50,572,000 per
annum for the period commencing on January 1, 2003 through December 31, 2007,
and (iii) the greater of (a) $53,100,810 per annum and (b) the fair market
rental of the leased property, for the period commencing on January 1, 2008
through April 30, 2013. In addition, the Americold Pool Master Lessee is
required to pay percentage rent for each lease year equal to the product of (i)
37.50% and (ii) revenues for the lease year in question in excess of an amount
equal to the Americold Pool Minimum Rent for such lease year divided by 37.50%.
The annual Americold Pool Minimum Rent during any renewal term will be the
greater of (i) the then current fair market rental of the leased property and
(ii) the Americold Pool Minimum Rent for the lease year immediately preceding
the renewal term, plus 5%.
The Americold Pool Borrower will have the right to modify, change,
supplement, alter and amend, and to waive and release any of its rights and
remedies under the Americold Pool Master Lease; provided, in each instance,
that, among other things such action is not reasonably likely to cause the
Americold Pool Borrower's net cash flow to be less than what it would be if the
Americold Pool Master Lease were terminated and replaced with a property
management agreement (the "Americold Pool Property Management Agreement") under
which the Americold Pool Borrower was required to pay a property management fee
of 5% of gross receipts, and, provided further that, except to the extent that
the mortgagee may consent to or approve such action in writing, the same will
not be enforceable by, or claimed as a defense by, the Americold Pool Master
Lessee against the mortgagee. Unless otherwise waived by the mortgagee or cured
within five days, the Americold Pool Property Management Agreement will
terminate five days after the occurrence and continuance of an event of default
under the Americold Pool Loan and the mortgagee's notice thereof to the
Americold Pool Master Lessee and the Americold Pool Borrower.
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<PAGE>
AMERICOLD POOL: THE LOAN
PAYMENT TERMS. The Americold Pool Loan is an ARD Loan which bears interest
at a fixed rate per annum equal to 6.894% (the "Americold Pool Initial Interest
Rate") through and including May 11, 2008. After May 11, 2008, its Anticipated
Repayment Date, the Americold Pool Loan accrues interest at a fixed rate per
annum equal to 8.894%. The Americold Pool Loan matures on May 11, 2023 (the
"Americold Pool Maturity Date"). Interest on the Americold Pool Loan is
calculated based on the actual number of days elapsed and a 360-day year. See
"--Certain Characteristics of the Mortgage Loans--ARD Loans" herein.
The Americold Pool Loan requires monthly payments (the "Americold Pool
Monthly Debt Service Payment Amount") of principal and interest of
approximately $1,048,596 (based on a 25-year amortization schedule and the
Americold Pool Initial Interest Rate). Payment of the balance of the principal,
if any, together with all accrued and unpaid interest is required on the
Americold Pool Maturity Date. Commencing on its Anticipated Repayment Date and
on the 11th day of each calendar month thereafter, or, if such day is not a
business day, then the immediately preceding business day (an "Americold Pool
Due Date"), the Americold Pool Borrower is required to apply 100% of the excess
cash flow for the month preceding the month in which the Americold Pool Due
Date occurs in the following order of priority: (a) to the outstanding
principal balance until the Americold Pool Loan has been paid in full, (b) to
the payment of interest, if any, accrued and unpaid on the Americold Pool Loan
at the excess of the default rate over 8.894%, and (c) to Excess Interest. See
"--Certain Characteristics of the Mortgage Loans--ARD Loans" herein. The
scheduled principal balance of the Americold Pool Loan as of its Anticipated
Repayment Date will be approximately $116,872,746.
PREPAYMENT. Except as described below, voluntary prepayment is prohibited
under the Americold Pool Loan prior to April 11, 2008, except in connection
with certain casualty or condemnation events, permitted partial prepayments to
cure an event of default or upon the occurrence of an Americold Pool Low Debt
Reserve Application Event, as described below. From and after April 11, 2008,
the Americold Pool Loan may be voluntarily prepaid in whole or in part on any
Americold Pool Due Date without payment of a yield maintenance charge or
prepayment premium.
If all or any part of the principal amount of the Americold Pool Loan is
prepaid upon an acceleration of the Americold Pool Loan following the
occurrence of an event of default under the Americold Pool Loan at any time
prior to April 11, 2008, the Americold Pool Borrower will be required to pay a
yield maintenance charge. No yield maintenance charge or prepayment premium
will be payable upon any mandatory prepayment of the Americold Pool Loan in
connection with a casualty or condemnation unless an event of default under the
Americold Pool Loan has occurred and is continuing, in which case the Americold
Pool Borrower will be required to pay a yield maintenance payment calculated in
the manner described above. No yield maintenance payments will be required in
connection with a prepayment of the Americold Pool Loan upon the occurrence of
an Americold Pool Low Debt Service Application Event as described below.
Prior to the second anniversary of the Closing Date after the occurrence
and during the continuance of an event of default as a result of a default with
respect to a particular Americold Pool Property, if the elimination of such
Americold Pool Property from the Americold Pool Properties would fully cure
such event of default, the Americold Pool Borrower will be permitted to prepay
the Americold Pool Loan in a principal amount equal to the Americold Pool
Release Amount for such Americold Pool Property, together with all accrued and
unpaid interest on the principal amount being so repaid, and the yield
maintenance charge owing as a result of such prepayment.
"Americold Pool Release Amount" means all accrued and unpaid interest on
the Americold Pool Loan to but not including the Americold Pool Defeasance
Date, except (prior to an acceleration of the Americold Pool Loan) for an event
of default related solely to a default at a specific Americold Pool Property
that will be released from the lien thereon by prepayment of the release amount
(generally, 125% of the related Allocated Loan Amount) with respect to the
applicable Americold Pool Property.
RELEASE IN EXCHANGE FOR SUBSTITUTE COLLATERAL--DEFEASANCE. The Americold
Pool Borrower is permitted on any date on or after the second anniversary of
the Closing Date to defease all or a portion
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<PAGE>
of the Americold Pool Loan with U.S. Treasury obligations, provided that, among
other conditions, the Americold Pool Borrower gives the mortgagee at least 30
days' prior written notice of the date of such defeasance (the "Americold Pool
Defeasance Date"), no event of default will exist on the Americold Pool
Defeasance Date, and provided further that the Americold Pool Borrower pays on
the Americold Pool Defeasance Date (i) the Americold Pool Release Amount, (ii)
all other sums (not including scheduled interest or principal payments) then
due under the Americold Pool Loan and the related loan documents, (iii) the
Americold Pool Defeasance Deposit and (iv) all reasonable costs and expenses of
the mortgagee incurred in connection with the defeasance. In addition, the
Americold Pool Borrower will be required to deliver to the mortgagee, among
other things: (a) a security/control agreement granting the mortgagee a first
priority lien on the Americold Pool Defeasance Deposit and the U.S. Treasury
obligations purchased with the Americold Pool Defeasance Deposit, (b) an
opinion of counsel to the Americold Pool Borrower in form satisfactory to the
mortgagee, in its reasonable discretion, stating, among other things, that the
mortgagee has a perfected security interest in the U.S. Treasury obligations
purchased with the Americold Pool Defeasance Deposit, (c) a confirmation, in
form and substance reasonably satisfactory to the mortgagee, from a "Big Six"
independent certified accounting firm, that the Americold Pool Defeasance
Deposit is sufficient to pay all scheduled payments due from the Americold Pool
Borrower under the Americold Pool Loan in connection with the proposed
defeasance, (d) an officer's certificate certifying that all the requirements
for defeasance set forth in the Americold Pool Loan documents have been met,
(e) if required by the Rating Agencies, a non-consolidation opinion with
respect to the successor borrower, if any, in form and substance satisfactory
to the mortgagee and the Rating Agencies, and (f) a written confirmation from
the Rating Agencies that such defeasance will not result, in and of itself, in
a downgrade, qualification or withdrawal of the then current ratings of the
Certificates, if required by such Rating Agencies as a condition to defeasance
that such conditions have been met.
"Americold Pool Defeasance Deposit" means a cash amount equal to the sum
of (i) the remaining principal amount of the Americold Pool Loan (in the case
of a total defeasance) or the principal amount of the defeased note (in the
case of a partial defeasance), as applicable, with interest thereon, (ii)
without duplication, any costs and expenses incurred or to be incurred in the
purchase of U.S. Treasury obligations providing payments on or prior to, but as
close as possible to, all successive payment dates after the Americold Pool
Defeasance Date, in the case of a defeasance for the entire outstanding
principal balance of the note, or the defeased note, in the case of a
defeasance for only a portion of the outstanding principal balance of the
Americold Pool Loan, as applicable, and in amounts equal to the scheduled
interest and principal payments due under the Americold Pool Loan or the
defeased note, as applicable, assuming for these purposes that the principal
portion of such payments include the entire scheduled outstanding principal of
the Americold Pool Loan as of its Anticipated Repayment Date, and (iii) any
revenue, documentary stamp or intangible taxes or any other tax or charge due
in connection with the transfer of the note, the creation of the defeased note
and the undefeased note, if applicable, any transfer of the defeased note or
otherwise required to accomplish the defeasance.
Upon receipt of the Americold Pool Defeasance Deposit, the mortgagee,
using the Americold Pool Defeasance Deposit, is required to purchase
noncallable U.S. Treasury obligations on behalf of the Americold Pool Borrower
and such U.S. Treasury obligations will serve as the sole collateral for the
payments of the amounts due under the Americold Pool Loan, or the defeased
portion of the Americold Pool Loan in the case of a partial defeasance. Upon a
deposit of such U.S. Treasury obligations, the Americold Pool Borrower will
have the right to assign the obligation to make payments under the Americold
Pool Loan with respect to the principal amount of the Americold Pool Loan that
has been defeased to a special purpose entity established or designated by the
mortgagee.
In connection with the total defeasance of the Americold Pool Loan, the
Americold Pool Borrower will be permitted to obtain the release of the mortgage
encumbering all of the Americold Pool Properties and related collateral. In
connection with a partial defeasance, the Americold Pool Borrower will be
permitted to obtain the release of the applicable mortgage encumbering one or
more of the Americold Pool Properties and related collateral upon the
satisfaction of the following conditions, among others: (a) the principal
balance of the defeased note will equal or exceed the Americold Pool Release
Amount for such Americold Pool Property being released (or in connection with a
repayment by reason of a casualty or
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condemnation or in connection with curing a property level event of default, in
an amount equal to the net proceeds to which the Americold Pool Borrower is
entitled (such amount not to exceed the applicable Americold Pool Release
Amount or to be less than the applicable Allocated Loan Amount) and all accrued
and unpaid interest in respect of the defeased note) and the requirements for
defeasance described above must have been satisfied, (b) the Americold Pool
Borrower will provide the mortgagee with all release documents accompanied by
an officer's certificate certifying that such documentation (i) is in
compliance with all legal requirements in all material respects, (ii) will
effect such release in accordance with the terms of the Americold Pool Loan
documents, and (iii) will not affect the liens, security interests and other
rights of the mortgagee under the remaining Americold Pool Properties not being
released, (c) after giving effect to such release, the Americold Pool Debt
Service Coverage Ratio for (i) the Americold Pool Properties that have not been
released (unless a written confirmation from the Rating Agencies is obtained
that there will be no reduction, qualification or withdrawal of the then
current ratings of the Certificates with respect thereto) is not permitted to
be less than the Americold Pool Debt Service Coverage Ratio as of the closing
date of the Americold Pool Loan and (ii) the Americold Pool Properties that
have not been released (other than the Americold Pool Property in Denver,
Colorado (unless the Americold Pool Borrower acquires fee title to such
Americold Pool Property or the term of the applicable ground lease (inclusive
of any additional extension and/or renewal options) is extended to a date that
is beyond the tenth anniversary of the Americold Pool Maturity Date) is not
permitted to be less than 1.60x, unless written confirmation from the Rating
Agencies is obtained that such release will not result, in and of itself, in a
reduction, qualification or withdrawal of the then current ratings of the
Certificates with respect thereto; provided, however, that this clause (c) will
not be applicable in connection with a partial prepayment in connection with a
property level event of default as described above or a partial prepayment
required in connection with a casualty or condemnation as described in
"--Casualty and Condemnation" below.
The Americold Pool Borrower may also, without the consent of the
mortgagee, transfer, or grant interests in respect of, all or any part of
unimproved portions of any one or more Americold Pool Properties (by sale,
ground lease, subordination of fee interest to a leasehold mortgage, sublease
or other conveyance of any interest) to any person, including affiliates of the
Americold Pool Borrower, and tenants and the Americold Pool Master Lessee and
their respective affiliates as well as grant in connection therewith in respect
of the retained portion of the applicable Americold Pool Property reasonable
easements, restrictions, covenants, reservations and rights of way for, among
other things, traffic circulation, ingress, egress, parking, access, water and
sewer lines, telephone and telegraph lines, electric lines or other utilities
or for other similar purposes, provided, in each such case, (x) such unimproved
portion is required to be either for the purpose of erecting, maintaining and
operating cold or dry storage structures or for other structures and
improvements not inconsistent with the use of the related Americold Pool
Property, and (y) neither such release nor the granting of such rights with
respect to the retained portion of the Americold Pool Property will materially
adversely affect the value of the retained portion (as distinguished from the
entire Americold Pool Properties), or the net operating income of the retained
portion of such Americold Pool Property (taking into account, to the extent
applicable, any potential loss of revenue resulting if the transfer and
development of the unimproved portion were not to occur), as supported by an
officer's certificate delivered to the mortgagee by the Americold Pool
Borrower.
Notwithstanding the foregoing, the Americold Pool Borrower may assign to
any person, including an affiliate, any purchase options it may have under any
ground lease to acquire fee title to an Americold Pool Property, such
assignment to be free and clear of any lien in favor of the mortgagee.
SUBSTITUTION OF INDIVIDUAL PROPERTIES. The Americold Pool Borrower is
permitted to substitute for any Americold Pool Property owned by it, a property
of like kind and quality, subject to the terms and conditions set forth in the
Americold Pool Loan documents, and provided that, among other things, there is
no event of default continuing, a written confirmation has been obtained from
the Rating Agencies that such substitution will not result, in and of itself,
in a reduction, qualification or withdrawal of the then current ratings of the
Certificates with respect thereto and for all the Americold Pool Properties
after giving effect to such substitution. In no event will the Americold Pool
Borrower be permitted to substitute more than six properties over the term of
the Americold Pool Loan.
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OTHER FINANCING. Each of the Americold Pool Properties also serves as
security for another loan made by GSMC to the Americold Pool Borrower on April
22, 1998 (the "Other Americold Pool Loan"). Both the Americold Pool Loan and
the Other Americold Pool Loan are secured by a single mortgage on each of the
Americold Pool Properties. The Other Americold Pool Loan is included in the
trust fund created in connection with the issuance of the Seller's Commercial
Mortgage Pass-Through Certificates, Series 1998-GL II ("Series 1998-GL II").
The Americold Pool Loan and Other Americold Pool Loan are pari passu loans,
entitled to payments made by the Americold Pool Borrower and other amounts
received in respect of the Americold Pool Properties pro rata on the basis of
amounts owning under each such loan. In connection with the origination of the
Americold Pool Loan, the trustee of Series 1998-GL II (the "Other Trustee")
(currently LaSalle National Bank, the Trustee for the Certificates) and GSMC
entered into a co-lender agreement (the "Co-Lender Agreement"). The Other
Trustee is the mortgagee of record of each Americold Pool Property. Under the
terms of the Co-Lender Agreement, the servicer of Series 1998-GL II, which will
be the Master Servicer for the Series 1998-C1 Certificates, will service both
the Americold Pool Loan and the Other Americold Pool Loan and the special
servicer of Series 1998-GL II (which will be the Special Servicer for the
Series 1998-C1 Certificates) will, to the extent necessary, specially service
both the Americold Pool Loan and the Other Americold Pool Loan, in each case
under the terms of the pooling and servicing agreement related to Series
1998-GL II.
The Americold Pool Borrower is not permitted to incur or assume any
additional indebtedness, or issue any class of preferred equity securities,
other than: (a) unsecured trade payables incurred in the ordinary course of the
Americold Pool Borrower's business and customarily paid within 60 days of
incurrence and in fact not more than 60 days outstanding, (b) capital and
operating lease obligations in respect of equipment used at the Americold Pool
Properties, with an annual rent obligation not greater than $2,250,000 (as
increased by a specified consumer price index), and (c) such other unsecured
indebtedness approved by the mortgagee in its sole discretion.
ALTERATIONS. Except upon compliance with certain conditions set forth in
the Americold Pool Loan documents (which do not include the approval of the
mortgagee), the Americold Pool Borrower is prohibited from making or permitting
any demolitions, alterations, installations, improvements, expansions,
reductions or decorations of or to any Americold Pool Property or any part
thereof.
RESERVES. Pursuant to the terms of the Americold Pool Loan, the Americold
Pool Borrower has established the following reserve accounts, each to be funded
in accordance with the annual reserve requirement set forth below:
RESERVE ACCOUNTS--AMERICOLD POOL LOAN
<TABLE>
<CAPTION>
ONGOING MAINTENANCE BUILDING IMPROVEMENTS DEFERRED MAINTENANCE INSURANCE AND TAX
RESERVE ACCOUNT RESERVE ACCOUNT RESERVE ACCOUNT RESERVE ACCOUNT
- ------------------------- ----------------------- ---------------------- ------------------
<S> <C> <C> <C>
$ 3,534,841(1) $ 3,000,000(1) $ 543,006(2) (3)
</TABLE>
- ----------
(1) As such amount may be reduced in connection with the release of an
Americold Pool Property, payable in equal monthly installments or, with a
written confirmation from the Rating Agencies that such substitution will
not result, in and of itself, in a downgrade, qualification or withdrawal
of the then current ratings of the Certificates with respect thereto,
such lesser amount as the Americold Pool Borrower or the Americold Pool
Master Lessee may request to be so funded.
(2) Funded at the initial closing of the Americold Pool Loan.
(3) Funded in monthly installments of one-twelfth of the taxes and insurance
premiums that will be payable during the ensuing 12 months, provided that
such monthly deposit of taxes with respect to any Americold Pool Property
that is ground leased by the Americold Pool Borrower is required to be
waived if the Americold Pool Borrower provides the mortgagee with (a)
satisfactory evidence that a mortgage of the ground lessor's fee interest
in such Americold Pool Property to an institutional lender provides for
the monthly escrow of taxes with respect thereto, and (b) annual proof of
payment of such taxes, and provided further that, if no event of default
has occurred and is continuing, and the Americold Pool Borrower has
provided evidence that a tenant or subtenant has made the required
payments of taxes for a particular tax parcel will be conditionally
waived.
LOW DEBT SERVICE RESERVE ACCOUNT. The Americold Pool Borrower has
established a low debt service reserve account (the "Americold Pool Low Debt
Service Reserve Account"), to be funded from
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and after the occurrence of an Americold Pool Low Debt Service Reserve Trigger
Event until an Americold Pool Low Debt Service Return Event in an amount equal
to all remaining funds in the Americold Pool Deposit Account after the
application of funds under clauses (i) through (v) described in the first part
of the third paragraph in "--Cash Management; Lockbox" below.
"Americold Pool Low Debt Service Application Event" means that, as of the
first day of any calendar quarter, the Americold Pool Debt Service Coverage
Ratio for the trailing 12-month period will be less than 1.15x. "Americold Pool
Low Debt Service Return Event" means that, as of the first day of any calendar
quarter following an Americold Pool Low Debt Service Trigger Event (a) the
Americold Pool Debt Service Coverage Ratio for the trailing 12-month period on
the first day of each of two consecutive calendar quarters will be greater than
1.25x, and (b) no event of default will have occurred and be continuing.
"Americold Pool Low Debt Service Trigger Event" means that, as of the first day
of any calendar quarter, the Americold Pool Debt Service Coverage Ratio for the
trailing 12-month period, will be less than 1.25x.
"Americold Pool Debt Service Coverage Ratio" means, as to any date, the
quotient obtained by dividing (i) the Americold Pool Borrower's Americold Pool
Net Cash Flow for the 12-month period immediately preceding such date by (ii)
the aggregate interest and principal payments actually due and payable on the
Americold Pool Loan (other than any defeased portion thereof) during such
period. "Americold Pool Net Cash Flow" means, (a) for any period in which the
Americold Pool Master Lease is in effect, net operating income from the
Americold Pool Properties less the amount that the Americold Pool Borrower is
required to deposit in the Building Improvements Reserve Account during the
applicable period and (b) for any period in which the Americold Pool Master
Lease is not in effect, net operating income less the amount that the Americold
Pool Borrower is required to deposit in the Ongoing Maintenance Reserve Account
and the Building Improvements Reserve Account during the applicable period.
CASH MANAGEMENT; LOCKBOX. The Americold Pool Borrower has established and
is required to maintain a deposit account (the "Americold Pool Deposit
Account") in the name of and under the sole dominion and control of the
mortgagee, and all income received or accrued in connection with the operation
of the Americold Pool Properties (the "Americold Pool Receipts") by the
Americold Pool Borrower and the Americold Pool Master Lessee are required to be
transferred to the Americold Pool Deposit Account as described below.
Within one business day after the Americold Pool Master Lessee's receipt
of Americold Pool Receipts, the Americold Pool Master Lessee is required to
deposit such Americold Pool Receipts in one or more segregated "sweep" bank
accounts (each, an "Americold Pool Local Account") in the name of the Americold
Pool Master Lessee at a financial institution located near one or more of the
Americold Pool Properties or, if the Americold Pool Master Lessee does not
elect to use Americold Pool Local Accounts, in the Americold Pool Deposit
Account. The Americold Pool Master Lessee is not permitted to commingle funds
on deposit in an Americold Pool Local Account with funds related to any other
properties (other than one or more Americold Pool Properties) owned or managed
by the Americold Pool Master Lessee or by any other person.
Prior to the Anticipated Repayment Date, during each period commencing on
the day immediately following a payment date and ending on the following
payment date (each such period, an "Americold Pool Collection Period"),
provided that no event of default has occurred and is continuing, the mortgagee
is required to transfer funds from the Americold Pool Deposit Account in the
following order of priority: (i) to fund the Insurance and Tax Reserve Account,
(ii) to pay the Americold Pool Monthly Debt Service Payment Amount, (iii) to
fund the Ongoing Maintenance Reserve Account, (iv) to fund the Building
Improvements Reserve Account, (v) from and after the occurrence of an Americold
Pool Low Debt Service Reserve Trigger Event until the occurrence of a
corresponding Americold Pool Low Debt Service Reserve Return Event, as follows:
(1) if an Americold Pool Master Lease is in effect, (A) to fund an
operating account (the "Americold Pool Operating Account") in an amount
equal to the budgeted operating expenses with respect to the calendar
month ending within the Americold Pool Collection Period in question, as
set forth in the annual budget approved by the Americold Pool Borrower
as lessor
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under the Americold Pool Master Lease and, if required under the
Americold Pool Loan documents, by the mortgagee (subject to adjustment
for deviations between the actual amount of actual operating expenses
with respect to the Americold Pool Properties for the preceding month
and the amount disbursed from the Americold Pool Deposit Account for
budgeted operating expenses during such month), (B) to the mortgagee to
pay any default interest due and owing on the Americold Pool Loan, up to
an amount equal to the sum of the installments of the fixed rent due
under the Americold Pool Master Lease, the percentage rent due under the
Americold Pool Master Lease percentage rent and the purchase price
payable, if any, for personalty in connection with the qualification of
the Americold Pool Master Lessor or an affiliate as a REIT
(collectively, the "Americold Pool Master Lease Installment"), less the
sum of the Americold Pool Monthly Debt Service Payment Amount and the
amounts disbursed pursuant to clause (iv) above, (C) to the Americold
Pool Low Debt Service Reserve Account, in an amount up to the Americold
Pool Master Lease Installment, less the sum of the Americold Pool
Monthly Debt Service Payment Amount previously disbursed as described in
clause (ii) above, the amount disbursed to the Building Improvements
Reserve Account as described above and the amount disbursed in respect
of default interest as described in clause (v) above, and (D) the
balance to the Americold Pool Master Lessee, or
(2) if an Americold Pool Master Lease is not in effect, (A) to fund the
Americold Pool Operating Account in an amount equal to the budgeted
operating expenses for the calendar month ending within the Americold
Pool Collection Period in question, and (B) to the mortgagee for the
payment of any Americold Pool Default Interest due and owing and (C) the
balance to the Americold Pool Low Debt Service Reserve Account,
(vi) if no Americold Pool Low Debt Service Trigger Event has occurred, or if an
Americold Pool Low Debt Service Reserve Trigger Event and a corresponding
Americold Pool Low Debt Service Reserve Return Event have occurred, as follows:
(1) if an Americold Pool Master Lease is in effect, (A) to the Americold
Pool Operating Account in an amount equal to the budgeted operating
expenses, (B) to the mortgagee to pay Americold Pool Default Interest
then due and owing, up to an amount no greater than the excess of the
Americold Pool Master Lease Installment over the sum of the Americold
Pool Monthly Debt Service Payment Amount disbursed pursuant to clause
(ii) and (iv) above, (C) to the Americold Pool Borrower, in an amount
equal to the excess of the Americold Pool Master Lease Installment over
the sum of the Americold Pool Monthly Debt Service Payment Amount, the
amounts required to be disbursed on account of the Building Improvements
Reserve Account and default interest due and owing on the Americold Pool
Loan (such excess, the "Americold Pool Master Lease Installment
Balance"), and (D) the balance to the Americold Pool Master Lessee, or
(2) if an Americold Pool Master Lease is not in effect, (A) to the
Americold Pool Operating Account in an amount equal to the budgeted
operating expenses, (B) to the mortgagee for payment of any Americold
Pool Default Interest due and owing, and (C) the balance to the
Americold Pool Borrower.
The failure of the Americold Pool Borrower to have funds available in the
Americold Pool Deposit Account sufficient to make all payments required under
clauses (i) through (iv) above prior to the Anticipated Repayment Date will
constitute an event of default under the Americold Pool Loan.
TRANSFER OF PROPERTY AND INTEREST IN THE AMERICOLD POOL BORROWER;
ENCUMBRANCES. With certain permitted exceptions the Americold Pool Borrower is
generally not permitted to (a) sell, assign, convey, transfer or otherwise
dispose of or encumber, mortgage or hypothecate, legal, beneficial or equitable
interests in the Americold Pool Properties, or (b) permit or suffer any owner,
directly or indirectly, of a beneficial interest in all the Americold Pool
Properties (or any of them) to transfer such interest, whether by transfer of
stock or other beneficial interest in any entity or otherwise.
The Americold Pool Borrower may only sell, assign, convey, transfer or
otherwise dispose of legal or equitable title to or any interest in the
Americold Pool Properties (or any of them) if: (A) after giving
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effect to the proposed transaction: (i) either (x) the transfer is all but not
less than all of the Americold Pool Properties to one person and the mortgagee
has (a) received a written confirmation from the Rating Agencies that such
action will not result, in and of itself, in a reduction, qualification or
withdrawal of the then current ratings of the Certificates with respect
thereto; (b) reviewed and approved the transferee's organizational documents;
(c) reviewed and approved legal opinions (including non-consolidation opinions)
with respect to such transferee; and (d) reviewed and approved all loan
documents required by the mortgagee to effectuate such transfer (including,
without limitation, the assumption of the Americold Pool Loan by such
transferee); or (y) the transferee will be at least 51% owned and controlled
(directly or indirectly) by a pre-approved party and the Americold Pool
Properties will be subject to an Americold Pool Master Lease with an Americold
Pool Master Lessee or an acceptable property manager pursuant to an Americold
Pool Property Management Agreement; (ii) the Americold Pool Properties will be
owned by one or more single purpose entities, each of which will be in
compliance with certain single purpose bankruptcy-remote representations,
warranties and covenants set forth in the Americold Pool Loan documents and
which have assumed and agreed to comply with the terms of the Americold Pool
Loan documents; (iii) if the proposed transaction permits the mortgagee of any
ground lessor's fee interest to accelerate its loan to such ground lessor, then
either (x) the Americold Pool Borrower will provide the mortgagee with a
written agreement or acknowledgment from the fee mortgagee that it will not
accelerate its loan to the ground lessor or (y) the proposed transaction will
provide for the payment in full of such fee mortgage loan; and (iv) no event of
default will occur and be continuing; and (B) prior to any such transaction,
the proposed transferee delivers to mortgagee an officer's certificate giving
certain assurances to the general effect that the transferee is not an employee
benefit plan, or, in any event, the transfer will not give rise to "prohibited
transactions" under ERISA, or similar laws.
CASUALTY AND CONDEMNATION. In the event of a casualty at an Americold Pool
Property that involves a loss of less than 30% of the original Americold Pool
Release Amount with respect to the affected Americold Pool Property or a
condemnation at an Americold Pool Property that involves a loss of less than
20% of the original Americold Pool Release Amount with respect to the affected
Americold Pool Property, the mortgagee is required to permit the application of
the proceeds resulting therefrom (after reimbursement of any expenses incurred
by the mortgagee) to reimburse the Americold Pool Borrower for the cost of
restoring, repairing, replacing or rebuilding the affected Americold Pool
Property, in the manner described below, provided that no event of default has
occurred and is then continuing and, in the reasonable judgment of the
mortgagee: (i) the Americold Pool Properties (taken as a whole), after such
restoration, will adequately secure the outstanding principal balance of the
Americold Pool Loan, (ii) the restoration can be completed by the earliest to
occur of: (a) the 365th day following the receipt of the proceeds or, with a
written confirmation from the Rating Agencies that there will be no reduction,
qualification or withdrawal of the then current ratings of the Certificates
with respect thereto, such longer period as may reasonably be required, (b) the
Americold Pool Maturity Date, and (c) with respect to a casualty, the
expiration of the payment period on the rental-loss insurance or business
interruption insurance coverage in respect of such casualty; and (iii) during
the period of the restoration, the sum of (y) income derived from the Americold
Pool Properties (taken as a whole), plus (z) proceeds of rental-loss insurance
or business interruption insurance, if any, payable will equal or exceed the
sum of operating expenses and payments of principal and interest on the
Americold Pool Loan.
If any of the conditions set forth in the foregoing proviso is not
satisfied, then, unless the mortgagee elects otherwise, at its sole option, the
proceeds are required to be applied to the prepayment of the Americold Pool
Loan without the payment of a prepayment premium or penalty, other than a yield
maintenance charge if an event of default has occurred and is continuing, and
the Americold Pool Borrower will be entitled to receive a release of the
mortgage lien encumbering the Americold Pool Property in accordance with and
subject to the terms described in "--Release in Exchange for Substitute
Collateral--Defeasance" above in connection with a release due to defeasance,
unless (a) a reciprocal easement and/or operating agreement, and similar
agreements affecting the Americold Pool Property, (b) warehousing agreements,
logistics and services agreements, and other similar agreements with all or
substantially all of an Americold Pool Property, or (c) a lease with a tenant
occupying all or
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substantially all of the Americold Pool Property, requires that such proceeds
be applied to a restoration of the affected Americold Pool Property and no
event of default has occurred and is continuing, in which event the mortgagee
is required to make the proceeds available for a restoration.
In the event of a casualty that involves a loss of 30% or more of the
original Americold Pool Release Amount with respect to the affected Americold
Pool Property, or a condemnation that involves a loss of 20% or more of the
original Americold Pool Release Amount with respect to the affected Americold
Pool Property, then the mortgagee will have the option (to be exercised by
notice to the Americold Pool Borrower within 30 days after receipt of the
proceeds) to apply the net proceeds to the prepayment of the Americold Pool
Loan (and the Americold Pool Borrower will be entitled to receive a release of
the mortgage lien affecting the Americold Pool Property) or, provided the
conditions set forth in the proviso in the second preceding paragraph above are
complied with, to have such proceeds applied to reimburse the Americold Pool
Borrower for the cost of any restoration in the manner described below (and the
mortgagee will be deemed to have elected restoration if it fails to give such
notice within 30 days after receipt of the proceeds), unless an operating
agreement or a lease with a tenant occupying all or substantially all of the
Americold Pool Property requires that such proceeds be applied to a restoration
and no event of default has occurred and is continuing, in which event the
mortgagee is required to make the proceeds available for a restoration. Any
application of proceeds to the repayment of the Americold Pool Loan as
described above will be without any prepayment premium or penalty, except that
if an event of default has occurred and is continuing, the Americold Pool
Borrower will be required to pay the yield maintenance payment, if any, as
described herein.
AIMCO MULTIFAMILY POOL: THE BORROWER; THE PROPERTIES
THE LOAN. The "AIMCO Multifamily Pool Loan" had a principal balance as of
the Cut-Off Date of approximately $109,149,602 and is evidenced by 15
promissory notes (collectively, the "AIMCO Multifamily Pool Notes") issued by
VMS National Properties (the "AIMCO Multifamily Pool Borrower"). Each AIMCO
Multifamily Pool Note may be referred to herein as an "AIMCO Individual
Multifamily Pool Loan." The AIMCO Multifamily Pool Loan was originated by MF
VMS, L.L.C. to AIMCO Multifamily Pool Borrower and purchased by Archon as of
December 29, 1997. The AIMCO Multifamily Pool Loan is secured by 15 first lien
mortgages and deeds of trust encumbering 15 multifamily properties in Oregon,
California, Indiana, Arizona, Louisiana, Nebraska, Maryland, Texas, and
Arkansas (collectively, the "AIMCO Multifamily Pool Properties") and certain
other related collateral. Each AIMCO Multifamily Pool Note has a face amount
("AIMCO Multifamily Pool Face Amount") which as of the Cut-Off Date in the
aggregate equals $152,224,512 and a "AIMCO Multifamily Pool Agreed Valuation
Amount" which as of the Cut-Off Date in the aggregate equals $109,149,602. See
"--AIMCO Multifamily Pool: The Loan--Payment Terms." Each title insurance
policy issued upon the origination of the AIMCO Multifamily Pool Loan insures
that each AIMCO Multifamily Pool deed of trust securing the AIMCO Multifamily
Pool Loan constitutes a valid and enforceable first lien on the AIMCO
Multifamily Pool Properties, subject to certain exceptions and exclusions from
coverage set forth in the policies. 1 of the AIMCO Individual Multifamily Pool
Loans with an aggregate principal balance as of the Cut-Off Date of $29,312,804
are included in Group 1. 14 of the AIMCO Individual Multifamily Pool Loans with
an aggregate principal balance as of the Cut-Off Date of $79,836,798 are
included in Group 2.
The AIMCO Multifamily Pool Loan was made pursuant to the Second Amended
and Restated Plan of Reorganization of AIMCO Multifamily Pool Borrower (the
"AIMCO Multifamily Pool Plan") in the Chapter 11 proceeding, In re VMS National
Properties (Bank. C.D. Cal., Case No. LA 91-65783-GM), as confirmed pursuant to
an order dated March 12, 1993 of the United States Bankruptcy Court for the
Central District of California, and as modified pursuant to a certain Order
Clarifying Plan Provisions and Approving Refinancing of Debtor's Secured
Obligations (the "AIMCO Multifamily Pool Revised Plan") entered by the
Bankruptcy Court on October 24, 1997.
THE BORROWER. The AIMCO Multifamily Pool Borrower is an Illinois general
partnership, whose partners are VMS National Residential Portfolio I and VMS
National Residential Portfolio II, each an Illinois limited partnership
(collectively, the "AIMCO Multifamily Pool General Partners"). The general
partner of each AIMCO Multifamily Pool General Partner is Maeril, Inc. a
Delaware corporation
S-58
<PAGE>
("Maeril"). The AIMCO Multifamily Pool Borrower is a single purpose entity
whose sole purpose is to own and operate the AIMCO Multifamily Pool Properties.
The organizational documents of the AIMCO Multifamily Pool Borrower do not
contain special purpose covenants, and the organizational structure of the
AIMCO Multifamily Pool Borrower does not include an independent director.
However, each of the AIMCO Multifamily Pool Borrower, the AIMCO Multifamily
Pool General Partners, Maeril, and a successor to Insignia Residential Group,
L.P. (the "AIMCO Multifamily Pool Manager"), executed separate certificates
agreeing to comply with standard special purpose entity requirements, and
certifying as to the accuracy thereof. Such certificates were executed for the
benefit of MF VMS, L.L.C., Archon Financial, L.P. and the Seller.
Maeril is wholly-owned by Apartment Investment and Management Co.
("AIMCO"). AIMCO is a publicly-held real estate investment trust engaged in the
ownership and management of multifamily real estate properties. AIMCO is the
largest manager of apartment communities in the United States.
THE PROPERTIES. The AIMCO Multifamily Pool Properties are comprised of 15
apartment complexes with approximately 2,961 multifamily units. The AIMCO
Multifamily Pool Properties were built between 1967-1978. As of September 2,
1998, the AIMCO Multifamily Pool Properties had an average occupancy of 96%.
Appraisals dated as of August 27, 1998 through September 22, 1998
determined the value for the AIMCO Multifamily Pool Properties to be
approximately $178,375,000, resulting in a Cut-Off Date LTV Ratio based on the
Cut-Off Date Balance of approximately 61.2%. Each AIMCO Multifamily Pool
Property appraisal was prepared in accordance with the Uniform Standards of
Professional Practice and FIRREA. See "Risk Factors--Limitations on Appraisals"
herein. Structural and seismic risk assessments were performed by a third party
structural firm for those assets located in seismic risk zones. The seismic
reports determined seismic zones and concluded PML rating percentages ranging
from 5%-22%, with an aggregate PML equal to $10,400,000. The AIMCO Multifamily
Pool Borrower has obtained earthquake insurance coverage based on the
requirements set forth in the AIMCO Multifamily Pool Loan loan documents.
Property condition reports on each of the AIMCO Multifamily Pool
Properties were completed by a third party structural/engineering firm in
December 1997. The property condition reports concluded that the AIMCO
Multifamily Pool Properties were generally in good physical condition but
recommended repairs and upgrades of approximately $2,053,815. A reserve account
was fully funded to cover the cost of repairing the identified items. During
1998, the AIMCO Multifamily Pool Borrower has remediated approximately $841,000
of this work. Since emergence from bankruptcy in March, 1993, the AIMCO
Multifamily Pool Borrower has funded significant repairs and improvements
totaling approximately $2,700,000, $2,600,000 and $2,600,000 in 1995, 1996 and
1997, respectively.
In addition to the initial deferred maintenance work, the structural
engineer estimates that annual capital expenditures of $204/unit should suffice
to maintain the AIMCO Multifamily Pool Properties in good physical condition.
Pursuant to the terms of the AIMCO Multifamily Pool replacement reserve
agreements, the AIMCO Multifamily Pool Borrower is required to reserve
$300/unit annually.
Phase I environmental site assessments were completed on each of the AIMCO
Multifamily Pool Properties by a third party environmental firm. The reports
indicated that remediation was necessary with respect to 15 of the AIMCO
Multifamily Pool Properties with an estimated aggregate cost of $181,000. The
reports did not reveal any other environmental liability that the Seller
believes would result in a material adverse impact on the AIMCO Multifamily
Pool Borrower's business, assets or operations taken as a whole. Nevertheless,
there can be no assurance that all environmental conditions and risks were
identified in such reports. See "Risk Factors--Environmental Risks" herein.
S-59
<PAGE>
AIMCO MULTIFAMILY POOL PROPERTIES SUMMARY
<TABLE>
<CAPTION>
OCCUPANCY
(AS OF
PROPERTY LOCATION 9/2/98)
- ---------------------------- ---------------------------- -----------
<S> <C> <C>
Scotchollow ................ San Mateo, California 97%
Pathfinder ................. Freemont, California 97%
Towers of Westchester College Park, Maryland 98%
Mountain View .............. San Dimas, California 99%
North Park ................. Evansville, Indiana 99%
Forest Ridge ............... Flagstaff, Arizona 91%
Crosswood Park ............. Citrus Heights, California 94%
Buena Vista ................ Pasadena, California 99%
Terrace Gardens ............ Omaha, Nebraska 95%
Casa De Monterey ........... Norwalk, California 96%
The Bluffs ................. Milwaukie, Oregon 97%
Vista Village .............. El Paso, Texas 96%
Chapelle La Grande ......... Merrilville, Indiana 92%
Watergate .................. Little Rock, Arkansas 88%
Shadowood .................. Monroe, Louisiana 97%
Total/Weighted
Average ............................................. 96%
<CAPTION>
CUT-OFF DATE APPRAISED
YEAR BUILT/ ALLOCATED LOAN VALUE CUT-OFF
PROPERTY RENOVATED AMOUNT (AS OF 9/98) DATE LTV DSCR
- ---------------------------- ------------- ---------------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Scotchollow ................ 1971 $ 29,312,804 $ 55,500,000 52.8% 1.54x
Pathfinder ................. 1971 13,543,952 26,000,000 52.1% 1.35x
Towers of Westchester 1968 12,191,075 17,000,000 71.7% 1.34x
Mountain View .............. 1978 7,200,564 10,650,000 67.6% 1.39x
North Park ................. 1970/74 6,290,057 8,400,000 74.9% 1.34x
Forest Ridge ............... 1968/75 5,935,726 8,600,000 69.0% 1.32x
Crosswood Park ............. 1977 5,601,533 10,000,000 56.0% 1.60x
Buena Vista ................ 1973 4,983,690 8,500,000 58.6% 1.45x
Terrace Gardens ............ 1971 4,466,847 6,250,000 71.5% 1.38x
Casa De Monterey ........... 1970 4,126,447 5,700,000 72.4% 1.10x
The Bluffs ................. 1967/71 3,746,170 5,925,000 63.2% 1.45x
Vista Village .............. 1971 3,341,728 3,650,000 91.6% 0.73x
Chapelle La Grande ......... 1973 3,228,160 4,350,000 74.2% 1.22x
Watergate .................. 1973 2,915,638 4,500,000 64.8% 1.31x
Shadowood .................. 1974 2,265,209 3,350,000 67.6% 1.61x
------------ ------------
Total/Weighted
Average ................ $109,149,602 $178,375,000 61.2% 1.39x
============ ============
</TABLE>
<TABLE>
<CAPTION>
AVERAGE
MONTHLY RENTAL % ONE % TWO
PROPERTY RATE PER UNIT NO. OF UNITS BEDROOM BEDROOM % OTHER
- ------------------------------- ---------------- -------------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Scotchollow ................... $1,336 418 69% 30% 1%
Pathfinder .................... $1,221 246 N/A 58% 42%
Towers of Westchester ......... $ 960 303 51% 34% 15%
Mountain View ................. $ 913 168 N/A 74% 26%
North Park .................... $ 521 284 48% 52% N/A
Forest Ridge .................. $ 636 278 60% 35% 5%
Crosswood Park ................ $ 796 180 37% 52% 12%
Buena Vista ................... $1,090 92 55% 38% 7%
Terrace Gardens ............... $ 773 126 N/A 50% 50%
Casa de Monterey .............. $ 681 144 78% 22% N/A
The Bluffs .................... $ 586 137 61% 35% 4%
Vista Village ................. $ 549 220 39% 61% N/A
Chapelle La Grande ............ $ 721 105 32% 56% 11%
Watergate ..................... $ 610 140 20% 50% 30%
Shadowood ..................... $ 543 120 53% 43% 3%
---
Total/Weighted
Average .................... $ 797 2,961
=====
</TABLE>
<PAGE>
OPERATING HISTORY: The following table shows certain audited information
(1995, 1996 and 1997) and unaudited information regarding the operating history
of the AIMCO Multifamily Pool Properties:
<TABLE>
<CAPTION>
TRAILING TWELVE UNDERWRITTEN
1995 1996 1997 (7/97-6/98) NET CASH FLOW
-------------- -------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C> <C>
REVENUES ..................... $23,189,240 $24,010,214 $25,422,985 $26,680,312 $26,635,981
EXPENSES ..................... 11,749,375 11,459,586 11,819,838 11,199,460 11,184,611
----------- ----------- ----------- ----------- -----------
NET OPERATING INCOME ......... 11,439,865 12,550,628 13,603,147 15,480,852 15,451,370
CAPITAL EXPENDITURES ......... 2,735,270 2,619,048 2,610,045 3,984,081 755,765
----------- ----------- ----------- ----------- -----------
NET CASH FLOW ................ $ 8,704,595 $ 9,931,580 $10,993,102 $11,496,771 $14,695,605
=========== =========== =========== =========== ===========
</TABLE>
S-60
<PAGE>
PROPERTY MANAGEMENT. The AIMCO Multifamily Pool Properties are subject to
separate management agreements for each AIMCO Multifamily Pool Property (the
"AIMCO Multifamily Pool Management Agreements") under which the AIMCO
Multifamily Pool Manager is responsible for the operation, management,
maintenance and leasing of the AIMCO Multifamily Pool Properties. Under the
terms of each AIMCO Multifamily Pool Management Agreement, the AIMCO
Multifamily Pool Manager is entitled to a management fee equal to 4% of the
rental income actually collected during the preceding month from the AIMCO
Multifamily Pool Properties. The original term of the AIMCO Multifamily Pool
Management Agreements were extended from December, 1993 to November, 1997. The
AIMCO Multifamily Pool Management Agreements were modified pursuant the Consent
and Agreement of Manager, dated as of December 29, 1997, between the AIMCO
Multifamily Pool Manager and MF VMS, L.L.C., authorizing AIMCO Multifamily Pool
Manager to continue managing the AIMCO Multifamily Pool Properties under the
terms of the AIMCO Multifamily Pool Management Agreements until termination by
either of the parties. The AIMCO Multifamily Pool Manager has agreed that (i)
upon the occurrence and continuation of an event of default under the AIMCO
Multifamily Pool Loan, the mortgagee may terminate the AIMCO Multifamily Pool
Management Agreements on 30 days' written notice without penalty or fee (other
than accrued and unpaid fees thereunder), (ii) it will not materially amend or
modify the AIMCO Multifamily Pool Management Agreements without the prior
written consent of the mortgagee (which consent will not be unreasonably
withheld) and (iii) that the AIMCO Multifamily Pool Management Agreements and
all rights and privileges of the AIMCO Multifamily Pool Manager thereunder,
including, but not limited to, the lien rights, if any, arising out of the
right to receive the management fee, will at all times continue to be subject
to and subordinate in all respects to the lien of the AIMCO Multifamily Pool
Loan. Any new manager selected to operate the AIMCO Multifamily Pool Properties
must be a person, firm or corporation whose character, financial strength,
stability and experience must be similar to the existing AIMCO Multifamily Pool
Manager and otherwise have adequate real estate experience acceptable to the
mortgagee in its reasonable discretion. The terms of the new management
agreements must be acceptable to the mortgagee in all respects (or, at a
minimum, be substantially similar and not result in an increase in the
management fee) and the Rating Agencies must confirm that the replacement of
the AIMCO Multifamily Pool Manager will not have an adverse effect on the
ratings of the Certificates.
AIMCO MULTIFAMILY POOL: THE LOAN
PAYMENT TERMS. The AIMCO Multifamily Pool Loan bears interest at a fixed
rate per annum equal to 8.50% payable in arrears calculated on an
actual/360-day year. There is a constant monthly payment of $879,519.87 with
the monthly payment based on a 320-month amortization schedule based on the
AIMCO Multifamily Pool Agreed Valuation Amount, with a balloon payment at
maturity on January 1, 2008. Interest is calculated and payable on the AIMCO
Multifamily Pool Agreed Valuation Amount unless and until the occurrence of an
event of default under the AIMCO Multifamily Pool Loan. In addition, the AIMCO
Multifamily Pool Borrower would then be obligated to repay the full AIMCO
Multifamily Pool Face Amount rather than the AIMCO Multifamily Pool Agreed
Valuation Amount. The difference between the AIMCO Multifamily Pool Face Amount
and AIMCO Multifamily Pool Agreed Valuation Amount result from the AIMCO
Multifamily Pool Plan. The AIMCO Multifamily Pool Loan is a non-recourse loan
with carveouts and a several (but not joint) guarantee from each of the AIMCO
Multifamily Pool General Partners.
PREPAYMENT. Voluntary prepayment is prohibited under the AIMCO Multifamily
Pool Loan until January 1, 2007, except in connection with certain casualty or
condemnation events or other event of acceleration. From and after January 1,
2007, and provided no event of default exists, the outstanding principal
balance of each AIMCO Multifamily Pool Note (the "AIMCO Prepayment Amount")
(along with payment of all accrued and unpaid interest on the AIMCO Prepayment
Amount, together with a payment of all interest which would have accrued on
such AIMCO Prepayment Amount up to and including the first day of the calendar
month immediately following such prepayment) may be prepaid, in whole but not
in part, without penalty.
If all or any part of the principal amount of the AIMCO Multifamily Pool
Loan is prepaid upon an acceleration of the AIMCO Multifamily Pool Loan
following the occurrence of an event of default under the AIMCO Multifamily
Pool Loan , the AIMCO Multifamily Pool Borrower will be required to pay to the
S-61
<PAGE>
mortgagee (i) the AIMCO Multifamily Pool Face Amount for each AIMCO Multifamily
Pool Senior Note plus accrued interest and other amounts payable under the
AIMCO Multifamily Pool loan documents, plus (ii) an amount equal to the greater
of: (A) 1% of the AIMCO Multifamily Pool Agreed Valuation Amount; and (B) the
present value of a series of payments each equal to the Payment Differential
and payable on each monthly payment date over the remaining original term of
the AIMCO Multifamily Pool Notes and on the Maturity Date discounted at the
AIMCO Multifamily Pool Reinvestment Yield for the number of months remaining
from the date prepayment is received (the "Default Prepayment Date") through
and including the Maturity Date. The term "AIMCO Multifamily Pool Reinvestment
Yield" equals the lesser of (a) the yield on the U.S. Treasury issue (primary
issue) with a maturity date closest to the Maturity Date, or (b) the yield on
the U.S. Treasury issue (primary issue) with a term equal to the remaining
average life of the AIMCO Multifamily Pool Loan, with each such yield being
based on the bid price for such issue as published in The Wall Street Journal
on the date that is 14 days prior to the Default Prepayment Date (or, if such
bid price is not published on that date, the next preceding date on which such
bid price is so published). The term "AIMCO Multifamily Pool Payment
Differential" equals (x) the applicable interest rate minus the AIMCO
Multifamily Pool Reinvestment Yield, divided by (y) 12 and multiplied by (z)
the AIMCO Multifamily Pool Agreed Valuation Amount (or such other amount being
prepaid in order to reinstate the AIMCO Multifamily Pool Loan, provided such
amount does not exceed the AIMCO Multifamily Pool Agreed Valuation Amount) on
the Default Prepayment Date, provided that the Payment Differential will in no
event be less than zero.
SUBORDINATE FINANCING. The AIMCO Multifamily Pool Properties are further
subject to 15 second mortgage loans in the aggregate amount of $29,877,414 at
origination (collectively, the "AIMCO Multifamily Junior Loan") from the
mortgagee to AIMCO Multifamily Pool Borrower, and sold to Archon Financial as
of December 30, 1997. Since origination, the aggregate principal balance of the
AIMCO Multifamily Junior Loans has negatively amortized to $30,678,690 as of
the Cut-Off Date as cash flow was used to fund the deferred maintenance reserve
account. The AIMCO Multifamily Junior Loan is evidenced by 15 promissory notes
(collectively, the "AIMCO Multifamily Junior Notes") and is secured by 15
junior mortgages and deeds of trust.
The mortgagee with respect to the AIMCO Multifamily Pool Loan has entered
into intercreditor and subordination agreements with the AIMCO Multifamily
Junior Loan mortgagee (the "AIMCO Multifamily Junior Mortgagee"), pursuant to
which the AIMCO Multifamily Junior Mortgagee has agreed that (i) the AIMCO
Multifamily Junior Loan is subject and subordinate to the AIMCO Multifamily
Pool Loan, (ii) following the occurrence and during the continuation of an
event of default under the AIMCO Multifamily Pool Loan, the AIMCO Multifamily
Junior Mortgagee will not accept any payment with respect to the AIMCO
Multifamily Junior Loan unless and until the AIMCO Multifamily Pool Loan
(including the portion representing the AIMCO Multifamily Pool Conditional
Debt) has been paid in full, (iii) in the event that the AIMCO Multifamily
Junior Mortgagee receives any payment with respect to the AIMCO Multifamily
Junior Loan before the AIMCO Multifamily Pool Loan (including the portion
representing the AIMCO Multifamily Pool Conditional Debt) has been paid in
full, the AIMCO Multifamily Junior Mortgagee will receive and hold such payment
in trust for the benefit of the mortgagee with respect to the AIMCO Multifamily
Pool Loan for application to the AIMCO Multifamily Pool Loan (including the
portion representing the AIMCO Multifamily Pool Conditional Debt) and (iv)
following a foreclosure of an AIMCO Multifamily Pool Loan deed of trust, the
AIMCO Multifamily Junior Mortgagee waives its rights to request that a final
judgment in such foreclosure proceeding direct payment from the proceeds of the
foreclosure sale to the AIMCO Multifamily Junior Mortgagee.
CROSS-DEFAULT/CROSS-COLLATERALIZATION. The AIMCO Multifamily Pool Notes
are cross-collateralized, but not cross-defaulted except with respect to the
AIMCO Multifamily Junior Note on the same AIMCO Multifamily Pool Property, to
the extent described below. Although not cross-defaulted, the AIMCO Multifamily
Pool Borrower is obligated to use the "gross receipts" from an AIMCO
Multifamily Pool Property first to pay taxes and insurance (which are payable
monthly to an escrow fund, in amounts equal to 1/12 of an amount which would be
sufficient to pay such taxes and insurance payable during the ensuing 12
months), operating expenses, debt service on the AIMCO Multifamily Pool Note
and applicable capital expenditures (which are reserved on a monthly basis in
an amount equal to $300 per
S-62
<PAGE>
unit per year) related to such AIMCO Multifamily Pool Property. The AIMCO
Multifamily Pool Borrower is then obligated to use any remaining gross receipts
to (a) first, pay any shortage in the payment of taxes, insurance, debt service
on any of the other AIMCO Multifamily Pool Notes and capital expenditures on
the other AIMCO Multifamily Pool Properties, (b) next, pay any deficiency owed
to the mortgagee as a result of a foreclosure of any AIMCO Multifamily Pool
deed of trust on any other AIMCO Multifamily Pool Property, and (c) lastly, any
balance is payable to the holder of the AIMCO Multifamily Junior Note on such
AIMCO Multifamily Pool Property. Such remaining balance will then be used by
the holder of the AIMCO Multifamily Junior Note: (u) to pay taxes, insurance
and operating expenses related to such AIMCO Multifamily Pool Property to the
extent not paid in accordance with the provisions above, (v) to pay the
interest on the AIMCO Multifamily Junior Note for such AIMCO Multifamily Pool
Property, (w) to pay applicable capital expenditures related to such AIMCO
Multifamily Pool Property, to the extent not paid in accordance with the above
provisions, (x) to pay the taxes, insurance, interest on the other AIMCO
Multifamily Junior Notes and applicable capital expenditures related to the
other AIMCO Multifamily Pool Properties, (y) to pay any deficiency owed to the
mortgagee as a result of a foreclosure of any AIMCO Multifamily junior deed of
trust, and (z) to pay the outstanding principal of the AIMCO Multifamily Junior
Note related to such AIMCO Multifamily Pool Property. The AIMCO Multifamily
Pool deeds of trust further provide that in the event the mortgagee realizes
proceeds in excess of the AIMCO Multifamily Pool Face Amount following
foreclosure of a AIMCO Multifamily Pool deed of trust, such excess proceeds may
be retained by the mortgagee and applied to repay the AIMCO Multifamily Junior
Note on such AIMCO Multifamily Pool Property.
Upon the occurrence of an event of default under an AIMCO Multifamily Pool
Note, such AIMCO Multifamily Pool Note provides that the mortgagee may apply
any funds then held or received by the mortgagee in such order as the mortgagee
in its sole discretion shall determine, (a) to the payment of (i) principal and
interest payments on the AIMCO Multifamily Pool Note, as well as any other
amounts owing under that AIMCO Multifamily Pool Note, (ii) principal and
interest payments on the other AIMCO Multifamily Pool Notes and (iii) any other
indebtedness secured by the other AIMCO Multifamily Pool Loan deeds of trust,
until all such amounts are paid in full, and (b) to preserve the AIMCO
Multifamily Pool Properties.
In the event the mortgagee realizes proceeds in excess of all amounts due
on an AIMCO Multifamily Pool Note (including principal equal to the AIMCO
Multifamily Pool Face Amount related to such note) following foreclosure of an
AIMCO Multifamily Pool Loan deed of trust on an AIMCO Multifamily Pool
Property, the AIMCO Multifamily Pool Loan documents provide that such excess
proceeds may be retained by the mortgagee and applied to repay the other AIMCO
Multifamily Pool Notes.
OTHER FINANCING. The AIMCO Multifamily Pool Borrower is not permitted to
incur any additional indebtedness other than unsecured trade payables incurred
in the ordinary course of the AIMCO Multifamily Pool Borrower's business.
S-63
<PAGE>
RESERVES. Pursuant to the terms of the AIMCO Multifamily Pool Loan, the
AIMCO Multifamily Pool Borrower has established the following reserve accounts,
each to be funded in accordance with the annual reserve requirement set forth
below:
<TABLE>
<CAPTION>
REPLACEMENT INSURANCE AND TAX
PROPERTY RESERVE ACCOUNT(1) ESCROW ACCOUNT
- ------------------------------- -------------------- ------------------
<S> <C> <C>
Scotchhollow .................. $125,400 (2)
Pathfinder .................... 73,800 (2)
Towers of Westchester ......... 90,900 (2)
Mountain View ................. 50,400 (2)
North Park .................... 85,200 (2)
Forest Ridge .................. 83,400 (2)
Crosswood Park ................ 54,000 (2)
Buena Vista ................... 27,600 (2)
Terrace Gardens ............... 37,800 (2)
Casa de Monterey .............. 43,200 (2)
The Bluffs .................... 41,100 (2)
Vista Village ................. 66,000 (2)
Chapelle Le Grande ............ 31,500 (2)
Watergate ..................... 42,000 (2)
Shadowood ..................... 36,000 (2)
--------
Total ........................ $888,300
========
</TABLE>
- ----------
(1) Funded in monthly installments equal to one-twelfth of the indicated
amount.
(2) Funded in monthly installments of one-twelfth of the taxes and insurance
premiums that will be payable during the ensuing 12 months, provided
however that deposits with respect to insurance premiums are not required
if the AIMCO Multifamily Pool Borrower pays the insurance premiums
directly.
TRANSFER OF PROPERTY AND INTEREST IN THE AIMCO MULTIFAMILY POOL BORROWER;
ENCUMBRANCES. Pursuant to the terms of the AIMCO Multifamily Pool Loan, the
AIMCO Multifamily Pool Borrower is not permitted, without the prior written
consent of the mortgagee, in the mortgagee's sole discretion, to sell, convey,
alienate, mortgage, encumber, pledge or otherwise transfer the AIMCO
Multifamily Pool Property or any part thereof, or permit the AIMCO Multifamily
Pool Property or any part thereof to be sold, conveyed, alienated, mortgaged,
encumbered, pledged or otherwise transferred.
A sale, conveyance, alienation, mortgage, encumbrance, pledge or transfer
of the AIMCO Multifamily Pool Property described above is deemed to include (i)
if AIMCO Multifamily Pool Borrower, any guarantor of the AIMCO Multifamily Pool
Loan, or any of the AIMCO Multifamily Pool General Partners or any such
guarantor is a corporation, the voluntary or involuntary sale, conveyance or
transfer of such corporation's stock (or the stock of any corporation directly
or indirectly controlling such corporation by operation of law or otherwise) or
the creation or issuance of new stock in one or a series of transactions by
which an aggregate of more than 10% of such corporation's stock are vested in a
party or parties who are not now stockholders or any change in the control of
such corporation; (ii) if the AIMCO Multifamily Pool Borrower, any guarantor of
the AIMCO Multifamily Pool Loan or any of the AIMCO Multifamily Pool General
Partners or any such guarantor is a limited or general partnership, joint
venture or limited liability company, the change, removal, resignation or
addition of a general partner, managing partner, limited partner, joint
venturer or member or the transfer of the partnership interest of any general
partner, managing partner or limited partner or the transfer of the interest of
any joint venturer or member; (iii) any pledge, hypothecation, assignment,
transfer or other encumbrance of any ownership interest in AIMCO Multifamily
Pool Borrower; (iv) an installment sales agreement wherein AIMCO Multifamily
Pool Borrower agrees to sell the AIMCO Multifamily Pool Property or any part
thereof for a price to be paid in installments; and (v) an agreement by AIMCO
Multifamily Pool Borrower leasing all or a substantial part of the AIMCO
Multifamily Pool Property for other than actual occupancy by a space tenant
thereunder or a sale, assignment or other transfer of, or the grant of a
security interest in, AIMCO Multifamily Pool Borrower's right, title and
interest in and to any leases or any rents.
S-64
<PAGE>
CASUALTY AND CONDEMNATION. In the event of a casualty or a condemnation at
a AIMCO Multifamily Pool Property, insurance proceeds received by the mortgagee
are to be disbursed for restoration provided (i) no event of default has
occurred and remains uncured under the AIMCO Multifamily Pool Note, AIMCO
Multifamily Pool deed of trust or other AIMCO Multifamily Pool loan documents,
(ii) AIMCO Multifamily Pool Borrower proceeds promptly after insurance claims
are settled with the restoration, replacement, rebuilding or repair of the
AIMCO Multifamily Pool Property, (iii) the restoration must be done in
compliance with all applicable rules, laws and regulations, and following the
restoration, the AIMCO Multifamily Pool Property will be permitted under all
applicable zoning laws to be used for all purposes associated with multi-family
residences, (iv) a set of the plans and specifications in connection with the
restoration must be submitted to the mortgagee and must be acceptable to the
mortgagee, (v) all costs and expenses incurred by the mortgagee in connection
with making the proceeds available for restoration must be paid by AIMCO
Multifamily Pool Borrower, (vi) rental loss insurance is available to offset
fully any abatement of rent to which any tenant may be entitled or any rent
loss arising out of the cancellation of any lease as a result of the casualty,
and (vii) the restoration must be able to be completed within 1 year after the
loss and at least 1 year prior to the Maturity Date of the AIMCO Multifamily
Pool Note.
Casualty and condemnation proceeds are required to be held in a separate
account and disbursed to AIMCO Multifamily Pool Borrower upon receipt of
evidence that (i) all materials installed and work and labor performed have
been paid in full, (ii) no notices of intention, mechanics or other liens or
encumbrances on the AIMCO Multifamily Pool Property arising out of the
restoration exist, and (iii) the balance of the proceeds must be sufficient to
pay in full the balance of the cost of restoration in compliance with the
requirements of the immediately preceding paragraph. If at any time the net
proceeds, or the undisbursed balance thereof, are not sufficient to pay in full
the balance of the cost of the restoration, the AIMCO Multifamily Pool Borrower
will deposit the deficiency with the mortgagee before any further disbursement
of the net proceeds will be made.
Any amounts received by the mortgagee which are not required to be
disbursed for the restoration will be retained and applied by the mortgagee
toward the payment of the AIMCO Multifamily Pool Loan as the mortgagee deems
proper.
Notwithstanding anything to the contrary contained above, the mortgagee
will not be obligated to make the net insurance proceeds available for
restoration of the AIMCO Multifamily Pool Property, unless the principal
balance of the AIMCO Multifamily Pool Note following the completion of the
restoration (assuming the amount of net proceeds received by the mortgagee in
excess of the cost of the restoration (as estimated by the mortgagee) is
applied to the prepayment of the AIMCO Multifamily Pool Note) will be in an
amount sufficient to cause (i) the AIMCO Multifamily Pool Debt Service Coverage
Ratio as determined by the mortgagee in its reasonable discretion applicable to
the AIMCO Multifamily Pool Property immediately following the restoration to be
not less than 1.2 to 1.0 and (ii) in the event of any restoration involving net
proceeds of more than $250,000, the ratio of (a) the then outstanding principal
balance of the AIMCO Multifamily Pool Note to (b) the appraised value of the
AIMCO Multifamily Pool Property after completion of the restoration (as
determined by an independent third-party appraiser holding an MAI designation
and having a national practice and at least ten years real estate experience
appraising properties of a similar nature and type as the AIMCO Multifamily
Pool Property) to be equal to or less than the AIMCO Multifamily Pool Minimum
Loan to Value Ratio.
"AIMCO Multifamily Pool Minimum Loan to Value Ratio" means a ratio equal
to the lesser of (A) 0.8x to 1.0x or (B) the ratio of (1) the then outstanding
principal balance of the AIMCO Multifamily Pool Note (calculated using the
AIMCO Multifamily Pool Face Amount to (2) the appraised value of the AIMCO
Multifamily Pool Property on the date hereof. The fee for such appraisal will
be paid for by the AIMCO Multifamily Pool Borrower.
"AIMCO Multifamily Pool Debt Service Coverage Ratio" means the ratio of
(A) the AIMCO Multifamily Pool NOI produced by the operation of the AIMCO
Multifamily Pool Property during the 12 calendar month period immediately
preceding the calculation to (B) the projected aggregate payments
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of interest and principal due under the AIMCO Multifamily Pool deed of trust
and the AIMCO Multifamily Pool Note and any other subordinate loans affecting
the AIMCO Multifamily Pool Property for the 12 calendar month period
immediately following the calculation.
"AIMCO Multifamily Pool NOI" means the gross income derived from the
operation of the AIMCO Multifamily Pool Property, less AIMCO Multifamily Pool
Expenses. AIMCO Multifamily Pool NOI includes only rents, and such other
income, including any rent loss or business interruption insurance proceeds,
vending income, pet charges, late fees, forfeited security deposits and other
miscellaneous tenant charges, which are actually received during the period for
which the AIMCO Multifamily Pool NOI is being calculated. AIMCO Multifamily
Pool NOI is calculated on a cash basis in accordance with customary accounting
principles applicable to real estate. Notwithstanding the above, in no event
will the AIMCO Multifamily Pool NOI include any rents from the AIMCO
Multifamily Pool Property in excess of an amount which would be produced from
the AIMCO Multifamily Pool Property assuming a 95% economic occupancy level on
the AIMCO Multifamily Pool Property at the time of such calculation.
"AIMCO Multifamily Pool Expenses" means the aggregate of the following
items, to the extent approved by the mortgagee in a budget submitted by the
AIMCO Multifamily Pool Borrower: (A) real estate taxes, general and special
assessments or similar charges; (B) sales, use and personal property taxes; (C)
management fees and disbursements; (D) wages, salaries, pension costs and all
fringe and other employee-related benefits and expenses; (E) insurance
premiums; (F) cost of utilities, and all other administrative, management,
ownership, operating, leasing and maintenance expenses incurred in connection
with the operation of the AIMCO Multifamily Pool Property; (G) cost of
necessary repair or replacement of existing improvements on the AIMCO
Multifamily Pool Property with repairs or replacements of like kind and
quantity or such kind or quality which is necessary to maintain the AIMCO
Multifamily Pool Property to the same standards as competitive rental
properties of similar size and location of the AIMCO Multifamily Pool Property;
and (H) the cost of such other maintenance materials, HVAC repairs, parts and
supplies, other decorating supplies, floor covering repairs, other decorating
contracts, drapes and equipment. The AIMCO Multifamily Pool Expenses are based
on the above-described items actually incurred by AIMCO Multifamily Pool
Borrower during the period for which the calculation is being made.
EPT POOL: THE BORROWER; THE PROPERTIES
THE LOAN. The "EPT Pool Loan" had a principal balance as of the Cut-Off
Date of approximately $104,748,392 and is evidenced by a note issued by EPT
DownREIT II, Inc. (the "EPT Pool Borrower"). The EPT Pool Loan was originated
by Archon, on behalf of the Seller, on June 29, 1998. The EPT Pool Loan is a
non-recourse loan, secured by six fee simple first priority mortgages
encumbering AMC Grand 24 (Dallas, Texas); AMC Studio 30 (Houston, Texas); AMC
Huebner Oaks 24 (San Antonio, Texas); AMC Promenade 16 (Woodland Hills,
California); AMC Ontario Mills 30 (Ontario, California); and AMC West Olive 16
(Creve Coeur, Missouri), and two leasehold first mortgages encumbering AMC
Mission Valley 20 (San Diego, California) and AMC Lennox 24 (Columbus, Ohio)
(collectively, the "EPT Pool Properties") and certain other related collateral
relating thereto (including assignments of leases and rents, assignment of EPT
Pool management agreements, and funds in certain accounts). The EPT Pool
Properties are cross-collateralized and cross-defaulted. Each title insurance
policy issued upon the origination of the EPT Pool Loan insures that the
mortgages and deeds of trust securing the EPT Pool Loan constitute valid and
enforceable first liens on the EPT Pool Properties, subject to certain
exceptions and exclusions from coverage set forth in the policies.
THE BORROWER. The EPT Pool Borrower is a Missouri corporation, and
wholly-owned, special-purpose subsidiary of Entertainment Properties Trust
("EPT") formed solely for the purpose of owning, operating and managing the EPT
Pool Properties. The EPT Pool Borrower has no material assets other than the
EPT Pool Properties and related interests. The EPT Pool Properties are
net-leased and operated by American Multi-Cinema, Inc., an affiliate of AMC
Entertainment, Inc. ("AEN").
THE PROPERTIES. The EPT Pool Properties are comprised of the EPT Pool
Borrower's fee simple and leasehold interest in eight megaplex theater
complexes. The EPT Pool Properties have three locations in California, three
locations in Texas and one location in each of Missouri and Ohio, and
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contain a total of approximately 184 movie screens. The EPT Pool Property
amenities include stadium AMC LoveSeat (Trade Mark) style seating, 46-inch
spacing between rows, Sony Dynamic Digital Sound ("SDDS (Trade Mark) "),
advance ticket purchase by TeleTicket (Trade Mark) and TORUS (Trade Mark)
Compound Curved Screens. The EPT Pool Properties have primary lease terms of
between 13 and 14 years with four successive five-year renewal options, are
subject to leases that have initial triple net rent totals ranging from
$1,354,500 to $2,995,000 and are subject to annual increases equal to the
lesser of (i) 2.0% or (ii) the change in the consumer price index. The rents
also include an obligation to pay percentage rent equivalent to 6.0% of gross
sales in excess of specified breakpoints.
AMC Promenade 16. AMC Promenade 16 is located within the Promenade at
Woodland Hills, a two-level enclosed regional mall containing approximately 80
shops and approximately 605,000 gross leaseable square feet anchored by the
subject theaters, a Macy's department store and a Macy's Men's store. The
Promenade at Woodland Hills is located in the Warner Center mixed-use,
master-planned development in Woodland Hills (an unincorporated area of the
city of Los Angeles), California. The complex includes an approximately 20,000
square foot food-court and an approximately 40,000 square feet of available
retail space. The site improvements include approximately 462 dedicated parking
spaces, while reciprocal easement agreements allow for use of additional spaces
on the mall site. The AMC Promenade 16 facility lease has a primary term of 13
years, with four successive five-year renewal options.
AMC Ontario Mills 30. AMC Ontario Mills 30 is located within the Ontario
Mills, an approximately 1.6 million SF enclosed outlet mall anchored by the
subject theaters, Neiman Marcus, Clearinghouse by Saks Fifth Avenue, Virgin
Megastore, Marshall's, Sports Authority and T.J. Maxx, among others, located in
the Los Angeles inland suburb of Ontario, California. The site improvements
include approximately 1,535 dedicated parking spaces, while reciprocal easement
agreements allow for use of additional spaces on the mall site. The AMC Ontario
Mills 30 facility lease has a primary term of 13 years, with four successive
five-year renewal options.
AMC Studio 30. AMC Studio 30 is a free-standing megaplex theater complex
located adjacent to a Wal-Mart and a Sam's Club located in the Galleria
submarket of Houston, Texas. The site improvements include approximately 2,043
dedicated parking spaces. The AMC Studio 30 facility lease has a primary term
of approximately 14 years, with four successive five-year renewal options.
AMC Grand 24. AMC Grand 24 is a free-standing megaplex theater complex
located in the Dallas Technology Center, a master-planned development in
western Dallas, Texas. The site improvements include approximately 2,050
dedicated parking spaces. The AMC Grand 24 facility lease has a primary term of
13 years, with four successive five-year renewal options.
AMC West Olive 16. AMC West Olive 16 is a free-standing megaplex theater
complex located within the West Park Center mixed-use complex in Creve Coeur,
St. Louis County, Missouri. The site improvements include 423 dedicated parking
spaces, while reciprocal easement agreements allow for use of an additional
approximately 1,404 spaces. The AMC West Olive 16 facility lease has a primary
term of 14 years, with four successive five-year renewal options.
AMC Huebner Oaks 24. AMC Huebner Oaks 24 is a free-standing megaplex
theater complex located adjacent to a new retail development anchored by Old
Navy, Bed, Bath and Beyond and Borders Books in northeastern San Antonio,
Texas. The AMC Huebner Oaks 24 facility lease has a primary term of 14 years,
with four successive five-year renewal options.
AMC Mission Valley 20. AMC Mission Valley 20 is located within the Mission
Valley Shopping Center, a single-level outdoor mall containing approximately
1.3 million gross leaseable square feet anchored by the subject theaters,
Macy's Home Store, Bed, Bath and Beyond, Montgomery Ward and Robinson's-May.
The Mission Valley Shopping Center is located in the Mission Valley planning
area of San Diego, California. The site improvements include at least
approximately 1,500 dedicated parking spaces, while reciprocal easement
agreements allow for use of additional spaces on the mall site. AMC Mission
Valley 20 facility lease has a primary term of 13 years, with four successive
five-year renewal options.
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AMC Lennox 24. AMC Lennox 24 is located within the Lennox Town Center, an
approximately 350,000 SF outdoor retail center anchored by the subject
theaters, Old Navy, Target and Staples, among others in Columbus, Ohio. The
site improvements include at least approximately 833 dedicated parking spaces,
while reciprocal easement agreements allow for use of additional spaces on the
mall site. AMC Lennox 24 facility lease has a primary term of approximately 14
years, with four successive five-year renewal options.
The AMC Mission Valley 20 ground lease commenced in March 1994 and has a
30-year initial term expiring in January 2026, with two ten-year extension
options. Minimum rent is currently $10 per square foot based upon floor area
($764,850 per annum) through year 11 of the lease, increasing by an amount
equal to $2 per square foot in year 12 and each five-year period thereafter to
$18 per square foot in year 27 of the ground lease. The ground lease also
includes an obligation to pay percentage rent equivalent to 10% of gross sales
in excess of specified breakpoints. Due to the opening of an AMC theater in the
nearby Fashion Valley Shopping Center (the "Fashion Valley Theater") in
violation of the one-mile radius restriction contained in the AMC Mission
Valley 20 ground lease, the ground lease provides that (a) during the first ten
years of the term of the AMC Mission Valley 20 ground lease, the sales
generated by the Fashion Valley Theater are included as a part of the AMC
Mission Valley 20 gross sales for purposes of determining whether the
percentage rent breakpoints have been reached under the AMC Mission Valley 20
ground lease and (b) during the first six years of the term of the AMC Mission
Valley 20 ground lease, the amount of percentage rent payable under the AMC
Mission Valley 20 ground lease is equivalent to 10% of gross sales generated by
both the AMC Mission Valley 20 and the Fashion Valley Theater in excess of a
specified breakpoint.
The AMC Lennox 24 ground lease commenced in May 1996 and has a 25.5-year
initial term expiring in December 2021, with 10 five-year extension options.
Minimum rent is currently $537,579 per annum through year 5 of the ground
lease, increasing by approximately 10% in years 6, 11, 16 and 21 of the ground
lease. The ground lease also includes an obligation to pay percentage rent
equivalent to 2.0% of gross sales in excess of a specified breakpoint.
Appraisals, dated as of May 29, June 1 and June 3, 1998 determined an
aggregate value for the EPT Pool Properties of approximately $169,900,000,
resulting in a Cut-Off Date LTV Ratio of approximately 61.7%. Each EPT Pool
Property appraisal was prepared in accordance with the Uniform Standards of
Professional Appraisal Practice. See "Risk Factors--Limitations of Appraisals"
herein. Property condition reports ("Property Condition Reports") on the EPT
Pool Properties were completed in June 1998. The Property Condition Reports
concluded that the EPT Pool Properties were generally in good physical
condition and identified only minor immediate physical needs, totaling $75,850
in anticipated costs. Phase I environmental site assessments were completed in
June 1998 by a third-party environmental firm for each EPT Pool Property. The
reports did not reveal any environmental liability that the Seller believes
would have a material adverse impact on the EPT Pool Borrower's business,
assets or results of operations taken as a whole. Nevertheless, there can be no
assurance that all environmental conditions and risks were identified in such
reports. See "Risk Factors--Environmental Risks" herein.
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EPT POOL PROPERTIES SUMMARY
PROPERTY DESCRIPTION
<TABLE>
<CAPTION>
NUMBER NUMBER
YEAR OF OF
PROPERTY LOCATION BUILT SCREENS SEATS
- ------------------------- -------------------- ------- --------- --------
<S> <C> <C> <C> <C>
AMC Promenade 16 ........ Woodland Hills, CA 1996 16 2,860
AMC Ontario Mills 30 .... Ontario, CA 1996 30 5,496
AMC Studio 30 ........... Houston, TX 1997 30 6,032
AMC Grand 24 ............ Dallas, TX 1995 24 5,067
AMC West Olive 16 ....... Creve Coeur, MO 1997 16 2,817
AMC Huebner Oaks 24 San Antonio, TX 1997 24 4,400
AMC Mission Valley 20 San Diego, CA 1995 20 4,361
AMC Lennox 24 ........... Columbus, OH 1996 24 4,412
-- -----
Total/Weighted
Average ............... 184 35,445
=== ======
<CAPTION>
CUT-OFF DATE APPRAISED
ALLOCATED LOAN VALUE CUT-OFF UNDERWRITTEN
PROPERTY AMOUNT (AS OF 5/98-6/98) DATE LTV NET CASH FLOW DSCR
- ------------------------- ---------------- ------------------- ---------- --------------- ----------
<S> <C> <C> <C> <C> <C>
AMC Promenade 16 ........ $ 19,146,227 $ 31,000,000 61.8% $ 2,979,518 1.97x
AMC Ontario Mills 30 .... 16,984,557 27,500,000 61.8% 2,643,347 1.97x
AMC Studio 30 ........... 16,058,126 26,000,000 61.8% 2,758,385 2.18x
AMC Grand 24 ............ 12,414,167 20,100,000 61.8% 1,943,183 1.98x
AMC West Olive 16 ....... 11,487,736 18,600,000 61.8% 1,862,958 2.05x
AMC Huebner Oaks 24 10,746,592 17,400,000 61.8% 1,764,900 2.08x
AMC Mission Valley 20 9,881,923 16,300,000 60.6% 1,703,065 2.18x
AMC Lennox 24 ........... 8,029,063 13,000,000 61.8% 1,344,674 2.12x
------------ ------------ -----------
Total/Weighted
Average ............... $104,748,392 $169,900,000 61.7% $17,000,030 2.06x
============ ============ ===========
</TABLE>
OPERATING HISTORY. The sole source of income to the EPT Pool Borrower from
the EPT Pool Properties historically has been and is expected to continue to be
the payments under the EPT Pool Master Lease. See "--Property Management;
Master Lease."
PROPERTY MANAGEMENT; MASTER LEASE. Each EPT Pool Property is subject to a
triple-net lease (each such lease, an "EPT Master Lease") to American
Multi-Cinema, Inc. the fifth largest operator of movie theaters domestically
(the "EPT Master Lease Tenant"), an affiliate of AEN, and do not require that
the EPT Pool Borrower maintain property management. However, in the event a
property manager is engaged, the EPT Pool Borrower agrees to enter into a
property management agreement which is cancelable by the EPT Pool Borrower
without penalty upon 30 days' notice (i) if net operating income drops to 85%
of net operating income at closing, (ii) upon an event of default or (iii) on
the Anticipated Repayment Date. The mortgagee is authorized to terminate such
property manager in the event the EPT Pool Borrower fails to terminate any
property manager, as required under the EPT Pool Loan documents. Any fees
payable under any such property management agreement shall be subordinated to
the EPT Pool Loan.
The EPT Master Leases are guaranteed by AEN pursuant to guaranties that
expire on the expiration of the initial term of the applicable EPT Master Lease
or the assignment of the applicable EPT Master Lease after the fifth
anniversary of the applicable EPT Master Lease commencement date to an assignee
(which operates first run movie theaters) having a net worth of no less than
$100,000,000. The EPT Master Leases provide for base rent with set annual
escalation, percentage rent on revenues in excess of certain baseline amounts,
and remaining lease terms ranging from 13 to 14 years. All fixed and variable
costs associated with the EPT Pool Properties are the responsibility of the
applicable EPT Master Lease Tenant; however, the EPT Master Leases are not
bondable. The EPT Master Leases are cross-defaulted with each other. In
addition, each such lease is cross-defaulted with leases with respect to the
following theater properties that are not a part of the collateral for the EPT
Pool Loan: Gulf Pointe 30 (Houston, Texas), Mesquite 30 (Dallas, Texas),
Cantera 30 (Chicago, Illinois), Hampton Town Center 24 (Norfolk, Virginia) and
Livonia 20 (Detroit, Michigan). However, the EPT Master Leases cannot be
modified or terminated in connection with these cross-default provisions
without the consent of the mortgagee. Also, such provisions are only in effect
under each EPT Master Lease until the earlier to occur of (i) the date the
senior long-term debt obligations of AEN or the corporate credit rating of AEN
is rated investment grade by either S&P or Moody's, (ii) the rent under the EPT
Master Leases represent less than 50% of the EPT Pool Borrower's rental income
for any fiscal quarter or (iii) the expiration of the fixed term of the
applicable EPT Master Lease.
The EPT Master Lease Tenant may abate rent in connection with a casualty
from the date of the casualty until the earlier of (i) 90 days after completion
of the restoration or (ii) the date on which the EPT
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Master Lease Tenant reopens the damaged property for business. The EPT Master
Lease Tenant may abate rent in connection with a condemnation during the period
of restoration and in proportion to the value of the condemned portion of the
affected property. The EPT Master Lease Tenant may terminate the EPT Master
Lease in connection with a casualty if (i) the casualty renders the property
unsuitable for use as a movie theater, (ii) the cost of restoration would
exceed 50% of the replacement cost of the improvements at the time of the
casualty and (iii) the mortgagee does not elect to restore the property;
provided, however, that, if the casualty occurs during the last three years of
the initial term of the applicable EPT Master Lease or during the last two
years of any option period under the applicable EPT Master Lease and the cost
of restoration would exceed 25% of the replacement cost of the property as of
the time of the casualty, then the EPT Master Lessee may terminate the EPT
Master Lease. The EPT Master Tenant may terminate the EPT Master Lease in
connection with a condemnation if (i) a material portion of the building is
condemned or (ii) if the mortgage is unable to provide substitute contiguous
parking and if a sufficient number of parking spaces is condemned such that (A)
the number of parking spaces to such property is reduced by 20% or more and
there is an insufficient number of parking spaces to satisfy applicable zoning
ordinances or (B) in the reasonable judgment of the EPT Master Lease Tenant,
its business operations are materially and adversely affected as a result of
such condemnation.
The EPT Pool Loan documents provide that the insurance requirements will
be deemed to have been satisfied with respect to any EPT Pool Property,
provided that (a) the insurance requirements set forth in the applicable EPT
Master Lease have been satisfied, (b) such EPT Master Lease is in full force
and effect, (c) the mortgagee is named as a loss payee and additional insured
under such insurance policies, and (d) the EPT Pool Borrower has delivered
ACCORD 27 certificates of insurance confirming that the required insurance
policies are in full force and effect, all related premiums have been paid in
full and the mortgagee has been named as a loss payee. The terms of the EPT
Master Leases also govern the application of casualty and condemnation proceeds
so long as such EPT Master Leases are in effect. See "--Casualty and
Condemnation" herein. All insurance policies will name the EPT Pool Borrower
and any mortgagee as an additional insured party. Under the EPT Master Leases,
all environmental risk is retained by the EPT Master Lease Tenant. The EPT
Master Lease Tenant indemnifies and holds harmless the EPT Pool Borrower as
landlord under the EPT Master Leases with respect to the violation of
environmental laws pursuant to the EPT Master Leases and the EPT Pool Borrower
indemnifies and holds harmless the mortgagee with respect to the violation of
environmental laws pursuant to the EPT Pool Loan documents. The following table
shows scheduled lease expirations for each of the EPT Pool Properties:
EPT POOL LEASE SUMMARY
<TABLE>
<CAPTION>
NET CURRENT
RENTABLE CONTRACTUAL
SQUARE LEASE LEASE
PROPERTY FOOTAGE EXPIRATION(1) PAYMENTS
- ------------------------------- ---------- --------------- -------------
<S> <C> <C> <C>
AMC Promenade 16 .............. 129,822 12/10 $ 2,995,000
AMC Ontario Mills 30 .......... 131,534 12/10 2,656,500
AMC Studio 30 ................. 136,154 12/11 2,772,000
AMC Grand 24 .................. 98,175 12/10 1,953,000
AMC West Olive 16 ............. 60,418 12/11 1,869,000
AMC Huebner Oaks 24 ........... 96,004 12/11 1,774,500
AMC Mission Valley 20 ......... 84,352 12/10 1,711,500
AMC Lennox 24 ................. 98,261 12/11 1,354,500
------- -----------
Total/Weighted
Average .................... 834,720 $17,086,000
======= ===========
<CAPTION>
% OF CURRENT NUMBER /
TOTAL CURRENT GROSS SALES TERM OF
LEASE % RENT GROSS SALES BREAKPOINT EXTENSION
PROPERTY PAYMENTS PAYMENT BREAKPOINT ($/RSF) OPTIONS
- ------------------------------- ---------- --------- --------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
AMC Promenade 16 .............. 17.5% 6.0% $ 49,916,667 $385 4 / 5 Yrs
AMC Ontario Mills 30 .......... 15.6 6.0% 44,275,000 $337 4 / 5 Yrs
AMC Studio 30 ................. 16.2 6.0% 46,200,000 $339 4 / 5 Yrs
AMC Grand 24 .................. 11.4 6.0% 32,550,000 $332 4 / 5 Yrs
AMC West Olive 16 ............. 10.9 6.0% 31,150,000 $516 4 / 5 Yrs
AMC Huebner Oaks 24 ........... 10.4 6.0% 29,575,000 $308 4 / 5 Yrs
AMC Mission Valley 20 ......... 10.0 6.0% 28,525,000 $338 4 / 5 Yrs
AMC Lennox 24 ................. 7.9 6.0% 22,575,000 $230 4 / 5 Yrs
---- ------------
Total/Weighted
Average .................... 100.0% 6.0% $284,766,667 $341
===== ============
</TABLE>
- ----------
(1) All leases commenced in November 1997.
<PAGE>
A number of the EPT Pool Properties are located within shopping centers
and are subject to a reciprocal easement agreement, declaration of covenants
and restrictions, operating agreement or other similar agreements that
typically addresses access among the individual parcels comprising the shopping
center and maintenance of common areas.
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<PAGE>
EPT POOL: THE LOAN
PAYMENT TERMS. The EPT Pool Loan is an ARD Loan which bears interest at a
fixed annual rate equal to 6.772% (the "EPT Pool Initial Interest Rate")
through and including July 10, 2008. From and after July 11, 2008, its
Anticipated Repayment Date, the EPT Pool Loan accrues interest at a revised
interest rate equal to the greater of (x) the EPT Pool Initial Interest Rate,
plus 2% or (y) 2% above the Treasury Rate as of the Anticipated Repayment Date.
The EPT Pool Loan matures on July 11, 2028 (the "EPT Pool Maturity Date").
Pursuant to the terms of the Pooling Agreement, the Special Servicer will not
be permitted to enforce any increase in the EPT Pool Initial Interest Rate
above 8.772% per annum. Interest on the EPT Pool Loan is calculated for any
period based on the actual number of days elapsed and a 360 day year. See
"--Certain Characteristics of the Mortgage Loans--ARD Loans" herein.
The EPT Pool Loan requires monthly payments of principal and interest of
$689,147.83 based on a 30-year amortization schedule (the "EPT Monthly
Payment"). The outstanding principal balance of the EPT Pool Loan, together
with all accrued and unpaid interest, is due on the EPT Pool Maturity Date.
Commencing on the first payment date after its Anticipated Repayment Date, in
addition to the EPT Monthly Payment, the EPT Pool Borrower is required to apply
100% of the Excess Cash Flow for the month preceding the month in which the
payment date occurs in the following order of priority (a) to the outstanding
principal balance until the EPT Pool Loan has been paid in full and (b) to
Excess Interest. See "--Certain Characteristics of the Mortgage Loans--ARD
Loans" herein. The scheduled principal balance of the EPT Pool Loan as of the
Anticipated Repayment Date will be approximately $89,909,303.
PREPAYMENT. Except as described below, voluntary prepayment is prohibited
under the EPT Pool Loan prior to July 11, 2008, except in connection with
certain casualty or condemnation events, permitted partial prepayment to cure
an event of default or in connection with defeasance. After the Anticipated
Repayment Date, prepayment is permitted in whole or in part without payment of
any yield maintenance charge or prepayment, premium or defeasance; however,
prepayments made upon acceleration of the EPT Pool Loan following the
occurrence of an event of default are subject to a yield maintenance payment,
calculated in accordance with the terms of the EPT Pool Loan documents, to be
made by the EPT Pool Borrower. Prepayments made in connection with a casualty
or condemnation are not subject to any yield maintenance charge or prepayment
premium.
RELEASE IN EXCHANGE FOR SUBSTITUTE COLLATERAL--DEFEASANCE. The EPT Pool
Borrower is permitted on any date on or after two years from the Closing Date
to defease the entire the EPT Pool Loan with U.S. Treasury obligations,
provided that, certain conditions are met, including (a) the EPT Pool Borrower
gives the mortgagee no less than 30 days' prior written notice of its intention
to defease the EPT Pool Loan and the date on which such defeasance is to occur;
(b) payment by the EPT Pool Borrower of all accrued and unpaid interest; (c)
payment by the EPT Pool Borrower of all other sums due under the EPT Pool Loan;
(d) no event of default may exist under the EPT Pool Loan; (e) payment by the
EPT Pool Borrower of the EPT Pool Defeasance Deposit; (f) payment by the EPT
Pool Borrower of all reasonable costs and expenses incurred by the mortgagee in
connection with the defeasance; (g) the EPT Pool Borrower must deliver to the
mortgagee an opinion of counsel for the EPT Pool Borrower in form and substance
satisfactory to the mortgagee and the applicable rating agencies; (h) if
required by the applicable rating agencies, the EPT Pool Borrower shall also
deliver a non-consolidation opinion with respect to any successor borrower, in
form and substance satisfactory to the mortgagee and the applicable rating
agencies; (i) the EPT Pool Borrower will be required to deliver to the
mortgagee a confirmation from a major accounting firm, in form and substance
reasonably satisfactory to the mortgagee, that the EPT Pool Defeasance Deposit
is sufficient to pay all scheduled payments (including the outstanding
principal amount as of the Anticipated Repayment Date) due from the EPT Pool
Borrower under the EPT Pool Loan in connection with the proposed defeasance;
and (j) the EPT Pool Borrower will be required to deliver to the mortgagee a
written confirmation from the applicable rating agencies that all applicable
rating agency conditions have been met. Partial defeasance is not permitted.
Upon receipt of the EPT Defeasance Deposit, the mortgagee, using the EPT
Defeasance Deposit, is required to purchase U.S. Treasury obligations on behalf
of the EPT Pool Borrower and such U.S. Treasury obligations will serve as the
sole collateral for the payments of the amounts due under the EPT Pool Loan.
Upon a deposit of such U.S. Treasury obligations, the EPT Pool Borrower will
have the right to assign the obligation to make payments under the EPT Pool
Loan to a single-purpose bankruptcy remote entity designated by the mortgagee.
In connection with the defeasance of the EPT Pool Loan, the EPT Pool Borrower
will be permitted to obtain the release of the mortgage or deed of trust liens
encumbering the EPT Pool Properties.
S-71
<PAGE>
"EPT Defeasance Deposit" means an amount equal to the sum of (i) any costs
and expenses incurred or to be incurred in the purchase of U.S. Treasury
obligations including, without limitation, the purchase price thereof necessary
to meet the scheduled defeasance payments and (ii) any revenue, documentary
stamp or intangible taxes or any other tax or charge due in connection with any
transfer of the EPT Pool Loan, or otherwise required to accomplish the
defeasance.
OTHER FINANCING. The EPT Pool Borrower is not permitted to incur or assume
additional indebtedness other than unsecured trade payables incurred in the
ordinary course of the EPT Pool Borrower's business and customarily paid within
60 days of incurrence which are in fact not more than 60 days outstanding.
ALTERATIONS. Except to the extent that the EPT Master Lease Tenant may be
permitted to do so under the EPT Master Leases or upon compliance with certain
conditions set forth in the EPT Pool Loan documents, the EPT Pool Borrower is
prohibited from making or permitting any demolition, alteration, installation,
improvement or decoration to the EPT Pool Properties or any part thereof.
RESERVES. Pursuant to the terms of the EPT Pool Loan, the EPT Pool
Borrower has established the following reserve accounts, each to be funded on
each monthly payment date: (a) a capital reserve account (the "EPT Capital
Reserve Account") in an amount equal to 1/12th of $0.10 per usable square foot
of space at the EPT Pool Properties, based on 834,720 usable square feet, for
the payment of routine capital improvements (excluding tenant improvements,
leasing commissions and deferred maintenance conditions) at the EPT Pool
Properties and (b) upon the commencement and during the continuance of an EPT
Tax, Insurance and Ground Lease Escrow Period, the EPT Pool Borrower must
establish and maintain with the mortgagee, a separate tax, insurance and ground
lease escrow account (the "EPT Tax, Insurance and Ground Lease Escrow
Account"), into which the EPT Pool Borrower must deposit 1/12th of taxes, other
charges, insurance premiums and ground lease payments payable during the
ensuing 12 months. Prior to the assignment by the EPT Master Lease Tenant of
its interests in more than two EPT Master Leases, the EPT Pool Borrower must
establish an account for the deposit of payments by the EPT Pool Borrower of an
amount equal to the product of $5.00 (as escalated by increases in the Consumer
Price Index) and the usable square footage of each property subject to an
assigned EPT Master Lease to be used for leasing commissions and tenant
improvement costs incurred in connection with any new lease of any portion of a
property subject to an assigned EPT Master Lease.
An "EPT Tax, Insurance and Ground Lease Escrow Period" occurs (i) any time
following the occurrence of the Anticipated Repayment Date; (ii) any time
following the occurrence of a default; (iii) any time following the occurrence
of a default by any EPT Master Lease Tenant; (iv) any time following an
assignment by any EPT Master Lease Tenant of any of the EPT Master Leases to a
person with an unsecured credit rating lower than "B2" by Moody's Investors
Services ("Moody's") (or its equivalent by another Rating Agency) unless the
obligations of such assignee under such EPT Master Lease are guaranteed,
pursuant to a lease guaranty satisfactory in form and substance to the
mortgagee, by a guarantor having an unsecured credit rating of no lower than
"B2" by Moody's (or its equivalent by another Rating Agency); (v) during any
period in which the current unsecured credit rating of AEN or any assignee of
any EPT Master Lease Tenant under any EPT Master Lease (or, if applicable, any
guarantor of such assignee's obligations under such EPT Master Lease) is below
"B2" by Moody's (or its equivalent by another Rating Agency); or (vi) upon the
occurrence of an EPT Low Debt Service Trigger Period.
LOW DEBT SERVICE RESERVE. The EPT Pool Borrower has established a low debt
service account (the "EPT Low Debt Service Account") to be funded monthly
during an EPT Low Debt Service Reserve Trigger Period in an amount equal to all
remaining funds in the EPT Deposit Account after (a) payments into the EPT Tax,
Insurance and Ground Lease Escrow Account; (b) payment of debt service; (c)
payment of operating expenses; and (d) payments into the EPT Capital Reserve
Account. After the occurrence of a Low Debt Service Application Event, the
funds on deposit in the EPT Low Debt Service Account will be applied to the EPT
Pool Loan in the order and priority determined by the mortgagee. The EPT Pool
Borrower may obtain a disbursement of the funds on deposit in the EPT Low Debt
Service Account by written request after the occurrence of a Low Debt Service
Return Event.
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<PAGE>
"EPT Low Debt Service Application Event" means, at any time prior to the
Anticipated Repayment Date, that net operating income of the EPT Pool
Properties for the 12-month period prior to the applicable calculation date is
less than 75% of the closing date Underwritten NOI.
"EPT Low Debt Service Reserve Trigger Event" means, any time prior to the
Anticipated Repayment Date, that the net operating income of the EPT Pool
Properties for the 12-month period prior to the applicable calculation date is
less than 85% of the closing date Underwritten NOI.
"EPT Low Debt Service Return Event" means, any time after an EPT Low Debt
Service Trigger Event and prior to the Anticipated Repayment Date, as
calculated as of the last day of two consecutive calendar quarters, that (i) no
event of default has occurred and is continuing and (ii) the net operating
income of the EPT Pool Properties for the 12-month period prior to the
applicable calculation date is equal to or greater than 85% of the closing date
Underwritten NOI as calculated by the mortgagee.
"EPT Low Debt Service Trigger Period" means, the period of time after an
EPT Low Debt Reserve Trigger Event until the occurrence of an EPT Low Debt
Service Return Event.
CASH MANAGEMENT; LOCKBOX. The EPT Pool Borrower has established and is
required to maintain a hard lock-box account in the name and under the sole
dominion and control of the mortgagee (the "EPT Deposit Account"), and all
income received or accrued in connection with the operation of the EPT Pool
Properties by the EPT Pool Borrower.
TRANSFER OF PROPERTY AND INTEREST IN THE EPT POOL BORROWER;
ENCUMBRANCES. Transfers of interest in the EPT Pool Properties are permitted,
provided that (a) the transferee complies with all single-purpose entity
requirements, the transferee is controlled by EPT and no event of default has
occurred and is continuing or (b) the mortgagee consents to the transfer and a
rating confirmation is obtained from the applicable rating agencies.
Transfers of equity interest in the EPT Pool Borrower are permitted,
subject to compliance with single-purpose entity requirements, continued EPT
control over the EPT Pool Borrower and delivery of a non-consolidation opinion
in connection with any transfer that results in any person or entity owning
more than a 49% ownership interest in EPT that did not own more than a 49%
ownership interest on the closing date.
CASUALTY AND CONDEMNATION. If no EPT Master Lease is in effect with
respect to the affected EPT Pool Property and a casualty or a condemnation
occurs at an EPT Pool Property that involves a loss of less than 5% of the
outstanding principal balance of the EPT Pool Loan, the mortgagee must permit
the application of the related insurance proceeds or condemnation award (after
reimbursement of any expenses incurred by the mortgagee) toward reimbursement
of the EPT Pool Borrower for the cost of restoring, repairing, replacing or
rebuilding the affected EPT Pool Property, provided that, no default or event
of default has occurred and is then continuing and, in the reasonable judgment
of the mortgagee: (i) the affected EPT Pool Property can be restored to its
value prior to the casualty or condemnation; (ii) the EPT Pool Properties,
after such restoration, will adequately secure the outstanding balance of the
EPT Pool Loan; (iii) the restoration can be completed by the earliest to occur
of: the 180th day following the receipt of the proceeds or award, the 180th day
prior to the maturity date of the EPT Pool Loan, or with respect to a casualty,
the expiration of the payment period on the rent loss insurance coverage in
respect of such casualty; and (iv) during the period of the restoration, the
sum of (x) income derived from the EPT Pool Property, plus (y) proceeds of rent
loss insurance or business interruption insurance, if any, will equal or exceed
105% of the sum of (1) operating expenses with respect to the affected EPT Pool
Property and (2) the debt service in respect to the allocated loan amount for
such affected EPT Pool Property. If any of the foregoing conditions is not
satisfied, then the mortgagee may, in its sole discretion, apply proceeds to
prepayment of the EPT Pool Loan and the EPT Pool Properties will be released
from the EPT Pool Loan documents if the EPT Pool Loan is repaid in full.
If no EPT Master Lease is in effect with respect to the affected EPT Pool
Property and a casualty or condemnation occurs at an EPT Pool Property that
involves a loss which is equal to or greater than 5% of the outstanding
principal balance of the EPT Pool Loan, the mortgagee may apply the insurance
proceeds or condemnation award to prepayment of the EPT Pool Loan or the
mortgagee may apply such
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<PAGE>
proceeds or award toward reimbursement of the EPT Pool Borrower's restoration
costs; provided that the mortgagee must make such proceeds available for
restoration if (x) an operating agreement provides that such proceeds must be
applied to restoring the applicable EPT Pool Property, (y) in the reasonable
judgment of the mortgagee, the EPT Pool Property can be restored within 12
months (and prior to the Anticipated Repayment Date) to an economic unit not
less valuable and not less useful than the same was prior to the casualty or
condemnation which, after such restoration, will adequately secure the
outstanding balance of the EPT Pool Loan and (z) no event of default has
occurred and is continuing.
If the EPT Master Lease is in effect with respect to the affected EPT Pool
Property, then, with respect to the application of proceeds, in the event (i)
neither the EPT Pool Borrower nor the EPT Master Lease Tenant elects to
terminate the related EPT Master Lease and (ii) the EPT Master Lease Tenant
elects to restore the applicable EPT Pool Property in accordance with the
applicable EPT Master Lease, then (A) all such proceeds shall be deposited with
a disbursing agent and shall be disbursed by such disbursing agent pursuant to
an escrow agreement to be agreed upon among the EPT Pool Borrower, the EPT
Master Lease Tenant and the disbursing agent; (B) the EPT Pool Borrower shall
immediately pay to the mortgagee any related proceeds released to the EPT Pool
Borrower by the disbursing agent pursuant to the escrow agreement described in
clause (A) above, which proceeds shall be applied in accordance with the EPT
loan agreement; and (C) the terms and provisions of the EPT Pool loan agreement
shall be deemed to be satisfied so long as the EPT Master Lease Tenant
diligently pursues and completes the restoration of the affected EPT Pool
Property in accordance with the terms and provisions of the applicable EPT
Master Lease. If the EPT Pool Borrower shall elect to restore any EPT Pool
Property affected by a casualty or condemnation pursuant to the terms and
provisions of the related EPT Master Lease, the EPT Pool Borrower's rights and
obligations with respect to the related restoration and proceeds shall be as
set forth in the EPT loan agreement.
SKYLINE CITY POOL: THE BORROWERS; THE PROPERTIES
THE LOAN. The "Skyline City Pool Loan" had a principal balance as of the
Cut-Off Date of approximately $87,423,946 and is evidenced by a note with a
Cut-Off Date principal balance of $68,982,179 issued by Fifteenth Skyline
Associates Limited Partnership ("Fifteenth Skyline") and a note with a Cut-Off
Date principal balance of $18,441,767 issued by Ninth Skyline Associates
Limited Partnership ("Ninth Skyline" and together with Fifteenth Skyline, the
"Skyline City Pool Borrowers"). The Skyline City Pool Loan was originated by
Archon, on behalf of GSMC, on May 14, 1998. The Skyline Pool Loan is a
non-recourse loan, secured by first priority deed of trust liens encumbering
the borrower's fee interest in two commercial office buildings located in Falls
Church, Fairfax County, Virginia, known as One Skyline Tower ("One Skyline
Tower") and Three Skyline Place ("Three Skyline Place," collectively the
"Skyline City Pool Properties") and certain other related collateral (including
assignments of leases and rents, assignment of management agreements,
assignment of agreements, licenses, permits and contracts, and funds in certain
accounts). The Skyline City Pool Properties are cross-defaulted and
cross-collateralized with each other. Each title insurance policy issued upon
the origination of the Skyline City Pool Loan insures that each deed of trust
securing the Skyline City Pool Loan constitutes a valid and enforceable first
lien on the Skyline City Pool Properties, subject to certain exceptions and
exclusions from coverage set forth in the policies.
THE BORROWER. The Skyline City Pool Borrowers are each special purpose
Virginia limited partnerships whose general partners are limited liability
companies formed solely for the purpose of owning, operating and managing the
Skyline City Pool Properties. The Skyline City Pool Borrowers have no material
assets other than the Skyline City Pool Properties and related interests. The
Skyline City Pool Properties are managed by Charles E. Smith Real Estate
Services L.P., an affiliate of Charles E. Smith Commercial Realty L.P. (the
"Skyline City Pool Manager"). Pursuant to a private placement document dated
September 4, 1998 Charles E. Smith Commercial Realty L.P. ("CESCR LP") intends
to acquire a controlling interest in the Skyline City Pool Properties through
the use of operating partnership units. The transaction is expected to close
October 31, 1998. For the purpose of the Skyline City Pool Loan documents,
CESCR LP is deemed an acceptable sponsor whose acquisition is specifically
pre-approved.
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<PAGE>
THE PROPERTIES. The Skyline City Pool Properties are comprised of the
Skyline City Pool Borrower's fee simple interest in two commercial office
buildings. The Skyline City Pool Properties are located in the Skyline City
master-planned commercial park in Falls Church, Fairfax County, Northern
Virginia. One Skyline Tower is comprised of approximately 4.56 acres of land
improved with a 26-story Class A office building and a five-level subterranean
parking facility containing approximately 1,322 parking spaces. The
improvements also include a surface lot which accommodates an additional 67
spaces. One Skyline Tower was built in 1987 and contains approximately 476,582
square feet of net rentable office space and approximately 4,054 square feet of
storage space. Three Skyline Place is comprised of approximately 2.65 acres of
land improved with a 16-story Class B office building and a three-level
subterranean parking facility containing approximately 613 parking spaces. The
improvements also include a surface lot which accommodates an additional 75
spaces. Three Skyline Place was built in 1980 and contains approximately
252,086 square feet of net rentable office space.
Appraisals, dated as of April 17, 1998 determined an aggregate value for
the Skyline City Pool Properties of approximately $122,600,000, resulting in a
Cut-Off Date LTV Ratio of approximately 71.3%. Each Skyline City Pool Property
appraisal was prepared in accordance with the Uniform Standards of Professional
Appraisal Practice. See "Risk Factors--Limitations on Appraisals" herein.
Property Condition Reports on the Skyline City Pool Properties were completed
in May 1998. The Property Condition Reports concluded that the Skyline City
Pool Properties were generally in good physical condition and identified only
minor immediate physical needs, totaling $9,438 in anticipated costs. A Phase I
environmental site assessments dated April 1998 was completed by a third-party
environmental firm for each Skyline City Pool Property. The reports did not
reveal any environmental liability that the Seller believes would have a
material adverse impact on the Skyline City Pool Borrower's business, assets or
results of operations taken as a whole. Nevertheless, there can be no assurance
that all environmental conditions and risks were identified in such reports.
See "Risk Factors--Environmental Risks" herein.
SKYLINE CITY POOL PROPERTIES SUMMARY
<TABLE>
<CAPTION>
NET
RENTABLE CUT-OFF DATE
SQUARE OCCUPANCY ALLOCATED APPRAISED VALUE
PROPERTY LOCATION FOOTAGE AS OF 7/98 LOAN AMOUNT (AS OF 4/98)
- ----------------------------- ------------------ ---------- ------------ ------------- ----------------
<S> <C> <C> <C> <C> <C>
One Skyline Tower ........... Falls Church, VA 476,582 98.7% $68,982,179 $ 84,900,000
Three Skyline Place ......... Falls Church, VA 252,086 92.8% 18,441,767 37,700,000
------- ----------- ------------
Total/Weighted
Average .................. 728,668 95.8% $87,423,946 $122,600,000
======= =========== ============
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED
CUT-OFF ANNUALIZED BASIC UNDERWRITTEN CUT-OFF
DATE BASIC RENT NET DATE
PROPERTY LTV RENT(1) PER SQUARE FOOT(2) CASH FLOW DSCR
- ----------------------------- --------- --------------- -------------------- -------------- ----------
<S> <C> <C> <C> <C> <C>
One Skyline Tower ........... 81.25% $ 10,800,672 $22.99 $6,888,130 1.23x
Three Skyline Place ......... 48.92% 4,700,002 $20.27 3,062,885 2.04x
------------ ----------
Total/Weighted
Average .................. 71.31% $ 15,500,674 $21.27 $9,951,015 1.40x
============ ==========
</TABLE>
- ----------
(1) Does not include antennae income of $408,932 or potential rent from
vacant area.
(2) Includes potential rent from vacant area.
OCCUPANCY AND MAJOR TENANTS: As of August 1, 1998, One Skyline Tower was
approximately 98.7% leased and Three Skyline Place was approximately 92.8%
leased. The ten largest tenants as of August 1, 1998, based upon annualized
base rent, are shown below:
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<PAGE>
TEN LARGEST TENANTS BASED ON ANNUALIZED BASE RENT--SKYLINE CITY POOL LOAN
<TABLE>
<CAPTION>
% OF ANNUALIZED
NET % OF BASIC RENT
TENANT RENTABLE TOTAL PER
SQUARE SQUARE ANNUALIZED ANNUALIZED SQUARE LEASE
TENANT PROPERTY FOOTAGE FOOTAGE BASIC RENT BASIC RENT(1) FOOT EXPIRATION
- ------------------------------------ --------------- --------- ---------- -------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
GSA GS-11B-00118 ................... One Skyline 283,073 38.8% $ 6,468,649 41.7% $22.85 9/09
Science Applications ............... One Skyline 87,837 12.1 2,139,218 13.8 $24.35 8/03
GSA GS-11B-90197 ................... One Skyline 82,154 11.3 1,753,469 11.3 $21.34 12/99
GSA GS-11B-70346 ................... Three Skyline 45,597 6.3 778,064 5.0 $17.06 8/02
Birch & Davis ...................... Three Skyline 25,331 3.5 534,204 3.4 $21.09 1/00
Booz, Allen & Hamilton ............. Three Skyline 19,683 2.7 412,648 2.7 $20.96 3/02
Irving Burton & Associates ......... Three Skyline 15,264 2.1 343,440 2.2 $22.50 5/01
Grumman Data Systems ............... Three Skyline 12,124 1.7 242,480 1.6 $20.00 1/00
Physician Medical Associates Three Skyline 10,792 1.5 232,727 1.5 $21.56 7/98
Richard S. Carson .................. One Skyline 8,040 1.1 206,279 1.3 $25.65 6/01
------- ---- ----------- ----
Total/Weighted
Average ......................... 589,895 81.0% $13,111,177 84.6% $22.23
======= ==== =========== ====
</TABLE>
- ----------
(1) Does not include potential rent from vacant area.
LEASE EXPIRATION SCHEDULE. The following table shows scheduled lease
expirations (assuming no renewal options) for tenants under leases as of August
1, 1998 at the Skyline City Pool Properties:
LEASE EXPIRATION SCHEDULE--SKYLINE CITY POOL LOAN
<TABLE>
<CAPTION>
% OF
NET ANNUALIZED
EXPIRING RENTABLE ANNUALIZED % OF BASIC RENT
YEAR END DEC 31 SQUARE FEET SQUARE FOOTAGE BASIC RENT BASIC RENT(1) PER SQUARE FOOT
- -------------------- ------------- ---------------- -------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
1998 ............... 30,674 4.2% $ 690,579 4.5% $22.51
1999 ............... 119,948 16.5 2,582,369 16.7 $21.53
2000 ............... 56,906 7.8 1,188,829 7.7 $20.89
2001 ............... 24,894 3.4 585,039 3.8 $23.50
2002 ............... 91,586 12.6 1,736,695 11.2 $18.96
2003 ............... 97,120 13.3 2,248,515 14.5 $23.15
2009 ............... 283,073 38.8 6,468,649 41.7 $22.85
Vacant ............. 24,467 3.4 -- -- --
------- ---- ----------- ----
Total/Weighted
Average ......... 728,668 100.0% $15,500,675 100.0% $21.27
======= ===== =========== =====
</TABLE>
- ----------
(1) Does not include potential rent from vacant area.
OPERATING HISTORY. The following table shows certain unaudited information
regarding the operating history of the Skyline City Pool Properties:
<TABLE>
<CAPTION>
TRAILING TWELVE UNDERWRITTEN
1995 1996 1997 (7/97-6/98) NET CASH FLOW
-------------- --------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C> <C>
REVENUES ................. $14,110,835 $ 14,817,024 $ 15,333,749 $ 16,458,125 $ 16,050,370
EXPENSES ................. 5,076,481 5,364,498 5,341,474 5,429,946 5,449,820
----------- ------------ ------------ ------------ ------------
NET OPERATING INCOME ..... 9,034,354 9,452,526 9,992,275 11,028,179 10,600,550
CAPITAL EXPENDITURES ..... 337,886 728,542 720,328 1,105,144 909,365
----------- ------------ ------------ ------------ ------------
NET CASH FLOW ............ $ 8,696,468 $ 8,723,984 $ 9,271,947 $ 9,923,035 $ 9,691,185
=========== ============ ============ ============ ============
</TABLE>
PROPERTY MANAGEMENT. The Skyline City Pool Properties are subject to two
separate management agreements (the "Skyline City Pool Management Agreements").
Under the terms of each Skyline City Pool Management Agreement, the Skyline
City Pool Manager is entitled to a management fee equal to 3% of gross revenues
of the Skyline City Pool Properties and a leasing fee equal to 2% of gross
lease revenues of the Skyline City Pool Properties for each lease signed. The
Skyline City Pool Manager has agreed that (i) upon the occurrence and
continuation of an event of default under the Skyline City Pool Loan, the
mortgagee may exercise all rights of the Skyline City Pool Borrower to
terminate the Skyline City Pool Management Agreements on 30 days' notice
without penalty or fee (other than accrued and unpaid fees thereunder) and (ii)
will not amend or modify the Skyline City Pool Management Agreements without
the prior written consent of the mortgagee (which consent will not be
unreasonably withheld or delayed).
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<PAGE>
SKYLINE CITY POOL: THE LOAN
PAYMENT TERMS. The Skyline City Pool Loan is an ARD Loan which bears
interest at a fixed rate per annum equal to 7.049% (the "Skyline City Pool
Initial Interest Rate") through and including August 10, 2008. The Skyline City
Pool Loan matures on June 11, 2028 (the "Skyline City Pool Maturity Date").
From and after August 11, 2008, its Anticipated Repayment Date, the Skyline
City Pool Loan accrues interest at a revised interest rate equal to the greater
of (x) 9.049% or (y) 2% above the Treasury Rate as of the Anticipated Repayment
Date. Pursuant to the terms of the Pooling Agreement, the Special Servicer will
not be permitted to enforce any increase in the Skyline City Pool Initial
Interest Rate above 9.049% per annum. Interest on the Skyline City Pool Loan is
calculated for any period based on the actual number of days elapsed and a
360-day year. See "--Certain Characteristics of the Mortgage Loans--ARD Loans"
herein.
The Skyline City Pool Loan requires monthly payments of principal and
interest of $592,148.22 each (based on a 30-year amortization schedule and a
per annum interest rate of 7.049%). Payment of the balance of the principal, if
any, together with all accrued and unpaid interest is required on the Skyline
City Pool Maturity Date. Commencing on the first payment date on or after its
Anticipated Repayment Date, the Skyline City Pool Borrower is required to apply
100% of the Excess Cash Flow for the month preceding the month in which the
payment date occurs in the following order of priority (i) to the outstanding
principal balance until the Skyline Pool Loan has been paid in full and (ii) to
Excess Interest. See "--Certain Characteristics of the Mortgage Loans--ARD
Loans" herein. The scheduled principal balance of the Skyline City Pool Loan as
of the Anticipated Repayment Date will be approximately $75,306,166.
PREPAYMENT. Except as described below, voluntary prepayment is prohibited
under the Skyline City Pool Loan prior to July 11, 2008, except in connection
with (i) acceleration of the Skyline City Pool Loan following an event of
default, (ii) certain casualty or condemnation events, and (iii) exercise of a
purchase option prior the second anniversary from the Closing Date by the
applicable U.S. government tenant at One Skyline Tower applying its right to
purchase One Skyline Tower after which the Skyline City Pool Borrower may
partially prepay the Skyline City Pool Loan so long as no event of default is
occurring and the Skyline City Pool Borrower prepays 110% of the Allocated Loan
Amount for One Skyline Tower.
If all or any part of the principal amount of the Skyline City Pool Loan
is prepaid upon acceleration of the Skyline City Pool Loan following the
occurrence of an event of default, the Skyline City Pool Borrower will also be
required to pay a yield maintenance charge. No yield maintenance charge or
prepayment premium will be payable upon any mandatory prepayment of the Skyline
City Pool Loan in connection with casualty or condemnation unless an event of
default has occurred and is continuing, in which case the Skyline City Pool
Borrower will be required to pay a yield maintenance charge calculated in
accordance with the terms of the Skyline City Pool Loan.
RELEASE IN EXCHANGE FOR SUBSTITUTE COLLATERAL--DEFEASANCE. The Skyline
City Pool Borrower is permitted on any date on or after the earlier of November
11, 2000 and the second anniversary from the Closing Date to defease all or a
portion of the Skyline City Pool Loan, provided, that certain conditions are
met, including the Skyline City Pool Borrower gives the mortgagee at least
thirty days' prior written notice of the date (which must be a payment date) of
such defeasance and that the Skyline City Pool Borrower pays on the defeasance
date (i) all accrued and unpaid interest on the Skyline City Pool Loan to but
not including such date, (ii) all other sums then due under the Skyline City
Pool Loan and the related loan documents, (iii) the Skyline City Pool
Defeasance Deposit and (iv) all reasonable costs and expenses of the mortgagee
incurred in connection with the defeasance. In addition, the Skyline City Pool
Borrower will be required to deliver to the mortgagee among other things a
confirmation, in form and substance reasonably satisfactory to the mortgagee,
from a major accounting firm that the Skyline City Pool Defeasance Deposit is
sufficient to pay all scheduled payments (including the outstanding principal
amount as of the Anticipated Repayment Date) due from the Borrower under the
Skyline City Pool Loan in connection with the proposed defeasance and
confirmation that all conditions to defeasance have been met from any
applicable rating agency that has required as a condition to defeasance that
such confirmation be obtained.
"Skyline City Pool Defeasance Deposit" means a cash amount equal to the
sum of (i) the remaining principal amount of the Skyline City Pool Loan (in the
case of a total defeasance) or the principal amount
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<PAGE>
of the defeased note (in the case of a partial defeasance), as applicable, with
interest thereon, (ii) without duplication, any costs and expenses incurred or
to be incurred in the purchase of U.S. Treasury obligations necessary to meet
the scheduled defeasance payments, and (iii) any revenue, documentary stamp or
intangible taxes or any other tax or charge due in connection with the transfer
of the note, the creation of the defeased note and the undefeased note, if
applicable, any transfer of the defeased note or otherwise required to
accomplish the defeasance.
Partial defeasance is permitted in an amount equal to the Skyline City
Pool Release Amount. In connection with the defeasance of the Skyline City Pool
Loan, the Skyline City Pool Borrower will be permitted to obtain the release of
the deed of trust lien encumbering the Skyline City Pool Properties or a
portion thereof with respect to a partial defeasance.
"Skyline City Pool Release Amount" means, with respect to a specified
Skyline City Pool Property, an amount equal to the excess of (i) (a) 110% of
the Allocated Loan Amount for One Skyline Tower, as applicable, or (b) 182% of
the Allocated Loan Amount for Three Skyline Place, over (ii) the scheduled
payments of principal made under the Skyline City Pool Loan allocated to such
Skyline City Pool Property (based on the relative Allocated Loan Amounts for
all of the Skyline City Pool Properties); provided that in no event will the
Skyline City Pool Release Amount be greater than the then outstanding principal
balance of the Skyline City Pool Loan.
Prior to the Anticipated Repayment Date and upon the occurrence of a
Skyline Pool Low Debt Service Trigger Event, all amounts on deposit in the
Skyline City Pool Low Debt Service Reserve Account are required to be applied
by the mortgagee as a partial defeasance of the Skyline City Pool Loan as
described in "Low Debt Service Account" below, provided the conditions for
defeasance set forth above are satisfied.
Upon receipt of the Skyline City Pool Defeasance Deposit, the mortgagee is
appointed as agent and attorney-in-fact to purchase U.S. Treasury obligations
using the Skyline City Pool Defeasance Deposit, on behalf of the Skyline City
Pool Borrower and such U.S. Treasury obligations will serve as the sole
collateral for the payments of the amounts due under the Skyline City Pool Loan
or the defeased portion of the Skyline City Pool Loan if only a portion is
defeased. Upon a deposit of U.S. Treasury obligations, the Skyline City Pool
Borrower will have the right to assign the obligation to make payments under
the Skyline City Pool Loan to an entity designated by the mortgagee. If the
Skyline City Pool Borrower does assign such an obligation, the mortgagee will
cause the obligation to be assumed by a special-purpose bankruptcy-remote
entity.
OTHER FINANCING. The Skyline City Pool Borrower is not permitted to incur
or assume any additional indebtedness other than unsecured trade payables
incurred in the ordinary course of the Skyline City Pool Borrower's business
and customarily paid within 60 days of incurrence and in fact not more than 60
days outstanding unless the Skyline City Pool Borrower in good faith is
contesting the payment of such trade payables.
ALTERATIONS. Except upon compliance with certain conditions set forth in
the Skyline City Pool Loan documents, the Skyline City Pool Borrower is
prohibited from making or permitting any demolition, alteration, installation,
improvement or decoration to the Skyline City Pool Properties or any part
thereof.
RESERVES. Pursuant to the terms of the Skyline City Pool Loan, the Skyline
City Pool Borrower has established the following reserve accounts, each to be
funded on each payment date in an amount equal to 1/12th of the annual reserve
requirement set forth below:
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RESERVE ACCOUNTS--SKYLINE CITY POOL LOAN
<TABLE>
<CAPTION>
CAPITAL RESERVE LEASING RESERVE DEBT SERVICE TAX AND INSURANCE
DUE DATE ACCOUNT ACCOUNT (1) RESERVE ACCOUNT ESCROW ACCOUNT
- -------------- ----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
1998 ......... $145,734 $ 545,033 (2) (3)
1999 ......... $145,734 $1,913,467 (4) (3)
2000 ......... $145,734 $ 817,550 (4) (3)
2001 ......... $145,734 $ 500,798 (4) (3)
2002 ......... $145,734 $1,066,711 (4) (3)
2003 ......... $145,734 $1,370,054 (4) (3)
2004 ......... $145,734 $ 208,159 (4) (3)
2005 ......... $145,734 $ 263,186 (4) (3)
2006 ......... $145,734 $ 972,847 (4) (3)
2007 ......... $145,734 $1,370,054 (4) (3)
</TABLE>
- ----------
(1) Provided, however, that (x) the Skyline City Pool Borrower may, prior to
the ninth anniversary of the closing of the Skyline City Pool Loan,
replace the funds required to be on deposit for any year with a letter of
credit for the amount required to be on deposit for such year, issued by
a bank with a long term unsecured debt rating of not less than the
highest rating then assigned by the applicable rating agencies to any of
the Certificates, and (y) the Skyline City Pool Borrower may, after the
third anniversary, but prior to the ninth anniversary of the closing of
the Skyline City Pool Loan, replace up to $1,000,000 of the account
balance with a guaranty instrument, acceptable to the mortgagee, executed
by Charles E. Smith Commercial Realty L.P., provided such entity will
have and continue to have a long term unsecured debt rating of at least
"BBB-" (or its equivalent) by the applicable rating agencies or
$1,750,000 of the account balance with a guaranty instrument acceptable
to the mortgagee, executed by Charles E. Smith Commercial Realty L.P.,
provided such entity shall have and continue to have a long-term
unsecured debt rating of at least "BBB" (or its equivalent) by the
applicable rating agencies.
(2) Funded at the initial closing of the Skyline City Pool Loan.
(3) An amount equal to the estimated taxes and insurance premiums payable
during the ensuing 12 months.
(4) An amount such that the account balance equals the Skyline City Pool Loan
monthly debt service payment amount.
LOW DEBT SERVICE RESERVE ACCOUNT. The Skyline City Pool Borrower has
established a low debt service reserve account (the "Skyline City Pool Low Debt
Service Reserve Account"), to be funded from and after a Skyline City Pool Low
Debt Service Trigger Event until a Skyline City Pool Low Debt Service Return
Event and/or from and after the Anticipated Repayment Date in an amount equal
to all remaining funds in the Skyline City Pool Deposit Account after funding
the reserve accounts established by the Skyline City Pool Borrower, paying the
budgeted operating expenses and capital expenditures and paying the mortgagee
any accrued and unpaid interest at the excess of the default rate over the
applicable interest rate.
"Skyline City Pool Low Debt Service Application Event" means that, as of
any date, the net operating income (with respect to all Skyline City Pool
Properties on an aggregate basis) for the prior 12 calendar month period will
be less than $7,400,000, provided, that until June 1, 1999, the existence of a
Skyline City Pool Low Debt Service Application Event will be determined based
upon annualization of net operating income for the elapsed portion of fiscal
years 1998 and 1999.
"Skyline City Pool Low Debt Service Trigger Event" means that, as of any
date, the net operating income (with respect to all Skyline City Pool
Properties on an aggregate basis) for the prior 12 calendar month period will
be less than $8,400,000, provided, that until June 1, 1999, the existence of a
Skyline City Pool Low Debt Service Trigger Event will be determined based upon
annualization of net operating income for the elapsed portion of fiscal years
1998 and 1999.
"Skyline City Pool Low Debt Service Return Event" means that, as of any
date following a Skyline City Pool Low Debt Service Trigger Event, (i) the net
operating income (with respect to all Skyline City Pool Properties on an
aggregate basis) for the prior 12 calendar month period will be greater than
$8,400,000, provided, that until June 1, 1999, the existence of a Skyline City
Pool Low Debt Service Trigger Event will be determined based upon annualization
of net operating income for the elapsed portion of fiscal years 1998 and 1999;
and (ii) no event of default then exists and is continuing.
Upon the occurrence of a Skyline City Pool Low Debt Service Application
Event all sums in the Skyline City Pool Low Debt Service Reserve Account are
required to be applied by the mortgagee to reduce the principal balance of the
Skyline City Pool Loan (including accrued and unpaid Excess
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Interest), and prior to the Anticipated Repayment Date, as a partial defeasance
of the Skyline City Pool Loan with the Skyline City Pool Borrower being
responsible for complying with the provisions for defeasance set forth in the
Skyline City Pool Loan agreement, provided, however, that upon the occurrence
of a Skyline City Pool Loan Low Debt Service Return Event and prior to the
Anticipated Repayment Date, all sums then remaining in the Skyline City Pool
Low Debt Service Reserve Account are required to be disbursed to the Skyline
City Pool Borrower.
CASH MANAGEMENT; LOCKBOX. The Skyline City Pool Borrower has established
and is required to maintain one or more segregated bank accounts in its name
(the "Skyline City Pool Property Level Sweep Account") and a segregated bank
account in the name of the mortgagee (the "Skyline City Pool Deposit Account").
Prior to the occurrence of a Skyline City Pool Lockbox Trigger Event, the
Skyline City Pool Borrower and the Skyline City Pool Manager are required to
deposit all payments received by them into the Skyline City Pool Property Level
Sweep Account no later than the close of business on the same day as such
payment is received. A "Skyline City Pool Lockbox Trigger Event" means the
earliest to occur of a Skyline City Pool Low Debt Service Application Event, an
event of default under the Skyline City Pool Loan and the Anticipated Repayment
Date. From and after a Skyline City Lockbox Trigger Event, the Skyline City
Pool Property Level Sweep Account will be under the sole dominion and control
of the mortgagee and all amounts on deposit in the Skyline City Pool Property
Level Sweep Account are required to be swept daily into the Skyline City Pool
Deposit Account.
TRANSFER OF PROPERTY AND INTEREST IN THE SKYLINE CITY POOL BORROWER;
ENCUMBRANCES. With certain permitted exceptions, the Skyline City Pool Borrower
will generally not be permitted to sell, assign, convey, transfer or otherwise
dispose of or encumber, mortgage or hypothecate legal, beneficial or equitable
interests in the Skyline City Pool Properties, or permit or suffer any owner,
directly or indirectly, of a beneficial interest in the Skyline City Pool
Properties to transfer such interest, whether by transfer of stock or other
beneficial interest in any entity or otherwise. Notwithstanding the foregoing,
the Skyline City Pool Borrower shall have a one-time right to sell, assign,
convey, transfer or otherwise dispose of legal or equitable title to or any
interest in all or some of the Skyline City Pool Properties and solely in
connection with the exercise of the purchase option by the applicable U.S.
government tenant at One Skyline Tower, the Skyline City Pool Borrower may sell
its interest in One Skyline Tower to such GSA tenant.
Except for certain permitted transfers to transferee's identified in the
loan documents, transfers of equity interests in the Skyline City Pool Borrower
are generally prohibited.
CASUALTY AND CONDEMNATION. In the event of a casualty or a condemnation at
the Skyline City Pool Properties that involves a loss of less than 33.333% of
the outstanding principal balance of the Allocated Loan Amount for the affected
Skyline City Pool Property, the mortgagee shall permit the application of the
resulting proceeds (after reimbursement of any expenses incurred by the
mortgagee) to reimburse the Skyline City Pool Borrower for the cost of
restoring, repairing, replacing or rebuilding the affected Skyline City Pool
Property, provided that no default or event of default has occurred and is then
continuing and, in the reasonable judgment of the mortgagee: (i) the affected
Skyline City Pool Property can be restored to its original value; (ii) the
affected Skyline City Pool Property, after such restoration, will adequately
secure the outstanding principal balance of the Allocated Loan Amount; (iii)
the restoration can be completed by the earliest to occur of: (a) the 180th day
following the receipt of the proceeds, or, with confirmation of the Rating
Agencies, such longer period as may be required; (b) the 180th day prior to the
Anticipated Repayment Date; and (c) with respect to a casualty, the expiration
of the payment period on the rental-loss insurance coverage in respect of such
casualty; and (iv) during the period of the restoration, the sum of (x) income
derived from the affected Skyline City Pool Property, plus (y) proceeds of rent
loss insurance or business interruption insurance, if any, payable will equal
or exceed 125% of the sum of (1) expenses in connection with the operation of
the affected Skyline City Pool Property and (2) the debt service in respect to
the Allocated Loan Amount for such affected Property, provided that the
foregoing condition will be deemed satisfied if the net operating income
derived from the affected individual property during the period of restoration
(including proceeds from rent loss insurance or business interruption
insurance, if any, payable) will not be less than such net operating income
prior to the casualty or condemnation in question.
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<PAGE>
If any of the conditions set forth in the preceding paragraph is not
satisfied, then, unless the mortgagee elects otherwise, the proceeds will be
required to be applied to the prepayment of the Skyline City Pool Loan without
prepayment premium or penalty, other than a yield maintenance premium if an
event of default has occurred and is continuing.
In the event of a casualty or condemnation that involves a loss of 33.333%
or more of the Allocated Loan Amount for such affected Skyline City Pool
Property, then the mortgagee will have the option to apply the net proceeds to
the prepayment of the Skyline City Pool Loan without any yield maintenance
charge or prepayment premium (other than a yield maintenance charge if any
event of default has occurred and is continuing) and the Skyline City Pool
Borrower will be entitled to receive a release of the mortgage lien affecting
the affected Skyline City Pool Property, with the proceeds applied against the
related Skyline City Pool Loan Release Amount, or, to have such proceeds
applied to reimburse the Skyline City Pool Borrower for the cost of any
restoration.
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DESCRIPTION OF THE OFFERED CERTIFICATES
GENERAL
The Certificates will be issued pursuant to the Pooling Agreement and will
consist of 16 classes (each, a "Class") to be designated as the Class A-1
Certificates, the Class A-2 Certificates and Class A-3 Certificates
(collectively, the "Class A Certificates"), the Class X Certificates, the Class
B Certificates, the Class C Certificates, the Class D Certificates, the Class E
Certificates, the Class F Certificates, the Class G Certificates, the Class H
Certificates, the Class J Certificates, the Class K Certificates, the Class Q
Certificates, the Class R Certificates and the Class LR Certificates. Only the
Class A-1, Class A-2, Class A-3, Class X, Class B, Class C, Class D and Class E
Certificates (collectively, the "Offered Certificates") are offered hereby. The
Class F, Class G, Class H, Class J, Class K, Class Q, Class R and Class LR
Certificates (collectively, the "Private Certificates") are not offered hereby.
The Certificates represent in the aggregate the entire beneficial
ownership interest in the Trust Fund consisting of: (i) the Mortgage Loans and
all payments under and proceeds of the Mortgage Loans due after the Cut-Off
Date (except, with respect to 12 Mortgage Loans, representing approximately
5.3% of the Initial Pool Balance, with respect to which a portion of the
interest payment due on the applicable Due Date in November 1998 which is in
excess of one month's accrued interest will be retained by the applicable Loan
Seller); (ii) any Mortgaged Property acquired on behalf of the Trust Fund
through foreclosure or deed in lieu of foreclosure (upon acquisition, an "REO
Property"); (iii) such funds or assets as from time to time are deposited in
the Collection Account, the Lower-Tier Distribution Account, the Upper-Tier
Distribution Account, the Interest Reserve Account, the Excess Interest
Distribution Account, the Reserve Account, the Class Q Distribution Account,
and any account established in connection with REO Properties (an "REO
Account"); and (iv) the rights of the mortgagee under all insurance policies
with respect to the Mortgage Loans. The Class Q Certificates are not entitled
to any distributions on or with respect to any other assets in the Trust Fund
other than distributions of Net Default Interest and any distributions in
respect of the AIMCO Multifamily Pool Conditional Debt. The Certificates do not
represent an interest in or obligation of the Seller, the Loan Sellers, the
Originators, the Master Servicer, the Trustee, the Fiscal Agent, the
Underwriter, the borrowers, the property managers or any of their respective
affiliates.
Upon initial issuance, the Class A-1, Class A-2, Class A-3, Class B, Class
C, Class D, Class E, Class F, Class G, Class H, Class J and Class K
Certificates (collectively, the "Sequential Pay Certificates") will have the
following Certificate Principal Amounts and the Class X Certificates will have
the Notional Amount shown below (in each case, subject to a variance of plus or
minus 5%):
<TABLE>
<CAPTION>
INITIAL CERTIFICATE PRINCIPAL
CLASS AMOUNT OR NOTIONAL AMOUNT
- -------------------------- ------------------------------
<S> <C>
Class A-1 .............. $ 207,500,000
Class A-2 .............. $ 436,033,000
Class A-3 .............. $ 650,220,628
Class X ................ $1,861,517,825
Class B ................ $ 102,384,000
Class C ................ $ 102,383,000
Class D ................ $ 107,038,000
Class E ................ $ 32,576,000
Class F ................ $ 83,768,000
Class G ................ $ 23,268,000
Class H ................ $ 55,846,000
Class J ................ $ 23,269,000
Class K ................ $ 37,232,197
</TABLE>
The "Certificate Principal Amount" of any Class of Sequential Pay
Certificates outstanding at any time represents the maximum amount which the
Holders thereof are entitled to receive as distributions
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<PAGE>
allocable to principal from the cash flow on the Mortgage Loans and the other
assets in the Trust Fund, all as described herein; provided, however, that in
the event that Realized Losses previously allocated to a Class of Certificates
in reduction of their Certificate Principal Amounts are recovered subsequent to
the reduction of the Certificate Principal Amount of such Class to zero, such
Class may receive distributions in respect of such recoveries in accordance
with the priorities set forth under "--Distributions--Payment Priorities"
herein. The respective Certificate Principal Amount of each Class of
Certificates entitled to distributions of principal will in each case be
reduced by amounts actually distributed thereon that are allocable to principal
and by any Realized Losses allocated to such Class of Certificates.
The Class X Certificates will not have a Certificate Principal Amount.
Such Class will represent the right to receive distributions of interest
accrued as described herein on a notional principal amount (a "Notional
Amount"). The Notional Amount of the Class X Certificates will generally equal
the aggregate Certificate Principal Amounts of the Sequential Pay Certificates
outstanding from time to time.
The Notional Amount of the Class X Certificates will be reduced to the
extent of all reductions in the aggregate of the Certificate Principal Amounts
of the Sequential Pay Certificates. The Notional Amount of the Class X
Certificates will for purposes of distributions on each Distribution Date equal
the aggregate of the Certificate Principal Amounts of the Sequential Pay
Certificates as of the first day of the related Interest Accrual Period.
DISTRIBUTIONS
METHOD, TIMING AND AMOUNT. Distributions on the Certificates are required
to be made on the 18th day of each month, or if such day is not a day other
than a Saturday, a Sunday or any day on which banking institutions in the City
of New York, New York, the cities in which the principal servicing offices of
the Master Servicer or the Special Servicer are located, or city in which the
corporate trust office of the Trustee is located, are authorized or obligated
by law, executive order or governmental decree to be closed (each such day a
"Business Day"), on the next succeeding Business Day, commencing on November
18, 1998 (each, a "Distribution Date"). All distributions (other than the final
distribution on any Certificate) are required to be made by the Trustee to the
persons in whose names the Certificates are registered at the close of business
on the last day of the month immediately preceding the month in which the
related Distribution Date occurs or, if such day is not a Business Day, the
immediately preceding Business Day (such date, the "Record Date"). Such
distributions are required to be made (a) by wire transfer in immediately
available funds to the account specified by the Certificateholder at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
provides the Trustee with wiring instructions no less than five Business Days
prior to the related Record Date, or otherwise (b) by check mailed to such
Certificateholder. The final distribution on any Offered Certificates is
required to be made in like manner, but only upon presentment or surrender (for
notation that the Certificate Principal Amount thereof has been reduced to
zero) of such Certificate at the location specified in the notice to the
Certificateholder thereof of such final distribution. All distributions made
with respect to a Class of Certificates on each Distribution Date will be
allocated pro rata among the outstanding Certificates of such Class based on
their respective Percentage Interests. The "Percentage Interest" evidenced by
any Offered Certificate is equal to the initial denomination thereof as of the
Closing Date divided by the initial Certificate Principal Amount of the related
Class.
The aggregate distribution to be made on the Certificates (other than the
Class Q Certificates) on any Distribution Date will equal the Available Funds.
The "Available Funds" for a Distribution Date will be the sum of (i) all
Monthly Payments or other receipts on account of principal and interest on or
in respect of the Mortgage Loans (including Unscheduled Payments and Net REO
Proceeds, if any) received by the Master Servicer in the related Prepayment
Period, (ii) all other amounts deposited in the Collection Account by the
Master Servicer pursuant to the Pooling Agreement in respect of such
Distribution Date that are allocable to the Mortgage Loans, including all P&I
Advances made by the Master Servicer, the Trustee or the Fiscal Agent, as
applicable, in respect of such Distribution Date, and any interest or other
income earned on funds in the Interest Reserve Account, (iii) for the
Distribution Date occurring in each March, the related Withheld Amounts as
described herein under "The Pooling Agreement--Accounts--
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<PAGE>
Interest Reserve Account" and required to be deposited in the Lower-Tier
Distribution Account pursuant to the Pooling Agreement, (iv) any late payments
of Monthly Payments received after the end of the Collection Period relating to
such Distribution Date but prior to the related Determination Date, and (v) any
funds released from the Reserve Account and any payments received on the
Reinvestment Enhancement Instrument, but excluding the following:
(a) amounts permitted to be used to reimburse the Master Servicer, the
Special Servicer, the Trustee or the Fiscal Agent, as applicable, for
previously unreimbursed Advances and interest on such Advances as described
herein under "The Pooling Agreement--Advances";
(b) the aggregate amount of the Servicing Fee (which includes the fees
for both the Trustee and the Master Servicer) payable to the Master
Servicer (net of any amounts used to offset Prepayment Interest Shortfalls
as described herein) and the amounts payable to the Special Servicer
described herein under "The Pooling Agreement--Certain Matters Regarding
the Seller, the Master Servicer and the Special Servicer" in each case in
respect of such Distribution Date, and all amounts in the nature of late
fees, loan modification fees, extension fees, loan service transaction
fees, demand fees, beneficiary statement charges, assumption fees,
modification fees and similar fees, and reinvestment earnings on payments
received with respect to the Mortgage Loans which the Master Servicer or
Special Servicer is entitled to receive as additional servicing
compensation pursuant to the terms of the Pooling Agreement (together with
the Servicing Fee, "Servicing Compensation");
(c) all amounts representing scheduled Monthly Payments due after the
related Due Date;
(d) to the extent permitted by the Pooling Agreement, that portion of
liquidation proceeds, insurance proceeds and condemnation proceeds or the
Repurchase Price received with respect to a Mortgage Loan which represents
any unpaid Servicing Compensation as described herein, to which the Master
Servicer, the Special Servicer or the Trustee is entitled;
(e) all amounts representing certain unanticipated or default related
expenses reimbursable or payable to the Master Servicer, the Special
Servicer, the Trustee or Fiscal Agent and other amounts permitted to be
retained by the Master Servicer or withdrawn pursuant to the Pooling
Agreement in respect of various items, including the excess of Prepayment
Interest Excesses over Prepayment Interest Shortfalls (as such terms are
defined herein) and indemnities;
(f) prepayment premiums and yield maintenance charges;
(g) Default Interest;
(h) Excess Interest;
(i) with respect to all Mortgage Loans which accrue interest on the
basis of a 360-day year and the actual number of days in the related month
and any Distribution Date occurring in each February, and in any January
occurring in a year that is not a leap year, the related Withheld Amount as
described under "The Pooling Agreement--Accounts--Interest Reserve Account"
herein;
(j) all amounts received with respect to each Mortgage Loan previously
purchased or repurchased pursuant to the Pooling Agreement during the
related Prepayment Period and subsequent to the date as of which the amount
required to effect such purchase or repurchase was determined;
(k) all amounts deposited in the Reserve Account since the preceding
Distribution Date;
(l) the amount reasonably determined by the Trustee to be necessary to
pay any applicable federal, state or local taxes imposed on the Upper-Tier
REMIC or the Lower-Tier REMIC under the circumstances and to the extent
described in the Pooling Agreement; and
(m) all amounts received on or in respect of the AIMCO Multifamily Pool
Conditional Debt.
"Monthly Payment" with respect to any Mortgage Loan (other than any REO
Mortgage Loan) and any Due Date is the scheduled monthly payment of principal
(if any) and interest at the related Mortgage
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Rate which is payable by the related borrower on such Due Date. The Monthly
Payment with respect to any Distribution Date and (i) an REO Mortgage Loan, or
(ii) any Mortgage Loan which is delinquent at its maturity date and with
respect to which the Special Servicer has not entered into an extension, is the
monthly payment that would otherwise have been payable on the related Due Date
had the related Mortgage Note not been discharged or the related maturity date
had not been reached, as the case may be, determined as set forth in the
Pooling Agreement.
"Unscheduled Payments" are all net liquidation proceeds, net insurance
proceeds and net condemnation proceeds payable under the Mortgage Loans, any
Principal Prepayment, the purchase price received with respect to any purchase
or repurchase of any Mortgage Loan and any other payments under or with respect
to the Mortgage Loans not scheduled to be made, but excluding prepayment
premiums, yield maintenance charges, Excess Interest and Default Interest and
excluding any amount paid in connection with the release of the related
Mortgaged Property through defeasance.
"Net REO Proceeds" with respect to any REO Property and any related REO
Mortgage Loan are all revenues received by the Special Servicer with respect to
such REO Property or REO Mortgage Loan (other than the proceeds of a
liquidation thereof) net of any insurance premiums, taxes, assessments and
other costs and expenses permitted to be paid therefrom pursuant to the Pooling
Agreement.
"Principal Prepayments" are unscheduled payments of principal permitted to
be made by a borrower under the terms of a Mortgage Loan and received from the
borrower.
"Collection Period" with respect to a Distribution Date and each Mortgage
Loan is the period beginning on the day after the Due Date in the month
preceding the month in which such Distribution Date occurs (or, in the case of
the Distribution Date occurring on November 18, 1998, beginning on the day
after the Cut-Off Date) and ending on the Due Date in the month in which such
Distribution Date occurs.
"Repurchase Price" with respect to a Mortgage Loan shall be equal to the
sum of (i) the outstanding principal balance of such Mortgage Loan (or relevant
portion thereof) as of the date of purchase, (ii) all accrued and unpaid
interest on such Mortgage Loan (or relevant portion thereof) at the related Net
Mortgage Rate, in effect from time to time, to but not including the Due Date
in the Collection Period of purchase, (iii) all related unreimbursed Property
Advances plus accrued and unpaid interest on related Advances at the Advance
Rate, and unpaid Special Servicing Fees allocable to such Mortgage Loan (or
relevant portion thereof) and (iv) all reasonable out-of-pocket expenses
reasonably incurred by the Master Servicer, the Special Servicer, the Seller
and the Trustee in respect of the breach giving rise to the repurchase
obligation, including any expenses arising out of the enforcement of the
repurchase obligation, which are reimbursable to such parties under the terms
of the Pooling Agreement.
"Prepayment Period" with respect to any Distribution Date is the period
beginning the day after the Determination Date in the month immediately
preceding the month in which such Distribution Date occurs (or on the Cut-Off
Date, in the case of the first Distribution Date) through and including the
Determination Date immediately preceding such Distribution Date.
"Net Default Interest" with respect to any Mortgage Loan is any Default
Interest accrued on such Mortgage Loan less amounts required to pay the Master
Servicer, the Special Servicer, the Trustee or Fiscal Agent, as applicable,
interest on Advances at the Advance Rate.
"Determination Date" with respect to any Distribution Date is the fifth
Business Day prior to such Distribution Date.
"Default Interest" with respect to any Mortgage Loan is interest accrued
on such Mortgage Loan at the excess of (i) the related Default Rate over (ii)
the sum of the related Mortgage Rate plus, if applicable, the related Excess
Rate.
"Default Rate" with respect to any Mortgage Loan is the per annum rate at
which interest accrues on such Mortgage Loan following any event of default on
such Mortgage Loan including a default in the payment of a Monthly Payment.
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"Excess Rate" with respect to each of the ARD Loans is the excess of the
related Revised Rate over the related Initial Rate.
"Excess Interest" with respect to each of the ARD Loans is the interest
accrued at the related Excess Rate in respect of such Mortgage Loan, plus
interest thereon, to the extent permitted by applicable law, at the related
Revised Rate.
PAYMENT PRIORITIES. As used below in describing the priorities of
distribution of Available Funds for each Distribution Date, the terms set forth
below will have the following meanings.
The "Interest Accrual Amount," with respect to any Distribution Date and
any Class of Sequential Pay Certificates, is equal to interest for the related
Interest Accrual Period at the Pass-Through Rate for such Class on the related
Certificate Principal Amount (provided, that for interest accrual purposes any
distributions of principal or reductions in Certificate Principal Amount as a
result of allocations of Realized Losses on the Distribution Date occurring in
an Interest Accrual Period will be deemed to have been made on the first day of
such Interest Accrual Period); and "Interest Accrual Amount" with respect to
any Distribution Date and the Class X Certificates is equal to interest for the
related Interest Accrual Period at the Pass-Through Rate for such Class for
such Interest Accrual Period on the applicable Notional Amount of such Class
(provided, that for interest accrual purposes any reductions in Notional Amount
as a result of reductions in the corresponding Certificate Principal Amounts
used to determine the Notional Amount due to principal distributions or
allocations of Realized Losses on the Distribution Date occurring in an
Interest Accrual Period will be deemed to have been made on the first day of
such Interest Accrual Period). Calculations of interest on the Certificates
will be made on the basis of a 360-day year consisting of twelve 30-day months.
The "Interest Distribution Amount" with respect to any Distribution Date
and each Class of Regular Certificates will equal (A) the sum of (i) the
Interest Accrual Amount for such Distribution Date and (ii) the Interest
Shortfall, if any, for such Distribution Date, less (B) any Excess Prepayment
Interest Shortfall allocated to such Class on such Distribution Date.
The "Interest Accrual Period" with respect to any Distribution Date is the
calendar month preceding the month in which such Distribution Date occurs. Each
Interest Accrual Period with respect to each Class of Certificates is assumed
to consist of 30 days.
An "Interest Shortfall" with respect to any Distribution Date for any
Class of Regular Certificates is the sum of (a) the excess, if any, of (i) the
Interest Distribution Amount for such Class for the immediately preceding
Distribution Date, over (ii) all distributions of interest (other than Excess
Interest) made with respect to such Class of Certificates on the immediately
preceding Distribution Date, and (b) to the extent permitted by applicable law,
(i) other than in the case of the Class X Certificates, one month's interest on
any such excess at the Pass-Through Rate applicable to such Class of
Certificates for the current Distribution Date and (ii) in the case of the
Class X Certificates, one month's interest on any such excess at the WAC Rate
for such Distribution Date.
The "Pass-Through Rate" for any Class of Regular Certificates for any
Interest Accrual Period is the per annum rate at which interest accrues on the
Certificates of such Class during such Interest Accrual Period, as follows:
The Pass-Through Rate on the Class A-1 Certificates is a per annum rate
equal to 6.060%.
The Pass-Through Rate on the Class A-2 Certificates is a per annum rate
equal to 6.620%.
The Pass-Through Rate on the Class A-3 Certificates is a per annum rate
equal to 6.135%.
The Pass-Through Rate on the Class B Certificates is a per annum rate
equal to 6.970%.
The Pass-Through Rate on the Class C Certificates is a per annum rate
equal to 6.910%.
The Pass-Through Rate on the Class D Certificates is a per annum rate
equal to 7.450%, subject to a cap equal to the WAC Rate.
The Pass-Through Rate on the Class E Certificates is a per annum rate
equal to 7.450%, subject to a cap equal to the WAC Rate.
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The Pass-Through Rate on the Class F Certificates is a per annum rate
equal to 6.000%.
The Pass-Through Rate on the Class G Certificates is a per annum rate
equal to 6.000%.
The Pass-Through Rate on the Class H Certificates is a per annum rate
equal to 6.000%.
The Pass-Through Rate on the Class J Certificates is a per annum rate
equal to 6.000%.
The Pass-Through Rate on the Class K Certificates is a per annum rate
equal to 6.000%.
The Pass-Through Rate on the Class X Certificates is a per annum rate
equal to the excess of (i) the WAC Rate over (ii) the weighted average of
the Pass-Through Rates on the Sequential Pay Certificates, weighted on the
basis of their respective Certificate Principal Amounts.
The "WAC Rate" with respect to any Distribution Date is a per annum rate
equal to the product of the weighted average of the Net Mortgage Rates in
effect for the Mortgage Loans as of their respective Due Dates in the month
preceding the month in which such Distribution Date occurs weighted on the
basis of the respective Stated Principal Balances of the Mortgage Loans on such
Due Dates. For purposes of calculating the WAC Rate, payments on the Mortgage
Loans deposited in the Reserve Account will be treated as if they had not been
made until such time as they are released from the Reserve Account. See
"--Reserve Account and Reinvestment Letter of Credit" below.
The "Regular Certificates" are the Class A-1, Class A-2, Class A-3, Class
B, Class C, Class D, Class E, Class F, Class G, Class H, Class J, Class K and
Class X Certificates.
The "Net Mortgage Rate" with respect to any Mortgage Loan is a per annum
rate equal to the related Mortgage Rate in effect from time to time minus the
related Servicing Fee Rate (adjusted if necessary to accrue on the basis of a
360-day year consisting of twelve 30-day months). However, for purposes of
calculating Pass-Through Rates, the Net Mortgage Rate of such Mortgage Loan
will be determined without regard to any modification, waiver or amendment of
the terms, whether agreed to by the Special Servicer or resulting from a
bankruptcy, insolvency or similar proceeding involving the related borrower.
The "Mortgage Rate" with respect to any Mortgage Loan is the per annum
rate at which interest accrues on such Mortgage Loan as stated in the related
Mortgage Note in each case without giving effect to the Excess Rate or the
Default Rate. Notwithstanding the foregoing, if any Mortgage Loan does not
accrue interest on the basis of a 360-day year consisting of twelve 30-day
months, then, for purposes of calculating Pass-Through Rates, the Mortgage Rate
of such Mortgage Loan for any one-month period preceding a related Due Date
will be the annualized rate at which interest would have to accrue in respect
of such Mortgage Loan on the basis of a 360-day year consisting of twelve
30-day months in order to produce the aggregate amount of interest actually
accrued in respect of such Mortgage Loan during such one-month period at the
related Mortgage Rate; provided, however, that with respect to all such
Mortgage Loans which accrue on the basis of a 360-day year and the actual
number of days, (i) the Mortgage Rate for the one month period preceding the
Due Dates in January and February in any year which is not a leap year or in
February in any year which is a leap year will be determined net of the
Withheld Amount, and (ii) the Mortgage Rate for the one-month period preceding
the Due Date in March will be determined taking into account the addition of
any such Withheld Amounts.
The "Stated Principal Balance" of any Mortgage Loan at any date of
determination will equal (a) the principal balance as of the Cut-Off Date of
such Mortgage Loan, minus (b) the sum of (i) the principal portion of each
Monthly Payment due on such Mortgage Loan after the Cut-Off Date and prior to
such date of determination, if received from the borrower or advanced by the
Master Servicer, Trustee or Fiscal Agent, (ii) all voluntary and involuntary
principal prepayments and other unscheduled collections of principal received
with respect to such Mortgage Loan, to the extent distributed to holders of the
Certificates or applied to other payments required under the Pooling Agreement
before such date of determination and (iii) any adjustment to such balance as a
result of a reduction of principal by a bankruptcy court or as a result of a
modification reducing the principal amount due on such Mortgage Loan. The
Stated Principal Balance of a Mortgage Loan with respect to which title to the
related Mortgaged Property has been acquired by the Trust Fund is equal to the
principal balance of such Mortgage Loan outstanding on the date on which such
title is acquired less any Net REO Proceeds
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allocated to principal on such Mortgage Loan. The Stated Principal Balance of a
defaulted Mortgage Loan with respect to which the Master Servicer or the
Special Servicer has determined that it has received all payments and
recoveries which it expects to be finally recoverable on such Mortgage Loan is
zero.
The "Principal Distribution Amount" for any Distribution Date and a Loan
Group will be equal to the sum, without duplication, of:
(i) the principal component of all scheduled Monthly Payments due on the
Due Date immediately preceding such Distribution Date (if received, or advanced
by the Master Servicer, Trustee or Fiscal Agent, in respect of such
Distribution Date) with respect to the Mortgage Loans in such Loan Group;
(ii) the principal component of any payment on any Mortgage Loan in such
Loan Group received or applied on or after the date on which such payment was
due in the related Prepayment Period, net of the principal portion of any
unreimbursed P&I Advances related to such Mortgage Loan;
(iii) the portion of Unscheduled Payments allocable to principal of any
Mortgage Loan in such Loan Group (other than any amounts applied to the payment
of AIMCO Multifamily Pool Conditional Debt) received or applied during the
related Prepayment Period, net of the principal portion of any unreimbursed P&I
Advances related to such Mortgage Loan; and
(iv) the Principal Shortfall, if any, for such Distribution Date and Loan
Group.
The Principal Distribution Amount for Group 1 will be increased by the
principal portion of any funds released in the applicable period from the
Reserve Account and will be decreased by the amount of any payments on the
Mortgage Loans deposited during the applicable period into the Reserve Account.
See "--Reserve Account and Reinvestment Letter of Credit" below.
For purposes of the foregoing definition of Principal Distribution Amount,
the term "Principal Shortfall" for any Distribution Date and any Loan Group
means the amount, if any, by which (i) the Principal Distribution Amount for
the preceding Distribution Date for such Loan Group, exceeds (ii) the aggregate
amount actually distributed with respect to principal on such preceding
Distribution Date in respect of such Principal Distribution Amount.
An "REO Mortgage Loan" is any Mortgage Loan as to which the related
Mortgaged Property has become an REO Property.
On each Distribution Date prior to the Cross-over Date, the Available
Funds for such Distribution Date are required to be distributed in the
following amounts and order of priority:
(i) First, pro rata, in respect of interest, to the Class A-1, Class A-2,
Class A-3 and Class X Certificates, up to an amount equal to, and pro rata as
among such Classes in accordance with, the Interest Distribution Amounts of
such Classes;
(ii) Second, to the Class A Certificates, in reduction of their
respective Certificate Principal Amounts pro rata: (a) first, to the Class A-1
Certificates and second, to the Class A-2 Certificates, in each case up to an
amount equal to the lesser of (i) the Certificate Principal Amount of such
Certificates and (ii) the Principal Distribution Amount for Group 1 for such
Distribution Date (plus, after the Certificate Principal Amount of the Class
A-3 Certificates has been reduced to zero, the Principal Distribution Amount
for Group 2 for such Distribution Date (or the portion remaining after paying
the Class A-3 Certificates)); and (b) to the Class A-3 Certificates, up to an
amount equal to the lesser of (i) the Certificate Principal Amount of such
Certificates and (ii) the Principal Distribution Amount for Group 2 for such
Distribution Date (plus, after the Certificate Principal Amounts of the Class
A-1 and Class A-2 Certificates have been reduced to zero, the Principal
Distribution Amount for Group 1 (or the portion remaining after paying the
Class A-1 and Class A-2 Certificates));
(iii) Third, to the Class B Certificates, in respect of interest, up to
an amount equal to the aggregate Interest Distribution Amount of such Class;
(iv) Fourth, to the Class B Certificates, in reduction of the Certificate
Principal Amount thereof, up to an amount equal to the sum of the Principal
Distribution Amounts for Group 1 and Group 2, less the portions of such
Principal Distribution Amounts distributed pursuant to all prior clauses, until
the Certificate Principal Amount thereof is reduced to zero;
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(v) Fifth, to the Class B Certificates, an amount equal to the aggregate
of unreimbursed Realized Losses previously allocated to such Class, plus
interest thereon at the Pass-Through Rate for such Class compounded monthly
from the date the related Realized Loss was allocated to such Class;
(vi) Sixth, to the Class C Certificates, in respect of interest, up to an
amount equal to the aggregate Interest Distribution Amount of such Class;
(vii) Seventh, to the Class C Certificates, in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(viii) Eighth, to the Class C Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the related Realized Loss was allocated to such Class;
(ix) Ninth, to the Class D Certificates in respect of interest, up to an
amount equal to the aggregate Interest Distribution Amount of such Class;
(x) Tenth, to the Class D Certificates, in reduction of the Certificate
Principal Amount thereof, up to an amount equal to the sum of the Principal
Distribution Amounts for Group 1 and Group 2, less the portions of such
Principal Distribution Amounts distributed pursuant to all prior clauses, until
the Certificate Principal Amount thereof is reduced to zero;
(xi) Eleventh, to the Class D Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the related Realized Loss was allocated to such Class;
(xii) Twelfth, to the Class E Certificates in respect of interest, up to
an amount equal to the aggregate Interest Distribution Amount of such Class;
(xiii) Thirteenth, to the Class E Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xiv) Fourteenth, to the Class E Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the related Realized Loss was allocated to such Class;
(xv) Fifteenth, to the Class F Certificates in respect of interest, up to
an amount equal to the aggregate Interest Distribution Amount of such Class;
(xvi) Sixteenth, to the Class F Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xvii) Seventeenth, to the Class F Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the related Realized Loss was allocated to such Class;
(xviii) Eighteenth, to the Class G Certificates in respect of interest, up
to an amount equal to the aggregate Interest Distribution Amount of such Class;
(xix) Nineteenth, to the Class G Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xx) Twentieth, to the Class G Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the related Realized Loss was allocated to such Class;
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(xxi) Twenty-first, to the Class H Certificates in respect of interest, up
to an amount equal to the aggregate Interest Distribution Amount of such Class;
(xxii) Twenty-second, to the Class H Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xxiii) Twenty-third, to the Class H Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the Realized Loss was allocated to such Class;
(xxiv) Twenty-fourth, to the Class J Certificates in respect of interest,
up to an amount equal to the aggregate Interest Distribution Amount of such
Class;
(xxv) Twenty-fifth, to the Class J Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xxvi) Twenty-sixth, to the Class J Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the Realized Loss was allocated to such Class;
(xxvii) Twenty-seventh, to the Class K Certificates in respect of
interest, up to an amount equal to the aggregate Interest Distribution Amount
of such Class;
(xxviii) Twenty-eighth, to the Class K Certificates in reduction of the
Certificate Principal Amount thereof, up to an amount equal to the sum of the
Principal Distribution Amounts for Group 1 and Group 2, less the portions of
such Principal Distribution Amounts distributed pursuant to all prior clauses,
until the Certificate Principal Amount thereof is reduced to zero;
(xxix) Twenty-ninth, to the Class K Certificates, an amount equal to the
aggregate of unreimbursed Realized Losses previously allocated to such Class,
plus interest thereon at the Pass-Through Rate for such Class compounded
monthly from the date the Realized Loss was allocated to such Class; and
(xxx) Thirtieth, to the Class R Certificates, any amounts remaining in the
Upper-Tier Distribution Account; and to the Class LR Certificates, any amounts
remaining in the Lower-Tier Distribution Account.
On each Distribution Date occurring on and after the Cross-over Date,
regardless of the allocation of principal payments described in priority Second
above, an amount equal to the sum of the Principal Distribution Amounts for
Group 1 and Group 2 is required to be distributed, first, to the Class A-1,
Class A-2 and Class A-3 Certificates, pro rata, based on their respective
Certificate Principal Amounts, in reduction of their respective Certificate
Principal Amounts, until the Certificate Principal Amount of each such Class is
reduced to zero, and, second, to the Class A-1, Class A-2 and Class A-3
Certificates for unreimbursed amounts of Realized Losses previously allocated
to such Classes, pro rata in accordance with the amount of such unreimbursed
Realized Losses so allocated, plus interest thereon at their respective
Pass-Through Rates compounded monthly from the date the related Realized Loss
was allocated to such Classes. The "Cross-over Date" is the Distribution Date
on which the Certificate Principal Amount of each Class of Certificates
entitled to distributions of principal (other than the Class A-1, Class A-2 and
Class A-3 Certificates) has been reduced to zero due to the application of
Realized Losses.
All references to "pro rata" in the preceding clauses, unless otherwise
specified, mean pro rata based upon the amounts distributable pursuant to such
clause.
RESERVE ACCOUNT AND REINVESTMENT LETTER OF CREDIT. If, at any time prior
to July 2008, no unscheduled payment of principal on any Mortgage Loan has been
received (excluding for this purpose any prepayment in full on an ARD Loan on
its Anticipated Repayment Date), no Mortgage Loan fails to be paid in full on
its maturity date (or in the case of an ARD Loan, its Anticipated Repayment
Date) or
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within 30 days thereafter, and no Mortgage Loan has been delinquent for 60 days
or more, all scheduled payments of principal on Group 1 Mortgage Loans that are
due in July 2008 through September 2008 (including for this purpose prepayments
in full of ARD Loans in Group 1 that have Anticipated Repayment Dates in such
period) that are received in July 2008 through September 2008 will not be
distributed on the Certificates and will be excluded from the Principal
Distribution Amount for each Loan Group. Instead, they will be held in a
reserve account (the "Reserve Account") until the Certificate Principal Amount
of the Class A-3 Certificates has been reduced to zero.
The Seller or an affiliate of the Seller will direct the investment of
funds in the Reserve Account, and will be entitled to retain as compensation
for directing the investment of such funds any reinvestment income received in
excess of the amount required to pay interest on the Certificates.
If any unscheduled payment of principal on any Mortgage Loan is received
(excluding for this purpose any prepayment in full on any ARD Loan on its
Anticipated Repayment Date), any Mortgage Loan fails to be paid in full on its
maturity date (or in the case of an ARD Loan, its Anticipated Repayment Date)
or within 30 days thereafter, or a delinquency of 60 days or more occurs with
respect to any Mortgage Loan, any funds deposited in the Reserve Account will
be added to the Principal Distribution Amount for Group 1.
In order to cover reinvestment shortfall that might otherwise be suffered
by Certificateholders resulting from the reinvestment of funds on deposit in
the Reserve Account, the Seller or an affiliate of the Seller will cause to be
deposited on the Closing Date with the Trustee a letter of credit issued by ABN
AMRO Bank N.V. (who is also acting as the Fiscal Agent). The letter of credit
will be in the initial amount of $2,990,126. The letter of credit will have a
180-day term, and will be renewable at the option of ABN AMRO Bank N.V.
ABN AMRO Bank N.V.'s unsecured long-term debt obligations are currently
rated "AA+" by Fitch and "AA" by S&P.
If (a) the Seller or an affiliate of the Seller does not renew the letter
of credit prior to its expiration or (b) if either Rating Agency reduces its
ratings of the unsecured long-term debt obligations of ABN AMRO Bank N.V. below
"AA-", and in either case the Seller does not furnish the Trustee with a
replacement letter of credit issued by an entity whose unsecured long-term debt
obligations are rated at least "AA" by each Rating Agency, the Trustee will be
obligated to draw down on the letter of credit in full and deposit the funds
received in a reinvestment reserve account. Any reinvestment income earned on
such funds prior to the Distribution Date in July 2008 will belong and be
remitted monthly to the Seller or an affiliate of the Seller.
The Seller or an affiliate of the Seller will have the right at any time
prior to July 2008 to replace the letter of credit, or the funds on deposit in
the reinvestment reserve account after a draw down on the letter of credit as
described above, with a guaranteed investment contract, U.S. treasury
securities or such other obligation or instrument (the letter of credit, funds
in a reinvestment reserve account, or any such replacement is referred to
herein as a "Reinvestment Enhancement Instrument") in such amount and, if
applicable, issued by such entity that would not cause a downgrade,
qualification or withdrawal of the ratings assigned to any of the Certificates
by the Rating Agencies.
The amount of the letter of credit has been sized based on an assumed
reinvestment rate of 3% per annum, which assumed reinvestment rate has been
permitted by the Rating Agencies. In the event funds deposited in the Reserve
Account cannot be reinvested at a rate at least equal to such assumed rate, any
resulting shortfall will be borne by the most subordinate Certificates then
outstanding.
In the event any unscheduled payment of principal on any Mortgage Loan is
received (excluding for this purpose any prepayment in full on an ARD Loan on
its Anticipated Repayment Date), any Mortgage Loan fails to be paid in full on
its maturity date (or, in the case of an ARD Loan, its Anticipated Repayment
Date) or within 30 days thereafter, or a delinquency of 60 days or more occurs
with respect to any Mortgage Loan, the Trustee will release to the Seller or an
affiliate of the Seller the Reinvestment Enhancement Instrument, and there will
be no further obligation to maintain a Reinvestment Enhancement Instrument for
the benefit of Certificateholders.
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PREPAYMENT PREMIUMS. On any Distribution Date, prepayment premiums and
yield maintenance charges collected during the related Collection Period are
required to be distributed to the holders of the Classes of Offered
Certificates as described below.
On each Distribution Date, yield maintenance charges collected on the
Mortgage Loans in Group 1 during the related Prepayment Period will be
distributed by the Trustee to the following Classes of Offered Certificates: to
the Class A-1, Class A-2, Class B, Class C, Class D and Class E Certificates,
in an amount equal to the product of (a) a fraction whose numerator is the
amount distributed as principal to such Class on such Distribution Date, and
whose denominator is the total amount distributed as principal to the Class
A-1, Class A-2, Class B, Class C, Class D, Class E, Class F, Class G, Class H,
Class J and Class K Certificates on such Distribution Date, (b) the Base
Interest Fraction for the related principal prepayment and such Class of
Certificates, and (c) the aggregate amount of yield maintenance charges
relating to the Mortgage Loans in Group 1 collected on such principal
prepayments during the related Prepayment Period. Any yield maintenance charges
relating to the Mortgage Loans in Group 1 collected during the related
Prepayment Period remaining after such distributions will be distributed to the
holders of the Class X Certificates.
On each Distribution Date, yield maintenance charges collected on the
Mortgage Loans in Group 2 during the related Collection Period will be
distributed by the Trustee to the Class A-3 Certificates, in an amount equal to
the product of (a) a fraction, not greater than 1, whose numerator is the
amount distributed as principal to such Class on such Distribution Date, and
whose denominator is the total amount distributed as principal on such
Distribution Date from the Mortgage Loans in Group 2, (b) the Base Interest
Fraction for the related principal prepayment and such Class of Certificates,
and (c) the aggregate amount of yield maintenance charges relating to the
Mortgage Loans in Group 2 collected on such principal prepayments during the
related Prepayment Period. Any yield maintenance charges relating to the
Mortgage Loans in Group 2 collected during the related Prepayment Period
remaining after such distributions will be distributed to the holders of the
Class X Certificates.
The "Base Interest Fraction" with respect to any principal prepayment on
any Mortgage Loan and with respect to any Class of Offered Certificates is a
fraction (a) whose numerator is the amount, if any, by which (i) the
Pass-Through Rate on such Class of Certificates exceeds (ii) the discount rate
used in accordance with the related Mortgage Loan documents in calculating the
yield maintenance charge with respect to such principal prepayment and (b)
whose denominator is the amount, if any, by which the (i) Mortgage Rate on such
Mortgage Loan exceeds (ii) the discount rate used in accordance with the
related Mortgage Loan documents in calculating the yield maintenance charge
with respect to such principal prepayment; provided, however, that under no
circumstances shall the Base Interest Fraction be greater than one. If such
discount rate is greater than or equal to the lesser of (x) the Mortgage Rate
on such Mortgage Loan and (y) the Pass-Through Rate described in the preceding
sentence, then the Base Interest Fraction shall equal zero.
Notwithstanding the foregoing, if a penalty is imposed on the basis of a
formula that requires payment at the greater of a yield maintenance charge or a
minimum amount equal to a fixed percentage of the Stated Principal Balance of
the Mortgage Loan, and the latter is the greater amount, then the penalty so
collected will be allocated as described above. A substantial number of those
Mortgage Loans which have a yield maintenance charge also feature a fixed
prepayment premium for a specified period of time. For detailed information see
Annex A.
No prepayment premiums or yield maintenance charges will be distributed to
holders of the Class F, Class G, Class H, Class J, Class K, Class Q or Residual
Certificates. Instead, after the Certificate Principal Amount of the Class A-1,
Class A-2, Class B, Class C, Class D and Class E Certificates have been reduced
to zero, all prepayment premiums and yield maintenance charges with respect to
Mortgage Loans in Group 1 will be distributed to holders of the Class X
Certificates. Similarly, after the Certificate Principal Amount of the Class
A-3 Certificates has been reduced to zero, all prepayment premiums and yield
maintenance charges with respect to Mortgage Loans in Group 2 will be
distributed to holders of the Class X Certificates. For a description of
prepayment premiums and yield maintenance charges, see "Description of the
Mortgage Pool--Certain Characteristics of the Mortgage Loans--Prepayment
Provisions" herein. See also "Certain Legal Aspects of the Mortgage
Loans--Enforceability of Certain Provisions--Prepayment Provisions" in the
Prospectus.
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Notwithstanding the foregoing, prepayment premiums and yield maintenance
charges will be distributed on any Distribution Date only to the extent they
are received in respect of the Mortgage Loans in the related Prepayment Period.
EXCESS INTEREST. On each Distribution Date, the Trustee is required to
distribute any Excess Interest received during the related Collection Period,
to the holders of the Class A-2, Class A-3, Class B, Class C, Class D, Class E,
Class F and Class G Certificates, pro rata, based on their initial Certificate
Principal Amounts.
CLASS Q DISTRIBUTIONS. On each Distribution Date, Net Default Interest
received in the related Collection Period with respect to a default on a
Mortgage Loan, to the extent set forth in the Pooling Agreement, and payments
received in respect of the AIMCO Multifamily Pool Conditional Debt during the
related Collection Period will be available for distribution solely to the
Class Q Certificates, as set forth in the Pooling Agreement. The Class Q
Certificates are not entitled to any other distributions.
REALIZED LOSSES. The Certificate Principal Amount of each Class of
Sequential Pay Certificates will be reduced without distribution on any
Distribution Date as a write-off to the extent of any Realized Loss allocated
to such Class on such Distribution Date. As referred to herein, the "Realized
Loss" with respect to any Distribution Date shall mean the amount, if any, by
which the aggregate Certificate Principal Amount of all such Classes of
Certificates after giving effect to distributions made on such Distribution
Date exceeds the sum of (x) the aggregate Stated Principal Balance of the
Mortgage Loans after giving effect to any payments of principal received or
advanced with respect to the Due Date occurring immediately prior to such
Distribution Date, plus (y) payments on the Mortgage Loans deposited in the
Reserve Account and which have not otherwise been released as described under
"--Reserve Account and Reinvestment Letter of Credit" above. Any such
write-offs will be applied to such Classes of Certificates in the following
order, until each is reduced to zero: first, to the Class K Certificates;
second, to the Class J Certificates; third, to the Class H Certificates;
fourth, to the Class G Certificates; fifth, to the Class F Certificates; sixth,
to the Class E Certificates; seventh, to the Class D Certificates; eighth, to
the Class C Certificates; ninth, to the Class B Certificates and, finally, pro
rata, to the Class A-1, Class A-2 and Class A-3 Certificates, based on their
respective Certificate Principal Amounts. The Notional Amount of the Class X
Certificates will be reduced to reflect reductions in the Certificate Principal
Amounts of the Sequential Pay Certificates resulting from allocations of
Realized Losses. Any amounts recovered in respect of any amounts previously
written off as Realized Losses will be distributed to the Classes of
Certificates described above in reverse order of allocation of Realized Losses
thereto.
Shortfalls in Available Funds resulting from additional servicing
compensation other than the Servicing Fee, interest on Advances to the extent
not covered by Default Interest, extraordinary expenses of the Trust Fund, a
reduction of the interest rate of a Mortgage Loan by a bankruptcy court
pursuant to a plan of reorganization or pursuant to any of its equitable powers
or other unanticipated or default-related expenses (not constituting Realized
Losses) will be allocated to interest due on each Class of Regular Certificates
in the same order as Realized Losses are applied to the principal balance
thereof.
PREPAYMENT INTEREST SHORTFALLS. To the extent any Mortgage Loan is prepaid
in full or in part between a Determination Date and the related Due Date
immediately following such Determination Date, an interest shortfall may result
on the second Distribution Date following such Determination Date because
interest on prepayments in full or in part will only accrue to the date of
payment (such shortfall, a "Prepayment Interest Shortfall"). To the extent any
Mortgage Loan is prepaid in full or in part between the related Due Date and
the Determination Date immediately following such Due Date, the interest on
such prepayment will be included in the Available Funds for the immediately
succeeding Distribution Date (the "Prepayment Interest Excess"), but only to
the extent necessary to offset Prepayment Interest Shortfalls for such
Prepayment Period. If a Mortgage Loan is prepaid in full or in part during any
Prepayment Period, any related Prepayment Interest Shortfall shall be offset to
the extent of any Prepayment Interest Excess collected during such Prepayment
Period. If the Prepayment Interest Shortfall for any Prepayment Period exceeds
any Prepayment Interest Excess collected during such period, such shortfall
shall be offset only by an amount up to the product of (x) 1/12th of 0.04%, and
(y)
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the aggregate Stated Principal Balance of the Mortgage Loans for the related
Interest Accrual Period, which amount represents a reduction in the Servicing
Fee payable to the Master Servicer on the related Distribution Date. Any
remaining Prepayment Interest Shortfall not so offset (an "Excess Prepayment
Interest Shortfall") will be allocated to each Class of Regular Certificates,
pro rata, based upon the amount of interest which would otherwise have been
distributable to each Class. The Master Servicer shall be entitled to any
excess of the Prepayment Interest Excess over the Prepayment Interest
Shortfall.
APPRAISAL REDUCTION AMOUNTS. In the event that an Appraisal Reduction
Event occurs with respect to a Mortgage Loan, (i) the amount advanced by the
Master Servicer with respect to delinquent payments of interest with respect to
the related Mortgage Loan will be reduced as described under "The Pooling
Agreement--Advances" herein, and (ii) the Voting Rights of certain Classes will
be reduced as described under "The Pooling Agreement--Amendment" herein. The
reduction of interest advanced by the Master Servicer will have the effect of
reducing the amount available to be distributed as interest on the then most
subordinate Class or Classes of Certificates.
The Certificate Principal Amount of each of the Class K, Class J, Class H,
Class G, Class F, Class E, Class D, Class C and Class B Certificates will be
notionally reduced (solely for purposes of determining the Voting Rights of the
related Classes) on any Distribution Date to the extent of any Appraisal
Reduction Amounts allocated to such Class on such Distribution Date. To the
extent that the aggregate of the Appraisal Reduction Amounts for any
Distribution Date exceeds such Certificate Principal Amount, such excess will
be applied, subject to any reversal described below, to notionally reduce the
Certificate Principal Amount of the next most subordinate Class of Certificates
on the next Distribution Date. Any such reductions will be applied in the
following order of priority: first, to the Class K Certificates; second, to the
Class J Certificates; third, to the Class H Certificates; fourth, to the Class
G Certificates; fifth, to the Class F Certificates; sixth, to the Class E
Certificates; seventh, to the Class D Certificates; eighth, to the Class C
Certificates and finally, to the Class B Certificates (provided in each case
that no Certificate Principal Amount in respect of any such Class may be
notionally reduced below zero). See "--Payment Priorities" above and
"--Appraisal Reductions" below.
SUBORDINATION
As a means of providing a certain amount of protection to the holders of
the Class A-1, Class A-2, Class A-3 and Class X Certificates against losses
associated with delinquent and defaulted Mortgage Loans, the rights of the
holders of the Class B, Class C, Class D, Class E, Class F, Class G, Class H,
Class J and Class K Certificates to receive distributions of interest (other
than Excess Interest) and principal, as applicable, will be subordinated to
such rights of the holders of the Class A-1, Class A-2, Class A-3 and Class X
Certificates. The Class B Certificates will likewise be protected by the
subordination of the Class C, Class D, Class E, Class F, Class G, Class H,
Class J and Class K Certificates. The Class C Certificates will likewise be
protected by the subordination of the Class D, Class E, Class F, Class G, Class
H, Class J and Class K Certificates. The Class D Certificates will likewise be
protected by the subordination of the Class E, Class F, Class G, Class H, Class
J and Class K Certificates. The Class E Certificates will likewise be protected
by the subordination of the Class F, Class G, Class H, Class J and Class K
Certificates. This subordination will be effected in two ways: (i) by the
preferential right of the holders of a Class of Certificates to receive on any
Distribution Date the amounts of interest and principal distributable in
respect of such Certificates on such date prior to any distribution being made
on such Distribution Date in respect of any Classes of Certificates subordinate
thereto and (ii) by the allocation of Realized Losses first, to the Class K
Certificates; second, to the Class J Certificates; third, to the Class H
Certificates; fourth, to the Class G Certificates; fifth, to the Class F
Certificates; sixth, to the Class E Certificates; seventh, to the Class D
Certificates; eighth, to the Class C Certificates; ninth, to the Class B
Certificates; and, finally, to the Class A-1, Class A-2 and Class A-3
Certificates, pro rata, based on their respective Certificate Principal
Amounts. No other form of credit enhancement will be available with respect to
any Class of Offered Certificates.
APPRAISAL REDUCTIONS
With respect to the first Distribution Date following the earliest of (i)
the third anniversary of the date on which an extension of the maturity date of
a Mortgage Loan becomes effective as a result of a
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modification of such Mortgage Loan by the Special Servicer, which extension
does not change the amount of Monthly Payments on the Mortgage Loan, (ii) 120
days after an uncured delinquency occurs in respect of a Mortgage Loan, (iii)
90 days after the date on which a reduction in the amount of Monthly Payments
on a Mortgage Loan, or a change in any other material economic term of the
Mortgage Loan, becomes effective as a result of a modification of such Mortgage
Loan by the Special Servicer, (iv) 60 days after a receiver has been appointed,
(v) immediately after a borrower declares bankruptcy, (vi) 60 days after an
involuntary petition of bankruptcy is filed with respect to the borrower, if
such petition is not dismissed prior to the expiration of such period; and
(vii) immediately after a Mortgage Loan becomes an REO Mortgage Loan each, (an
"Appraisal Reduction Event"), an Appraisal Reduction Amount is required to be
calculated by the Special Servicer. The "Appraisal Reduction Amount" for any
Distribution Date and for any Mortgage Loan as to which any Appraisal Reduction
Event has occurred will be an amount equal to the excess of (a) the outstanding
Stated Principal Balance of such Mortgage Loan as of the last day of the
related Collection Period over (b) the excess of (i) 90% of the sum of the
appraised values of the related Mortgaged Properties as determined by
independent members of the Appraisal Institute ("MAI") appraisals (the costs of
which is required to be paid by the Master Servicer as an Advance) over (ii)
the sum of (A) to the extent not previously advanced by the Master Servicer,
the Trustee or the Fiscal Agent, all unpaid interest on such Mortgage Loan at a
per annum rate equal to the Mortgage Rate, (B) all unreimbursed Advances and
interest thereon at the Advance Rate in respect of such Mortgage Loan and (C)
all currently due and unpaid real estate taxes and assessments and insurance
premiums and all other amounts, including, if applicable, ground rents, due and
unpaid under the Mortgage Loan (which taxes, premiums and other amounts have
not been the subject of an Advance). If no independent MAI appraisal has been
obtained within twelve months prior to the first Distribution Date on or after
which an Appraisal Reduction Event has occurred, the Special Servicer will be
required to estimate the value of the related Mortgaged Properties (the
"Special Servicer's Appraisal Reduction Estimate") and such estimate will be
used for purposes of determining the Appraisal Reduction Amount. Within 60 days
after the Special Servicer receives notice or is otherwise aware of an
Appraisal Reduction Event, the Special Servicer will be required to obtain an
independent MAI appraisal, the cost of which will be paid by the Master
Servicer as a Property Advance. On the first Distribution Date occurring on or
after the delivery of such independent MAI appraisal, the Special Servicer will
be required to adjust the Appraisal Reduction Amount to take into account such
appraisal (regardless of whether the independent MAI appraisal is higher or
lower than the Special Servicer's Appraisal Reduction Estimate). Annual updates
of such independent MAI appraisal will be obtained during the continuance of an
Appraisal Reduction Event and the Appraisal Reduction Amount will be adjusted
accordingly.
Upon payment in full or liquidation of any Mortgage Loan for which an
Appraisal Reduction Amount has been determined, such Appraisal Reduction Amount
will be eliminated.
DELIVERY, FORM AND DENOMINATION
The Offered Certificates (other than the Class X Certificates) will be
issued, maintained and transferred in the book-entry form only in denominations
of $10,000 initial Certificate Principal Amount, and in multiples of $1 in
excess thereof, and the Class X Certificates will be issued, maintained and
transferred in the book-entry form only in denominations of $5,000,000 initial
Notional Amount, and in multiples of $1 in excess thereof.
The Offered Certificates will initially be represented by one or more
global Certificates for each such Class registered in the name of the nominee
of DTC. The Seller has been informed by DTC that DTC's nominee will be Cede &
Co. No holder of an Offered Certificate will be entitled to receive a
certificate issued in fully registered, certificated form (each, a "Definitive
Certificate") representing its interest in such Class, except under the limited
circumstances described below under "--Definitive Certificates." Unless and
until Definitive Certificates are issued, all references to actions by holders
of the Offered Certificates will refer to actions taken by DTC upon
instructions received from holders of Offered Certificates through its
participating organizations (together with CEDEL and Euroclear participating
organizations, the "Participants"), and all references herein to payments,
notices, reports, statements and other information to holders of Offered
Certificates will refer to payments, notices, reports and statements to DTC or
Cede & Co., as the registered holder of the Offered Certificates, for
distribution to holders of Offered Certificates through its Participants in
accordance with DTC procedures; provided,
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however, that to the extent that the party to the Pooling Agreement responsible
for distributing any report, statement or other information has been provided
with the name of the beneficial owner of a Certificate (or the prospective
transferee of such beneficial owner), such report, statement or other
information will be provided to such beneficial owner (or prospective
transferee).
Until Definitive Certificates are issued in respect of the Offered
Certificates, interests in the Offered Certificates will be transferred on the
book-entry records of DTC and its Participants. The Trustee will initially
serve as certificate registrar (in such capacity, the "Certificate Registrar")
for purposes of recording and otherwise providing for the registration of the
Offered Certificates.
A "Certificateholder" or "holder" under the Pooling Agreement will be the
person in whose name a Certificate is registered in the certificate register
maintained pursuant to the Pooling Agreement, except that solely for the
purpose of giving any consent or taking any action pursuant to the Pooling
Agreement, any Certificate registered in the name of the Seller, the Trustee,
the Master Servicer, the Special Servicer, a manager of a Mortgaged Property, a
borrower or any person affiliated with the Seller, the Trustee, the Master
Servicer, or the Special Servicer, will be deemed not to be outstanding and the
Voting Rights to which it is entitled will not be taken into account in
determining whether the requisite percentage of Voting Rights necessary to
effect any such consent or take any such action has been obtained; provided,
however, that for purposes of obtaining the consent of Certificateholders to an
amendment to the Pooling Agreement, any Certificates beneficially owned by the
Master Servicer, the Special Servicer or an affiliate of the Master Servicer or
the Special Servicer will be deemed to be outstanding, provided that such
amendment does not relate to compensation of the Master Servicer or the Special
Servicer, or otherwise benefit the Master Servicer or the Special Servicer in
any material respect; and, provided, further, that for purposes of obtaining
the consent of Certificateholders to any action proposed to be taken by the
Special Servicer with respect to a Specially Serviced Mortgage Loan, any
Certificates beneficially owned by the Master Servicer or an affiliate thereof
will be deemed to be outstanding, provided that the Special Servicer is not the
Master Servicer. The Percentage Interest of any Offered Certificate of any
Class will be equal to the percentage obtained by dividing the denomination of
such Certificate by the aggregate initial Certificate Principal Amount of such
Class of Certificates. See "Description of the Certificates--General" in the
Prospectus.
BOOK-ENTRY REGISTRATION
Holders of Offered Certificates may hold their Certificates through DTC
(in the United States) or CEDEL or Euroclear (in Europe) if they are
Participants of such system, or indirectly through organizations that are
participants in such systems. CEDEL and Euroclear will hold omnibus positions
on behalf of the CEDEL Participants and the Euroclear Participants,
respectively, through customers' securities accounts in CEDEL's and Euroclear's
names on the books of their respective depositories (collectively, the
"Depositories") which in turn will hold such positions in customers' securities
accounts in the Depositories' names on the books of DTC. DTC is a limited
purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New
York Uniform Commercial Code and a "clearing agency" registered pursuant to
Section 17A of the Securities Exchange Act of 1934, as amended. DTC was created
to hold securities for its Participants and to facilitate the clearance and
settlement of securities transactions between Participants through electronic
computerized book-entries, thereby eliminating the need for physical movement
of certificates. Participants include securities brokers and dealers, banks,
trust companies and clearing corporations. Indirect access to the DTC system
also is available to others such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a Participant,
either directly or indirectly ("Indirect Participants").
Transfers between DTC Participants will occur in accordance with DTC
rules. Transfers between CEDEL Participants and Euroclear Participants will
occur in accordance with their applicable rules and operating procedures.
Cross-market transfers between persons holding directly or indirectly
through DTC, on the one hand, and directly through CEDEL Participants or
Euroclear Participants, on the other, will be effected in DTC in accordance
with DTC rules on behalf of the relevant European international clearing system
by
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its Depository; however, such cross-market transactions will require delivery
of instructions to the relevant European international clearing system by the
counterparty in such system in accordance with its rules and procedures. If the
transaction complies with all relevant requirements, Euroclear or CEDEL, as the
case may be, will then deliver instructions to the Depository to take action to
effect final settlement on its behalf.
Because of time-zone differences, credits of securities in CEDEL or
Euroclear as a result of a transaction with a DTC Participant will be made
during the subsequent securities settlement processing, dated the business day
following the DTC settlement date, and such credits or any transactions in such
securities settled during such processing will be reported to the relevant
CEDEL Participant or Euroclear Participant on such business day. Cash received
in CEDEL or Euroclear as a result of sales of securities by or through a CEDEL
Participant or a Euroclear Participant to a DTC Participant will be received
with value on the DTC settlement date but will be available in the relevant
CEDEL or Euroclear cash account only as of the business day following
settlement in DTC.
The holders of Offered Certificates that are not Participants or Indirect
Participants but desire to purchase, sell or otherwise transfer ownership of,
or other interests in, Offered Certificates may do so only through Participants
and Indirect Participants. In addition, holders of Offered Certificates will
receive all distributions of principal and interest from the Trustee through
the Participants who in turn will receive them from DTC. Under a book-entry
format, holders of Offered Certificates may experience some delay in their
receipt of payments, since such payments will be forwarded by the Trustee to
Cede & Co., as nominee for DTC. DTC will forward such payments to its
Participants, which thereafter will forward them to Indirect Participants or
beneficial owners of Offered Certificates.
Under the rules, regulations and procedures creating and affecting DTC and
its operations (the "Rules"), DTC is required to make book-entry transfers of
Offered Certificates among Participants on whose behalf it acts with respect to
the Offered Certificates and to receive and transmit distributions of principal
of, and interest on, the Offered Certificates. Participants and Indirect
Participants with which the holders of Offered Certificates have accounts with
respect to the Offered Certificates similarly are required to make book-entry
transfers and receive and transmit such payments on behalf of their respective
holders of Offered Certificates. Accordingly, although the holders of Offered
Certificates will not possess the Offered Certificates, the Rules provide a
mechanism by which Participants will receive payments on Offered Certificates
and will be able to transfer their interest.
Because DTC can only act on behalf of Participants, who in turn act on
behalf of Indirect Participants and certain banks, the ability of a holder of
Offered Certificates to pledge such Certificates to persons or entities that do
not participate in the DTC system, or to otherwise act with respect to such
Certificates, may be limited due to the lack of a physical certificate for such
Certificates.
DTC has advised the Seller that it will take any action permitted to be
taken by a holder of an Offered Certificate under the Pooling Agreement only at
the direction of one or more Participants to whose accounts with DTC the
Offered Certificates are credited. DTC may take conflicting actions with
respect to other undivided interests to the extent that such actions are taken
on behalf of Participants whose holdings include such undivided interests.
CEDEL is incorporated under the laws of Luxembourg as a professional
depository. CEDEL holds securities for its participating organizations ("CEDEL
Participants") and facilitates the clearance and settlement of securities
transactions between CEDEL Participants through electronic book-entry changes
in accounts of CEDEL Participants, thereby eliminating the need for physical
movement of certificates.
Euroclear was created in 1968 to hold securities for participants of the
Euroclear system ("Euroclear Participants") and to clear and settle
transactions between Euroclear Participants through simultaneous electronic
book-entry delivery against payment.
Securities clearance accounts and cash accounts with the Euroclear
Operator are governed by the Terms and Conditions Governing Use of Euroclear
and the related Operating Procedures of the Euroclear System and applicable
Belgian law (collectively, the "Terms and Conditions"). The Terms and
Conditions govern transfers of securities and cash within the Euroclear system,
withdrawal of securities and cash from the Euroclear system, and receipts of
payments with respect to securities in the Euroclear system.
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Although DTC, Euroclear and CEDEL have implemented the foregoing
procedures in order to facilitate transfers of interests in book-entry
certificates among Participants of DTC, Euroclear and CEDEL, they are under no
obligation to perform or to continue to comply with such procedures, and such
procedures may be discontinued at any time. None of the Seller, the Trustee,
the Master Servicer, the Special Servicers or the Underwriter will have any
responsibility for the performance by DTC, Euroclear or CEDEL or their
respective direct or indirect Participants of their respective obligations
under the rules and procedures governing their operations. The information
herein concerning DTC, CEDEL and Euroclear and their book-entry systems has
been obtained from sources believed to be reliable, but the Seller takes no
responsibility for the accuracy or completeness thereof.
DEFINITIVE CERTIFICATES
Definitive Certificates will be delivered to beneficial owners of Offered
Certificates ("Certificate Owners") (or their nominees) only if (i) DTC is no
longer willing or able properly to discharge its responsibilities as depository
with respect to the Offered Certificates, and the Seller is unable to locate a
qualified successor, (ii) the Seller or the Trustee, at its sole option, elects
to terminate the book-entry system through DTC, or (iii) after the occurrence
of an Event of Default under the Pooling Agreement, Certificate Owners
representing a majority in principal amount of the Offered Certificates of any
Class then outstanding advise DTC through DTC Participants in writing that the
continuation of a book-entry system through DTC (or a successor thereto) is no
longer in the best interest of such Certificate Owners.
Upon the occurrence of any of the events described in clauses (i) through
(iii) in the immediately preceding paragraph, DTC is required to notify all
affected DTC Participants of the availability through DTC of Definitive
Certificates. Upon delivery of Definitive Certificates, the Trustee,
Certificate Registrar and Master Servicer will recognize the holders of such
Definitive Certificates as holders under the Pooling Agreement ("Holders").
Distributions of principal of and interest on the Definitive Certificates will
be made by the Trustee directly to Holders of Definitive Certificates in
accordance with the procedures set forth in the Prospectus and the Pooling
Agreement.
Upon the occurrence of any of the events described in clauses (i) through
(iii) of the second preceding paragraph, requests for transfer of Definitive
Certificates will be required to be submitted directly to the Certificate
Registrar in a form acceptable to the Certificate Registrar (such as the forms
which will appear on the back of the certificate representing a Definitive
Certificate), signed by the Holder or such Holder's legal representative and
accompanied by the Definitive Certificate or Certificates for which transfer is
being requested.
TRANSFER RESTRICTIONS
Each Class B, Class C, Class D and Class E Certificate will bear a legend
substantially to the effect that such Certificate may not be purchased by a
transferee that is (A) an employee benefit plan or other retirement
arrangement, including an individual retirement account or a Keogh plan, which
is subject to Title I of ERISA, or Section 4975 of the Code, or a "governmental
plan" (as defined in Section 3(32) of ERISA) that is subject to any federal,
state or local law ("Similar Law") which is, to a material extent, similar to
the foregoing provisions of ERISA of the Code (each, a "Plan"), or (B) a
collective investment fund in which Plans are invested, an insurance company
using assets of separate accounts or general accounts which include assets of
Plans (or which are deemed pursuant to ERISA or any Similar Law to include
assets of Plans) or other person acting on behalf of any such Plan or using the
assets of any such Plan, other than an insurance company using the assets of
its general account under circumstances whereby such purchase and the
subsequent holding of such Certificate by such insurance company would be
exempt from the prohibited transaction provisions of ERISA and the Code under
Prohibited Transaction Class Exemption 95-60.
Holders of Class B, Class C, Class D and Class E Certificates that are in
book-entry form will be deemed to have represented that they are not persons or
entities referred to in clause (A) or (B) of the legend described in the
preceding paragraph. In the event that holders of the Class B, Class C, Class D
and Class E Certificates become entitled to receive Definitive Certificates
under the circumstances described under "--Definitive Certificates," each
prospective transferee of a Class B, Class C, Class D
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and Class E Certificate that is a Definitive Certificate will be required to
either deliver to the Seller, the Certificate Registrar and the Trustee a
representation letter substantially in the form set forth as an exhibit to the
Pooling Agreement stating that such transferee is not a person or entity
referred to in clause (A) or (B) of the legend or provide an opinion to the
Seller, the Certificate Registrar and the Trustee as described in the Pooling
Agreement. Any transfer of a Class B, Class C, Class D or Class E Certificate
that would result in a prohibited transaction under ERISA or Section 4975 of
the Code, or a materially similar characterization under any Similar Law will
be deemed absolutely null and void ab initio.
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YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS
YIELD
The yield to maturity on the Offered Certificates will depend upon the
price paid by the Certificateholders, the rate and timing of the distributions
in reduction of Certificate Principal Amounts or Notional Amount, as
applicable, of the related Classes of Certificates, the extent to which
prepayment premiums, yield maintenance charges and Excess Interest allocated to
a Class of Certificates are collected, and the rate, timing and severity of
losses on the Mortgage Loans and the extent to which such losses are allocable
in reduction of the Certificate Principal Amounts or Notional Amounts, as
applicable, of such Classes of Certificates, as well as prevailing interest
rates at the time of payment or loss realization.
The rate of distributions in reduction of the Certificate Principal Amount
or Notional Amount, as applicable, of any Class of Offered Certificates, the
aggregate amount of distributions on any Class of Offered Certificates and the
yield to maturity of any Class of Offered Certificates will be directly related
to the rate of payments of principal (both scheduled and unscheduled) on the
Mortgage Loans and the amount and timing of borrower defaults and the severity
of losses occurring upon a default. Because generally principal distributions
to the holders of the Class A-1 and Class A-2 Certificates will be based on
principal received with respect to the Mortgage Loans in Group 1, such
Certificates will be sensitive to the rate and timing of principal payments on
Mortgage Loans in such Loan Group. Similarly, the Class A-3 Certificates will
be sensitive to principal payments on Mortgage Loans in Group 2. While
voluntary prepayments of Mortgage Loans are generally prohibited during
applicable prepayment lockout periods, effective prepayments may occur if a
sufficiently significant portion of the Mortgaged Property is lost due to
casualty or condemnation. In addition, such distributions in reduction of
Certificate Principal Amount or Notional Amount, as applicable, may result from
repurchases of Mortgage Loans made by the Responsible Parties due to missing or
defective documentation or breaches of representations and warranties with
respect to the Mortgage Loans as described herein under "Description of the
Mortgage Pool--Representations and Warranties" or purchases of the Mortgage
Loans in the manner described under "The Pooling Agreement--Optional
Termination; Optional Mortgage Loan Purchase." To the extent a Mortgage Loan
requires payment of a prepayment premium or yield maintenance charge in
connection with a voluntary prepayment, any such prepayment premium or yield
maintenance charge generally is not due in connection with a prepayment due to
casualty or condemnation, is not included in the purchase price of a Mortgage
Loan purchased or repurchased due to a breach of a representation or warranty,
and may not be enforceable or collectible upon a default.
Principal payments (whether resulting from differences in amortization
terms, prepayments following expirations of the respective prepayment lockout
periods or otherwise) on the Mortgage Loans will affect the Pass-Through Rate
of the Class X Certificates and, to the extent the WAC Rate would be reduced
below the fixed Pass-Through Rate on such Classes, the Class D and Class E
Certificates, for one or more future periods and therefore the yield on such
Classes.
The Certificate Principal Amount or Notional Amount, as applicable, of any
Class of Offered Certificates may be reduced without distributions thereon as a
result of the occurrence and allocation of Realized Losses, reducing the
maximum amount distributable in respect of Certificate Principal Amount, if
applicable, as well as the amount of interest that would have accrued on such
Certificates in the absence of such reduction. In general, a Realized Loss
occurs when the aggregate principal balance of a Mortgage Loan is reduced
without an equal distribution to applicable Certificateholders in reduction of
the Certificate Principal Amounts of the Certificates. Realized Losses are
likely to occur only in connection with a default on a Mortgage Loan and the
liquidation of the related Mortgaged Properties or a reduction in the principal
balance of a Mortgage Loan by a bankruptcy court. Realized Losses will be
allocated without regard to Loan Groups to the Certificates (other than the
Class Q, Class X, Class R and Class LR Certificates) in reverse alphabetical
order.
Because the Notional Amount of the Class X Certificates is based upon the
Certificate Principal Amounts of the Sequential Pay Certificates, the yield to
maturity on the Class X Certificates will be extremely sensitive to the rate
and timing of prepayments of principal (including both voluntary and
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involuntary prepayments, delinquencies, defaults and liquidations) on the
Mortgage Loans and any repurchase with respect to breaches of representations
and warranties with respect to the Mortgage Loans to the extent such payments
of principal are allocated to each such Class in reduction of the Certificate
Principal Amount thereof.
Certificateholders are not entitled to receive distributions of Monthly
Payments when due except to the extent they are either covered by an Advance or
actually received. Consequently, any defaulted Monthly Payment for which no
such Advance is made will tend to extend the weighted average lives of the
Certificates, whether or not a permitted extension of the due date of the
related Mortgage Loan has been effected.
The rate of payments (including voluntary and involuntary prepayments) on
pools of mortgage loans is influenced by a variety of economic, geographic,
social and other factors, including the level of mortgage interest rates and
the rate at which borrowers default on their Mortgage Loans. The terms of the
Mortgage Loans (in particular, the term of any prepayment lock-out period, the
extent to which prepayment premiums or yield maintenance charges are due with
respect to any principal prepayments, the right of the mortgagee to apply
condemnation and casualty proceeds to prepay the Mortgage Loan, the
availability of certain rights to defease all or a portion of the Mortgage
Loan, and any increase in the interest rate and the application of Excess Cash
Flow, if applicable, to prepay the related Mortgage Loan) may affect the rate
of principal payments on Mortgage Loans, and consequently, the yield to
maturity of the Classes of Offered Certificates. See "Description of the
Mortgage Pool" herein.
The timing of changes in the rate of prepayment on the Mortgage Loans may
significantly affect the actual yield to maturity experienced by an investor
even if the average rate of principal payments experienced over time is
consistent with such investor's expectation. In general, the earlier a
prepayment of principal on the Mortgage Loans, the greater the effect on such
investor's yield to maturity. As a result, the effect on such investor's yield
of principal payments occurring at a rate higher (or lower) than the rate
anticipated by the investor during the period immediately following the
issuance of the Offered Certificates would not be fully offset by a subsequent
like reduction (or increase) in the rate of principal payments.
No representation is made as to the rate of principal payments on the
Mortgage Loans or any Loan Group or as to the yield to maturity of any Class of
Offered Certificates. In addition, although Excess Cash Flow is applied to
reduce principal of the respective ARD Loans after their respective Anticipated
Repayment Dates, there can be no assurance that any of such ARD Loans will be
prepaid on that date or any date prior to maturity. An investor is urged to
make an investment decision with respect to any Class of Offered Certificates
based on the anticipated yield to maturity of such Class of Offered
Certificates resulting from its purchase price and such investor's own
determination as to anticipated Mortgage Loan prepayment rates under a variety
of scenarios. The extent to which any Class of Offered Certificates is
purchased at a discount or a premium and the degree to which the timing of
payments on such Class of Offered Certificates is sensitive to prepayments will
determine the extent to which the yield to maturity of such Class of Offered
Certificates may vary from the anticipated yield. An investor should carefully
consider the associated risks, including, in the case of any Offered
Certificates purchased at a discount, the risk that a slower than anticipated
rate of principal payments on the Mortgage Loans could result in an actual
yield to such investor that is lower than the anticipated yield and, in the
case of any Offered Certificates purchased at a premium, the risk that a faster
than anticipated rate of principal payments could result in an actual yield to
such investor that is lower than the anticipated yield.
In general, with respect to the Class X Certificates and any other class
of Offered Certificates that is purchased at a premium, if principal
distributions thereon occur at a rate faster than anticipated at the time of
purchase, the investor's actual yield to maturity will be lower than that
assumed at the time of purchase. In particular, the yield to maturity of the
Class X Certificates will be highly sensitive to the rate and timing of
principal payments (including by reason of prepayments, defaults and
liquidations) with respect to the Mortgage Loans. Investors in the Class X
Certificates should fully consider the risks of significant variability in the
rate and timing of such payments, including the risk that an extremely rapid
rate of principal collections on the Mortgage Loans could result in the failure
of such investors to recover
S-101
<PAGE>
fully their initial investments. Conversely, if a Class of Offered Certificates
is purchased at a discount and principal distributions thereon occur at a rate
slower than that assumed at the time of purchase, the investor's actual yield
to maturity will be lower than that assumed at the time of purchase.
An investor should consider the risk that rapid rates of prepayments on
the Mortgage Loans (or the Mortgage Loans in any Loan Group), and therefore of
amounts distributable in reduction of the Certificate Principal Amount of
Offered Certificates entitled to distributions of principal, may coincide with
periods of low prevailing interest rates. During such periods, the effective
interest rates on securities in which an investor may choose to reinvest such
amounts distributed to it may be lower than the applicable Pass-Through Rate.
Conversely, slower rates of prepayments on the Mortgage Loans (or the Mortgage
Loans in any Loan Group), and therefore, of amounts distributable in reduction
of principal balance of the Offered Certificates entitled to distributions of
principal, may coincide with periods of high prevailing interest rates. During
such periods, the amount of principal distributions resulting from prepayments
available to an investor in such Certificates for reinvestment at such high
prevailing interest rates may be relatively small.
The effective yield to holders of Offered Certificates will be lower than
the yield otherwise produced by the applicable Pass-Through Rate and applicable
purchase prices because while interest will accrue during each Interest Accrual
Period, the distribution of such interest will not be made until the
Distribution Date immediately following such Interest Accrual Period, and
principal paid on any Distribution Date will not bear interest during the
period from the end of such Interest Accrual Period to the Distribution Date
that follows.
The "Rated Final Distribution Date" for the Certificates will be October
18, 2030 which is the Distribution Date following the second anniversary after
the date at which all the Mortgage Loans have zero balances, assuming no
prepayments that the Mortgage Loans which are Balloon Mortgage Loans or ARD
Loans fully amortize according to their amortization schedule and no Balloon
Payment or prepayment on the Anticipated Repayment Date, as applicable, is
made.
WEIGHTED AVERAGE LIFE OF THE OFFERED CERTIFICATES
Weighted average life refers to the average amount of time from the date
of issuance of a security until each dollar of principal of such security will
be repaid to the investor. The weighted average life of the Offered
Certificates will be influenced by the rate at which principal payments
(including scheduled payments, principal prepayments and payments made pursuant
to any applicable policies of insurance) on the Mortgage Loans are made (and
with respect to the Class A-1 and Class A-2 Certificates, particularly the
Mortgage Loans in Group 1, and with respect to the Class A-3 Certificates,
particularly the Mortgage Loans in Group 2). Principal payments on the Mortgage
Loans may be in the form of scheduled amortization or prepayments (for this
purpose, the term "prepayment" includes prepayments, partial prepayments and
liquidations due to a default or other dispositions of the Mortgage Loans).
Calculations reflected in the following tables assume that the Mortgage
Loans have the characteristics shown on Annex A to this Prospectus Supplement,
and are based on the following additional assumptions ("Modeling Assumptions"):
(i) each Mortgage Loan is assumed to prepay at the indicated level of constant
prepayment rate ("CPR"), or in accordance with a prepayment scenario in which
prepayments in full occur, after expiration of any applicable lock-out period,
defeasance option and requirement for prepayment premiums or yield maintenance
charges in connection with prepayments, with each ARD Loan paying in full on
its Anticipated Repayment Date, (ii) there are no delinquencies, (iii)
scheduled interest and principal payments on the Mortgage Loans are timely
received on their respective Due Dates, commencing in November 1998 (assumed in
all cases to be the first day of each month) at the indicated levels of CPR or
in accordance with the prepayment scenario set forth in the tables, (iv)
partial prepayments on the Mortgage Loans are permitted, but are assumed not to
affect the amortization schedules, (v) no prepayment premiums or yield
maintenance charges are collected, (vi) no party exercises its right of
optional termination of the Trust Fund described herein, (vii) no Mortgage Loan
is required to be purchased from the Trust Fund, (viii) the Servicing Fee Rate
for each Mortgage Loan is 0.1275% per annum (or 0.2275% per annum in the case
of the Mortgage Loans identified on Annex A thereto as loan numbers O0148 and
O0393), (ix) there are no Excess Prepayment Interest Shortfalls,
S-102
<PAGE>
other shortfalls unrelated to defaults or Appraisal Reduction Amounts allocated
to any class of Offered Certificates, (x) distributions on the Certificates are
made on the 18th day (each assumed to be a Business Day) of each month,
commencing in November 1998, (xi) the Certificates will be issued on the
Closing Date, (xii) no Balloon Payment is extended beyond its Maturity Date,
(xiii) amounts held in the Reserve Account accrues at the WAC Rate, and (xiv)
the Pass-Through Rate with respect to each Class of Certificates is as
described on page S-6 herein (including in any applicable footnotes).
The weighted average life of any Class A-1, Class A-2, Class A-3, Class B,
Class C, Class D or Class E Certificate refers to the average amount of time
that will elapse from the date of its issuance until each dollar allocable to
principal of such Certificates is distributed to the investor. The weighted
average life of any such Offered Certificate will be influenced by, among other
things, the rate at which principal on the Mortgage Loans is paid or otherwise
collected or advanced and applied to pay principal of such Offered Certificate
(with respect to the Class A-1 and Class A-2 Certificates, particularly
principal attributable to the Mortgage Loans in Group 1, and with respect to
the Class A-3 Certificates, particularly principal attributable to the Mortgage
Loans in Group 2). As described herein, the Principal Distribution Amount for
Group 1 for each Distribution Date will be distributable first in respect of
the Class A-1 Certificates until its Certificate Principal Amount is reduced to
zero, and will thereafter be distributable entirely in respect of the Class A-2
Certificates, the Class A-3 Certificates (except with respect to 0% CPR), the
Class B Certificates, the Class C Certificates, the Class D Certificates and
the Class E Certificates, in that order, in each case until the Certificate
Principal Amount of such Class of Certificates is reduced to zero. Also as
described herein, the Principal Distribution Amount for Group 2 for each
Distribution Date will be distributable first in respect of the Class A-3
Certificates until the Certificate Principal Amount thereof is reduced to zero,
and will thereafter be distributable entirely in respect of the Class A-1
Certificates, the Class A-2 Certificates, the Class B Certificates, the Class C
Certificates, the Class D Certificates and the Class E Certificates, in that
order, in each case until the Certificate Principal Amount of such Class of
Certificates is reduced to zero.
The following tables indicate the percentage of the initial Certificate
Principal Amount of each Class of Offered Certificates that would be
outstanding after each of the dates shown under each of the indicated
prepayment assumptions and the corresponding weighted average life of each such
Class of Offered Certificates. The tables have been prepared on the basis of,
among others, the Modeling Assumptions. To the extent that the Mortgage Loans
or the Certificates have characteristics that differ from those assumed in
preparing the tables, the Class A-1, Class A-2, Class A-3, Class B, Class C,
Class D and/or Class E Certificates may mature earlier or later than indicated
by the tables. Accordingly, the Mortgage Loans will not prepay at any constant
rate, and it is highly unlikely that the Mortgage Loans will prepay in a manner
consistent with the assumptions described herein. In addition, variations in
the actual prepayment experience and the balance of the Mortgage Loans that
prepay may increase or decrease the percentages of initial Certificate
Principal Amount (and shorten or extend the weighted average lives) shown in
the following tables. Investors are urged to conduct their own analyses of the
rates at which the Mortgage Loans may be expected to prepay.
S-103
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS A-1 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT
INDICATED CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 93% 93% 93% 93% 93%
October 18, 2000 ......... 85% 85% 85% 85% 85%
October 18, 2001 ......... 76% 76% 76% 76% 76%
October 18, 2002 ......... 67% 67% 67% 67% 67%
October 18, 2003 ......... 57% 57% 57% 57% 57%
October 18, 2004 ......... 38% 38% 37% 37% 35%
October 18, 2005 ......... 24% 24% 24% 24% 24%
October 18, 2006 ......... 11% 11% 11% 11% 10%
October 18, 2007 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............ 5.01 5.00 4.99 4.98 4.93
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS A-2 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED
CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 100% 100% 100% 100% 100%
October 18, 2000 ......... 100% 100% 100% 100% 100%
October 18, 2001 ......... 100% 100% 100% 100% 100%
October 18, 2002 ......... 100% 100% 100% 100% 100%
October 18, 2003 ......... 100% 100% 100% 100% 100%
October 18, 2004 ......... 100% 100% 100% 100% 100%
October 18, 2005 ......... 100% 100% 100% 100% 100%
October 18, 2006 ......... 100% 100% 100% 100% 100%
October 18, 2007 ......... 96% 94% 92% 90% 79%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............ 9.49 9.46 9.43 9.38 9.16
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-104
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS A-3 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED
CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 99% 99% 99% 99% 99%
October 18, 2000 ......... 98% 98% 98% 98% 98%
October 18, 2001 ......... 97% 97% 97% 97% 97%
October 18, 2002 ......... 95% 95% 95% 95% 95%
October 18, 2003 ......... 94% 94% 94% 94% 94%
October 18, 2004 ......... 93% 93% 93% 93% 93%
October 18, 2005 ......... 89% 89% 89% 89% 89%
October 18, 2006 ......... 88% 88% 88% 88% 88%
October 18, 2007 ......... 86% 83% 79% 75% 60%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............. 8.99 8.91 8.87 8.81 8.57
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS B CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT
INDICATED CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 100% 100% 100% 100% 100%
October 18, 2000 ......... 100% 100% 100% 100% 100%
October 18, 2001 ......... 100% 100% 100% 100% 100%
October 18, 2002 ......... 100% 100% 100% 100% 100%
October 18, 2003 ......... 100% 100% 100% 100% 100%
October 18, 2004 ......... 100% 100% 100% 100% 100%
October 18, 2005 ......... 100% 100% 100% 100% 100%
October 18, 2006 ......... 100% 100% 100% 100% 100%
October 18, 2007 ......... 100% 100% 100% 100% 100%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............. 9.97 9.80 9.79 9.75 9.61
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-105
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS C CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT
INDICATED CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 100% 100% 100% 100% 100%
October 18, 2000 ......... 100% 100% 100% 100% 100%
October 18, 2001 ......... 100% 100% 100% 100% 100%
October 18, 2002 ......... 100% 100% 100% 100% 100%
October 18, 2003 ......... 100% 100% 100% 100% 100%
October 18, 2004 ......... 100% 100% 100% 100% 100%
October 18, 2005 ......... 100% 100% 100% 100% 100%
October 18, 2006 ......... 100% 100% 100% 100% 100%
October 18, 2007 ......... 100% 100% 100% 100% 100%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............. 9.97 9.82 9.80 9.80 9.68
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS D CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT
INDICATED CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 100% 100% 100% 100% 100%
October 18, 2000 ......... 100% 100% 100% 100% 100%
October 18, 2001 ......... 100% 100% 100% 100% 100%
October 18, 2002 ......... 100% 100% 100% 100% 100%
October 18, 2003 ......... 100% 100% 100% 100% 100%
October 18, 2004 ......... 100% 100% 100% 100% 100%
October 18, 2005 ......... 100% 100% 100% 100% 100%
October 18, 2006 ......... 100% 100% 100% 100% 100%
October 18, 2007 ......... 100% 100% 100% 100% 100%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............. 9.97 9.89 9.89 9.86 9.72
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-106
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE PRINCIPAL AMOUNT OF
THE CLASS E CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT
INDICATED CPR
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION (CPR)
--------------------------------------------------------
DISTRIBUTION DATE 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Initial .................. 100% 100% 100% 100% 100%
October 18, 1999 ......... 100% 100% 100% 100% 100%
October 18, 2000 ......... 100% 100% 100% 100% 100%
October 18, 2001 ......... 100% 100% 100% 100% 100%
October 18, 2002 ......... 100% 100% 100% 100% 100%
October 18, 2003 ......... 100% 100% 100% 100% 100%
October 18, 2004 ......... 100% 100% 100% 100% 100%
October 18, 2005 ......... 100% 100% 100% 100% 100%
October 18, 2006 ......... 100% 100% 100% 100% 100%
October 18, 2007 ......... 100% 100% 100% 100% 100%
October 18, 2008 and
thereafter .............. 0% 0% 0% 0% 0%
Weighted Average Life
(in years) ............. 9.97 9.89 9.89 9.89 9.72
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-107
<PAGE>
PRICE/YIELD TABLES
The tables set forth below show the corporate bond equivalent ("CBE")
yield, weighted average life (as described under "--Weighted Average Life of
the Offered Certificates" above) and the period during which principal payments
would be received with respect to each Class of Offered Certificates (other
than the Class X Certificates) under the Modeling Assumptions. Purchase prices
set forth below for each such Class of Offered Certificates are expressed in
32nds (i.e., 99.16 means 99 16/32%) as a percentage of the initial Certificate
Principal Amount of such Class of Certificates, before adding accrued interest.
The yields set forth in the following tables were calculated by
determining the monthly discount rates which, when applied to the assumed
stream of cash flows to be paid on each Class of Offered Certificates (other
than the Class X Certificates), would cause the discounted present value of
such assumed stream of cash flows as of the Closing Date to equal the assumed
purchase prices, plus accrued interest at the applicable Pass-Through Rate as
described in the Modeling Assumptions, from and including October 1, 1998 to
but excluding the Closing Date, and converting such monthly rates to
semi-annual corporate bond equivalent rates. Such calculation does not take
into account variations that may occur in the interest rates at which investors
may be able to reinvest funds received by them as reductions of the Certificate
Principal Amounts of such Classes of Offered Certificates and consequently does
not purport to reflect the return on any investment in such Classes of Offered
Certificates when such reinvestment rates are considered.
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,LAST PRINCIPAL PAYMENT DATE FOR THE CLASS A-1 CERTIFICATES AT THE
SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ -------------- --------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
99.00 6.313% 6.313% 6.314% 6.314% 6.315%
99.08 6.251% 6.251% 6.251% 6.252% 6.253%
99.16 6.189% 6.190% 6.190% 6.190% 6.190%
99.24 6.128% 6.128% 6.128% 6.128% 6.128%
100.00 6.067% 6.067% 6.067% 6.067% 6.066%
100.08 6.006% 6.006% 6.006% 6.005% 6.004%
100.16 5.945% 5.945% 5.945% 5.944% 5.943%
100.24 5.885% 5.884% 5.884% 5.883% 5.881%
101.00 5.824% 5.824% 5.823% 5.823% 5.820%
101.08 5.764% 5.764% 5.763% 5.762% 5.759%
101.16 5.704% 5.704% 5.703% 5.702% 5.699%
101.24 5.645% 5.644% 5.643% 5.642% 5.638%
102.00 5.585% 5.584% 5.584% 5.583% 5.578%
102.08 5.526% 5.525% 5.524% 5.523% 5.518%
102.16 5.467% 5.466% 5.465% 5.464% 5.458%
102.24 5.408% 5.407% 5.406% 5.405% 5.399%
103.00 5.350% 5.348% 5.347% 5.346% 5.339%
Weighted Average Life (yrs.) 5.01 5.00 4.99 4.98 4.93
First Principal Payment Date Nov-98 Nov-98 Nov-98 Nov-98 Nov-98
Last Principal Payment Date Jul-2007 Jun-2007 May-2007 Apr-2007 Jan-2007
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-108
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS A-2 CERTIFICATES AT THE SPECIFIED
CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE-- OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ ---------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
100.00 6.666% 6.666% 6.666% 6.666% 6.665%
100.08 6.630% 6.630% 6.630% 6.629% 6.628%
100.16 6.594% 6.594% 6.593% 6.593% 6.591%
100.24 6.558% 6.557% 6.557% 6.556% 6.554%
101.00 6.522% 6.521% 6.521% 6.520% 6.517%
101.08 6.486% 6.485% 6.485% 6.484% 6.480%
101.16 6.450% 6.449% 6.449% 6.448% 6.443%
101.24 6.414% 6.414% 6.413% 6.412% 6.407%
102.00 6.379% 6.378% 6.377% 6.376% 6.370%
102.08 6.343% 6.343% 6.342% 6.340% 6.334%
102.16 6.308% 6.307% 6.306% 6.305% 6.297%
102.24 6.273% 6.272% 6.271% 6.269% 6.261%
103.00 6.238% 6.237% 6.235% 6.234% 6.225%
103.08 6.203% 6.202% 6.200% 6.198% 6.189%
103.16 6.168% 6.167% 6.165% 6.163% 6.154%
103.24 6.133% 6.132% 6.130% 6.128% 6.118%
104.00 6.098% 6.097% 6.095% 6.093% 6.082%
Weighted Average Life (yrs.) 9.49 9.46 9.43 9.38 9.16
First Principal Payment Date Jul-2007 Jun-2007 May-2007 Apr-2007 Jan-2007
Last Principal Payment Date Oct-2008 Jun-2008 Jun-2008 Jun-2008 Apr-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-109
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS A-3 CERTIFICATES AT THE SPECIFIED
CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ --------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
98.16 6.397% 6.398% 6.399% 6.400% 6.404%
98.24 6.359% 6.360% 6.360% 6.361% 6.364%
99.00 6.321% 6.322% 6.322% 6.323% 6.325%
99.08 6.283% 6.284% 6.284% 6.284% 6.286%
99.16 6.246% 6.246% 6.246% 6.246% 6.247%
99.24 6.208% 6.208% 6.208% 6.208% 6.208%
100.00 6.170% 6.170% 6.170% 6.170% 6.169%
100.08 6.133% 6.133% 6.132% 6.132% 6.130%
100.16 6.096% 6.095% 6.095% 6.094% 6.092%
100.24 6.059% 6.058% 6.057% 6.057% 6.053%
101.00 6.022% 6.021% 6.020% 6.019% 6.015%
101.08 5.985% 5.983% 5.983% 5.982% 5.977%
101.16 5.948% 5.946% 5.946% 5.944% 5.939%
101.24 5.912% 5.910% 5.909% 5.907% 5.901%
102.00 5.875% 5.873% 5.872% 5.870% 5.863%
102.08 5.839% 5.836% 5.835% 5.833% 5.825%
102.16 5.802% 5.800% 5.798% 5.796% 5.788%
Weighted Average Life (yrs.) 8.99 8.91 8.87 8.81 8.57
First Principal Payment Date Nov-98 Nov-98 Nov-98 Nov-98 Nov-98
Last Principal Payment Date Oct-2008 Aug-2008 Jul-2008 Jul-2008 May-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-110
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS B CERTIFICATES AT THE SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
--------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ -------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
99.16 7.096% 7.097% 7.097% 7.097% 7.097%
99.24 7.061% 7.060% 7.060% 7.060% 7.060%
100.00 7.025% 7.024% 7.024% 7.024% 7.024%
100.08 6.989% 6.988% 6.988% 6.988% 6.987%
100.16 6.954% 6.952% 6.952% 6.952% 6.951%
100.24 6.918% 6.916% 6.916% 6.916% 6.914%
101.00 6.883% 6.881% 6.880% 6.880% 6.878%
101.08 6.848% 6.845% 6.845% 6.844% 6.842%
101.16 6.812% 6.809% 6.809% 6.808% 6.806%
101.24 6.777% 6.774% 6.774% 6.773% 6.770%
102.00 6.743% 6.739% 6.738% 6.737% 6.734%
102.08 6.708% 6.703% 6.703% 6.702% 6.698%
102.16 6.673% 6.668% 6.668% 6.667% 6.663%
102.24 6.639% 6.633% 6.633% 6.632% 6.627%
103.00 6.604% 6.599% 6.598% 6.597% 6.592%
103.08 6.570% 6.564% 6.563% 6.562% 6.557%
103.16 6.536% 6.529% 6.529% 6.527% 6.522%
Weighted Average Life (yrs.) 9.97 9.80 9.79 9.75 9.61
First Principal Payment Date Oct-2008 Aug-2008 Jul-2008 Jul-2008 May-2008
Last Principal Payment Date Oct-2008 Aug-2008 Aug-2008 Aug-2008 Jun-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-111
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS C CERTIFICATES AT THE SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED
CPR
------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ --------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
93.00 8.009% 8.019% 8.021% 8.021% 8.030%
93.16 7.931% 7.940% 7.942% 7.942% 7.950%
94.00 7.853% 7.862% 7.863% 7.863% 7.871%
94.16 7.776% 7.784% 7.785% 7.785% 7.792%
95.00 7.700% 7.707% 7.708% 7.708% 7.714%
95.16 7.624% 7.631% 7.631% 7.631% 7.637%
96.00 7.549% 7.554% 7.555% 7.555% 7.560%
96.16 7.474% 7.479% 7.479% 7.479% 7.484%
97.00 7.400% 7.404% 7.404% 7.404% 7.408%
97.16 7.326% 7.329% 7.329% 7.329% 7.332%
98.00 7.252% 7.255% 7.255% 7.255% 7.257%
98.16 7.179% 7.181% 7.181% 7.181% 7.183%
99.00 7.107% 7.108% 7.108% 7.108% 7.109%
99.16 7.035% 7.035% 7.035% 7.035% 7.036%
100.00 6.964% 6.963% 6.963% 6.963% 6.963%
100.16 6.893% 6.891% 6.891% 6.891% 6.890%
101.00 6.822% 6.820% 6.820% 6.820% 6.818%
Weighted Average Life (yrs.) 9.97 9.82 9.80 9.80 9.68
First Principal Payment Date Oct-2008 Aug-2008 Aug-2008 Aug-2008 Jun-2008
Last Principal Payment Date Oct-2008 Sep-2008 Sep-2008 Aug-2008 Jul-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-112
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS D CERTIFICATES AT THE SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
--------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ --------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
89.00 9.112% 9.122% 9.121% 9.123% 9.134%
89.16 9.028% 9.037% 9.036% 9.038% 9.048%
90.00 8.944% 8.953% 8.952% 8.954% 8.963%
90.16 8.861% 8.870% 8.869% 8.870% 8.879%
91.00 8.778% 8.787% 8.786% 8.787% 8.795%
91.16 8.696% 8.704% 8.703% 8.704% 8.711%
92.00 8.615% 8.622% 8.621% 8.622% 8.629%
92.16 8.534% 8.541% 8.540% 8.541% 8.546%
93.00 8.454% 8.460% 8.459% 8.460% 8.465%
93.16 8.374% 8.380% 8.379% 8.380% 8.384%
94.00 8.295% 8.301% 8.300% 8.300% 8.303%
94.16 8.217% 8.222% 8.221% 8.221% 8.223%
95.00 8.139% 8.143% 8.142% 8.142% 8.144%
95.16 8.061% 8.065% 8.065% 8.064% 8.065%
96.00 7.984% 7.988% 7.987% 7.987% 7.987%
96.16 7.908% 7.911% 7.910% 7.910% 7.909%
97.00 7.832% 7.835% 7.834% 7.833% 7.832%
Weighted Average Life (yrs.) 9.97 9.89 9.89 9.86 9.72
First Principal Payment Date Oct-2008 Sep-2008 Sep-2008 Aug-2008 Jul-2008
Last Principal Payment Date Oct-2008 Sep-2008 Sep-2008 Sep-2008 Jul-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-113
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PRINCIPAL PAYMENT
DATE,
LAST PRINCIPAL PAYMENT DATE FOR THE CLASS E CERTIFICATES AT THE SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
--------------------------------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ --------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
83.00 10.177% 10.193% 10.192% 10.190% 10.217%
83.16 10.084% 10.100% 10.099% 10.097% 10.123%
84.00 9.992% 10.007% 10.006% 10.005% 10.029%
84.16 9.901% 9.916% 9.915% 9.913% 9.936%
85.00 9.811% 9.825% 9.824% 9.823% 9.845%
85.16 9.721% 9.735% 9.734% 9.732% 9.753%
86.00 9.632% 9.645% 9.644% 9.643% 9.663%
86.16 9.544% 9.556% 9.555% 9.554% 9.573%
87.00 9.456% 9.468% 9.467% 9.466% 9.484%
87.16 9.369% 9.381% 9.380% 9.378% 9.396%
88.00 9.283% 9.294% 9.293% 9.292% 9.308%
88.16 9.197% 9.208% 9.207% 9.206% 9.221%
89.00 9.112% 9.122% 9.121% 9.120% 9.134%
89.16 9.028% 9.037% 9.036% 9.035% 9.048%
90.00 8.944% 8.953% 8.952% 8.951% 8.963%
90.16 8.861% 8.870% 8.869% 8.867% 8.879%
91.00 8.778% 8.787% 8.786% 8.784% 8.795%
Weighted Average Life (yrs.) 9.97 9.89 9.89 9.89 9.72
First Principal Payment Date Oct-2008 Sep-2008 Sep-2008 Sep-2008 Jul-2008
Last Principal Payment Date Oct-2008 Sep-2008 Sep-2008 Sep-2008 Jul-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-114
<PAGE>
YIELD SENSITIVITY OF THE CLASS X CERTIFICATES
The yield to maturity of the Class X Certificates will be highly sensitive
to the rate and timing of principal payments (including by reason of
prepayments, hyper-amortization, loan extensions, defaults and liquidations)
and losses on or in respect of the Mortgage Loans. Investors in the Class X
Certificates should fully consider the associated risks, including the risk
that an extremely rapid rate of amortizations, prepayment or other liquidation
of the Mortgage Loans could result in the failure of such investors to recoup
fully their initial investments.
The following tables indicate the approximate pre-tax yield to maturity on
a CBE basis, weighted average lives, and first and last payment dates on the
Class X Certificates for the specified CPRs based on the Modeling Assumptions.
It was also assumed that the purchase price of the Class X Certificates is as
specified below, expressed in 32nds (i.e., 4.28 means 4 28/32%) as a percentage
of the initial Notional Amount of such Certificates, plus accrued interest.
The yields set forth in the following tables were calculated by
determining the monthly discount rates that, when applied to the assumed
streams of cash flows to be paid on the Class X Certificates, would cause the
discounted present value of such assumed stream of cash flows to equal the
assumed purchase price thereof, and by converting such monthly rates to
semi-annual corporate bond equivalent rates. Such calculation does not take
into account shortfalls in collection of interest due to prepayments (or other
liquidations) of the Mortgage Loans or the interest rates of which investors
may be able to reinvest funds received by them as distributions on the Class X
Certificates (and, accordingly, does not purport to reflect the return on any
investment in the Class X Certificates when such reinvestment rates are
considered).
The characteristics of the Mortgage Loans may differ from those assumed in
preparing the tables below. In addition, there can be no assurance that the
Mortgage Loans will prepay in accordance with the above assumptions at any of
the rates shown in the tables or at any other particular rate, that the cash
flows on the Class X Certificates will correspond to the cash flows shown
herein or that the aggregate purchase price of the Class X Certificates will be
as assumed. In addition, it is unlikely that the Mortgage Loans will prepay in
accordance with the above assumptions at any of the specified CPRs until
maturity or that all the Mortgage Loans will so prepay at the same rate. Timing
of changes in the rate of prepayments may significantly affect the actual yield
to maturity to investors, even if the average rate of principal prepayments is
consistent with the expectations of investors. Investors must make their own
decisions as to the appropriate prepayment assumption to be used in deciding
whether to purchase Class X Certificates.
S-115
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE), WEIGHTED AVERAGE LIFE, FIRST PAYMENT DATE AND
LAST PAYMENT DATE FOR THE CLASS X CERTIFICATES AT THE SPECIFIED CPRS
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YIELD MAINTENANCE--OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------ --------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
5.00 11.940% 11.846% 11.780% 11.696% 11.340%
5.02 11.615% 11.520% 11.454% 11.369% 11.011%
5.04 11.296% 11.201% 11.134% 11.048% 10.688%
5.06 10.984% 10.888% 10.820% 10.734% 10.371%
5.08 10.678% 10.581% 10.513% 10.426% 10.061%
5.10 10.378% 10.280% 10.212% 10.124% 9.756%
5.12 10.083% 9.985% 9.916% 9.828% 9.458%
5.14 9.794% 9.695% 9.626% 9.538% 9.165%
5.16 9.511% 9.411% 9.342% 9.253% 8.877%
5.18 9.233% 9.132% 9.062% 8.973% 8.595%
5.20 8.959% 8.858% 8.788% 8.698% 8.318%
5.22 8.691% 8.589% 8.518% 8.428% 8.046%
5.24 8.427% 8.325% 8.254% 8.163% 7.779%
5.26 8.168% 8.065% 7.994% 7.902% 7.516%
5.28 7.914% 7.810% 7.738% 7.646% 7.258%
5.30 7.663% 7.559% 7.487% 7.394% 7.004%
6.00 7.417% 7.312% 7.240% 7.147% 6.755%
Weighted Average Life (yrs.) 9.34 9.28 9.25 9.22 9.04
First Principal Payment Date Nov-98 Nov-98 Nov-98 Nov-98 Nov-98
Last Principal Payment Date Sep-2019 Sep-2019 Sep-2019 Sep-2019 Sep-2019
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
Notwithstanding the assumed prepayment rates reflected in the preceding
tables in this "Yield, Prepayment and Maturity Considerations" section, it is
highly unlikely that the Mortgage Loans will be prepaid according to one
particular pattern. For this reason and because the timing of principal
payments is critical to determining weighted average lives, the weighted
average lives of the Offered Certificates are likely to differ from those shown
in the tables, even if all of the Mortgage Loans prepay at the indicated
percentages of CPR or prepayment scenario over any given time period or over
the entire life of the Offered Certificates.
There can be no assurance that the Mortgage Loans will prepay at any
particular rate. Moreover, the various remaining terms to maturity of the
Mortgage Loans could produce slower or faster principal distributions than
indicated in the preceding tables at the various percentages of CPR specified,
even if the weighted average remaining term to maturity of the Mortgage Loans
is as assumed. Investors are urged to make their investment decisions based on
their determinations as to anticipated rates of prepayment under a variety of
scenarios.
For additional considerations relating to the yield on the Certificates,
see "Yield Considerations" in the Prospectus.
S-116
<PAGE>
THE POOLING AGREEMENT
GENERAL
The Certificates will be issued pursuant to a Pooling and Servicing
Agreement to be dated as of October 11, 1998 (the "Pooling Agreement"), by and
among the Seller, the Master Servicer, the Special Servicer, the Trustee, the
Fiscal Agent and the Responsible Parties.
Reference is made to the Prospectus for important information in addition
to that set forth herein regarding the terms of the Pooling Agreement and terms
and conditions of the Offered Certificates. The Seller will provide to a
prospective or actual holder of an Offered Certificate without charge, upon
written request, a copy (without exhibits) of the Pooling Agreement. Requests
should be addressed to GS Mortgage Securities Corporation II, 85 Broad Street,
New York, New York 10004; Attention: Rolf Edwards.
ASSIGNMENT OF THE MORTGAGE LOANS
On the Closing Date, the Seller will sell, transfer or otherwise convey,
assign or cause the assignment of the Mortgage Loans, without recourse, to the
Trustee for the benefit of the holders of Certificates. On or prior to the
Closing Date, the Seller will cause to be delivered to the Trustee (other than
the Americold Pool Loan, with respect to items (ii) - (vi) below, which have
previously been delivered pursuant to the Series 1998-GL II Pooling Agreement),
with respect to each Mortgage Loan, (i) the original Mortgage Note endorsed
without recourse to the order of the Trustee, as trustee; (ii) the original
Mortgage(s) thereof; (iii) the assignment(s) of the Mortgage(s) in recordable
form in favor of the Trustee; (iv) to the extent not contained in the
Mortgages, the original assignment of leases and rents; (v) if applicable, the
original assignment of assignment of leases and rents to the Trustee; (vi)
where applicable, a copy of the UCC-1 financing statements, if any, including
UCC-3 assignments; (vii) the original lender's title insurance policy (or
marked commitments to insure); and (viii) collateral assignments of management
agreements and such other loan documents as are in the possession of the
Seller, including original assignments thereof to the Trustee, unless the
Seller is delayed in making such delivery by reason of the fact that such
documents shall not have been returned by the appropriate recording office in
which case it shall notify the Trustee in writing of such delay and shall
deliver such documents to the Trustee, with copies of them to the Master
Servicer, promptly upon the Seller's receipt thereof.
The Trustee, or any custodian for the Trustee, will be required to hold
such documents in trust for the benefit of the holders of Certificates. The
Trustee is obligated to review such documents for each Mortgage Loan (in
certain cases only to the extent such documents are identified by the Seller as
being part of the related mortgage file) within 45 days after the later of
delivery or execution of the Pooling Agreement and report any missing documents
or certain types of defects therein to the Seller and the applicable
Responsible Party.
SERVICING OF THE MORTGAGE LOANS; COLLECTION OF PAYMENTS
The Pooling Agreement requires each of the Master Servicer and the Special
Servicer to service and administer the Mortgage Loans on behalf of the Trust
Fund in the best interests of and for the benefit of all of the holders of
Certificates (as determined by the Master Servicer or the Special Servicer in
the exercise of its good faith and reasonable judgment) in accordance with
applicable law, the terms of the Pooling Agreement and the Mortgage Loans
(including, with respect to the Americold Pool Loan, the Co-Lender Agreement),
and to the extent not inconsistent with the foregoing, in the same manner in
which, and with the same care, skill and diligence as is normal and usual in
its general mortgage servicing and REO Property management activities on behalf
of third parties or on behalf of itself, whichever is higher, with respect to
mortgage loans and REO properties that are comparable to the Mortgaged
Properties, and in each event with a view to the timely collection of all
scheduled payments of principal and interest under the Mortgage Loans or, if a
Mortgage Loan comes into and continues in default and if, in the good faith and
reasonable judgment of the Special Servicer, no satisfactory
S-117
<PAGE>
arrangements can be made for the collection of the delinquent payments, the
maximization of the recovery on such Mortgage Loan to the Certificateholders
(as a collective whole) on a present value basis (the relevant discounting of
anticipated collection that will be distributable to Certificateholders to be
performed at the related Net Mortgage Rate). Such servicing is required to be
undertaken without regard to (i) any known relationship that the Master
Servicer or the Special Servicer, or an affiliate of the Master Servicer or the
Special Servicer, as applicable, may have with the borrowers or any other
parties to the Pooling Agreement; (ii) the ownership of any Certificate by the
Master Servicer or the Special Servicer or any affiliate of the Master Servicer
or the Special Servicer, as applicable; (iii) the Master Servicer's or the
Special Servicer's obligation, as applicable, to make Advances; or (iv) the
right of the Master Servicer (or any affiliate thereof) or the Special Servicer
(or any affiliate thereof), as the case may be, to receive reimbursement of
costs, or the sufficiency of any compensation for its services under the
Pooling Agreement or with respect to any particular transaction (the "Servicing
Standard").
The Master Servicer and the Special Servicer are permitted, at their own
expense, to employ subservicers, agents or attorneys in performing any of their
respective obligations under the Pooling Agreement. Notwithstanding any
subservicing agreement, except as otherwise described in this Prospectus
Supplement with respect to the Americold Pool Loan, the Master Servicer or
Special Servicer, as applicable, shall remain primarily liable to the Trustee
and Certificateholders for the servicing and administering of the Mortgage
Loans in accordance with the provisions of the Pooling Agreement without
diminution of such obligation or liability by virtue of such subservicing
agreement. Any subservicing agreement entered into by the Master Servicer or
Special Servicer, as applicable, will provide that it may be assumed or
terminated by the Trustee, or any successor Master Servicer or Special
Servicer, if the Trustee, or any successor Master Servicer or Special Servicer,
has assumed the duties of the Master Servicer or Special Servicer,
respectively. The Pooling Agreement provides, however, that none of the Master
Servicer, the Special Servicer, or any of their respective directors, officers,
employees or agents shall have any liability to the Trust Fund or the
Certificateholders for taking any action or refraining from taking any action
in good faith, or for errors in judgment. The foregoing provision would not
protect the Master Servicer or the Special Servicer for the breach of its
representations or warranties in the Pooling Agreement, the breach of certain
specified covenants therein or any liability by reason of willful misconduct,
bad faith, fraud or negligence in the performance of its duties or by reason of
its reckless disregard of its obligations or duties under the Pooling
Agreement. The Trustee or any other successor Master Servicer assuming the
obligations of the Master Servicer under the Pooling Agreement will be entitled
to the compensation to which the Master Servicer would have been entitled after
the date of the assumption of the Master Servicer's obligations. If no
successor Master Servicer can be obtained to perform such obligations for such
compensation, additional amounts payable to such successor Master Servicer will
be treated as Realized Losses.
Under the terms of the Co-Lender Agreement, GMACCM, as the current
servicer for the Series 1998-GL II Certificates, (in such capacity, the "Series
1998-GL II Master Servicer") will service both the Americold Pool Loan and the
Other Americold Pool Loan, and GMACCM, as the current special servicer of
Series 1998-GL II (in such capacity, the "Series 1998-GL II Special Servicer")
will, to the extent necessary, specially service both the Americold Pool Loan
and the Other Americold Pool Loan, in each case under the terms of the
Co-Lender Agreement and the pooling and servicing agreement related to Series
1998-GL II (the "Series 1998-GL II Pooling Agreement"). The servicing
provisions in the Series 1998-GL II Pooling Agreement will be substantially
similar to those in the Pooling Agreement, except as otherwise described in
this Prospectus Supplement. The Master Servicer will therefore not directly
service the Americold Pool Loan (except that the Master Servicer will be
required to advance delinquent payments and a pro rata portion of property
protection expenses) and neither the Special Servicer nor the Controlling Class
will have the ability to direct any foreclosure or workout of the Americold
Pool Loan. Pursuant to the Co-Lender Agreement and the Series 1998-GL II
Pooling Agreement, the Series 1998-GL II Master Servicer and Series 1998-GL II
Special Servicer will be required to service the Americold Pool Loan and the
Other Americold Pool Loan generally as described herein, but in the best
interests of the holders of the Series 1998-GL II Certificates.
The Master Servicer initially will be responsible for the servicing and
administration of the entire Mortgage Pool. The duties of the Special Servicer
relate to Specially Serviced Mortgage Loans and to
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<PAGE>
any REO Property. The Pooling Agreement will define a "Specially Serviced
Mortgage Loan" to include any Mortgage Loan (other than the Americold Pool
Loan) with respect to which: (i) the related borrower has not made two
consecutive Monthly Payments (and has not cured at least one such delinquency
by the next due date under the related Mortgage Loan); (ii) the related
borrower has expressed to the Master Servicer an inability to pay or a hardship
in paying the Mortgage Loan in accordance with its terms; (iii) the Master
Servicer has received notice that the related borrower has become the subject
of any bankruptcy, insolvency or similar proceeding, admitted in writing the
inability to pay its debts as they come due or made an assignment for the
benefit of creditors; (iv) the Master Servicer has received notice of a
foreclosure or threatened foreclosure of any lien on the Mortgaged Property
securing such Mortgage Loan; (v) a default of which the Master Servicer has
notice (other than a failure by the related borrower to pay principal or
interest) and which materially and adversely affects the interests of the
Certificateholders has occurred and remains unremedied for the applicable grace
period specified in the Mortgage Loan (or, if no grace period is specified, 60
days); provided, that a default requiring a Property Advance will be deemed to
materially and adversely affect the interests of Certificateholders; or (vi) in
the opinion of the Master Servicer (consistent with the Servicing Standard) a
default under a Mortgage Loan is imminent and such Mortgage Loan deserves the
attention of the Special Servicer; provided however, that a Mortgage Loan will
cease to be a Specially Serviced Mortgage Loan (a) with respect to the
circumstances described in clause (i) above, when the borrower thereunder has
brought the Mortgage Loan current and thereafter made three consecutive full
and timely monthly payments, including pursuant to any workout of the Mortgage
Loan, (b) with respect to the circumstances described in clause (ii), (iii),
(iv) and (vi) above, when such circumstances cease to exist in the good faith
judgment of the Master Servicer, or (c) with respect to the circumstances
described in clause (v) above, when such default is cured; provided, in any
case, that at that time no circumstance exists (as described above) that would
cause the Mortgage Loan to continue to be characterized as a Specially Serviced
Mortgage Loan. With respect to any Specially Serviced Mortgage Loan the Master
Servicer will transfer its servicing responsibilities to the Special Servicer,
but will continue to receive payments on such Mortgage Loan (including amounts
collected by the Special Servicer), to make certain calculations with respect
to such Mortgage Loan and to make remittances and prepare certain reports to
the Certificateholders with respect to such Mortgage Loan and upon the curing
of such events the servicing of such Mortgage Loan will be returned to the
Master Servicer.
The determination that the Americold Pool Loan and the Other Americold
Pool Loan have become Specially Serviced Mortgage Loans will be determined in
accordance with the terms of the Series 1998-GL II Pooling Agreement. Likewise,
the Americold Pool Loan and the Other Americold Pool Loan will cease being a
Specially Serviced Mortgage Loan in accordance with the terms of Series 1998-GL
II Pooling Agreement.
The Pooling Agreement requires the Master Servicer or the Special
Servicer, as applicable, to make reasonable efforts to collect all payments
called for under the terms and provisions of the Mortgage Loans consistent with
the Servicing Standard. Consistent with the above, the Master Servicer or the
Special Servicer may, in its discretion, waive any late payment charge or
penalty fee in connection with any delinquent Monthly Payment with respect to
any Mortgage Loan. For any Mortgage Loan with respect to which, under the terms
of the related loan documents, the mortgagee may, in its discretion, apply
insurance proceeds, condemnation awards or escrowed funds to the prepayment of
such loan prior to the expiration of the related prepayment lockout period, the
Master Servicer or Special Servicer, as applicable, may only require such a
prepayment if the Master Servicer or Special Servicer, as applicable, has
determined in accordance with the Servicing Standard that such prepayment is in
the best interest of all Certificateholders. The Master Servicer and the
Special Servicer will be directed in the Pooling Agreement not to take any
enforcement action other than requests for payment with respect to payment of
Excess Interest or principal in excess of the principal component of the
Monthly Payment prior to the final maturity date. The Master Servicer will also
be permitted to forgive the payment of Excess Interest under the circumstances
described under "--Realization Upon Mortgage Loans --Modifications, Waivers and
Amendments" below. With respect to any defaulted Mortgage Loan, subject to the
restrictions set forth below under "--Realization Upon Mortgage
Loans--Modifications, Waivers and Amendments," the Special Servicer will be
entitled to pursue any of the remedies set forth
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in the related Mortgage, including the right to acquire, through foreclosure,
all or any of the Mortgaged Properties securing such Mortgage Loan. The Special
Servicer may elect to extend a Specially Serviced Mortgage Loan (subject to
conditions described herein) notwithstanding its decision to foreclose on
certain of the Mortgaged Properties.
ADVANCES
The Master Servicer will be obligated to advance, on the Business Day
immediately preceding a Distribution Date (the "Master Servicer Remittance
Date"), an amount (each such amount, a "P&I Advance") equal to the total or any
portion of the Monthly Payment (with interest calculated at the Net Mortgage
Rate plus the Trustee Fee Rate) on a Mortgage Loan that was delinquent as of
the close of business on the immediately preceding Due Date (and which
delinquent payment has not been cured as of the Master Servicer Remittance
Date), or, with respect to a Mortgage Loan for which the Special Servicer has
elected to extend the payments as described in "--Realization Upon Mortgage
Loans; Modifications, Waivers and Amendments" herein, the amount equal to the
Monthly Payment (with interest calculated at the Net Mortgage Rate plus the
Trustee Fee Rate) that was due prior to the maturity date; provided, however,
that the Master Servicer will not be required to make a P&I Advance to the
extent it determines that such Advance (including accrued and unpaid interest
thereon) would not ultimately be recoverable out of related late payments, net
insurance proceeds, net condemnation proceeds, net liquidation proceeds and
certain other collections with respect to such Mortgage Loan as to which such
Advances were made. The Master Servicer will not be required or permitted to
make an advance for Balloon Payments, Excess Interest, Default Interest or
prepayment premiums or yield maintenance. The amount required to be advanced by
the Master Servicer with respect to any Distribution Date in respect of
scheduled payments on Mortgage Loans that have been subject to an Appraisal
Reduction Event will equal (i) the amount required to be advanced by the Master
Servicer without giving effect to such Appraisal Reduction Amounts less (ii) an
amount equal to the product of (x) the amount required to be advanced by the
Master Servicer in respect to delinquent payments of interest without giving
effect to such Appraisal Reduction Amounts, and (y) a fraction, the numerator
of which is the Appraisal Reduction Amount with respect to such Mortgage Loan
and the denominator of which is the Stated Principal Balance as of the last day
of the related Collection Period.
The Master Servicer will also be obligated (subject to the limitations
described herein) to make cash advances ("Property Advances" and, together with
P&I Advances, "Advances") to pay delinquent real estate taxes, ground lease
rent payments, assessments and hazard insurance premiums and to cover other
similar costs and expenses necessary to preserve the priority of or enforce the
related Mortgage or to maintain such Mortgaged Property. In addition, the
Special Servicer may be obligated to make certain Property Advances with
respect to Specially Serviced Mortgage Loans.
The obligation of the Master Servicer, the Special Servicer, the Trustee
or the Fiscal Agent, as applicable, to make Advances with respect to any
Mortgage Loan pursuant to the Pooling Agreement continues through the
foreclosure of such Mortgage Loan and until the liquidation of such Mortgage
Loan or related Mortgaged Properties. Advances are intended to provide a
limited amount of liquidity, not to guarantee or insure against losses. None of
the Master Servicer, the Special Servicer, the Trustee or the Fiscal Agent will
be required to make any Advance that it determines in its good faith business
judgment will not be ultimately recoverable by the Master Servicer, the Special
Servicer, the Trustee or the Fiscal Agent, as applicable, out of related late
payments, net insurance proceeds, net condemnation proceeds, net liquidation
proceeds and certain other collections with respect to the Mortgage Loan as to
which such Advances were made. In addition, if the Master Servicer, the Special
Servicer, the Trustee or the Fiscal Agent, as applicable, determines in its
good faith business judgment that any Advance previously made will not be
ultimately recoverable from the foregoing sources, then the Master Servicer,
the Special Servicer, the Trustee or the Fiscal Agent, as applicable, will be
entitled to be reimbursed for such Advance, plus interest thereon at the
Advance Rate, out of amounts payable on or in respect of all of the Mortgage
Loans prior to distributions on the Certificates. Any such judgment or
determination with respect to the recoverability of Advances must be evidenced
by an officers' certificate delivered to the Trustee (or in the case of the
Trustee or Fiscal Agent, the Seller) setting forth such judgment or
determination of nonrecoverability and the procedures and considerations of the
Master Servicer, the
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Special Servicer, the Trustee or the Fiscal Agent, as applicable, forming the
basis of such determination (including but not limited to information selected
by the Master Servicer or the Special Servicer in its good faith discretion
such as related income and expense statements, rent rolls, occupancy status,
property inspections, inquiries by the Master Servicer, the Special Servicer,
the Trustee or the Fiscal Agent, as applicable, and an independent appraisal
performed in accordance with MAI standards and methodologies on the applicable
Mortgaged Properties).
To the extent the Master Servicer or Special Servicer fails to make an
Advance it is required to make under the Pooling Agreement, the Trustee,
subject to a determination of recoverability, will be required to make such
required Advance or, in the event the Trustee fails to make such Advance, the
Fiscal Agent, subject to a determination of recoverability, will make such
Advance, in each case pursuant to the terms of the Pooling Agreement. The
Trustee and the Fiscal Agent (or the Master Servicer with respect to a Property
Advance required to be made by the Special Servicer) will be entitled to rely
conclusively on any non-recoverability determination of the Master Servicer (or
the Special Servicer). See "--Duties of the Trustee" and "--Duties of the
Fiscal Agent" below.
The Master Servicer, the Special Servicer, the Trustee or the Fiscal
Agent, as applicable, will be entitled to reimbursement for any Advance made by
it equal to the amount of such Advance and interest accrued thereon at the
Advance Rate from (i) late payments on the Mortgage Loan by the borrower, (ii)
insurance proceeds, condemnation proceeds or liquidation proceeds from the sale
of the defaulted Mortgage Loan or the related Mortgaged Property or (iii) upon
determining in good faith that such Advance or interest is not recoverable in
the manner described in the preceding two clauses, from any other amounts from
time to time on deposit in the Collection Account.
The Master Servicer, the Special Servicer, the Trustee and the Fiscal
Agent will each be entitled to receive interest on Advances at the Prime Rate
(the "Advance Rate"), compounded monthly, as of each Master Servicer Remittance
Date and the Master Servicer will be authorized to pay itself, the Special
Servicer, the Trustee or the Fiscal Agent, as applicable, such interest monthly
from general collections with respect to all of the Mortgage Loans prior to any
payment to holders of Certificates. If the interest on such Advance is not
recovered from Default Interest on such Mortgage Loan, a shortfall will result
which will have the same effect as a Realized Loss. The "Prime Rate" is the
rate, for any day, set forth as such in The Wall Street Journal, New York
edition.
ACCOUNTS
COLLECTION ACCOUNT. The Master Servicer will be required to deposit
amounts collected in respect of the Mortgage Loans into a segregated account
(the "Collection Account") established pursuant to the Pooling Agreement.
DISTRIBUTION ACCOUNTS. The Trustee will be required to establish and
maintain two segregated accounts (the "Lower-Tier Distribution Account" and the
"Upper-Tier Distribution Account") in the name of the Trustee for the benefit
of the holders of Certificates entitled to distributions from them. With
respect to each Distribution Date, the Master Servicer will be required to
disburse from the Collection Account and deposit into the Lower-Tier
Distribution Account, to the extent of funds on deposit in the Collection
Account, on the Master Servicer Remittance Date an aggregate amount of
immediately available funds equal to the sum of (i) the Available Funds, and
(ii) the portion of the Servicing Compensation representing the Trustee Fee. In
addition, the Master Servicer will be required to deposit all P&I Advances into
the Lower-Tier Distribution Account on the related Master Servicer Remittance
Date. To the extent the Master Servicer fails to do so, the Trustee or the
Fiscal Agent will deposit all P&I Advances into the Lower-Tier Distribution
Account as described herein. On each Distribution Date, the Trustee (i) will be
required to withdraw amounts distributable on such date on the Regular
Certificates and on the Class R Certificates (which are expected to be zero)
from the Lower-Tier Distribution Account and deposit such amounts in the
Upper-Tier Distribution Account. See "Description of the Offered
Certificates--Distributions" herein.
INTEREST RESERVE ACCOUNT. The Trustee will be required to establish and
maintain an "Interest Reserve Account" in the name of the Trustee for the
benefit of the holders of the Certificates. On each
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Master Servicer Remittance Date occurring in February and on any Master
Servicer Remittance Date occurring in any January which occurs in a year that
is not a leap year, the Master Servicer will be required to deposit, in respect
of each Mortgage Loan which accrues interest on the basis of a 360-day year and
the actual number of days in the related month, an amount equal to one day's
interest at the related Mortgage Rate on the respective Stated Principal
Balance, as of the Due Date in the month preceding the month in which such
Master Servicer Remittance Date occurs, of each such Mortgage Loan, to the
extent a Monthly Payment or P&I Advance is made in respect thereof (all amounts
so deposited in any consecutive January (if applicable) and February, "Withheld
Amounts"). On each Master Servicer Remittance Date occurring in March, the
Trustee will be required to withdraw from the Interest Reserve Account an
amount equal to the Withheld Amounts from the preceding January (if applicable)
and February, if any, and deposit such amount into the Lower-Tier Distribution
Account.
The Trustee will be required to also establish and maintain one or more
segregated accounts for the "Excess Interest Distribution Account" in the name
of the Trustee for the benefit of the Certificateholders entitled to
distributions from it, and the "Class Q Distribution Account" in the name of
the Trustee for the benefit of the holders of the Class Q Certificates. The
Trustee will also be required to establish and maintain the Reserve Account in
the circumstances described under "Description of the Offered
Certificates--Distributions--Reserve Account and Reinvestment Letter of Credit"
herein.
The Collection Account, the Lower-Tier Distribution Account, the
Upper-Tier Distribution Account, the Interest Reserve Account, the Excess
Interest Distribution Account, the Class Q Distribution Account and the Reserve
Account will be held in the name of the Trustee (or the Master Servicer on
behalf of the Trustee) on behalf of the holders of Certificates and the Master
Servicer will be authorized to make withdrawals from the Collection Account and
the Interest Reserve Account. Each of the Collection Account, any REO Account,
the Lower-Tier Distribution Account, the Upper-Tier Distribution Account, the
Interest Reserve Account, any escrow account, the Excess Interest Distribution
Account, the Class Q Distribution Account and the Reserve Account will be
either (i) (A) an account maintained with either a federal or state chartered
depository institution or trust company the long term unsecured debt
obligations (or short-term unsecured debt obligations if the account holds
funds for less than 30 days) or commercial paper of which are rated by each of
the Rating Agencies in its highest rating category at all times (or in the case
of the REO Account, Collection Account, Interest Reserve Account, Escrow
Account and the Reserve Account, the long term unsecured debt obligations (or
short-term unsecured debt obligations if the account holds funds for less than
30 days) of which are rated at least "AA-" by each Rating Agency or, if
applicable, the short term rating equivalent thereof) or (B) as to which the
Master Servicer or the Trustee, as applicable, has received written
confirmation from each of the Rating Agencies that holding funds in such
account would not cause any Rating Agency to qualify, withdraw or downgrade any
of its ratings on the Certificates, or (ii) a segregated trust account or
accounts maintained with a federal or state chartered depository institution or
trust company acting in its fiduciary capacity (an "Eligible Bank").
Amounts on deposit in the Collection Account, the Interest Reserve
Account, any REO Account and the Reserve Account may be invested in certain
United States government securities and other high-quality investments
specified in the Pooling Agreement ("Permitted Investments"). Interest or other
income earned on funds in the Collection Account will be paid to the Master
Servicer as additional servicing compensation and interest or other income
earned on funds in any REO Account will be payable to the Special Servicer.
Interest or other income earned on funds in the Interest Reserve Account will
be deposited into the Collection Account. Interest or other income on funds in
the Reserve Account will be applied as described under "Description of the
Offered Certificates--Distributions--Reserve Account and Reinvestment Letter of
Credit" herein.
WITHDRAWALS FROM THE COLLECTION ACCOUNT
The Master Servicer may make withdrawals from the Collection Account for
the following purposes, to the extent permitted and in the priorities provided
in the Pooling Agreement: (i) to remit on or before each Master Servicer
Remittance Date (A) to the Lower-Tier Distribution Account an amount equal to
the sum of (I) Available Funds and any prepayment premiums or yield maintenance
charges and (II) the
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Trustee Fee for the related Distribution Date, (B) to the Class Q Distribution
Account an amount equal to the Net Default Interest and any payments in respect
of the AIMCO Multifamily Pool Conditional Debt received in the related
Collection Period, if any, (C) to the Excess Interest Distribution Account an
amount equal to the Excess Interest received in the related Collection Period,
if any, and (D) to the Interest Reserve Account an amount required to be
withheld as described above under "--Accounts--Interest Reserve Account;" (ii)
to pay or reimburse the Master Servicer, the Special Servicer, the Trustee or
the Fiscal Agent, as applicable, pursuant to the terms of the Pooling Agreement
for Advances made by any of them and interest on Advances, the Master
Servicer's, the Trustee's or the Fiscal Agent's right, as applicable, to
reimbursement for items described in this clause (ii) being limited as
described above under "--Advances;" (iii) to pay on or before each Master
Servicer Remittance Date to the Master Servicer and the Special Servicer as
compensation, the aggregate unpaid Servicing Compensation (not including the
portion of the Servicing Compensation representing the Trustee Fee) in respect
of the immediately preceding Interest Accrual Period; (iv) to pay on or before
each Distribution Date to any person with respect to each Mortgage Loan or REO
Property that has previously been purchased or repurchased by such person
pursuant to the Pooling Agreement, all amounts received thereon during the
related Collection Period and subsequent to the date as of which the amount
required to effect such purchase or repurchase was determined; (v) to the
extent not reimbursed or paid pursuant to any of the above clauses, to
reimburse or pay the Master Servicer, the Special Servicer, the Trustee, the
Fiscal Agent and/or the Seller for unpaid Servicing Compensation (in the case
of the Master Servicer, the Special Servicer or the Trustee), and certain other
unreimbursed expenses incurred by such person pursuant to and to the extent
reimbursable under the Pooling Agreement and to satisfy any indemnification
obligations of the Trust Fund under the Pooling Agreement; (vi) to pay to the
Trustee amounts requested by it to pay any taxes imposed on the Upper-Tier
REMIC or the Lower-Tier REMIC; (vii) to withdraw any amount deposited into the
Collection Account that was not required to be deposited therein; and (viii) to
clear and terminate the Collection Account pursuant to a plan for termination
and liquidation of the Trust Fund.
ENFORCEMENT OF "DUE-ON-SALE" AND "DUE-ON-ENCUMBRANCE" CLAUSES
Subject to certain exceptions in the case of certain of the Mortgage Loans
(see "Description of the Mortgage Pool" herein), the Mortgage Loans contain
provisions in the nature of "due-on-sale" clauses, which by their terms (a)
provide that the Mortgage Loans shall, at the mortgagee's option, become due
and payable upon the sale or other transfer of an interest in the related
Mortgaged Property or (b) provide that the Mortgage Loans may not be assumed
without the consent of the related mortgagee in connection with any such sale
or other transfer. The Master Servicer or the Special Servicer, with respect to
Specially Serviced Mortgage Loans, will not be required to enforce such
due-on-sale clauses and in connection therewith will not be required to (i)
accelerate payments thereon or (ii) withhold its consent to such an assumption
if (x) such provision is not exercisable under applicable law or such provision
is reasonably likely to result in meritorious legal action by the borrower or
(y) the Master Servicer or the Special Servicer, as applicable, determines, in
accordance with the Servicing Standard, that granting such consent would be
likely to result in a greater recovery, on a present value basis (discounting
at the related Net Mortgage Rate), than would enforcement of such clause. If
the Master Servicer or the Special Servicer, as applicable, determines that
granting such consent would be likely to result in a greater recovery, the
Master Servicer or the Special Servicer, as applicable, is authorized to take
or enter into an assumption agreement from or with the proposed transferee as
obligor thereon, provided that (a) the proposed transfer is in compliance with
the terms of the related Mortgage and (b) the Master Servicer or the Special
Servicer, as applicable, has received written confirmation from each Rating
Agency that such assumption or substitution would not, in and of itself, cause
a downgrade, qualification or withdrawal of any of the then current ratings
assigned to the Certificates.
Subject to certain exceptions in the case of certain of the Mortgage Loans
(see "Description of the Mortgage Pool"), the Mortgage Loans contain provisions
in the nature of a "due-on-encumbrance" clause which by their terms (a) provide
that the Mortgage Loans shall, at the mortgagee's option, become due and
payable upon the creation of any lien or other encumbrance on the related
Mortgaged Property, or (b) require the consent of the related mortgagee to the
creation of any such lien or other encumbrance
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on the related Mortgaged Property. The Master Servicer or the Special Servicer,
as applicable, will not be required to enforce such due-on-encumbrance clauses
and in connection therewith will not be required to (i) accelerate payments
thereon or (ii) withhold its consent to such lien or encumbrance if the Master
Servicer or the Special Servicer, as applicable, (x) determines, in accordance
with the Servicing Standard, that such enforcement would not be in the best
interests of the Trust Fund and (y) receives prior written confirmation from
each Rating Agency that granting such consent would not, in and of itself,
cause a downgrade, qualification or withdrawal of any of the then current
ratings assigned to the Certificates.
See "Certain Legal Aspects of the Mortgage Loans--Enforceability of
Certain Provisions" in the Prospectus.
INSPECTIONS
The Master Servicer (or with respect to any Specially Serviced Mortgage
Loan, the Special Servicer) is required to inspect or cause to be inspected
each Mortgaged Property at such times and in such manner as are consistent with
the Servicing Standards, but in any event (i) the Master Servicer is required
to inspect each Mortgaged Property with an Allocated Loan Amount of (a)
$5,000,000 or more at least once every 12 months and (b) less than $5,000,000
at least once every 24 months, in each case commencing in October 1999 (or at
such other times, provided each Rating Agency has confirmed in writing to the
Master Servicer that such schedule will not result in the withdrawal,
downgrading or qualification of the then current ratings assigned to the
Certificates) and (ii) if the Mortgage Loan (a) becomes a Specially Serviced
Mortgage Loan, (b) is delinquent for 60 days or (c) has a debt service coverage
ratio of less than 1.0x, the Master Servicer (or with respect to Specially
Serviced Mortgage Loans, the Special Servicer) is required to inspect the
related Mortgaged Properties as soon as practicable and thereafter at least
every twelve months until such condition ceases to exist. The cost of any such
inspection shall be borne by the Master Servicer unless the related Mortgage
Loan is a Specially Serviced Mortgage Loan, in which case such cost will be
borne by the Trust Fund.
EVIDENCE AS TO COMPLIANCE
The Pooling Agreement requires that each of the Master Servicer and the
Special Servicer cause a nationally recognized firm of independent public
accountants (which may render other services to the Master Servicer), which is
a member of the American Institute of Certified Public Accountants, to furnish
to the Trustee on or before April 30 of each year, beginning April 30, 1999, a
report which expresses a statement to the effect that the assertion of
management of the Master Servicer or the Special Servicer that it has complied
with certain minimum mortgage loan servicing standards identified in the
Uniform Single Attestation Program for Mortgage Bankers established by the
Mortgage Bankers Association of America over the servicing of mortgage loans
including the Mortgage Loans for the preceding calendar year is fairly stated
in all material respects, based on an examination, conducted substantially in
compliance with the standards established by the American Institute of
Certified Public Accountants, except for such exceptions and other
qualifications stated in such report.
The Pooling Agreement also requires each of the Master Servicer and the
Special Servicer to deliver to the Trustee, on or before April 30 of each year,
beginning April 30, 1999, an officers' certificate of the Master Servicer or
the Special Servicer, as the case may be, stating that, to the best of each
such officer's knowledge, the Master Servicer or the Special Servicer, as the
case may be, has fulfilled its obligations under the Pooling Agreement in all
material respects throughout the preceding calendar year or, if there has been
a default, specifying each default known to each such officer and the nature
and status thereof, that it has maintained an effective internal control system
over the servicing of mortgage loans including the Mortgage Loans and the
Master Servicer or the Special Servicer, as the case may be, has received no
notice regarding qualification, or challenging the status, of either Trust
REMIC as a REMIC from the Internal Revenue Service or any other governmental
agency or body or, if it has received any such notice, specifying the details
thereof.
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CERTAIN MATTERS REGARDING THE SELLER, THE MASTER SERVICER AND THE SPECIAL
SERVICER
Each of the Master Servicer and the Special Servicer may assign its rights
and delegate its duties and obligations under the Pooling Agreement with the
consent of the Seller, provided that certain conditions are satisfied including
obtaining the consent of the Trustee and written confirmation of each of the
Rating Agencies that such assignment or delegation will not cause a
qualification, withdrawal or downgrading of the then current ratings assigned
to the Certificates. The Pooling Agreement provides that the Master Servicer or
the Special Servicer, as the case may be, may not otherwise resign from its
obligations and duties as Master Servicer or the Special Servicer, as the case
may be, thereunder, except upon the determination that performance of its
duties is no longer permissible under applicable law and provided that such
determination is evidenced by an opinion of counsel delivered to the Trustee.
No such resignation may become effective until a successor Master Servicer or
Special Servicer has assumed the obligations of the Master Servicer or the
Special Servicer under the Pooling Agreement. The Trustee or any other
successor Master Servicer or Special Servicer assuming the obligations of the
Master Servicer or the Special Servicer under the Pooling Agreement will be
entitled to the compensation to which the Master Servicer or the Special
Servicer would have been entitled after the date of assumption of such
obligations. If no successor Master Servicer or Special Servicer can be
obtained to perform such obligations for such compensation, additional amounts
payable to such successor Master Servicer or Special Servicer will be treated
as Realized Losses.
The Pooling Agreement also provides that none of the Seller, the Master
Servicer, the Special Servicer, nor any director, officer, employee or agent of
the Seller, the Master Servicer or the Special Servicer will be under any
liability to the Trust Fund or the holders of Certificates for any action taken
or for refraining from the taking of any action in good faith pursuant to the
Pooling Agreement, or for errors in judgment; provided, however, that neither
the Seller, the Master Servicer, the Special Servicer nor any such person will
be protected against any liability which would otherwise be imposed by reason
of (i) any breach of warranty or representation, or other representation or
specific liability provided in the Pooling Agreement, or (ii) any willful
misconduct, bad faith, fraud or negligence in the performance of duties
thereunder or by reason of reckless disregard of obligations or duties
thereunder. The Pooling Agreement further provides that the Seller, the Master
Servicer, the Special Servicer and any director, officer, employee or agent of
the Seller, the Master Servicer or the Special Servicer will be entitled to
indemnification by the Trust Fund for any loss, liability or expense incurred
in connection with or relating to the Pooling Agreement or the Certificates,
other than any loss, liability or expense (i) incurred by reason of willful
misconduct, bad faith, fraud or negligence in the performance of duties
thereunder or by reason of reckless disregard of obligations and duties
thereunder, in each case by the person being indemnified; (ii) imposed by any
taxing authority if such loss, liability or expense is not specifically
reimbursable pursuant to the terms of the Pooling Agreement, or (iii) with
respect to any such party, resulting from the breach by such party of any of
its representations or warranties contained in the Pooling Agreement.
In addition, the Pooling Agreement provides that none of the Seller, the
Master Servicer, nor the Special Servicer will be under any obligation to
appear in, prosecute or defend any legal action unless such action is related
to its duties under the Pooling Agreement and which in its opinion does not
expose it to any expense or liability. The Seller, the Master Servicer or the
Special Servicer may, however, in its discretion undertake any such action
which it may deem necessary or desirable with respect to the Pooling Agreement
and the rights and duties of the parties thereto and the interests of the
holders of Certificates thereunder. In such event, the legal expenses and costs
of such action and any liability resulting therefrom will be expenses, costs
and liabilities of the Trust Fund, and the Seller, the Master Servicer and the
Special Servicer will be entitled to be reimbursed therefor from the Collection
Account.
The Seller is not obligated to monitor or supervise the performance of the
Master Servicer, the Special Servicer or the Trustee under the Pooling
Agreement. The Seller may, but is not obligated to, enforce the obligations of
the Master Servicer or the Special Servicer under the Pooling Agreement and
may, but is not obligated to, perform or cause a designee to perform any
defaulted obligation of the Master Servicer or the Special Servicer or exercise
any right of the Master Servicer or the Special
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Servicer under the Pooling Agreement. In the event the Seller undertakes any
such action, it will be reimbursed and indemnified by the Trust Fund in
accordance with the standard set forth above. Any such action by the Seller
will not relieve the Master Servicer or the Special Servicer of its obligations
under the Pooling Agreement.
Any person into which the Seller, the Master Servicer or the Special
Servicer may be merged or consolidated, or any person resulting from any merger
or consolidation to which the Seller, the Master Servicer or the Special
Servicer is a party, or any person succeeding to the business of the Seller,
the Master Servicer or the Special Servicer, will be the successor of the
Seller, the Master Servicer or the Special Servicer, as the case may be, under
the Pooling Agreement, and shall be deemed to have assumed all of the
liabilities and obligations of the Seller, the Master Servicer or the Special
Servicer under the Pooling Agreement.
EVENTS OF DEFAULT
Events of default of the Master Servicer (each, with respect to the Master
Servicer, an "Event of Default") under the Pooling Agreement consist, among
other things, of (i) any failure by the Master Servicer to remit to the
Collection Account or any failure by the Master Servicer to remit to the
Trustee for deposit into the Upper-Tier Distribution Account, Lower-Tier
Distribution Account, Interest Reserve Account, Excess Interest Distribution
Account or Class Q Distribution Account any amount required to be so remitted
at the time required to be remitted pursuant to the Pooling Agreement (which
failure, with respect to the Lower-Tier Distribution Account, is not remedied
by 11:00 A.M. on the related Distribution Date); or (ii) any failure by the
Master Servicer duly to observe or perform in any material respect any of its
other covenants or agreements or the material breach of its representations or
warranties under the Pooling Agreement which continues unremedied for 30 days
after the giving of written notice of such failure to the Master Servicer by
the Seller or the Trustee, or to the Master Servicer, the Seller and the
Trustee by the holders of Certificates evidencing Percentage Interests of at
least 25% of any affected Class; provided that if such default is not capable
of being cured within such 30 day period and the Master Servicer is diligently
pursuing such cure, the Master Servicer shall be entitled to an additional 30
day period; provided, further, that the failure of the Master Servicer to
perform any covenant or agreement contained in the Pooling Agreement (other
than as provided in clause (i) above) as a result of an inconsistency between
the Pooling Agreement and any Mortgage Loan document will not be an Event of
Default; or (iii) any failure by the Master Servicer to make any Advances,
which failure continues unremedied for a period of fifteen (15) days after the
date on which such Advance is due, as required pursuant to the Pooling
Agreement; or (iv) certain events of bankruptcy, insolvency, readjustment of
debt, marshaling of assets and liabilities or similar proceedings and certain
actions by, on behalf of or against the Master Servicer indicating its
insolvency or inability to pay its obligations or (v) the Seller or Trustee
receives notice that the continuation of the Master Servicer in such role,
would, in and of itself, result in the downgrade, qualification or withdrawal
of the ratings then assigned by Fitch to any Class of Certificates.
Events of default of the Special Servicer (each, with respect to the
Special Servicer, an "Event of Default") under the Pooling Agreement consist,
among other things, of (i) any failure by the Special Servicer to remit to the
Collection Account any amount so required under the Pooling Agreement; or (ii)
any failure by the Special Servicer duly to observe or perform in any material
respect any of its other covenants or agreements, or the material breach of its
representations or warranties under the Pooling Agreement which continues
unremedied for a period of 30 days after the giving of written notice of such
failure to the Special Servicer by the Master Servicer, the Seller or the
Trustee, or to the Special Servicer, the Master Servicer, the Seller and the
Trustee by the holders of Certificates evidencing Percentage Interests of at
least 25% of any affected Class; or (iii) certain events of bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings and certain actions by, on behalf of or against the Special
Servicer indicating its insolvency or inability to pay its obligations or (iv)
the Seller or Trustee receives notice that the continuation of the Special
Servicer in such role, would, in and of itself result in the qualification,
downgrade or withdrawal of the ratings then assigned by Fitch to any Class of
Certificates.
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RIGHTS UPON EVENT OF DEFAULT
If an Event of Default with respect to the Master Servicer (acting as
Master Servicer or Special Servicer) occurs, then the Trustee may, and at the
direction of the holders of Certificates evidencing at least 25% of the
aggregate Voting Rights of all Certificateholders, the Trustee will be required
to, terminate all of the rights and obligations of the Master Servicer as
Master Servicer under the Pooling Agreement and in and to the Trust Fund.
Notwithstanding the foregoing, upon any termination of the Master Servicer
under the Pooling Agreement, the Master Servicer will continue to be entitled
to receive all accrued and unpaid servicing compensation through the date of
termination plus reimbursement for all Advances and interest on such Advances
as provided in the Pooling Agreement. In the event that the Master Servicer is
also the Special Servicer and the Master Servicer is terminated, the Master
Servicer will also be terminated as Special Servicer.
On and after the date of termination following an Event of Default by the
Master Servicer, the Trustee will succeed to all authority and power of the
Master Servicer (and the Special Servicer if the Special Servicer is also the
Master Servicer) under the Pooling Agreement and will be entitled to the
compensation arrangements to which the Master Servicer (and the Special
Servicer if the Special Servicer is also the Master Servicer) would have been
entitled. If the Trustee is unwilling or unable so to act, or if the holders of
Certificates evidencing at least 25% of the aggregate Voting Rights of all
Certificateholders so request, or if the Rating Agencies do not provide written
confirmation that the succession of the Trustee as Master Servicer or Special
Servicer, will not cause a qualification, withdrawal or downgrading of the then
current ratings assigned to the Certificates, the Trustee must appoint, or
petition a court of competent jurisdiction for the appointment of, a mortgage
loan servicing institution the appointment of which will not result in the
downgrading, qualification or withdrawal of the then current ratings assigned
to any Class of Certificates as evidenced in writing by each Rating Agency to
act as successor to the Master Servicer or Special Servicer under the Pooling
Agreement. Pending such appointment, the Trustee is obligated to act in such
capacity. The Trustee and any such successor may agree upon the servicing
compensation to be paid. If the compensation payable to such successor exceeds
that to which the predecessor Master Servicer was entitled, the additional
servicing compensation will be allocated to the Certificates in the same manner
as Realized Losses.
If the Special Servicer is not the Master Servicer and an Event of Default
with respect to the Special Servicer occurs, the Trustee may, and at the
direction of the holders of at least 25% of the aggregate Voting Rights of all
Certificateholders, the Trustee will be required to, terminate the Special
Servicer and the Trustee will succeed to all the power and authority of the
Special Servicer under the Pooling Agreement, unless such succession would
result in the downgrading, qualification or withdrawal of the then current
ratings assigned to any Class of Certificates, as evidenced in writing by each
Rating Agency, in which case, a successor Special Servicer shall be appointed
in accordance with the Pooling Agreement. The Trustee or other successor
Special Servicer which succeeds to the power and authority of the Special
Servicer will be entitled to the compensation to which the Special Servicer
would have been entitled after the date of such succession.
No Certificateholder will have any right under the Pooling Agreement to
institute any proceeding with respect to the Pooling Agreement or the Mortgage
Loans, unless, with respect to the Pooling Agreement, such holder previously
shall have given to the Trustee a written notice of a default under the Pooling
Agreement, and of the continuance thereof, and unless also the holders of
Certificates of each Class affected thereby evidencing Percentage Interests of
at least 25% of such Class shall have made written request of the Trustee to
institute such proceeding in its own name as Trustee under the Pooling
Agreement and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity, shall have neglected or refused to institute
such proceeding.
The Trustee will have no obligation to make any investigation of matters
arising under the Pooling Agreement or to institute, conduct or defend any
litigation thereunder or in relation thereto at the request, order or direction
of any of the holders of Certificates, unless such holders of Certificates
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby.
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AMENDMENT
The Pooling Agreement may be amended at any time by the Seller, the Master
Servicer, the Special Servicer, the Trustee and the Fiscal Agent without the
consent of any of the holders of Certificates (i) to cure any ambiguity; (ii)
to correct or supplement any provisions therein which may be defective or
inconsistent with any other provisions therein; (iii) to amend any provision
thereof to the extent necessary or desirable to maintain the status of each of
the Upper-Tier REMIC and Lower-Tier REMIC as a REMIC, or to prevent the
imposition of any material state or local taxes; (iv) to amend or supplement a
provision which will not adversely affect in any material respect the interests
of any Certificateholder not consenting thereto, as evidenced in writing by an
opinion of counsel or confirmation in writing from each Rating Agency that such
amendment will not result in a qualification, withdrawal or downgrading of the
then current ratings assigned to the Certificates; (v) to amend or supplement
any provisions therein to the extent necessary or desirable to maintain the
rating assigned to each of the Classes of Certificates by each Rating Agency;
and (vi) to make any other provisions with respect to matters which are not
inconsistent with any other provisions therein and will not result in a
qualification withdrawal or downgrading of the then current ratings assigned to
the Certificates. The Pooling Agreement provides that no such amendment shall
cause the Upper-Tier REMIC or the Lower-Tier REMIC to fail to qualify as a
REMIC.
The Pooling Agreement may also be amended from time to time by the Seller,
the Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent
with the consent of the holders of Certificates evidencing at least 66 2/3% of
the Percentage Interests of each Class of Certificates affected thereby for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Pooling Agreement or modifying in any manner the
rights of the holders of Certificates; provided, however, that no such
amendment may (i) reduce in any manner the amount of, or delay the timing of,
payments on any Certificate; (ii) alter the obligations of the Master Servicer,
the Special Servicer, the Trustee or the Fiscal Agent to make a P&I Advance or
Property Advance or alter the servicing standards set forth in the Pooling
Agreement; (iii) change the percentages of Voting Rights of holders of
Certificates which are required to consent to any action or inaction under the
Pooling Agreement; or (iv) amend the section in the Pooling Agreement relating
to the amendment of the Pooling Agreement, in each case without the consent of
the holders of all Certificates representing all the Percentage Interests of
the Class or Classes affected thereby.
The "Voting Rights" assigned to each Class shall be (a) 0% in the case of
the Class Q, Class R and Class LR Certificates; (b) 4% in the case of the Class
X Certificates, provided that the Voting Rights of the Class X Certificates
will be reduced to zero upon the reduction of the Notional Amount thereof to
zero (the applicable percentage from time to time is the "Fixed Voting Rights
Percentage"); (c) in the case of the Class A-1, Class A-2, Class A-3, Class B,
Class C, Class D, Class E, Class F, Class G, Class H, Class J and Class K
Certificates, a percentage equal to the product of (i) 100% minus the Fixed
Voting Rights Percentage multiplied by (ii) a fraction, the numerator of which
is equal to the aggregate outstanding Certificate Principal Amount of any such
Class (which will be reduced for this purpose by the amount of any Appraisal
Reduction Amounts notionally allocated to such Class, if applicable) and the
denominator of which is equal to the aggregate outstanding Certificate
Principal Amounts of all Classes of Certificates. The Voting Rights of any
Class of Certificates shall be allocated among holders of Certificates of such
Class in proportion to their respective Percentage Interests.
REALIZATION UPON MORTGAGE LOANS
SPECIALLY SERVICED MORTGAGE LOANS; APPRAISALS. Within 60 days following
the occurrence of an Appraisal Reduction Event, the Special Servicer will be
required to obtain an appraisal of the Mortgaged Property or REO Property, as
the case may be, from an independent appraiser in accordance with MAI standards
(an "Updated Appraisal"); provided, that, the Special Servicer will not be
required to obtain an Updated Appraisal of any Mortgaged Property with respect
to which there exists an appraisal which is less than twelve months old. The
cost of any Updated Appraisal shall be a Property Advance to be paid by the
Master Servicer.
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STANDARDS FOR CONDUCT GENERALLY IN EFFECTING FORECLOSURE OR THE SALE OF
DEFAULTED LOANS. In connection with any foreclosure, enforcement of the loan
documents, or other acquisition, the cost and expenses of any such proceeding
shall be paid by the Special Servicer as a Property Advance.
If the Special Servicer elects to proceed with a non-judicial foreclosure
in accordance with the laws of the state where the Mortgaged Property is
located, the Special Servicer shall not be required to pursue a deficiency
judgment against the related borrower, if available, or any other liable party
if the laws of the state do not permit such a deficiency judgment after a
non-judicial foreclosure or if the Special Servicer determines, in accordance
with the Servicing Standard, that the likely recovery if a deficiency judgment
is obtained will not be sufficient to warrant the cost, time, expense and/or
exposure of pursuing the deficiency judgment and such determination is
evidenced by an officers' certificate delivered to the Trustee.
Notwithstanding anything herein to the contrary, the Pooling Agreement
will provide that the Special Servicer will not, on behalf of the Trust Fund,
obtain title to a Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, and will not otherwise acquire possession of, or take any other
action with respect to, any Mortgaged Property if, as a result of any such
action, the Trustee, or the Trust Fund or the holders of Certificates, would be
considered to hold title to, to be a "mortgagee-in-possession" of, or to be an
"owner" or "operator" of, such Mortgaged Property within the meaning of CERCLA
or any comparable law, unless the Special Servicer has previously determined,
based on an environmental assessment report prepared by an independent person
who regularly conducts environmental audits, that: (i) such Mortgaged Property
is in compliance with applicable environmental laws or, if not, after
consultation with an environmental consultant that it would be in the best
economic interest of the Trust Fund to take such actions as are necessary to
bring such Mortgaged Property in compliance therewith and (ii) there are no
circumstances present at such Mortgaged Property relating to the use,
management or disposal of any hazardous materials for which investigation,
testing, monitoring, containment, clean-up or remediation could be required
under any currently effective federal, state or local law or regulation, or
that, if any such hazardous materials are present for which such action could
be required, after consultation with an environmental consultant it would be in
the best economic interest of the Trust Fund to take such actions with respect
to the affected Mortgaged Property.
In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
is required to be issued to the Trustee, to a co-trustee or to its nominee, on
behalf of holders of Certificates. Notwithstanding any such acquisition of
title and cancellation of the related Mortgage Loan, such Mortgage Loan shall
be considered to be an REO Mortgage Loan held in the Trust Fund until such time
as the related REO Property shall be sold by the Trust Fund and shall be
reduced only by collections net of expenses.
If the Trust Fund acquires a Mortgaged Property by foreclosure or
deed-in-lieu of foreclosure upon a default of a Mortgage Loan, the Pooling
Agreement provides that the Trustee (or the Special Servicer, on behalf of the
Trustee), must administer such Mortgaged Property so that it qualifies at all
times as "foreclosure property" within the meaning of Code Section 860G(a)(8).
The Pooling Agreement also requires that any such Mortgaged Property be managed
and operated by an "independent contractor," within the meaning of applicable
Treasury regulations, who furnishes or renders services to the tenants of such
Mortgaged Property. Generally, the Lower-Tier REMIC will not be taxable on
income received with respect to a Mortgaged Property to the extent that it
constitutes "rents from real property," within the meaning of Code Section
856(c)(3)(A) and Treasury regulations thereunder. "Rents from real property" do
not include the portion of any rental based on the net income or gain of any
tenant or sub-tenant. No determination has been made whether rent on any of the
Mortgaged Properties meets this requirement. "Rents from real property" include
charges for services customarily furnished or rendered in connection with the
rental of real property, whether or not the charges are separately stated.
Services furnished to the tenants of a particular building will be considered
as customary if, in the geographic market in which the building is located,
tenants in buildings which are of similar class are customarily provided with
the service. No determination has been made whether the services furnished to
the tenants of the Mortgaged Properties are "customary" within the meaning of
applicable regulations. It is therefore possible that a portion of the rental
income with respect to a Mortgaged Property owned by the
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Lower-Tier REMIC, presumably allocated based on the value of any non-qualifying
services, would not constitute "rents from real property." In addition to the
foregoing, any net income from a trade or business operated or managed by an
independent contractor on a Mortgaged Property owned by the Lower-Tier REMIC,
such as a hotel property or a healthcare property, will not constitute "rents
from real property." Any of the foregoing types of income may instead
constitute "net income from foreclosure property," which would be taxable to
the Lower-Tier REMIC at the highest marginal federal corporate rate (currently
35%) and may also be subject to state or local taxes. Any such taxes would be
chargeable against the related income for purposes of determining the Net REO
Proceeds available for distribution to holders of Certificates. The Pooling
Agreement provides that the Special Servicer will be permitted to cause the
Lower-Tier REMIC to earn "net income from foreclosure property" that is subject
to tax if it determines that the net after-tax benefit to Certificateholders is
greater than another method of operating or net leasing the Mortgaged Property.
See "Federal Income Tax Consequences--REMIC Certificates--Income from Residual
Certificates--Prohibited Transactions; Special Taxes" in the Prospectus.
The Pooling Agreement will provide that the Special Servicer may offer to
sell to any person any defaulted Mortgage Loan or any REO Property, or may
offer to purchase any Specially Serviced Mortgage Loan or any REO Property, if
and when the Special Servicer determines, consistent with the Servicing
Standard, that no satisfactory arrangements can be made for collection of
delinquent payments thereon and such a sale would be in the best economic
interests of the Trust Fund, but shall, in any event, so offer to sell any REO
Property no later than the time determined by the Special Servicer to be
sufficient to result in the sale of such REO Property within the period
specified in the Pooling Agreement, including extensions thereof. The Special
Servicer is required to give the Trustee not less than five days' prior written
notice of its intention to sell any Specially Serviced Mortgage Loan or REO
Property, in which case the Special Servicer is required to accept the highest
offer (of at least three offers) received from any person for any Specially
Serviced Mortgage Loan or any REO Property in an amount at least equal to the
Repurchase Price or, at its option, if it has received no offer at least equal
to the Repurchase Price therefor, purchase the Specially Serviced Mortgage Loan
or REO Property at such Repurchase Price.
In the absence of any such offer (or purchase by the Special Servicer),
the Special Servicer shall accept the highest offer received from any person
that is determined by the Special Servicer to be a fair price for such
Specially Serviced Mortgage Loan or REO Property, if the highest offeror is a
person not affiliated with the Special Servicer, or is determined to be a fair
price by the Trustee (based solely upon updated independent appraisals received
by the Trustee), if the highest offeror is affiliated with the Special
Servicer. Neither the Trustee, in its individual capacity, nor any of its
affiliates may make an offer for or purchase any Specially Serviced Mortgage
Loan or any REO Property.
The Pooling Agreement will not obligate the Special Servicer to accept the
highest offer if the Special Servicer determines, in accordance with the
Servicing Standard, that rejection of such offer would be in the best interests
of the holders of Certificates. In addition, the Special Servicer may accept a
lower offer if it determines, in accordance with the Servicing Standard, that
acceptance of such offer would be in the best interests of the holders of
Certificates (for example, if the prospective buyer making the lower offer is
more likely to perform its obligations, or the terms offered by the prospective
buyer making the lower offer are more favorable), provided that the offeror is
not a person affiliated with the Special Servicer. The Special Servicer is
required to use its best efforts to sell all Specially Serviced Mortgage Loans
and REO Property prior to the Rated Final Distribution Date.
Following a default in the payment of principal or interest on a Mortgage
Loan, the Special Servicer, after consultation with, and agreement by, the
Master Servicer, may elect not to foreclose or institute similar proceedings or
modify such Mortgage Loan (as described below) and instead the Master Servicer
shall continue to make P&I Advances with respect to such delinquencies so long
as the Special Servicer, in its reasonable judgment, after consultation with,
and agreement by, the Master Servicer, concludes (a) that the election not to
foreclose or modify would likely result in a greater recovery, on a present
value basis, than would foreclosure or modification and (b) such P&I Advances
will not be nonrecoverable. With respect to such conclusions, the Master
Servicer may conclusively rely (absent manifest error) on the Special
Servicer's computations and analysis.
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MODIFICATIONS, WAIVERS AND AMENDMENTS. The Pooling Agreement will permit
each of the Master Servicer and the Special Servicer to modify, waive or amend
any term of any Mortgage Loan (except with respect to the Americold Pool Loan)
if (a) it determines, in accordance with the servicing standard described
above, that it is appropriate to do so and (b) except as described in the
following paragraph, such modification, waiver or amendment, will not (i)
affect the amount or timing of any scheduled payments of principal, interest or
other amount (including prepayment premiums and yield maintenance charges)
payable under the Mortgage Loan, (ii) affect the obligation of the related
borrower to pay a prepayment premium or yield maintenance charge or permit a
principal prepayment during the applicable prepayment lock-out period, (iii)
except as expressly provided by the related Mortgage or in connection with a
material adverse environmental condition at the related Mortgaged Property,
result in a release of the lien of the related Mortgage on any material portion
of such Mortgaged Property without a corresponding principal prepayment or (iv)
in the judgment of the Master Servicer or the Special Servicer, materially
impair the security for the Mortgage Loan or reduce the likelihood of timely
payment of amounts due thereon.
Notwithstanding clause (b) of the preceding paragraph, the Special
Servicer may (i) reduce the amounts owing under any Specially Serviced Mortgage
Loan by forgiving principal, accrued interest and/or any prepayment premium or
yield maintenance charge, (ii) reduce the amount of the Monthly Payment on any
Specially Serviced Mortgage Loan, including by way of a reduction in the
related Mortgage Interest Rate, (iii) forbear in the enforcement of any right
granted under any Mortgage Note or Mortgage relating to a Specially Serviced
Mortgage Loan, (iv) extend the maturity date of any Specially Serviced Mortgage
Loan, and/or (v) accept a principal prepayment during any Lockout Period;
provided that (x) the related borrower is in default with respect to the
Specially Serviced Mortgage Loan or, in the judgment of the Special Servicer,
such default is reasonably foreseeable, (y) in the sole, good faith judgment of
the Special Servicer, such modification, waiver or amendment would increase the
recovery to Certificateholders on a net present value basis documented to the
Trustee and (z) such modification, waiver or amendment does not result in a tax
being imposed on the Trust Fund or cause any REMIC created pursuant to the
Pooling Agreement to fail to qualify as a REMIC at a any time the Certificates
are outstanding, based on an opinion of counsel obtained at the expense of the
Trust Fund. In no event, however, will the Special Servicer be permitted to (i)
extend the maturity date of a Mortgage Loan beyond a date that is two years
prior to the Rated Final Distribution Date, or (ii) if the Mortgage Loan is
secured by a ground lease, extend the maturity date of such Mortgage Loan
beyond a date which is 10 years prior to the expiration of the term of such
ground lease.
The Special Servicer will prepare a report (an "Asset Status Report") for
each Mortgage Loan which becomes a Specially Serviced Mortgage Loan not later
than 45 days after the servicing of such Mortgage Loan is transferred to the
Special Servicer. Each Asset Status Report will be delivered to the Controlling
Class Representative (as defined herein). The Controlling Class Representative
may object to any Asset Status Report within 10 business days of receipt;
provided, however, that the Special Servicer shall implement the recommended
action as outlined in such Asset Status Report if it makes an affirmative
determination that not taking such action would result in a violation of the
Servicing Standard. If the Controlling Class Representative disapproves such
Asset Status Report and the Special Servicer has not made the affirmative
determination described above, the Special Servicer will revise such Asset
Status Report as soon as practicable thereafter, but in no event later than 30
days after such disapproval. The Special Servicer will revise such Asset Status
Report until the Controlling Class Representative fails to disapprove such
revised Asset Status Report as described above or until the Special Servicer
makes a determination that such objection is not in the best interests of all
of the Certificateholders; provided, however, in the event that the Controlling
Class Representative and the Special Servicer have not agreed upon an Asset
Status Report with respect to a Specially Serviced Mortgage Loan within 120
days of the Controlling Class Representative's receipt of the initial Asset
Status Report with respect to such Specially Serviced Mortgage Loan, the
Special Servicer shall implement the actions described in the most recent Asset
Status Report submitted to the Controlling Class Representative by the Special
Servicer.
Each of the Master Servicer and the Special Servicer will be required to
notify the Trustee, the Rating Agencies and the other of any modification,
waiver or amendment of any term of any Mortgage
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Loan, and to deliver to the Trustee or the related custodian, for deposit in
the related mortgage file, an original counterpart of the agreement related to
such modification, waiver or amendment, promptly (and in any event within 10
business days) following the execution thereof. Copies of each agreement
whereby any such modification, waiver or amendment of any term of any Mortgage
Loan is effected are required to be available for review during normal business
hours at the offices of the Trustee.
The Master Servicer or the Special Servicer, as applicable, will be
permitted to modify, waive or amend any term of a Mortgage Loan that is not in
default or as to which default is not reasonably foreseeable if, and only if,
such modification, waiver or amendment (a) would not be "significant" as such
term is defined in Treasury Regulations Section 1.860G-2(b)(3), which, in the
judgment of the Master Servicer, may be evidenced by an opinion of counsel, (b)
would be in accordance with the Servicing Standard and (c) would not adversely
affect in any material respect the interest of any Certificateholder not
consenting to it. The consent of the majority of Percentage Interests of each
Class of Certificates affected thereby or written confirmation from each Rating
Agency that such modification, waiver or amendment will not result in a
qualification, withdrawal or downgrading of the then-current ratings assigned
to the Certificates will not be required but will be conclusive evidence that
such modification, waiver or amendment would not adversely affect in any
material respect the interest of any Certificateholder not consenting thereto.
The Master Servicer or the Special Servicer, as applicable, is required to
provide copies of any modifications, waiver or amendment to each Rating Agency.
The Master Servicer or Special Servicer shall be permitted, in its
discretion, to waive all or any accrued Excess Interest if, prior to the
related maturity date, the related borrower has requested the right to prepay
the Mortgage Loan in full together with all payments required by the Mortgage
Loan in connection with such prepayment except for all or a portion of accrued
Excess Interest, provided that the Master Servicer or Special Servicer, as
applicable, determines that (i) in the absence of the waiver of such Excess
Interest, there is a reasonable likelihood that the Mortgage Loan will not be
paid in full on the related Maturity Date and (ii) waiver of the right to such
accrued Excess Interest is reasonably likely to produce a greater payment in
the aggregate to Certificateholders on a present value basis than a refusal to
waive the right to such Excess Interest. Any such waiver shall not be effective
until such prepayment is tendered.
Notwithstanding the foregoing, with respect to the Americold Pool Loan,
the 1998-GL II Special Servicer may agree to modify the Americold Pool Loan
pursuant to the Series 1998-GL II Pooling Agreement in the event the Other
Americold Loan becomes specially serviced and provided that (a) a default has
occurred or is likely such that the modification would yield greater recovery
to Series 1998-GL II Certificateholders than liquidation; (b) the related
manager is terminated; and (c) only reductions rather than forgiveness of
principal which last no more than twelve months are agreed to; provided,
however, that Series 1998-GL II Certificateholders representing greater than 66
2/3% of all voting rights can direct the Americold Pool Loan Special Servicer
not to agree to such modification.
Pursuant to the Series 1998-GL II Pooling Agreement, the Series 1998-GL II
Special Servicer may agree to any modification, waiver, or amendment, forgive
or defer interest on and principal of, and add collateral for the Americold
Pool Loan and the Other Americold Loan with consent of 100% of the most
subordinate class of Series 1998-GL II certificates then outstanding subject to
certain limitations including: (a) the occurrence or likelihood of a default
such that the modification would yield greater recovery to the Series 1998-GL
II certificateholders than liquidation, (b) the reduction cannot result in an
interest shortfall; (c) all excess cash flow will be applied to principal and
interest; (d) the reduction will last no more than twelve months; (e) the
modification cannot reduce prepayment premium or yield maintenance charge or
prepayment lockout period; (f) the modification cannot forgive an aggregate
amount of principal beyond a specified amount; and (g) the modification cannot
add collateral unless it is in compliance with applicable environmental
standards.
Pursuant to the Series 1998-GL II Pooling Agreement, the Series 1998-GL II
Master Servicer and Special Servicer can only modify, waive or amend terms of
the Americold Pool Loan and the Other Americold Loan when it is not in default
if the amendment (a) is not "significant"; (b) complies with servicing standard
(generally equivalent to the Servicing Standard as described herein); and (c)
would not adversely affect non-consenting Series 1998-GL II Certificateholders.
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THE CONTROLLING CLASS REPRESENTATIVE
The holders of the Class of Certificates representing the most subordinate
interests in the Trust Fund that equals at least 25% of its initial Certificate
Principal Amount (or if no class of Certificates has a Certificate Principal
Amount of at least 25% of its initial Certificate Principal Amount, the most
subordinate class outstanding) (the "Controlling Class") will designate a
representative pursuant to the Pooling Agreement (the "Controlling Class
Representative"). The Controlling Class Representative may be a
Certificateholder, an individual, a corporation or another entity, as
determined by the Controlling Class. In addition to the matters set forth
above, the Controlling Class Representative may remove and replace the Special
Servicer with another Special Servicer acceptable to the Rating Agencies;
provided, however, that the Controlling Class Representative will not be able
to remove and replace the Series 1998-GL II Special Servicer.
The Controlling Class Representative will have no liability to the
Certificateholders for any action taken, or for refraining from the taking of
any action, in good faith pursuant to the Pooling Agreement, or for error in
judgment; provided, however, that the Controlling Class Representative will not
be protected against any liability which would otherwise be imposed by reason
of willful misfeasance, bad faith or negligence in the performance of duties or
by reason of reckless disregard of obligations or duties. By its acceptance of
a Certificate, each Certificateholder confirms its understanding that the
Controlling Class Representative may take actions that favor the interest of
one or more Classes of the Certificates over other Classes of the Certificates,
and that the Controlling Class Representative may have special relationships
and interests that conflict with those of holders of some Classes of the
Certificate; and, absent willful misfeasance, bad faith or negligence on the
part of the Controlling Class Representative, each Certificateholder agrees to
take no action against the Controlling Class Representative or any of its
officers, directors, employees, principals or agents as a result of such a
special relationship or conflict.
THE HEALTHCARE ADVISER
Promptly (but in no event later than five days) after the Trustee is
notified that certain of the Mortgage Loans (identified on Annex A as Hospital
Hermanos Melendez, Four Winds Katona and Four Winds of Saratoga) (the
"Healthcare Adviser Loans") became a Specially Serviced Mortgage Loan, the
Trustee will be required to request the Controlling Class Representative to
appoint a consultant with respect to such healthcare loan and the related
healthcare property (the "Healthcare Adviser"). In the event the Controlling
Class Representative does not appoint a Healthcare Adviser within five days,
the Special Servicer will be obligated to do so, provided that in no event will
the appointment of the Healthcare Adviser be more than 30 days following the
Trustee receiving notice of the related Healthcare Adviser Loan becoming a
Specially Serviced Mortgage Loan. The Healthcare Adviser will provide the
Special Servicer and the Controlling Class Representative with advice with
respect to the related healthcare loans and healthcare properties.
There will not be a Healthcare Adviser for a Healthcare Adviser Loan that
is not being specially serviced.
The Trustee and the Special Servicer will be required to deliver to the
Healthcare Adviser all reports and other information they receive (to the
extent received and Master Servicer routinely prepares such report), with
respect to the related healthcare related properties and healthcare loans. The
Healthcare Adviser will monitor such healthcare loans and healthcare related
properties and will provide advice to the Special Servicer and the Controlling
Class Representative with respect to them. The Special Servicer will be
restricted from taking any material actions with respect to healthcare loans
and healthcare related properties without first providing notice to, and
consulting with, the Healthcare Adviser. The Healthcare Adviser in turn will
recommend to the Special Servicer what action should be taken with respect to
such healthcare loans or healthcare related properties, provided that in no
case will the Special Servicer be required to follow any recommendation given
to it by the Healthcare Adviser.
Pursuant to the Pooling Agreement, the Healthcare Adviser will be entitled
to receive from the Distribution Account a monthly fee with respect to the
healthcare loans for which it is serving as Healthcare Adviser (the "Healthcare
Adviser Fee"). The Healthcare Advisor Fee will be an expense of the Trust Fund
that is in addition to compensation paid to the Special Servicer.
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The Healthcare Adviser will have no responsibility or liability to the
Trust or any Class of Certificateholders for any action taken, or for
refraining from the taking of any action, in good faith pursuant to the Pooling
Agreement, or for errors in judgment; provided that the Healthcare Adviser will
not be protected against any liability which would otherwise be imposed by
reason of willful misconduct, bad faith, fraud or gross negligence in the
performance of duties or by reason of reckless disregard of obligations or
duties. By its acceptance of a Certificate, each Certificateholder confirms its
understanding that the Healthcare Adviser may advise actions that favor the
interests of one or more Classes of the Certificates over other Classes of the
Certificates, and that the Healthcare Adviser may have special relationships
and interests that conflict with those of Holders of some Classes of the
Certificates.
OPTIONAL TERMINATION; OPTIONAL MORTGAGE LOAN PURCHASE
The holders of the Controlling Class representing greater than a 50%
Percentage Interest of the Controlling Class, and if the Controlling Class does
not exercise its option, the Seller and, if the Seller does not exercise its
option, the Master Servicer and, if none of the Controlling Class, the Seller
or the Master Servicer exercises its option, the holders of the Class LR
Certificates representing greater than a 50% Percentage Interest of the Class
LR Certificates will have the option to purchase all of the Mortgage Loans and
all property acquired in respect of any Mortgage Loan remaining in the Trust
Fund, and thereby effect termination of the Trust Fund and early retirement of
the then outstanding Certificates, on any Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans remaining in the Trust
Fund is less than 1% of the aggregate Stated Principal Balance of such Mortgage
Loans as of the Cut-Off Date. The purchase price payable upon the exercise of
such option on such a Distribution Date will be an amount equal to the greater
of (i) the sum of (A) 100% of the outstanding principal balance of each
Mortgage Loan included in the Trust Fund as of the last day of the month
preceding such Distribution Date; (B) the fair market value of all other
property included in the Trust Fund as of the last day of the month preceding
such Distribution Date, as determined by an independent appraiser as of a date
not more than 30 days prior to the last day of the month preceding such
Distribution Date; (C) all unpaid interest accrued on such principal balance of
each such Mortgage Loan (including any Mortgage Loans as to which title to the
related Mortgaged Property has been acquired) at the Mortgage Rate (plus the
Excess Rate, to the extent applicable) to the last day of the Interest Accrual
Period preceding such Distribution Date, and (D) unreimbursed Property
Advances, and unpaid servicing compensation, special servicing compensation,
Trustee Fees and Trust Fund expenses, in each case to the extent permitted
under the Pooling Agreement with interest on all unreimbursed Advances at the
Advance Rate and (ii) the aggregate fair market value of the Mortgage Loans and
all other property acquired in respect of any Mortgage Loan in the Trust Fund,
on the last day of the month preceding such Distribution Date, as determined by
an independent appraiser acceptable to the Master Servicer, together with one
month's interest thereon at the related Mortgage Rates. There can be no
assurance that payment of the Certificate Principal Amount, if any, of each
outstanding Class of Certificates plus accrued interest would be made in full
in the event of such a termination of the Trust Fund. See "Description of the
Certificates--Termination" in the Prospectus.
Any Mortgage Loan purchased under the circumstances described in the
preceding paragraph will be purchased subject to a continuing right of (i) the
holders of the Class Q Certificates to receive from the purchaser(s), from time
to time, payments corresponding to Default Interest with respect to such
Mortgage Loan and payments corresponding to the AIMCO Multifamily Conditional
Debt, and (ii) the holders of the Classes of Certificates entitled to receive
the Excess Interest with respect to such Mortgage Loan, to receive from the
purchaser(s), from time to time, payments corresponding to Excess Interest with
respect to such Mortgage Loan.
THE TRUSTEE
LaSalle National Bank, a national banking association with its principal
offices in Chicago, Illinois, will act as Trustee pursuant to the Pooling
Agreement. The Trustee's corporate trust office is located at 135 South LaSalle
Street, Suite 1625, Chicago, Illinois 60674-4107, Attention: Asset Backed
Securities Trust Services Group--GSMSC II 1998-C1.
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The Trustee may resign at any time by giving written notice to the Seller,
the Master Servicer and the Rating Agencies, provided that no such resignation
shall be effective until a successor has been appointed. Upon such notice, the
Seller will appoint a successor trustee reasonably acceptable to the Master
Servicer. If no successor trustee is appointed within one month after the
giving of such notice of resignation, the resigning Trustee may petition the
court for appointment of a successor trustee.
The Seller may remove the Trustee and the Fiscal Agent if, among other
things, the Trustee ceases to be eligible to continue as such under the Pooling
Agreement or if at any time the Trustee becomes incapable of acting, or is
adjudged bankrupt or insolvent, or a receiver of the Trustee or its property is
appointed or any public officer takes charge or control of the Trustee or of
its property. The holders of Certificates evidencing aggregate Voting Rights of
more than 50% of all Certificateholders may remove the Trustee and the Fiscal
Agent upon written notice to the Seller, the Master Servicer, the Trustee and
the Fiscal Agent. Any resignation or removal of the Trustee and the Fiscal
Agent and appointment of a successor trustee and, if such trustee is not rated
at least "AA" by each Rating Agency, fiscal agent, will not become effective
until acceptance of the appointment by the successor trustee and, if necessary,
fiscal agent. Notwithstanding the foregoing, upon any termination of the
Trustee and the Fiscal Agent under the Pooling Agreement, the Trustee and the
Fiscal Agent will continue to be entitled to receive all accrued and unpaid
compensation through the date of termination plus reimbursement for all
Advances made by them and interest thereon as provided in the Pooling
Agreement. Any successor trustee must have a combined capital and surplus of at
least $50,000,000 and such appointment must not result in the downgrade,
qualification or withdrawal of the then-current ratings assigned to the
Certificates, as evidenced in writing by the Rating Agencies (other than S&P).
Pursuant to the Pooling Agreement, the Trustee will be entitled to receive
a monthly fee (the "Trustee Fee") at a specified rate (the "Trustee Fee Rate"),
payable by the Master Servicer out of the Servicing Fee.
The Trust Fund will indemnify the Trustee and the Fiscal Agent against any
and all losses, liabilities, damages, claims or unanticipated expenses
(including reasonable attorneys' fees) arising in respect of the Pooling
Agreement or the Certificates other than those resulting from the negligence,
bad faith or willful misconduct of the Trustee or the Fiscal Agent, as
applicable. Neither the Trustee nor the Fiscal Agent will be required to expend
or risk its own funds or otherwise incur financial liability in the performance
of any of its duties under the Pooling Agreement, or in the exercise of any of
its rights or powers, if in the Trustee's or the Fiscal Agent's opinion, as
applicable, the repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. The Master Servicer and the
Special Servicer each indemnify the Trustee, the Fiscal Agent, and certain
related parties for similar losses incurred related to the willful misconduct,
bad faith, fraud and/or negligence in the performance of the Master Servicer's
or the Special Servicer's duties as applicable, under the Pooling Agreement or
by reason of reckless disregard of its respective obligations and duties under
the Pooling Agreement.
At any time, for the purpose of meeting any legal requirements of any
jurisdiction in which any part of the Trust Fund or property securing the same
is located, the Seller and the Trustee acting jointly will have the power to
appoint one or more persons or entities approved by the Trustee to act (at the
expense of the Trustee) as co-trustee or co-trustees, jointly with the Trustee,
or separate trustee or separate trustees, of all or any part of the Trust Fund,
and to vest in such co-trustee or separate trustee such powers, duties,
obligations, rights and trusts as the Seller and the Trustee may consider
necessary or desirable. Except as required by applicable law, the appointment
of a co-trustee or separate trustee will not relieve the Trustee of its
responsibilities, obligations and liabilities under the Pooling Agreement.
DUTIES OF THE TRUSTEE
The Trustee (except for the information under the first paragraph of
"--The Trustee") and the Master Servicer (except for the information under
"--The Master Servicer") will make no representation as to the validity or
sufficiency of the Pooling Agreement, the Certificates or the Mortgage Loans,
this Prospectus Supplement or related documents.
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In the event that the Master Servicer fails to make a required Advance,
the Trustee (or with respect to a Property Advance required to be made by the
Special Servicer, the Master Servicer, and if the Master Servicer so fails, the
Trustee), will be obligated to make such Advance, provided that the Trustee
shall not be obligated to make any Advance it deems to be nonrecoverable. The
Trustee shall be entitled to rely conclusively on any determination by the
Master Servicer or Special Servicer, as applicable, that an Advance, if made,
would not be recoverable. The Trustee will be entitled to reimbursement for
each Advance made by it in the same manner and to same extent as the Master
Servicer or Special Servicer, as applicable.
If no Event of Default has occurred, and after the curing of all Events of
Default which may have occurred, the Trustee is required to perform only those
duties specifically required under the Pooling Agreement. Upon receipt of the
various certificates, reports or other instruments required to be furnished to
it, the Trustee is required to examine such documents and to determine whether
they conform on their face to the requirements of the Pooling Agreement.
In addition, pursuant to the Pooling Agreement, the Trustee, at the cost
and expense of the Seller, based upon reports, documents, and other information
provided to the Trustee, will be obligated to file with the Securities and
Exchange Commission (the "Commission"), in respect of the Trust and the
Certificates, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) required
to be filed with the Commission pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934, as amended, and any other Form 8-K reports
required to be filed pursuant to the Pooling Agreement.
THE FISCAL AGENT
ABN AMRO Bank N.V., a banking corporation organized under the laws of The
Netherlands, will act as Fiscal Agent pursuant to the Pooling Agreement. The
Fiscal Agent's office is located at 135 South LaSalle Street, Chicago, Illinois
60674-4107.
The Fiscal Agent may not resign except (i) in the event of the resignation
or removal of the Trustee (in which event, the Fiscal Agent shall be deemed to
have been removed), (ii) upon determination that it may no longer perform such
obligations and duties under applicable law, or (iii) upon written confirmation
from the Rating Agencies (other than S&P) that such resignation, without the
appointment of a successor Fiscal Agent, will not in and of itself result in a
downgrade qualification or withdrawal of the then current rating of any Class
of Certificates. Any such determination in (ii) above is required to be
evidenced by an opinion of counsel to such effect delivered to the Seller and
the Trustee. Except as provided in (iii) above, no resignation or removal of
the Fiscal Agent shall become effective until a successor fiscal agent
acceptable to each Rating Agency, as evidenced in writing (which may be the
Trustee) shall have assumed the Fiscal Agent's obligations and duties under the
Pooling Agreement. The Fiscal Agent will not be accountable for the use or
application by the Seller, the Master Servicer or the Special Servicer of any
Certificates issued to it or of the proceeds of such Certificates, or for the
use of or application of any funds paid to the Seller, the Master Servicer or
the Special Servicer in respect of the assignment of the Mortgage Loans to the
Trust Fund, or any funds deposited in or withdrawn from any lock box accounts,
reserve accounts, Collection Account, Upper-Tier Distribution Account, Lower-
Tier Distribution Account, Interest Reserve Account, Excess Interest
Distribution Account, Class Q Distribution Account, or any other account
maintained by or on behalf of the Master Servicer or the Special Servicer, nor
will the Fiscal Agent be required to perform, or be responsible for the manner
of performance of, any of the obligations of the Master Servicer or the Special
Servicer under the Pooling Agreement.
DUTIES OF THE FISCAL AGENT
The Fiscal Agent will make no representation as to the validity or
sufficiency of the Pooling Agreement, the Certificates, the Mortgage Loan, this
Prospectus Supplement (except for the information in the first sentence under
the preceding section with the heading "--The Fiscal Agent") or related
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documents. The duties and obligations of the Fiscal Agent consist only of
making Advances as described below and in "--Advances" above; the Fiscal Agent
will not be liable except for the performance of such duties and obligations.
The Fiscal Agent will not be accountable for the use or application by the
Seller, the Master Servicer or the Special Servicer of any Certificates issued
to it or of the proceeds of such Certificates, or for the use of or application
of any funds paid to the Seller, the Master Servicer or the Special Servicer in
respect of the assignment of the Mortgage Loans to the Trust Fund, or any funds
deposited in or withdrawn from the borrower accounts, Collection Account,
Upper-Tier Distribution Account, Lower-Tier Distribution Account, Interest
Reserve Account, Excess Interest Distribution Account, Class Q Distribution
Account or any other account maintained by or on behalf of the Master Servicer
or the Special Servicer, nor will the Fiscal Agent be required to perform, or
be responsible for the manner of performance of, any of the obligations of the
Master Servicer or the Special Servicer under the Pooling Agreement.
In the event that the Master Servicer and the Trustee fail to make a
required Advance, the Fiscal Agent will be obligated to make such Advance,
provided that the Fiscal Agent will not be obligated to make any Advance that
it deems to be nonrecoverable. The Fiscal Agent shall be entitled to rely
conclusively on any determination by the Master Servicer, Special Servicer or
the Trustee, as applicable, that an Advance, if made, would not be recoverable.
The Fiscal Agent will be entitled to reimbursement for each Advance made by it
in the same manner and to the same extent as the Trustee and the Master
Servicer.
THE MASTER SERVICER
GMAC Commercial Mortgage Corporation ("GMACCM") will initially act as the
master servicer (in such capacity, the "Master Servicer"). The following
information has been provided by GMACCM. None of the Seller, the Trustee, the
Underwriter, or any of their respective affiliates takes any responsibility
therefor or makes any representation or warranty as to the accuracy or
completeness thereof.
GMACCM, a corporation organized under the laws of the State of California,
is a wholly-owned direct subsidiary of GMAC Mortgage Group, Inc., which in turn
is a wholly-owned direct subsidiary of General Motors Acceptance Corporation.
The principal offices of GMACCM are located at 650 Dresher Road, Horsham,
Pennsylvania 19044. Its telephone number is (215) 328-4622. As of June 30,
1998, GMACCM was the servicer of a portfolio of multifamily and commercial
mortgage loans totaling approximately $46 billion in aggregate outstanding
principal amounts. Neither the Master Servicer, its parent nor any of its
affiliates will guarantee the Certificates or the assets included in the Trust
Fund.
Pursuant to the terms of the Pooling Agreement, the Master Servicer will
be required to indemnify the Seller and the Trustee for any losses, fines,
judgments, costs and expenses incurred by them as a result of the Master
Servicer's willful misfeasance, bad faith or negligent failure to comply with
its duties and obligations under the Pooling Agreement.
SERVICING COMPENSATION AND PAYMENT OF EXPENSES
Pursuant to the Pooling Agreement, the Master Servicer will be entitled to
withdraw monthly from the Collection Account its portion of the Servicing Fee.
The monthly servicing fee (the "Servicing Fee") for any Distribution Date is an
amount per Interest Accrual Period equal to the sum for each Mortgage Loan of
the product of (i) a per annum rate equal to 0.1275% (or, with respect to the
Mortgage Loans identified on Annex A hereto as loan numbers O0148 and O0393,
0.2275%) (in each case, the "Servicing Fee Rate") and (ii) the Stated Principal
Balance of such Mortgage Loan, computed, for the same number of days respecting
which any related interest payment due or deemed due on the related Mortgage
Loan is computed under the terms of the related Mortgage Note and applicable
law. The Servicing Fee includes the compensation payable to the Master Servicer
and the Trustee Fee. With respect to any Distribution Date, to the extent that
there are Prepayment Interest Shortfalls with respect to Principal Prepayments
received during the related Collection Period, the Servicing Fee payable to the
Master Servicer with respect to all the Mortgage Loans (but not the fees
payable to the Trustee or Rating Agencies) for the related Distribution Date
shall be reduced up to the amount sufficient to fully offset such
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Prepayment Interest Shortfalls; provided, however, that in no event shall the
amount exceed a per annum rate equal to 0.04% of the Stated Principal Balance
of the Mortgage Loans for the related Collection Period, computed for the same
number of days respecting which any related interest payment on the related
Mortgage Loan would otherwise be computed under the terms of such Mortgage
Loan. The Master Servicer's portion of the Servicing Fee relating to each
Mortgage Loan will be retained (to the extent not otherwise offset by
Prepayment Interest Excesses) by the Master Servicer from payments and
collections (including insurance proceeds, condemnation proceeds and
liquidation proceeds) in respect of such Mortgage Loan. The Master Servicer
will also be entitled to retain as additional servicing compensation all
investment income earned on amounts on deposit in the Collection Account and
the Reserve Accounts (to the extent not payable to the related borrower under
the related Mortgage Loan or applicable law). The Servicing Fee includes
certain amounts which will be paid to the Rating Agencies for on-going
monitoring and surveillance of the Certificates by the Rating Agencies and for
certain filing fees and related expenses.
In addition, the Master Servicer will be entitled to receive, as
additional servicing compensation, to the extent permitted by applicable law
and the related Mortgage Loans, any late payment charges, assumption fees, loan
modification fees, extension fees, loan service transaction fees, beneficiary
statement charges or similar items (but not including any yield maintenance
charge or prepayment premiums), in each case to the extent received and not
required to be deposited or retained in the Collection Account pursuant to the
Pooling Agreement.
The Master Servicer will be required to pay all expenses incurred in
connection with its responsibilities under the Pooling Agreement (subject to
reimbursement as described herein), including all fees of any subservicers
retained by it.
SPECIAL SERVICER
GMACCM will initially be appointed as special servicer of the Mortgage
Loans, (in such capacity, the "Special Servicer"). The Special Servicer will,
among other things, oversee the resolution of non-performing Mortgage Loans and
act as disposition manager of REO Properties. The Pooling Agreement will
provide that although more than one Special Servicer may be appointed, only one
Special Servicer may specially service any Mortgage Loan.
The Special Servicer will be obligated to, among other things, oversee the
resolution of non-performing Mortgage Loans and act as disposition manager of
REO Properties. The Pooling Agreement provides that the Controlling Class
Representative may remove and replace the Special Servicer with another Special
Servicer acceptable to the Rating Agencies, provided, however, that the
Controlling Class Representative will not be able to remove and replace the
Series 1998-GL II Special Servicer.
Pursuant to the Pooling Agreement, the Special Servicer will be entitled
to certain fees, including a special servicing fee (and if the Special Servicer
is the Master Servicer, such fees will be in addition to the Servicing Fee),
payable with respect to each Interest Accrual Period, equal to the product of
(i) 1/12 times a per annum rate of 0.25% with respect to each Mortgage Loan and
(ii) the Stated Principal Balance of each related Specially Serviced Mortgage
Loan (the "Special Servicing Fee"); provided, that such amounts shall be
computed on the basis of the same principal amount and, in connection with any
partial interest payment, for the same period respecting which any related
interest payment due or deemed due on the related Mortgage Loan is computed.
The Special Servicer will be entitled, in addition to the Special Servicing
Fee, to receive a "Liquidation Fee" equal to the applicable Principal Recovery
Percentage of the amount equal to (x) the proceeds of the sale of any Mortgage
Loan or REO Property minus (y) any broker's commission and related brokerage
referral fees and to receive a "Rehabilitation Fee" with respect to any
Mortgage Loan which ceases to be specially serviced and has made three
consecutive Monthly Payments on or prior to the related Due Dates after the
Mortgage Loan has ceased to be a Specially Serviced Mortgage Loan in an amount
equal to the applicable Principal Recovery Percentage of the highest Stated
Principal Balance of such Mortgage Loan during the period in which it was
specially serviced; provided, however, that such Rehabilitation Fee shall be
due only once for each Mortgage Loan during the term of the Pooling Agreement.
The "Principal Recovery Percentage" will be equal to: (i) 0.75% with respect to
any Specially Serviced Mortgage Loan with a Stated Principal Balance
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greater than or equal to $50,000,000; and (ii) 1% with respect to any Specially
Serviced Mortgage Loan with a Stated Principal Balance less than $50,000,000.
However, no Liquidation Fee will be payable in connection with, or out of,
Liquidation Proceeds resulting from the purchase of any Specially Serviced
Mortgage Loan or REO Property (i) by any Responsible Party as described herein
under "Description of the Mortgage Pool--Representations and Warranties," (ii)
by the Master Servicer, the Seller or the Certificateholders as described
herein under "--Optional Termination; Optional Mortgage Loan Purchase," or
(iii) in certain other limited circumstances. Each of the foregoing fees, along
with certain expenses related to special servicing of a Mortgage Loan, shall be
payable out of funds otherwise available to make payments on the Certificates.
MASTER SERVICER AND SPECIAL SERVICER PERMITTED TO BUY CERTIFICATES
The Master Servicer and the Special Servicer will be permitted to purchase
any Class of Certificates. Such a purchase by the Master Servicer or the
Special Servicer could cause a conflict relating to the Master Servicer's or
the Special Servicer's duties pursuant to the Pooling Agreement and the Master
Servicer's or the Special Servicer's interest as a holder of Certificates,
especially to the extent that certain actions or events have a disproportionate
effect on one or more Classes of Certificates. The Pooling Agreement provides
that the Master Servicer or Special Servicer shall administer the Mortgage
Loans in accordance with the servicing standard set forth therein without
regard to ownership of any Certificate by the Master Servicer or the Special
Servicer or any affiliate thereof. Additionally, the Pooling Agreement provides
that (i) an affiliate of a borrower may not vote with respect to matters where
there is a potential conflict of interest, (ii) any Certificateholder that is
also the holder of any debt of any of the affiliates of any of the borrowers
under the Mortgage Loans may not vote with respect to selecting, or directing
the actions of the Special Servicer with respect to such Mortgage Loan, and
(iii) the Special Servicer may not be the holder of any debts of the affiliates
of the borrowers under the Mortgage Loans.
REPORTS TO CERTIFICATEHOLDERS
The Master Servicer is required to deliver to the Trustee prior to each
Distribution Date, and the Trustee is to deliver to each Certificateholder, the
Seller, each Rating Agency and, if requested, any potential investor in the
Certificates, on each Distribution Date, the following six reports:
(a) A "Comparative Financial Status Report" setting forth, to the extent
such information is provided by the related borrowers, among other things, the
occupancy, revenue, net operating income and DSCR for the Mortgage Loans as of
the current date for each of the following periods: (i) the most current
available year-to-date, (ii) the previous two full fiscal years, and (iii) the
"base year" (representing the original underwriting information used as of the
Cut-Off Date).
(b) A "Delinquent Loan Status Report" setting forth, among other things,
those Mortgage Loans which, as of the close of business on the Determination
Date immediately preceding the preparation of such report, were delinquent one
Collection Period, delinquent two Collection Periods, delinquent three or more
Collection Periods, current but specially serviced, or in foreclosure but not
REO Property.
(c) An "Historical Loan Modification Report" setting forth, among other
things, those Mortgage Loans which, as of the close of business on the
Determination Date immediately preceding the preparation of such report, have
been modified pursuant to the Pooling Agreement (i) during the related
Collection Period and (ii) since the Cut-Off Date, showing the original and the
revised terms thereof.
(d) An "Historical Loss Estimate Report" setting forth, among other
things, as of the close of business on the Determination Date immediately
preceding the preparation of such report, (i) the aggregate amount of
liquidation proceeds and liquidation expenses, both for the current period and
historically, and (ii) the amount of Realized Losses occurring during the
related Collection Period, set forth on a Mortgage Loan-by-Mortgage Loan basis.
(e) An "REO Status Report" setting forth, among other things, with respect
to each REO Property that was included in the Trust Fund as of the close of
business on the Determination Date immediately preceding the preparation of
such report, (i) the acquisition date of such REO Property, (ii) the amount
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of income collected with respect to any REO Property net of related expenses
and other amounts, if any, received on such REO Property during the related
Collection Period and (iii) the value of the REO Property based on the most
recent appraisal or other valuation thereof available to the Master Servicer as
of such date of determination (including any prepared internally by the Special
Servicer).
(f) A "Watch List" setting forth, among other things, any Mortgage Loan
that is in jeopardy of becoming a Specially Serviced Mortgage Loan and any
Healthcare Adviser Loan which has a debt service coverage ratio below 1.5x.
Subject to the receipt of necessary information from any subservicer, such
loan-by-loan reports will be made available electronically in the form of the
standard CSSA loan file and CSSA property file; provided, however, the Trustee
will provide Certificateholders with a written copy of such report upon
request. The information that pertains to Specially Serviced Mortgage Loans and
REO Properties reflected in such reports shall be based solely upon the reports
delivered by the Special Servicer to the Master Servicer at least one business
day following the Determination Date. Absent manifest error, none of the Master
Servicer, the Special Servicer or the Trustee shall be responsible for the
accuracy or completeness of any information supplied to it by a borrower or
third party that is included in any reports, statements, materials or
information prepared or provided by the Master Servicer, the Special Servicer
or the Trustee, as applicable.
The Master Servicer is also required to deliver to the Trustee the
following materials:
(a) Annually, on or before June 30 of each year, commencing with June 30,
1998, with respect to each Mortgaged Property and REO Property, an "Operating
Statement Analysis" together with copies of the operating statements and rent
rolls (but only to the extent the related borrower is required by the Mortgage
to deliver, or otherwise agrees to provide such information) for such Mortgaged
Property or REO Property as of the end of the preceding calendar year. The
Master Servicer (or the Special Servicer in the case of Specially Serviced
Mortgage Loans and REO Properties) is required to use its best reasonable
efforts to obtain said annual operating statements and rent rolls.
(b) Within thirty days of receipt by the Master Servicer (or within twenty
days of receipt from the Special Servicer with respect to any Specially
Serviced Mortgage Loan or REO Property) of annual operating statements, if any,
with respect to any Mortgaged Property or REO Property, an "NOI Adjustment
Worksheet" for such Mortgaged Property (with the annual operating statements
attached thereto as an exhibit), presenting the computations made in accordance
with the methodology described in the Pooling Agreement to "normalize" the full
year net operating income and debt service coverage numbers used by the Master
Servicer in the other reports referenced above.
The Trustee is to deliver a copy of each Operating Statement Analysis
report and NOI Adjustment Worksheet that it receives from the Master Servicer
to the Seller, the and each Rating Agency promptly after its receipt thereof.
Upon request, the Trustee will make such reports available to the
Certificateholders and the Special Servicer. Any Certificateholder and any
potential investor in the Certificates may obtain a copy of any NOI Adjustment
Worksheet for a Mortgaged Property or REO Property in the possession of the
Trustee upon request.
USE OF PROCEEDS
The net proceeds from the sale of the Certificates will be used by the
Seller to pay the purchase price of the Mortgage Loans.
CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS
The following discussion contains summaries of certain legal aspects of
mortgage loans in California (approximately 15.80% of the Mortgage Loans by
Initial Pool Balance), New York (approximately 8.78% of the Mortgage Loans by
Initial Pool Balance), Texas (approximately 8.47% of the Mortgage Loans by
Initial Pool Balance), Virginia (approximately 6.87% of the Mortgage Loans by
Initial Pool Balance) and Ohio (approximately 5.28% of the Mortgage Loans by
Initial Pool Balance) which are general in nature. The summaries do not purport
to be complete and are qualified in their entirety by reference to the
applicable federal and state laws governing the Mortgage Loans.
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California, New York, Texas, Virginia and Ohio and various other states
have imposed statutory prohibitions or limitations that limit the remedies of a
mortgagee under a mortgage or a beneficiary under a deed of trust. All of the
Mortgage Loans are nonrecourse loans as to which, in the event of default by a
borrower, recourse may be had only against the specific property pledged to
secure the Mortgage Loan and not against the borrower's other assets. Even if
recourse is available pursuant to the terms of the Mortgage Loan, certain
states have adopted statutes which impose prohibitions against or limitations
on such recourse. The limitations described below and similar or other
restrictions in other jurisdictions where Mortgaged Properties are located may
restrict the ability of the Master Servicer or the Special Servicer, as
applicable, to realize on the Mortgage Loans and may adversely affect the
amount and timing of receipts on the Mortgage Loans.
California statutes limit the right of the beneficiary to obtain a
deficiency judgment against the trustor (i.e., obligor) following the
non-judicial foreclosure sale under a deed of trust. A deficiency judgment is a
personal judgment against the obligor in most cases equal to the difference
between the amount due to the beneficiary and the fair market value of the
collateral. No deficiency judgment is permitted under California law following
a nonjudicial sale under the power of sale provision in a deed of trust. Other
California statutes require the beneficiary to exhaust the security afforded
under the deed of trust by foreclosure in an attempt to satisfy the full debt
before bringing a personal action (if otherwise permitted) against the obligor
for recovery of the debt except in certain cases involving environmentally
impaired real property. California case law has held that acts such as an
offset of an unpledged account or the application of rents from secured
property prior to foreclosure, under some circumstances, constitute violations
of such statutes. Violations of such statutes may result in the loss of some or
all of the security under the loan. Finally, other statutory provisions in
California limit any deficiency judgment (if otherwise permitted) against the
former trustor following a judicial sale to the excess of the outstanding debt
over the greater of (i) the fair market value of the property at the time of
the public sale or (ii) the amount of the winning bid in the foreclosure, and
give the borrower a one-year period within which to redeem the property.
California statutes also provide priority to certain tax liens over the lien of
previously recorded deeds of trust.
Under New York law, while a foreclosure may proceed either judicially or
non-judicially, nonjudicial foreclosures are virtually unused today. Under New
York law, upon default of a mortgage, a mortgagee is generally presented with
the choice of either proceeding in equity to foreclose upon the mortgaged
property or to proceed at law and sue on the note. New York law does not
require that the mortgagee must bring a foreclosure action before being
entitled to sue on the note. However, once having begun a foreclosure action or
an action to sue on the note or guaranty, a mortgagee is generally not
permitted to initiate the other without leave of court. New York does not
restrict a mortgagee from seeking a deficiency judgment. In order to obtain a
deficiency judgment, a series of procedural and substantive requirements must
be satisfied. In New York, liens for unpaid real estate taxes take priority
over the lien of a previously recorded mortgage.
Under Texas law, a deed of trust customarily is foreclosed by non-judicial
process; judicial process is generally not used. A mortgagee does not preclude
its ability to sue on a recourse note by instituting foreclosure proceedings.
Unless a longer period or other curative rights are provided by the loan
documents, at least 21 days notice prior to foreclosure is required and
foreclosure sales must be held on the first Tuesday of a calendar month. Absent
contrary provisions in the loan documents, deficiency judgments are obtainable
under Texas law. To determine the amount of any deficiency judgment, a borrower
is given credit for the greater of the actual sale price (excluding trustee's
and other allowable costs) or the fair market value of the property. Under a
relation-back theory, the entire amount of any mechanic's or materialmen's lien
takes priority over the lien of a deed of trust if the lien claimant began work
or delivered its first materials prior to recordation of the deed of trust,
provided that the loan affidavit is timely and properly perfected.
Under Ohio law, foreclosure of a mortgage can occur only through judicial
process. There is no private power of sale or strict foreclosure available in
Ohio. Foreclosure is regulated by statute and is subject to the court's
equitable powers. Mortgagees may sue both on the note and mortgage
S-141
<PAGE>
simultaneously and generally may recover a deficiency judgment unless the
mortgage loan is nonrecourse. Mortgagors have a nonwaivable statutory right of
redemption and the statutes further provide that the real estate generally
cannot be sold in foreclosure for less than two-thirds of its appraised value.
Mortgagors have no right of reinstatement. Ohio statutes also provide for
priority of liens for unpaid real estate taxes over the lien of a previously
recorded mortgage.
Under Virginia law, foreclosure of the lien of a deed of trust in Virginia
typically and most efficiently is accomplished by a non-judicial trustee's sale
under a power of sale provision in the deed of trust. Judicial foreclosure also
can be, but seldom is, used. In a non-judicial foreclosure, public notice of
the trustee's sale, containing certain information, must be given for the time
period prescribed in the deed of trust, but subject to statutory minimums.
After such notice, the trustee may sell the real estate. In a judicial
foreclosure, after notice to all interested parties, a full hearing and
judgment in favor of the lienholder, the court orders a foreclosure sale to be
conducted by a sheriff or court-appointed commissioner in chancery. In either
type of foreclosure sale, the borrower has no right to redeem the property. A
deficiency judgment for a recourse loan may be obtained. Further, under
Virginia law, for certain circumstances and for certain time periods, a
lienholder has the statutory right to obtain a court-appointed receiver, either
with or without notice of the borrower, to collect, protect and disburse the
real property's rents and revenues, and otherwise to maintain and preserve the
real property, pursuant to the court's instructions.
FEDERAL INCOME TAX CONSEQUENCES
Elections will be made to treat applicable portions of the Trust Fund and,
in the opinion of Cadwalader, Wickersham & Taft, special tax counsel to the
Seller, such portions of the Trust Fund will qualify, as two separate real
estate mortgage investment conduits (each, a "REMIC") (the "Upper-Tier REMIC"
and the "Lower-Tier REMIC," respectively) within the meaning of Code Section
860D. The Lower-Tier REMIC will hold the Mortgage Loans (exclusive of the
Excess Interest and the Default Interest), the Reserve Account, the Collection
Account, the Lower-Tier Distribution Account and any REO Property, and will
issue (i) certain uncertificated classes of regular interests (the "Lower-Tier
Regular Interests") to the Upper-Tier REMIC and (ii) the Class LR Certificates,
which will represent the sole class of residual interests in the Lower-Tier
REMIC. The Upper-Tier REMIC will hold the Lower-Tier Regular Interests and the
Upper-Tier Distribution Account in which distributions thereon will be
deposited and will issue (i) classes of regular interests represented by the
Regular Certificates and (ii) the Class R Certificates, which will represent
the sole class of residual interests in the Upper-Tier REMIC. In addition, the
Class A-2, Class A-3, Class B, Class C, Class D, Class E, Class F, Class G and
Class H Certificates will represent pro rata undivided beneficial interests in
designated portions of the Excess Interest and the related portions of the
Excess Interest Distribution Account, which portion of the Trust Fund will be
treated as part of a grantor trust for federal income tax purposes. Although
holders of these Classes of Certificates will be required to allocate their
purchase price between their interests in the regular interests in the
Upper-Tier REMIC and their beneficial interests in Excess Interest based on the
relative fair market values of each, it is anticipated that the rights to
Excess Interest will have negligible value as of the Closing Date. The Class Q
Certificates will represent pro rata, undivided, beneficial interests in the
portion of the Trust Fund consisting of the AIMCO Multifamily Pool Conditional
Debt, the Default Interest (subject to the obligation to pay interest on
Advances) and the Class Q Distribution Account, which portion will also be part
of the grantor trust for federal income tax purposes. The Seller or an
affiliate of the Seller will be treated as the beneficial owner of the
Reinvestment Enhancement Instrument.
The Offered Certificates will be treated as "real estate assets" under
Code Section 856(c)(4)(A), to the extent that the assets of the REMICs are so
treated. The interest on the Offered Certificates will be "interest on
obligations secured by mortgages on real property" described in Code Section
856(c)(3)(B) for a real estate investment trust, in the same proportion that
the income of the REMICs is so treated.
A beneficial owner's interest in an Offered Certificate will qualify for
the foregoing treatments under Sections 856(c)(4)(A) and 856(c)(3)(B) in their
entirety if at least 95% of the REMICs' assets qualify for such treatment, and
otherwise will qualify to the extent of the REMICs' percentage of such assets.
A Mortgage Loan that has been defeased with U.S. Treasury securities will not
qualify for such treatment.
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<PAGE>
A beneficial owner's interest in an Offered Certificate will constitute "loans
. . . secured by an interest in real property which is . . . residential real
property" within the meaning of Code Section 7701(a)(19)(C)(v) in the case of a
domestic building and loan association only to the extent of the percentage of
the REMICs' assets consisting of loans secured by multifamily properties and
healthcare properties. The Lower-Tier REMIC and the Upper-Tier REMIC will be
treated as one REMIC solely for the purpose of making the foregoing
determinations.
The regular interests represented by the Offered Certificates generally
will be treated as newly originated debt instruments for federal income tax
purposes. Beneficial owners of the Offered Certificates will be required to
report income on the regular interests represented by the Offered Certificates
in accordance with the accrual method of accounting and any income from Excess
Interest as such amounts are accrued by the Trust Fund, based on their own
methods of accounting. See "Federal Income Tax Consequences--REMIC
Certificates--Income from Regular Certificates--General" in the Prospectus.
It is anticipated that the regular interests represented by the Class A-1,
Class A-2, Class A-3 and Class B Certificates will be issued at a premium and
that the regular interest represented by the Class C, Class D and Class E
Certificates will be issued with original issue discount for federal income tax
purposes.
Although unclear for federal income tax purposes, it is anticipated that
the Class X Certificates will be treated as issued with original issue discount
in an amount equal to the excess of all distributions of interest expected to
be received thereon over their respective issue prices (including accrued
interest). Any "negative" amounts of original issue discount ("OID") on the
Class X Certificates attributable to rapid prepayment with respect to the
Mortgage Loans will not be deductible currently, but may be offset against
future positive accruals of original issue discount, if any. Finally, a holder
of a Class X Certificate may be entitled to a loss deduction to the extent it
becomes certain that such holder will not recover a portion of its basis in
such Certificate, assuming no further prepayments. In the alternative, it is
possible that rules similar to the "noncontingent bond method" of the
contingent interest rules in the OID regulations, as amended on June 12, 1996,
may be promulgated with respect to the Class X Certificates. Under the
noncontingent bond method, if the interest payable for any period is greater or
less than the amount projected, the amount of income included for that period
would be either increased or decreased accordingly. Any net reduction in the
income accrual for the taxable year below zero (a "Negative Adjustment") would
be treated by a Certificateholder as ordinary loss to the extent of prior
income accruals and would be carried forward to offset future interest
accruals. At maturity, any remaining Negative Adjustment would be treated as a
loss on retirement of the Certificate. The legislative history of relevant
provisions of the Internal Revenue Code of 1986, as amended (the "Code"),
indicates, however, that negative amounts of original issue discount on an
instrument such as a REMIC regular interest may not give rise to taxable losses
in any accrual period prior to the instrument's disposition or retirement.
Thus, it is not clear whether any losses resulting from a Negative Adjustment
would be recognized currently or be carried forward until disposition or
retirement of the debt obligation. However, unless and until otherwise required
under applicable regulations, the Seller does not intend to treat the payments
of interest on the Class X Certificates as contingent interest.
The prepayment assumption that will be used to accrue original issue
discount, to amortize premium of an initial owner, or to determine whether
original issue discount is de minimis will be as described under "Yield,
Prepayment and Maturity Considerations--Weighted Average Life of the Offered
Certificates" above.
Although not free from doubt, it is anticipated that any prepayment
premiums and yield maintenance charges will be treated as ordinary income to
the extent allocable to beneficial owners of the Offered Certificates as such
amounts become due to such beneficial owners.
S-143
<PAGE>
STATE TAX CONSIDERATIONS
In addition to the federal income tax consequences described in "Federal
Income Tax Consequences," potential investors should consider the state income
tax consequences of the acquisition, ownership, and disposition of the Offered
Certificates. State income tax law may differ substantially from the
corresponding federal law, and this discussion does not purport to describe any
aspect of the income tax laws of any state. Therefore, potential investors
should consult their own tax advisors with respect to the various tax
consequences of investments in the Offered Certificates.
ERISA CONSIDERATIONS
A fiduciary of any retirement plan or other employee benefit plan or
arrangement, including individual retirement accounts and annuities, Keogh
plans and collective investment funds and separate accounts in which such
plans, accounts or arrangements are invested, and any entity whose underlying
assets include assets of such a plan by reason of any such plan's investment in
the entity that is subject to the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or Section 4975 of the Code (each, a "Plan") should
carefully review with its legal advisors whether the purchase or holding of any
class of Offered Certificates could give rise to a transaction that is
prohibited or is not otherwise permitted either under ERISA or Section 4975 of
the Code.
The U.S. Department of Labor issued an individual exemption, Prohibited
Transaction Exemption 89-88 (the "Exemption"), on October 17, 1989 to Goldman,
Sachs & Co., as subsequently amended, which generally exempts from the
application of certain prohibited transaction provisions of Sections 406 and
407 of ERISA, and the excise taxes imposed on such prohibited transactions
pursuant to Sections 4975(a) and (b) of the Code and the civil penalties
imposed on such prohibited transactions pursuant to Section 502(i) of ERISA,
certain transactions, among others, relating to the servicing and operation of
mortgage pools and the purchase, sale and holding of mortgage pass-through
certificates underwritten by an Underwriter (as hereinafter defined), provided
that certain conditions set forth in the Exemption are satisfied. For purposes
of this Section "ERISA Considerations", the term "Underwriter" shall include
(a) Goldman, Sachs & Co., (b) any person directly or indirectly, through one or
more intermediaries, controlling, controlled by or under common control with
Goldman, Sachs & Co. and (c) any member of the underwriting syndicate or
selling group of which a person described in (a) or (b) is a manager or
co-manager with respect to the Class A-1, Class A-2 and Class A-3 Certificates.
The Exemption sets forth six general conditions which must be satisfied
for a transaction involving the purchase, sale and holding of such classes of
Offered Certificates to be eligible for exemptive relief thereunder. First, the
acquisition of such classes of Offered Certificates by a Plan must be on terms
(including the price) that are at least as favorable to the Plan as they would
be in an arm's-length transaction with an unrelated party. Second, the rights
and interests evidenced by such classes of Offered Certificates must not be
subordinate to the rights and interests evidenced by the other certificates of
the same trust. Third, such classes of Offered Certificates at the time of
acquisition by the Plan must be rated in one of the three highest generic
rating categories by S&P, Moody's Investors Service, Inc., Duff & Phelps Credit
Rating Co. or Fitch. Fourth, the Trustee cannot be an affiliate of any member
of the "Restricted Group," which consists of the Underwriter, the Seller, the
Master Servicer, the Special Servicer, any entity that provides insurance or
other credit support to the Trust Fund, any borrower with respect to Mortgage
Loans constituting more than 5% of the aggregate unamortized principal balance
of the Mortgage Loans as of the date of initial issuance of such classes of
Offered Certificates and any affiliate of any of the foregoing entities. Fifth,
the sum of all payments made to and retained by the Underwriter must represent
not more than reasonable compensation for underwriting such classes of Offered
Certificates; the sum of all payments made to and retained by the Seller
pursuant to the assignment of the Mortgage Loans to the Trust Fund must
represent not more than the fair market value of such obligations; and the sum
of all payments made to and retained by the Master Servicer and the Special
Servicer must represent not more than reasonable compensation for such person's
services under the Agreements and reimbursement of such person's reasonable
expenses in connection therewith. Sixth, the investing Plan must be an
accredited investor as defined in Rule 501 (a)(1) of Regulation D of the
Securities and Exchange Commission under the Securities Act of 1933, as
amended.
S-144
<PAGE>
Because the Class A-1, Class A-2 and Class A-3 Certificates are not
subordinate to any other class of Certificates, the second general condition
set forth above is satisfied with respect to such Certificates. It is a
condition of the issuance of such classes of Certificates that they be rated
"AAA" by S&P and Fitch. A fiduciary of a Plan contemplating purchasing any such
class of Certificates in the secondary market must make its own determination
that at the time of such acquisition, any such class of Certificates continues
to satisfy the third general condition set forth above. The Seller expects that
the fourth general condition set forth above will be satisfied with respect to
each of such classes of Certificates. A fiduciary of a Plan contemplating
purchasing any such class of Certificate must make its own determination that
the first, third, fifth and sixth general conditions set forth above will be
satisfied with respect to any such class of Certificate.
The Class B, Class C, Class D and Class E Certificates do not satisfy the
second condition described above because they are subordinated to the Class A
and Class X Certificates, and furthermore the Class D and Class E Certificates
are not expected to satisfy the third condition described above. Accordingly,
the Class B, Class C, Class D and Class E Certificates may not be purchased
with the assets of a Plan, unless such purchase is made pursuant to Prohibited
Transaction Exemption 95-60, described below, or another prohibited transaction
exemption.
Before purchasing any class of Certificate, a fiduciary of a Plan should
itself confirm (a) that such Certificates constitute "certificates" for
purposes of the Exemption and (b) that the specific and general conditions of
the Exemption and the other requirements set forth in the Exemption would be
satisfied. In addition to making its own determination as to the availability
of the exemptive relief provided in the Exemption, the Plan fiduciary should
consider the availability of any other prohibited transaction exemptions.
Purchasers using insurance company general account funds to effect such
purchase should consider the availability of Section III of Prohibited
Transaction Exemption 95-60 (60 Fed. Reg. 35925, July 12, 1995) issued by the
U.S. Department of Labor.
Any Plan fiduciary considering whether to purchase any class of
Certificate on behalf of a Plan should consult with its counsel regarding the
applicability of the fiduciary responsibility and prohibited transaction
provisions of ERISA and the Code to such investment. See "ERISA Considerations"
in the Prospectus.
LEGAL INVESTMENT
None of the Certificates will be "mortgage related securities" within the
meaning of the Secondary Mortgage Market Enhancement Act of 1984, as amended
("SMMEA"). In addition, institutions whose investment activities are subject to
review by certain regulatory authorities may be or may become subject to
restrictions, which may be retroactively imposed by such regulatory
authorities, on the investment by such institutions in certain forms of
mortgage-backed securities.
No representations are made as to the proper characterization of the
Offered Certificates for legal investment, financial institution regulatory or
other purposes, or as to the ability of particular investors to purchase the
Offered Certificates under applicable legal investment restrictions. These
uncertainties may adversely affect the liquidity of the Offered Certificates.
Accordingly, all institutions whose investment activities are subject to legal
investment laws and regulations, regulatory capital requirements or review by
regulatory authorities should consult with their own legal advisors in
determining whether and to what extent the Offered Certificates constitute a
legal investment or are subject to investment, capital or other restrictions.
See "Legal Investment" in the Prospectus.
UNDERWRITING
The Seller and Goldman, Sachs & Co. ("Goldman, Sachs") have entered into
an underwriting agreement with respect to the Offered Certificates. Subject to
certain conditions Goldman, Sachs has agreed to purchase all the Offered
Certificates.
The Seller estimates that its share of the total expenses of the offering,
excluding underwriting discounts and commissions, will be approximately
$5,500,000.
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<PAGE>
The Seller has agreed to indemnify Goldman, Sachs against certain
liabilities, including liabilities under the Securities Act of 1933.
The Offered Certificates are a new issue of securities with no established
trading market. The Seller has been advised by Goldman, Sachs that Goldman,
Sachs intends to make a market in the Offered Certificates but is not obligated
to do so and may discontinue market making at any time without notice. No
assurance can be given as to the liquidity of the trading market for the
Offered Certificates.
In connection with the offering, Goldman, Sachs may purchase and sell the
Offered Certificates in the open market. These transactions may include
purchases to cover short sales, stabilizing transactions and purchases to cover
portions created by short sales. Short sales involve the sale by Goldman, Sachs
of a greater number of Certificates than they are required to purchase in the
offering. Stabilizing transactions consist of certain bids or purchases made
for the purpose of preventing or retarding a decline in the market price of the
Certificates while the offering is in progress.
Goldman, Sachs also may impose a penalty bid. This occurs when a
particular broker-dealer repays to Goldman, Sachs a portion of the underwriting
discount received by it because the representatives have repurchased
Certificates sold by or for the account of Goldman, Sachs in stabilizing or
short covering transactions.
These activities by Goldman, Sachs may stabilize, maintain or otherwise
affect the market price of the Certificates. As a result, the price of the
Certificates may be higher than the price that otherwise might exist in the
open market. If these activities are commenced, they may be discontinued by
Goldman, Sachs at any time. These transactions may be effected in the
over-the-counter market or otherwise.
Goldman, Sachs is an affiliate of the Seller and GSMC, a Loan Seller. In
addition, an affiliate of Goldman, Sachs is a limited partner in ACMFLP, one of
the Responsible Parties.
The Offered Certificates are offered by Goldman, Sachs when, as and if
issued by the Seller, delivered to and accepted by Goldman, Sachs and subject
to its right to reject orders in whole or in part. It is expected that delivery
of the Offered Certificates will be made in book-entry form through the
facilities of DTC against payment therefor on or about October 29, 1998, which
is the fourth business day following the date of pricing of the Offered
Certificates.
LEGAL MATTERS
The validity of the Offered Certificates and certain federal income tax
matters will be passed upon for the Seller and the Underwriter by Cadwalader,
Wickersham & Taft, New York, New York. Certain legal matters will be passed
upon for ACLI, ACMFLP and Falcon by Andrews & Kurth L.L.P., Dallas, Texas.
RATINGS
It is a condition to the issuance of each Class of Offered Certificates
that they be rated as follows by Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies, Inc. ("S&P") and Fitch IBCA, Inc. ("Fitch" and,
together with S&P, the "Rating Agencies"), respectively:
<TABLE>
<CAPTION>
CLASS RATING
- ------------------------------- ----------
<S> <C>
Class A-1 ................... AAA/AAA
Class A-2 ................... AAA/AAA
Class A-3 ................... AAA/AAA
Class X ..................... AAAr/AAA
Class B ..................... AA/AA
Class C ..................... A/A
Class D ..................... BBB/BBB
Class E ..................... BBB-/BBB-
</TABLE>
The ratings on mortgage pass-through certificates address the likelihood
of the receipt by holders thereof of payments to which they are entitled
including the receipt of all principal payments by the Rated
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<PAGE>
Final Distribution Date. Such ratings take into consideration the credit
quality of the mortgage pool, structural and legal aspects associated with the
certificates, and the extent to which the payment stream in the mortgage pool
is adequate to make payments required under the certificates. S&P assigns the
additional rating of "r" to highlight classes of securities that S&P believes
may experience high volatility or high variability in expected returns due to
non-credit risks. Such ratings on the Offered Certificates do not, however,
constitute a statement regarding frequency or likelihood of prepayments
(whether voluntary or involuntary) of the Mortgage Loans, or the degree to
which such prepayments might differ from those originally anticipated, or the
likelihood of the collection of prepayment premiums, excess interest, default
interest, yield maintenance charges, or the tax treatment of the Certificates,
and do not address the possibility that Certificateholders might suffer a lower
than anticipated yield. A rating on the Class X Certificates does not address
the possibility that the Holders of such Certificates may fail to recover fully
their initial investments due to a rapid rate of prepayments, defaults or
liquidations. See "Risk Factors."
There can be no assurance as to whether any rating agency not requested to
rate the Offered Certificates will nonetheless issue a rating and, if so, what
such rating would be. A rating assigned to the Offered Certificates by a rating
agency that has not been requested by the Seller to do so may be lower than the
rating assigned by S&P or Fitch pursuant to the Seller's request.
The rating of the Offered Certificates should be evaluated independently
from similar ratings on other types of securities. A security rating is not a
recommendation to buy, sell or hold securities and may be subject to downgrade,
qualification or withdrawal at any time by the assigning rating agency. Each
security rating should be evaluated independently of any other security rating.
A security rating does not address the frequency or likelihood of prepayments
(whether voluntary or involuntary) of Mortgage Loans, or the corresponding
effect on the yield to investors.
The ratings do not address the fact that the Pass-Through Rates on the
Class D and Class E Certificates, to the extent that they are based on the
weighted average interest rate of the mortgage loans, may be affected by
changes therein.
S-147
<PAGE>
INDEX OF SIGNIFICANT DEFINITIONS
<TABLE>
<S> <C>
30/360 basis ............................................... S-11
ACLI ....................................................... S-40
ACLI Loans ................................................. S-40
ACLP ....................................................... S-40
ACLP Loans ................................................. S-40
ACMFLP ..................................................... S-40
ACMFLP Loans ............................................... S-40
ADA ........................................................ S-31
Advance Rate ............................................... S-121
Advances ................................................... S-14, S-120
AEN ........................................................ S-66
AIMCO ...................................................... S-59
AIMCO Individual Multifamily Pool Loan ..................... S-58
AIMCO Multifamily Junior Loan .............................. S-62
AIMCO Multifamily Junior Mortgagee ......................... S-62
AIMCO Multifamily Junior Notes ............................. S-62
AIMCO Multifamily Pool Agreed Valuation Amount ............. S-58
AIMCO Multifamily Pool Borrower ............................ S-58
AIMCO Multifamily Pool Conditional Debt .................... S-35
AIMCO Multifamily Pool Debt Service Coverage Ratio ......... S-65
AIMCO Multifamily Pool Expenses ............................ S-66
AIMCO Multifamily Pool Face Amount ......................... S-58
AIMCO Multifamily Pool General Partners .................... S-58
AIMCO Multifamily Pool Loan ................................ S-40, S-58
AIMCO Multifamily Pool Management Agreements ............... S-61
AIMCO Multifamily Pool Manager ............................. S-59
AIMCO Multifamily Pool Minimum Loan to Value Ratio ......... S-65
AIMCO Multifamily Pool NOI ................................. S-66
AIMCO Multifamily Pool Notes ............................... S-58
AIMCO Multifamily Pool Payment Differential ................ S-62
AIMCO Multifamily Pool Plan ................................ S-58
AIMCO Multifamily Pool Properties .......................... S-58
AIMCO Multifamily Pool Reinvestment Yield .................. S-62
AIMCO Multifamily Pool Revised Plan ........................ S-58
AIMCO Prepayment Amount .................................... S-61
Allocated Loan Amount ...................................... S-41
ALTA ....................................................... S-46
AMC ........................................................ S-21
Americold .................................................. S-48
Americold Pool Borrower .................................... S-47
Americold Pool Collection Period ........................... S-55
Americold Pool Debt Service Coverage Ratio ................. S-55
Americold Pool Defeasance Date ............................. S-52
Americold Pool Defeasance Deposit .......................... S-52
Americold Pool Deposit Account ............................. S-55
Americold Pool Due Date .................................... S-51
Americold Pool Initial Interest Rate ....................... S-51
Americold Pool Loan ........................................ S-47
Americold Pool Local Account ............................... S-55
</TABLE>
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<PAGE>
<TABLE>
<S> <C>
Americold Pool Low Debt Service Application Event .......... S-55
Americold Pool Low Debt Service Reserve Account ............ S-54
Americold Pool Low Debt Service Return Event ............... S-55
Americold Pool Low Debt Service Trigger Event .............. S-55
Americold Pool Master Lease ................................ S-50
Americold Pool Master Lease Installment .................... S-56
Americold Pool Master Lease Installment Balance ............ S-56
Americold Pool Master Lessee ............................... S-50
Americold Pool Master Lessor ............................... S-50
Americold Pool Maturity Date ............................... S-51
Americold Pool Minimum Rent ................................ S-50
Americold Pool Monthly Debt Service Payment Amount ......... S-51
Americold Pool Net Cash Flow ............................... S-55
Americold Pool Note A ...................................... S-47
Americold Pool Note B ...................................... S-47
Americold Pool Operating Account ........................... S-55
Americold Pool Properties .................................. S-47
Americold Pool Property Management Agreement ............... S-50
Americold Pool Receipts .................................... S-55
Americold Pool Release Amount .............................. S-51
Annual Debt Service ........................................ A-1
Anticipated Repayment Date ................................. S-34
Appraisal Reduction Amount ................................. S-95
Appraisal Reduction Event .................................. S-95
Appraised Value ............................................ A-2
Archon Loans ............................................... S-40
ARD Loans .................................................. S-43
Asset Status Report ........................................ S-131
Available Funds ............................................ S-83
Balloon Mortgage Loan ...................................... S-42
Balloon Payment ............................................ S-34
Bankruptcy Code ............................................ S-22
Base Interest Fraction ..................................... S-92
Business Day ............................................... S-83
CBE ........................................................ S-108
CDHS ....................................................... S-28
CEDEL Participants ......................................... S-97
CERCLA ..................................................... S-31
Certificate Owners ......................................... S-98
Certificate Principal Amount ............................... S-82
Certificate Registrar ...................................... S-96
Certificateholder .......................................... S-96
Certificates ............................................... S-7, S-10
CESCR LP ................................................... S-74
Class ...................................................... S-82
Class A Certificates ....................................... S-82
Class Q Distribution Account ............................... S-122
Closing Date ............................................... S-8
Code ....................................................... S-143
Co-Lender Agreement ........................................ S-38, S-54
Collection Account ......................................... S-121
</TABLE>
S-149
<PAGE>
<TABLE>
<S> <C>
Collection Period ......................................... S-85
Commission ................................................ S-136
Controlling Class ......................................... S-133
Controlling Class Representative .......................... S-133
CPC Loans ................................................. S-40
CPR ....................................................... S-102
Cross-over Date ........................................... S-90
Cut-Off Date .............................................. S-8
Cut-Off Date Balance ...................................... S-40
Cut-Off Date LTV Ratio .................................... A-1
Debt Service Coverage Ratio ............................... S-9, A-1
Default Interest .......................................... S-85
Default Prepayment Date ................................... S-62
Default Rate .............................................. S-85
Defeasance Deposit ........................................ S-44
Defeasance Loans .......................................... S-44
Defeasance Lock-out Period ................................ S-44
Defeasance Option ......................................... S-44
Definitive Certificate .................................... S-95
Depositories .............................................. S-96
Determination Date ........................................ S-85
Distribution Date ......................................... S-83
Distribution of Year of Maturity .......................... S-29
DSCR ...................................................... S-41, A-1
DTC ....................................................... S-7
Due Date .................................................. S-42
Eligible Bank ............................................. S-122
EPT ....................................................... S-66
EPT Capital Reserve Account ............................... S-72
EPT Defeasance Deposit .................................... S-72
EPT Deposit Account ....................................... S-73
EPT Low Debt Service Account .............................. S-72
EPT Low Debt Service Application Event .................... S-73
EPT Low Debt Service Reserve Trigger Event ................ S-73
EPT Low Debt Service Return Event ......................... S-73
EPT Low Debt Service Trigger Period ....................... S-73
EPT Master Lease .......................................... S-69
EPT Master Lease Tenant ................................... S-69
EPT Monthly Payment ....................................... S-71
EPT Pool Borrower ......................................... S-66
EPT Pool Initial Interest Rate ............................ S-71
EPT Pool Loan ............................................. S-66
EPT Pool Maturity Date .................................... S-71
EPT Pool Properties ....................................... S-66
EPT Tax, Insurance and Ground Lease Escrow Period ......... S-72
ERISA ..................................................... S-144
ERISA Considerations ...................................... S-144
ESA ....................................................... S-31
Euroclear Participants .................................... S-97
Event of Default .......................................... S-126
Excess Cashflow ........................................... S-44
</TABLE>
S-150
<PAGE>
<TABLE>
<S> <C>
Excess Interest .............................. S-44, S-86
Excess Interest Distribution Account ......... S-122
Excess Prepayment Interest Shortfall ......... S-94
Excess Rate .................................. S-86
Exemption .................................... S-144
Falcon ....................................... S-7
Falcon Loan .................................. S-40
Fashion Valley Theater ....................... S-68
Fifteenth Skyline ............................ S-74
FIRREA ....................................... S-46
Fiscal Agent ................................. S-8
Fitch ........................................ S-16, S-146
Fixed Voting Rights Percentage ............... S-128
Form 8-K ..................................... S-47
GMACCM ....................................... S-137
Goldman, Sachs ............................... S-145
Group 1 ...................................... S-8
Group 2 ...................................... S-8
GSMC ......................................... S-7
GSMC Loans ................................... S-40
HCFA ......................................... S-28
Healthcare Adviser ........................... S-133
Healthcare Adviser Fee ....................... S-133
Healthcare Adviser Loans ..................... S-133
Holders ...................................... S-98
Indirect Participants ........................ S-96
Initial Pool Balance ......................... S-8, S-40
Initial Rate ................................. S-43
Interest Accrual Amount ...................... S-86
Interest Accrual Period ...................... S-86
Interest Distribution Amount ................. S-86
Interest Reserve Account ..................... S-121
Interest Shortfall ........................... S-86
Joint Venture ................................ S-48
Liquidation Fee .............................. S-138
Loan Group ................................... S-8
Loan Sellers ................................. S-40
Loan-to-Value Ratio .......................... S-41
Lower-Tier Distribution Account .............. S-121
Lower-Tier Regular Interests ................. S-142
Lower-Tier REMIC ............................. S-142
LTV .......................................... S-41
LTV at Maturity .............................. S-41
Maeril ....................................... S-59
MAI .......................................... S-95
Master Servicer .............................. S-137
Master Servicer Remittance Date .............. S-120
Maturity Date LTV ............................ A-2
Modeling Assumptions ......................... S-102
Monthly Payment .............................. S-84
Moody's ...................................... S-72
</TABLE>
S-151
<PAGE>
<TABLE>
<S> <C>
Mortgage .................................... S-40
Mortgage Loans .............................. S-40
Mortgage Note ............................... S-40
Mortgage Pool ............................... S-8
Mortgage Rate ............................... S-87
Mortgaged Property .......................... S-40
Negative Adjustment ......................... S-143
Net Cash Flow ............................... A-2
Net Default Interest ........................ S-85
Net Mortgage Rate ........................... S-87
Net REO Proceeds ............................ S-85
Ninth Skyline ............................... S-74
Notional Amount ............................. S-83
Occupancy ................................... A-2
Offered Certificates ........................ S-82
OID ......................................... S-143
One Skyline Tower ........................... S-74
Originators ................................. S-40
Other Americold Pool Loan ................... S-38, S-54
Other Trustee ............................... S-38, S-54
PAR ......................................... S-46
Participants ................................ S-95
Pass-Through Rate ........................... S-10, S-86
Percentage Interest ......................... S-83
Permitted Investments ....................... S-122
P&I Advance ................................. S-13, S-120
Plan ........................................ S-98, S-144
PML ......................................... S-48
Pooling Agreement ........................... S-117
Prepayment Interest Excess .................. S-93
Prepayment Interest Shortfall ............... S-93
Prepayment Period ........................... S-85
Prepayment Premiums ......................... S-13
Prime Rate .................................. S-121
Principal Distribution Amount ............... S-88
Principal Prepayments ....................... S-85
Principal Recovery Percentage ............... S-138
Principal Shortfall ......................... S-88
Private Certificates ........................ S-10, S-82
Property Advances ........................... S-14, S-120
Property Condition Reports .................. S-68
Rated Final Distribution Date ............... S-102
Rating Agencies ............................. S-146
Realized Loss ............................... S-93
Record Date ................................. S-83
Regular Certificates ........................ S-87
Rehabilitation Fee .......................... S-138
Reinvestment Enhancement Instrument ......... S-91
Release Date ................................ S-44
REMIC ....................................... S-142
REO Account ................................. S-82
</TABLE>
S-152
<PAGE>
<TABLE>
<S> <C>
REO Mortgage Loan ............................................ S-88
REO Property ................................................. S-82
Repurchase Price ............................................. S-85
Reserve Account .............................................. S-91
Responsible Party ............................................ S-42
Restricted Group ............................................. S-144
Revised Rate ................................................. S-43
Rules ........................................................ S-97
SDDS ......................................................... S-67
Seller ....................................................... S-7
Sequential Pay Certificates .................................. S-82
Series 1998-GL II ............................................ S-38, S-54
Series 1998-GL II Master Servicer ............................ S-118
Series 1998-GL II Pooling Agreement .......................... S-118
Series 1998-GL II Special Servicer ........................... S-118
Servicing Compensation ....................................... S-84
Servicing Fee ................................................ S-137
Servicing Fee Rate ........................................... S-137
Servicing Standard ........................................... S-118
Similar Law .................................................. S-98
Skyline City Pool Borrowers .................................. S-74
Skyline City Pool Defeasance Deposit ......................... S-77
Skyline City Pool Deposit Account ............................ S-80
Skyline City Pool Initial Interest Rate ...................... S-77
Skyline City Pool Loan ....................................... S-74
Skyline City Pool Lockbox Trigger Event ...................... S-80
Skyline City Pool Low Debt Service Application Event ......... S-79
Skyline City Pool Low Debt Service Reserve Account ........... S-79
Skyline City Pool Low Debt Service Return Event .............. S-79
Skyline City Pool Low Debt Service Trigger Event ............. S-79
Skyline City Pool Management Agreements ...................... S-76
Skyline City Pool Manager .................................... S-74
Skyline City Pool Maturity Date .............................. S-77
Skyline City Pool Properties ................................. S-74
Skyline City Pool Property Level Sweep Account ............... S-80
Skyline City Pool Release Amount ............................. S-78
SMMEA ........................................................ S-145
S&P .......................................................... S-16, S-146
Special Servicer ............................................. S-138
Special Servicer's Appraisal Reduction Estimate .............. S-95
Special Servicing Fee ........................................ S-138
Specially Serviced Mortgage Loan ............................. S-119
Stated Principal Balance ..................................... S-87
Subordinate Debt ............................................. S-32
Terms and Conditions ......................................... S-97
Three Skyline Place .......................................... S-74
Total Americold Pool Loan .................................... S-47
Treasury Rate ................................................ S-43
Trust Fund ................................................... S-40
Trustee ...................................................... S-7
Trustee Fee .................................................. S-135
</TABLE>
S-153
<PAGE>
<TABLE>
<S> <C>
Trustee Fee Rate .................................... S-135
Underwritten DSCR ................................... A-1
Underwritten NOI .................................... A-2
Unscheduled Payments ................................ S-85
Updated Appraisal ................................... S-128
Upper-Tier Distribution Account ..................... S-121
Upper-Tier REMIC .................................... S-142
URS ................................................. S-48
U/W NCF ............................................. A-2
U/W NOI ............................................. A-2
Voting Rights ....................................... S-128
WAC Rate ............................................ S-87
Weighted Average Original Amortization Term ......... S-41
Withheld Amounts .................................... S-122
YM .................................................. A-2
</TABLE>
S-154
<PAGE>
ANNEX A
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
Annex A hereto sets forth certain information with respect to the Mortgage
Loans and Mortgaged Properties. Where a Mortgage Loan is secured by multiple
properties, statistical information in this Annex A relating to geographical
locations and property types of the mortgaged properties is based on the loan
amount allocated to such property. Such allocation, where not stated in the
Mortgage Loan documents, is generally based on the relative appraised values of
such properties. In addition, wherever information is presented in this Annex A
with respect to LTVs or DSCRs, the LTV or DSCR of each Mortgaged Property
securing a Mortgage Loan secured by multiple Mortgaged Properties (other than
the Americold Pool Loan, the AIMCO Multifamily Pool Loan, the EPT Pool Loan and
the Skyline City Pool Loan) is assumed to be the weighted average LTV or DSCR
of such Mortgage Loan. With respect to the Americold Pool Loan, the AIMCO
Multifamily Pool Loan, the EPT Pool Loan and the Skyline City Pool Loan,
information presented in this Annex A relating to LTVs or DSCRs of the related
Mortgaged Properties is based upon allocations set forth in the related
Mortgage Loan documents or allocations made based upon Appraised Value. Because
individual component loans of the AIMCO Multifamily Pool Loan have been
allocated to both Group 1 Mortgage Loans and Group 2 Mortgage Loans, for
purposes of this Annex A the aggregate number of Mortgage Loans in the Mortgage
Pool does not reflect the aggregate of Group 1 and Group 2 Mortgage Loans. The
statistics in Annex A were primarily derived from information provided to the
Seller by each Responsible Party, which information may have been obtained from
the borrowers without independent verification except as noted.
1. "1996 NOI" and "1997 NOI" (which is for the period ending as of the
date specified in Annex A) is the net operating income for a Mortgaged Property
as established by information provided by the borrowers, except that in certain
cases such net operating income has been adjusted by removing certain
non-recurring expenses and revenue or by certain other normalizations. 1996 NOI
and 1997 NOI do not necessarily reflect accrual of certain costs such as taxes
and capital expenditures and do not reflect non-cash items such a depreciation
or amortization. In some cases, capital expenditures may have been treated by a
borrower as an expense or expenses treated as capital expenditures. The Seller
has not made any attempt to verify the accuracy of any information provided by
each borrower or to reflect changes in net operating income that may have
occurred since the date of the information provided by each borrower for the
related Mortgaged Property. 1996 NOI and 1997 NOI were not necessarily
determined in accordance with generally accepted accounting principles.
Moreover, 1996 NOI and 1997 NOI are not a substitute for net income determined
in accordance with generally accepted accounting principles as a measure of the
results of a property's operations or a substitute for cash flows from
operating activities determined in accordance with generally accepted
accounting principles as a measure of liquidity and in certain cases may
reflect partial-year annualizations.
2. "Annual Debt Service" means for any Mortgage Loan the current annual
debt service payable during the twelve month period commencing on November 1,
1998 on the related Mortgage Loan.
3."Cut-Off Date LTV Ratio" means, with respect to any Mortgage Loan, the
principal balance of such Mortgage Loan as of the Cut-Off Date divided by the
aggregate value of the Mortgaged Properties securing such Mortgage Loan.
4. "Cut-Off Date Balance" means the principal balance of the Mortgage Loan
as of the Cut-Off Date.
5. "Cut-Off Date Principal Balance/Unit" means the balance per unit of
measure as of the Cut-Off Date.
6. "DSCR", "Debt Service Coverage Ratio" or "Underwritten DSCR" means, for
any Mortgage Loan, the ratio of Underwritten Net Cash Flow produced by the
related Mortgaged Property or Mortgaged Properties to the aggregate amount of
the Annual Debt Service.
7. "Largest Tenant Lease Expiration Date" means the date at which the
Largest Tenant's lease is scheduled to expire.
A-1
<PAGE>
8. "Largest Tenant % of Total Net Square Feet" means the net square feet
leased to the Largest Tenant as a percentage of the total square feet of the
Mortgaged Property.
9. "LTV at Maturity", "Maturity Date LTV" or "ARDLTV" for any Mortgage
Loan is calculated in the same manner as Cut-Off Date LTV, except that the
Mortgage Loan Cut-Off Date Principal Balance used to calculate the Cut-Off Date
LTV has been adjusted to give effect to the amortization of the applicable
Mortgage Loan as of its Maturity Date or Anticipated Repayment Date, as
applicable. Such calculation thus assumes that the appraised value of the
Mortgaged Property or Properties securing a Mortgage Loan on the Maturity Date
or the Anticipated Repayment Date, as applicable, is the same as the appraised
value as of the date of the original appraisal. There can be no assurance that
the value of any particular Mortgaged Property will not have declined from the
original appraised value.
10. "Net Cash Flow" or "U/W NCF" with respect to a given Mortgage Loan or
Mortgaged Property means cash flow available for debt service, as determined by
the related Responsible Party based upon borrower supplied information for a
recent period which is generally the twelve months prior to the origination of
such Mortgage Loan, adjusted for stabilization and, in the case of certain
Mortgage Loans, may have been updated to reflect a more recent operating
period. Net Cash Flow does not reflect debt service, non-cash items such as
depreciation or amortization, and does not reflect actual capital expenditures
and may have been adjusted for other items and assumptions determined by the
Responsible Party.
11. "Occupancy" means the percentage of gross leasable area, rooms, units,
beds or sites of the property that are leased. Occupancy rates are calculated
within a recent period and in certain cases reflect the average occupancy rate
over a period of time.
12. "Original Balance" means the principal balance of the Mortgage Loan as
of the date of origination.
13. "Underwritten NOI" or "U/W NOI" means Net Cash Flow before deducting
for replacement reserves and capital expenditures, tenant improvements and
leasing commissions.
14. "Appraised Value" means for each of the Mortgaged Properties, the
appraised value of such property as determined by an appraisal thereof and in
accordance with MAI standards made not more than 25 months prior to the
origination date (or purchase date, as applicable) of the related Mortgage
Loan.
15. "Weighted Average Mortgage Interest Rate" means the weighted average
of the Mortgage Interest Rates as of the Cut-Off Date.
16. "Cross Collateralized Group" identifies Mortgage Loans in the Mortgage
Pool cross collateralized with other Mortgage Loans in Pool.
17. "Related Group" identifies Mortgage Loans in the Mortgage Pool with
borrowers affiliated with other borrowers in the Mortgage Pool.
18. "Prepayment Penalty Description" means the number of months from one
month prior to the first payment date (or in the case of certain loans, from
the first payment date) for which a Mortgage Loan is locked out from
prepayment, charges a prepayment premium or yield maintenance charges, permits
defeasance, or allows a prepayment without a prepayment premium.
19. "YM" means, with respect to any Mortgage Loan, a yield maintenance
premium.
CERTAIN OTHER LOAN CHARACTERISTICS
Loan Number L0137 (Holiday Inn-Crowne Plaza). This Mortgage Loan is
collateralized by the leased fee interest in the land upon which the Holiday
Inn-Crowne Plaza sits. The borrower, owner of the 0.17 acre parcel of land,
leases the Mortgaged Property to the Holiday Inn-Crown Plaza on a 200 year
(total term) lease. The lessee is responsible for all taxes on the property.
Loan Number ANADC (Washington Monarch). This Mortgage Loan has a principal
balance of $47,000,000 and was made in connection with the making of a
mezzanine loan having a principal
A-2
<PAGE>
balance of $8,250,000, which is not included in the Mortgage Pool. Pursuant to
the Mortgage Loan provisions, the borrower is required to make interest-only
payments until such time as the mezzanine loan is paid in full. Pursuant to the
amortization schedule on the mezzanine loan, the mezzanine loan will be paid in
full by April 2006, and principal payments on the Mortgage Loan shall commence
on May 11, 2006. The monthly payment shall be $325,740 on May 11, 2006 and will
step to $385,177 on June 11, 2006. The Mortgage Loan will mature and will be
payable in full on October 11, 2008.
Loan Number O9-0001082 (Canterbury Village Apts). This Mortgage Loan has a
Cut-Off Date LTV of 89.69%, based on a Cut-Off Date Balance of $5,470,880 and
current "as is" appraised value of $6,100,000. The Cut-Off Date Balance of this
Loan is inclusive of a $367,000 funded reserve for improvements. Upon
completion of these improvements, scheduled for May 1999, the appraised value
of the Mortgaged Property is estimated to be $7,000,000 resulting in an "as
completed" LTV of 78%.
Loan Number O9-0001065 (Best Western-Rio Rancho). The current DSCR for
this Mortgage Loan is 1.17x based on a current Monthly Payment of $39,905.52
and Net Cash Flow of $557,903. The Cut-Off Date Balance of this Mortgage Loan
includes funded earnouts of $965,000. Should the terms for the funded earnout
not be met by the borrower on or before June 1, 1999, these funds will be
applied to reduce the balance of the Mortgage Loan, thus reducing the Monthly
Payment obligation of the borrower. Should this occur, the DSCR could be
re-adjusted to approximately 1.42x.
A-3
<PAGE>
ANNEX A
CERTAIN CHARACTERISTICS OF THE MULTIFAMILY MORTGAGED PROPERTIES
<TABLE>
<CAPTION>
CONTROL LOAN LOAN LOAN SELLER/
NUMBER NUMBER GROUP ORIGINATOR PROPERTY NAME PROPERTY ADDRESS
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 ACS 1 GSMC Americold Portfolio
1a ACS-A 1 GSMC Americold Cold Storage 4475 East 50th Avenue
1b ACS-B 1 GSMC Termicold 6875 State Street
1c ACS-C 1 GSMC Americold Cold Storage 100 Widett Circle
1d ACS-D 1 GSMC Americold Cold Storage 280 West Highway 30
- ---------------------------------------------------------------------------------------------------------------------------------
1e ACS-E 1 GSMC Americold Cold Storage 301 South Walnut
1f ACS-F 1 GSMC Americold Cold Storage 755 East 1700 South Street
1g ACS-G 1 GSMC Americold Cold Storage 720 West Juniper Street
1h ACS-H 1 GSMC Americold Cold Storage 159 East Main Street
1i ACS-I 1 GSMC Americold Cold Storage 250 Mill Road
- ---------------------------------------------------------------------------------------------------------------------------------
1j ACS-J 1 GSMC Americold Cold Storage 3543 Maple Drive
1k ACS-K 1 GSMC Americold Cold Storage Westland Road
1l ACS-L 1 GSMC Americold Cold Storage 2233 (2251) Jesse Street
1m ACS-M 1 GSMC Americold Cold Storage 4916 South Lois Avenue
1n ACS-N 1 GSMC Americold Cold Storage 9501 Southeast Mcloughlin Boulevard
- ---------------------------------------------------------------------------------------------------------------------------------
1o ACS-O 1 GSMC Americold Cold Storage 3245 Road N
1p ACS-P 1 GSMC Americold Cold Storage 231 Second Road North
1q ACS-Q 1 GSMC Americold Cold Storage 211 South Alexander Street
1r ACS-R 1 GSMC Americold Cold Storage 110th Street and Highway 54
1s ACS-S 1 GSMC Americold Cold Storage Railroad Avenue
- ---------------------------------------------------------------------------------------------------------------------------------
1t ACS-T 1 GSMC Americold Cold Storage 1010 Americold Drive
1u ACS-U 1 GSMC Americold Cold Storage 69 Rogers Street
1v ACS-V 1 GSMC Americold Cold Storage One Rowe Square
1w ACS-W 1 GSMC Americold Cold Storage 4095 Portland Road, N.E.
1x ACS-X 1 GSMC Americold Cold Storage 1845 Westgate Parkway
- ---------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y 1 GSMC Americold Cold Storage 525 South Kilroy Road
1z ACS-Z 1 GSMC Americold Cold Storage 4-14th Avenue South
1aa ACS-AA 1 GSMC Americold Cold Storage Dodd Road
1bb ACS-BB 1 GSMC Americold Cold Storage 750 West Riverside Drive
1cc ACS-CC 1 GSMC Americold Cold Storage 1440 Silverton Road
- ---------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 1 and 2 GSMC AIMCO Portfolio
2a AIM-1A 1 GSMC AIMCO-Scothollow Apartments 203 Laurie Meadows Drive.
2b AIM-1B 2 GSMC AIMCO-The Bluffs Apartments 12601 SE River Road
2c AIM-1C 2 GSMC AIMCO-Buena Vista Apartments 300 E. Bellevue Drive
2d AIM-1D 2 GSMC AIMCO-Casa De Monterey 12301 Studebaker Road
- ---------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E 2 GSMC AIMCO-Chappelle Le Grande 200 West 75th Place
2f AIM-1F 2 GSMC AIMCO-Crosswood Park Apartments 6801 San Thomas Drive
2g AIM-1G 2 GSMC AIMCO-Forest Ridge Apartments 3720 Yaqui Drive
2h AIM-1H 2 GSMC AIMCO-Mountain View Apartments 650 E. Bonita Ave.
2i AIM-1I 2 GSMC AIMCO-North Park Apartments 1125 Wellington Dr.
- ---------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J 2 GSMC AIMCO-Pathfinder Village 39800 Fremont Blvd.
2k AIM-1K 2 GSMC AIMCO-Shadowood Apartments 1001 McKeen Place
2l AIM-1L 2 GSMC AIMCO-Terrace Gardens Apartments 10100 Grand Plaza
2m AIM-1M 2 GSMC AIMCO-Towers of Westchester 6200 Westchester Park Dr.
2n AIM-1N 2 GSMC AIMCO-Vista Village Apartments 10535 Montwood Drive
- ---------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O 2 GSMC AIMCO-Watergate Apartments 8101 Cantrell Road
3 09-1001006 1 GSMC EPT Portfolio
3a 09-1001006A 1 GSMC AMC Grand 24 Megaplex 10110 Technology Boulevard East
3b 09-1001006B 1 GSMC AMC Promenade 16 21801 Oxnard Street
3c 09-1001006C 1 GSMC AMC Studio 30 2949 Dunvale Road
- ---------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D 1 GSMC AMC Ontario Mills 30 4549 Mills Circle
3e 09-1001006E 1 GSMC AMC West Olive 16 12657 West Olive Boulevard
3f 09-1001006F 1 GSMC AMC Huebner Oaks 24 Metroplex 11075 Interstate Highway 10 West
3g 09-1001006G 1 GSMC AMC Lennox 24 Megaplex 777 Kinnear Road
3h 09-1001006H 1 GSMC AMC Mission Valley 20 1640 Camino Del Rio North
- ---------------------------------------------------------------------------------------------------------------------------------
4 SkyII 1 GSMC Skyline One and Three
4a SkyIIA 1 GSMC One Skyline Tower 5107 Leesburg Pike
4b SkyIIB 1 GSMC Skyline Place Three 5201 Leesburg Pike
5 ANADC 1 GSMC Washington Monarch Hotel 2401 M Street, NW
6 09-0001076 1 GSMC (Archon) First Place Tower 15 East 5th Street
- ---------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 2 GSMC (Archon) Factory Stores at Hershey 46 Outlet Square
400029224 1 GSMC (ACLP) TLS Pool A
8 400029224A 1 GSMC (ACLP) 604 Fifth Avenue 604 Fifth Avenue
9 400029218B 1 GSMC (ACLP) 1276 Lexington Avenue 1276 Lexington Avenue
10 400029222C 1 GSMC (ACLP) 507-11 3rd Avenue 507-11 3rd Avenue
- ---------------------------------------------------------------------------------------------------------------------------------
11 400029227D 1 GSMC (ACLP) 800 - 802 Lexington Avenue 800-802 Lexington Avenue
12 400029219E 1 GSMC (ACLP) 147-149 West 57th Street 147-149 West 57th Street
13 09-0001116 1 GSMC (Archon) The WestCoast Benson Hotel 309 S.W. Broadway Avenue
400029220 1 and 2 GSMC (ACLP) TLS Pool B
14 400029220A 1 GSMC (ACLP) 196 Broadway 196 Broadway
- ---------------------------------------------------------------------------------------------------------------------------------
15 400029221B 2 GSMC (ACLP) 250 East 65th Street 250 East 65th Street
16 400029226C 1 GSMC (ACLP) 677 Lexington Avenue 677 Lexington Avenue
17 400029223D 2 GSMC (ACLP) 560 Fifth Avenue 560 Fifth Avenue
18 400029225E 1 GSMC (ACLP) 61 Fifth Avenue 61 Fifth Avenue
19 400030965 2 GSMC (ACLP) Holiday Inn - Independence 6001 Rockside Road
- ---------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 2 GSMC (Archon) The Original Outlet Mall 7700 120th Avenue
21 09-0001099 1 GSMC (Archon) Four Winds of Katonah Hospital 800 Cross River Road
22 SP007 1 GSMC (CPC) Hermanos Melendez Hospital Pajaros Ward PR Road No. 2 KM 11.8
23 400029141 1 GSMC (ACLP) Willow Run Business Center 2625 Tyler Road
24 400028225 1 GSMC (ACLP) Airport Plaza Shopping Center 25343-25385 Crenshaw Blvd
- ---------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 1 GSMC (Archon) Home Mortgage Plaza 268 Ponce De Leon Avenue
26 09-0001117 1 GSMC (Archon) Karrington Portfolio
26a 09-0001117A 1 GSMC (Archon) Karrington at Tucker Creek 6525 North High Street
26b 09-0001117B 1 GSMC (Archon) Karrington Place 65 Wesley Boulevard
26c 09-0001117C 1 GSMC (Archon) Karrington On The Scioto 3500 Riverside Drive
- ---------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D 1 GSMC (Archon) Karrington of Bexley 2600 East Main Street
27 L0137 1 GSMC (CPC) Holiday Inn - Crowne Plaza 1591-1597 Broadway
28 400030913 2 GSMC (ACLP) 761 7th Avenue 761-779 Seventh Avenue
29 09-0001122 2 GSMC (Archon) Sequoia Plaza Shopping Center 3710-3940 South Mooney Boulevard
30 09-0001102 1 GSMC (Archon) The Paramount Hotel 724 Pine Street
- ---------------------------------------------------------------------------------------------------------------------------------
31 400030964 2 GSMC (ACLP) Holiday Inn - Hudson 240 Hines Hill Road
32 400029308 1 GSMC (ACLP) Courtyard by Marriott 2150 Market Center Blvd.
33 400029207 2 GSMC (ACLP) Northway Plaza Shopping Center NY State Route 9
34 09-0001115 1 GSMC (Archon) WestCoast Vance Hotel 620 Stewart Street
35 R0421 1 GSMC (CPC) Fallbrook Mall 22921 Victory Boulevard
- ---------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 1 GSMC (Archon) Altid Portfolio
36a 09-0001040A 1 GSMC (Archon) 10 Elizabeth Drive 10 Elizabeth Drive
36b 09-0001040B 1 GSMC (Archon) Altid Portfolio - 12 Elizabeth Drive 12 Elizabeth Drive
36c 09-0001040C 1 GSMC (Archon) Altid Portfolio - 27 Industrial Avenue 27 Industrial Avenue
37 M0514 2 GSMC (CPC) Hobbits Grove Apartments 5320 Cedar Lane
- ---------------------------------------------------------------------------------------------------------------------------------
38 400030914 1 GSMC (ACLP) Michael's Distribution Center 3501 Avenue H
39 O0179 2 GSMC (CPC) Sharp Mission Park Medical Ctr 128-130 Cedar Road
40 400028275 1 GSMC (ACLP) Cottonwood/Casa Grande
40a 400028275A 1 GSMC (ACLP) Cottonwood Plaza 1100 C Highway 260
40b 400028275B 1 GSMC (ACLP) Tri Valley Plaza 1355 East Florence Street
- ---------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 2 GSMC (Archon) Wenatchee Valley Mall 511-611 Valley Mall Parkway
42 09-0001100 1 GSMC (Archon) Four Winds of Saratoga Hospital 30 Crescent Avenue
43 09-0001101 1 GSMC (Archon) Best Western, Bellevue Inn 11211 Main Street
44 09-0001123 2 GSMC (Archon) Springdale Villa Apartments 6000 Garden Grove Boulevard
45 09-0001042 2 GSMC (Archon) Briarwood Village Apartments 2215 Avenida La Quinta
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46 O0311 2 GSMC (CPC) Dunwoody Office Park 4367 Dunwoody Park South & 1912 Cotillion Drive
47 O0320 1 GSMC (CPC) Rehab Centre of Beverly Hills 580 San Vicente Boulevard
48 M0171 2 GSMC (CPC) Fremont Garden Apartments 4200 Bay Street
49 R0280 1 GSMC (CPC) Kmart - Valdosta 1106 N. St. Augustine Road
50 400029282 1 GSMC (ACLP) Michigan Heart and Vascular Institute 5325 Elliot Drive
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51 M0462 2 GSMC (CPC) Cottonwood Cabanas Apartments 4653 Cotton Drive
52 400030935 2 GSMC (ACLP) Heritage Place Office Building 227 French Landing Drive
53 400028228 1 GSMC (ACLP) The Shops at Sterling Ponds II 33301-33681 Van Dyke Road
54 L0149 1 GSMC (CPC) Lake Natoma Inn 702 Gold Lake Drive
55 O0265 2 GSMC (CPC) Westport Corporate Office Park 55 & 57 Greens Farms Road
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56 09-0001055 1 GSMC (Archon) CDI Centre Office Building 2900 Westfork Drive
57 400028277 2 GSMC (ACLP) South Park Centre 12651 South Dixie Highway
58 09-0001135 1 GSMC (Archon) Best Western Inn & Suites - Farmington 700 Scott Avenue
59 400030880 1 GSMC (ACLP) Allen Management - 6 Motels
59a 400030880A 1 GSMC (ACLP) Econo Lodge - Charlottesville 400 Emmet Street
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59b 400030880B 1 GSMC (ACLP) Econo Lodge - Bristol 912 Commonwealth
59c 400030880C 1 GSMC (ACLP) Rodeway Inn - Roanoke 526 Orange Avenue N.E.
59d 400030880D 1 GSMC (ACLP) Econo Lodge - Richmond 2125 Willis Road
59e 400030880E 1 GSMC (ACLP) Econo Lodge - Sandston 5408 Williamsburg Road
59f 400030880F 1 GSMC (ACLP) Econo Lodge - Virginia Beach 3637 Bonney Road
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60 O0090 1 GSMC (CPC) Hot Springs Village Shopping 4900 Highway 7 North
61 09-0001066 1 GSMC (Archon) South Shore Nursing Home 275 West Merrick Road
62 09-0001041 1 GSMC (Archon) ARC Portfolio
62a 09-0001041A 1 GSMC (Archon) The Loveland Plaza Mobile Home Park 4105 N. Garfield Avenue
62b 09-0001041B 1 GSMC (Archon) The Meadowbrook Mobile Home Park 33550 Highway 96 East
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62c 09-0001041C 1 GSMC (Archon) Sunset Village Mobile Home Park 400 North Light Plant Road
63 O0148 2 GSMC (CPC) Laurel Executive Building 312 Marshall Avenue
64 09-0001167 1 GSMC (Archon) Centerra Marketplace 12 Centerra Parkway
65 R0297 2 GSMC (CPC) Parc City Centre 20921-20955 Davenport Drive
66 O0244 1 GSMC (CPC) Commerce Center 3645 Lamar Avenue
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67 400029255 1 GSMC (ACLP) Woodward Village Shopping Center 7705-7799 North First Street
68 400029205 2 GSMC (ACLP) Walden Hurd Business Complex 2345 Walden Avenue
69 09-0001136 1 GSMC (Archon) Best Western Sally Port Inn - Roswell 2000 North Main Street
70 400029172 2 GSMC (ACLP) The Armory 836 Farmington Avenue
71 R0134 1 GSMC (CPC) Magnolia Point Shopping Center 2000 Clemson Road
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72 09-0001133 1 GSMC (Archon) Consolidated Storage Portfolio
72a 09-0001133A 1 GSMC (Archon) Consolidated Storage 11855 E. 40th Avenue
72b 09-0001133B 1 GSMC (Archon) Consolidated Storage 666 West Thornton Parkway
72c 09-0001133C 1 GSMC (Archon) Consolidated Storage 7140 Irving Street
73 09-0001082 2 GSMC (Archon) Canterbury Village Apartments 7251 Chaucer Place
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74 400030867 2 GSMC (ACLP) Arcadia Landmark 333-411 East Huntington Drive
75 400030966 2 GSMC (ACLP) Holiday Inn - North Canton 4520 Everhard Road NW
76 09-0001065 2 GSMC (Archon) Best Western - Rio Rancho 1465 Rio Rancho Drive
77 400029184 2 GSMC (ACLP) Alford Refrigerated Warehouse 502 North Broadway
78 400029251 2 GSMC (ACLP) Laurelwood Collection Shopping Center 4600 Poplar Avenue
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79 400030922 1 GSMC (ACLP) 666 Pennsylvania Avenue Office Building 666 Pennsylvania Avenue
80 R0311 2 GSMC (CPC) Lakes Specialty Center 705 Gold Lake Drive
81 400029139 2 GSMC (ACLP) Redstone Apartments 500 South Prospect Street
82 R0514 2 GSMC (CPC) Metzerott Plaza 9107-9147 Riggs Road
83 09-0001044 1 GSMC (Archon) Palm Beach Assisted Living 534 Datura Street
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84 400029161 1 GSMC (ACLP) Plaza West Office Building 100 Mill Plain Road
85 400029171 2 GSMC (ACLP) Malibu Canyon Commercial Ctr. 26500 West Agoura Road
86 R0559 1 GSMC (CPC) Kmart - Lincoln 5601 South 56th Street
87 400029274 2 GSMC (ACLP) Valley Oaks Shopping Center 200 Highway 12 & 55 Highway 26
88 R0463 2 GSMC (CPC) Ruston Center 209 North Service Road
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89 400029257 2 GSMC (ACLP) Indian Lookout Apartments 98 Anderson Ferry Road
90 400029169 2 GSMC (ACLP) Braden Creek Apartments 4801 South Braden Avenue
91 400031048 2 GSMC (ACLP) Palm Springs Village Apartments 2720-2786 East Tahquitz CanyonWay
92 400029237 1 GSMC (ACLP) Merritt Station Self Storage 1100 North Point Road
93 400029202 2 GSMC (ACLP) Villa Acapulco Apartments 9707 Braeburn Glen Blvd
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94 O0359 2 GSMC (CPC) CED Office Building 1551 Sandspur Road
95 M0330 2 GSMC (CPC) Acadian House / Willow Bend
95a M0330A 2 GSMC (CPC) Acadian House Apartments 710 South College Road
95b M0330B 2 GSMC (CPC) Willow Bend Apartments 4770 Johnston Street
96 R0464 2 GSMC (CPC) Sunshine Heights Shopping Center 3426 Cypress Street
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97 09-0001063 1 GSMC (Archon) Rivertech Corporate Center 500 Naches Ave. SW
98 400029262 2 GSMC (ACLP) Colwell Building 123 North Third St.
99 400029134 2 GSMC (ACLP) Middletown Shopping Center 413-659 South Breiel Blvd.
100 400029200 2 GSMC (ACLP) Exchange St. Parking Ramp 177 Washington Street
101 R0533 1 GSMC (CPC) Bryan Station Shopping Center 1670 Bryan Station Road
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102 09-0001138 1 GSMC (Archon) Best Western Inns & Suites - Gallup 3009 West Historic Highway 66
103 400029214 1 GSMC (ACLP) Bright Beginnings II
103a 400029214A 1 GSMC (ACLP) Towner 12215 Towner Drive
103b 400029214B 1 GSMC (ACLP) Fortuna 6000 Fortuna Road
103c 400029214C 1 GSMC (ACLP) Bernalillo 355 Avenida Bernalillo
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103d 400029214D 1 GSMC (ACLP) Paradise Hills 4400 Irving Boulevard NW
103e 400029214E 1 GSMC (ACLP) Taylor Ranch 4910 Kachina Drive
103f 400029214F 1 GSMC (ACLP) Rufina 1361 Rufina Circle
103g 400029214G 1 GSMC (ACLP) Gibson 6420 Gibson Boulevard
103h 400029214H 1 GSMC (ACLP) Quantum 501 Quantum Road NE
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103i 400029214I 1 GSMC (ACLP) Anaheim 7615 Anaheim Avenue
104 MH0020 1 GSMC (CPC) Grand Valley Village Mobile Home Park 1 Grand Valley Drive
105 400029166 1 GSMC (ACLP) Caxton Building 800-820 Huron Road
106 400029173 1 GSMC (ACLP) Hartford Portfolio
106a 400029173A 1 GSMC (ACLP) The Brownstone 190 Trumbull Street
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106b 400029173B 1 GSMC (ACLP) 1234-1236 Farmington Avenue 1234-1236 Farmington Avenue
106c 400029173C 1 GSMC (ACLP) 1245 Farmington Avenue 1235 - 1249 Farmington Avenue
106d 400029173D 1 GSMC (ACLP) 2471-2481 Albany Avenue 2471-2481 Albany Avenue
106e 400029173E 1 GSMC (ACLP) 43 South Main Street 41-43 South Main Street
107 09-0001110 1 GSMC (Archon) Oriental Accent 13405 Stemmons Freeway
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108 R0315 2 GSMC (CPC) Kroger Plaza 1661 Winchester ByPass
109 400029147 1 GSMC (ACLP) Wilmette Commons Shopping Ctr. 106 to 126 Skokie Boulevard
110 09-0001160 1 GSMC (Archon) Plaza at River Oaks Apartments 1920 West Gray Street
111 400030896 1 GSMC (ACLP) Bend Town Center 632 NE 3rd Street
112 400029299 2 GSMC (ACLP) Ogden Manor Apartments 395 West Ogden Avenue
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113 400029232 2 GSMC (ACLP) Riverside Village Apartments 2800 - 5th Avenue NE
114 M0415 2 GSMC (CPC) Northridge Villa Apartments 67,69,93,95,97 Castro Street
115 400029306 2 GSMC (ACLP) University Gardens Apartments 2212-2222 Rio Grande Street
116 400029252 2 GSMC (ACLP) Cimarron Apartments 850 East Commercial Boulevard
117 400030886 1 GSMC (ACLP) Allen Management - 2 Motels
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117a 400030886A 1 GSMC (ACLP) Econo Lodge - Norfolk 865 N. Military Highway
117b 400030886B 1 GSMC (ACLP) Days Inn - Harrisonburg 1131 Forest Hill Road
118 400029217 1 GSMC (ACLP) The Bricher Shops 2000-2100 West State Street
119 M0429 1 GSMC (CPC) The Seasons Apartments and Townhouses 9100 Walker Road
120 400030875 1 GSMC (ACLP) Comfort Inn - Grand Rapids 4155 28th Street, SE
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121 400029121 2 GSMC (ACLP) Saxon Center 810 Saxon Boulevard
122 09-0001111 2 GSMC (Archon) Figueroa Business Park 14900-14940 South Figueroa Street
123 R0458 1 GSMC (CPC) Dexter Ridge Shopping Center 1740 North Germantown Parkway
124 400030876 1 GSMC (ACLP) Hampton Inn - Lansing 525 North Canal Road
125 400029129 2 GSMC (ACLP) Century Medical Center 11539 Hawthorne Boulevard
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126 09-0001104 1 GSMC (Archon) Holiday Inn Express - Kokomo 511 Albany Drive
127 09-0001140 1 GSMC (Archon) Holiday Inn - Lewisville 200 North Stemmons Freeway
128 400028305 2 GSMC (ACLP) Bowman Business Park 1515-1527 Bowman Road
129 O0422 2 GSMC (CPC) 25/110 Enterprise Center
129a O0422A 2 GSMC (CPC) 25 Enterprise Center 25 Enterprise Center
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129b O0422B 2 GSMC (CPC) 110 Enterprise Center 110 Enterprise Center
130 R0304 2 GSMC (CPC) Alturas Plaza 91 East Croy Street
131 400029137 2 GSMC (ACLP) Shirley Court Apartments 7201 Bradford Road
132 400030967 2 GSMC (ACLP) Comfort Inn - Montrose West 130 Montrose West Avenue
133 400029178 2 GSMC (ACLP) 422 Mystic Avenue 422 Mystic Avenue
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134 400028304 1 GSMC (ACLP) Santa Fe Plaza Shopping Center 3560-3580 Santa Anita Boulevard
135 400029164 1 GSMC (ACLP) K Mart - Milton 6050 Highway 90
136 400028210 1 GSMC (ACLP) Royal Village Apartments 2838 - 2848 Royal Lane
137 400029181 1 GSMC (ACLP) Stuyvesant Plaza 238 Elmwood Avenue
138 400029234 1 GSMC (ACLP) Center of Clewiston 955 West Sugarland Hwy (US Highway 27)
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139 09-0001086 2 GSMC (Archon) OM Bernardo Industrial Complex 16510-16516 Via Esprillo
140 09-0001053 1 GSMC (Archon) 100 & 105 Rowayton Avenue 100 & 105 Rowayton Avenue
141 09-0001064 1 GSMC (Archon) Best Western Hotel - Ft. Washington 285 Commerce Drive
142 O0259 2 GSMC (CPC) Harbor Bay Biotech Building 1501 Harbor Bay Parkway
143 R0743 1 GSMC (CPC) Town Center Shoppes 16600-16650 Saddle Club Road
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144 400027540 1 GSMC (ACLP) Marlton Plaza Shopping Center 9500 Crain Highway
145 09-0001130 1 GSMC (Archon) Spring Park Plaza Shopping Center 2310 South Range Avenue
146 400029116 1 GSMC (ACLP) Stoneybrook Shopping Center 15425 Warwick Boulevard
147 400029267 1 GSMC (ACLP) 301-309 West Broad Street 301-309 West Broad Street
148 400029190 2 GSMC (ACLP) Super 8 Universal Hotel 5900 American Way
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149 400029250 2 GSMC (ACLP) Highland Business Park
149a 400029250A 2 GSMC (ACLP) Highland Business Park 7317-7366 Steel Mill Drive
149b 400029250B 2 GSMC (ACLP) Highland Business Park 7317-7366 Steel Mill Drive
150 L0237 1 GSMC (CPC) Best Western Lancaster Inn 1858 North Memorial Drive
151 09-0001114 1 GSMC (Archon) Best Western Executive Park 1100 North Central Avenue
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152 400029154 2 GSMC (ACLP) K-Mart Dundas 404-420 Schilling Drive
153 M0263 2 GSMC (CPC) Country Acres Apartments 209, 301, 309 11th Avenue East
154 400029143 1 GSMC (ACLP) Marketplace East Shopping Ctr. 2828-2888 & 2906-2920 North Powers Boulevard
155 400029189 2 GSMC (ACLP) 25 E. 83rd Street 25 East 83rd Street
156 09-0001163 1 GSMC (Archon) Lancaster Mobile Home Park 2445 Columbus-Lancaster Pike
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157 400031128 1 GSMC (ACLP) Chateau Hilgard 962 Hilgard Avenue
158 400029213 1 GSMC (ACLP) Hallandale Professional Park 1100-1180 East Hallandale Beach Boulevard
159 09-0001045 2 GSMC (Archon) Westbury Park Apartments 1295 Franklin Drive
160 400029197 1 GSMC (ACLP) 44 Campanelli Parkway 44 Campanelli Parkway
161 09-0001098 1 GSMC (Archon) Super 8 Motel - Goodlettsville 622 Two Mile Parkway
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162 L0171 1 GSMC (CPC) Quality Inn - Hall of Fame 1407 Division Street
163 09-0001107 2 GSMC (Archon) Southgate Suites & Apartments 2339 Fort Benning Road
164 09-0001056 2 GSMC (Archon) Sonesta West Shopping Center 13096 Research Boulevard
165 M0487 1 GSMC (CPC) II Frances Place Apartments 1701 McKeen Place
166 400029149 2 GSMC (ACLP) Ames Business Center 2500 West Country Road 42
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167 O0393 1 GSMC (CPC) Dorsey Park II 6797 Dorsey Road
168 400029158 2 GSMC (ACLP) Holiday Inn Express 7200 West 107th Street
169 09-0001062 1 GSMC (Archon) Comfort Suites-Richmond 6221 Richmond Avenue
170 400030890 1 GSMC (ACLP) Pacific Mini-Storage Facility 6185 South Pecos Road
171 400029300 1 GSMC (ACLP) Comfort Inn - Harrisonburg, VA 1440 East Market Street
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172 400027560 1 GSMC (ACLP) Concord House/Concord Terrace 1001 Villa Drive/ 306 Park Drive.
173 400029186 1 GSMC (ACLP) 6 Advanced Auto Parts Stores
173a 400029186A 1 GSMC (ACLP) Stornaway-Advance/Sylacauga 311 West Fort Williams Street
173b 400029186B 1 GSMC (ACLP) Stornaway-Advance/Monroeville 1471 Highway 21 Bypass
173c 400029186C 1 GSMC (ACLP) Stornaway-Advance/Paris 1031 Mineral Wells Avenue
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173d 400029186D 1 GSMC (ACLP) Stornaway-Advance/Memphis 1427 Airways Boulevard
173e 400029186E 1 GSMC (ACLP) Stornaway-Advance/W. Memphis 323 East Broadway
173f 400029186F 1 GSMC (ACLP) Stornaway-Advance/Alexander City 4350 Highway 280 West
174 M0537 2 GSMC (CPC) Cedar Shores Apartments 3434 Blanding Boulevard
175 09-0001139 1 GSMC (Archon) Quality Inn - Deland 2801 E. New York Ave.
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176 400029163 1 GSMC (ACLP) CSPP Building 5130 East Clinton Way
177 400029212 1 GSMC (ACLP) The Shops at Sterling Ponds II 33301-33681 Van Dyke Road
178 400030868 1 GSMC (ACLP) The Cascade Apartments 1500 San Francisco Court
179 400029209 2 GSMC (ACLP) Centennial Square Shopping Center 2717-2897 West Belleview Avenue
180 09-0001113 1 GSMC (Archon) Best Western Continental Inn 9735 Interstate Highway 35 North
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181 400029236 1 GSMC (ACLP) Lomond Place Office Park 100-110-120-130 Lomond Court
182 400029119 2 GSMC (ACLP) Horizon Office Portfolio 6011-15-21 Durand Av, 8338 Corp. Dr.
183 09-0001106 2 GSMC (Archon) Bay Area Rehab 2625 Coos Bay Boulevard
184 400030915 2 GSMC (ACLP) The Saddlery Office Building 233 North Water Street
185 09-0001067 1 GSMC (Archon) Comfort Inn - Houston 715 State Highway 6 South
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186 400029157 2 GSMC (ACLP) Bright Beginnings Portfolio
186a 400029157A 2 GSMC (ACLP) Eubank 5528 Eubank Boulevard, NE
186b 400029157B 2 GSMC (ACLP) Sante Fe 810 Calle Mejia
186c 400029157C 2 GSMC (ACLP) Homestead 5212 Homestead Road, NE
187 R0597 2 GSMC (CPC) Benchmark Shopping Center 4550 Kenny Road
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188 09-0001142 1 GSMC (Archon) Days Inn and Suites Galleria/Westchase 9041 Westheimer Road
189 400029187 2 GSMC (ACLP) 5 Advanced Auto Parts Stores
189a 400029187A 2 GSMC (ACLP) Advance Auto Parts - Anniston 5420 McClellan Boulevard
189b 400029187B 2 GSMC (ACLP) Advance Auto Parts - Opelika 2730 Pepperell Parkway
189c 400029187C 2 GSMC (ACLP) Advance Auto Parts-Albertville 6855 Highway 431
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189d 400029187D 2 GSMC (ACLP) Advance Auto Parts- Birmingham 7001 1st Avenue North
189e 400029187E 2 GSMC (ACLP) Advance Auto Parts-Newnan, GA 51 Bullsboro Drive
190 M0443 2 GSMC (CPC) Tree House Apartments 1800 Park Avenue
191 400029199 1 GSMC (ACLP) Utah Hotel Portfolio
191a 400029199A 1 GSMC (ACLP) Skyline Inn 2475 East 1700 South Street
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191b 400029199B 1 GSMC (ACLP) Howard Johnson Inn 1167 South Main Street
192 400029145 2 GSMC (ACLP) West Pacific Industrial Center 1311-1315 Dayton Street & 1155 Harkins Road
193 400029192 1 GSMC (ACLP) Avery Office Portfolio
193a 400029192A 1 GSMC (ACLP) Avery Suites Office Building 800 Avery Boulevard
193b 400029192B 1 GSMC (ACLP) Arbor Office Building 360 Towne Center Boulevard
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194 400029201 2 GSMC (ACLP) Hills Dunkirk Shopping Center 3940 Vineyard Drive
195 09-0001038 2 GSMC (Archon) Brandon Lakes Plaza 2020 West Brandon Boulevard
196 400030866 1 GSMC (ACLP) Annapolis Business Center 1990 Moreland Parkway
197 09-0001087 1 GSMC (Archon) Southlake Oaks Center 500 W. Southlake Boulevard
198 400029238 1 GSMC (ACLP) Pulaski EZ Store Self Storage 3800 Pulaski Highway
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199 400029183 2 GSMC (ACLP) Fairlawn Gardens Apartments 116 Fairlawn Gardens
200 400029194 1 GSMC (ACLP) Mil Pine Plaza 8400 Niagra Falls Boulevard
201 400029160 1 GSMC (ACLP) The Fairfax School Building 10201 Main Street
202 09-0001084 2 GSMC (Archon) Westwood Apartments 3254 Las Vegas Trail
203 400029204 2 GSMC (ACLP) Fountain Plaza Shopping Center 600 Coffee Road
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204 400029148 2 GSMC (ACLP) Kentwood Marketplace 2891 Radcliff Drive, SE
205 400029216 2 GSMC (ACLP) Dale Watts Portfolio
205a 400029216A 2 GSMC (ACLP) Jiffy Lube Building 1221 South 120th Street
205b 400029216B 2 GSMC (ACLP) Central West Industrial Building 10924 - 10938 Emiline Street
205c 400029216C 2 GSMC (ACLP) Sunny Slope Medical Office Building 5654 North 103rd Street
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205d 400029216D 2 GSMC (ACLP) H-Street Building 8944 H-Street
206 400029208 2 GSMC (ACLP) Summit Apartments 411 West K Place
207 400029162 1 GSMC (ACLP) Featherstone Professional Bld. 1807 Huguenot Road
208 R0254 2 GSMC (CPC) Silver Spring Plaza 51 Silver Spring Street
209 400028269 2 GSMC (ACLP) Westmoor Apartments 800-810 West Melrose Avenue
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210 400029309 1 GSMC (ACLP) Stop and Shop Center 7600/ 7610-7638 Westcliff Drive
211 L0200 1 GSMC (CPC) Impala Hotel 1228 Collins Avenue
212 400029310 1 GSMC (ACLP) Airport Place Building 2800 South 192nd Street
213 09-0001134 1 GSMC (Archon) Super 8 - Dumfries 17336 Jefferson Davis Highway
214 L0300 1 GSMC (CPC) Holiday Inn - Banner Elk NC Highway 184
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215 400029156 2 GSMC (ACLP) 4300 Biscayne Boulevard 4300 Biscayne Boulevard
216 400029215 1 GSMC (ACLP) Bright Beginnings III
216a 400029215A 1 GSMC (ACLP) Barbara Loop 1501 Barbara Loop
216b 400029215B 1 GSMC (ACLP) Mountain View Academy 4100 Irving NW
216c 400029215C 1 GSMC (ACLP) Constitution 7840 Constitution Avenue
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217 400029211 1 GSMC (ACLP) K-Mart Decatur 1920 Mount Zion Road
218 L0184 2 GSMC (CPC) Super 8 Motel - North Point 1591 Highway 17 North
219 09-0001051 2 GSMC (Archon) Town View Apartments 4999 S. Buckner Boulevard
220 400030893 2 GSMC (ACLP) Prospect Industrial 1202 Airport Road
221 09-0001088 1 GSMC (Archon) Days Inn - Franklin 103 Trotter Lane
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222 09-0001124 1 GSMC (Archon) Ramada Inn - Columbia 1111 East Broadway
223 L0202 1 GSMC (CPC) Holiday Inn - Douglas 1750 South Peterson Avenue
224 400029294 2 GSMC (ACLP) 5775 Polaris/3475 Russell 5775 S. Polaris Avenue/3475 W. Russell Road
225 400029196 1 GSMC (ACLP) Little Neck Commons 245-02 - 245-24 Horace Harding Parkway
226 400028286 1 GSMC (ACLP) Oakview Plaza Shopping Center 38901-38931 County Road 54
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227 400029191 2 GSMC (ACLP) Staples - Burlington 104 West Agency Street
228 400029167 1 GSMC (ACLP) CARS Building 3701 Duncanwood Lane
229 09-0001132 1 GSMC (Archon) Days Inn - Nashville 501 Collins Park Drive
230 MU0036 2 GSMC (CPC) Bear Creek Specialty Center 4300 Highway 6 North
231 09-0001112 1 GSMC (Archon) TRMG Building 502 East Highland Mall Boulevard
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232 R0807 1 GSMC (CPC) Eckerd's - North Port 14287 South Tamiami Trail
233 400029258 1 GSMC (ACLP) 790 Oak Grove Road 790 and 796 Oak Grove Road
234 09-0001081 1 GSMC (Archon) Days Inn - Whitehouse 1009 State Highway 76
235 09-0001061 1 GSMC (Archon) Rite-Aid Ogdensberg 908 State Street
236 R0480 2 GSMC (CPC) Best Buy Retail Facility 35300 Central City Parkway
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237 I0099 1 GSMC (CPC) Black Lake Place 2800 Black Lake Place
238 400031123 2 GSMC (ACLP) Whitewood Oaks Apartments 200 Whitewood Drive
239 09-0001070 2 GSMC (Archon) Sierra Trails Apartments 2800 Las Vegas Trail
240 09-0001074 1 GSMC (Archon) Holiday Inn Express 3811 Nashville Road
241 09-0001039 1 GSMC (Archon) Pulaski Rite-Aid 4764-4770 Salina Street (Route 11)
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242 09-0001096 1 GSMC (Archon) Days Inn - Columbus 1559 West Broad Street
243 400029185 2 GSMC (ACLP) Spring Heights Fourplexes 409C Summer Court
244 400030925 1 GSMC (ACLP) Congress Pointe Shopping Center 4469 Congress Avenue
245 M0264 2 GSMC (CPC) Executive East Apartments 1244, 1248, 1252 E. St. Germain St.
246 09-0001083 1 GSMC (Archon) Days Inn - San Antonio 6100 N.W. Loop 410
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247 400029233 1 GSMC (ACLP) Lack's & Beall's Shopping Ctr. 1000 North Loop 340
248 09-0001071 1 GSMC (Archon) Comfort Inn - Franklin 3794 Nashville Road
249 09-0001079 1 GSMC (Archon) Comfort Inn - Cave City 801 Mammoth Cave Street
250 09-0001072 2 GSMC (Archon) Angleton Plaza 1104-1116 East Mulberry Road
251 09-0001119 1 GSMC (Archon) Howard Johnson Inn - North Charleston 3640 Dorchester Road
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252 400029188 1 GSMC (ACLP) Lillian Cove Duplexes 3200-3305 Lillian Cove
253 09-0001080 1 GSMC (Archon) Super 8 - Cave City 799 Mammoth Cave Street
254 400029140 1 GSMC (ACLP) Select Sites of Attleborough 3558 SW College Road (SR 200)
255 400029248 1 GSMC (ACLP) Econo Lodge Metro Hotel 6800 Lee Highway
256 R0633 1 GSMC (CPC) Piggly Wiggly - Savannah 37 & 43 West Montgomery Crossroads
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257 400029206 1 GSMC (ACLP) 8304 Sherwick Court Warehouse 8304 Sherwick Court
258 400029311 2 GSMC (ACLP) Prime Plaza 211 South Federal Highway
259 400029174 1 GSMC (ACLP) Partridge Square 2139 Silas Deane Highway
260 09-0001059 1 GSMC (Archon) Comfort Inn - Decatur 1709 US Highway 287 South
261 09-0001034 1 GSMC (Archon) Concourse Plaza 16051 Addison Drive
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262 09-0001046 1 GSMC (Archon) Rite-Aid Woodsville Junction Routes 10 & 302
263 09-0001085 2 GSMC (Archon) Somerset Workshops 4020 Leary Way Northwest
264 09-0001054 1 GSMC (Archon) Super 8 - Casa Grande 2066 East Florence Boulevard
265 400029168 2 GSMC (ACLP) The Eagle Crest Townhome Apts. 7200 South Presa Street
266 09-0001137 1 GSMC (Archon) Best Western Inn & Suites - Grants 1501 East Santa Fe Ave
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267 09-0001095 1 GSMC (Archon) NZ Commercial Center 1601 Randolph Road SE
268 400029182 2 GSMC (ACLP) Chatham Street Apartments 333 Chatham St. & 5 Oakwood Avenue
269 07-0000000 1 Falcon Financial Sangera Autohaus 3737 Ming Avenue
270 400029228 1 GSMC (ACLP) Canyon Road Galleries 201-205 Canyon Road
271 400029155 1 GSMC (ACLP) Hopedale Business Park 138 Hartford Ave. & #2 & #4 Evergreen
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272 09-0001032 1 GSMC (Archon) CVS Binghamton 34 West State Street
273 400029150 1 GSMC (ACLP) Building R 8080 - 8100 N.W. 33rd Street
274 R0497 2 GSMC (CPC) The Canary Creek Shoppes 906-952 N. Morton Avenue
275 400029290 1 GSMC (ACLP) Whitehall Professional Center 6911 Laurel Bowie Road
276 R0412 2 GSMC (CPC) Galion West Shopping Center 200-230 Portland Way North
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277 09-0001093 1 GSMC (Archon) Super 8 - Henderson 2030 Highway 41 North
278 09-0001118 1 GSMC (Archon) Best Western Columbia Inn 1102 Jamestown Street
279 09-0001097 1 GSMC (Archon) Super 8 - League City 102 Hobbs Road
280 400029180 2 GSMC (ACLP) Blue Ash Shopping Center 9405 Kenwood Road
281 400030934 2 GSMC (ACLP) Woodwinds Office Center 20270-20276 Middlebelt
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282 09-0001091 2 GSMC (Archon) Larchmont Boulevard Building 242-252 Larchmont Boulevard
283 09-0001147 1 GSMC (Archon) Comfort Inn - Mobile, Alabama 5650 Tillman's Corner Parkway
284 400030871 1 GSMC (ACLP) Padonia Park 200 West Padonia Road
285 09-0001073 2 GSMC (Archon) Ridgecrest Shopping Center 8300 Long Point Road
286 400029297 1 GSMC (ACLP) Herndon Office Building 2875 Towerview Road
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287 O0348 1 GSMC (CPC) Treemont Office Building 1044 Liberty Park Drive
288 09-0001105 1 GSMC (Archon) Days Inn - New Castle 3 Memorial Drive
289 O0253 2 GSMC (CPC) Country Club Court - Building 6 2474 North University Avenue
290 09-0001060 1 GSMC (Archon) Comfort Inn - Granbury 1201 North Plaza Drive
291 M0262 2 GSMC (CPC) Oakwood Heights Apartments 1615 - 7th Street SE
- ---------------------------------------------------------------------------------------------------------------------------------
292 M0220 2 GSMC (CPC) 121 Seaman Avenue 121 Seaman Avenue
293 M0290 2 GSMC (CPC) Geneva Apartments 110 & 120 15th Street Court
294 I0074 1 GSMC (CPC) Dime Circle Industrial Building 3636 Dime Circle
295 09-0001141 1 GSMC (Archon) Super 8 - Salsbury 2615 North Salisbury Road
296 400029235 2 GSMC (ACLP) The Arbour Building 440 East Sample Road
- ---------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 1 GSMC (Archon) Days Inn - Enterprise 714 Boll Weevil Circle
298 09-0001057 1 GSMC (Archon) CVS - Johnson City 345 Main Street
299 400029126 2 GSMC (ACLP) Shiloh Place Shopping Center 3655 Shiloh Road
300 09-0001058 1 GSMC (Archon) Super 8 - Brunswick 99 Palisade Drive
301 09-0001094 1 GSMC (Archon) Office Max 2130 North Diers Avenue
- ---------------------------------------------------------------------------------------------------------------------------------
302 O0541 2 GSMC (CPC) Leawood Corporate Manor IV 5101 College Boulevard
303 R0887 2 GSMC (CPC) Southside Village Shopping Center 1208-1218 South Frazier
304 400029253 2 GSMC (ACLP) 1616 West Shaw 1616 W. Shaw Avenue
305 400030869 1 GSMC (ACLP) The Park Square Apartments 4019 Park Square Drive
306 400029304 1 GSMC (ACLP) Gateway Office Park 609-617 Dingens Street
- ---------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 2 GSMC (Archon) Shadow Glen Apartments 3435 St. Francis Street
308 400029210 2 GSMC (ACLP) Litchfield Park Plaza 501-555 Plaza Circle
309 M0288 2 GSMC (CPC) Southview Apartments 1000-1st Street NE and 200-11th Avenue East
310 M0289 2 GSMC (CPC) The Crossings Apartments #3-14th Avenue NE
311 09-0001069 1 GSMC (Archon) EconoLodge - Nashville 110 Maplewood Lane
- ---------------------------------------------------------------------------------------------------------------------------------
312 M0364 2 GSMC (CPC) Riverchase Apartments 1565 Fitzgerald's Boulevard
313 400030870 1 GSMC (ACLP) Park Ridge Apartments 1620 South Pecan Drive
314 400029291 1 GSMC (ACLP) Keeney Mall 465-485 Hartford Road
315 09-0001077 1 GSMC (Archon) Days Inn - Walthall, VA 2310 Indian Hills Road
316 R0634 1 GSMC (CPC) Piggly Wiggly - Andrews, SC 15 West Ashland Street
- ---------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 2 GSMC (Archon) The Mason Apartments 4302-4306 McKinney Avenue
318 M0172 2 GSMC (CPC) Roxbury Crossing Apartments 1458-1460 Tremont Street/1715 Parker Street
319 MU0114 2 GSMC (CPC) Murphy Road Business Center 13405, 13407, 13409 Murphy Road
320 09-0001036 2 GSMC (Archon) McKinney Avenue Apartments 4238 McKinney Avenue
321 R0886 2 GSMC (CPC) Plaza del Oro Shopping Center 7800 Almeda Road
- ---------------------------------------------------------------------------------------------------------------------------------
322 400029246 2 GSMC (ACLP) Columbia East Dundee Shopping Center 501 to 505 South Dundee Avenue
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONTROL LOAN ZIP PROPERTY ORIGINAL CUT-OFF
NUMBER NUMBER CITY STATE CODE TYPE BALANCE DATE BALANCE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 ACS $ 148,500,000 $ 147,597,677
1a ACS-A Denver CO 80216 Industrial 1,768,537 1,757,790
1b ACS-B Bettendorf IA 52722 Industrial 4,107,568 4,082,610
1c ACS-C Boston MA 02118 Industrial 2,110,834 2,098,008
1d ACS-D Burley ID 83318 Industrial 10,012,198 9,951,361
- ------------------------------------------------------------------------------------------------------------------------------
1e ACS-E Burlington WA 98233 Industrial 4,506,915 4,479,530
1f ACS-F Clearfield UT 84041 Industrial 7,929,889 7,881,705
1g ACS-G Connell WA 99326 Industrial 6,532,175 6,492,483
1h ACS-H Gloucester MA 01937 Industrial 2,367,557 2,353,171
1i ACS-I Fogelsville PA 18051 Industrial 16,430,273 16,330,438
- ------------------------------------------------------------------------------------------------------------------------------
1j ACS-J Fort Dodge IA 50501 Industrial 1,354,927 1,346,694
1k ACS-K Hermiston OR 97838 Industrial 6,703,323 6,662,592
1l ACS-L Los Angeles CA 90023 Industrial 2,082,309 2,069,656
1m ACS-M Tampa FL 33611 Industrial 128,362 127,582
1n ACS-N Milwaukie OR 97222 Industrial 5,391,184 5,358,425
- ------------------------------------------------------------------------------------------------------------------------------
1o ACS-O Moses Lake WA 98837 Industrial 9,755,475 9,696,198
1p ACS-P Nampa ID 83653 Industrial 5,819,055 5,783,697
1q ACS-Q Plant City FL 33566 Industrial 684,595 680,435
1r ACS-R Plover WI 54467 Industrial 13,634,845 13,551,996
1s ACS-S Gloucester MA 01937 Industrial 656,070 652,083
- ------------------------------------------------------------------------------------------------------------------------------
1t ACS-T Rochelle IL 61068 Industrial 7,017,096 6,974,458
1u ACS-U Gloucester MA 01937 Industrial 3,480,023 3,458,878
1v ACS-V Gloucester MA 01937 Industrial 4,079,044 4,054,258
1w ACS-W Salem OR 97269 Industrial 9,299,078 9,242,575
1x ACS-X Altanta GA 30310 Industrial 3,052,152 3,033,606
- ------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y Turlock CA 95380 Industrial 2,595,755 2,579,982
1z ACS-Z Walla Walla WA 99362 Industrial 2,852,478 2,835,146
1aa ACS-AA Wallula WA 99363 Industrial 1,939,685 1,927,899
1bb ACS-BB Watsonville CA 95076 Industrial 5,191,510 5,159,965
1cc ACS-CC Woodburn OR 97071 Industrial 7,017,095 6,974,458
- ------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 110,000,000 109,149,602
2a AIM-1A San Mateo CA 94403 Multifamily 29,541,184 29,312,804
2b AIM-1B Milwaukee OR 97222 Multifamily 3,775,357 3,746,170
2c AIM-1C Pasadena CA 91101 Multifamily 5,022,519 4,983,690
2d AIM-1D Norwalk CA 90650 Multifamily 4,158,597 4,126,447
- ------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E Merrillville IN 46410 Multifamily 3,253,311 3,228,160
2f AIM-1F Citrus Heights CA 95621 Multifamily 5,645,175 5,601,533
2g AIM-1G Flagstaff AZ 86001 Multifamily 5,981,972 5,935,726
2h AIM-1H San Dimas CA 91773 Multifamily 7,256,664 7,200,564
2i AIM-1I Evansville IN 47710 Multifamily 6,339,064 6,290,057
- ------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J Fremont CA 94538 Multifamily 13,649,475 13,543,952
2k AIM-1K Monroe LA 71201 Multifamily 2,282,858 2,265,209
2l AIM-1L Omaha NE 68134 Multifamily 4,501,649 4,466,847
2m AIM-1M College Park MD 20740 Multifamily 12,286,057 12,191,075
2n AIM-1N El Paso TX 79935 Multifamily 3,367,764 3,341,728
- ------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O Little Rock AR 72227 Multifamily 2,938,354 2,915,638
3 09-1001006 105,000,000 104,748,392
3a 09-1001006A Dallas TX 77063 Movie Theatre 12,443,986 12,414,167
3b 09-1001006B Woodland Hills CA 91367 Movie Theatre 19,192,217 19,146,227
3c 09-1001006C Houston TX 77063 Movie Theatre 16,096,698 16,058,126
- ------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D Ontario CA 91764 Movie Theatre 17,025,354 16,984,557
3e 09-1001006E Creve Coeur MO 63141 Movie Theatre 11,515,330 11,487,736
3f 09-1001006F San Antonio TX 78203 Movie Theatre 10,772,406 10,746,592
3g 09-1001006G Columbus OH 43212 Movie Theatre 8,048,349 8,029,063
3h 09-1001006H San Diego CA 92108 Movie Theatre 9,905,660 9,881,923
- ------------------------------------------------------------------------------------------------------------------------------
4 SkyII 87,700,000 87,423,946
4a SkyIIA Falls Church VA 22041 Office 69,200,000 68,982,179
4b SkyIIB Falls Church VA 22041 Office 18,500,000 18,441,767
5 ANADC Washington DC 20037 Luxury Hotel 47,000,000 47,000,000
6 09-0001076 Tulsa OK 74103 Office 33,000,000 32,909,936
- ------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 Hershey PA 17033 Anchored Retail 25,600,000 25,580,579
400029224 25,500,000 25,422,364
8 400029224A New York NY 10011 Unanchored Retail 9,950,000 9,919,707
9 400029218B New York NY 10028 Unanchored Retail 5,850,000 5,832,189
10 400029222C New York NY 10016 Unanchored Retail 3,880,000 3,868,187
- -----------------------------------------------------------------------------------------------------------------------------
11 400029227D New York NY Multifamily 3,270,000 3,260,044
12 400029219E New York NY 10019 Unanchored Retail 2,550,000 2,542,236
13 09-0001116 Portland OR 97205 Luxury Hotel 24,500,000 24,447,349
400029220 22,520,000 22,451,437
14 400029220A New York NY 10038 Unanchored Retail 6,860,000 6,839,114
- -----------------------------------------------------------------------------------------------------------------------------
15 400029221B New York NY 10021 Unanchored Retail 6,220,000 6,201,063
16 400029226C New York NY 10022 Unanchored Retail 4,510,000 4,496,269
17 400029223D New York NY UAV Office 3,250,000 3,240,105
18 400029225E New York NY 10011 Unanchored Retail 1,680,000 1,674,885
19 400030965 Independence OH 44131 Full Service Hotel 21,800,000 21,777,411
- -----------------------------------------------------------------------------------------------------------------------------
20 09-0001168 Bristol WI 53142 Unanchored Retail 21,500,000 21,500,000
21 09-0001099 Katonah NY 10536 Hospital 21,350,000 21,308,138
22 SP007 Bayamon PR 00946 Hospital 21,000,000 20,934,186
23 400029141 Ypsilanti MI 48198 Industrial 20,000,000 19,682,137
24 400028225 Torrance CA 90505 Anchored Retail 18,968,000 18,780,204
- ------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 San Juan PR 00918 Office 17,500,000 17,443,569
26 09-0001117 17,400,000 17,379,422
26a 09-0001117A Worthington OH 43085 Assisted Living Facility 4,928,493
26b 09-0001117B Worthington OH 43085 Assisted Living Facility 2,723,641
26c 09-0001117C Upper Arlington OH 43221 Assisted Living Facility 4,863,644
- ------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D Bexley OH 43209 Assisted Living Facility 4,863,644
27 L0137 New York NY 10019 Underlying Fee 15,000,000 15,000,000
28 400030913 New York NY 10019 Unanchored Retail 14,500,000 14,488,530
29 09-0001122 Visalia CA 93277 Anchored Retail 14,200,000 14,180,655
30 09-0001102 Seattle WA 98101 Luxury Hotel 13,500,000 13,468,954
- ------------------------------------------------------------------------------------------------------------------------------
31 400030964 Hudson OH 44236 Full Service Hotel 13,300,000 13,286,218
32 400029308 Dallas TX 75202 Full Service Hotel 13,000,000 12,955,916
33 400029207 Queensbury NY 14202 Anchored Retail 12,800,000 12,765,411
34 09-0001115 Seattle WA 98101 Luxury Hotel 12,500,000 12,473,935
35 R0421 Canoga Park CA 91307 Anchored Retail 12,500,000 12,461,778
- ------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 12,500,000 12,457,214
36a 09-0001040A Chelmsford MA 01824 Industrial 5,102,531
36b 09-0001040B Chelmsford MA 01824 Industrial 3,765,316
36c 09-0001040C Chelmsford MA 01824 Industrial 3,589,367
37 M0514 Columbia MD 21044 Multifamily 11,850,000 11,839,014
- ------------------------------------------------------------------------------------------------------------------------------
38 400030914 Lancaster CA 93536 Industrial 11,250,000 11,240,815
39 O0179 Vista CA 92069 Office 10,700,000 10,679,600
40 400028275 Anchored Retail 10,600,000 10,524,052
40a 400028275A Cottonwood AZ 86326 Anchored Retail 5,733,794
40b 400028275B Casa Grande AZ 85222 Anchored Retail 4,790,258
- ------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 East Wenatchee WA 98802 Anchored Retail 10,200,000 10,165,354
42 09-0001100 Saratoga Springs NY 12866 Hospital 10,150,000 10,130,099
43 09-0001101 Bellevue WA 98004 Full Service Hotel 10,150,000 10,127,155
44 09-0001123 Westminister CA 92683 Multifamily 10,050,000 10,035,229
45 09-0001042 Houston TX 77077 Multifamily 9,800,000 9,756,251
- ------------------------------------------------------------------------------------------------------------------------------
46 O0311 Atlanta GA 30338 Office 9,500,000 9,467,897
47 O0320 Los Angeles CA 90048 Nursing Home, Skilled 9,400,000 9,376,948
48 M0171 Fremont CA 94538 Multifamily 9,400,000 9,370,479
49 R0280 Valdosta GA 31601 Anchored Retail 9,440,000 9,307,092
50 400029282 Ann Arbor MI 48106 Office 8,800,000 8,782,994
- ------------------------------------------------------------------------------------------------------------------------------
51 M0462 Memphis TN 38118 Multifamily 8,740,000 8,732,563
52 400030935 Nashville TN 37228 Office 8,660,000 8,653,258
53 400028228 Sterling Heights MI 48312 Anchored Retail 8,242,000 8,132,960
54 L0149 Folsom CA 95630 Full Service Hotel 8,100,000 8,074,387
55 O0265 Westport CT 06880 Office 8,000,000 8,000,000
- ------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 Baton Rouge LA 70816 Office 8,006,795 7,981,112
57 400028277 Miami FL 33156 Unanchored Retail 7,700,000 7,641,681
58 09-0001135 Farmington NM 87401 Full Service Hotel 7,580,000 7,571,276
59 400030880 7,575,000 7,560,201
59a 400030880A Charlottesville VA 22903 Limited Svc. Hotel 1,835,891
- ------------------------------------------------------------------------------------------------------------------------------
59b 400030880B Bristol VA 24201 Limited Svc. Hotel 917,946
59c 400030880C Roanoke VA 24016 Limited Svc. Hotel 1,468,713
59d 400030880D Richmond VA 23237 Limited Svc. Hotel 936,305
59e 400030880E Sandston VA 23150 Limited Svc. Hotel 1,299,811
59f 400030880F Virginia Beach VA 23452 Limited Svc. Hotel 1,101,535
- ------------------------------------------------------------------------------------------------------------------------------
60 O0090 Hot Springs Village AR 71909 Anchored Retail 7,300,000 7,282,223
61 09-0001066 Freeport NY 11520 Nursing Home, Skilled 7,000,000 6,972,028
62 09-0001041 6,800,000 6,776,724
62a 09-0001041A Loveland CO 80538 Mobile Home Park 1,915,161
62b 09-0001041B Pueblo CO 81001 Mobile Home Park 4,198,623
- ------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C Aztec NM 82604 Mobile Home Park 662,940
63 O0148 Laurel MD 20707 Office 6,600,000 6,565,267
64 09-0001167 Lebanon NH 03766 Anchored Retail 6,514,000 6,514,000
65 R0297 Sterling VA 20165 Unanchored Retail 6,500,000 6,482,783
66 O0244 Memphis TN 38118 Office 6,500,000 6,469,538
- ------------------------------------------------------------------------------------------------------------------------------
67 400029255 Fresno CA 93720 Unanchored Retail 6,450,000 6,433,298
68 400029205 Cheektowaga NY 14225 Industrial 6,100,000 6,075,342
69 09-0001136 Roswell NM 88201 Full Service Hotel 5,812,500 5,805,917
70 400029172 West Hartford CT 06119 Office 5,730,000 5,707,689
71 R0134 Columbia SC 29203 Anchored Retail 5,650,000 5,555,332
- ------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 5,500,000 5,493,370
72a 09-0001133A Denver CO 80239 Self-Storage 2,142,069
72b 09-0001133B Thornton CO 80221 Self-Storage 1,796,574
72c 09-0001133C Westminster CO 80030 Self-Storage 1,554,727
73 09-0001082 Dallas TX 75237 Multifamily 5,482,500 5,470,880
- ------------------------------------------------------------------------------------------------------------------------------
74 400030867 Arcadia CA 91006 Unanchored Retail 5,470,000 5,458,001
75 400030966 North Canton OH 44718 Limited Svc. Hotel 5,400,000 5,394,404
76 09-0001065 Rio Rancho NM 87124 Full Service Hotel 5,400,000 5,377,414
77 400029184 La Porte TX 77571 Industrial 5,400,000 5,366,848
78 400029251 Memphis TN 38118 Unanchored Retail 5,350,000 5,338,720
- ------------------------------------------------------------------------------------------------------------------------------
79 400030922 Washington DC 20003 Office 5,320,000 5,315,613
80 R0311 Folsom CA 95630 Unanchored Retail 5,250,000 5,236,093
81 400029139 Burlington VT 05401 Multifamily 5,200,000 5,161,627
82 R0514 Adelphi MD 20783 Anchored Retail 5,120,000 5,109,619
83 09-0001044 West Palm Beach FL 33401 Assisted Living Facility 5,000,000 4,986,189
- ------------------------------------------------------------------------------------------------------------------------------
84 400029161 Danbury CT 06811 Office 5,000,000 4,979,829
85 400029171 Calabasas CA 91302 Unanchored Retail 5,000,000 4,975,196
86 R0559 Lincoln NE 68501 Anchored Retail 4,965,000 4,948,330
87 400029274 Valley Springs CA 95252 Anchored Retail 4,880,000 4,869,949
88 R0463 Ruston LA 71270 Anchored Retail 4,850,000 4,850,000
- ------------------------------------------------------------------------------------------------------------------------------
89 400029257 Cincinnati OH 45238 Multifamily 4,800,000 4,786,473
90 400029169 Tulsa OK 74135 Multifamily 4,750,000 4,720,294
91 400031048 Palm Springs CA 92262 Multifamily 4,600,000 4,592,526
92 400029237 Dundalk MD 21222 Self-Storage 4,600,000 4,583,607
93 400029202 Houston TX 77074 Multifamily 4,560,000 4,540,699
- ------------------------------------------------------------------------------------------------------------------------------
94 O0359 Maitland FL 32810 Office 4,500,000 4,496,384
95 M0330 4,500,000 4,493,481
95a M0330A Lafayette LA 70503 Multifamily 2,049,658
95b M0330B Lafayette LA 70506 Multifamily 2,443,823
96 R0464 West Monroe LA 71291 Anchored Retail 4,500,000 4,491,719
- ------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 Renton WA 98055 Office 4,500,000 4,487,381
98 400029262 Minneapolis MN 55401 Office 4,500,000 4,486,242
99 400029134 Middletown OH 45044 Anchored Retail 4,500,000 4,474,681
100 400029200 Buffalo NY 14203 Parking Garage 4,500,000 4,433,463
101 R0533 Lexington KY 40505 Unanchored Retail 4,400,000 4,384,562
- ------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 Gallup NM 87301 Full Service Hotel 4,385,000 4,379,953
103 400029214 4,400,000 4,363,851
103a 400029214A Albuquerque NM 87112 Child Care 466,042
103b 400029214B Alburquerque NM 87105 Child Care 463,394
103c 400029214C Bernalillo NM 87004 Child Care 296,572
- ------------------------------------------------------------------------------------------------------------------------------
103d 400029214D Albuquerque NM 87114 Child Care 463,394
103e 400029214E Albuquerque NM 87120 Child Care 598,441
103f 400029214F Santa Fe NM 87501 Child Care 460,746
103g 400029214G Albuquerque NM 87108 Child Care 545,481
103h 400029214H Rio Rancho NM 87124 Child Care 460,746
- ------------------------------------------------------------------------------------------------------------------------------
103i 400029214I Albuquerque NM 87122 Child Care 609,033
104 MH0020 Springfield IL 62702 Mobile Home Park 4,350,000 4,350,000
105 400029166 Cleveland OH 44115 Office 4,350,000 4,317,461
106 400029173 4,300,000 4,274,867
106a 400029173A Hartford CT 06103 Office 1,062,279
- ------------------------------------------------------------------------------------------------------------------------------
106b 400029173B West Hartford CT 06107 Unanchored Retail 701,748
106c 400029173C West Hartford CT 06107 Unanchored Retail 1,023,650
106d 400029173D West Hartford CT 06117 Unanchored Retail 1,081,593
106e 400029173E West Hartford CT 06107 Unanchored Retail 405,597
107 09-0001110 Farmers Branch TX 75234 Industrial 4,200,000 4,195,166
- ------------------------------------------------------------------------------------------------------------------------------
108 R0315 Winchester KY 40391 Anchored Retail 4,200,000 4,193,946
109 400029147 Wilmette IL 60091 Unanchored Retail 4,140,000 4,117,998
110 09-0001160 Houston TX 77019 Multifamily 4,050,000 4,050,000
111 400030896 Bend OR 97701 Anchored Retail 4,000,000 3,995,148
112 400029299 Naperville IL 60540 Multifamily 4,000,000 3,991,324
- ------------------------------------------------------------------------------------------------------------------------------
113 400029232 Puyallup WA 98372 Multifamily 4,000,000 3,988,673
114 M0415 Salinas CA 93906 Multifamily 3,960,000 3,949,299
115 400029306 Austin TX 78705 Multifamily 3,950,000 3,944,024
116 400029252 Oakland Park FL 33334 Multifamily 3,850,000 3,830,519
117 400030886 3,825,000 3,817,527
- ------------------------------------------------------------------------------------------------------------------------------
117a 400030886A Norfolk VA 23502 Limited Svc. Hotel 898,242
117b 400030886B Harrisonburg VA 22801 Limited Svc. Hotel 2,919,285
118 400029217 Geneva IL 60134 Anchored Retail 3,800,000 3,773,850
119 M0429 Monroe LA 71203 Multifamily 3,760,000 3,746,987
120 400030875 Grand Rapids MI 49512 Limited Svc. Hotel 3,750,000 3,742,284
- ------------------------------------------------------------------------------------------------------------------------------
121 400029121 Orange City FL 32763 Anchored Retail 3,740,000 3,723,852
122 09-0001111 Gardena CA 90248 Industrial 3,700,000 3,697,091
123 R0458 Cordova TN 38018 Unanchored Retail 3,700,000 3,693,093
124 400030876 Lansing MI 48917 Limited Svc. Hotel 3,700,000 3,692,372
125 400029129 Hawthorne CA 90250 Office 3,700,000 3,675,091
- ------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 Kokomo IN 46902 Limited Svc. Hotel 3,675,000 3,662,008
127 09-0001140 Lewisville TX 75067 Limited Svc. Hotel 3,640,000 3,633,284
128 400028305 Little Rock AR 72211 Industrial 3,650,000 3,628,728
129 O0422 3,600,000 3,600,000
129a O0422A Middletown RI 02842 Office 2,412,565
- ------------------------------------------------------------------------------------------------------------------------------
129b O0422B Middleton RI 02842 Office 1,187,435
130 R0304 Hailey ID 83333 Anchored Retail 3,600,000 3,584,725
131 400029137 Upper Darby PA 19082 Multifamily 3,600,000 3,568,243
132 400030967 Copley Township OH 44321 Limited Svc. Hotel 3,500,000 3,496,373
133 400029178 Sommerville MA 02145 Multifamily 3,500,000 3,482,939
- ------------------------------------------------------------------------------------------------------------------------------
134 400028304 El Monte CA 91731 Anchored Retail 3,500,000 3,476,590
135 400029164 Milton FL 32570 Anchored Retail 3,500,000 3,476,093
136 400028210 Dallas TX 75229 Multifamily 3,525,000 3,470,313
137 400029181 Buffalo NY 14222 Anchored Retail 3,487,500 3,461,514
138 400029234 Clewiston FL 33440 Anchored Retail 3,470,000 3,461,128
- ------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 San Diego CA 92127 Industrial 3,451,000 3,443,724
140 09-0001053 Norwalk CT 06853 Office 3,450,000 3,440,724
141 09-0001064 Fort Washington PA 19034 Limited Svc. Hotel 3,400,000 3,376,989
142 O0259 Alameda CA 94502 Office 3,375,000 3,358,673
143 R0743 Weston FL 33326 Unanchored Retail 3,240,000 3,233,651
- ------------------------------------------------------------------------------------------------------------------------------
144 400027540 Upper Marlboro MD 20722 Anchored Retail 3,247,500 3,219,026
145 09-0001130 Denham LA 70726 Anchored Retail 3,200,000 3,196,130
146 400029116 Newport News VA 23602 Anchored Retail 3,250,000 3,195,299
147 400029267 Falls Church VA 22046 Unanchored Retail 3,210,000 3,189,386
148 400029190 Orlando FL 32819 Limited Svc. Hotel 3,180,000 3,161,534
- ------------------------------------------------------------------------------------------------------------------------------
149 400029250 3,157,000 3,143,720
149a 400029250A Springfield VA 22150 Self-Storage 1,571,860
149b 400029250B Springfield VA 22150 Industrial 1,571,860
150 L0237 Lancaster OH 43130 Full Service Hotel 3,127,000 3,123,296
151 09-0001114 Phoenix AZ 85004 Limited Svc. Hotel 3,100,000 3,093,474
- ------------------------------------------------------------------------------------------------------------------------------
152 400029154 Dundas MN 55019 Anchored Retail 3,110,000 3,093,076
153 M0263 Sartell MN 56379 Multifamily 3,100,000 3,087,007
154 400029143 Colorado Springs CO 80917 Unanchored Retail 3,080,000 3,066,250
155 400029189 New York NY 10028 Unanchored Retail 3,025,000 3,011,912
156 09-0001163 Lancaster OH 43130 Mobile Home Park 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
157 400031128 Los Angeles CA 90024 Multifamily 3,000,000 2,997,437
158 400029213 Hallandale FL 33009 Office 3,000,000 2,992,271
159 09-0001045 Marietta GA 30067 Multifamily 3,000,000 2,990,018
160 400029197 Stoughton MA 02072 Industrial 3,000,000 2,987,166
161 09-0001098 Goodlettsville TN 37072 Limited Svc. Hotel 3,000,000 2,984,593
- ------------------------------------------------------------------------------------------------------------------------------
162 L0171 Nashville TN 37203 Limited Svc. Hotel 3,000,000 2,983,179
163 09-0001107 Columbus GA 31903 Multifamily 2,985,000 2,981,475
164 09-0001056 Austin TX 78750 Unanchored Retail 2,950,000 2,942,496
165 M0487 Monroe LA 71201 Multifamily 2,945,000 2,939,401
166 400029149 Burnsville MN 55337 Industrial 2,950,000 2,933,499
- ------------------------------------------------------------------------------------------------------------------------------
167 O0393 Elkridge MD 21227 Office 2,880,000 2,872,295
168 400029158 Overland Park KS 66212 Limited Svc. Hotel 2,850,000 2,829,759
169 09-0001062 Houston TX 77057 Limited Svc. Hotel 2,825,000 2,805,042
170 400030890 Las Vegas NV 89120 Self-Storage 2,800,000 2,796,783
171 400029300 Harrisonburg VA 22801 Limited Svc. Hotel 2,800,000 2,796,625
- ------------------------------------------------------------------------------------------------------------------------------
172 400027560 Euless TX 77243 Multifamily 2,800,000 2,747,662
173 400029186 2,750,000 2,742,574
173a 400029186A Sylacauga AL 35150 Unanchored Retail 442,136
173b 400029186B Monroeville AL 36460 Unanchored Retail 425,515
173c 400029186C Paris TN 38242 Unanchored Retail 442,136
- ------------------------------------------------------------------------------------------------------------------------------
173d 400029186D Memphis TN 38114 Unanchored Retail 442,136
173e 400029186E West Memphis AR 72301 Unanchored Retail 435,488
173f 400029186F Alexander City AL 35010 Unanchored Retail 555,163
174 M0537 Jacksonville FL 33210 Multifamily 2,720,000 2,717,695
175 09-0001139 DeLand FL 32724 Limited Svc. Hotel 2,700,000 2,695,040
- ------------------------------------------------------------------------------------------------------------------------------
176 400029163 Fresno CA 93727 Office 2,700,000 2,689,284
177 400029212 Sterling Heights MI 48312 Anchored Retail 2,700,000 2,681,199
178 400030868 Arlington TX 76012 Multifamily 2,660,000 2,656,184
179 400029209 Littleton CO 80123 Unanchored Retail 2,650,000 2,638,535
180 09-0001113 San Antonio TX 78233 Limited Svc. Hotel 2,625,000 2,615,895
- ------------------------------------------------------------------------------------------------------------------------------
181 400029236 Utica NY 13502 Office 2,600,000 2,586,639
182 400029119 Mt. Pleasant WI 53406 Office 2,600,000 2,585,169
183 09-0001106 Coos Bay OR 97420 Nursing Home, Skilled 2,520,000 2,515,134
184 400030915 Milwaukee WI 53202 Unanchored Retail 2,500,000 2,498,077
185 09-0001067 Houston TX 77079 Limited Svc. Hotel 2,500,000 2,487,245
- ------------------------------------------------------------------------------------------------------------------------------
186 400029157 2,500,000 2,479,427
186a 400029157A Albuquerque NM 87111 Mixed Use 1,381,296
186b 400029157B Santa Fe NM 87501 Child Care 483,454
186c 400029157C Albuquerque NM 87110 Child Care 614,677
187 R0597 Columbus OH 43220 Unanchored Retail 2,460,000 2,458,119
- ------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 Houston TX 77063 Limited Svc. Hotel 2,450,000 2,445,356
189 400029187 2,425,000 2,418,452
189a 400029187A Anniston AL 36201 Unanchored Retail 417,762
189b 400029187B Opelika AL 36801 Unanchored Retail 541,785
189c 400029187C Albertville AL 35950 Unanchored Retail 401,443
- ------------------------------------------------------------------------------------------------------------------------------
189d 400029187D Birmingham AL 35206 Unanchored Retail 574,423
189e 400029187E Newnan GA 30263 Unanchored Retail 483,038
190 M0443 Orange Park FL 32073 Multifamily 2,400,000 2,397,966
191 400029199 2,400,000 2,378,400
191a 400029199A Salt Lake City UT UAV Limited Svc. Hotel 1,507,919
- ------------------------------------------------------------------------------------------------------------------------------
191b 400029199B Brigham City UT 84302 Limited Svc. Hotel 870,481
192 400029145 Salinas CA 93912 Industrial 2,400,000 2,376,404
193 400029192 2,385,000 2,374,905
193a 400029192A Ridgeland MS 39157 Office 1,763,187
193b 400029192B Ridgeland MS 39157 Office 611,718
- ------------------------------------------------------------------------------------------------------------------------------
194 400029201 Dunkirk NY 14048 Anchored Retail 2,380,000 2,368,055
195 09-0001038 Brandon FL 33511 Unanchored Retail 2,360,000 2,352,188
196 400030866 Annapolis MD 21401 Self-Storage 2,300,000 2,297,236
197 09-0001087 Southlake TX 76092 Unanchored Retail 2,300,000 2,296,828
198 400029238 Baltimore MD 21224 Self-Storage 2,300,000 2,291,738
- ------------------------------------------------------------------------------------------------------------------------------
199 400029183 Martinsburg WV 25401 Multifamily 2,300,000 2,290,025
200 400029194 Niagara Falls NY UAV Anchored Retail 2,300,000 2,287,334
201 400029160 Fairfax VA 22030 Office 2,300,000 2,283,457
202 09-0001084 Fort Worth TX 76116 Multifamily 2,275,000 2,270,721
203 400029204 Bakersfield CA 93309 Unanchored Retail 2,250,000 2,241,532
- ------------------------------------------------------------------------------------------------------------------------------
204 400029148 Kentwood MI 49508 Anchored Retail 2,250,000 2,237,141
205 400029216 2,200,000 2,193,085
205a 400029216A Omaha NE 68144 Mixed Use 475,693
205b 400029216B Omaha NE 68128 Industrial 1,021,341
205c 400029216C Omaha NE 68134 Office 538,652
- ------------------------------------------------------------------------------------------------------------------------------
205d 400029216D Omaha NE 68127 Industrial 157,398
206 400029208 Jenks OK 74037 Multifamily 2,200,000 2,190,202
207 400029162 Midlothian VA 23113 Office 2,200,000 2,190,120
208 R0254 Providence RI 02904 Anchored Retail 2,175,000 2,165,973
209 400028269 Findlay OH 45840 Multifamily 2,150,000 2,140,966
- ------------------------------------------------------------------------------------------------------------------------------
210 400029309 Las Vegas NV 89128 Unanchored Retail 2,137,000 2,133,001
211 L0200 Miami Beach FL 33139 Luxury Hotel 2,135,000 2,126,792
212 400029310 SeaTac WA 98188 Office 2,100,000 2,097,493
213 09-0001134 Dumfries VA 22026 Limited Svc. Hotel 2,100,000 2,096,072
214 L0300 Banner Elk NC 28604 Full Service Hotel 2,100,000 2,094,922
- ------------------------------------------------------------------------------------------------------------------------------
215 400029156 Miami FL 33137 Office 2,100,000 2,091,693
216 400029215 2,100,000 2,082,747
216a 400029215A Rio Rancho NM 87124 Child Care 657,018
216b 400029215B Albuquerque NM 87114 Child Care 755,571
216c 400029215C Albuquerque NM 87110 Child Care 670,158
- ------------------------------------------------------------------------------------------------------------------------------
217 400029211 Decatur IL 62521 Anchored Retail 2,080,000 2,069,886
218 L0184 North Myrtle Beach SC 29582 Limited Svc. Hotel 2,075,000 2,068,993
219 09-0001051 Dallas TX 75227 Multifamily 2,040,000 2,036,058
220 400030893 North Brunswick NJ 08902 Industrial 2,000,000 1,998,409
221 09-0001088 Franklin KY 42134 Limited Svc. Hotel 2,000,000 1,996,351
- ------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 Columbia MO 65201 Full Service Hotel 2,000,000 1,996,314
223 L0202 Douglas GA 31538 Full Service Hotel 2,000,000 1,992,251
224 400029294 Las Vegas NV 89118 Industrial 2,000,000 1,989,379
225 400029196 Little Neck NY 10314 Unanchored Retail 1,980,000 1,973,591
226 400028286 Zephyrhills FL 34248 Anchored Retail 2,000,000 1,970,285
- ------------------------------------------------------------------------------------------------------------------------------
227 400029191 West Burlington IA 52655 Anchored Retail 1,960,000 1,955,115
228 400029167 Baltimore MD 21230 Industrial 2,000,000 1,950,314
229 09-0001132 Nashville TN 37013 Limited Svc. Hotel 1,950,000 1,947,813
230 MU0036 Houston TX 77084 Unanchored Retail 1,930,000 1,930,000
231 09-0001112 Austin TX 78752 Office 1,920,000 1,917,423
- ------------------------------------------------------------------------------------------------------------------------------
232 R0807 North Port FL 34287 CTL / Retail 1,875,000 1,871,213
233 400029258 Concord CA 94518 Unanchored Retail 1,830,000 1,825,876
234 09-0001081 White House TN 37188 Limited Svc. Hotel 1,825,000 1,815,714
235 09-0001061 Ogdensburg NY 13669 CTL / Retail 1,827,400 1,812,183
236 R0480 Westland MI 48185 Anchored Retail 1,800,000 1,798,672
- ------------------------------------------------------------------------------------------------------------------------------
237 I0099 Philadelphia PA 19154 Industrial 1,800,000 1,798,573
238 400031123 San Antonio TX 78242 Multifamily 1,800,000 1,797,348
239 09-0001070 Ft. Worth TX 76116 Multifamily 1,800,000 1,796,427
240 09-0001074 Franklin KY 42134 Limited Svc. Hotel 1,800,000 1,790,985
241 09-0001039 Pulaski NY 13142 CTL / Retail 1,780,860 1,761,928
- ------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 Columbus OH 43222 Limited Svc. Hotel 1,762,500 1,758,067
243 400029185 College Station TX 77840 Multifamily 1,760,000 1,752,514
244 400030925 Lake Worth FL 33461 Unanchored Retail 1,750,000 1,747,809
245 M0264 St. Cloud MN 56304 Multifamily 1,750,000 1,742,665
246 09-0001083 San Antonio TX 78238 Limited Svc. Hotel 1,700,000 1,695,178
- ------------------------------------------------------------------------------------------------------------------------------
247 400029233 Bellmead TX 76705 Anchored Retail 1,700,000 1,692,452
248 09-0001071 Franklin KY 42134 Limited Svc. Hotel 1,700,000 1,691,512
249 09-0001079 Cave City KY 42127 Limited Svc. Hotel 1,700,000 1,691,338
250 09-0001072 Angleton TX 77515 Unanchored Retail 1,690,000 1,686,725
251 09-0001119 North Charleston SC 29405 Limited Svc. Hotel 1,675,000 1,669,271
- ------------------------------------------------------------------------------------------------------------------------------
252 400029188 Conway AR 72302 Multifamily 1,680,000 1,657,162
253 09-0001080 Cave City KY 42127 Limited Svc. Hotel 1,650,000 1,641,537
254 400029140 Ocala FL 34474 Unanchored Retail 1,650,000 1,636,457
255 400029248 Arlington VA 22213 Limited Svc. Hotel 1,650,000 1,636,144
256 R0633 Savannah GA 31406 Anchored Retail 1,625,000 1,619,133
- ------------------------------------------------------------------------------------------------------------------------------
257 400029206 Jessup MD 20794 Industrial 1,614,000 1,602,131
258 400029311 Boynton Beach FL 33435 Office 1,600,000 1,596,614
259 400029174 Rocky Hill CT 14624 Unanchored Retail 1,600,000 1,593,770
260 09-0001059 Decatur TX 76234 Limited Svc. Hotel 1,600,000 1,593,764
261 09-0001034 Addison TX 75248 Office 1,600,000 1,593,061
- ------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 Woodsville NH 03765 CTL / Retail 1,577,089 1,568,073
263 09-0001085 Seattle WA 98102 Industrial 1,550,000 1,548,047
264 09-0001054 Casa Grande AZ 85222 Limited Svc. Hotel 1,550,000 1,539,964
265 400029168 San Antonio TX 78223 Multifamily 1,550,000 1,537,778
266 09-0001137 Grants NM 87020 Full Service Hotel 1,535,000 1,533,233
- ------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 Albuquerque NM 87106 Office 1,500,000 1,497,093
268 400029182 Lynn MA 01902 Multifamily 1,500,000 1,494,043
269 07-0000000 Bakersfield CA 93309 Auto Dealership 1,500,000 1,493,092
270 400029228 Santa Fe NM 87501 Unanchored Retail 1,500,000 1,492,202
271 400029155 Hopedale MA 01747 Office 1,500,000 1,488,536
- ------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 Binghamton NY 13901 CTL / Retail 1,500,000 1,475,074
273 400029150 Miami FL 33122 Industrial 1,500,000 1,474,882
274 R0497 Franklin IN 46131 Unanchored Retail 1,475,000 1,473,865
275 400029290 Bowie MD 20715 Office 1,475,000 1,470,571
276 R0412 Galion OH 44833 Anchored Retail 1,475,000 1,468,981
- ------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 Henderson KY 42420 Limited Svc. Hotel 1,462,500 1,455,282
278 09-0001118 Columbia KY 42728 Limited Svc. Hotel 1,460,000 1,454,942
279 09-0001097 League City TX 77063 Limited Svc. Hotel 1,450,000 1,442,690
280 400029180 Blue Ash OH 45242 Unanchored Retail 1,440,000 1,427,640
281 400030934 Livonia MI 48152 Office 1,400,000 1,398,310
- ------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 Los Angeles CA 90004 Unanchored Retail 1,400,000 1,398,102
283 09-0001147 Mobile AL 36619 Limited Svc. Hotel 1,400,000 1,395,552
284 400030871 Cockeysville MD 21030 Unanchored Retail 1,400,000 1,394,878
285 09-0001073 Houston TX 77055 Unanchored Retail 1,370,000 1,365,668
286 400029297 Herndon VA 20171 Industrial 1,360,000 1,355,305
- ------------------------------------------------------------------------------------------------------------------------------
287 O0348 Austin TX 78746 Office 1,350,000 1,348,286
288 09-0001105 New Castle DE 19720 Limited Svc. Hotel 1,350,000 1,347,306
289 O0253 Provo UT 84604 Office 1,350,000 1,346,225
290 09-0001060 Granbury TX 76048 Limited Svc. Hotel 1,350,000 1,341,430
291 M0262 St. Cloud MN 56304 Multifamily 1,328,000 1,322,392
- ------------------------------------------------------------------------------------------------------------------------------
292 M0220 New York NY 10034 Multifamily 1,325,000 1,319,950
293 M0290 Sauk Rapids MN 56379 Multifamily 1,325,000 1,319,405
294 I0074 Austin TX 78744 Industrial 1,320,000 1,318,277
295 09-0001141 Salisbury MD 21801 Limited Svc. Hotel 1,300,000 1,297,574
296 400029235 Pompano Beach FL 33064 Office 1,250,000 1,244,632
- ------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 Enterprise AL 36330 Limited Svc. Hotel 1,200,000 1,195,827
298 09-0001057 Johnson City NY 13790 CTL / Retail 1,200,000 1,193,354
299 400029126 Kennesaw GA 30144 Unanchored Retail 1,200,000 1,190,197
300 09-0001058 Brunswick GA 31523 Limited Svc. Hotel 1,200,000 1,180,618
301 09-0001094 Grand Island NE 68803 Anchored Retail 1,180,000 1,168,920
- ------------------------------------------------------------------------------------------------------------------------------
302 O0541 Leawood KS 66211 Office 1,150,000 1,148,679
303 R0887 Conroe TX 77301 Unanchored Retail 1,145,000 1,145,000
304 400029253 Fresno CA 93711 Office 1,100,000 1,098,549
305 400030869 Arlington TX 76013 Multifamily 1,100,000 1,098,422
306 400029304 Cheektowaga NY 14206 Office 1,100,000 1,097,591
- ------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 Dallas TX 75228 Multifamily 1,064,000 1,061,977
308 400029210 Avondale AZ 85340 Office 1,050,000 1,047,308
309 M0288 Sartell MN 56377 Multifamily 1,050,000 1,045,599
310 M0289 St. Cloud MN 56304 Multifamily 1,000,000 995,809
311 09-0001069 Nashville TN 37207 Limited Svc. Hotel 1,000,000 994,952
- ------------------------------------------------------------------------------------------------------------------------------
312 M0364 Robinsonville MS 38664 Multifamily 960,000 959,266
313 400030870 Arlington TX 76013 Multifamily 900,000 898,725
314 400029291 Manchester CT 06119 Unanchored Retail 850,000 846,019
315 09-0001077 Colonial Heights VA 23834 Limited Svc. Hotel 800,000 798,087
316 R0634 Andrews SC 29510 Anchored Retail 800,000 797,111
- ------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 Dallas TX 75205 Multifamily 697,000 693,474
318 M0172 Boston MA 02120 Multifamily 625,000 621,814
319 MU0114 Stafford TX 77477 Industrial 615,000 615,000
320 09-0001036 Dallas TX 75205 Multifamily 590,750 587,761
321 R0886 Houston TX 77054 Unanchored Retail 560,000 560,000
- ------------------------------------------------------------------------------------------------------------------------------
322 400029246 East Dundee IL 60018 Unanchored Retail 525,000 524,068
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Percentage of Cross Anticipated Loan
CONTROL LOAN CUT-OFF COLLATERALIZED RELATED BALANCE LOAN MORTGAGE
NUMBER NUMBER Rate Balance Group Group at Maturity/ARD Type Rate
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 ACS 7.93% $ 116,872,746 Hyperamortizing 6.894%
1a ACS-A 0.09
1b ACS-B 0.22
1c ACS-C 0.11
1d ACS-D 0.53
- -----------------------------------------------------------------------------------------------------------------------------------
1e ACS-E 0.24
1f ACS-F 0.42
1g ACS-G 0.35
1h ACS-H 0.13
1i ACS-I 0.88
- -----------------------------------------------------------------------------------------------------------------------------------
1j ACS-J 0.07
1k ACS-K 0.36
1l ACS-L 0.11
1m ACS-M 0.01
1n ACS-N 0.29
- -----------------------------------------------------------------------------------------------------------------------------------
1o ACS-O 0.52
1p ACS-P 0.31
1q ACS-Q 0.04
1r ACS-R 0.73
1s ACS-S 0.04
- -----------------------------------------------------------------------------------------------------------------------------------
1t ACS-T 0.37
1u ACS-U 0.19
1v ACS-V 0.22
1w ACS-W 0.50
1x ACS-X 0.16
- -----------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y 0.14
1z ACS-Z 0.15
1aa ACS-AA 0.10
1bb ACS-BB 0.28
1cc ACS-CC 0.37
- -----------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 5.86 93,095,100 Balloon 8.500
2a AIM-1A 1.57
2b AIM-1B 0.20
2c AIM-1C 0.27
2d AIM-1D 0.22
- -----------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E 0.17
2f AIM-1F 0.30
2g AIM-1G 0.32
2h AIM-1H 0.39
2i AIM-1I 0.34
- -----------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J 0.73
2k AIM-1K 0.12
2l AIM-1L 0.24
2m AIM-1M 0.65
2n AIM-1N 0.18
- -----------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O 0.16
3 09-1001006 5.63 89,909,303 Hyperamortizing 6.772
3a 09-1001006A 0.67
3b 09-1001006B 1.03
3c 09-1001006C 0.86
- -----------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D 0.91
3e 09-1001006E 0.62
3f 09-1001006F 0.58
3g 09-1001006G 0.43
3h 09-1001006H 0.54
- -----------------------------------------------------------------------------------------------------------------------------------
4 SkyII 4.70 75,306,166 Hyperamortizing 7.049
4a SkyIIA 3.25
4b SkyIIB 1.44
5 ANADC 2.52 43,263,153 Balloon 6.750
6 09-0001076 1.77 28,989,616 Balloon 7.270
- -----------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 1.37 22,553,864 Hyperamortizing 7.390
400029224 1.37 22,093,545 Balloon 7.420
8 400029224A 0.53 (1) (A) 8,620,813
9 400029218B 0.31 (1) (A) 5,068,520
10 400029222C 0.21 (1) (A) 3,361,685
- -----------------------------------------------------------------------------------------------------------------------------------
11 400029227D 0.18 (1) (A) 2,833,172
12 400029219E 0.14 (1) (A) 2,209,354
13 09-0001116 1.31 (B) 19,795,832 Hyperamortizing 7.320
400029220 1.21 19,511,630 Balloon 7.420
14 400029220A 0.37 (2) (A) 5,943,596
- -----------------------------------------------------------------------------------------------------------------------------------
15 400029221B 0.33 (2) (A) 5,389,092
16 400029226C 0.24 (2) (A) 3,907,524
17 400029223D 0.17 (2) (A) 2,815,844
18 400029225E 0.09 (2) (A) 1,455,575
19 400030965 1.17 (3) (C) 18,015,302 Balloon 8.090
- -----------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 1.15 18,693,086 Balloon 6.880
21 09-0001099 1.14 (4) (D) 18,326,177 Balloon 9.470
22 SP007 1.12 18,950,960 Hyperamortizing 8.320
23 400029141 1.06 Fully-Amortizing 7.570
24 400028225 1.01 17,615,047 Balloon 8.320
- -----------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 0.94 15,419,158 Hyperamortizing 7.380
26 09-0001117 0.93 14,035,152 Balloon 7.270
26a 09-0001117A 0.26
26b 09-0001117B 0.15
26c 09-0001117C 0.26
- -----------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D 0.26
27 L0137 0.81 15,000,000 Balloon 6.910
28 400030913 0.78 (A) 12,705,867 Balloon 7.180
29 09-0001122 0.76 12,467,489 Balloon 7.250
30 09-0001102 0.72 (B) 10,732,962 Hyperamortizing 7.290
- -----------------------------------------------------------------------------------------------------------------------------------
31 400030964 0.71 (3) (C) 10,990,987 Balloon 8.090
32 400029308 0.70 10,373,239 Balloon 6.910
33 400029207 0.69 11,256,041 Balloon 7.310
34 09-0001115 0.67 (B) 10,148,897 Hyperamortizing 7.480
35 R0421 0.67 9,819,957 Balloon 7.580
- -----------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 0.67 10,948,389 Balloon 7.150
36a 09-0001040A 0.27
36b 09-0001040B 0.20
36c 09-0001040C 0.19
37 M0514 0.64 10,157,952 Balloon 6.370
- -----------------------------------------------------------------------------------------------------------------------------------
38 400030914 0.60 8,613,785 Balloon 7.020
39 O0179 0.57 9,904,611 Balloon 7.330
40 400028275 0.57 9,153,058 Hyperamortizing 7.270
40a 400028275A 0.31
40b 400028275B 0.26
- -----------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 0.55 8,940,890 Balloon 7.180
42 09-0001100 0.54 (4) (D) 8,712,444 Balloon 9.470
43 09-0001101 0.54 (B) 8,098,206 Hyperamortizing 7.420
44 09-0001123 0.54 8,752,249 Balloon 6.940
45 09-0001042 0.52 8,535,018 Balloon 6.940
- -----------------------------------------------------------------------------------------------------------------------------------
46 O0311 0.51 8,331,640 Balloon 7.200
47 O0320 0.50 8,346,217 Hyperamortizing 7.693
48 M0171 0.50 (E) 8,303,362 Balloon 7.480
49 R0280 0.50 Fully-Amortizing 7.260
50 400029282 0.47 7,733,509 Balloon 7.280
- -----------------------------------------------------------------------------------------------------------------------------------
51 M0462 0.47 7,583,812 Balloon 6.810
52 400030935 0.46 7,604,199 Balloon 7.260
53 400028228 0.44 (F) 6,733,006 Balloon 8.460
54 L0149 0.43 (G) 6,535,936 Balloon 7.270
55 O0265 0.43 8,000,000 Balloon 7.220
- -----------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 0.43 7,047,886 Balloon 7.400
57 400028277 0.41 6,689,090 Balloon 7.540
58 09-0001135 0.41 (H) 6,145,741 Balloon 7.440
59 400030880 0.41 (I) 6,212,538 Balloon 7.820
59a 400030880A 0.10
- -----------------------------------------------------------------------------------------------------------------------------------
59b 400030880B 0.05
59c 400030880C 0.08
59d 400030880D 0.05
59e 400030880E 0.07
59f 400030880F 0.06
- -----------------------------------------------------------------------------------------------------------------------------------
60 O0090 0.39 6,485,979 Balloon 7.720
61 09-0001066 0.37 5,727,729 Balloon 7.740
62 09-0001041 0.36 5,955,923 Hyperamortizing 7.150
62a 09-0001041A 0.10
62b 09-0001041B 0.23
- -----------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C 0.04
63 O0148 0.35 5,712,289 Balloon 7.320
64 09-0001167 0.35 Fully-Amortizing 6.170
65 R0297 0.35 5,727,669 Balloon 7.390
66 O0244 0.35 5,714,815 Balloon 7.295
- -----------------------------------------------------------------------------------------------------------------------------------
67 400029255 0.35 (J) 5,696,592 Balloon 7.480
68 400029205 0.33 5,250,452 Balloon 7.130
69 09-0001136 0.31 (H) 4,726,827 Balloon 7.540
70 400029172 0.31 (K) 4,953,436 Balloon 7.320
71 R0134 0.30 Fully-Amortizing 7.160
- -----------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 0.30 4,420,112 Balloon 7.150
72a 09-0001133A 0.12
72b 09-0001133B 0.10
72c 09-0001133C 0.08
73 09-0001082 0.29 4,773,943 Balloon 6.930
- -----------------------------------------------------------------------------------------------------------------------------------
74 400030867 0.29 4,404,889 Balloon 7.210
75 400030966 0.29 (3) (C) 4,462,506 Balloon 8.090
76 09-0001065 0.29 4,387,125 Balloon 7.500
77 400029184 0.29 4,499,209 Balloon 8.360
78 400029251 0.29 4,661,060 Balloon 6.950
- -----------------------------------------------------------------------------------------------------------------------------------
79 400030922 0.29 4,636,076 Balloon 6.970
80 R0311 0.28 (G) 4,626,194 Balloon 7.390
81 400029139 0.28 4,265,189 Hyperamortizing 7.050
82 R0514 0.27 4,478,447 Balloon 7.100
83 09-0001044 0.27 4,468,179 Balloon 7.950
- -----------------------------------------------------------------------------------------------------------------------------------
84 400029161 0.27 4,304,645 Balloon 7.140
85 400029171 0.27 4,370,287 Balloon 7.070
86 R0559 0.27 Fully-Amortizing 7.200
87 400029274 0.26 4,261,770 Balloon 7.040
88 R0463 0.26 4,240,407 Balloon 7.090
- -----------------------------------------------------------------------------------------------------------------------------------
89 400029257 0.26 4,202,456 Balloon 7.140
90 400029169 0.25 4,145,042 Balloon 7.040
91 400031048 0.25 3,952,923 Balloon 7.060
92 400029237 0.25 3,645,279 Balloon 7.280
93 400029202 0.24 3,994,540 Balloon 7.160
- -----------------------------------------------------------------------------------------------------------------------------------
94 O0359 0.24 3,934,973 Balloon 7.100
95 M0330 0.24 3,925,182 Balloon 7.000
95a M0330A 0.11
95b M0330B 0.13
96 R0464 0.24 3,972,873 Balloon 7.460
- -----------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 0.24 3,941,862 Balloon 7.160
98 400029262 0.24 3,649,884 Balloon 7.440
99 400029134 0.24 3,878,645 Balloon 7.190
100 400029200 0.24 2,133,957 Balloon 7.410
101 R0533 0.24 (M) Fully-Amortizing 7.300
- -----------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 0.24 (H) 3,555,286 Balloon 7.440
103 400029214 0.23 (L) 3,077,913 Balloon 7.750
103a 400029214A 0.03
103b 400029214B 0.02
103c 400029214C 0.02
- -----------------------------------------------------------------------------------------------------------------------------------
103d 400029214D 0.02
103e 400029214E 0.03
103f 400029214F 0.02
103g 400029214G 0.03
103h 400029214H 0.02
- -----------------------------------------------------------------------------------------------------------------------------------
103i 400029214I 0.03
104 MH0020 0.23 3,424,103 Balloon 6.490
105 400029166 0.23 3,519,939 Balloon 7.360
106 400029173 0.23 (K) 3,420,505 Balloon 7.420
106a 400029173A 0.06
- -----------------------------------------------------------------------------------------------------------------------------------
106b 400029173B 0.04
106c 400029173C 0.05
106d 400029173D 0.06
106e 400029173E 0.02
107 09-0001110 0.23 3,405,291 Hyperamortizing 7.440
- -----------------------------------------------------------------------------------------------------------------------------------
108 R0315 0.23 (M) 3,665,446 Balloon 7.020
109 400029147 0.22 3,591,728 Balloon 7.480
110 09-0001160 0.22 3,494,475 Balloon 6.600
111 400030896 0.21 3,210,663 Balloon 7.110
112 400029299 0.21 3,474,620 Balloon 6.840
- -----------------------------------------------------------------------------------------------------------------------------------
113 400029232 0.21 3,500,214 Balloon 7.120
114 M0415 0.21 (E) 3,482,337 Balloon 7.310
115 400029306 0.21 3,428,863 Balloon 6.820
116 400029252 0.21 3,018,862 Balloon 6.900
117 400030886 0.21 (I) 3,137,025 Balloon 7.820
- -----------------------------------------------------------------------------------------------------------------------------------
117a 400030886A 0.05
117b 400030886B 0.16
118 400029217 0.20 Fully-Amortizing 7.490
119 M0429 0.20 Fully-Amortizing 7.400
120 400030875 0.20 3,051,061 Balloon 7.550
- -----------------------------------------------------------------------------------------------------------------------------------
121 400029121 0.20 (N) 3,314,590 Balloon 7.610
122 09-0001111 0.20 3,244,711 Balloon 7.210
123 R0458 0.20 Fully-Amortizing 7.230
124 400030876 0.20 3,009,482 Balloon 7.540
125 400029129 0.20 3,172,814 Balloon 6.970
- -----------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 0.20 Fully-Amortizing 7.530
127 09-0001140 0.20 Fully-Amortizing 7.630
128 400028305 0.19 3,132,888 Balloon 7.010
129 O0422 0.19 3,148,345 Balloon 7.100
129a O0422A 0.13
- -----------------------------------------------------------------------------------------------------------------------------------
129b O0422B 0.06
130 R0304 0.19 3,152,761 Balloon 7.150
131 400029137 0.19 2,829,212 Balloon 6.980
132 400030967 0.19 (3) (C) 2,892,365 Balloon 8.090
133 400029178 0.19 3,011,857 Balloon 7.120
- -----------------------------------------------------------------------------------------------------------------------------------
134 400028304 0.19 2,651,486 Balloon 7.620
135 400029164 0.19 2,864,810 Balloon 7.830
136 400028210 0.19 2,319,917 Balloon 8.832
137 400029181 0.19 (O) 2,746,564 Balloon 7.055
138 400029234 0.19 (N) 3,068,537 Balloon 7.530
- -----------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 0.19 3,006,602 Hyperamortizing 6.950
140 09-0001053 0.18 3,035,413 Balloon 7.330
141 09-0001064 0.18 Fully-Amortizing 7.930
142 O0259 0.18 2,957,699 Balloon 7.170
143 R0743 0.17 Fully-Amortizing 6.830
- -----------------------------------------------------------------------------------------------------------------------------------
144 400027540 0.17 2,541,108 Balloon 8.565
145 09-0001130 0.17 2,570,117 Balloon 7.130
146 400029116 0.17 Fully-Amortizing 7.500
147 400029267 0.17 Fully-Amortizing 6.830
148 400029190 0.17 2,617,384 Balloon 7.940
- -----------------------------------------------------------------------------------------------------------------------------------
149 400029250 0.17 2,562,532 Balloon 7.470
149a 400029250A 0.08
149b 400029250B 0.08
150 L0237 0.17 2,521,525 Balloon 7.260
151 09-0001114 0.17 2,513,141 Hyperamortizing 7.430
- -----------------------------------------------------------------------------------------------------------------------------------
152 400029154 0.17 2,685,991 Balloon 7.360
153 M0263 0.17 (P) 2,718,418 Balloon 7.200
154 400029143 0.16 2,832,098 Balloon 6.940
155 400029189 0.16 2,643,638 Balloon 7.070
156 09-0001163 0.16 2,556,442 Balloon 6.160
- -----------------------------------------------------------------------------------------------------------------------------------
157 400031128 0.16 2,483,382 Balloon 6.790
158 400029213 0.16 2,650,913 Balloon 7.500
159 09-0001045 0.16 2,635,144 Balloon 7.260
160 400029197 0.16 2,428,489 Balloon 7.380
161 09-0001098 0.16 Fully-Amortizing 7.650
- -----------------------------------------------------------------------------------------------------------------------------------
162 L0171 0.16 2,482,059 Balloon 8.120
163 09-0001107 0.16 2,657,900 Balloon 7.810
164 09-0001056 0.16 2,610,008 Balloon 7.550
165 M0487 0.16 Fully-Amortizing 7.080
166 400029149 0.16 2,544,413 Balloon 7.220
- -----------------------------------------------------------------------------------------------------------------------------------
167 O0393 0.15 2,535,207 Balloon 7.350
168 400029158 0.15 2,324,972 Balloon 7.630
169 09-0001062 0.15 Fully-Amortizing 7.590
170 400030890 0.15 2,270,878 Balloon 7.450
171 400029300 0.15 2,250,239 Balloon 7.150
- -----------------------------------------------------------------------------------------------------------------------------------
172 400027560 0.15 Fully-Amortizing 8.270
173 400029186 0.15 (Q) 2,462,214 Balloon 8.030
173a 400029186A 0.02
173b 400029186B 0.02
173c 400029186C 0.02
- -----------------------------------------------------------------------------------------------------------------------------------
173d 400029186D 0.02
173e 400029186E 0.02
173f 400029186F 0.03
174 M0537 0.15 (5) (R) 2,361,455 Balloon 6.830
175 09-0001139 0.14 Fully-Amortizing 7.670
- -----------------------------------------------------------------------------------------------------------------------------------
176 400029163 0.14 (L) 2,502,864 Balloon 7.420
177 400029212 0.14 (F) 2,187,469 Balloon 7.820
178 400030868 0.14 2,039,157 Balloon 7.040
179 400029209 0.14 2,141,261 Balloon 7.320
180 09-0001113 0.14 Fully-Amortizing 7.680
- -----------------------------------------------------------------------------------------------------------------------------------
181 400029236 0.14 2,015,666 Balloon 7.360
182 400029119 0.14 2,237,380 Balloon 7.120
183 09-0001106 0.14 2,070,367 Balloon 7.880
184 400030915 0.13 2,198,594 Balloon 7.320
185 09-0001067 0.13 Fully-Amortizing 7.700
- -----------------------------------------------------------------------------------------------------------------------------------
186 400029157 0.13 (L) 2,056,964 Balloon 7.960
186a 400029157A 0.07
186b 400029157B 0.03
186c 400029157C 0.03
187 R0597 0.13 2,165,078 Balloon 7.350
- -----------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 0.13 Fully-Amortizing 7.390
189 400029187 0.13 (Q) 2,171,226 Balloon 8.030
189a 400029187A 0.02
189b 400029187B 0.03
189c 400029187C 0.02
- -----------------------------------------------------------------------------------------------------------------------------------
189d 400029187D 0.03
189e 400029187E 0.03
190 M0443 0.13 (5) (R) 2,083,637 Balloon 6.830
191 400029199 0.13 1,635,554 Balloon 7.630
191a 400029199A 0.08
- -----------------------------------------------------------------------------------------------------------------------------------
191b 400029199B 0.05
192 400029145 0.13 1,895,627 Balloon 7.160
193 400029192 0.13 2,089,249 Balloon 7.160
193a 400029192A 0.09
193b 400029192B 0.03
- -----------------------------------------------------------------------------------------------------------------------------------
194 400029201 0.13 (O) 1,940,902 Balloon 7.620
195 09-0001038 0.13 2,074,051 Balloon 7.280
196 400030866 0.12 1,849,546 Balloon 7.170
197 09-0001087 0.12 2,016,767 Balloon 7.200
198 400029238 0.12 1,820,148 Balloon 7.230
- -----------------------------------------------------------------------------------------------------------------------------------
199 400029183 0.12 2,009,509 Balloon 7.060
200 400029194 0.12 (O) 1,848,543 Balloon 7.140
201 400029160 0.12 1,822,639 Balloon 7.280
202 09-0001084 0.12 2,004,427 Balloon 7.380
203 400029204 0.12 1,994,728 Balloon 7.630
- -----------------------------------------------------------------------------------------------------------------------------------
204 400029148 0.12 1,935,746 Balloon 7.110
205 400029216 0.12 1,776,820 Balloon 7.300
205a 400029216A 0.03
205b 400029216B 0.05
205c 400029216C 0.03
- -----------------------------------------------------------------------------------------------------------------------------------
205d 400029216D 0.01
206 400029208 0.12 1,916,537 Balloon 6.950
207 400029162 0.12 (L) 1,977,490 Balloon 7.460
208 R0254 0.12 1,909,258 Balloon 7.240
209 400028269 0.12 1,884,865 Balloon 7.190
- -----------------------------------------------------------------------------------------------------------------------------------
210 400029309 0.11 1,465,656 Balloon 7.210
211 L0200 0.11 1,757,194 Balloon 7.940
212 400029310 0.11 1,690,793 Balloon 7.210
213 09-0001134 0.11 (S) Fully-Amortizing 7.510
214 L0300 0.11 1,635,314 Balloon 7.760
- -----------------------------------------------------------------------------------------------------------------------------------
215 400029156 0.11 1,812,105 Balloon 7.240
216 400029215 0.11 (L) 1,469,004 Balloon 7.750
216a 400029215A 0.04
216b 400029215B 0.04
216c 400029215C 0.04
- -----------------------------------------------------------------------------------------------------------------------------------
217 400029211 0.11 1,704,299 Balloon 7.780
218 L0184 0.11 1,696,630 Balloon 7.710
219 09-0001051 0.11 1,792,768 Balloon 7.280
220 400030893 0.11 1,751,164 Balloon 7.150
221 09-0001088 0.11 Fully-Amortizing 7.730
- -----------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 0.11 Fully-Amortizing 7.640
223 L0202 0.11 1,644,174 Balloon 7.900
224 400029294 0.11 1,367,844 Balloon 7.120
225 400029196 0.11 1,686,792 Balloon 7.790
226 400028286 0.11 1,371,797 Balloon 7.230
- -----------------------------------------------------------------------------------------------------------------------------------
227 400029191 0.11 1,737,571 Balloon 7.630
228 400029167 0.10 Fully-Amortizing 7.430
229 09-0001132 0.10 1,588,610 Balloon 7.600
230 MU0036 0.10 (6) (X) 1,550,790 Balloon 7.140
231 09-0001112 0.10 1,688,353 Balloon 7.310
- -----------------------------------------------------------------------------------------------------------------------------------
232 R0807 0.10 Fully-Amortizing 6.770
233 400029258 0.10 1,587,298 Balloon 7.470
234 09-0001081 0.10 Fully-Amortizing 7.720
235 09-0001061 0.10 (T) Fully-Amortizing 7.050
236 R0480 0.10 1,591,436 Balloon 7.530
- -----------------------------------------------------------------------------------------------------------------------------------
237 I0099 0.10 1,576,870 Balloon 7.170
238 400031123 0.10 1,567,149 Balloon 6.930
239 09-0001070 0.10 1,577,756 Balloon 7.180
240 09-0001074 0.10 Fully-Amortizing 7.840
241 09-0001039 0.09 (T) Fully-Amortizing 7.030
- -----------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 0.09 1,469,182 Balloon 8.380
243 400029185 0.09 1,540,947 Balloon 7.140
244 400030925 0.09 1,395,944 Balloon 6.910
245 M0264 0.09 (P) 1,534,591 Balloon 7.200
246 09-0001083 0.09 1,394,108 Balloon 7.810
- -----------------------------------------------------------------------------------------------------------------------------------
247 400029233 0.09 1,367,766 Balloon 7.180
248 09-0001071 0.09 Fully-Amortizing 7.860
249 09-0001079 0.09 Fully-Amortizing 7.710
250 09-0001072 0.09 (U) 1,484,803 Balloon 7.270
251 09-0001119 0.09 Fully-Amortizing 7.790
- -----------------------------------------------------------------------------------------------------------------------------------
252 400029188 0.09 Fully-Amortizing 6.970
253 09-0001080 0.09 Fully-Amortizing 7.660
254 400029140 0.09 1,024,509 Balloon 7.440
255 400029248 0.09 Fully-Amortizing 8.020
256 R0633 0.09 (7) (V) Fully-Amortizing 7.090
- -----------------------------------------------------------------------------------------------------------------------------------
257 400029206 0.09 1,092,921 Balloon 7.430
258 400029311 0.09 1,296,073 Balloon 7.400
259 400029174 0.09 (8) (K) 1,383,158 Balloon 7.320
260 09-0001059 0.09 1,314,190 Balloon 7.870
261 09-0001034 0.09 1,397,919 Balloon 7.060
- -----------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 0.08 Fully-Amortizing 7.110
263 09-0001085 0.08 1,371,657 Hyperamortizing 7.560
264 09-0001054 0.08 Fully-Amortizing 7.930
265 400029168 0.08 1,243,484 Balloon 7.080
266 09-0001137 0.08 (H) 1,244,554 Balloon 7.440
- -----------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 0.08 1,317,872 Balloon 7.270
268 400029182 0.08 1,293,769 Balloon 7.220
269 07-0000000 0.08 1,053,497 Hyperamortizing 8.440
270 400029228 0.08 (L) 1,216,674 Balloon 7.440
271 400029155 0.08 1,208,048 Balloon 7.890
- -----------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 0.08 (W) Fully-Amortizing 6.840
273 400029150 0.08 1,016,703 Balloon 7.460
274 R0497 0.08 1,297,172 Balloon 7.320
275 400029290 0.08 1,199,594 Balloon 7.530
276 R0412 0.08 1,202,995 Balloon 7.630
- -----------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 0.08 Fully-Amortizing 7.950
278 09-0001118 0.08 Fully-Amortizing 7.690
279 09-0001097 0.08 Fully-Amortizing 7.790
280 400029180 0.08 (O) 1,137,219 Balloon 7.155
281 400030934 0.08 1,124,773 Balloon 7.140
- -----------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 0.08 1,229,823 Balloon 7.270
283 09-0001147 0.07 Fully-Amortizing 7.130
284 400030871 0.07 Fully-Amortizing 7.420
285 09-0001073 0.07 (U) 1,105,461 Balloon 7.270
286 400029297 0.07 1,083,579 Balloon 7.480
- -----------------------------------------------------------------------------------------------------------------------------------
287 O0348 0.07 1,193,772 Balloon 7.530
288 09-0001105 0.07 1,103,613 Balloon 7.710
289 O0253 0.07 1,109,354 Balloon 7.880
290 09-0001060 0.07 Fully-Amortizing 8.070
291 M0262 0.07 (P) 1,163,626 Balloon 7.170
- -----------------------------------------------------------------------------------------------------------------------------------
292 M0220 0.07 1,173,211 Balloon 7.580
293 M0290 0.07 (P) 1,160,997 Balloon 7.170
294 I0074 0.07 1,164,007 Balloon 7.420
295 09-0001141 0.07 (S) Fully-Amortizing 7.530
296 400029235 0.07 1,011,257 Balloon 7.360
- -----------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 0.06 Fully-Amortizing 7.660
298 09-0001057 0.06 (W) Fully-Amortizing 6.990
299 400029126 0.06 955,843 Balloon 7.470
300 09-0001058 0.06 Fully-Amortizing 8.170
301 09-0001094 0.06 Fully-Amortizing 6.900
- -----------------------------------------------------------------------------------------------------------------------------------
302 O0541 0.06 932,682 Balloon 7.450
303 R0887 0.06 (6) (X) 920,028 Balloon 7.140
304 400029253 0.06 (J) 969,019 Balloon 7.380
305 400030869 0.06 (Y) 843,261 Balloon 7.040
306 400029304 0.06 886,081 Balloon 7.220
- -----------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 0.06 936,496 Balloon 7.340
308 400029210 0.06 928,286 Balloon 7.520
309 M0288 0.06 (P) 920,754 Balloon 7.200
310 M0289 0.05 (P) 876,909 Balloon 7.200
311 09-0001069 0.05 Fully-Amortizing 7.780
- -----------------------------------------------------------------------------------------------------------------------------------
312 M0364 0.05 844,909 Balloon 7.350
313 400030870 0.05 (Y) 691,507 Balloon 7.090
314 400029291 0.05 (8) (K) 675,600 Balloon 7.390
315 09-0001077 0.04 671,138 Balloon 8.610
316 R0634 0.04 (7) (V) Fully-Amortizing 7.090
- -----------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 0.04 (Z) 597,123 Balloon 6.930
318 M0172 0.03 508,474 Balloon 7.540
319 MU0114 0.03 (6) (X) 494,164 Balloon 7.140
320 09-0001036 0.03 (Z) 506,099 Balloon 6.930
321 R0886 0.03 (6) (X) 449,970 Balloon 7.140
- -----------------------------------------------------------------------------------------------------------------------------------
322 400029246 0.03 465,021 Balloon 7.590
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
First Interest Grace
Control Loan Note Payment Accrual Monthly Payment Period
Number Number Date Date Method Payment Frequency (Days)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 ACS 04/22/98 06/11/98 Actual Days / 360 Year-Days $1,048,596 Monthly 0
1a ACS-A 12,488 0
1b ACS-B 29,005 0
1c ACS-C 14,905 0
1d ACS-D 70,699 0
- -----------------------------------------------------------------------------------------------------------------------------------
1e ACS-E 31,824 0
1f ACS-F 55,995 0
1g ACS-G 46,125 0
1h ACS-H 16,718 0
1i ACS-I 116,018 0
- -----------------------------------------------------------------------------------------------------------------------------------
1j ACS-J 9,567 0
1k ACS-K 47,334 0
1l ACS-L 14,704 0
1m ACS-M 906 0
1n ACS-N 38,069 0
- -----------------------------------------------------------------------------------------------------------------------------------
1o ACS-O 68,886 0
1p ACS-P 41,090 0
1q ACS-Q 4,834 0
1r ACS-R 96,279 0
1s ACS-S 4,633 0
- -----------------------------------------------------------------------------------------------------------------------------------
1t ACS-T 49,549 0
1u ACS-U 24,573 0
1v ACS-V 28,803 0
1w ACS-W 65,663 0
1x ACS-X 21,552 0
- -----------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y 18,329 0
1z ACS-Z 20,142 0
1aa ACS-AA 13,697 0
1bb ACS-BB 36,659 0
1cc ACS-CC 49,549 0
- -----------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 12/29/97 02/01/98 Actual Days / 360 Year-Days 879,520 Monthly 5
2a AIM-1A 236,201 0
2b AIM-1B 30,186 0
2c AIM-1C 40,158 0
2d AIM-1D 33,251 0
- -----------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E 26,012 0
2f AIM-1F 45,137 0
2g AIM-1G 47,830 0
2h AIM-1H 58,022 0
2i AIM-1I 50,685 0
- -----------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J 109,136 0
2k AIM-1K 18,253 0
2l AIM-1L 35,994 0
2m AIM-1M 98,235 0
2n AIM-1N 26,927 0
- -----------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O 23,494 0
3 09-1001006 06/29/98 08/11/98 Actual Days / 360 Year-Days 689,148 Monthly 0
3a 09-1001006A 81,674 0
3b 09-1001006B 125,965 0
3c 09-1001006C 105,648 0
- -----------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D 111,743 0
3e 09-1001006E 75,579 0
3f 09-1001006F 70,703 0
3g 09-1001006G 52,824 0
3h 09-1001006H 65,014 0
- -----------------------------------------------------------------------------------------------------------------------------------
4 SkyII 05/14/98 07/11/98 Actual Days / 360 Year-Days 592,148 Monthly 0
4a SkyIIA 467,237 0
4b SkyIIB 124,912 0
5 ANADC 10/01/98 11/11/98 Actual Days / 360 Year-Days 268,047 Monthly 0
6 09-0001076 06/09/98 07/11/98 Actual Days / 360 Year-Days 225,566 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 08/07/98 10/01/98 Actual Days / 360 Year-Days 177,075 Monthly 0
400029224 05/08/98 07/01/98 30 Month-Days / 360 Year-Days 176,905 Monthly 5
8 400029224A 69,028
9 400029218B 40,584
10 400029222C 26,917
- -----------------------------------------------------------------------------------------------------------------------------------
11 400029227D 22,685
12 400029219E 17,690
13 09-0001116 07/22/98 09/01/98 Actual Days / 360 Year-Days 178,194 Monthly 5
400029220 05/08/98 07/01/98 30 Month-Days / 360 Year-Days 156,231 Monthly 5
14 400029220A 47,591
- -----------------------------------------------------------------------------------------------------------------------------------
15 400029221B 43,151
16 400029226C 31,288
17 400029223D 22,547
18 400029225E 11,655
19 400030965 08/14/98 10/01/98 Actual Days / 360 Year-Days 169,558 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 09/15/98 11/01/98 Actual Days / 360 Year-Days 141,312 Monthly 5
21 09-0001099 06/30/98 08/01/98 Actual Days / 360 Year-Days 186,089 Monthly 5
22 SP007 03/09/98 05/01/98 Actual Days / 360 Year-Days 158,801 Monthly 0
23 400029141 12/30/97 02/01/98 Actual Days / 360 Year-Days 161,976 Monthly 10
24 400028225 06/19/97 08/01/97 30 Month-Days / 360 Year-Days 143,435 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 04/16/98 06/11/98 Actual Days / 360 Year-Days 120,928 Monthly 0
26 09-0001117 08/20/98 10/01/98 Actual Days / 360 Year-Days 125,993 Monthly 5
26a 09-0001117A
26b 09-0001117B
26c 09-0001117C
- -----------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D
27 L0137 01/27/98 03/01/98 Actual Days / 360 Year-Days 89,254 Monthly 4
28 400030913 08/20/98 10/01/98 Actual Days / 360 Year-Days 98,228 Monthly 5
29 09-0001122 07/31/98 09/01/98 Actual Days / 360 Year-Days 96,869 Monthly 5
30 09-0001102 07/08/98 09/01/98 Actual Days / 360 Year-Days 98,860 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
31 400030964 08/14/98 10/01/98 Actual Days / 360 Year-Days 103,446 Monthly 5
32 400029308 07/01/98 08/01/98 Actual Days / 360 Year-Days 91,136 Monthly 10
33 400029207 05/21/98 07/01/98 Actual Days / 360 Year-Days 87,840 Monthly 10
34 09-0001115 07/22/98 09/01/98 Actual Days / 360 Year-Days 92,211 Monthly 5
35 R0421 04/03/98 06/01/98 Actual Days / 360 Year-Days 88,088 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 04/16/98 06/01/98 Actual Days / 360 Year-Days 84,426 Monthly 0
36a 09-0001040A
36b 09-0001040B
36c 09-0001040C
37 M0514 09/01/98 10/01/98 Actual Days / 360 Year-Days 73,890 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
38 400030914 08/12/98 10/01/98 Actual Days / 360 Year-Days 74,998 Monthly 5
39 O0179 06/29/98 08/01/98 Actual Days / 360 Year-Days 73,574 Monthly 5
40 400028275 12/04/97 02/01/98 30 Month-Days / 360 Year-Days 72,455 Monthly 10
40a 400028275A
40b 400028275B
- -----------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 04/30/98 06/01/98 Actual Days / 360 Year-Days 69,098 Monthly 0
42 09-0001100 06/30/98 08/01/98 Actual Days / 360 Year-Days 88,469 Monthly 5
43 09-0001101 07/08/98 09/01/98 Actual Days / 360 Year-Days 75,197 Monthly 5
44 09-0001123 07/31/98 09/01/98 Actual Days / 360 Year-Days 66,458 Monthly 0
45 09-0001042 04/08/98 05/10/98 Actual Days / 360 Year-Days 64,805 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
46 O0311 04/06/98 06/01/98 Actual Days / 360 Year-Days 64,485 Monthly 5
47 O0320 05/26/98 07/01/98 Actual Days / 360 Year-Days 66,973 Monthly 4
48 M0171 04/28/98 06/01/98 Actual Days / 360 Year-Days 65,597 Monthly 5
49 R0280 12/15/97 02/01/98 Actual Days / 360 Year-Days 72,148 Monthly 5
50 400029282 06/19/98 08/01/98 Actual Days / 360 Year-Days 60,211 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
51 M0462 08/05/98 10/01/98 Actual Days / 360 Year-Days 57,036 Monthly 5
52 400030935 08/12/98 10/01/98 Actual Days / 360 Year-Days 59,135 Monthly 5
53 400028228 08/29/97 10/01/97 30 Month-Days / 360 Year-Days 66,145 Monthly 10
54 L0149 07/01/98 08/01/98 Actual Days / 360 Year-Days 58,652 Monthly 5
55 O0265 01/27/98 03/01/98 Actual Days / 360 Year-Days 49,738 Monthly 4
- -----------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 05/08/98 06/10/98 Actual Days / 360 Year-Days 55,437 Monthly 0
57 400028277 11/13/97 01/01/98 30 Month-Days / 360 Year-Days 54,051 Monthly 10
58 09-0001135 08/19/98 10/01/98 Actual Days / 360 Year-Days 55,720 Monthly 0
59 400030880 07/31/98 09/01/98 Actual Days / 360 Year-Days 57,565 Monthly 10
59a 400030880A
- -----------------------------------------------------------------------------------------------------------------------------------
59b 400030880B
59c 400030880C
59d 400030880D
59e 400030880E
59f 400030880F
- -----------------------------------------------------------------------------------------------------------------------------------
60 O0090 05/19/98 07/01/98 Actual Days / 360 Year-Days 52,147 Monthly 5
61 09-0001066 05/29/98 07/01/98 Actual Days / 360 Year-Days 52,827 Monthly 7
62 09-0001041 04/06/98 06/01/98 Actual Days / 360 Year-Days 45,928 Monthly 0
62a 09-0001041A
62b 09-0001041B
- -----------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C
63 O0148 02/17/98 04/01/98 Actual Days / 365 Year-Days 45,337 Monthly 5
64 09-0001167 09/14/98 11/01/98 Actual Days / 360 Year-Days 47,651 Monthly 5
65 R0297 05/04/98 07/01/98 Actual Days / 360 Year-Days 44,960 Monthly 0
66 O0244 02/27/98 04/01/98 Actual Days / 360 Year-Days 44,540 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
67 400029255 05/29/98 07/01/98 Actual Days / 360 Year-Days 45,011 Monthly 10
68 400029205 04/03/98 06/01/98 30 Month-Days / 360 Year-Days 41,117 Monthly 10
69 09-0001136 08/19/98 10/01/98 Actual Days / 360 Year-Days 43,105 Monthly 0
70 400029172 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 39,361 Monthly 10
71 R0134 12/23/97 02/01/98 Actual Days / 360 Year-Days 44,349 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 08/17/98 10/01/98 Actual Days / 360 Year-Days 39,401 Monthly 5
72a 09-0001133A
72b 09-0001133B
72c 09-0001133C
73 09-0001082 06/16/98 08/01/98 Actual Days / 360 Year-Days 36,218 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
74 400030867 07/24/98 09/01/98 Actual Days / 360 Year-Days 39,397 Monthly 5
75 400030966 08/14/98 10/01/98 Actual Days / 360 Year-Days 42,001 Monthly 5
76 09-0001065 05/08/98 07/01/98 Actual Days / 360 Year-Days 39,906 Monthly 0
77 400029184 02/06/98 04/01/98 Actual Days / 360 Year-Days 42,974 Monthly 10
78 400029251 06/30/98 08/01/98 Actual Days / 360 Year-Days 35,414 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
79 400030922 08/25/98 10/01/98 Actual Days / 360 Year-Days 35,287 Monthly 5
80 R0311 05/22/98 07/01/98 Actual Days / 360 Year-Days 36,314 Monthly 0
81 400029139 02/23/98 04/01/98 30 Month-Days / 360 Year-Days 35,936 Monthly 10
82 R0514 06/29/98 08/01/98 Actual Days / 360 Year-Days 34,408 Monthly 5
83 09-0001044 04/15/98 06/01/98 Actual Days / 360 Year-Days 36,514 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
84 400029161 04/23/98 06/01/98 30 Month-Days / 360 Year-Days 33,737 Monthly 10
85 400029171 02/27/98 04/01/98 Actual Days / 360 Year-Days 33,501 Monthly 10
86 R0559 07/15/98 09/01/98 Actual Days / 360 Year-Days 38,598 Monthly 0
87 400029274 06/16/98 08/01/98 Actual Days / 360 Year-Days 32,598 Monthly 5
88 R0463 09/15/98 11/01/98 Actual Days / 360 Year-Days 32,561 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
89 400029257 05/28/98 07/01/98 Actual Days / 360 Year-Days 32,387 Monthly 5
90 400029169 01/28/98 03/01/98 Actual Days / 360 Year-Days 31,730 Monthly 10
91 400031048 07/31/98 09/01/98 30 Month-Days / 360 Year-Days 30,790 Monthly 5
92 400029237 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 33,338 Monthly 10
93 400029202 03/04/98 05/01/98 Actual Days / 360 Year-Days 30,829 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
94 O0359 08/18/98 10/01/98 Actual Days / 360 Year-Days 30,241 Monthly 5
95 M0330 07/20/98 09/01/98 Actual Days / 360 Year-Days 29,939 Monthly 0
95a M0330A
95b M0330B
96 R0464 06/25/98 08/01/98 Actual Days / 360 Year-Days 31,341 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 05/28/98 07/01/98 Actual Days / 360 Year-Days 30,424 Monthly 0
98 400029262 06/30/98 08/01/98 Actual Days / 360 Year-Days 33,079 Monthly 10
99 400029134 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 30,515 Monthly 10
100 400029200 04/30/98 06/01/98 Actual Days / 360 Year-Days 41,486 Monthly 10
101 R0533 07/29/98 09/01/98 Actual Days / 360 Year-Days 34,910 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 08/19/98 10/01/98 Actual Days / 360 Year-Days 32,234 Monthly 0
103 400029214 04/27/98 06/01/98 Actual Days / 360 Year-Days 36,122 Monthly 0
103a 400029214A
103b 400029214B
103c 400029214C
- -----------------------------------------------------------------------------------------------------------------------------------
103d 400029214D
103e 400029214E
103f 400029214F
103g 400029214G
103h 400029214H
- -----------------------------------------------------------------------------------------------------------------------------------
103i 400029214I
104 MH0020 09/09/98 11/01/98 Actual Days / 360 Year-Days 29,344 Monthly 4
105 400029166 02/10/98 04/01/98 Actual Days / 360 Year-Days 31,751 Monthly 10
106 400029173 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 31,553 Monthly 10
106a 400029173A
- -----------------------------------------------------------------------------------------------------------------------------------
106b 400029173B
106c 400029173C
106d 400029173D
106e 400029173E
107 09-0001110 08/07/98 10/01/98 Actual Days / 360 Year-Days 30,874 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
108 R0315 07/10/98 09/01/98 Actual Days / 360 Year-Days 27,999 Monthly 0
109 400029147 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 28,891 Monthly 10
110 09-0001160 09/04/98 11/01/98 Actual Days / 360 Year-Days 25,866 Monthly 5
111 400030896 08/11/98 10/01/98 Actual Days / 360 Year-Days 28,552 Monthly 5
112 400029299 06/30/98 08/01/98 Actual Days / 360 Year-Days 26,184 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
113 400029232 05/15/98 07/01/98 Actual Days / 360 Year-Days 26,935 Monthly 10
114 M0415 05/29/98 07/01/98 Actual Days / 360 Year-Days 27,176 Monthly 5
115 400029306 07/02/98 09/01/98 Actual Days / 360 Year-Days 25,804 Monthly 10
116 400029252 05/08/98 07/01/98 30 Month-Days / 360 Year-Days 26,966 Monthly 5
117 400030886 07/31/98 09/01/98 Actual Days / 360 Year-Days 29,067 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
117a 400030886A
117b 400030886B
118 400029217 05/11/98 07/01/98 Actual Days / 360 Year-Days 30,589 Monthly 10
119 M0429 07/27/98 09/01/98 Actual Days / 360 Year-Days 30,061 Monthly 5
120 400030875 07/21/98 09/01/98 Actual Days / 360 Year-Days 27,834 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
121 400029121 02/06/98 04/01/98 Actual Days / 360 Year-Days 26,433 Monthly 10
122 09-0001111 08/11/98 10/01/98 Actual Days / 360 Year-Days 25,140 Monthly 0
123 R0458 08/14/98 10/01/98 Actual Days / 360 Year-Days 29,199 Monthly 5
124 400030876 07/17/98 09/01/98 Actual Days / 360 Year-Days 27,439 Monthly 10
125 400029129 01/07/98 03/01/98 30 Month-Days / 360 Year-Days 24,542 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 07/10/98 09/01/98 Actual Days / 360 Year-Days 29,922 Monthly 0
127 09-0001140 08/21/98 10/01/98 Actual Days / 360 Year-Days 29,861 Monthly 0
128 400028305 02/06/98 04/01/98 30 Month-Days / 360 Year-Days 24,308 Monthly 10
129 O0422 09/04/98 11/01/98 Actual Days / 360 Year-Days 24,193 Monthly 0
129a O0422A
- -----------------------------------------------------------------------------------------------------------------------------------
129b O0422B
130 R0304 03/16/98 05/01/98 Actual Days / 360 Year-Days 24,315 Monthly 4
131 400029137 02/25/98 04/01/98 30 Month-Days / 360 Year-Days 25,398 Monthly 10
132 400030967 08/14/98 10/01/98 Actual Days / 360 Year-Days 27,223 Monthly 5
133 400029178 03/10/98 05/01/98 30 Month-Days / 360 Year-Days 23,568 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
134 400028304 12/12/97 02/01/98 30 Month-Days / 360 Year-Days 24,761 Monthly 10
135 400029164 02/27/98 04/01/98 Actual Days / 360 Year-Days 26,621 Monthly 5
136 400028210 05/20/97 07/01/97 30 Month-Days / 360 Year-Days 29,177 Monthly 10
137 400029181 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 24,771 Monthly 10
138 400029234 05/08/98 07/01/98 Actual Days / 360 Year-Days 24,334 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 06/30/98 08/01/98 Actual Days / 360 Year-Days 22,844 Monthly 0
140 09-0001053 04/30/98 07/01/98 Actual Days / 360 Year-Days 23,723 Monthly 5
141 09-0001064 05/29/98 07/01/98 Actual Days / 360 Year-Days 28,538 Monthly 0
142 O0259 02/02/98 04/01/98 Actual Days / 360 Year-Days 22,841 Monthly 5
143 R0743 08/31/98 10/01/98 Actual Days / 360 Year-Days 24,790 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
144 400027540 07/21/97 09/01/97 30 Month-Days / 360 Year-Days 25,120 Monthly 10
145 09-0001130 08/17/98 10/01/98 Actual Days / 360 Year-Days 22,883 Monthly 5
146 400029116 12/10/97 02/01/98 Actual Days / Actual Year-Days 26,182 Monthly 10
147 400029267 07/10/98 09/01/98 30 Month-Days / 360 Year-Days 28,548 Monthly 10
148 400029190 03/31/98 05/01/98 Actual Days / 360 Year-Days 24,417 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
149 400029250 05/21/98 07/01/98 Actual Days / 360 Year-Days 23,268 Monthly 10
149a 400029250A
149b 400029250B
150 L0237 08/12/98 10/01/98 Actual Days / 360 Year-Days 22,622 Monthly 0
151 09-0001114 07/22/98 09/01/98 Actual Days / 360 Year-Days 22,768 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
152 400029154 02/05/98 04/01/98 30 Month-Days / 360 Year-Days 21,448 Monthly 10
153 M0263 03/25/98 05/01/98 Actual Days / 360 Year-Days 21,042 Monthly 5
154 400029143 03/18/98 05/01/98 Actual Days / 360 Year-Days 20,367 Monthly 10
155 400029189 03/24/98 05/01/98 Actual Days / 360 Year-Days 20,268 Monthly 10
156 09-0001163 09/09/98 11/01/98 Actual Days / 360 Year-Days 18,296 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
157 400031128 08/20/98 10/01/98 Actual Days / 360 Year-Days 19,538 Monthly 10
158 400029213 05/01/98 07/01/98 Actual Days / 360 Year-Days 20,976 Monthly 10
159 09-0001045 04/16/98 06/01/98 Actual Days / 360 Year-Days 20,486 Monthly 0
160 400029197 05/20/98 07/01/98 Actual Days / 360 Year-Days 21,936 Monthly 5
161 09-0001098 07/01/98 08/01/98 Actual Days / 360 Year-Days 24,654 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
162 L0171 03/11/98 05/01/98 Actual Days / 360 Year-Days 23,393 Monthly 5
163 09-0001107 07/13/98 09/01/98 Actual Days / 360 Year-Days 21,509 Monthly 0
164 09-0001056 05/06/98 07/01/98 Actual Days / 360 Year-Days 20,728 Monthly 0
165 M0487 08/24/98 10/01/98 Actual Days / 360 Year-Days 22,974 Monthly 5
166 400029149 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 20,064 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
167 O0393 05/22/98 07/01/98 Actual Days / 360 Year-Days 19,842 Monthly 5
168 400029158 02/05/98 04/01/98 Actual Days / 360 Year-Days 21,303 Monthly 10
169 09-0001062 05/28/98 07/01/98 Actual Days / 360 Year-Days 23,108 Monthly 5
170 400030890 08/07/98 10/01/98 Actual Days / 360 Year-Days 20,601 Monthly 5
171 400029300 08/11/98 10/01/98 Actual Days / 360 Year-Days 20,059 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
172 400027560 10/31/97 12/01/97 30 Month-Days / 360 Year-Days 23,893 Monthly 10
173 400029186 04/09/98 06/01/98 Actual Days / 360 Year-Days 20,236 Monthly 10
173a 400029186A
173b 400029186B
173c 400029186C
- -----------------------------------------------------------------------------------------------------------------------------------
173d 400029186D
173e 400029186E
173f 400029186F
174 M0537 08/27/98 10/01/98 Actual Days / 360 Year-Days 17,787 Monthly 5
175 09-0001139 08/20/98 10/01/98 Actual Days / 360 Year-Days 22,217 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
176 400029163 03/02/98 05/01/98 Actual Days / 360 Year-Days 18,731 Monthly 10
177 400029212 03/06/98 05/01/98 30 Month-Days / 360 Year-Days 20,678 Monthly 10
178 400030868 07/28/98 09/01/98 Actual Days / 360 Year-Days 17,769 Monthly 5
179 400029209 05/06/98 07/01/98 Actual Days / 360 Year-Days 19,274 Monthly 5
180 09-0001113 07/23/98 09/01/98 Actual Days / 360 Year-Days 21,619 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
181 400029236 05/27/98 07/01/98 30 Month-Days / 360 Year-Days 19,256 Monthly 10
182 400029119 02/26/98 04/01/98 30 Month-Days / 360 Year-Days 17,508 Monthly 10
183 09-0001106 07/09/98 09/01/98 Actual Days / 360 Year-Days 19,250 Monthly 0
184 400030915 08/03/98 10/01/98 Actual Days / 360 Year-Days 17,173 Monthly 10
185 09-0001067 06/02/98 08/01/98 Actual Days / 360 Year-Days 20,623 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
186 400029157 01/23/98 03/01/98 Actual Days / 360 Year-Days 19,229 Monthly 0
186a 400029157A
186b 400029157B
186c 400029157C
187 R0597 08/17/98 10/01/98 Actual Days / 360 Year-Days 16,949 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 08/24/98 10/01/98 Actual Days / 360 Year-Days 19,732 Monthly 0
189 400029187 04/09/98 06/01/98 Actual Days / 360 Year-Days 17,845 Monthly 10
189a 400029187A
189b 400029187B
189c 400029187C
- -----------------------------------------------------------------------------------------------------------------------------------
189d 400029187D
189e 400029187E
190 M0443 08/27/98 10/01/98 Actual Days / 360 Year-Days 15,694 Monthly 7
191 400029199 04/09/98 06/01/98 30 Month-Days / 360 Year-Days 19,525 Monthly 5
191a 400029199A
- -----------------------------------------------------------------------------------------------------------------------------------
191b 400029199B
192 400029145 01/12/98 03/01/98 30 Month-Days / 360 Year-Days 17,208 Monthly 10
193 400029192 03/16/98 05/01/98 Actual Days / 360 Year-Days 16,125 Monthly 15
193a 400029192A
193b 400029192B
- -----------------------------------------------------------------------------------------------------------------------------------
194 400029201 04/14/98 06/01/98 Actual Days / 360 Year-Days 17,774 Monthly 10
195 09-0001038 04/02/98 06/01/98 Actual Days / 360 Year-Days 16,147 Monthly 0
196 400030866 08/26/98 10/01/98 Actual Days / 360 Year-Days 16,506 Monthly 10
197 09-0001087 07/24/98 09/01/98 Actual Days / 360 Year-Days 15,612 Monthly 5
198 400029238 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 16,595 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
199 400029183 03/20/98 05/01/98 Actual Days / 360 Year-Days 15,395 Monthly 5
200 400029194 04/03/98 06/01/98 Actual Days / 360 Year-Days 16,462 Monthly 10
201 400029160 03/17/98 05/01/98 30 Month-Days / 360 Year-Days 16,669 Monthly 10
202 09-0001084 06/30/98 08/01/98 Actual Days / 360 Year-Days 15,721 Monthly 5
203 400029204 03/26/98 05/01/98 Actual Days / 360 Year-Days 15,933 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
204 400029148 02/26/98 04/01/98 30 Month-Days / 360 Year-Days 15,136 Monthly 10
205 400029216 06/08/98 08/01/98 Actual Days / 360 Year-Days 15,973 Monthly 10
205a 400029216A
205b 400029216B
205c 400029216C
- -----------------------------------------------------------------------------------------------------------------------------------
205d 400029216D
206 400029208 03/19/98 05/01/98 Actual Days / 360 Year-Days 14,563 Monthly 10
207 400029162 02/06/98 04/01/98 Actual Days / 360 Year-Days 15,323 Monthly 10
208 R0254 03/05/98 05/01/98 Actual Days / 360 Year-Days 14,823 Monthly 0
209 400028269 03/13/98 05/01/98 Actual Days / 360 Year-Days 14,579 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
210 400029309 08/12/98 10/01/98 Actual Days / 360 Year-Days 16,839 Monthly 5
211 L0200 05/04/98 07/01/98 Actual Days / 360 Year-Days 16,394 Monthly 5
212 400029310 08/04/98 10/01/98 Actual Days / 360 Year-Days 15,125 Monthly 5
213 09-0001134 08/19/98 10/01/98 Actual Days / 360 Year-Days 17,070 Monthly 5
214 L0300 07/24/98 09/01/98 Actual Days / 360 Year-Days 16,338 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
215 400029156 04/06/98 06/01/98 30 Month-Days / 360 Year-Days 14,311 Monthly 10
216 400029215 04/27/98 06/01/98 Actual Days / 360 Year-Days 17,240 Monthly 0
216a 400029215A
216b 400029215B
216c 400029215C
- -----------------------------------------------------------------------------------------------------------------------------------
217 400029211 04/28/98 06/01/98 Actual Days / 360 Year-Days 15,752 Monthly 9
218 L0184 06/17/98 08/01/98 Actual Days / 360 Year-Days 15,619 Monthly 5
219 09-0001051 06/09/98 08/01/98 Actual Days / 360 Year-Days 13,958 Monthly 0
220 400030893 08/14/98 10/01/98 Actual Days / 360 Year-Days 13,508 Monthly 10
221 09-0001088 08/04/98 10/01/98 Actual Days / 360 Year-Days 16,532 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 08/21/98 10/01/98 Actual Days / 360 Year-Days 16,420 Monthly 0
223 L0202 05/21/98 07/01/98 Actual Days / 360 Year-Days 15,304 Monthly 5
224 400029294 06/16/98 08/01/98 Actual Days / 360 Year-Days 15,650 Monthly 5
225 400029196 05/13/98 07/01/98 Actual Days / 360 Year-Days 14,654 Monthly 10
226 400028286 01/08/98 03/01/98 Actual Days / 360 Year-Days 15,783 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
227 400029191 05/01/98 07/01/98 Actual Days / 360 Year-Days 13,880 Monthly 10
228 400029167 01/20/98 03/01/98 30 Month-Days / 360 Year-Days 18,461 Monthly 5
229 09-0001132 08/17/98 10/01/98 Actual Days / 360 Year-Days 14,537 Monthly 0
230 MU0036 09/04/98 11/01/98 Actual Days / 360 Year-Days 13,814 Monthly 5
231 09-0001112 07/16/98 09/01/98 Actual Days / 360 Year-Days 13,176 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
232 R0807 08/24/98 10/01/98 30 Month-Days / 360 Year-Days 14,365 Monthly 5
233 400029258 06/05/98 08/01/98 30 Month-Days / 360 Year-Days 12,758 Monthly 5
234 09-0001081 06/16/98 08/01/98 Actual Days / 360 Year-Days 15,078 Monthly 0
235 09-0001061 05/28/98 07/01/98 30 Month-Days / 360 Year-Days 14,507 Monthly 0
236 R0480 08/03/98 10/01/98 Actual Days / 360 Year-Days 12,623 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
237 I0099 08/21/98 10/01/98 Actual Days / 360 Year-Days 12,182 Monthly 5
238 400031123 07/31/98 09/01/98 Actual Days / 360 Year-Days 11,891 Monthly 5
239 09-0001070 06/04/98 08/01/98 Actual Days / 360 Year-Days 12,194 Monthly 0
240 09-0001074 06/09/98 08/01/98 Actual Days / 360 Year-Days 15,007 Monthly 0
241 09-0001039 04/08/98 06/01/98 30 Month-Days / 360 Year-Days 14,175 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 06/30/98 08/01/98 Actual Days / 360 Year-Days 14,050 Monthly 5
243 400029185 03/12/98 05/01/98 Actual Days / 360 Year-Days 11,875 Monthly 5
244 400030925 08/28/98 10/01/98 Actual Days / 360 Year-Days 12,268 Monthly 5
245 M0264 03/25/98 05/01/98 Actual Days / 360 Year-Days 11,879 Monthly 5
246 09-0001083 06/18/98 08/01/98 Actual Days / 360 Year-Days 12,908 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
247 400029233 05/06/98 07/01/98 Actual Days / 360 Year-Days 12,211 Monthly 5
248 09-0001071 06/08/98 08/01/98 Actual Days / 360 Year-Days 14,194 Monthly 0
249 09-0001079 06/15/98 08/01/98 Actual Days / 360 Year-Days 14,035 Monthly 0
250 09-0001072 06/17/98 08/01/98 Actual Days / 360 Year-Days 11,552 Monthly 5
251 09-0001119 07/24/98 09/01/98 Actual Days / 360 Year-Days 13,911 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
252 400029188 03/04/98 05/01/98 Actual Days / 360 Year-Days 13,671 Monthly 5
253 09-0001080 06/15/98 08/01/98 Actual Days / 360 Year-Days 13,570 Monthly 0
254 400029140 02/06/98 04/01/98 30 Month-Days / 360 Year-Days 12,129 Monthly 10
255 400029248 06/01/98 07/01/98 30 Month-Days / 360 Year-Days 14,457 Monthly 10
256 R0633 07/08/98 09/01/98 Actual Days / 360 Year-Days 12,687 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
257 400029206 05/05/98 07/01/98 30 Month-Days / 360 Year-Days 12,933 Monthly 10
258 400029311 07/02/98 09/01/98 Actual Days / 360 Year-Days 11,719 Monthly 5
259 400029174 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 10,991 Monthly 10
260 09-0001059 05/18/98 07/01/98 Actual Days / 360 Year-Days 12,212 Monthly 0
261 09-0001034 03/13/98 05/01/98 Actual Days / 360 Year-Days 10,709 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 12,332 Monthly 0
263 09-0001085 07/28/98 09/01/98 Actual Days / 360 Year-Days 10,902 Monthly 0
264 09-0001054 04/30/98 07/01/98 Actual Days / 360 Year-Days 12,897 Monthly 0
265 400029168 02/13/98 04/01/98 Actual Days / 360 Year-Days 11,034 Monthly 10
266 09-0001137 08/19/98 10/01/98 Actual Days / 360 Year-Days 11,284 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 06/30/98 08/01/98 Actual Days / 360 Year-Days 10,253 Monthly 0
268 400029182 04/02/98 06/01/98 30 Month-Days / 360 Year-Days 10,202 Monthly 10
269 07-0000000 06/17/98 08/01/98 Actual Days / 360 Year-Days 13,072 Monthly 0
270 400029228 04/24/98 06/01/98 Actual Days / 360 Year-Days 11,026 Monthly 10
271 400029155 02/12/98 04/01/98 30 Month-Days / 360 Year-Days 11,468 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 04/09/98 06/01/98 30 Month-Days / 360 Year-Days 13,479 Monthly 5
273 400029150 12/22/97 02/01/98 30 Month-Days / 360 Year-Days 12,047 Monthly 10
274 R0497 08/24/98 10/01/98 Actual Days / 360 Year-Days 10,132 Monthly 0
275 400029290 06/30/98 08/01/98 Actual Days / 360 Year-Days 10,929 Monthly 10
276 R0412 05/04/98 07/01/98 Actual Days / 360 Year-Days 11,025 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 06/19/98 08/01/98 Actual Days / 360 Year-Days 12,295 Monthly 0
278 09-0001118 07/24/98 09/01/98 Actual Days / 360 Year-Days 12,033 Monthly 0
279 09-0001097 06/30/98 08/01/98 Actual Days / 360 Year-Days 12,044 Monthly 0
280 400029180 02/18/98 04/01/98 30 Month-Days / 360 Year-Days 10,320 Monthly 10
281 400030934 08/25/98 10/01/98 Actual Days / 360 Year-Days 10,020 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 07/09/98 09/01/98 Actual Days / 360 Year-Days 9,569 Monthly 5
283 09-0001147 08/31/98 10/01/98 Actual Days / 360 Year-Days 12,767 Monthly 0
284 400030871 07/13/98 09/01/98 30 Month-Days / 360 Year-Days 11,210 Monthly 5
285 09-0001073 06/17/98 08/01/98 Actual Days / 360 Year-Days 9,920 Monthly 5
286 400029297 06/19/98 08/01/98 30 Month-Days / 360 Year-Days 10,033 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
287 O0348 07/30/98 09/01/98 Actual Days / 360 Year-Days 9,467 Monthly 0
288 09-0001105 07/15/98 09/01/98 Actual Days / 360 Year-Days 10,162 Monthly 5
289 O0253 06/09/98 08/01/98 Actual Days / 360 Year-Days 10,312 Monthly 5
290 09-0001060 05/26/98 07/01/98 Actual Days / 360 Year-Days 11,351 Monthly 0
291 M0262 03/26/98 05/01/98 Actual Days / 360 Year-Days 8,987 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
292 M0220 03/31/98 05/01/98 Actual Days / 360 Year-Days 9,337 Monthly 4
293 M0290 03/26/98 05/01/98 Actual Days / 360 Year-Days 8,967 Monthly 5
294 I0074 07/30/98 09/01/98 Actual Days / 360 Year-Days 9,157 Monthly 5
295 09-0001141 08/21/98 10/01/98 Actual Days / 360 Year-Days 10,583 Monthly 0
296 400029235 05/15/98 07/01/98 Actual Days / 360 Year-Days 9,124 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 07/27/98 09/01/98 Actual Days / 360 Year-Days 9,868 Monthly 0
298 09-0001057 06/22/98 08/01/98 30 Month-Days / 360 Year-Days 9,193 Monthly 5
299 400029126 02/13/98 04/01/98 30 Month-Days / 360 Year-Days 8,844 Monthly 10
300 09-0001058 05/15/98 07/01/98 Actual Days / 360 Year-Days 13,102 Monthly 0
301 09-0001094 06/22/98 08/01/98 Actual Days / 360 Year-Days 10,608 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
302 O0541 08/19/98 10/01/98 Actual Days / 360 Year-Days 8,461 Monthly 0
303 R0887 09/04/98 11/01/98 Actual Days / 360 Year-Days 8,195 Monthly 5
304 400029253 07/23/98 09/01/98 Actual Days / 360 Year-Days 7,601 Monthly 10
305 400030869 07/28/98 09/01/98 Actual Days / 360 Year-Days 7,348 Monthly 5
306 400029304 07/15/98 09/01/98 Actual Days / 360 Year-Days 7,930 Monthly 10
- -----------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 06/09/98 08/01/98 Actual Days / 360 Year-Days 7,323 Monthly 5
308 400029210 05/18/98 07/01/98 Actual Days / 360 Year-Days 7,356 Monthly 5
309 M0288 03/25/98 05/01/98 Actual Days / 360 Year-Days 7,127 Monthly 0
310 M0289 03/25/98 05/01/98 Actual Days / 360 Year-Days 6,788 Monthly 5
311 09-0001069 06/02/98 08/01/98 Actual Days / 360 Year-Days 8,300 Monthly 0
- -----------------------------------------------------------------------------------------------------------------------------------
312 M0364 08/07/98 10/01/98 Actual Days / 360 Year-Days 6,614 Monthly 0
313 400030870 07/28/98 09/01/98 Actual Days / 360 Year-Days 6,042 Monthly 5
314 400029291 05/22/98 07/01/98 30 Month-Days / 360 Year-Days 6,221 Monthly 10
315 09-0001077 06/10/98 08/01/98 Actual Days / 360 Year-Days 6,501 Monthly 5
316 R0634 07/08/98 09/01/98 Actual Days / 360 Year-Days 6,246 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 4,604 Monthly 0
318 M0172 04/08/98 06/01/98 Actual Days / 360 Year-Days 4,635 Monthly 5
319 MU0114 09/04/98 11/01/98 Actual Days / 360 Year-Days 4,402 Monthly 5
320 09-0001036 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 3,903 Monthly 0
321 R0886 09/04/98 11/01/98 Actual Days / 360 Year-Days 4,008 Monthly 5
- -----------------------------------------------------------------------------------------------------------------------------------
322 400029246 06/10/98 08/05/98 Actual Days / 360 Year-Days 3,703 Monthly 5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ORIGINAL TERM ORIGINAL REMAINING TERM REMAINING AMORTIZATION
CONTROL LOAN TO MATURITY / ARD AMORTIZATION TO MATURITY / ARD TERM TO MATURITY SEASONING
NUMBER NUMBER (MONTHS) TERM (MONTHS) (MONTHS) (MONTHS) (MONTHS)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 ACS 120 300 115 295 5
1a ACS-A
1b ACS-B
1c ACS-C
1d ACS-D
- ------------------------------------------------------------------------------------------------------------------------------
1e ACS-E
1f ACS-F
1g ACS-G
1h ACS-H
1i ACS-I
- ------------------------------------------------------------------------------------------------------------------------------
1j ACS-J
1k ACS-K
1l ACS-L
1m ACS-M
1n ACS-N
- ------------------------------------------------------------------------------------------------------------------------------
1o ACS-O
1p ACS-P
1q ACS-Q
1r ACS-R
1s ACS-S
- ------------------------------------------------------------------------------------------------------------------------------
1t ACS-T
1u ACS-U
1v ACS-V
1w ACS-W
1x ACS-X
- ------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y
1z ACS-Z
1aa ACS-AA
1bb ACS-BB
1cc ACS-CC
- ------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 120 320 111 311 9
2a AIM-1A
2b AIM-1B
2c AIM-1C
2d AIM-1D
- ------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E
2f AIM-1F
2g AIM-1G
2h AIM-1H
2i AIM-1I
- ------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J
2k AIM-1K
2l AIM-1L
2m AIM-1M
2n AIM-1N
- ------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O
3 09-1001006 120 360 117 357 3
3a 09-1001006A
3b 09-1001006B
3c 09-1001006C
- ------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D
3e 09-1001006E
3f 09-1001006F
3g 09-1001006G
3h 09-1001006H
- ------------------------------------------------------------------------------------------------------------------------------
4 SkyII 122 360 118 356 4
4a SkyIIA
4b SkyIIB
5 ANADC 120 300 120 0
6 09-0001076 120 360 116 356 4
- ------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 120 360 119 359 1
400029224 120 360 116 356 4
8 400029224A
9 400029218B
10 400029222C
- ------------------------------------------------------------------------------------------------------------------------------
11 400029227D
12 400029219E
13 09-0001116 120 300 118 298 2
400029220 120 360 116 356 4
14 400029220A
- ------------------------------------------------------------------------------------------------------------------------------
15 400029221B
16 400029226C
17 400029223D
18 400029225E
19 400030965 120 300 119 299 1
- ------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 120 360 120 360 0
21 09-0001099 120 300 117 297 3
22 SP007 119 360 113 354 6
23 400029141 240 240 231 231 9
24 400028225 84 360 69 345 15
- ------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 120 360 115 355 5
26 09-0001117 120 300 119 299 1
26a 09-0001117A
26b 09-0001117B
26c 09-0001117C
- ------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D
27 L0137 120 NAP 112 8
28 400030913 120 360 119 359 1
29 09-0001122 120 360 118 358 2
30 09-0001102 120 300 118 298 2
- ------------------------------------------------------------------------------------------------------------------------------
31 400030964 120 300 119 299 1
32 400029308 120 300 117 297 3
33 400029207 120 360 116 356 4
34 09-0001115 120 300 118 298 2
35 R0421 180 360 175 355 5
- ------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 120 360 115 355 5
36a 09-0001040A
36b 09-0001040B
36c 09-0001040C
37 M0514 120 360 119 359 1
- ------------------------------------------------------------------------------------------------------------------------------
38 400030914 180 360 179 359 1
39 O0179 84 360 81 357 3
40 400028275 120 360 111 351 9
40a 400028275A
40b 400028275B
- ------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 120 360 115 355 5
42 09-0001100 120 300 117 297 3
43 09-0001101 120 300 118 298 2
44 09-0001123 120 360 118 358 2
45 09-0001042 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
46 O0311 120 360 115 355 5
47 O0320 120 360 116 356 4
48 M0171 120 360 115 355 5
49 R0280 260 260 251 251 9
50 400029282 120 360 117 357 3
- ------------------------------------------------------------------------------------------------------------------------------
51 M0462 120 360 119 359 1
52 400030935 120 360 119 359 1
53 400028228 120 300 107 287 13
54 L0149 120 300 117 297 3
55 O0265 120 NAP 112 8
- ------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 121 360 116 355 5
57 400028277 120 360 110 350 10
58 09-0001135 120 300 119 299 1
59 400030880 120 300 118 298 2
59a 400030880A
- ------------------------------------------------------------------------------------------------------------------------------
59b 400030880B
59c 400030880C
59d 400030880D
59e 400030880E
59f 400030880F
- ------------------------------------------------------------------------------------------------------------------------------
60 O0090 120 360 116 356 4
61 09-0001066 120 300 116 296 4
62 09-0001041 120 360 115 355 5
62a 09-0001041A
62b 09-0001041B
- ------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C
63 O0148 120 360 113 353 7
64 09-0001167 240 240 240 240 0
65 R0297 120 360 116 356 4
66 O0244 120 360 113 353 7
- ------------------------------------------------------------------------------------------------------------------------------
67 400029255 120 360 116 356 4
68 400029205 120 360 115 355 5
69 09-0001136 120 300 119 299 1
70 400029172 120 360 115 355 5
71 R0134 240 240 231 231 9
- ------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 120 300 119 299 1
72a 09-0001133A
72b 09-0001133B
72c 09-0001133C
73 09-0001082 120 360 117 357 3
- ------------------------------------------------------------------------------------------------------------------------------
74 400030867 120 300 118 298 2
75 400030966 120 300 119 299 1
76 09-0001065 120 300 116 296 4
77 400029184 120 300 113 293 7
78 400029251 120 360 117 357 3
- ------------------------------------------------------------------------------------------------------------------------------
79 400030922 120 360 119 359 1
80 R0311 120 360 116 356 4
81 400029139 120 324 113 317 7
82 R0514 120 360 117 357 3
83 09-0001044 120 300 115 295 5
- ------------------------------------------------------------------------------------------------------------------------------
84 400029161 120 360 115 355 5
85 400029171 120 360 113 353 7
86 R0559 248 247 246 245 2
87 400029274 120 360 117 357 3
88 R0463 120 360 120 360 0
- ------------------------------------------------------------------------------------------------------------------------------
89 400029257 120 360 116 356 4
90 400029169 120 360 112 352 8
91 400031048 120 360 118 358 2
92 400029237 120 300 117 297 3
93 400029202 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
94 O0359 120 360 119 359 1
95 M0330 120 360 118 358 2
95a M0330A
95b M0330B
96 R0464 120 360 117 357 3
- ------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 120 360 116 356 4
98 400029262 120 300 117 297 3
99 400029134 120 360 113 353 7
100 400029200 120 180 115 175 5
101 R0533 240 240 238 238 2
- ------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 120 300 119 299 1
103 400029214 120 240 115 235 5
103a 400029214A
103b 400029214B
103c 400029214C
- ------------------------------------------------------------------------------------------------------------------------------
103d 400029214D
103e 400029214E
103f 400029214F
103g 400029214G
103h 400029214H
- ------------------------------------------------------------------------------------------------------------------------------
103i 400029214I
104 MH0020 120 300 120 300 0
105 400029166 120 300 113 293 7
106 400029173 120 300 115 295 5
106a 400029173A
- ------------------------------------------------------------------------------------------------------------------------------
106b 400029173B
106c 400029173C
106d 400029173D
106e 400029173E
107 09-0001110 120 300 119 299 1
- ------------------------------------------------------------------------------------------------------------------------------
108 R0315 120 360 118 358 2
109 400029147 120 360 113 353 7
110 09-0001160 120 360 120 360 0
111 400030896 120 300 119 299 1
112 400029299 120 360 117 357 3
- ------------------------------------------------------------------------------------------------------------------------------
113 400029232 120 360 116 356 4
114 M0415 120 360 116 356 4
115 400029306 120 360 118 358 2
116 400029252 120 300 116 296 4
117 400030886 120 300 118 298 2
- ------------------------------------------------------------------------------------------------------------------------------
117a 400030886A 0
117b 400030886B 0
118 400029217 240 240 236 236 4
119 M0429 240 240 238 238 2
120 400030875 120 300 118 298 2
- ------------------------------------------------------------------------------------------------------------------------------
121 400029121 120 360 113 353 7
122 09-0001111 120 360 119 359 1
123 R0458 240 240 239 239 1
124 400030876 120 300 118 298 2
125 400029129 120 360 112 352 8
- ------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 240 240 238 238 2
127 09-0001140 240 240 239 239 1
128 400028305 120 360 113 353 7
129 O0422 120 360 120 360 0
129a O0422A 0
- ------------------------------------------------------------------------------------------------------------------------------
129b O0422B 0
130 R0304 120 360 114 354 6
131 400029137 120 300 113 293 7
132 400030967 120 300 119 299 1
133 400029178 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
134 400028304 180 360 171 351 9
135 400029164 121 300 114 293 7
136 400028210 180 300 164 284 16
137 400029181 120 300 114 294 6
138 400029234 120 360 116 356 4
- ------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 120 360 117 357 3
140 09-0001053 120 360 116 356 4
141 09-0001064 240 240 236 236 4
142 O0259 120 360 113 353 7
143 R0743 240 240 239 239 1
- ------------------------------------------------------------------------------------------------------------------------------
144 400027540 180 360 166 346 14
145 09-0001130 120 300 119 299 1
146 400029116 240 240 231 231 9
147 400029267 180 180 178 178 2
148 400029190 120 300 114 294 6
- ------------------------------------------------------------------------------------------------------------------------------
149 400029250 120 300 116 296 4
149a 400029250A 0
149b 400029250B 0
150 L0237 120 300 119 299 1
151 09-0001114 120 300 118 298 2
- ------------------------------------------------------------------------------------------------------------------------------
152 400029154 121 360 114 353 7
153 M0263 120 360 114 354 6
154 400029143 84 360 78 354 6
155 400029189 120 360 114 354 6
156 09-0001163 120 360 120 360 0
- ------------------------------------------------------------------------------------------------------------------------------
157 400031128 144 360 143 359 1
158 400029213 120 360 116 356 4
159 09-0001045 120 360 115 355 5
160 400029197 120 300 116 296 4
161 09-0001098 240 240 237 237 3
- ------------------------------------------------------------------------------------------------------------------------------
162 L0171 120 300 114 294 6
163 09-0001107 120 360 118 358 2
164 09-0001056 120 360 116 356 4
165 M0487 240 240 239 239 1
166 400029149 120 360 113 353 7
- ------------------------------------------------------------------------------------------------------------------------------
167 O0393 120 360 116 356 4
168 400029158 120 300 113 293 7
169 09-0001062 240 240 236 236 4
170 400030890 120 300 119 299 1
171 400029300 120 300 119 299 1
- ------------------------------------------------------------------------------------------------------------------------------
172 400027560 240 240 229 229 11
173 400029186 120 360 115 355 5
173a 400029186A
173b 400029186B
173c 400029186C
- ------------------------------------------------------------------------------------------------------------------------------
173d 400029186D
173e 400029186E
173f 400029186F
174 M0537 120 360 119 359 1
175 09-0001139 240 240 239 239 1
- ------------------------------------------------------------------------------------------------------------------------------
176 400029163 84 360 78 354 6
177 400029212 113 293 107 287 6
178 400030868 180 360 178 358 2
179 400029209 120 300 116 296 4
180 09-0001113 240 240 238 238 2
- ------------------------------------------------------------------------------------------------------------------------------
181 400029236 120 288 116 284 4
182 400029119 120 360 113 353 7
183 09-0001106 120 300 118 298 2
184 400030915 120 360 119 359 1
185 09-0001067 240 240 237 237 3
- ------------------------------------------------------------------------------------------------------------------------------
186 400029157 120 300 112 292 8
186a 400029157A
186b 400029157B
186c 400029157C
187 R0597 120 360 119 359 1
- ------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 240 240 239 239 1
189 400029187 120 360 115 355 5
189a 400029187A
189b 400029187B
189c 400029187C
- ------------------------------------------------------------------------------------------------------------------------------
189d 400029187D
189e 400029187E
190 M0443 120 360 119 359 1
191 400029199 120 240 115 235 5
191a 400029199A
- ------------------------------------------------------------------------------------------------------------------------------
191b 400029199B
192 400029145 120 300 112 292 8
193 400029192 120 360 114 354 6
193a 400029192A
193b 400029192B
- ------------------------------------------------------------------------------------------------------------------------------
194 400029201 120 300 115 295 5
195 09-0001038 120 360 115 355 5
196 400030866 120 300 119 299 1
197 09-0001087 120 360 118 358 2
198 400029238 120 300 117 297 3
- ------------------------------------------------------------------------------------------------------------------------------
199 400029183 120 360 114 354 6
200 400029194 120 300 115 295 5
201 400029160 120 300 114 294 6
202 09-0001084 120 360 117 357 3
203 400029204 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
204 400029148 120 360 113 353 7
205 400029216 120 300 117 297 3
205a 400029216A
205b 400029216B
205c 400029216C
- ------------------------------------------------------------------------------------------------------------------------------
205d 400029216D
206 400029208 120 360 114 354 6
207 400029162 108 360 101 353 7
208 R0254 120 360 114 354 6
209 400028269 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
210 400029309 120 240 119 239 1
211 L0200 120 300 116 296 4
212 400029310 120 300 119 299 1
213 09-0001134 240 240 239 239 1
214 L0300 120 276 118 274 2
- ------------------------------------------------------------------------------------------------------------------------------
215 400029156 120 360 115 355 5
216 400029215 120 240 115 235 5
216a 400029215A
216b 400029215B
216c 400029215C
- ------------------------------------------------------------------------------------------------------------------------------
217 400029211 120 300 115 295 5
218 L0184 120 300 117 297 3
219 09-0001051 120 360 117 357 3
220 400030893 120 360 119 359 1
221 09-0001088 240 240 239 239 1
- ------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 240 260 239 259 1
223 L0202 120 300 116 296 4
224 400029294 120 240 117 237 3
225 400029196 120 324 116 320 4
226 400028286 120 240 112 232 8
- ------------------------------------------------------------------------------------------------------------------------------
227 400029191 120 360 116 356 4
228 400029167 180 180 172 172 8
229 09-0001132 120 300 119 299 1
230 MU0036 120 300 120 300 0
231 09-0001112 120 360 118 358 2
- ------------------------------------------------------------------------------------------------------------------------------
232 R0807 237 237 236 236 1
233 400029258 120 360 117 357 3
234 09-0001081 240 240 237 237 3
235 09-0001061 230 230 226 226 4
236 R0480 120 360 119 359 1
- ------------------------------------------------------------------------------------------------------------------------------
237 I0099 120 360 119 359 1
238 400031123 120 360 118 358 2
239 09-0001070 120 360 117 357 3
240 09-0001074 240 240 237 237 3
241 09-0001039 228 228 223 223 5
- ------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 120 300 117 297 3
243 400029185 120 360 114 354 6
244 400030925 120 300 119 299 1
245 M0264 120 360 114 354 6
246 09-0001083 120 300 117 297 3
- ------------------------------------------------------------------------------------------------------------------------------
247 400029233 120 300 116 296 4
248 09-0001071 240 240 237 237 3
249 09-0001079 240 240 237 237 3
250 09-0001072 120 360 117 357 3
251 09-0001119 240 240 238 238 2
- ------------------------------------------------------------------------------------------------------------------------------
252 400029188 216 216 210 210 6
253 09-0001080 240 240 237 237 3
254 400029140 180 300 173 293 7
255 400029248 216 216 212 212 4
256 R0633 240 240 238 238 2
- ------------------------------------------------------------------------------------------------------------------------------
257 400029206 120 240 116 236 4
258 400029311 120 300 118 298 2
259 400029174 120 360 115 355 5
260 09-0001059 120 300 116 296 4
261 09-0001034 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 240 240 237 237 3
263 09-0001085 120 360 118 358 2
264 09-0001054 240 240 236 236 4
265 400029168 120 300 113 293 7
266 09-0001137 120 300 119 299 1
- ------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 120 360 117 357 3
268 400029182 120 360 115 355 5
269 07-0000000 120 240 117 237 3
270 400029228 120 300 115 295 5
271 400029155 120 300 113 293 7
- ------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 177 177 172 172 5
273 400029150 120 240 111 231 9
274 R0497 120 360 119 359 1
275 400029290 120 300 117 297 3
276 R0412 120 300 116 296 4
- ------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 240 240 237 237 3
278 09-0001118 240 240 238 238 2
279 09-0001097 240 240 237 237 3
280 400029180 120 300 113 293 7
281 400030934 120 300 119 299 1
- ------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 120 360 118 358 2
283 09-0001147 180 180 179 179 1
284 400030871 240 240 238 238 2
285 09-0001073 120 300 117 297 3
286 400029297 120 300 117 297 3
- ------------------------------------------------------------------------------------------------------------------------------
287 O0348 120 360 118 358 2
288 09-0001105 120 300 118 298 2
289 O0253 120 300 117 297 3
290 09-0001060 240 240 236 236 4
291 M0262 120 360 114 354 6
- ------------------------------------------------------------------------------------------------------------------------------
292 M0220 120 360 114 354 6
293 M0290 120 360 114 354 6
294 I0074 120 360 118 358 2
295 09-0001141 240 240 239 239 1
296 400029235 120 300 116 296 4
- ------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 240 240 238 238 2
298 09-0001057 247 246 244 243 3
299 400029126 120 300 113 293 7
300 09-0001058 144 144 140 140 4
301 09-0001094 180 180 177 177 3
- ------------------------------------------------------------------------------------------------------------------------------
302 O0541 120 300 119 299 1
303 R0887 120 300 120 300 0
304 400029253 120 360 118 358 2
305 400030869 180 360 178 358 2
306 400029304 120 300 118 298 2
- ------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 120 360 117 357 3
308 400029210 120 360 116 356 4
309 M0288 120 360 114 354 6
310 M0289 120 360 114 354 6
311 09-0001069 240 240 237 237 3
- ------------------------------------------------------------------------------------------------------------------------------
312 M0364 120 360 119 359 1
313 400030870 180 360 178 358 2
314 400029291 120 300 116 296 4
315 09-0001077 120 300 117 297 3
316 R0634 240 240 238 238 2
- ------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 120 360 114 354 6
318 M0172 120 300 115 295 5
319 MU0114 120 300 120 300 0
320 09-0001036 120 360 114 354 6
321 R0886 120 300 120 300 0
- ------------------------------------------------------------------------------------------------------------------------------
322 400029246 120 360 117 357 3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PREPAYMENT YIELD
CONTROL LOAN SCHEDULED SCHEDULED BEGIN MAINTENANCE
NUMBER NUMBER MATURITY DATE ARD DATE PREPAYMENT PENALTY DESCRIPTION (MONTHS) TYPE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 ACS 05/11/23 05/11/08 11/11/00 Lock/30_Defeasance/89_0%/1
1a ACS-A
1b ACS-B
1c ACS-C
1d ACS-D
- -----------------------------------------------------------------------------------------------------------------------------------
1e ACS-E
1f ACS-F
1g ACS-G
1h ACS-H
1i ACS-I
- -----------------------------------------------------------------------------------------------------------------------------------
1j ACS-J
1k ACS-K
1l ACS-L
1m ACS-M
1n ACS-N
- -----------------------------------------------------------------------------------------------------------------------------------
1o ACS-O
1p ACS-P
1q ACS-Q
1r ACS-R
1s ACS-S
- -----------------------------------------------------------------------------------------------------------------------------------
1t ACS-T
1u ACS-U
1v ACS-V
1w ACS-W
1x ACS-X
- -----------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y
1z ACS-Z
1aa ACS-AA
1bb ACS-BB
1cc ACS-CC
- -----------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 01/01/08 01/01/07 Lock/108_0%12
2a AIM-1A
2b AIM-1B
2c AIM-1C
2d AIM-1D
- -----------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E
2f AIM-1F
2g AIM-1G
2h AIM-1H
2i AIM-1I
- -----------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J
2k AIM-1K
2l AIM-1L
2m AIM-1M
2n AIM-1N
- -----------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O
3 09-1001006 07/11/28 07/11/08 11/11/00 Locked/26_Defeasance/94
3a 09-1001006A
3b 09-1001006B
3c 09-1001006C
- -----------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D
3e 09-1001006E
3f 09-1001006F
3g 09-1001006G
3h 09-1001006H
- -----------------------------------------------------------------------------------------------------------------------------------
4 SkyII 06/11/28 08/11/08 11/11/00 Lock/29_Defeasance/92_0%/1
4a SkyIIA
4b SkyIIB
5 ANADC 10/11/08 11/11/00 Lock/25_Defeasance/95
6 09-0001076 06/11/08 06/11/01 Lock/36_Defeasance/83_0%/1
- -----------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 09/01/28 09/01/08 09/01/01 Lock/36_Defeasance/84
400029224 06/01/08 07/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
8 400029224A
9 400029218B
10 400029222C
- -----------------------------------------------------------------------------------------------------------------------------------
11 400029227D
12 400029219E
13 09-0001116 08/01/23 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
400029220 06/01/08 07/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
14 400029220A
- -----------------------------------------------------------------------------------------------------------------------------------
15 400029221B
16 400029226C
17 400029223D
18 400029225E
19 400030965 09/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 10/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
21 09-0001099 07/01/08 11/01/00 Lock/28_Defeasance/91_0%/1
22 SP007 04/01/28 03/01/08 11/01/00 Lock/31_Defeasance/82_0%/6
23 400029141 01/01/18 02/01/02 Lock/48_greater than YM or 1%/186_0%/6 Treasury Flat
24 400028225 07/01/04 08/01/00 Lock/36_greater than YM or 1%/42_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 05/11/28 05/11/08 11/11/00 Lock/30_Defeasance/87_0%/3
26 09-0001117 09/01/08 11/01/00 Lock/26_Defeasance/91_0%/3
26a 09-0001117A
26b 09-0001117B
26c 09-0001117C
- -----------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D
27 L0137 02/01/08 02/01/02 Lock/48_greater than YM or 1%/69_0%/3 Treasury Flat
28 400030913 09/01/08 10/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
29 09-0001122 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
30 09-0001102 08/01/23 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
31 400030964 09/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
32 400029308 07/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
33 400029207 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
34 09-0001115 08/01/23 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
35 R0421 05/01/13 05/01/01 Lock/36_Defeasance/138_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 05/01/08 05/01/01 Lock/36_Defeasance/81_0%/3
36a 09-0001040A
36b 09-0001040B
36c 09-0001040C
37 M0514 09/01/08 11/01/00 Lock/26_Defeasance/88_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
38 400030914 09/01/13 10/01/01 Lock/36_Defeasance/138_0%/6
39 O0179 07/01/05 07/01/01 Lock/36_Defeasance/42_0%/6
40 400028275 01/01/28 01/01/08 02/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
40a 400028275A
40b 400028275B
- -----------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 05/01/08 05/01/01 Lock/36_Defeasance/81_0%/3
42 09-0001100 07/01/08 11/01/00 Lock/28_Defeasance/91_0%/1
43 09-0001101 08/01/23 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
44 09-0001123 08/01/08 08/01/01 Lock/36_81/Defeasance_0%/3
45 09-0001042 04/10/08 04/10/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
46 O0311 05/01/08 11/01/00 Lock/30_Defeasance/84_0%/6
47 O0320 06/01/28 06/01/08 11/01/00 Lock/29_Defeasance/85_0%/6
48 M0171 05/01/08 11/01/00 Lock/30_Defeasance/90
49 R0280 08/31/19 02/01/01 Lock/36_Defeasance/224
50 400029282 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
51 M0462 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
52 400030935 09/01/08 10/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
53 400028228 09/01/07 10/01/98 Lock/12_greater than YM or 1%/102_0%/6 Spread to Treasury
54 L0149 07/01/08 07/01/01 Lock/36_Defeasance/84
55 O0265 02/01/08 11/01/00 Lock/33_Defeasance/81_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 06/10/08 05/10/01 Lock/36_Defeasance/84_0%/1
57 400028277 12/01/07 01/01/01 Lock/36_ Defeasance/78_0%/6
58 09-0001135 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
59 400030880 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
59a 400030880A
- -----------------------------------------------------------------------------------------------------------------------------------
59b 400030880B
59c 400030880C
59d 400030880D
59e 400030880E
59f 400030880F
- -----------------------------------------------------------------------------------------------------------------------------------
60 O0090 06/01/08 11/01/00 Lock/29_Defeasance/91
61 09-0001066 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
62 09-0001041 05/01/28 05/01/08 06/01/01 Lock/36_Defeasance/81_0%/3
62a 09-0001041A
62b 09-0001041B
- -----------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C
63 O0148 02/28/08 03/01/01 Lock/36_Defeasance/84
64 09-0001167 10/01/18 10/01/01 Lock/36_Defeasance/201_0%/3
65 R0297 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
66 O0244 02/28/08 11/01/00 Lock/32_Defeasance/88
- -----------------------------------------------------------------------------------------------------------------------------------
67 400029255 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
68 400029205 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
69 09-0001136 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
70 400029172 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
71 R0134 12/31/17 01/01/01 Lock/36_Defeasance/204
- -----------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 09/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
72a 09-0001133A
72b 09-0001133B
72c 09-0001133C
73 09-0001082 07/01/08 07/01/01 Lock/36_Defeasance/83_0%/1
- -----------------------------------------------------------------------------------------------------------------------------------
74 400030867 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
75 400030966 09/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
76 09-0001065 06/01/08 06/01/01 Lock/36_Defeasance/83_0%/1
77 400029184 03/01/08 04/01/04 Lock/72_greater than YM or 1%/42_0%/6 Treasury Flat
78 400029251 07/01/08 08/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
79 400030922 09/01/08 10/01/02 Lock/48greater than YM or 1%/66_0%/6 Treasury Flat
80 R0311 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
81 400029139 03/01/25 03/01/08 03/01/01 Lock/36_Defeasance/84
82 R0514 07/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
83 09-0001044 05/01/08 05/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
84 400029161 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
85 400029171 03/01/08 04/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
86 R0559 04/01/19 08/01/01 Lock/36_Defeasance/206_0%/6
87 400029274 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
88 R0463 10/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
89 400029257 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
90 400029169 02/01/08 03/01/01 Lock/36_Defeasance/78_0%/6
91 400031048 08/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
92 400029237 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
93 400029202 04/01/08 05/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
94 O0359 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
95 M0330 08/01/08 08/01/01 Lock/36_Defeasance/78_0%/6
95a M0330A
95b M0330B
96 R0464 07/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 06/01/08 06/01/01 Lock/36_Defeasance/81_0%/3
98 400029262 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
99 400029134 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
100 400029200 05/01/08 06/01/02 Lock/48_greater than YM or 1%/54_0%/18 Treasury Flat
101 R0533 08/01/18 08/01/01 Lock/36_Defeasance/198_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
103 400029214 05/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
103a 400029214A
103b 400029214B
103c 400029214C
- -----------------------------------------------------------------------------------------------------------------------------------
103d 400029214D
103e 400029214E
103f 400029214F
103g 400029214G
103h 400029214H
- -----------------------------------------------------------------------------------------------------------------------------------
103i 400029214I
104 MH0020 10/01/08 11/01/00 Lock/25_Defeasance/89_0%/6
105 400029166 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
106 400029173 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
106a 400029173A
- -----------------------------------------------------------------------------------------------------------------------------------
106b 400029173B
106c 400029173C
106d 400029173D
106e 400029173E
107 09-0001110 09/01/23 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
108 R0315 07/31/08 08/01/01 Lock/36_Defeasance/84
109 400029147 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
110 09-0001160 10/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
111 400030896 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
112 400029299 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
113 400029232 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
114 M0415 06/01/08 06/01/01 Lock/36_Defeasance/84
115 400029306 08/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
116 400029252 06/01/08 07/01/02 Lock/48_greater than YM or 1%/68_0%/4 Treasury Flat
117 400030886 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
117a 400030886A
117b 400030886B
118 400029217 06/01/18 07/01/06 Lock/96_greater than YM or 1%/138_0%/6 Treasury Flat
119 M0429 08/01/18 08/01/01 Lock/36_Defeasance/198_0%/6
120 400030875 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
121 400029121 03/01/08 04/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
122 09-0001111 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
123 R0458 09/01/18 09/01/01 Lock/36_Defeasance/198_0%/6
124 400030876 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
125 400029129 02/01/08 03/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 08/01/18 08/01/01 Lock/36_Defeasance/201_0%/3
127 09-0001140 09/01/18 09/01/01 Lock/36_Defeasance/203_0%/1
128 400028305 03/01/08 04/01/01 Lock/36_Defeasance/78_0%/6
129 O0422 10/01/08 11/01/00 Lock/25_Defeasance/89_0%/6
129a O0422A
- -----------------------------------------------------------------------------------------------------------------------------------
129b O0422B
130 R0304 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
131 400029137 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
132 400030967 09/01/08 10/01/01 Lock/36_Defeasance/81_0%/3
133 400029178 04/01/08 05/01/02 Lock/48_YM/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
134 400028304 01/01/13 02/01/02 Lock/48_greater than YM or 1%/126_0%/6 Treasury Flat
135 400029164 03/31/08 04/01/02 Lock/48_greater than YM or 1%/67_0%/6 Treasury Flat
136 400028210 06/01/12 07/01/01 Lock/48_greater than YM or 1%/126_0%/6 Treasury Flat
137 400029181 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
138 400029234 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 07/01/28 07/01/08 07/01/01 Lock/36_Defeasance/83_0%/1
140 09-0001053 06/01/08 06/01/01 Lock/36_Defeasance/81_0%/3
141 09-0001064 06/01/18 06/01/01 Lock/36_Defeasance/201_0%/3
142 O0259 02/28/08 03/01/01 Lock/36_Defeasance/84
143 R0743 09/01/18 09/01/01 Lock/36_Defeasance/198_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
144 400027540 08/01/12 08/01/04 Lock/84_greater than YM or 1%/90_0%/6 Treasury Flat
145 09-0001130 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
146 400029116 01/01/18 01/01/06 Lock/96_Defeasance/144
147 400029267 08/01/13 09/01/05 Lock/84_greater than YM or 1%/90_0%/6 Treasury Flat
148 400029190 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
149 400029250 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
149a 400029250A
149b 400029250B
150 L0237 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
151 09-0001114 08/01/23 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
152 400029154 04/01/08 04/01/02 Lock/48_greater than YM or 1%/67_0%/6 Treasury Flat
153 M0263 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
154 400029143 04/01/05 05/01/02 Lock/48_greater than YM or 1%/30_0%/6 Treasury Flat
155 400029189 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
156 09-0001163 10/01/08 10/01/01 Lock36_Defeasance81_0%3
- -----------------------------------------------------------------------------------------------------------------------------------
157 400031128 09/01/10 09/01/02 Lock/48_greater than YM or 1%/90_0%/6 Treasury Flat
158 400029213 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
159 09-0001045 05/01/08 05/01/01 Lock/36_Defeasance/83_0%/1
160 400029197 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
161 09-0001098 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
162 L0171 03/31/08 04/01/01 Lock/36_Defeasance /84
163 09-0001107 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
164 09-0001056 06/01/08 06/01/01 Lock/36_Defeasance/83_0%/1
165 M0487 09/01/18 09/01/01 Lock/36_Defeasance/198_0%/6
166 400029149 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
167 O0393 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
168 400029158 03/01/08 04/01/06 Lock/96_Defeasance/24
169 09-0001062 06/01/18 06/01/01 Lock/36_Defeasance/201_0%/3
170 400030890 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
171 400029300 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
172 400027560 11/01/17 12/01/01 Lock/48_greater than YM or 1%/186_0%/6 Treasury Flat
173 400029186 05/01/08 06/01/03 Lock/60_greater than YM or 1%/54_0%/6 Treasury Flat
173a 400029186A
173b 400029186B
173c 400029186C
- -----------------------------------------------------------------------------------------------------------------------------------
173d 400029186D
173e 400029186E
173f 400029186F
174 M0537 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
175 09-0001139 09/01/18 09/01/01 Lock/36_Defeasance/201_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
176 400029163 04/01/05 05/01/01 Lock/36_Defeasance/42_0%/6
177 400029212 09/01/07 10/01/98 Lock/6_greater than YM or 1%/101_0%/6 Spread to Treasury
178 400030868 08/01/13 09/01/05 Lock/84_greater than YM or 1%/90_0%/6 Treasury Flat
179 400029209 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
180 09-0001113 08/01/18 08/01/01 Lock/36_Defeasance_203/0%_1
- -----------------------------------------------------------------------------------------------------------------------------------
181 400029236 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
182 400029119 03/01/08 04/01/02 Lock/48_greater than YM or1%/66_0%/6 Treasury Flat
183 09-0001106 08/01/08 11/01/00 Lock/27_greater than YM or 1%/92_0%/1 Treasury Flat
184 400030915 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
185 09-0001067 07/01/18 07/01/01 Lock/36_Defeasance/198_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
186 400029157 02/01/08 03/01/01 Lock/36_Defeasance/78_0%/6
186a 400029157A
186b 400029157B
186c 400029157C
187 R0597 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 09/01/18 09/01/01 Lock/36_Defeasance/203_0%/1
189 400029187 05/01/08 06/01/03 Lock/60_greater than YM or 1%/54_0%/6 Treasury Flat
189a 400029187A
189b 400029187B
189c 400029187C
- -----------------------------------------------------------------------------------------------------------------------------------
189d 400029187D
189e 400029187E
190 M0443 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
191 400029199 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
191a 400029199A
- -----------------------------------------------------------------------------------------------------------------------------------
191b 400029199B
192 400029145 02/01/08 03/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
193 400029192 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
193a 400029192A
193b 400029192B
- -----------------------------------------------------------------------------------------------------------------------------------
194 400029201 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
195 09-0001038 05/01/08 05/01/01 Lock/36_Defeasance/81_0%/3
196 400030866 09/01/08 10/01/03 Lock/60_greater than YM or 1%/54_0%/6 Treasury Flat
197 09-0001087 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
198 400029238 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
199 400029183 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
200 400029194 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
201 400029160 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
202 09-0001084 07/01/08 07/01/01 Lock/36_Defeasance/81_0%/3
203 400029204 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
204 400029148 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66 0%_6 Treasury Flat
205 400029216 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
205a 400029216A
205b 400029216B
205c 400029216C
- -----------------------------------------------------------------------------------------------------------------------------------
205d 400029216D
206 400029208 04/01/08 05/01/01 Lock/36_Defeasance/78_0%/6
207 400029162 03/01/07 04/01/01 Lock/36_Defeasance/66_0%/6
208 R0254 04/01/08 11/01/00 Lock/31_Defeasance/85_0%/4
209 400028269 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
210 400029309 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
211 L0200 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
212 400029310 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
213 09-0001134 09/01/18 09/01/01 Lock/36_Defeasance/201_0%3
214 L0300 08/01/08 08/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
215 400029156 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
216 400029215 05/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
216a 400029215A
216b 400029215B
216c 400029215C
- -----------------------------------------------------------------------------------------------------------------------------------
217 400029211 05/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
218 L0184 07/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
219 09-0001051 07/01/08 11/01/00 Lock/28_Defeasance/91_0%/1
220 400030893 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
221 09-0001088 09/01/18 09/01/01 Lock/36_Defeasance/203_0%/1
- -----------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 09/01/18 09/01/01 Lock/36_Defeasance/201_0%/3
223 L0202 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
224 400029294 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
225 400029196 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
226 400028286 02/01/08 03/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
227 400029191 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
228 400029167 02/01/13 03/01/05 Lock/84_greater than YM or 1%/90_0%6 Treasury Flat
229 09-0001132 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
230 MU0036 10/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
231 09-0001112 08/01/08 08/01/01 Lock/36_Defeasance/83_0%/1
- -----------------------------------------------------------------------------------------------------------------------------------
232 R0807 06/01/18 09/01/01 Lock/36_Defeasance/195_0%/6
233 400029258 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
234 09-0001081 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
235 09-0001061 08/01/17 06/01/01 Lock/36_Defeasance/191_0%/3
236 R0480 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
237 I0099 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
238 400031123 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
239 09-0001070 07/01/08 07/01/01 Lock/36_Defeasance/81_0%/3
240 09-0001074 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
241 09-0001039 05/01/17 05/01/01 Lock/36_Defeasance/189_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 07/01/08 07/01/01 Lock/36_Defeasance/81_0%/3
243 400029185 04/01/08 05/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
244 400030925 09/01/08 10/01/02 Lock/48_greater than YM or 1%/66/_0%/6 Treasury Flat
245 M0264 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
246 09-0001083 07/01/08 07/01/01 Lock/36_Defeasance/83_0%/1
- -----------------------------------------------------------------------------------------------------------------------------------
247 400029233 06/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
248 09-0001071 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
249 09-0001079 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
250 09-0001072 07/01/08 11/01/00 Lock/28_Defeasance/91_0%/1
251 09-0001119 08/01/18 08/01/01 Lock/36_Defeasance/201_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
252 400029188 04/01/16 05/01/02 Lock/48_greater than YM or 1%/162_0%/6 Treasury Flat
253 09-0001080 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
254 400029140 03/01/13 04/01/02 Lock/48_greater than YM or 1%/126_0%/6 Treasury Flat
255 400029248 06/01/16 07/01/01 Lock/36_greater than YM or 1%/174_0%/6 Treasury Flat
256 R0633 08/01/18 08/01/01 Lock/36_Defeasance/198_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
257 400029206 06/01/08 07/01/03 Lock/60_Defeasance/54_0%/6
258 400029311 08/01/08 09/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
259 400029174 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
260 09-0001059 06/01/08 06/01/01 Lock/36_Defeasance/81_0%/3
261 09-0001034 04/01/08 04/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
263 09-0001085 08/01/28 08/01/08 08/01/01 Lock/36_Defeasance/81_0%/3
264 09-0001054 06/01/18 05/01/01 Lock/36_Defeasance/201_0%/3
265 400029168 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
266 09-0001137 09/01/08 09/01/01 Lock/36_Defeasance/81_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 07/01/08 07/01/01 Lock/36_Defeasance/81_0%/3
268 400029182 05/01/08 06/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
269 07-0000000 07/01/18 07/01/08 07/01/03 Lock/60_Defeasance/54_0%/6
270 400029228 05/01/08 06/01/01 Lock/36_Defeasance/78_%0/6
271 400029155 03/01/08 03/01/01 Lock/36_Defeasance/84
- -----------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 01/31/13 05/01/01 Lock/36_Defeasance/138_0%/3
273 400029150 01/01/08 02/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
274 R0497 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
275 400029290 07/01/08 08/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
276 R0412 06/01/08 06/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
278 09-0001118 08/01/18 08/01/01 Lock/36_Defeasance/201_0%/3
279 09-0001097 07/01/18 07/01/01 Lock/36_Defeasance/203_0%/1
280 400029180 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
281 400030934 09/01/08 10/01/01 Lock/36_Defeance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 08/01/08 08/01/01 Lock/36_Defeasance/83_0%/1
283 09-0001147 09/01/13 09/01/01 Lock/36_Defeasance/141_0%/3
284 400030871 08/01/18 09/01/08 Lock/120_greater than YM or 1%/114_0%/6 Treasury Flat
285 09-0001073 07/01/08 11/01/00 Lock/28_Defeasance/91_0%/1
286 400029297 07/01/08 08/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
287 O0348 08/01/08 08/01/01 Lock/36_Defeasance/78_0%/6
288 09-0001105 08/01/08 08/01/01 Lock/36_Defeasance/83_0%/1
289 O0253 07/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
290 09-0001060 06/01/18 06/01/01 Lock/36_Defeasance/201_0%/3
291 M0262 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
292 M0220 04/01/08 04/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
293 M0290 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
294 I0074 08/01/08 08/01/01 Lock/36_Defeasance/78_0%/6
295 09-0001141 09/01/18 09/01/01 Lock/36_Defeasance/201_0%/3
296 400029235 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 08/01/18 08/01/01 Lock/36_Defeasance/201_0%/3
298 09-0001057 01/31/19 07/01/01 Lock/36_Defeasance/208_0%/3
299 400029126 03/01/08 04/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
300 09-0001058 06/01/10 06/01/01 Lock/36_Defeasance/105_0%/3
301 09-0001094 07/01/13 07/01/01 Lock/36_Defeasance/141_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
302 O0541 09/01/08 09/01/01 Lock/36_greater than YM or 1%/78_0%/6 Treasury Flat
303 R0887 10/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
304 400029253 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
305 400030869 08/01/13 09/01/05 Lock/84_greater than YM or 1%/90_0%/6 Treasury Flat
306 400029304 08/01/08 09/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
- -----------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 07/01/08 07/01/01 Lock/36_Defeasance/83_0%/1
308 400029210 06/01/08 07/01/01 Lock/36_Defeasance/78_0%/6
309 M0288 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
310 M0289 04/01/08 11/01/00 Lock/31_Defeasance/83_0%/6
311 09-0001069 07/01/18 07/01/01 Lock/36_Defeasance/201_0%/3
- -----------------------------------------------------------------------------------------------------------------------------------
312 M0364 09/01/08 09/01/01 Lock/36_Defeasance/78_0%/6
313 400030870 08/01/13 09/01/05 Lock/84_greater than YM or 1%/90_0%/6 Treasury Flat
314 400029291 06/01/08 07/01/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
315 09-0001077 07/01/08 07/01/01 Lock/36_Defeasance/81_0%/3
316 R0634 08/01/18 08/01/01 Lock/36_Defeasance/198_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 04/01/08 04/01/01 Lock/36_Defeasance/81_0%/3
318 M0172 05/01/08 05/01/01 Lock/36_Defeasance/78_0%/6
319 MU0114 10/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
320 09-0001036 04/01/08 04/01/01 Lock/36_Defeasance/81_0%/3
321 R0886 10/01/08 10/01/01 Lock/36_Defeasance/78_0%/6
- -----------------------------------------------------------------------------------------------------------------------------------
322 400029246 07/05/08 08/05/02 Lock/48_greater than YM or 1%/66_0%/6 Treasury Flat
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Origination
Control Loan Appraised Appraisal Date LTV Loan Seller/
Number Number Value Date Ratio Originator
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 ACS $ 520,600,000 57.05% GSMC
1a ACS-A 6,200,000 03/01/98 GSMC
1b ACS-B 14,400,000 03/01/98 GSMC
1c ACS-C 7,400,000 03/01/98 GSMC
1d ACS-D 35,100,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
1e ACS-E 15,800,000 03/01/98 GSMC
1f ACS-F 27,800,000 03/01/98 GSMC
1g ACS-G 22,900,000 03/01/98 GSMC
1h ACS-H 8,300,000 03/01/98 GSMC
1i ACS-I 57,600,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
1j ACS-J 4,750,000 03/01/98 GSMC
1k ACS-K 23,500,000 03/01/98 GSMC
1l ACS-L 7,300,000 03/01/98 GSMC
1m ACS-M 450,000 03/01/98 GSMC
1n ACS-N 18,900,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
1o ACS-O 34,200,000 03/01/98 GSMC
1p ACS-P 20,400,000 03/01/98 GSMC
1q ACS-Q 2,400,000 03/01/98 GSMC
1r ACS-R 47,800,000 03/01/98 GSMC
1s ACS-S 2,300,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
1t ACS-T 24,600,000 03/01/98 GSMC
1u ACS-U 12,200,000 03/01/98 GSMC
1v ACS-V 14,300,000 03/01/98 GSMC
1w ACS-W 32,600,000 03/01/98 GSMC
1x ACS-X 10,700,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
1y ACS-Y 9,100,000 03/01/98 GSMC
1z ACS-Z 10,000,000 03/01/98 GSMC
1aa ACS-AA 6,800,000 03/01/98 GSMC
1bb ACS-BB 18,200,000 03/01/98 GSMC
1cc ACS-CC 24,600,000 03/01/98 GSMC
- --------------------------------------------------------------------------------------------
2 AIM-1 178,375,000 61.67 GSMC
2a AIM-1A 55,500,000 08/28/98 GSMC
2b AIM-1B 5,925,000 09/01/98 GSMC
2c AIM-1C 8,500,000 08/29/98 GSMC
2d AIM-1D 5,700,000 08/28/98 GSMC
- --------------------------------------------------------------------------------------------
2e AIM-1E 4,350,000 08/27/98 GSMC
2f AIM-1F 10,000,000 08/28/98 GSMC
2g AIM-1G 8,600,000 08/31/98 GSMC
2h AIM-1H 10,650,000 08/28/98 GSMC
2i AIM-1I 8,400,000 08/27/98 GSMC
- --------------------------------------------------------------------------------------------
2j AIM-1J 26,000,000 08/28/98 GSMC
2k AIM-1K 3,350,000 09/02/98 GSMC
2l AIM-1L 6,250,000 08/31/98 GSMC
2m AIM-1M 17,000,000 08/31/98 GSMC
2n AIM-1N 3,650,000 09/01/98 GSMC
- --------------------------------------------------------------------------------------------
2o AIM-1O 4,500,000 08/29/98 GSMC
3 09-1001006 169,900,000 61.80 GSMC
3a 09-1001006A 20,100,000 05/29/98 GSMC
3b 09-1001006B 31,000,000 06/01/98 GSMC
3c 09-1001006C 26,000,000 06/01/98 GSMC
- --------------------------------------------------------------------------------------------
3d 09-1001006D 27,500,000 06/01/98 GSMC
3e 09-1001006E 18,600,000 06/01/98 GSMC
3f 09-1001006F 17,400,000 06/03/98 GSMC
3g 09-1001006G 13,000,000 06/01/98 GSMC
3h 09-1001006H 16,300,000 06/01/98 GSMC
- --------------------------------------------------------------------------------------------
4 SkyII 122,600,000 71.53 GSMC
4a SkyIIA 84,900,000 04/17/98 GSMC
4b SkyIIB 37,700,000 04/17/98 GSMC
5 ANADC 102,300,000 53.76 GSMC
6 09-0001076 45,000,000 05/01/98 73.33 GSMC (Archon)
- --------------------------------------------------------------------------------------------
7 09-0001128 32,000,000 06/24/98 80.00 GSMC (Archon)
400029224 36,500,000 12/17/97 69.86
8 400029224A 13,800,000 12/17/97 72.10 GSMC (ACLP)
9 400029218B 7,400,000 12/17/97 79.05 GSMC (ACLP)
10 400029222C 6,300,000 12/04/97 61.59 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
11 400029227D 4,500,000 12/17/97 72.67 GSMC (ACLP)
12 400029219E 4,500,000 12/17/97 56.67 GSMC (ACLP)
13 09-0001116 34,300,000 05/01/98 71.43 GSMC (Archon)
400029220 32,400,000 69.51
14 400029220A 9,000,000 12/17/97 76.22 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
15 400029221B 8,700,000 12/17/97 71.49 GSMC (ACLP)
16 400029226C 6,600,000 12/17/97 68.33 GSMC (ACLP)
17 400029223D 5,400,000 12/17/97 60.19 GSMC (ACLP)
18 400029225E 2,700,000 12/17/97 62.22 GSMC (ACLP)
19 400030965 25,400,000 07/11/98 85.83 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
20 09-0001168 27,200,000 07/21/98 79.04 GSMC (Archon)
21 09-0001099 34,500,000 04/09/98 61.88 GSMC (Archon)
22 SP007 37,000,000 10/01/97 56.76 GSMC (CPC)
23 400029141 33,800,000 11/25/97 59.17 GSMC (ACLP)
24 400028225 24,500,000 06/01/97 77.42 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
25 09-0001031 22,000,000 02/01/98 79.55 GSMC (Archon)
26 09-0001117 26,800,000 64.93 GSMC (Archon)
26a 09-0001117A 7,600,000 05/06/98 GSMC (Archon)
26b 09-0001117B 4,200,000 05/06/98 GSMC (Archon)
26c 09-0001117C 7,500,000 05/07/98 GSMC (Archon)
- --------------------------------------------------------------------------------------------
26d 09-0001117D 7,500,000 05/06/98 GSMC (Archon)
27 L0137 28,690,000 09/24/97 52.28 GSMC (CPC)
28 400030913 20,200,000 07/01/98 71.78 GSMC (ACLP)
29 09-0001122 17,600,000 05/01/98 80.68 GSMC (Archon)
30 09-0001102 21,600,000 05/01/98 62.50 GSMC (Archon)
- --------------------------------------------------------------------------------------------
31 400030964 18,800,000 07/23/98 70.74 GSMC (ACLP)
32 400029308 21,500,000 06/02/98 60.47 GSMC (ACLP)
33 400029207 16,500,000 03/01/98 77.58 GSMC (ACLP)
34 09-0001115 17,700,000 05/01/98 70.62 GSMC (Archon)
35 R0421 15,400,000 02/28/98 81.17 GSMC (CPC)
- --------------------------------------------------------------------------------------------
36 09-0001040 17,700,000 70.62 GSMC (Archon)
36a 09-0001040A 7,250,000 03/04/98 GSMC (Archon)
36b 09-0001040B 5,350,000 03/04/98 GSMC (Archon)
36c 09-0001040C 5,100,000 03/04/98 GSMC (Archon)
37 M0514 16,000,000 08/01/98 74.06 GSMC (CPC)
- --------------------------------------------------------------------------------------------
38 400030914 15,100,000 06/10/98 74.50 GSMC (ACLP)
39 O0179 13,450,000 03/23/98 79.55 GSMC (CPC)
40 400028275 14,500,000 73.10 GSMC (ACLP)
40a 400028275A 7,900,000 07/16/97 GSMC (ACLP)
40b 400028275B 6,600,000 07/15/97 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
41 09-0001037 15,000,000 02/03/98 68.00 GSMC (Archon)
42 09-0001100 18,500,000 04/08/98 54.86 GSMC (Archon)
43 09-0001101 16,000,000 05/01/98 63.44 GSMC (Archon)
44 09-0001123 12,670,000 06/23/98 79.32 GSMC (Archon)
45 09-0001042 12,120,000 03/09/98 80.86 GSMC (Archon)
- --------------------------------------------------------------------------------------------
46 O0311 13,500,000 12/31/97 70.37 GSMC (CPC)
47 O0320 16,300,000 11/04/97 57.67 GSMC (CPC)
48 M0171 13,250,000 10/09/97 70.94 GSMC (CPC)
49 R0280 11,800,000 10/30/97 80.00 GSMC (CPC)
50 400029282 11,090,000 01/28/98 79.35 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
51 M0462 11,285,000 06/29/98 77.45 GSMC (CPC)
52 400030935 10,700,000 06/18/98 80.93 GSMC (ACLP)
53 400028228 13,750,000 05/01/97 79.58 GSMC (ACLP)
54 L0149 11,900,000 12/02/97 68.07 GSMC (CPC)
55 O0265 16,200,000 12/15/97 49.38 GSMC (CPC)
- --------------------------------------------------------------------------------------------
56 09-0001055 10,350,000 04/02/98 77.36 GSMC (Archon)
57 400028277 10,450,000 08/20/97 73.68 GSMC (ACLP)
58 09-0001135 10,500,000 05/06/98 72.19 GSMC (Archon)
59 400030880 10,295,000 73.58 GSMC (ACLP)
59a 400030880A 2,500,000 05/25/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
59b 400030880B 1,250,000 05/31/98 GSMC (ACLP)
59c 400030880C 2,000,000 06/02/98 GSMC (ACLP)
59d 400030880D 1,275,000 06/08/98 GSMC (ACLP)
59e 400030880E 1,770,000 06/01/98 GSMC (ACLP)
59f 400030880F 1,500,000 05/20/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
60 O0090 10,100,000 09/15/97 72.28 GSMC (CPC)
61 09-0001066 12,700,000 09/01/97 55.12 GSMC (Archon)
62 09-0001041 9,200,000 73.91 GSMC (Archon)
62a 09-0001041A 2,600,000 02/17/98 GSMC (Archon)
62b 09-0001041B 5,700,000 02/16/98 GSMC (Archon)
- --------------------------------------------------------------------------------------------
62c 09-0001041C 900,000 03/02/98 GSMC (Archon)
63 O0148 10,000,000 10/20/97 66.00 GSMC (CPC)
64 09-0001167 9,400,000 08/01/98 69.30 GSMC (Archon)
65 R0297 8,150,000 02/19/98 79.75 GSMC (CPC)
66 O0244 9,500,000 11/21/97 68.42 GSMC (CPC)
- --------------------------------------------------------------------------------------------
67 400029255 8,150,000 04/03/98 79.14 GSMC (ACLP)
68 400029205 8,300,000 02/24/98 73.49 GSMC (ACLP)
69 09-0001136 7,750,000 05/11/98 75.00 GSMC (Archon)
70 400029172 7,540,000 01/07/98 75.99 GSMC (ACLP)
71 R0134 7,335,000 09/11/97 77.03 GSMC (CPC)
- --------------------------------------------------------------------------------------------
72 09-0001133 7,950,000 69.18 GSMC (Archon)
72a 09-0001133A 3,100,000 07/07/98 GSMC (Archon)
72b 09-0001133B 2,600,000 07/07/98 GSMC (Archon)
72c 09-0001133C 2,250,000 07/07/98 GSMC (Archon)
73 09-0001082 6,100,000 04/23/98 89.88 GSMC (Archon)
- --------------------------------------------------------------------------------------------
74 400030867 10,000,000 04/15/98 54.70 GSMC (ACLP)
75 400030966 9,000,000 07/11/98 60.00 GSMC (ACLP)
76 09-0001065 6,000,000 04/15/98 90.00 GSMC (Archon)
77 400029184 7,800,000 01/13/98 69.23 GSMC (ACLP)
78 400029251 7,900,000 04/08/98 67.72 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
79 400030922 7,400,000 03/16/98 71.89 GSMC (ACLP)
80 R0311 6,950,000 04/01/98 75.54 GSMC (CPC)
81 400029139 6,570,000 11/01/97 79.15 GSMC (ACLP)
82 R0514 6,400,000 04/05/98 80.00 GSMC (CPC)
83 09-0001044 6,200,000 01/28/98 80.65 GSMC (Archon)
- --------------------------------------------------------------------------------------------
84 400029161 8,200,000 08/29/97 60.98 GSMC (ACLP)
85 400029171 7,400,000 12/02/97 67.57 GSMC (ACLP)
86 R0559 6,620,000 04/01/98 75.00 GSMC (CPC)
87 400029274 6,100,000 04/17/98 80.00 GSMC (ACLP)
88 R0463 6,800,000 03/25/98 71.32 GSMC (CPC)
- --------------------------------------------------------------------------------------------
89 400029257 6,050,000 03/17/98 79.34 GSMC (ACLP)
90 400029169 5,950,000 12/29/97 79.83 GSMC (ACLP)
91 400031048 6,050,000 06/23/98 76.03 GSMC (ACLP)
92 400029237 6,200,000 03/31/98 74.19 GSMC (ACLP)
93 400029202 5,700,000 12/18/97 80.00 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
94 O0359 6,020,000 06/01/98 74.75 GSMC (CPC)
95 M0330 5,700,000 78.95 GSMC (CPC)
95a M0330A 2,600,000 04/15/98 GSMC (CPC)
95b M0330B 3,100,000 04/15/98 GSMC (CPC)
96 R0464 6,000,000 02/12/98 75.00 GSMC (CPC)
- --------------------------------------------------------------------------------------------
97 09-0001063 7,000,000 03/26/98 64.29 GSMC (Archon)
98 400029262 8,100,000 04/15/98 55.56 GSMC (ACLP)
99 400029134 6,200,000 12/04/97 72.58 GSMC (ACLP)
100 400029200 6,200,000 02/05/98 72.58 GSMC (ACLP)
101 R0533 5,870,000 06/03/98 74.96 GSMC (CPC)
- --------------------------------------------------------------------------------------------
102 09-0001138 5,850,000 05/11/98 74.96 GSMC (Archon)
103 400029214 8,240,000 53.40 GSMC (ACLP)
103a 400029214A 880,000 03/06/98 GSMC (ACLP)
103b 400029214B 875,000 03/06/98 GSMC (ACLP)
103c 400029214C 560,000 03/06/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
103d 400029214D 875,000 03/06/98 GSMC (ACLP)
103e 400029214E 1,130,000 03/06/98 GSMC (ACLP)
103f 400029214F 870,000 03/10/98 GSMC (ACLP)
103g 400029214G 1,030,000 03/06/98 GSMC (ACLP)
103h 400029214H 870,000 03/06/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
103i 400029214I 1,150,000 03/06/98 GSMC (ACLP)
104 MH0020 5,800,000 07/23/98 75.00 GSMC (CPC)
105 400029166 6,500,000 10/15/97 66.92 GSMC (ACLP)
106 400029173 6,640,000 64.76 GSMC (ACLP)
106a 400029173A 1,650,000 01/23/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
106b 400029173B 1,090,000 01/07/98 GSMC (ACLP)
106c 400029173C 1,590,000 01/07/98 GSMC (ACLP)
106d 400029173D 1,680,000 01/07/98 GSMC (ACLP)
106e 400029173E 630,000 01/07/98 GSMC (ACLP)
107 09-0001110 6,300,000 06/08/98 66.67 GSMC (Archon)
- --------------------------------------------------------------------------------------------
108 R0315 5,700,000 07/01/98 73.68 GSMC (CPC)
109 400029147 5,550,000 12/11/97 74.59 GSMC (ACLP)
110 09-0001160 4,950,000 08/03/98 81.82 GSMC (Archon)
111 400030896 5,875,000 07/14/98 68.09 GSMC (ACLP)
112 400029299 6,480,000 05/01/98 61.73 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
113 400029232 5,100,000 04/10/98 78.43 GSMC (ACLP)
114 M0415 4,900,000 04/21/98 80.82 GSMC (CPC)
115 400029306 5,200,000 05/21/98 75.96 GSMC (ACLP)
116 400029252 5,175,000 03/26/98 74.40 GSMC (ACLP)
117 400030886 5,100,000 75.00 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
117a 400030886A 1,200,000 05/20/98 GSMC (ACLP)
117b 400030886B 3,900,000 06/14/98 GSMC (ACLP)
118 400029217 4,930,000 04/01/98 77.08 GSMC (ACLP)
119 M0429 4,714,000 05/28/98 79.76 GSMC (CPC)
120 400030875 4,860,000 04/23/98 77.16 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
121 400029121 5,360,000 10/12/97 69.78 GSMC (ACLP)
122 09-0001111 4,630,000 07/31/98 79.91 GSMC (Archon)
123 R0458 5,320,000 03/23/98 69.55 GSMC (CPC)
124 400030876 4,760,000 04/29/98 77.73 GSMC (ACLP)
125 400029129 5,500,000 11/13/97 67.27 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
126 09-0001104 4,900,000 04/02/98 75.00 GSMC (Archon)
127 09-0001140 5,250,000 03/18/98 69.33 GSMC (Archon)
128 400028305 5,400,000 11/12/97 67.59 GSMC (ACLP)
129 O0422 4,775,000 75.39 GSMC (CPC)
129a O0422A 3,200,000 05/01/98 GSMC (CPC)
- --------------------------------------------------------------------------------------------
129b O0422B 1,575,000 05/01/98 GSMC (CPC)
130 R0304 5,000,000 01/12/98 72.00 GSMC (CPC)
131 400029137 4,500,000 11/12/97 80.00 GSMC (ACLP)
132 400030967 5,500,000 07/18/98 63.64 GSMC (ACLP)
133 400029178 4,390,000 01/15/98 79.73 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
134 400028304 5,500,000 10/03/97 63.64 GSMC (ACLP)
135 400029164 4,900,000 11/13/97 71.43 GSMC (ACLP)
136 400028210 4,750,000 04/07/97 74.21 GSMC (ACLP)
137 400029181 4,650,000 03/01/98 75.00 GSMC (ACLP)
138 400029234 4,900,000 10/23/97 70.82 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
139 09-0001086 4,740,000 04/20/98 72.81 GSMC (Archon)
140 09-0001053 4,600,000 03/16/98 75.00 GSMC (Archon)
141 09-0001064 5,400,000 02/26/98 62.96 GSMC (Archon)
142 O0259 5,030,000 11/10/97 67.10 GSMC (CPC)
143 R0743 4,400,000 07/17/98 73.64 GSMC (CPC)
- --------------------------------------------------------------------------------------------
144 400027540 4,150,000 01/31/97 78.25 GSMC (ACLP)
145 09-0001130 5,150,000 03/13/98 62.14 GSMC (Archon)
146 400029116 4,520,000 11/04/97 71.90 GSMC (ACLP)
147 400029267 3,900,000 05/19/98 82.31 GSMC (ACLP)
148 400029190 4,350,000 01/13/98 73.10 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
149 400029250 4,100,000 77.00 GSMC (ACLP)
149a 400029250A 4,100,000 04/14/98 GSMC (ACLP)
149b 400029250B 04/14/98 GSMC (ACLP)
150 L0237 4,200,000 07/02/98 74.45 GSMC (CPC)
151 09-0001114 5,100,000 05/01/98 60.78 GSMC (Archon)
- --------------------------------------------------------------------------------------------
152 400029154 3,900,000 12/26/97 79.74 GSMC (ACLP)
153 M0263 3,900,000 02/20/98 79.49 GSMC (CPC)
154 400029143 3,900,000 12/15/97 78.97 GSMC (ACLP)
155 400029189 4,150,000 02/01/98 72.89 GSMC (ACLP)
156 09-0001163 6,200,000 07/21/98 48.39 GSMC (Archon)
- --------------------------------------------------------------------------------------------
157 400031128 3,975,000 06/26/98 75.47 GSMC (ACLP)
158 400029213 4,150,000 03/05/98 72.29 GSMC (ACLP)
159 09-0001045 4,300,000 04/14/98 69.77 GSMC (Archon)
160 400029197 4,010,000 02/24/98 74.81 GSMC (ACLP)
161 09-0001098 5,100,000 04/17/98 58.82 GSMC (Archon)
- --------------------------------------------------------------------------------------------
162 L0171 4,050,000 08/01/97 74.07 GSMC (CPC)
163 09-0001107 4,800,000 02/19/98 62.19 GSMC (Archon)
164 09-0001056 3,930,000 03/17/98 75.06 GSMC (Archon)
165 M0487 3,847,000 07/24/98 76.55 GSMC (CPC)
166 400029149 4,000,000 01/01/98 73.75 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
167 O0393 3,600,000 03/10/98 80.00 GSMC (CPC)
168 400029158 4,260,000 09/08/97 66.90 GSMC (ACLP)
169 09-0001062 3,950,000 04/01/98 71.52 GSMC (Archon)
170 400030890 5,250,000 06/10/98 53.33 GSMC (ACLP)
171 400029300 3,819,000 05/16/98 73.32 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
172 400027560 3,700,000 01/22/97 75.68 GSMC (ACLP)
173 400029186 4,125,000 66.67 GSMC (ACLP)
173a 400029186A 665,000 01/22/98 GSMC (ACLP)
173b 400029186B 640,000 01/16/98 GSMC (ACLP)
173c 400029186C 665,000 01/16/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
173d 400029186D 665,000 01/15/98 GSMC (ACLP)
173e 400029186E 655,000 01/15/98 GSMC (ACLP)
173f 400029186F 835,000 01/21/98 GSMC (ACLP)
174 M0537 3,400,000 07/08/98 80.00 GSMC (CPC)
175 09-0001139 3,600,000 06/04/98 75.00 GSMC (Archon)
- --------------------------------------------------------------------------------------------
176 400029163 3,600,000 02/09/98 75.00 GSMC (ACLP)
177 400029212 13,750,000 05/01/97 79.58 GSMC (ACLP)
178 400030868 3,325,000 06/24/98 80.00 GSMC (ACLP)
179 400029209 3,590,000 03/09/98 73.82 GSMC (ACLP)
180 09-0001113 4,000,000 04/15/98 65.63 GSMC (Archon)
- --------------------------------------------------------------------------------------------
181 400029236 3,500,000 03/23/98 74.29 GSMC (ACLP)
182 400029119 3,520,000 10/17/97 73.86 GSMC (ACLP)
183 09-0001106 5,000,000 05/20/98 50.40 GSMC (Archon)
184 400030915 3,020,000 07/15/98 82.78 GSMC (ACLP)
185 09-0001067 3,400,000 04/01/98 73.53 GSMC (Archon)
- --------------------------------------------------------------------------------------------
186 400029157 3,590,000 69.64 GSMC (ACLP)
186a 400029157A 2,000,000 12/17/97 GSMC (ACLP)
186b 400029157B 700,000 12/17/97 GSMC (ACLP)
186c 400029157C 890,000 12/18/97 GSMC (ACLP)
187 R0597 3,400,000 04/30/98 72.35 GSMC (CPC)
- --------------------------------------------------------------------------------------------
188 09-0001142 3,275,000 03/30/98 74.81 GSMC (Archon)
189 400029187 3,705,000 65.45 GSMC (ACLP)
189a 400029187A 640,000 01/22/98 GSMC (ACLP)
189b 400029187B 830,000 01/21/98 GSMC (ACLP)
189c 400029187C 615,000 01/20/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
189d 400029187D 880,000 01/21/98 GSMC (ACLP)
189e 400029187E 740,000 01/23/98 GSMC (ACLP)
190 M0443 3,000,000 07/08/98 80.00 GSMC (CPC)
191 400029199 3,470,000 69.16 GSMC (ACLP)
191a 400029199A 2,200,000 02/28/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
191b 400029199B 1,270,000 03/07/98 GSMC (ACLP)
192 400029145 3,670,000 11/18/97 65.40 GSMC (ACLP)
193 400029192 3,300,000 72.27 GSMC (ACLP)
193a 400029192A 2,450,000 01/07/98 GSMC (ACLP)
193b 400029192B 850,000 01/07/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
194 400029201 3,300,000 02/25/98 72.12 GSMC (ACLP)
195 09-0001038 3,150,000 01/30/98 74.92 GSMC (Archon)
196 400030866 3,200,000 04/30/98 71.88 GSMC (ACLP)
197 09-0001087 2,875,000 05/05/98 80.00 GSMC (Archon)
198 400029238 3,200,000 03/31/98 71.88 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
199 400029183 3,000,000 10/20/97 76.67 GSMC (ACLP)
200 400029194 3,850,000 12/12/97 59.74 GSMC (ACLP)
201 400029160 3,400,000 12/31/97 67.65 GSMC (ACLP)
202 09-0001084 2,950,000 04/07/98 77.12 GSMC (Archon)
203 400029204 2,919,000 02/16/98 77.08 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
204 400029148 3,250,000 07/01/98 69.23 GSMC (ACLP)
205 400029216 3,135,000 70.18 GSMC (ACLP)
205a 400029216A 680,000 03/17/98 GSMC (ACLP)
205b 400029216B 1,460,000 03/17/98 GSMC (ACLP)
205c 400029216C 770,000 03/17/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
205d 400029216D 225,000 03/17/98 GSMC (ACLP)
206 400029208 2,600,000 02/17/98 84.62 GSMC (ACLP)
207 400029162 3,100,000 12/30/97 70.97 GSMC (ACLP)
208 R0254 2,900,000 12/01/97 75.00 GSMC (CPC)
209 400028269 2,735,000 06/18/97 78.61 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
210 400029309 2,860,000 05/20/98 74.72 GSMC (ACLP)
211 L0200 3,000,000 02/24/98 71.17 GSMC (CPC)
212 400029310 2,700,000 05/07/98 77.78 GSMC (ACLP)
213 09-0001134 2,900,000 06/10/98 72.41 GSMC (Archon)
214 L0300 3,100,000 06/02/98 67.74 GSMC (CPC)
- --------------------------------------------------------------------------------------------
215 400029156 2,800,000 12/24/97 75.00 GSMC (ACLP)
216 400029215 3,170,000 66.25 GSMC (ACLP)
216a 400029215A 1,000,000 03/06/98 GSMC (ACLP)
216b 400029215B 1,150,000 03/06/98 GSMC (ACLP)
216c 400029215C 1,020,000 03/06/98 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
217 400029211 3,375,000 03/10/98 61.63 GSMC (ACLP)
218 L0184 2,700,000 12/18/97 76.85 GSMC (CPC)
219 09-0001051 2,400,000 03/22/98 85.00 GSMC (Archon)
220 400030893 3,100,000 07/21/98 64.52 GSMC (ACLP)
221 09-0001088 2,850,000 04/16/98 70.18 GSMC (Archon)
- --------------------------------------------------------------------------------------------
222 09-0001124 2,900,000 05/13/98 68.97 GSMC (Archon)
223 L0202 2,870,000 03/11/97 69.69 GSMC (CPC)
224 400029294 3,350,000 04/28/98 59.70 GSMC (ACLP)
225 400029196 2,900,000 02/26/98 68.28 GSMC (ACLP)
226 400028286 2,650,000 10/09/97 75.47 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
227 400029191 2,670,000 01/09/98 73.41 GSMC (ACLP)
228 400029167 4,830,000 01/07/98 41.41 GSMC (ACLP)
229 09-0001132 3,000,000 06/01/98 65.00 GSMC (Archon)
230 MU0036 2,800,000 03/25/98 68.93 GSMC (CPC)
231 09-0001112 2,400,000 05/01/98 80.00 GSMC (Archon)
- --------------------------------------------------------------------------------------------
232 R0807 2,225,000 07/09/98 84.27 GSMC (CPC)
233 400029258 2,300,000 04/14/98 79.57 GSMC (ACLP)
234 09-0001081 2,435,000 02/24/98 74.95 GSMC (Archon)
235 09-0001061 1,870,000 03/16/98 97.72 GSMC (Archon)
236 R0480 2,390,000 03/19/98 75.31 GSMC (CPC)
- --------------------------------------------------------------------------------------------
237 I0099 2,415,000 05/15/98 74.53 GSMC (CPC)
238 400031123 2,300,000 06/03/98 78.26 GSMC (ACLP)
239 09-0001070 2,100,000 04/07/98 85.71 GSMC (Archon)
240 09-0001074 2,550,000 02/17/98 70.59 GSMC (Archon)
241 09-0001039 1,815,000 03/02/98 98.12 GSMC (Archon)
- --------------------------------------------------------------------------------------------
242 09-0001096 2,400,000 04/13/98 73.44 GSMC (Archon)
243 400029185 2,300,000 02/05/98 76.52 GSMC (ACLP)
244 400030925 2,350,000 07/09/98 74.47 GSMC (ACLP)
245 M0264 2,300,000 02/20/98 76.09 GSMC (CPC)
246 09-0001083 2,300,000 04/16/98 73.91 GSMC (Archon)
- --------------------------------------------------------------------------------------------
247 400029233 2,300,000 04/01/98 73.91 GSMC (ACLP)
248 09-0001071 2,350,000 02/17/98 72.34 GSMC (Archon)
249 09-0001079 2,450,000 02/17/98 69.39 GSMC (Archon)
250 09-0001072 2,850,000 04/02/98 59.30 GSMC (Archon)
251 09-0001119 2,820,000 04/10/98 59.40 GSMC (Archon)
- --------------------------------------------------------------------------------------------
252 400029188 2,100,000 01/05/98 80.00 GSMC (ACLP)
253 09-0001080 2,400,000 02/17/98 68.75 GSMC (Archon)
254 400029140 2,200,000 01/12/98 75.00 GSMC (ACLP)
255 400029248 2,250,000 03/17/98 73.33 GSMC (ACLP)
256 R0633 2,230,000 04/24/98 72.87 GSMC (CPC)
- --------------------------------------------------------------------------------------------
257 400029206 2,200,000 03/23/98 73.36 GSMC (ACLP)
258 400029311 2,140,000 05/22/98 74.77 GSMC (ACLP)
259 400029174 2,140,000 01/07/98 74.77 GSMC (ACLP)
260 09-0001059 2,200,000 03/20/98 72.73 GSMC (Archon)
261 09-0001034 2,250,000 11/24/97 71.11 GSMC (Archon)
- --------------------------------------------------------------------------------------------
262 09-0001046 1,950,000 06/01/98 80.88 GSMC (Archon)
263 09-0001085 2,000,000 07/01/98 77.50 GSMC (Archon)
264 09-0001054 2,195,000 04/06/98 70.62 GSMC (Archon)
265 400029168 2,145,000 10/24/97 72.26 GSMC (ACLP)
266 09-0001137 2,400,000 05/11/98 63.96 GSMC (Archon)
- --------------------------------------------------------------------------------------------
267 09-0001095 2,100,000 04/20/98 71.43 GSMC (Archon)
268 400029182 1,990,000 02/02/98 75.38 GSMC (ACLP)
269 07-0000000 3,150,000 04/21/98 47.62 Falcon Financial
270 400029228 2,100,000 03/23/98 71.43 GSMC (ACLP)
271 400029155 2,050,000 12/16/97 73.17 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
272 09-0001032 1,700,000 03/03/98 88.24 GSMC (Archon)
273 400029150 2,000,000 09/10/97 75.00 GSMC (ACLP)
274 R0497 2,165,000 05/20/98 68.13 GSMC (CPC)
275 400029290 1,970,000 04/10/98 74.87 GSMC (ACLP)
276 R0412 2,020,000 01/12/98 73.02 GSMC (CPC)
- --------------------------------------------------------------------------------------------
277 09-0001093 1,950,000 04/04/98 75.00 GSMC (Archon)
278 09-0001118 1,950,000 04/16/98 74.87 GSMC (Archon)
279 09-0001097 1,950,000 04/15/98 74.36 GSMC (Archon)
280 400029180 2,000,000 12/10/97 72.00 GSMC (ACLP)
281 400030934 1,950,000 07/14/98 71.79 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
282 09-0001091 1,900,000 06/01/98 73.68 GSMC (Archon)
283 09-0001147 3,050,000 04/09/98 45.90 GSMC (Archon)
284 400030871 3,000,000 06/05/98 46.67 GSMC (ACLP)
285 09-0001073 2,500,000 03/25/98 54.80 GSMC (Archon)
286 400029297 1,700,000 04/06/98 80.00 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
287 O0348 1,800,000 02/19/98 75.00 GSMC (CPC)
288 09-0001105 1,850,000 04/23/98 72.97 GSMC (Archon)
289 O0253 2,100,000 01/08/98 64.29 GSMC (CPC)
290 09-0001060 2,000,000 03/19/98 67.50 GSMC (Archon)
291 M0262 1,650,000 02/20/98 80.48 GSMC (CPC)
- --------------------------------------------------------------------------------------------
292 M0220 1,800,000 11/16/97 73.61 GSMC (CPC)
293 M0290 1,660,000 03/08/98 79.82 GSMC (CPC)
294 I0074 2,050,000 05/20/98 64.39 GSMC (CPC)
295 09-0001141 1,925,000 06/10/98 67.53 GSMC (Archon)
296 400029235 1,670,000 03/24/98 74.85 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
297 09-0001120 1,600,000 04/09/98 75.00 GSMC (Archon)
298 09-0001057 1,925,000 05/27/98 62.34 GSMC (Archon)
299 400029126 1,600,000 11/03/97 75.00 GSMC (ACLP)
300 09-0001058 2,025,000 03/19/98 59.26 GSMC (Archon)
301 09-0001094 2,400,000 08/10/97 49.17 GSMC (Archon)
- --------------------------------------------------------------------------------------------
302 O0541 1,900,000 07/01/98 60.53 GSMC (CPC)
303 R0887 1,550,000 03/13/98 73.87 GSMC (CPC)
304 400029253 1,550,000 03/31/98 70.97 GSMC (ACLP)
305 400030869 1,825,000 06/24/98 60.27 GSMC (ACLP)
306 400029304 1,700,000 05/27/98 64.71 GSMC (ACLP)
- --------------------------------------------------------------------------------------------
307 09-0001075 1,230,000 05/07/98 86.50 GSMC (Archon)
308 400029210 1,700,000 04/07/98 61.76 GSMC (ACLP)
309 M0288 1,435,000 03/08/98 73.17 GSMC (CPC)
310 M0289 1,340,000 03/08/98 74.63 GSMC (CPC)
311 09-0001069 1,325,000 02/24/98 75.47 GSMC (Archon)
- --------------------------------------------------------------------------------------------
312 M0364 1,200,000 05/21/98 80.00 GSMC (CPC)
313 400030870 1,290,000 06/24/98 69.77 GSMC (ACLP)
314 400029291 1,370,000 04/01/98 62.04 GSMC (ACLP)
315 09-0001077 1,400,000 04/21/98 57.14 GSMC (Archon)
316 R0634 1,150,000 05/05/98 69.57 GSMC (CPC)
- --------------------------------------------------------------------------------------------
317 09-0001035 875,000 03/01/98 79.66 GSMC (Archon)
318 M0172 900,000 01/01/98 69.44 GSMC (CPC)
319 MU0114 985,000 02/20/98 62.44 GSMC (CPC)
320 09-0001036 740,000 03/01/98 79.83 GSMC (Archon)
321 R0886 825,000 03/20/98 67.88 GSMC (CPC)
- --------------------------------------------------------------------------------------------
322 400029246 720,000 05/01/98 72.92 GSMC (ACLP)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cut-off Anticipated
Control Loan Date LTV LTV Year(s)
Number Number Property Name Ratio at Maturity/ARD Built
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 ACS Americold Portfolio 56.70% 22.45%
1a ACS-A Americold Cold Storage 56.70 1976
1b ACS-B Termicold 56.70 1973
1c ACS-C Americold Cold Storage 56.70 1969
1d ACS-D Americold Cold Storage 56.70 1959
- -------------------------------------------------------------------------------------------------------------------------------
1e ACS-E Americold Cold Storage 56.70 1965
1f ACS-F Americold Cold Storage 56.70 1973
1g ACS-G Americold Cold Storage 56.70 1969
1h ACS-H Americold Cold Storage 56.70 1962
1i ACS-I Americold Cold Storage 56.70 1976, 1997
- -------------------------------------------------------------------------------------------------------------------------------
1j ACS-J Americold Cold Storage 56.70 1979
1k ACS-K Americold Cold Storage 56.70 1975
1l ACS-L Americold Cold Storage 56.70 1954
1m ACS-M Americold Cold Storage 56.70 1953
1n ACS-N Americold Cold Storage 56.70 1958
- -------------------------------------------------------------------------------------------------------------------------------
1o ACS-O Americold Cold Storage 56.70 1967
1p ACS-P Americold Cold Storage 56.70 1946
1q ACS-Q Americold Cold Storage 56.70 1956
1r ACS-R Americold Cold Storage 56.70 1978
1s ACS-S Americold Cold Storage 56.70 1964
- -------------------------------------------------------------------------------------------------------------------------------
1t ACS-T Americold Cold Storage 56.70 1995
1u ACS-U Americold Cold Storage 56.70 1967
1v ACS-V Americold Cold Storage 56.70 1955, 1959, 1969
1w ACS-W Americold Cold Storage 56.70 1963
1x ACS-X Americold Cold Storage 56.70 1996
- -------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y Americold Cold Storage 56.70 1985
1z ACS-Z Americold Cold Storage 56.70 1960
1aa ACS-AA Americold Cold Storage 56.70 1981
1bb ACS-BB Americold Cold Storage 56.70 1985
1cc ACS-CC Americold Cold Storage 56.70 1952, 1956
- -------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 AIMCO Portfolio 61.19 52.19
2a AIM-1A AIMCO-Scothollow Apartments 52.80 1971
2b AIM-1B AIMCO-The Bluffs Apartments 63.20 1967, 1971
2c AIM-1C AIMCO-Buena Vista Apartments 58.60 1973
2d AIM-1D AIMCO-Casa De Monterey 72.40 1970
- -------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E AIMCO-Chappelle Le Grande 74.20 1973
2f AIM-1F AIMCO-Crosswood Park Apartments 56.00 1977
2g AIM-1G AIMCO-Forest Ridge Apartments 69.00 1968 - 1975
2h AIM-1H AIMCO-Mountain View Apartments 67.60 1978
2i AIM-1I AIMCO-North Park Apartments 74.90 1970 - 1974
- -------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J AIMCO-Pathfinder Village 52.10 1971
2k AIM-1K AIMCO-Shadowood Apartments 67.60 1974
2l AIM-1L AIMCO-Terrace Gardens Apartments 71.50 1971
2m AIM-1M AIMCO-Towers of Westchester 71.70 1968
2n AIM-1N AIMCO-Vista Village Apartments 91.60 1971
- -------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O AIMCO-Watergate Apartments 64.80 1973
3 09-1001006 EPT Portfolio 61.65 52.92
3a 09-1001006A AMC Grand 24 Megaplex 61.80 1995
3b 09-1001006B AMC Promenade 16 61.80 1996
3c 09-1001006C AMC Studio 30 61.80 1997
- -------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D AMC Ontario Mills 30 61.80 1996
3e 09-1001006E AMC West Olive 16 61.80 1997
3f 09-1001006F AMC Huebner Oaks 24 Metroplex 61.80 1997
3g 09-1001006G AMC Lennox 24 Megaplex 61.80 1996
3h 09-1001006H AMC Mission Valley 20 60.60 1995
- -------------------------------------------------------------------------------------------------------------------------------
4 SkyII Skyline One and Three 71.31 61.42
4a SkyIIA One Skyline Tower 81.25 1987
4b SkyIIB Skyline Place Three 48.92 1980
5 ANADC Washington Monarch Hotel 53.76 42.29 1985
6 09-0001076 First Place Tower 73.13 64.42 1950, 1973, 1976
- -------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 Factory Stores at Hershey 79.94 70.48 1994 - 1996
400029224 69.65 60.53
8 400029224A 604 Fifth Avenue 71.88 62.47 1924
9 400029218B 1276 Lexington Avenue 78.81 68.49 1902
10 400029222C 507-11 3rd Avenue 61.40 53.36 1890 - 1900
- -------------------------------------------------------------------------------------------------------------------------------
11 400029227D 800 - 802 Lexington Avenue 72.45 62.96 1932
12 400029219E 147-149 West 57th Street 56.49 49.10 1892
13 09-0001116 The WestCoast Benson Hotel 71.28 57.71 1913, 1959
400029220 69.29 60.22
14 400029220A 196 Broadway 75.99 66.04 1911
- -------------------------------------------------------------------------------------------------------------------------------
15 400029221B 250 East 65th Street 71.28 61.94 1966
16 400029226C 677 Lexington Avenue 68.13 59.20 1953
17 400029223D 560 Fifth Avenue 60.00 52.15 1906
18 400029225E 61 Fifth Avenue 62.03 53.91 1928
19 400030965 Holiday Inn - Independence 85.74 70.93 1974, 1979
- -------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 The Original Outlet Mall 79.04 68.72 1982, 1985 - 1987
21 09-0001099 Four Winds of Katonah Hospital 61.76 53.12 1902, 1930-1950
22 SP007 Hermanos Melendez Hospital 56.58 51.22 1960's, 1980
23 400029141 Willow Run Business Center 58.23 0.00 1942
24 400028225 Airport Plaza Shopping Center 76.65 71.90 1958
- -------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 Home Mortgage Plaza 79.29 70.09 1966
26 09-0001117 Karrington Portfolio 64.85 52.37
26a 09-0001117A Karrington at Tucker Creek 1993
26b 09-0001117B Karrington Place 1996
26c 09-0001117C Karrington On The Scioto 1993
- -------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D Karrington of Bexley 1992
27 L0137 Holiday Inn - Crowne Plaza 52.28 52.28 NAP
28 400030913 761 7th Avenue 71.73 62.90 1926
29 09-0001122 Sequoia Plaza Shopping Center 80.57 70.84 1990 - 1991
30 09-0001102 The Paramount Hotel 62.36 49.69 1996
- -------------------------------------------------------------------------------------------------------------------------------
31 400030964 Holiday Inn - Hudson 70.67 58.46 1967 - 1981
32 400029308 Courtyard by Marriott 60.26 48.25 1989
33 400029207 Northway Plaza Shopping Center 77.37 68.22 1964
34 09-0001115 WestCoast Vance Hotel 70.47 57.34 1926
35 R0421 Fallbrook Mall 80.92 63.77 1964
- -------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 Altid Portfolio 70.38 61.86
36a 09-0001040A 10 Elizabeth Drive 1979
36b 09-0001040B Altid Portfolio - 12 Elizabeth Drive 1980
36c 09-0001040C Altid Portfolio - 27 Industrial Avenue 1978
37 M0514 Hobbits Grove Apartments 73.99 63.49 1990
- -------------------------------------------------------------------------------------------------------------------------------
38 400030914 Michael's Distribution Center 74.44 57.04 1998
39 O0179 Sharp Mission Park Medical Ctr 79.40 73.64 1991
40 400028275 Cottonwood/Casa Grande 72.58 63.12
40a 400028275A Cottonwood Plaza 1987
40b 400028275B Tri Valley Plaza 1989
- -------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 Wenatchee Valley Mall 67.77 59.61 1972 - 1978
42 09-0001100 Four Winds of Saratoga Hospital 54.76 47.09 1986 - 1990
43 09-0001101 Best Western, Bellevue Inn 63.29 51.91 1969
44 09-0001123 Springdale Villa Apartments 79.20 69.08 1969
45 09-0001042 Briarwood Village Apartments 80.50 70.42 1983
- -------------------------------------------------------------------------------------------------------------------------------
46 O0311 Dunwoody Office Park 70.13 61.72 1974
47 O0320 Rehab Centre of Beverly Hills 57.53 51.20 1996
48 M0171 Fremont Garden Apartments 70.72 62.67 1980
49 R0280 Kmart - Valdosta 78.87 0.00 1994, 1996
50 400029282 Michigan Heart and Vascular Institute 79.20 69.73 1994
- -------------------------------------------------------------------------------------------------------------------------------
51 M0462 Cottonwood Cabanas Apartments 77.38 67.20 1967
52 400030935 Heritage Place Office Building 80.87 71.07 1984
53 400028228 The Shops at Sterling Ponds II 78.66 64.53 1996 - 1997
54 L0149 Lake Natoma Inn 67.85 54.92 1992
55 O0265 Westport Corporate Office Park 49.38 49.38 1980
- -------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 CDI Centre Office Building 77.11 68.10 1985
57 400028277 South Park Centre 73.13 64.01 1985
58 09-0001135 Best Western Inn & Suites - Farmington 72.11 58.53 1976
59 400030880 Allen Management - 6 Motels 73.44 60.35
59a 400030880A Econo Lodge - Charlottesville 1962
- -------------------------------------------------------------------------------------------------------------------------------
59b 400030880B Econo Lodge - Bristol 1972
59c 400030880C Rodeway Inn - Roanoke 1974
59d 400030880D Econo Lodge - Richmond 1972
59e 400030880E Econo Lodge - Sandston 1973
59f 400030880F Econo Lodge - Virginia Beach 1971
- -------------------------------------------------------------------------------------------------------------------------------
60 O0090 Hot Springs Village Shopping 72.10 64.22 Various
61 09-0001066 South Shore Nursing Home 54.90 45.10 1958
62 09-0001041 ARC Portfolio 73.66 64.74
62a 09-0001041A The Loveland Plaza Mobile Home Park 1966
62b 09-0001041B The Meadowbrook Mobile Home Park 1973
- -------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C Sunset Village Mobile Home Park 1975
63 O0148 Laurel Executive Building 65.65 57.12 1978
64 09-0001167 Centerra Marketplace 69.30 0.00 1997
65 R0297 Parc City Centre 79.54 70.28 1988
66 O0244 Commerce Center 68.10 60.16 1959
- -------------------------------------------------------------------------------------------------------------------------------
67 400029255 Woodward Village Shopping Center 78.94 69.90 1985, 1988
68 400029205 Walden Hurd Business Complex 73.20 63.26 1959
69 09-0001136 Best Western Sally Port Inn - Roswell 74.92 60.99 1977
70 400029172 The Armory 75.70 65.70 1913
71 R0134 Magnolia Point Shopping Center 75.74 0.00 1997
- -------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 Consolidated Storage Portfolio 69.10 55.60
72a 09-0001133A Consolidated Storage 1974
72b 09-0001133B Consolidated Storage 1975
72c 09-0001133C Consolidated Storage 1973,1977,1979
73 09-0001082 Canterbury Village Apartments 89.69 78.26 1970
- -------------------------------------------------------------------------------------------------------------------------------
74 400030867 Arcadia Landmark 54.58 44.05 1990
75 400030966 Holiday Inn - North Canton 59.94 49.58 1970 - 1971
76 09-0001065 Best Western - Rio Rancho 89.62 73.12 1969, 1990 - 1995
77 400029184 Alford Refrigerated Warehouse 68.81 57.68 1991
78 400029251 Laurelwood Collection Shopping Center 67.58 59.00 1954, 1987 - 1988
- -------------------------------------------------------------------------------------------------------------------------------
79 400030922 666 Pennsylvania Avenue Office Building 71.83 62.65 1936
80 R0311 Lakes Specialty Center 75.34 66.56 1988 - 1991
81 400029139 Redstone Apartments 78.56 64.92 1992 - 1993
82 R0514 Metzerott Plaza 79.84 69.98 1971, 1986
83 09-0001044 Palm Beach Assisted Living 80.42 72.07 1926, 1930
- -------------------------------------------------------------------------------------------------------------------------------
84 400029161 Plaza West Office Building 60.73 52.50 1981
85 400029171 Malibu Canyon Commercial Ctr. 67.23 59.06 1988
86 R0559 Kmart - Lincoln 74.75 0.00 1994
87 400029274 Valley Oaks Shopping Center 79.84 69.87 1992
88 R0463 Ruston Center 71.32 62.36 1981-1984, 1989
- -------------------------------------------------------------------------------------------------------------------------------
89 400029257 Indian Lookout Apartments 79.12 69.46 1980
90 400029169 Braden Creek Apartments 79.33 69.66 1971
91 400031048 Palm Springs Village Apartments 75.91 65.34 1972
92 400029237 Merritt Station Self Storage 73.93 58.79 1989 - 1990
93 400029202 Villa Acapulco Apartments 79.66 70.08 1979
- -------------------------------------------------------------------------------------------------------------------------------
94 O0359 CED Office Building 74.69 65.36 1997
95 M0330 Acadian House / Willow Bend 78.83 68.86
95a M0330A Acadian House Apartments 1970
95b M0330B Willow Bend Apartments 1973
96 R0464 Sunshine Heights Shopping Center 74.86 66.21 1984
- -------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 Rivertech Corporate Center 64.11 56.31 1990
98 400029262 Colwell Building 55.39 45.06 1909
99 400029134 Middletown Shopping Center 72.17 62.56 1969
100 400029200 Exchange St. Parking Ramp 71.51 34.42 1987
101 R0533 Bryan Station Shopping Center 74.69 0.00 1994 - 1995
- -------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 Best Western Inns & Suites - Gallup 74.87 60.77 1976
103 400029214 Bright Beginnings II 52.96 37.35
103a 400029214A Towner 1978, 1988
103b 400029214B Fortuna 1984, 1989
103c 400029214C Bernalillo 1985
- -------------------------------------------------------------------------------------------------------------------------------
103d 400029214D Paradise Hills 1987, 1988
103e 400029214E Taylor Ranch 1990, 1992
103f 400029214F Rufina 1989
103g 400029214G Gibson 1982, 1990, 1994
103h 400029214H Quantum 1992
- -------------------------------------------------------------------------------------------------------------------------------
103i 400029214I Anaheim 1994
104 MH0020 Grand Valley Village Mobile Home Park 75.00 59.04 1970
105 400029166 Caxton Building 66.42 54.15 1903
106 400029173 Hartford Portfolio 64.38 51.51
106a 400029173A The Brownstone 1862
- -------------------------------------------------------------------------------------------------------------------------------
106b 400029173B 1234-1236 Farmington Avenue 1952, 1966
106c 400029173C 1245 Farmington Avenue 1930's, 1940's
106d 400029173D 2471-2481 Albany Avenue 1955
106e 400029173E 43 South Main Street 1959
107 09-0001110 Oriental Accent 66.59 54.05 1973, 1991
- -------------------------------------------------------------------------------------------------------------------------------
108 R0315 Kroger Plaza 73.58 64.31 1998
109 400029147 Wilmette Commons Shopping Ctr. 74.20 64.72 1988
110 09-0001160 Plaza at River Oaks Apartments 81.82 70.60 1997
111 400030896 Bend Town Center 68.00 54.65 1966
112 400029299 Ogden Manor Apartments 61.59 53.62 1979
- -------------------------------------------------------------------------------------------------------------------------------
113 400029232 Riverside Village Apartments 78.21 68.63 1988
114 M0415 Northridge Villa Apartments 80.60 71.07 1986
115 400029306 University Gardens Apartments 75.85 65.94 1969
116 400029252 Cimarron Apartments 74.02 58.34 1973
117 400030886 Allen Management - 2 Motels 74.85 61.51
- -------------------------------------------------------------------------------------------------------------------------------
117a 400030886A Econo Lodge - Norfolk 1969
117b 400030886B Days Inn - Harrisonburg 1984
118 400029217 The Bricher Shops 76.55 0.00 1997
119 M0429 The Seasons Apartments and Townhouses 79.49 0.00 1984
120 400030875 Comfort Inn - Grand Rapids 77.00 62.78 1982
- -------------------------------------------------------------------------------------------------------------------------------
121 400029121 Saxon Center 69.47 61.84 1987
122 09-0001111 Figueroa Business Park 79.85 70.08 1986
123 R0458 Dexter Ridge Shopping Center 69.42 0.00 1993
124 400030876 Hampton Inn - Lansing 77.57 63.22 1985
125 400029129 Century Medical Center 66.82 57.69 1989
- -------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 Holiday Inn Express - Kokomo 74.73 0.00 1997
127 09-0001140 Holiday Inn - Lewisville 69.21 0.00 1986
128 400028305 Bowman Business Park 67.20 58.02 1995 - 1997
129 O0422 25/110 Enterprise Center 75.39 65.93
129a O0422A 25 Enterprise Center 1986
- -------------------------------------------------------------------------------------------------------------------------------
129b O0422B 110 Enterprise Center 1989
130 R0304 Alturas Plaza 71.69 63.06 1992 - 1993
131 400029137 Shirley Court Apartments 79.29 62.87 1932
132 400030967 Comfort Inn - Montrose West 63.57 52.59 1989, 1993
133 400029178 422 Mystic Avenue 79.34 68.61 1986 - 1987
- -------------------------------------------------------------------------------------------------------------------------------
134 400028304 Santa Fe Plaza Shopping Center 63.21 48.21 1988 - 1989
135 400029164 K Mart - Milton 70.94 58.47 1993
136 400028210 Royal Village Apartments 73.06 48.84 1972, 1974
137 400029181 Stuyvesant Plaza 74.44 59.07 1950
138 400029234 Center of Clewiston 70.64 62.62 1985 - 1986
- -------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 OM Bernardo Industrial Complex 72.65 63.43 1982
140 09-0001053 100 & 105 Rowayton Avenue 74.80 65.99 1987
141 09-0001064 Best Western Hotel - Ft. Washington 62.54 0.00 1973
142 O0259 Harbor Bay Biotech Building 66.77 58.80 1985
143 R0743 Town Center Shoppes 73.49 0.00 1981,1989, 1997
- -------------------------------------------------------------------------------------------------------------------------------
144 400027540 Marlton Plaza Shopping Center 77.57 61.23 1979
145 09-0001130 Spring Park Plaza Shopping Center 62.06 49.91 1979
146 400029116 Stoneybrook Shopping Center 70.69 0.00 1987 - 1988
147 400029267 301-309 West Broad Street 81.78 0.00 1953
148 400029190 Super 8 Universal Hotel 72.68 60.17 1984
- -------------------------------------------------------------------------------------------------------------------------------
149 400029250 Highland Business Park 76.68 62.50
149a 400029250A Highland Business Park 1989
149b 400029250B Highland Business Park 1989
150 L0237 Best Western Lancaster Inn 74.36 60.04 1964, 1976, 1978
151 09-0001114 Best Western Executive Park 60.66 49.28 1969
- -------------------------------------------------------------------------------------------------------------------------------
152 400029154 K-Mart Dundas 79.31 68.87 1991
153 M0263 Country Acres Apartments 79.15 69.70 1991
154 400029143 Marketplace East Shopping Ctr. 78.62 72.62 1996
155 400029189 25 E. 83rd Street 72.58 63.70 1938
156 09-0001163 Lancaster Mobile Home Park 48.39 41.23 1965, 1972, 1978
- -------------------------------------------------------------------------------------------------------------------------------
157 400031128 Chateau Hilgard 75.41 62.48 1989
158 400029213 Hallandale Professional Park 72.10 63.88 1983
159 09-0001045 Westbury Park Apartments 69.54 61.28 1981
160 400029197 44 Campanelli Parkway 74.49 60.56 1975 - 1979
161 09-0001098 Super 8 Motel - Goodlettsville 58.52 0.00 1972
- -------------------------------------------------------------------------------------------------------------------------------
162 L0171 Quality Inn - Hall of Fame 73.66 61.29 1974
163 09-0001107 Southgate Suites & Apartments 62.11 55.37 1955
164 09-0001056 Sonesta West Shopping Center 74.87 66.41 1978 - 1984
165 M0487 II Frances Place Apartments 76.41 0.00 1985
166 400029149 Ames Business Center 73.34 63.61 1986
- -------------------------------------------------------------------------------------------------------------------------------
167 O0393 Dorsey Park II 79.79 70.42 1986
168 400029158 Holiday Inn Express 66.43 54.58 1987
169 09-0001062 Comfort Suites-Richmond 71.01 0.00 1997
170 400030890 Pacific Mini-Storage Facility 53.27 43.25 1995, 1997
171 400029300 Comfort Inn - Harrisonburg, VA 73.23 58.92 1986
- -------------------------------------------------------------------------------------------------------------------------------
172 400027560 Concord House/Concord Terrace 74.26 0.00 1965, 1968
173 400029186 6 Advanced Auto Parts Stores 66.49 59.69
173a 400029186A Stornaway-Advance/Sylacauga 1993
173b 400029186B Stornaway-Advance/Monroeville 1995
173c 400029186C Stornaway-Advance/Paris 1997
- -------------------------------------------------------------------------------------------------------------------------------
173d 400029186D Stornaway-Advance/Memphis 1997
173e 400029186E Stornaway-Advance/W. Memphis 1997
173f 400029186F Stornaway-Advance/Alexander City 1994
174 M0537 Cedar Shores Apartments 79.93 69.45 1968
175 09-0001139 Quality Inn - Deland 74.86 0.00 1973
- -------------------------------------------------------------------------------------------------------------------------------
176 400029163 CSPP Building 74.70 69.52 1986
177 400029212 The Shops at Sterling Ponds II 78.66 64.53 1996 - 1997
178 400030868 The Cascade Apartments 79.89 61.33 1980
179 400029209 Centennial Square Shopping Center 73.50 59.65 1977,1978, 1980
180 09-0001113 Best Western Continental Inn 65.40 0.00 1964,1978,1983
- -------------------------------------------------------------------------------------------------------------------------------
181 400029236 Lomond Place Office Park 73.90 57.59 1990, 1993, 1994
182 400029119 Horizon Office Portfolio 73.44 63.56 1991 - 1996
183 09-0001106 Bay Area Rehab 50.30 41.41 1968
184 400030915 The Saddlery Office Building 82.72 72.80 1896
185 09-0001067 Comfort Inn - Houston 73.15 0.00 1996
- -------------------------------------------------------------------------------------------------------------------------------
186 400029157 Bright Beginnings Portfolio 69.06 57.30
186a 400029157A Eubank 1984
186b 400029157B Sante Fe 1993
186c 400029157C Homestead 1989, 1993
187 R0597 Benchmark Shopping Center 72.30 63.68 1974
- -------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 Days Inn and Suites Galleria/Westchase 74.67 0.00 1982-1985, 1992
189 400029187 5 Advanced Auto Parts Stores 65.28 58.60
189a 400029187A Advance Auto Parts - Anniston 1993
189b 400029187B Advance Auto Parts - Opelika 1994
189c 400029187C Advance Auto Parts-Albertville 1995
- -------------------------------------------------------------------------------------------------------------------------------
189d 400029187D Advance Auto Parts- Birmingham 1996
189e 400029187E Advance Auto Parts-Newnan, GA 1994
190 M0443 Tree House Apartments 79.93 69.45 1974
191 400029199 Utah Hotel Portfolio 68.54 47.13
191a 400029199A Skyline Inn 1959
- -------------------------------------------------------------------------------------------------------------------------------
191b 400029199B Howard Johnson Inn 1960, 1962, 1978
192 400029145 West Pacific Industrial Center 64.75 51.65 1960 - 1990
193 400029192 Avery Office Portfolio 71.97 63.31
193a 400029192A Avery Suites Office Building 1997
193b 400029192B Arbor Office Building 1996
- -------------------------------------------------------------------------------------------------------------------------------
194 400029201 Hills Dunkirk Shopping Center 71.76 58.82 1972 - 1984
195 09-0001038 Brandon Lakes Plaza 74.67 65.84 1986
196 400030866 Annapolis Business Center 71.79 57.80 cira 1970, 1984
197 09-0001087 Southlake Oaks Center 79.89 72.03 1997
198 400029238 Pulaski EZ Store Self Storage 71.62 56.88 1989-1990
- -------------------------------------------------------------------------------------------------------------------------------
199 400029183 Fairlawn Gardens Apartments 76.33 66.98 1970
200 400029194 Mil Pine Plaza 59.41 48.01 Early 1960s
201 400029160 The Fairfax School Building 67.16 53.61 1923
202 09-0001084 Westwood Apartments 76.97 67.95 1970
203 400029204 Fountain Plaza Shopping Center 76.79 68.34 1986, 1991
- -------------------------------------------------------------------------------------------------------------------------------
204 400029148 Kentwood Marketplace 68.84 59.56 1988
205 400029216 Dale Watts Portfolio 69.95 56.68
205a 400029216A Jiffy Lube Building 1993
205b 400029216B Central West Industrial Building 1997
205c 400029216C Sunny Slope Medical Office Building 1974
- -------------------------------------------------------------------------------------------------------------------------------
205d 400029216D H-Street Building 1973
206 400029208 Summit Apartments 84.24 73.71 1983 ,1986
207 400029162 Featherstone Professional Bld. 70.65 63.79 1989
208 R0254 Silver Spring Plaza 74.69 65.84 1967
209 400028269 Westmoor Apartments 78.28 68.92 1970's, 1996
- -------------------------------------------------------------------------------------------------------------------------------
210 400029309 Stop and Shop Center 74.58 51.25 1989 - 1990
211 L0200 Impala Hotel 70.89 58.57 1931
212 400029310 Airport Place Building 77.68 62.62 1991
213 09-0001134 Super 8 - Dumfries 72.28 0.00 1989
214 L0300 Holiday Inn - Banner Elk 67.58 52.75 1971
- -------------------------------------------------------------------------------------------------------------------------------
215 400029156 4300 Biscayne Boulevard 74.70 64.72 1970
216 400029215 Bright Beginnings III 65.70 46.34
216a 400029215A Barbara Loop 1995
216b 400029215B Mountain View Academy 1996
216c 400029215C Constitution 1995
- -------------------------------------------------------------------------------------------------------------------------------
217 400029211 K-Mart Decatur 61.33 50.50 1975
218 L0184 Super 8 Motel - North Point 76.63 62.84 1996
219 09-0001051 Town View Apartments 84.84 74.70 1984
220 400030893 Prospect Industrial 64.46 56.49 1969
221 09-0001088 Days Inn - Franklin 70.05 0.00 1996
- -------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 Ramada Inn - Columbia 68.84 0.00 1966
223 L0202 Holiday Inn - Douglas 69.42 57.29 1979
224 400029294 5775 Polaris/3475 Russell 59.38 40.83 1983, 1996
225 400029196 Little Neck Commons 68.05 58.17 1955
226 400028286 Oakview Plaza Shopping Center 74.35 51.77 1990
- -------------------------------------------------------------------------------------------------------------------------------
227 400029191 Staples - Burlington 73.23 65.08 1997
228 400029167 CARS Building 40.38 0.00 1958,1964,1968,1972
229 09-0001132 Days Inn - Nashville 64.93 52.95 1973
230 MU0036 Bear Creek Specialty Center 68.93 55.39 1982
231 09-0001112 TRMG Building 79.89 70.35 1986
- -------------------------------------------------------------------------------------------------------------------------------
232 R0807 Eckerd's - North Port 84.10 0.00 1998
233 400029258 790 Oak Grove Road 79.39 69.01 1997
234 09-0001081 Days Inn - Whitehouse 74.57 0.00 1983
235 09-0001061 Rite-Aid Ogdensberg 96.91 0.00 1997
236 R0480 Best Buy Retail Facility 75.26 66.59 1984
- -------------------------------------------------------------------------------------------------------------------------------
237 I0099 Black Lake Place 74.48 65.29 1988
238 400031123 Whitewood Oaks Apartments 78.15 68.14 1963-1965
239 09-0001070 Sierra Trails Apartments 85.54 75.13 1970
240 09-0001074 Holiday Inn Express 70.23 0.00 1995
241 09-0001039 Pulaski Rite-Aid 97.08 0.00 1996 - 1997
- -------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 Days Inn - Columbus 73.25 61.22 1987
243 400029185 Spring Heights Fourplexes 76.20 67.00 1981 - 1983
244 400030925 Congress Pointe Shopping Center 74.37 59.40 1986
245 M0264 Executive East Apartments 75.77 66.72 1989
246 09-0001083 Days Inn - San Antonio 73.70 60.61 1994
- -------------------------------------------------------------------------------------------------------------------------------
247 400029233 Lack's & Beall's Shopping Ctr. 73.58 59.47 1988
248 09-0001071 Comfort Inn - Franklin 71.98 0.00 1993
249 09-0001079 Comfort Inn - Cave City 69.03 0.00 1995
250 09-0001072 Angleton Plaza 59.18 52.10 1975
251 09-0001119 Howard Johnson Inn - North Charleston 59.19 0.00 1978
- -------------------------------------------------------------------------------------------------------------------------------
252 400029188 Lillian Cove Duplexes 78.91 0.00 1995 - 1996
253 09-0001080 Super 8 - Cave City 68.40 0.00 1996
254 400029140 Select Sites of Attleborough 74.38 46.57 1995
255 400029248 Econo Lodge Metro Hotel 72.72 0.00 1985
256 R0633 Piggly Wiggly - Savannah 72.61 0.00 1966
- -------------------------------------------------------------------------------------------------------------------------------
257 400029206 8304 Sherwick Court Warehouse 72.82 49.68 1960's
258 400029311 Prime Plaza 74.61 60.56 1986
259 400029174 Partridge Square 74.48 64.63 1989
260 09-0001059 Comfort Inn - Decatur 72.44 59.74 1990
261 09-0001034 Concourse Plaza 70.80 62.13 1984
- -------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 Rite-Aid Woodsville 80.41 0.00 1998
263 09-0001085 Somerset Workshops 77.40 68.58 1995 - 1996
264 09-0001054 Super 8 - Casa Grande 70.16 0.00 1996
265 400029168 The Eagle Crest Townhome Apts. 71.69 57.97 1974
266 09-0001137 Best Western Inn & Suites - Grants 63.88 51.86 1975
- -------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 NZ Commercial Center 71.29 62.76 1984
268 400029182 Chatham Street Apartments 75.08 65.01 1975, 1979
269 07-0000000 Sangera Autohaus 47.40 33.44 1965, 1972, 1980
270 400029228 Canyon Road Galleries 71.06 57.94 1928, 1995
271 400029155 Hopedale Business Park 72.61 58.93 1988-1990
- -------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 CVS Binghamton 86.77 0.00 1997-1998
273 400029150 Building R 73.74 50.84 1980
274 R0497 The Canary Creek Shoppes 68.08 59.92 1997
275 400029290 Whitehall Professional Center 74.65 60.89 1972
276 R0412 Galion West Shopping Center 72.72 59.55 1965
- -------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 Super 8 - Henderson 74.63 0.00 1968, 1974, 1982
278 09-0001118 Best Western Columbia Inn 74.61 0.00 1992
279 09-0001097 Super 8 - League City 73.98 0.00 1996
280 400029180 Blue Ash Shopping Center 71.38 56.86 1990
281 400030934 Woodwinds Office Center 71.71 57.68 1983
- -------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 Larchmont Boulevard Building 73.58 64.73 1923
283 09-0001147 Comfort Inn - Mobile, Alabama 45.76 0.00 1994
284 400030871 Padonia Park 46.50 0.00 1977 - 1978
285 09-0001073 Ridgecrest Shopping Center 54.63 44.22 1960
286 400029297 Herndon Office Building 79.72 63.74 1984
- -------------------------------------------------------------------------------------------------------------------------------
287 O0348 Treemont Office Building 74.90 66.32 1998
288 09-0001105 Days Inn - New Castle 72.83 59.65 1991
289 O0253 Country Club Court - Building 6 64.11 52.83 1996
290 09-0001060 Comfort Inn - Granbury 67.07 0.00 1994
291 M0262 Oakwood Heights Apartments 80.14 70.52 1996
- -------------------------------------------------------------------------------------------------------------------------------
292 M0220 121 Seaman Avenue 73.33 65.18 1932
293 M0290 Geneva Apartments 79.48 69.94 1990
294 I0074 Dime Circle Industrial Building 64.31 56.78 1981
295 09-0001141 Super 8 - Salsbury 67.41 0.00 1988
296 400029235 The Arbour Building 74.53 60.55 1978
- -------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 Days Inn - Enterprise 74.74 0.00 1995
298 09-0001057 CVS - Johnson City 61.99 0.00 1998
299 400029126 Shiloh Place Shopping Center 74.39 59.74 1983 - 1984
300 09-0001058 Super 8 - Brunswick 58.30 0.00 1997
301 09-0001094 Office Max 48.70 0.00 1998
- -------------------------------------------------------------------------------------------------------------------------------
302 O0541 Leawood Corporate Manor IV 60.46 49.09 1980
303 R0887 Southside Village Shopping Center 73.87 59.36 1973
304 400029253 1616 West Shaw 70.87 62.52 1970
305 400030869 The Park Square Apartments 60.19 46.21 1984
306 400029304 Gateway Office Park 64.56 52.12 1986, 1991
- -------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 Shadow Glen Apartments 86.34 76.14 1984
308 400029210 Litchfield Park Plaza 61.61 54.61 1978-1985
309 M0288 Southview Apartments 72.86 64.16 1990
310 M0289 The Crossings Apartments 74.31 65.44 1989
311 09-0001069 EconoLodge - Nashville 75.09 0.00 1989
- -------------------------------------------------------------------------------------------------------------------------------
312 M0364 Riverchase Apartments 79.94 70.41 1995
313 400030870 Park Ridge Apartments 69.67 53.61 1985
314 400029291 Keeney Mall 61.75 49.31 1954,1968,1970
315 09-0001077 Days Inn - Walthall, VA 57.01 47.94 1974
316 R0634 Piggly Wiggly - Andrews, SC 69.31 0.00 1971
- -------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 The Mason Apartments 79.25 68.24 1955
318 M0172 Roxbury Crossing Apartments 69.09 56.50 1893
319 MU0114 Murphy Road Business Center 62.44 50.17 1975
320 09-0001036 McKinney Avenue Apartments 79.43 68.39 1979
321 R0886 Plaza del Oro Shopping Center 67.88 54.54 1980
- -------------------------------------------------------------------------------------------------------------------------------
322 400029246 Columbia East Dundee Shopping Center 72.79 64.59 1990
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL SF/
CONTROL LOAN YEAR (S) LOCKBOX LOCKBOX UNITS/ROOMS/
NUMBER NUMBER RENOVATED REQUIRED TYPE BEDS/SPACES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 ACS Yes In Place 7,183,998
1a ACS-A 1980 114,222
1b ACS-B 1977 336,000
1c ACS-C UAV 218,316
1d ACS-D 1960,'62,'64,'70,'94,'96 407,217
- --------------------------------------------------------------------------------------------------------------
1e ACS-E 1966, 1968 194,000
1f ACS-F 1978 358,400
1g ACS-G 1971 232,500
1h ACS-H 1973 106,219
1i ACS-I NAP 717,077
- --------------------------------------------------------------------------------------------------------------
1j ACS-J 1980 155,811
1k ACS-K UAV 168,000
1l ACS-L 1970, 1980 147,600
1m ACS-M UAV 42,143
1n ACS-N 1971, 1978, 1988 196,626
- --------------------------------------------------------------------------------------------------------------
1o ACS-O 1970, 1979 302,400
1p ACS-P 1953,'57,'59,'61,'67,'74 364,000
1q ACS-Q UAV 806,400
1r ACS-R 1981 384,400
1s ACS-S UAV 13,951
- --------------------------------------------------------------------------------------------------------------
1t ACS-T NAP 251,172
1u ACS-U UAV 124,242
1v ACS-V 1986 157,966
1w ACS-W 1967, 1981 498,400
1x ACS-X NAP 135,116
- --------------------------------------------------------------------------------------------------------------
1y ACS-Y UAV 108,400
1z ACS-Z 1968 140,000
1aa ACS-AA UAV 40,000
1bb ACS-BB UAV 185,980
1cc ACS-CC 1956, 1968, 1979 277,440
- --------------------------------------------------------------------------------------------------------------
2 AIM-1 No Not Applicable 2,961
2a AIM-1A UAV 418
2b AIM-1B UAV 137
2c AIM-1C UAV 92
2d AIM-1D UAV 144
- --------------------------------------------------------------------------------------------------------------
2e AIM-1E UAV 105
2f AIM-1F UAV 180
2g AIM-1G UAV 278
2h AIM-1H UAV 168
2i AIM-1I UAV 284
- --------------------------------------------------------------------------------------------------------------
2j AIM-1J UAV 246
2k AIM-1K UAV 120
2l AIM-1L UAV 126
2m AIM-1M UAV 303
2n AIM-1N UAV 220
- --------------------------------------------------------------------------------------------------------------
2o AIM-1O UAV 140
3 09-1001006 Yes In Place 834,720
3a 09-1001006A NAP 98,175
3b 09-1001006B NAP 129,822
3c 09-1001006C NAP 136,154
- --------------------------------------------------------------------------------------------------------------
3d 09-1001006D NAP 131,534
3e 09-1001006E NAP 60,418
3f 09-1001006F NAP 96,004
3g 09-1001006G NAP 98,261
3h 09-1001006H NAP 84,352
- --------------------------------------------------------------------------------------------------------------
4 SkyII Yes Springing 728,668
4a SkyIIA NAP 476,582
4b SkyIIB NAP 252,086
5 ANADC 1997 Yes In Place 415
6 09-0001076 1996 No Not Applicable 624,374
- --------------------------------------------------------------------------------------------------------------
7 09-0001128 NAP Yes In Place 241,026
400029224 87,190
8 400029224A 1997 No Not Applicable 21,000
9 400029218B UAV No Not Applicable 16,168
10 400029222C 1996 No Not Applicable 26,507
- --------------------------------------------------------------------------------------------------------------
11 400029227D UAV Not Applicable Not Applicable 13
12 400029219E 1997 No Not Applicable 15,065
13 09-0001116 1990, 1991 Yes In Place 287
400029220 80,040
14 400029220A UAV No Not Applicable 27,310
- --------------------------------------------------------------------------------------------------------------
15 400029221B 1995 No Not Applicable 17,280
16 400029226C UAV No Not Applicable 12,850
17 400029223D UAV No Not Applicable 15,500
18 400029225E 1994 No Not Applicable 7,100
19 400030965 1993 - 1997 No Not Applicable 364
- --------------------------------------------------------------------------------------------------------------
20 09-0001168 1998 No Not Applicable 312,896
21 09-0001099 1984 - 1985 Yes Springing 175
22 SP007 1997 Yes In Place 206
23 400029141 1997 No Not Applicable 2,001,430
24 400028225 1986 No Not Applicable 208,564
- --------------------------------------------------------------------------------------------------------------
25 09-0001031 1988 Yes Springing 211,089
26 09-0001117 No Not Applicable 186
26a 09-0001117A NAP 54
26b 09-0001117B NAP 26
26c 09-0001117C NAP 53
- --------------------------------------------------------------------------------------------------------------
26d 09-0001117D NAP 53
27 L0137 NAP Yes Springing
28 400030913 Various No Not Applicable 27,500
29 09-0001122 NAP Yes Springing 175,235
30 09-0001102 NAP Yes In Place 146
- --------------------------------------------------------------------------------------------------------------
31 400030964 1995 - 1997 No Not Applicable 289
32 400029308 NAP No Not Applicable 184
33 400029207 1989 - 1991 No Not Applicable 296,735
34 09-0001115 1990 Yes In Place 165
35 R0421 1994, 1997 Yes Springing 287,004
- --------------------------------------------------------------------------------------------------------------
36 09-0001040 No Not Applicable 296,080
36a 09-0001040A UAV 113,280
36b 09-0001040B UAV 92,750
36c 09-0001040C UAV 90,050
37 M0514 NAP Yes Springing 170
- --------------------------------------------------------------------------------------------------------------
38 400030914 NAP No Not Applicable 431,250
39 O0179 1997 Yes Springing 49,303
40 400028275 Yes Springing 246,405
40a 400028275A NAP 140,503
40b 400028275B 1997 105,902
- --------------------------------------------------------------------------------------------------------------
41 09-0001037 1995 No Not Applicable 251,674
42 09-0001100 UAV Yes Springing 88
43 09-0001101 1996 Yes Springing 181
44 09-0001123 UAV No Not Applicable 216
45 09-0001042 1998 Not Applicable Not Applicable 342
- --------------------------------------------------------------------------------------------------------------
46 O0311 1991 - 1997 Yes Springing 178,285
47 O0320 NAP Yes Springing 150
48 M0171 NAP Yes Springing 160
49 R0280 NAP Yes Springing 175,396
50 400029282 1995 No Not Applicable 67,735
- --------------------------------------------------------------------------------------------------------------
51 M0462 UAV Yes Springing 384
52 400030935 UAV No Not Applicable 107,091
53 400028228 NAP No Not Applicable 143,791
54 L0149 1997 No Not Applicable 132
55 O0265 1997 Yes Springing 120,161
- --------------------------------------------------------------------------------------------------------------
56 09-0001055 1996 No Not Applicable 105,720
57 400028277 1993 No Not Applicable 82,471
58 09-0001135 1995 No Not Applicable 194
59 400030880 No Not Applicable 364
59a 400030880A UAV 60
- --------------------------------------------------------------------------------------------------------------
59b 400030880B UAV 48
59c 400030880C 1987 102
59d 400030880D UAV 48
59e 400030880E UAV 53
59f 400030880F UAV 53
- --------------------------------------------------------------------------------------------------------------
60 O0090 UAV Yes Springing 141,407
61 09-0001066 1996 - 1997 No Not Applicable 100
62 09-0001041 Yes In Place 614
62a 09-0001041A NAP 113
62b 09-0001041B NAP 388
- --------------------------------------------------------------------------------------------------------------
62c 09-0001041C UAV 113
63 O0148 1995, 1997 Yes Springing 116,120
64 09-0001167 NAP No Not Applicable 59,585
65 R0297 1997 Yes Springing 52,100
66 O0244 1980, 1995 Yes Springing 129,757
- --------------------------------------------------------------------------------------------------------------
67 400029255 1997 No Not Applicable 51,977
68 400029205 UAV No Not Applicable 438,715
69 09-0001136 1995 No Not Applicable 124
70 400029172 1988 No Not Applicable 46,913
71 R0134 NAP Yes Springing 62,742
- --------------------------------------------------------------------------------------------------------------
72 09-0001133 No Not Applicable 170,252
72a 09-0001133A NAP 65,490
72b 09-0001133B NAP 54,100
72c 09-0001133C NAP 50,662
73 09-0001082 UAV No Not Applicable 348
- --------------------------------------------------------------------------------------------------------------
74 400030867 1997 No Not Applicable 73,498
75 400030966 1993 No Not Applicable 194
76 09-0001065 NAP No Not Applicable 121
77 400029184 NAP No Not Applicable 156,585
78 400029251 1997 No Not Applicable 59,144
- --------------------------------------------------------------------------------------------------------------
79 400030922 1997 No Not Applicable 36,843
80 R0311 NAP Yes Springing 50,570
81 400029139 NAP Yes Springing 81
82 R0514 1991 Yes Springing 62,845
83 09-0001044 1997 Yes In Place 137
- --------------------------------------------------------------------------------------------------------------
84 400029161 1990 No Not Applicable 89,531
85 400029171 NAP No Not Applicable 42,704
86 R0559 NAP Yes Springing 112,434
87 400029274 NAP No Not Applicable 77,425
88 R0463 1988 Yes Springing 175,465
- --------------------------------------------------------------------------------------------------------------
89 400029257 1993 - 1997 No Not Applicable 135
90 400029169 1996 No Not Applicable 304
91 400031048 1994 No Not Applicable 155
92 400029237 UAV No Not Applicable 63,450
93 400029202 1997 No Not Applicable 292
- --------------------------------------------------------------------------------------------------------------
94 O0359 NAP Yes Springing 40,173
95 M0330 Yes Springing 201
95a M0330A 1991, 1996 92
95b M0330B 1991, 1996 109
96 R0464 1997 Yes Springing 120,198
- --------------------------------------------------------------------------------------------------------------
97 09-0001063 1993 No Not Applicable 70,100
98 400029262 1980's - 1990's No Not Applicable 147,040
99 400029134 1992 No Not Applicable 127,860
100 400029200 NAP No Not Applicable 820
101 R0533 NAP Yes Springing 49,690
- --------------------------------------------------------------------------------------------------------------
102 09-0001138 1995 No Not Applicable 126
103 400029214 Not Applicable Not Applicable 65,349
103a 400029214A NAP 6,777
103b 400029214B NAP 6,890
103c 400029214C NAP 5,936
- --------------------------------------------------------------------------------------------------------------
103d 400029214D NAP 6,730
103e 400029214E NAP 8,490
103f 400029214F NAP 6,590
103g 400029214G NAP 8,358
103h 400029214H NAP 6,600
- --------------------------------------------------------------------------------------------------------------
103i 400029214I NAP 8,978
104 MH0020 1988, 1993, 1995 Yes Springing 454
105 400029166 1976 No Not Applicable 160,545
106 400029173 No Not Applicable 69,262
106a 400029173A 1970's,1988,1994-1996 24,400
- --------------------------------------------------------------------------------------------------------------
106b 400029173B UAV 7,396
106c 400029173C 1954,'71,81,'83,'91,'94 13,533
106d 400029173D 1998 18,325
106e 400029173E 1985 5,608
107 09-0001110 UAV Yes In Place 169,510
- --------------------------------------------------------------------------------------------------------------
108 R0315 NAP Yes Springing 53,980
109 400029147 UAV No Not Applicable 34,985
110 09-0001160 NAP Not Applicable Not Applicable 44
111 400030896 1985 No Not Applicable 94,059
112 400029299 1994 - 1995 No Not Applicable 108
- --------------------------------------------------------------------------------------------------------------
113 400029232 1996 No Not Applicable 120
114 M0415 1997 Yes Springing 104
115 400029306 1992 No Not Applicable 100
116 400029252 1997 - 1998 No Not Applicable 106
117 400030886 No Not Applicable 162
- --------------------------------------------------------------------------------------------------------------
117a 400030886A 1985 73
117b 400030886B UAV 89
118 400029217 NAP No Not Applicable 24,812
119 M0429 1992 Yes Springing 149
120 400030875 1992 No Not Applicable 109
- --------------------------------------------------------------------------------------------------------------
121 400029121 UAV Not Applicable Not Applicable 86,479
122 09-0001111 UAV No Not Applicable 87,472
123 R0458 NAP Yes Springing 43,351
124 400030876 1998 No Not Applicable 109
125 400029129 1997 No Not Applicable 58,056
- --------------------------------------------------------------------------------------------------------------
126 09-0001104 NAP No Not Applicable 79
127 09-0001140 1992 No Not Applicable 117
128 400028305 NAP No Not Applicable 110,370
129 O0422 Yes Springing 77,847
129a O0422A UAV 47,796
- --------------------------------------------------------------------------------------------------------------
129b O0422B UAV 30,051
130 R0304 1994 Yes Springing 67,171
131 400029137 UAV No Not Applicable 150
132 400030967 1995-1996 No Not Applicable 132
133 400029178 UAV No Not Applicable 50
- --------------------------------------------------------------------------------------------------------------
134 400028304 NAP No Not Applicable 47,794
135 400029164 NAP No Not Applicable 94,841
136 400028210 1990 - 1996 No Not Applicable 300
137 400029181 Early 1990's No Not Applicable 51,390
138 400029234 1993 No Not Applicable 118,921
- --------------------------------------------------------------------------------------------------------------
139 09-0001086 UAV Yes In Place 57,975
140 09-0001053 1990 No Not Applicable 18,000
141 09-0001064 1997 No Not Applicable 104
142 O0259 1997 Yes Springing 32,000
143 R0743 NAP Yes Springing 30,486
- --------------------------------------------------------------------------------------------------------------
144 400027540 1997 No Not Applicable 77,480
145 09-0001130 UAV No Not Applicable 136,204
146 400029116 1996 No Not Applicable 74,340
147 400029267 1998 No Not Applicable 28,160
148 400029190 1997 No Not Applicable 110
- --------------------------------------------------------------------------------------------------------------
149 400029250 No Not Applicable 53,229
149a 400029250A NAP 32,357
149b 400029250B NAP 20,872
150 L0237 1992, 1996-1997 Yes Springing 168
151 09-0001114 1985, 1990 Yes In Place 107
- --------------------------------------------------------------------------------------------------------------
152 400029154 NAP No Not Applicable 94,479
153 M0263 NAP Yes Springing 105
154 400029143 NAP No Not Applicable 31,308
155 400029189 UAV No Not Applicable 6,528
156 09-0001163 UAV No Not Applicable 370
- --------------------------------------------------------------------------------------------------------------
157 400031128 NAP No Not Applicable 24
158 400029213 1996 No Not Applicable 50,400
159 09-0001045 1996 No Not Applicable 128
160 400029197 1997 No Not Applicable 110,000
161 09-0001098 UAV No Not Applicable 150
- --------------------------------------------------------------------------------------------------------------
162 L0171 1995 - 1997 Yes Springing 103
163 09-0001107 1995 - 1996 No Not Applicable 104
164 09-0001056 1990 No Not Applicable 44,872
165 M0487 1997 Yes Springing 100
166 400029149 1997 No Not Applicable 49,871
- --------------------------------------------------------------------------------------------------------------
167 O0393 NAP Yes Springing 54,381
168 400029158 1997 No Not Applicable 82
169 09-0001062 NAP No Not Applicable 62
170 400030890 NAP No Not Applicable 95,922
171 400029300 1996 - 1997 No Not Applicable 60
- --------------------------------------------------------------------------------------------------------------
172 400027560 1994 - 1996 No Not Applicable 322
173 400029186 No Not Applicable 46,075
173a 400029186A NAP 8,075
173b 400029186B NAP 7,000
173c 400029186C NAP 7,000
- --------------------------------------------------------------------------------------------------------------
173d 400029186D NAP 7,000
173e 400029186E NAP 7,000
173f 400029186F NAP 10,000
174 M0537 1997 Yes Springing 103
175 09-0001139 UAV No Not Applicable 112
- --------------------------------------------------------------------------------------------------------------
176 400029163 1995 No Not Applicable 41,500
177 400029212 NAP No Not Applicable 143,791
178 400030868 NAP No Not Applicable 120
179 400029209 1996 No Not Applicable 59,580
180 09-0001113 1994 - 1997 No Not Applicable 161
- --------------------------------------------------------------------------------------------------------------
181 400029236 1997 No Not Applicable 40,050
182 400029119 UAV No Not Applicable 34,962
183 09-0001106 1996 No Not Applicable 92
184 400030915 1997 No Not Applicable 50,286
185 09-0001067 NAP No Not Applicable 63
- --------------------------------------------------------------------------------------------------------------
186 400029157 No Not Applicable 52,635
186a 400029157A NAP 37,135
186b 400029157B UAV 6,600
186c 400029157C UAV 8,900
187 R0597 1993 Yes Springing 63,692
- --------------------------------------------------------------------------------------------------------------
188 09-0001142 1995 No Not Applicable 89
189 400029187 No Not Applicable 40,150
189a 400029187A NAP 8,075
189b 400029187B NAP 10,000
189c 400029187C NAP 7,000
- --------------------------------------------------------------------------------------------------------------
189d 400029187D NAP 7,000
189e 400029187E NAP 8,075
190 M0443 1996 Yes Springing 92
191 400029199 No Not Applicable 68
191a 400029199A 1972-1973 24
- --------------------------------------------------------------------------------------------------------------
191b 400029199B 1995 44
192 400029145 UAV No Not Applicable 73,755
193 400029192 No Not Applicable 25,408
193a 400029192A NAP 15,862
193b 400029192B NAP 9,546
- --------------------------------------------------------------------------------------------------------------
194 400029201 UAV No Not Applicable 103,205
195 09-0001038 NAP No Not Applicable 41,694
196 400030866 UAV No Not Applicable 64,077
197 09-0001087 N/A Not Applicable Not Applicable 20,692
198 400029238 NAP No Not Applicable 41,200
- --------------------------------------------------------------------------------------------------------------
199 400029183 1996-1997 No Not Applicable 112
200 400029194 1995, 1997 No Not Applicable 101,174
201 400029160 1988 No Not Applicable 44,166
202 09-0001084 1996 No Not Applicable 167
203 400029204 No Not Applicable 25,616
- --------------------------------------------------------------------------------------------------------------
204 400029148 1993 No Not Applicable 47,266
205 400029216 No Not Applicable 43,918
205a 400029216A NAP 2,060
205b 400029216B NAP 25,860
205c 400029216C 1997 9,998
- --------------------------------------------------------------------------------------------------------------
205d 400029216D 1996 6,000
206 400029208 NAP No Not Applicable 96
207 400029162 1997 No Not Applicable 39,377
208 R0254 1996 Yes Springing 102,585
209 400028269 UAV No Not Applicable 56
- --------------------------------------------------------------------------------------------------------------
210 400029309 NAP No Not Applicable 16,788
211 L0200 1993 Yes Springing 17
212 400029310 NAP Yes In Place 23,023
213 09-0001134 1997 No Not Applicable 81
214 L0300 1995-1996 Yes Springing 101
- --------------------------------------------------------------------------------------------------------------
215 400029156 1997 No Not Applicable 37,847
216 400029215 No Not Applicable 26,800
216a 400029215A NA 8,900
216b 400029215B NA 9,000
216c 400029215C NAP 8,900
- --------------------------------------------------------------------------------------------------------------
217 400029211 1992 No Not Applicable 96,269
218 L0184 NAP Yes Springing 60
219 09-0001051 NAP No Not Applicable 127
220 400030893 1995 No Not Applicable 88,000
221 09-0001088 NAP No Not Applicable 61
- --------------------------------------------------------------------------------------------------------------
222 09-0001124 1996 No Not Applicable 102
223 L0202 1985-1986,1996-1997 Yes Springing 100
224 400029294 NAP No Not Applicable 59,300
225 400029196 Late 1980's Not Applicable Not Applicable 30,100
226 400028286 UAV No Not Applicable 46,617
- --------------------------------------------------------------------------------------------------------------
227 400029191 NAP No Not Applicable 24,142
228 400029167 1995-1996 No Not Applicable 195,000
229 09-0001132 1996-1997 No Not Applicable 105
230 MU0036 UAV Yes Springing 43,089
231 09-0001112 UAV No Not Applicable 21,100
- --------------------------------------------------------------------------------------------------------------
232 R0807 NAP Yes In Place 10,908
233 400029258 NAP No Not Applicable 6,258
234 09-0001081 1997 No Not Applicable 100
235 09-0001061 NAP Yes In Place 11,282
236 R0480 1993 Yes Springing 36,416
- --------------------------------------------------------------------------------------------------------------
237 I0099 1997 Yes Springing 58,176
238 400031123 1995-1996 No Not Applicable 130
239 09-0001070 1995 No Not Applicable 116
240 09-0001074 NAP No Not Applicable 56
241 09-0001039 NAP Yes In Place 11,282
- --------------------------------------------------------------------------------------------------------------
242 09-0001096 1995 No Not Applicable 112
243 400029185 NAP No Not Applicable 76
244 400030925 NAP No Not Applicable 35,272
245 M0264 NAP Yes Springing 72
246 09-0001083 NAP No Not Applicable 67
- --------------------------------------------------------------------------------------------------------------
247 400029233 UAV No Not Applicable 85,899
248 09-0001071 NAP No Not Applicable 55
249 09-0001079 NAP No Not Applicable 60
250 09-0001072 1996 No Not Applicable 78,517
251 09-0001119 1996 - 1997 No Not Applicable 132
- --------------------------------------------------------------------------------------------------------------
252 400029188 NAP No Not Applicable 42
253 09-0001080 NAP No Not Applicable 51
254 400029140 1996 No Not Applicable 13,400
255 400029248 1998 No Not Applicable 47
256 R0633 NAP Yes Springing 46,150
- --------------------------------------------------------------------------------------------------------------
257 400029206 UAV No Not Applicable 60,000
258 400029311 UAV No Not Applicable 32,545
259 400029174 NAP No Not Applicable 29,325
260 09-0001059 NAP No Not Applicable 44
261 09-0001034 UAV No Not Applicable 48,015
- --------------------------------------------------------------------------------------------------------------
262 09-0001046 NAP Yes In Place 11,180
263 09-0001085 NAP No Not Applicable 15,642
264 09-0001054 NAP No Not Applicable 41
265 400029168 1997 No Not Applicable 135
266 09-0001137 1995 No Not Applicable 126
- --------------------------------------------------------------------------------------------------------------
267 09-0001095 NAP No Not Applicable 36,951
268 400029182 NAP No Not Applicable 66
269 07-0000000 1987 Yes Springing 22,251
270 400029228 UAV No Not Applicable 6,750
271 400029155 UAV No Not Applicable 27,720
- --------------------------------------------------------------------------------------------------------------
272 09-0001032 NAP Not Applicable Not Applicable 10,125
273 400029150 1997 Not Applicable Not Applicable 30,000
274 R0497 NAP Yes Springing 18,023
275 400029290 1997 No Not Applicable 29,242
276 R0412 1986, 1988 Yes Springing 59,002
- --------------------------------------------------------------------------------------------------------------
277 09-0001093 1996 Not Applicable Not Applicable 103
278 09-0001118 NAP No Not Applicable 51
279 09-0001097 NAP No Not Applicable 43
280 400029180 NAP No Not Applicable 18,153
281 400030934 NAP No Not Applicable 25,093
- --------------------------------------------------------------------------------------------------------------
282 09-0001091 1985 No Not Applicable 8,450
283 09-0001147 N/A No Not Applicable 58
284 400030871 1991, 1994 No Not Applicable 22,635
285 09-0001073 1995 No Not Applicable 64,004
286 400029297 1997 No Not Applicable 23,880
- --------------------------------------------------------------------------------------------------------------
287 O0348 NAP Yes Springing 13,684
288 09-0001105 1997 No Not Applicable 48
289 O0253 NAP Yes Springing 18,384
290 09-0001060 NAP No Not Applicable 48
291 M0262 NAP Yes Springing 38
- --------------------------------------------------------------------------------------------------------------
292 M0220 UAV Yes Springing 41
293 M0290 NAP Yes Springing 48
294 I0074 1997 Yes Springing 37,918
295 09-0001141 1997 No Not Applicable 48
296 400029235 NAP No Not Applicable 27,487
- --------------------------------------------------------------------------------------------------------------
297 09-0001120 NAP No Not Applicable 41
298 09-0001057 NAP No Not Applicable 10,125
299 400029126 NAP No Not Applicable 27,044
300 09-0001058 NAP No Not Applicable 52
301 09-0001094 NAP Yes In Place 23,600
- --------------------------------------------------------------------------------------------------------------
302 O0541 1993 No Not Applicable 21,730
303 R0887 UAV Yes Springing 65,260
304 400029253 UAV Not Applicable Not Applicable 20,203
305 400030869 1997 No Not Applicable 106
306 400029304 1988 No Not Applicable 22,980
- --------------------------------------------------------------------------------------------------------------
307 09-0001075 1994 Not Applicable Not Applicable 48
308 400029210 NAP No Not Applicable 23,691
309 M0288 NAP Yes Springing 48
310 M0289 NAP Yes Springing 39
311 09-0001069 NAP No Not Applicable 42
- --------------------------------------------------------------------------------------------------------------
312 M0364 NAP Yes Springing 24
313 400030870 UAV No Not Applicable 42
314 400029291 UAV No Not Applicable 20,672
315 09-0001077 1994 - 1997 No Not Applicable 122
316 R0634 1997 Yes Springing 23,752
- --------------------------------------------------------------------------------------------------------------
317 09-0001035 UAV No Not Applicable 25
318 M0172 1990, 1995-1996 Yes Springing 12
319 MU0114 UAV Yes Springing 43,000
320 09-0001036 1996 No Not Applicable 19
321 R0886 UAV Yes Springing 13,340
- --------------------------------------------------------------------------------------------------------------
322 400029246 NAP No Not Applicable 3,600
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SF/ LOAN BALANCE OCCUPANCY
CONTROL LOAN UNITS/ROOMS/ PER SF/UNIT/ OCCUPANCY AS OF
NUMBER NUMBER BEDS/SPACES OOM/BED/SPACE PERCENT DATE LARGEST TENANT
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 ACS Sq Ft $ 21
1a ACS-A Sq Ft
1b ACS-B Sq Ft
1c ACS-C Sq Ft
1d ACS-D Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
1e ACS-E Sq Ft
1f ACS-F Sq Ft
1g ACS-G Sq Ft
1h ACS-H Sq Ft
1i ACS-I Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
1j ACS-J Sq Ft
1k ACS-K Sq Ft
1l ACS-L Sq Ft
1m ACS-M Sq Ft
1n ACS-N Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
1o ACS-O Sq Ft
1p ACS-P Sq Ft
1q ACS-Q Sq Ft
1r ACS-R Sq Ft
1s ACS-S Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
1t ACS-T Sq Ft
1u ACS-U Sq Ft
1v ACS-V Sq Ft
1w ACS-W Sq Ft
1x ACS-X Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
1y ACS-Y Sq Ft
1z ACS-Z Sq Ft
1aa ACS-AA Sq Ft
1bb ACS-BB Sq Ft
1cc ACS-CC Sq Ft
- ----------------------------------------------------------------------------------------------------------------------------------
2 AIM-1 Units 36,862
2a AIM-1A Units 97 8/28/98
2b AIM-1B Units 97 9/1/98
2c AIM-1C Units 99 8/29/98
2d AIM-1D Units 96 8/28/98
- ----------------------------------------------------------------------------------------------------------------------------------
2e AIM-1E Units 92 8/27/98
2f AIM-1F Units 94 8/28/98
2g AIM-1G Units 91 8/31/98
2h AIM-1H Units 99 8/28/98
2i AIM-1I Units 99 8/27/98
- ----------------------------------------------------------------------------------------------------------------------------------
2j AIM-1J Units 97 8/31/98
2k AIM-1K Units 97 9/2/98
2l AIM-1L Units 95 8/31/98
2m AIM-1M Units 98 8/31/98
2n AIM-1N Units 96 9/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
2o AIM-1O Units 88 8/27/98
3 09-1001006 Sq Ft 125
3a 09-1001006A Sq Ft 100 5/29/98
3b 09-1001006B Sq Ft 100 6/1/98
3c 09-1001006C Sq Ft 100 6/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D Sq Ft 100 6/1/98
3e 09-1001006E Sq Ft 100 6/1/98
3f 09-1001006F Sq Ft 100 6/3/98
3g 09-1001006G Sq Ft 100 6/1/98
3h 09-1001006H Sq Ft 100 6/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
4 SkyII Sq Ft 120
4a SkyIIA Sq Ft 100 4/1/98 GSA
4b SkyIIB Sq Ft 92 4/1/98 Birch & Davis
5 ANADC Rooms 113,253 72
6 09-0001076 Sq Ft 53 95 6/30/98 Amoco Corp.
- ----------------------------------------------------------------------------------------------------------------------------------
7 09-0001128 Sq Ft 106 91 7/14/98 G.H. Bass
400029224 Sq Ft
8 400029224A Sq Ft 472 100 4/30/98 No. 604 Fifth Avenue Rest. Inc
9 400029218B Sq Ft 361 100 2/16/98 Beach Bum 86 St. Ltd.
10 400029222C Sq Ft 146 93 4/30/98 Pearls Realty Corp.
- ----------------------------------------------------------------------------------------------------------------------------------
11 400029227D Units 250,773 100 12/17/97 802 Lexington Farms
12 400029219E Sq Ft 169 100 4/30/98 147 K & S Restaurant, Inc.
13 09-0001116 Rooms 85,182 75 5/1/98
400029220 Sq Ft
14 400029220A Sq Ft 250 100 4/30/98 196 Broadway Restaurant Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
15 400029221B Sq Ft 359 100 4/30/98 205 E. Food Corp.
16 400029226C Sq Ft 350 100 4/30/98 677 Lex Operating Inc.
17 400029223D Sq Ft 209 100 4/30/98 560 Operating Inc.
18 400029225E Sq Ft 236 100 4/30/98 Far East Produce Inc.
19 400030965 Rooms 59,828 65 7/11/98
- ----------------------------------------------------------------------------------------------------------------------------------
20 09-0001168 Sq Ft 69 86 7/31/98 Carter's
21 09-0001099 Beds 121,761 94 4/9/98
22 SP007 Beds 101,622 82 2/19/98
23 400029141 Sq Ft 10 95 12/12/97 General Motors - SPO Division
24 400028225 Sq Ft 90 95 12/31/97 Circuit City
- ----------------------------------------------------------------------------------------------------------------------------------
25 09-0001031 Sq Ft 83 100 4/15/98 Puerto Rico Home Mortgage
26 09-0001117 Units 93,438
26a 09-0001117A Units 96 5/6/98
26b 09-0001117B Units 82 5/6/98
26c 09-0001117C Units 96 5/7/98
- ----------------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D Units 87 5/6/98
27 L0137 Sq Ft
28 400030913 Sq Ft 527 100 7/1/98 Taft Friday 50th St Oper LLC
29 09-0001122 Sq Ft 81 99 5/26/98 HomeBase
30 09-0001102 Rooms 92,253 68 4/30/98
- ----------------------------------------------------------------------------------------------------------------------------------
31 400030964 Rooms 45,973 66 7/23/98
32 400029308 Rooms 70,413 80 4/3/98
33 400029207 Sq Ft 43 90 5/6/98 Travelers Indemnity Svs. Ctr.
34 09-0001115 Rooms 75,600 70 12/31/97
35 R0421 Sq Ft 43 100 4/3/98 K-Mart
- ----------------------------------------------------------------------------------------------------------------------------------
36 09-0001040 Sq Ft 42
36a 09-0001040A Sq Ft 100 3/4/98 Cynosure
36b 09-0001040B Sq Ft 100 3/4/98 Mitchell & Webb Catalog Ven.
36c 09-0001040C Sq Ft 100 3/4/98 Sky Computers
37 M0514 Units 69,641 96 8/28/98
- ----------------------------------------------------------------------------------------------------------------------------------
38 400030914 Sq Ft 26 100 6/24/98 Michael's Stores, Inc.
39 O0179 Sq Ft 217 100 6/29/98 Sharp Healthcare
40 400028275 Sq Ft 43
40a 400028275A Sq Ft 91 5/21/98 Wal-Mart
40b 400028275B Sq Ft 95 5/21/98 JC Penney
- ----------------------------------------------------------------------------------------------------------------------------------
41 09-0001037 Sq Ft 40 96 4/27/98 Lamonts
42 09-0001100 Beds 115,115 100 6/26/98
43 09-0001101 Rooms 55,951 74 5/1/98
44 09-0001123 Units 46,459 97 7/21/98
45 09-0001042 Units 28,527 93 3/25/98
- ----------------------------------------------------------------------------------------------------------------------------------
46 O0311 Sq Ft 53 94 3/1/98 Eagle Research
47 O0320 Beds 62,513 75 7/31/98
48 M0171 Units 58,566 94 4/30/98
49 R0280 Sq Ft 53 100 12/15/97 Kmart Corporation
50 400029282 Sq Ft 130 100 6/1/98 Michigan Heart PC (Test/Rehab)
- ----------------------------------------------------------------------------------------------------------------------------------
51 M0462 Units 22,741 99 6/22/98
52 400030935 Sq Ft 81 95 7/27/98 Eckenfelder,Inc.
53 400028228 Sq Ft 57 88 7/15/98 Petsmart
54 L0149 Rooms 61,170 85 3/1/98
55 O0265 Sq Ft 67 100 1/1/98 Metropolitan Life Insurance
- ----------------------------------------------------------------------------------------------------------------------------------
56 09-0001055 Sq Ft 75 99 4/30/98 CDI Engineering
57 400028277 Sq Ft 93 91 4/3/98 First Reserve
58 09-0001135 Rooms 39,027 64 12/31/97
59 400030880 Rooms 20,770
59a 400030880A Rooms 69 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
59b 400030880B Rooms 63 5/31/98
59c 400030880C Rooms 60 12/31/97
59d 400030880D Rooms 83 12/31/97
59e 400030880E Rooms 90 12/31/97
59f 400030880F Rooms 75 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
60 O0090 Sq Ft 52 94 5/1/98 Malone & Hyde (Fleming Foods)
61 09-0001066 Beds 69,720 96 5/27/98
62 09-0001041 Pads 11,037
62a 09-0001041A Pads 100 2/28/98
62b 09-0001041B Pads 92 2/28/98
- ----------------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C Pads 94 2/28/98
63 O0148 Sq Ft 57 98 8/1/98 ESpire
64 09-0001167 Sq Ft 109 100 8/1/98 Hanover Consumer Foodstore
65 R0297 Sq Ft 124 89 5/1/98 Melodee Music
66 O0244 Sq Ft 50 100 3/24/98 IRS
- ----------------------------------------------------------------------------------------------------------------------------------
67 400029255 Sq Ft 124 87 3/31/98 Guarantee Financial
68 400029205 Sq Ft 14 100 2/24/98
69 09-0001136 Rooms 46,822 79 12/31/97
70 400029172 Sq Ft 122 90 4/21/98 Attorney Sack, Spector
71 R0134 Sq Ft 89 94 12/16/97 Piggly Wiggly
- ----------------------------------------------------------------------------------------------------------------------------------
72 09-0001133 Sq Ft 32
72a 09-0001133A Sq Ft 100 6/30/98
72b 09-0001133B Sq Ft 97 6/30/98
72c 09-0001133C Sq Ft 100 6/30/98
73 09-0001082 Units 15,721 87 5/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
74 400030867 Sq Ft 74 96 7/17/98 Toyko Wako
75 400030966 Rooms 27,806 74 7/11/98
76 09-0001065 Rooms 44,441 70 12/31/97
77 400029184 Sq Ft 34 100 2/5/98 Alford Refrig. Warehouses, Inc
78 400029251 Sq Ft 90 86 5/13/98 Edwin Watts Golf
- ----------------------------------------------------------------------------------------------------------------------------------
79 400030922 Sq Ft 144 100 8/14/98 Medlantic Healthcare Group, I.
80 R0311 Sq Ft 104 95 5/19/98 Chevy's Mexican Restaurant
81 400029139 Units 63,724 100 2/18/98
82 R0514 Sq Ft 81 100 6/1/98 Safeway Stores
83 09-0001044 Units 36,396 93 2/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
84 400029161 Sq Ft 56 96 3/31/98 Morganti Group, Inc.
85 400029171 Sq Ft 117 94 1/31/98 CDI Dynamics, Inc.
86 R0559 Sq Ft 44 100 7/15/98 Kmart
87 400029274 Sq Ft 63 92 6/8/98 Mar Val Market
88 R0463 Sq Ft 28 100 7/31/98 K-Mart
- ----------------------------------------------------------------------------------------------------------------------------------
89 400029257 Units 35,455 95 5/20/98
90 400029169 Units 15,527 91 1/13/98
91 400031048 Units 29,629 92 7/6/98
92 400029237 Sq Ft 72 85 3/31/98
93 400029202 Units 15,550 93 3/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
94 O0359 Sq Ft 112 100 6/1/98 CED Construction
95 M0330 Units 22,356
95a M0330A Units 0 98 6/25/98
95b M0330B Units 0 100 4/29/98
96 R0464 Sq Ft 37 99 1/1/98 K-Mart
- ----------------------------------------------------------------------------------------------------------------------------------
97 09-0001063 Sq Ft 64 100 5/8/98 Boeing
98 400029262 Sq Ft 31 100 6/16/98 England Press
99 400029134 Sq Ft 35 91 1/28/98 Weyman Drug (Revco)
100 400029200 Spaces 5,407 100 2/5/98
101 R0533 Sq Ft 88 100 7/23/98 Shoe Carnival
- ----------------------------------------------------------------------------------------------------------------------------------
102 09-0001138 Rooms 34,762 71 12/31/97
103 400029214 Sq Ft 67
103a 400029214A Sq Ft 100 3/24/98 Bright Beginnings
103b 400029214B Sq Ft 100 3/24/98 Bright Beginnings
103c 400029214C Sq Ft 100 3/24/98 Bright Beginnings
- ----------------------------------------------------------------------------------------------------------------------------------
103d 400029214D Sq Ft 100 3/24/98 Bright Beginnings
103e 400029214E Sq Ft 100 3/24/98 Bright Beginnings
103f 400029214F Sq Ft 100 3/24/98 Bright Beginnings
103g 400029214G Sq Ft 100 3/24/98 Bright Beginnings
103h 400029214H Sq Ft 100 3/24/98 Bright Beginnings
- ----------------------------------------------------------------------------------------------------------------------------------
103i 400029214I Sq Ft 100 3/24/98 Bright Beginnings
104 MH0020 Pads 9,582 93 8/31/98
105 400029166 Sq Ft 27 99 1/1/98 Cleveland Works Daycare
106 400029173 Sq Ft 62
106a 400029173A Sq Ft 39 4/21/98 Block Trading
- ----------------------------------------------------------------------------------------------------------------------------------
106b 400029173B Sq Ft 80 4/21/98 McDonald's Corp.
106c 400029173C Sq Ft 100 4/21/98 State of Conn.
106d 400029173D Sq Ft 84 4/21/98 Crown Supermarket
106e 400029173E Sq Ft 100 4/21/98 Lloyds Fur Studio Inc.
107 09-0001110 Sq Ft 25 100 8/7/98 Oriental Accent, Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
108 R0315 Sq Ft 78 100 6/26/98 Goody's Family Clothing, Inc.
109 400029147 Sq Ft 118 97 2/4/98 Mr. Eddie
110 09-0001160 Units 92,045 95 8/31/98
111 400030896 Sq Ft 42 91 6/3/98 Safeway
112 400029299 Units 36,957 98 6/2/98
- ----------------------------------------------------------------------------------------------------------------------------------
113 400029232 Units 33,239 97 4/30/98
114 M0415 Units 37,974 99 5/1/98
115 400029306 Units 39,440 6/1/98 Pluckers, Inc.
116 400029252 Units 36,137 99 4/21/98
117 400030886 Rooms 23,565
- ----------------------------------------------------------------------------------------------------------------------------------
117a 400030886A Rooms 59 12/31/97
117b 400030886B Rooms 87 12/31/97
118 400029217 Sq Ft 152 100 5/11/98 Bond Drug
119 M0429 Units 25,148 92 6/30/98
120 400030875 Rooms 34,333 72 4/30/98
- ----------------------------------------------------------------------------------------------------------------------------------
121 400029121 Sq Ft 43 100 12/29/97 K-Mart
122 09-0001111 Sq Ft 42 100 7/23/98 Three Star Warehouse Intl.
123 R0458 Sq Ft 85 97 7/7/98 Ol' Lodge Outfitters, Inc.
124 400030876 Rooms 33,875 67 4/29/98
125 400029129 Sq Ft 63 78 12/24/97 County of Los Angeles
- ----------------------------------------------------------------------------------------------------------------------------------
126 09-0001104 Rooms 46,355 70 4/2/98
127 09-0001140 Rooms 31,054 74 5/31/98
128 400028305 Sq Ft 33 100 1/1/98 Leisure Arts
129 O0422 Sq Ft 46
129a O0422A Sq Ft 100 8/26/98 Advanced Financial Systems
- ----------------------------------------------------------------------------------------------------------------------------------
129b O0422B Sq Ft 100 8/26/98 Advanced Financial Ser., Inc.
130 R0304 Sq Ft 53 98 1/14/98 Atkinsons' Market
131 400029137 Units 23,788 97 2/9/98 Shirley Court Pharmacy
132 400030967 Rooms 26,488 62 7/11/98
133 400029178 Units 69,659 92 3/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
134 400028304 Sq Ft 73 100 11/20/97 Thrifty Drugs
135 400029164 Sq Ft 37 100 2/13/98 K-Mart
136 400028210 Units 11,568 97 4/30/97
137 400029181 Sq Ft 67 80 3/18/98 Quality Markets
138 400029234 Sq Ft 29 96 4/2/98 K-Mart
- ----------------------------------------------------------------------------------------------------------------------------------
139 09-0001086 Sq Ft 59 100 4/20/98 Creative Learning
140 09-0001053 Sq Ft 191 100 4/24/98 Van Dyke
141 09-0001064 Rooms 32,471 62 2/28/98
142 O0259 Sq Ft 105 100 1/1/98 Gene/Networks, Inc.
143 R0743 Sq Ft 106 100 8/27/98 Palmbrook Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
144 400027540 Sq Ft 42 98 7/1/98 Food Lion
145 09-0001130 Sq Ft 23 100 5/12/98 K-Mart
146 400029116 Sq Ft 43 97 12/10/97 Food Lion
147 400029267 Sq Ft 113 100 U.S. Postal Service
148 400029190 Rooms 28,741 76 1/13/98
- ----------------------------------------------------------------------------------------------------------------------------------
149 400029250 Sq Ft 59
149a 400029250A Sq Ft 89 4/30/98
149b 400029250B Sq Ft 100 4/30/98 Bode Technology
150 L0237 Rooms 18,591 48 7/2/98
151 09-0001114 Rooms 28,911 64 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
152 400029154 Sq Ft 33 100 8/12/97 K-Mart Corporation
153 M0263 Units 29,400 100 4/28/98
154 400029143 Sq Ft 98 94 2/25/98 Moonlight Chinese Rest
155 400029189 Sq Ft 461 100 2/27/98 Gymboree Store
156 09-0001163 Pads 8,108 100 8/5/98
- ----------------------------------------------------------------------------------------------------------------------------------
157 400031128 Units 124,893 100 7/14/98
158 400029213 Sq Ft 59 100 4/3/98 Josephthal Lyon Ross
159 09-0001045 Units 23,360 94 4/14/98
160 400029197 Sq Ft 27 100 5/14/98 Marson Creative Fasteners
161 09-0001098 Rooms 19,897 61 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
162 L0171 Rooms 28,963 74 10/31/97
163 09-0001107 Units 28,668 91 6/30/98
164 09-0001056 Sq Ft 66 83 3/10/98 Goodwill Industries
165 M0487 Units 29,394 94 7/31/98
166 400029149 Sq Ft 59 98 1/12/98 James R Hill
- ----------------------------------------------------------------------------------------------------------------------------------
167 O0393 Sq Ft 53 100 2/1/98 HIDTA - Prince George's County
168 400029158 Rooms 34,509 80 11/30/97
169 09-0001062 Rooms 45,243 68 4/1/98
170 400030890 Sq Ft 29 58 7/14/98
171 400029300 Rooms 46,610 74 3/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
172 400027560 Units 8,533 94 1/22/97
173 400029186 Sq Ft 60
173a 400029186A Sq Ft 100 5/5/98 103 E. Ft. Williams St
173b 400029186B Sq Ft 100 5/5/98 1200 Highway 21 Bypass
173c 400029186C Sq Ft 100 5/5/98 1031 Mineral Wells
- ----------------------------------------------------------------------------------------------------------------------------------
173d 400029186D Sq Ft 100 5/5/98 Airways & Lerner
173e 400029186E Sq Ft 100 5/5/98 Broadway Street
173f 400029186F Sq Ft 100 5/5/98 U.S. Hwy 280 Bypass
174 M0537 Units 26,385 96 6/18/98
175 09-0001139 Rooms 24,063 60 6/4/98
- ----------------------------------------------------------------------------------------------------------------------------------
176 400029163 Sq Ft 65 100 1/20/98 California School Professional
177 400029212 Sq Ft 19 88 7/15/98 PetsMart
178 400030868 Units 22,135 99 6/30/98
179 400029209 Sq Ft 44 100 4/23/98 Denver Fabrics/Cisco
180 09-0001113 Rooms 16,248 50 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
181 400029236 Sq Ft 65 92 5/7/98 D'Arcangelo
182 400029119 Sq Ft 74 91 2/18/98 General Services Adm.
183 09-0001106 Beds 27,338 84 5/20/98
184 400030915 Sq Ft 50 97 7/14/98 Milwaukee Ale House
185 09-0001067 Rooms 39,480 77 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
186 400029157 Sq Ft 47
186a 400029157A Sq Ft 100 1/16/98 Bright Start (Eubank)
186b 400029157B Sq Ft 100 1/16/98 Bright Start (Santa Fe)
186c 400029157C Sq Ft 100 1/16/98 Bright Start (Homestead)
187 R0597 Sq Ft 39 100 5/6/98 Benchmark Adventures, Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
188 09-0001142 Rooms 27,476 65 3/31/98
189 400029187 Sq Ft 60
189a 400029187A Sq Ft 100 3/20/98 Advance Auto Parts - Anniston
189b 400029187B Sq Ft 100 3/20/98 Advance Auto Parts - Opelika
189c 400029187C Sq Ft 100 3/20/98 Advance Auto Parts-Albertville
- ----------------------------------------------------------------------------------------------------------------------------------
189d 400029187D Sq Ft 100 3/20/98 Advance Auto Parts-Birmingham
189e 400029187E Sq Ft 100 3/20/98 Advance Auto Parts-Newan, GA
190 M0443 Units 26,065 98 6/21/98
191 400029199 Rooms 34,976
191a 400029199A Rooms 88 2/28/98
- ----------------------------------------------------------------------------------------------------------------------------------
191b 400029199B Rooms 59 12/31/97
192 400029145 Sq Ft 32 100 1/8/98 Harris Moran Seed
193 400029192 Sq Ft 93
193a 400029192A Sq Ft 100 3/12/98 Veterans Administration
193b 400029192B Sq Ft 100 3/12/98 Counseling Associates
- ----------------------------------------------------------------------------------------------------------------------------------
194 400029201 Sq Ft 23 100 3/10/98 Hills
195 09-0001038 Sq Ft 56 89 4/6/98 ReMax Realty Unlimited
196 400030866 Sq Ft 36 98 4/30/98 Earle's Moving and Storage Co.
197 09-0001087 Sq Ft 111 93 5/5/98 Henry S. Miller Co.
198 400029238 Sq Ft 56 87 5/6/98
- ----------------------------------------------------------------------------------------------------------------------------------
199 400029183 Units 20,447 99 3/4/98
200 400029194 Sq Ft 23 94 3/31/98 Tops
201 400029160 Sq Ft 52 96 3/4/98 Gold's Gym
202 09-0001084 Units 13,597 95 6/1/98
203 400029204 Sq Ft 88 95 3/4/98 Frugatti's Wood Fried Pizza
- ----------------------------------------------------------------------------------------------------------------------------------
204 400029148 Sq Ft 47 76 2/10/98 Office Depot
205 400029216 Sq Ft 50
205a 400029216A Sq Ft 100 3/24/98 Loma, Inc.
205b 400029216B Sq Ft 100 3/24/98 Koala Tee Screen Printing Inc.
205c 400029216C Sq Ft 100 3/24/98 Moy Marketing
- ----------------------------------------------------------------------------------------------------------------------------------
205d 400029216D Sq Ft 100 3/24/98 Heartland Brokerage
206 400029208 Units 22,815 93 2/23/98
207 400029162 Sq Ft 56 100 1/8/98 John Tyler Community College
208 R0254 Sq Ft 21 100 5/20/98 Ames
209 400028269 Units 38,232 100 2/19/98
- ----------------------------------------------------------------------------------------------------------------------------------
210 400029309 Sq Ft 127 100 8/3/98 Stop N Shop
211 L0200 Rooms 125,105 80 5/1/98
212 400029310 Sq Ft 91 97 8/1/98 GSA,DEA
213 09-0001134 Rooms 25,877 74 6/10/98
214 L0300 Rooms 20,742 50 6/2/98
- ----------------------------------------------------------------------------------------------------------------------------------
215 400029156 Sq Ft 55 100 2/11/98 School Board of Dade Co.
216 400029215 Sq Ft 78
216a 400029215A Sq Ft 100 3/24/98 Bright Beginnings
216b 400029215B Sq Ft 100 3/24/98 Mountain View Academy
216c 400029215C Sq Ft 100 3/24/98 Bright Beginnings
- ----------------------------------------------------------------------------------------------------------------------------------
217 400029211 Sq Ft 22 100 4/16/98 S. S. Kresge Co. (K-Mart)
218 L0184 Rooms 34,483 64 12/31/97
219 09-0001051 Units 16,032 94 3/25/98
220 400030893 Sq Ft 23 100 7/21/98 U.S. Can Company/Phoenix Cont.
221 09-0001088 Rooms 32,727 73 4/16/98
- ----------------------------------------------------------------------------------------------------------------------------------
222 09-0001124 Rooms 19,572 56 5/13/98
223 L0202 Rooms 19,923 67 8/1/97
224 400029294 Sq Ft 34 100 6/1/98 Czarnowski
225 400029196 Sq Ft 66 100 5/7/98 Bally's Fitness Center
226 400028286 Sq Ft 42 91 12/31/97 Food Lion
- ----------------------------------------------------------------------------------------------------------------------------------
227 400029191 Sq Ft 81 100 4/29/98 Staples
228 400029167 Sq Ft 10 100 1/7/98 Comprehensive Auto. Rec. Ser.
229 09-0001132 Rooms 18,551 52 6/1/98
230 MU0036 Sq Ft 45 95 9/1/98 Billiard City
231 09-0001112 Sq Ft 91 100 6/5/98 T.R.M.G., Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
232 R0807 Sq Ft 172 100 7/9/98 Eckerd Corporation
233 400029258 Sq Ft 292 100 4/14/98 Great Clips
234 09-0001081 Rooms 18,157 52 2/24/98
235 09-0001061 Sq Ft 161 100 3/16/98 Rite Aid
236 R0480 Sq Ft 49 100 6/18/98 Best Buy Co., Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
237 I0099 Sq Ft 31 100 6/10/98 Gallus, Inc.
238 400031123 Units 13,826 85 7/20/98
239 09-0001070 Units 15,486 93 5/18/98
240 09-0001074 Rooms 31,982 69 2/17/98
241 09-0001039 Sq Ft 156 100 3/2/98 Rite Aid
- ----------------------------------------------------------------------------------------------------------------------------------
242 09-0001096 Rooms 15,697 60 12/31/97
243 400029185 Units 23,059 93 2/17/98
244 400030925 Sq Ft 50 97 8/1/98 El Torito Sports Pub & Cantina
245 M0264 Units 24,204 97 4/28/98
246 09-0001083 Rooms 25,301 56 4/16/98
- ----------------------------------------------------------------------------------------------------------------------------------
247 400029233 Sq Ft 20 79 4/29/98 Lacks Furniture
248 09-0001071 Rooms 30,755 66 2/17/98
249 09-0001079 Rooms 28,189 65 5/1/98
250 09-0001072 Sq Ft 21 99 4/9/98 Trinity Church
251 09-0001119 Rooms 12,646 45 4/10/98
- ----------------------------------------------------------------------------------------------------------------------------------
252 400029188 Units 39,456 100 2/9/98
253 09-0001080 Rooms 32,187 58 2/17/98
254 400029140 Sq Ft 122 89 12/22/97 Boot Country, USA
255 400029248 Rooms 34,812 76 2/28/98
256 R0633 Sq Ft 35 100 7/8/98 Piggly Wiggly Carolina Co.
- ----------------------------------------------------------------------------------------------------------------------------------
257 400029206 Sq Ft 27 100 3/4/98 Plastics Technologies
258 400029311 Sq Ft 49 87 6/9/98 Calvary Chapel of Boynton
259 400029174 Sq Ft 54 92 3/24/98 Clough Harbour
260 09-0001059 Rooms 36,222 79 3/20/98
261 09-0001034 Sq Ft 33 100 3/31/98 Vitro Packaging Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
262 09-0001046 Sq Ft 140 100 6/3/98 Rite Aid
263 09-0001085 Sq Ft 99 98 7/28/98 Goyner
264 09-0001054 Rooms 37,560 80 12/31/97
265 400029168 Units 11,391 92 1/23/98
266 09-0001137 Rooms 12,169 52 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
267 09-0001095 Sq Ft 41 100 6/25/98 Muse Technologies Inc.
268 400029182 Units 22,637 92 3/18/98
269 07-0000000 Sq Ft 67 100 4/21/98 Sangera Autohaus
270 400029228 Sq Ft 221 100 3/23/98 Cliff Phelps
271 400029155 Sq Ft 54 100 1/23/98 Catolog Clothing
- ----------------------------------------------------------------------------------------------------------------------------------
272 09-0001032 Sq Ft 146 100 4/9/98 CVS Drug Store
273 400029150 Sq Ft 49 100 12/9/97 U.S. Customs
274 R0497 Sq Ft 82 100 7/1/98 Movie Gallery
275 400029290 Sq Ft 50 100 6/1/98 Weichert Co. of Virginia
276 R0412 Sq Ft 25 97 2/25/98 Geyer's Supermarket
- ----------------------------------------------------------------------------------------------------------------------------------
277 09-0001093 Rooms 14,129 51 4/4/98
278 09-0001118 Rooms 28,528 65 4/16/98
279 09-0001097 Rooms 33,551 69 4/15/98
280 400029180 Sq Ft 79 100 1/20/98 Arhaus Furniture
281 400030934 Sq Ft 56 90 8/11/98 Sinai Hospital of Detroit
- ----------------------------------------------------------------------------------------------------------------------------------
282 09-0001091 Sq Ft 165 100 6/1/98 Noah's Bagels
283 09-0001147 Rooms 24,061 80 4/9/98
284 400030871 Sq Ft 62 100 6/19/98 Rothwells
285 09-0001073 Sq Ft 21 85 4/30/98 Neighborhood Thrifty
286 400029297 Sq Ft 57 100 6/16/98 Ferguson Enterprises, Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
287 O0348 Sq Ft 99 100 6/18/98 New England Life Insurance Co.
288 09-0001105 Rooms 28,069 70 4/23/98
289 O0253 Sq Ft 73 100 6/9/98 Erudite Software, Inc.
290 09-0001060 Rooms 27,946 50 3/19/98
291 M0262 Units 34,800 97 3/1/98
- ----------------------------------------------------------------------------------------------------------------------------------
292 M0220 Units 32,194 100 5/28/98
293 M0290 Units 27,488 96 2/1/98
294 I0074 Sq Ft 35 100 5/13/98 Texas Worker's Comp.Commission
295 09-0001141 Rooms 27,033 62 6/10/98
296 400029235 Sq Ft 45 100 4/14/98 Dr. Bodden
- ----------------------------------------------------------------------------------------------------------------------------------
297 09-0001120 Rooms 29,167 66 4/9/98
298 09-0001057 Sq Ft 118 100 6/22/98 CVS Drug Store
299 400029126 Sq Ft 44 86 2/13/98 Quick Stop
300 09-0001058 Rooms 22,704 87 2/28/98
301 09-0001094 Sq Ft 50 100 8/10/97 Office Max
- ----------------------------------------------------------------------------------------------------------------------------------
302 O0541 Sq Ft 53 100 8/10/98 FBD Consulting, Inc.
303 R0887 Sq Ft 18 100 9/4/98 Vintage Sport Plaques
304 400029253 Sq Ft 54 96 6/4/98 Hospice Home Foundation, Inc.
305 400030869 Units 10,362 96 6/30/98
306 400029304 Sq Ft 48 100 6/22/98 Hart Hotels
- ----------------------------------------------------------------------------------------------------------------------------------
307 09-0001075 Units 22,125 94 6/1/98
308 400029210 Sq Ft 44 100 4/30/98 Wm. Michaels Ltd.
309 M0288 Units 21,783 96 4/28/98
310 M0289 Units 25,534 100 4/28/98
311 09-0001069 Rooms 23,689 64 2/24/98
- ----------------------------------------------------------------------------------------------------------------------------------
312 M0364 Units 39,969 96 7/31/98
313 400030870 Units 21,398 100 6/30/98
314 400029291 Sq Ft 41 84 5/18/98 LaStrada Rest.
315 09-0001077 Rooms 6,542 38 4/21/98
316 R0634 Sq Ft 34 100 7/8/98 Piggly Wiggly Carolina Co.
- ----------------------------------------------------------------------------------------------------------------------------------
317 09-0001035 Units 27,739 99 1/20/98
318 M0172 Units 51,818 100 4/8/98
319 MU0114 Sq Ft 14 100 9/4/98 Tribocor Technology
320 09-0001036 Units 30,935 100 1/20/98
321 R0886 Sq Ft 42 89 9/1/98 National Convience Stores
- ----------------------------------------------------------------------------------------------------------------------------------
322 400029246 Sq Ft 146 100 5/5/98 Pizza Hut of America
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LARGEST LARGEST LARGEST
CONTROL LOAN TENANT TENANT % OF TENANT 1996 1996 1997
NUMBER NUMBER LEASED SF TOTAL NSF LEASE EXPIRATION NOI NCF NOI
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 ACS - - $ 54,291,075 $ 23,713,048 $ 57,848,709
1a ACS-A - - 812,033 833,622 884,635
1b ACS-B - - 1,652,237 1,654,753 1,384,863
1c ACS-C - - 577,705 581,901 730,566
1d ACS-D - - 3,937,780 667,706 5,261,012
- -------------------------------------------------------------------------------------------------------------------
1e ACS-E - - 1,948,372 1,958,143 2,081,156
1f ACS-F - - 3,771,139 3,724,775 3,293,369
1g ACS-G - - 2,860,177 2,879,810 2,714,770
1h ACS-H - - 845,220 847,071 924,420
1i ACS-I - - 1,971,378 (16,807,807) 1,341,662
- -------------------------------------------------------------------------------------------------------------------
1j ACS-J - - 124,295 131,047 463,410
1k ACS-K - - 3,152,860 3,153,055 3,321,676
1l ACS-L - - 539,016 558,969 820,331
1m ACS-M - - 81,501 81,750 88,981
1n ACS-N - - 2,497,889 2,503,953 2,499,018
- -------------------------------------------------------------------------------------------------------------------
1o ACS-O - - 4,300,248 4,321,142 4,010,611
1p ACS-P - - 2,327,566 2,329,017 2,401,336
1q ACS-Q - - 239,931 240,239 231,910
1r ACS-R - - 6,033,703 6,039,228 5,747,472
1s ACS-S - - 301,019 301,019 305,070
- -------------------------------------------------------------------------------------------------------------------
1t ACS-T - - 998,371 1,008,971 3,286,192
1u ACS-U - - 1,002,631 1,033,812 1,159,763
1v ACS-V - - 1,851,967 1,853,049 1,596,394
1w ACS-W - - 3,717,465 3,771,361 4,108,791
1x ACS-X - - 46,378 (8,664,622) (24,576)
- -------------------------------------------------------------------------------------------------------------------
1y ACS-Y - - 1,134,434 1,134,434 1,606,218
1z ACS-Z - - 1,430,591 1,431,732 1,114,807
1aa ACS-AA - - 884,105 887,621 1,009,678
1bb ACS-BB - - 2,331,736 2,335,414 2,341,673
1cc ACS-CC - - 2,919,328 2,921,883 3,143,501
- -------------------------------------------------------------------------------------------------------------------
2 AIM-1 - - 12,550,628 9,929,580 15,480,852
2a AIM-1A - - 2,908,022 2,516,604 4,170,028
2b AIM-1B - - 461,027 354,453 562,334
2c AIM-1C - - 614,656 550,783 744,003
2d AIM-1D - - 502,162 396,015 501,175
- -------------------------------------------------------------------------------------------------------------------
2e AIM-1E - - 387,033 287,192 414,440
2f AIM-1F - - 658,153 421,963 917,613
2g AIM-1G - - 859,112 697,771 935,147
2h AIM-1H - - 830,885 696,396 1,035,715
2i AIM-1I - - 798,392 569,420 893,689
- -------------------------------------------------------------------------------------------------------------------
2j AIM-1J - - 1,339,923 1,089,234 1,742,941
2k AIM-1K - - 356,995 295,741 380,834
2l AIM-1L - - 571,799 443,029 631,712
2m AIM-1M - - 1,452,621 882,870 1,639,352
2n AIM-1N - - 436,221 354,482 454,763
- -------------------------------------------------------------------------------------------------------------------
2o AIM-1O - - 373,627 373,627 457,106
3 09-1001006 - - - - -
3a 09-1001006A - - - - -
3b 09-1001006B - - - - -
3c 09-1001006C - - - - -
- -------------------------------------------------------------------------------------------------------------------
3d 09-1001006D - - - - -
3e 09-1001006E - - - - -
3f 09-1001006F - - - - -
3g 09-1001006G - - - - -
3h 09-1001006H - - - - -
- -------------------------------------------------------------------------------------------------------------------
4 SkyII - - 9,452,526 8,723,984 11,028,179
4a SkyIIA 248,402 52.12 9/30/09 7,106,938 6,579,249 7,869,814
4b SkyIIB 25,331 10.05 1/31/00 2,345,588 2,144,735 3,158,365
5 ANADC - - - - -
6 09-0001076 223,251 35.76 10/31/05 3,151,245 3,151,245 3,605,232
- -------------------------------------------------------------------------------------------------------------------
7 09-0001128 8,500 3.53 10/31/99 - - 2,288,626
400029224 2,668,400 2,647,153 2,952,621
8 400029224A 21,000 100.00 6/26/05 1,081,770 1,081,770 1,174,359
9 400029218B 2,950 18.25 12/2/02 470,829 461,097 696,113
10 400029222C 5,000 18.86 12/31/01 453,365 443,166 414,554
- -------------------------------------------------------------------------------------------------------------------
11 400029227D 1,600 12.31 2/28/03 347,457 346,141 384,385
12 400029219E 6,910 45.87 6/30/02 314,979 314,979 283,210
13 09-0001116 - - 3,371,114 3,371,114 3,859,092
400029220 2,408,039 2,363,197 2,622,241
14 400029220A 24,654 90.27 6/26/05 712,781 712,781 695,127
- -------------------------------------------------------------------------------------------------------------------
15 400029221B 10,580 61.23 5/31/01 681,931 658,747 768,170
16 400029226C 12,700 98.83 6/26/05 491,048 488,446 585,679
17 400029223D 5,500 35.48 6/26/05 350,760 348,744 353,646
18 400029225E 7,100 100.00 6/30/04 171,519 154,479 219,619
19 400030965 - - 2,269,421 2,249,996 2,392,288
- -------------------------------------------------------------------------------------------------------------------
20 09-0001168 14,992 4.79 12/31/00 1,784,373 1,784,373 2,572,543
21 09-0001099 - - 5,666,918 5,915,638 6,537,803
22 SP007 - - 3,403,408 3,404,371 3,428,041
23 400029141 1,475,000 73.70 2/28/00 - - 3,304,768
24 400028225 32,958 15.80 1/1/07 1,923,358 1,923,358 2,037,807
- -------------------------------------------------------------------------------------------------------------------
25 09-0001031 48,055 22.77 10/31/99 2,335,843 2,256,381 2,013,355
26 09-0001117 - - 1,926,685 1,926,685 2,158,697
26a 09-0001117A - - 603,187 603,187 663,426
26b 09-0001117B - - 13,720 13,720 226,358
26c 09-0001117C - - 706,421 706,421 781,689
- -------------------------------------------------------------------------------------------------------------------
26d 09-0001117D - - 603,357 603,357 487,224
27 L0137 - - 1,441,667 1,441,667 1,491,667
28 400030913 14,096 51.26 8/31/16 1,858,944 1,858,944 1,858,378
29 09-0001122 103,929 59.31 3/31/11 1,529,049 1,529,049 1,570,410
30 09-0001102 - - - - 1,918,589
- -------------------------------------------------------------------------------------------------------------------
31 400030964 - - 1,296,906 1,265,236 1,764,469
32 400029308 - - 2,432,082 2,432,082 2,442,189
33 400029207 97,018 32.70 4/30/03 1,545,759 1,441,479 1,331,531
34 09-0001115 - - 1,387,552 1,387,552 1,881,944
35 R0421 137,037 47.75 8/30/20 1,566,091 1,566,091 1,575,337
- -------------------------------------------------------------------------------------------------------------------
36 09-0001040 - - 971,943 929,870 1,141,998
36a 09-0001040A 46,713 41.24 7/31/02 - - -
36b 09-0001040B 45,000 48.52 5/31/99 - - -
36c 09-0001040C 30,250 33.59 5/31/99 - - -
37 M0514 - - 1,176,816 1,092,518 1,227,262
- -------------------------------------------------------------------------------------------------------------------
38 400030914 431,250 100.00 6/18/13 - - -
39 O0179 49,303 100.00 10/31/11 - - 9,646
40 400028275 - - 997,563 878,111 1,081,583
40a 400028275A 65,930 46.92 1/31/09 - - -
40b 400028275B 33,630 31.76 2/28/04 - - -
- -------------------------------------------------------------------------------------------------------------------
41 09-0001037 48,768 19.38 3/1/03 1,644,972 1,632,511 1,740,153
42 09-0001100 - - 4,922,565 5,207,767 3,942,816
43 09-0001101 - - 1,424,009 1,424,009 2,063,826
44 09-0001123 - - 757,326 757,326 1,012,186
45 09-0001042 - - 1,112,297 1,009,938 1,204,943
- -------------------------------------------------------------------------------------------------------------------
46 O0311 9,551 5.36 10/1/02 1,310,383 1,304,262 1,405,509
47 O0320 - - - - 2,669,072
48 M0171 - - 758,284 758,284 821,720
49 R0280 169,896 96.86 8/28/19 - - -
50 400029282 16,191 23.90 3/20/09 1,031,432 1,031,432 1,264,287
- -------------------------------------------------------------------------------------------------------------------
51 M0462 - - 1,177,379 1,061,165 1,283,582
52 400030935 34,004 31.75 12/31/00 794,703 770,798 714,366
53 400028228 26,627 18.52 1/31/13 - - 1,268,686
54 L0149 - - 1,077,397 1,077,397 1,342,723
55 O0265 60,000 49.93 10/31/01 1,082,316 886,337 1,555,843
- -------------------------------------------------------------------------------------------------------------------
56 09-0001055 17,519 16.57 10/31/00 630,280 603,754 1,022,181
57 400028277 7,468 9.06 2/28/01 1,101,350 1,101,350 1,423,295
58 09-0001135 - - 1,445,047 1,445,047 1,263,996
59 400030880 - - 1,200,486 1,166,090 1,316,704
59a 400030880A - - 311,706 298,940 313,346
- -------------------------------------------------------------------------------------------------------------------
59b 400030880B - - 123,651 123,651 140,083
59c 400030880C - - 207,681 193,731 203,583
59d 400030880D - - 154,506 154,506 152,676
59e 400030880E - - 246,954 246,954 308,681
59f 400030880F - - 155,988 148,308 198,335
- -------------------------------------------------------------------------------------------------------------------
60 O0090 28,941 20.47 9/20/11 712,753 712,753 930,536
61 09-0001066 - - 45,676 45,676 321,795
62 09-0001041 - - 524,268 524,268 668,321
62a 09-0001041A - - - - -
62b 09-0001041B - - - - -
- -------------------------------------------------------------------------------------------------------------------
62c 09-0001041C - - - - -
63 O0148 24,829 21.38 6/30/00 (33,122) (33,122) 482,468
64 09-0001167 35,231 59.13 6/30/17 - - 816,272
65 R0297 5,800 11.13 2/28/00 818,744 776,944 851,280
66 O0244 79,976 61.64 12/17/05 - - 923,213
- -------------------------------------------------------------------------------------------------------------------
67 400029255 6,125 11.78 3/31/05 841,206 841,206 759,055
68 400029205 - - 855,144 855,144 865,988
69 09-0001136 - - 843,814 843,814 973,089
70 400029172 4,934 10.52 6/30/98 733,126 733,126 873,084
71 R0134 33,218 52.94 9/1/17 - - -
- -------------------------------------------------------------------------------------------------------------------
72 09-0001133 - - 612,948 612,948 668,782
72a 09-0001133A - - 233,010 233,010 227,661
72b 09-0001133B - - 207,991 207,991 233,814
72c 09-0001133C - - 171,947 171,947 207,307
73 09-0001082 - - 471,430 419,230 683,518
- -------------------------------------------------------------------------------------------------------------------
74 400030867 6,600 8.98 5/31/11 709,588 674,126 935,660
75 400030966 - - 784,130 767,812 601,382
76 09-0001065 - - 857,844 737,586 723,724
77 400029184 156,585 100.00 2/5/13 - - -
78 400029251 6,735 11.39 10/31/01 776,500 776,500 798,837
- -------------------------------------------------------------------------------------------------------------------
79 400030922 7,311 19.84 1/31/07 545,855 545,855 644,154
80 R0311 7,500 14.83 1/1/12 506,888 506,888 747,646
81 400029139 - - 434,360 434,360 629,572
82 R0514 22,500 35.80 11/30/01 640,454 617,531 664,433
83 09-0001044 - - - - 802,387
- -------------------------------------------------------------------------------------------------------------------
84 400029161 24,850 27.76 3/31/99 556,795 524,656 889,090
85 400029171 4,739 11.10 12/31/00 630,899 630,899 679,521
86 R0559 112,434 100.00 4/30/19 - - -
87 400029274 25,200 32.55 1/31/09 570,956 570,956 647,702
88 R0463 83,550 47.62 5/30/06 1,106,855 1,017,832 881,344
- -------------------------------------------------------------------------------------------------------------------
89 400029257 - - 435,638 391,698 540,005
90 400029169 - - 447,840 379,051 580,056
91 400031048 - - 344,500 344,500 444,302
92 400029237 - - 517,638 517,638 557,536
93 400029202 - - 207,157 207,157 452,558
- -------------------------------------------------------------------------------------------------------------------
94 O0359 28,048 69.82 6/1/13 - - -
95 M0330 - - 570,103 502,030 640,979
95a M0330A - - - - -
95b M0330B - - - - -
96 R0464 82,855 68.93 3/16/08 604,847 604,847 662,845
- -------------------------------------------------------------------------------------------------------------------
97 09-0001063 38,067 54.30 7/31/07 556,590 548,428 779,030
98 400029262 16,095 10.95 6/30/00 276,744 110,977 514,940
99 400029134 18,891 14.77 10/31/99 542,883 542,883 581,083
100 400029200 - - 566,912 566,912 605,540
101 R0533 10,350 20.83 10/25/05 462,908 462,908 557,785
- -------------------------------------------------------------------------------------------------------------------
102 09-0001138 - - 641,860 641,860 764,003
103 400029214 - - 906,709 906,709 927,993
103a 400029214A 6,777 100.00 - - -
103b 400029214B 6,890 100.00 3/31/10 - - -
103c 400029214C 5,936 100.00 - - -
- -------------------------------------------------------------------------------------------------------------------
103d 400029214D 6,730 100.00 - - -
103e 400029214E 8,490 100.00 3/31/10 - - -
103f 400029214F 6,590 100.00 - - -
103g 400029214G 8,358 100.00 3/31/10 - - -
103h 400029214H 6,600 100.00 - - -
- -------------------------------------------------------------------------------------------------------------------
103i 400029214I 8,978 100.00 3/31/10 - - -
104 MH0020 - - 438,650 438,650 520,244
105 400029166 10,736 6.69 5/31/03 750,069 750,069 782,266
106 400029173 - - 559,828 559,828 709,845
106a 400029173A 6,100 25.00 2/1/03 - - -
- -------------------------------------------------------------------------------------------------------------------
106b 400029173B 1,595 21.57 8/31/01 - - -
106c 400029173C 4,417 32.64 9/30/99 - - -
106d 400029173D 10,350 56.48 10/31/05
106e 400029173E 2,038 36.34 2/28/04 - - -
107 09-0001110 169,510 100.00 9/30/12 - - -
- -------------------------------------------------------------------------------------------------------------------
108 R0315 20,000 37.05 10/31/07 - - -
109 400029147 5,507 15.74 12/31/98 521,912 484,318 501,295
110 09-0001160 - - - - 346,129
111 400030896 45,243 48.10 12/31/00 173,469 173,469 195,543
112 400029299 - - 636,106 636,106 687,922
- -------------------------------------------------------------------------------------------------------------------
113 400029232 - - 141,324 141,324 415,960
114 M0415 - - 403,386 403,386 369,350
115 400029306 1,770 2.69 5/31/01 - - 400,378
116 400029252 - - - - 266,844
117 400030886 - - 664,193 664,193 695,190
- -------------------------------------------------------------------------------------------------------------------
117a 400030886A - - - - -
117b 400030886B - - - - -
118 400029217 13,905 56.04 2/28/18 - - -
119 M0429 - - 500,050 448,502 505,895
120 400030875 - - 744,340 693,841 660,436
- -------------------------------------------------------------------------------------------------------------------
121 400029121 86,479 100.00 11/30/13 486,250 486,250 434,507
122 09-0001111 10,187 11.65 10/31/98 389,914 381,972 376,464
123 R0458 12,127 27.97 5/31/02 354,913 354,913 584,483
124 400030876 - - 686,531 640,065 726,925
125 400029129 31,832 54.83 6/9/07 153,712 153,712 308,808
- -------------------------------------------------------------------------------------------------------------------
126 09-0001104 - - - - 641,849
127 09-0001140 - - 808,361 808,361 664,550
128 400028305 28,800 26.09 9/1/98 337,522 337,522 558,572
129 O0422 - - - - 215,739
129a O0422A 28,367 59.35 8/31/08 - - -
- -------------------------------------------------------------------------------------------------------------------
129b O0422B 24,051 80.03 8/31/08 - - -
130 R0304 28,000 41.68 3/16/13 424,933 409,433 440,632
131 400029137 1,000 1.24 12/31/98 492,982 491,949 499,474
132 400030967 - - 492,784 463,568 448,143
133 400029178 - - 443,449 443,449 433,839
- -------------------------------------------------------------------------------------------------------------------
134 400028304 9,996 20.91 5/31/07 516,613 516,613 578,624
135 400029164 94,841 100.00 11/30/18 481,783 481,783 465,871
136 400028210 - - 357,500 357,500 338,441
137 400029181 41,910 81.55 7/31/08 380,450 380,450 406,134
138 400029234 86,459 72.70 11/30/10 588,570 588,570 457,184
- -------------------------------------------------------------------------------------------------------------------
139 09-0001086 34,090 58.80 10/31/02 510,061 510,061 485,960
140 09-0001053 5,420 30.11 4/30/00 444,583 444,583 474,163
141 09-0001064 - - 605,970 605,970 659,876
142 O0259 32,000 100.00 12/31/02 - - 518,400
143 R0743 4,000 13.12 8/31/03 295,907 293,850 445,574
- -------------------------------------------------------------------------------------------------------------------
144 400027540 36,076 46.56 9/30/16 300,439 219,729 -
145 09-0001130 68,337 50.17 11/30/19 578,760 578,760 605,707
146 400029116 31,864 42.86 9/30/17 356,106 356,106 -
147 400029267 22,810 81.00 2/28/13 333,735 333,735 332,304
148 400029190 - - - - 641,131
- -------------------------------------------------------------------------------------------------------------------
149 400029250 - - 305,971 305,971 283,353
149a 400029250A - - - - -
149b 400029250B 10,527 50.44 2/28/05 - - -
150 L0237 - - 489,626 99,334 510,429
151 09-0001114 - - 515,537 515,537 525,220
- -------------------------------------------------------------------------------------------------------------------
152 400029154 86,479 91.53 4/30/16 376,300 376,300 376,391
153 M0263 - - 357,048 322,012 367,458
154 400029143 3,900 12.46 11/30/01 11,141 11,141 249,128
155 400029189 1,630 24.97 1/31/09 356,930 356,930 345,462
156 09-0001163 - - 600,146 600,146 594,035
- -------------------------------------------------------------------------------------------------------------------
157 400031128 - - 302,961 302,961 295,203
158 400029213 6,214 12.33 12/31/02 385,191 385,191 471,222
159 09-0001045 - - - - 374,367
160 400029197 110,000 100.00 7/31/03 - - 467,053
161 09-0001098 - - - - 648,683
- -------------------------------------------------------------------------------------------------------------------
162 L0171 - - 530,502 474,516 657,773
163 09-0001107 - - 313,205 235,546 642,704
164 09-0001056 13,000 28.97 5/31/08 406,344 406,344 384,725
165 M0487 - - 385,753 326,892 396,778
166 400029149 6,795 13.63 5/31/00 314,595 298,264 351,183
- -------------------------------------------------------------------------------------------------------------------
167 O0393 27,073 49.78 2/28/00 293,984 293,984 372,434
168 400029158 - - 440,650 382,589 501,437
169 09-0001062 - - - - 565,227
170 400030890 - - 197,773 195,948 189,287
171 400029300 - - 548,094 548,094 606,830
- -------------------------------------------------------------------------------------------------------------------
172 400027560 - - 301,124 230,539 345,493
173 400029186 - - 194,202 194,202 223,426
173a 400029186A 8,075 100.00 12/31/03 - - -
173b 400029186B 7,000 100.00 4/30/05
173c 400029186C 7,000 100.00 6/30/06
- -------------------------------------------------------------------------------------------------------------------
173d 400029186D 7,000 100.00 12/31/05
173e 400029186E 7,000 100.00 12/31/07 - - -
173f 400029186F 10,000 100.00 12/31/04 - - -
174 M0537 - - 242,502 209,873 250,251
175 09-0001139 - - 410,254 410,254 516,073
- -------------------------------------------------------------------------------------------------------------------
176 400029163 41,500 100.00 6/30/06 174,300 174,300 348,600
177 400029212 26,627 18.52 1/31/13 - - 1,268,686
178 400030868 - - 234,181 234,181 317,153
179 400029209 26,162 43.91 12/31/06 76,319 76,319 343,864
180 09-0001113 - - 463,375 463,375 533,800
- -------------------------------------------------------------------------------------------------------------------
181 400029236 4,106 10.25 10/31/98 337,974 311,026 366,911
182 400029119 5,752 16.45 1/31/06 355,456 355,456 383,296
183 09-0001106 - - 87,000 87,000 300,772
184 400030915 9,459 18.81 10/16/02 - - -
185 09-0001067 - - - - 472,588
- -------------------------------------------------------------------------------------------------------------------
186 400029157 - - 391,854 391,854 397,765
186a 400029157A 22,298 60.05 3/31/10 - - -
186b 400029157B 6,600 100.00 3/31/10
186c 400029157C 8,900 100.00 3/31/10 - - -
187 R0597 20,000 31.40 10/31/06 342,734 342,734 414,102
- -------------------------------------------------------------------------------------------------------------------
188 09-0001142 - - 200,102 200,102 471,084
189 400029187 - - 333,344 333,344 333,976
189a 400029187A 8,075 100.00 12/31/03 - - -
189b 400029187B 10,000 100.00 12/31/04 - - -
189c 400029187C 7,000 100.00 12/31/04 - - -
- -------------------------------------------------------------------------------------------------------------------
189d 400029187D 7,000 100.00 12/31/05 - - -
189e 400029187E 8,075 100.00 12/31/03 - - -
190 M0443 - - 280,126 228,579 266,432
191 400029199 - - 397,442 397,442 440,495
191a 400029199A - - - - -
- -------------------------------------------------------------------------------------------------------------------
191b 400029199B - - - - -
192 400029145 21,080 28.58 10/31/03 328,025 328,025 351,086
193 400029192 - - - - 308,808
193a 400029192A 8,962 56.50 9/30/02 - - -
193b 400029192B 2,500 26.19 5/31/01
- -------------------------------------------------------------------------------------------------------------------
194 400029201 90,000 87.21 1/31/03 394,947 394,947 387,079
195 09-0001038 5,916 14.19 10/31/99 384,432 354,415 333,576
196 400030866 23,000 35.89 5/31/99 315,494 315,494 347,867
197 09-0001087 5,357 25.89 2/28/02 - - -
198 400029238 - - 231,995 231,995 257,246
- -------------------------------------------------------------------------------------------------------------------
199 400029183 - - (157,186) (157,186) (81,750)
200 400029194 53,880 53.25 6/30/05 424,817 422,969 404,050
201 400029160 17,188 38.92 8/31/99 422,224 422,224 409,672
202 09-0001084 - - (81,132) (1,031,097) 222,150
203 400029204 5,550 21.67 5/31/00 319,103 319,103 310,353
- -------------------------------------------------------------------------------------------------------------------
204 400029148 25,000 52.89 11/30/09 281,288 281,288 223,405
205 400029216 - - 135,476 133,729 228,219
205a 400029216A 2,060 100.00 6/13/13 - - -
205b 400029216B 11,760 45.48 10/31/02 - - -
205c 400029216C 2,000 20.00 12/31/00 - - -
- -------------------------------------------------------------------------------------------------------------------
205d 400029216D 4,000 66.67 7/1/99 - - -
206 400029208 - - 250,409 234,620 262,517
207 400029162 27,701 70.35 6/30/05 332,353 332,353 323,227
208 R0254 70,000 68.24 9/30/15 275,005 275,005 272,517
209 400028269 - - - - 260,043
- -------------------------------------------------------------------------------------------------------------------
210 400029309 3,855 22.96 5/31/13 167,499 167,499 171,202
211 L0200 - - 326,311 326,311 373,232
212 400029310 5,245 22.78 12/31/02 169,300 169,300 203,600
213 09-0001134 - - 396,954 396,954 435,917
214 L0300 - - 246,655 246,655 340,064
- --------------------------------------------------------------------------------------------------------------------
215 400029156 37,847 100.00 2/28/03 (22,258) (22,258) (65,292)
216 400029215 - - 354,436 354,436 363,767
216a 400029215A 8,900 100.00 3/31/10 - - -
216b 400029215B 9,000 100.00 11/30/10 - - -
216c 400029215C 8,900 100.00 3/31/10 - - -
- -------------------------------------------------------------------------------------------------------------------
217 400029211 96,268 100.00 11/30/00 350,877 350,877 353,452
218 L0184 - - 202,758 202,758 397,856
219 09-0001051 - - 259,278 259,278 285,722
220 400030893 88,000 100.00 4/30/00 330,850 330,850 320,910
221 09-0001088 - - - - 350,548
- -------------------------------------------------------------------------------------------------------------------
222 09-0001124 - - - - 391,812
223 L0202 - - 314,474 314,474 458,948
224 400029294 53,300 89.88 12/31/00 356,757 356,757 444,156
225 400029196 20,000 66.45 1/31/05 - - 210,633
226 400028286 25,000 53.63 6/30/10 314,364 300,013 309,525
- -------------------------------------------------------------------------------------------------------------------
227 400029191 24,142 100.00 2/28/12 - - -
228 400029167 195,000 100.00 2/29/16 277,005 277,005 378,742
229 09-0001132 - - - - 336,678
230 MU0036 7,500 17.41 10/31/00 310,177 290,021 312,200
231 09-0001112 21,100 100.00 1/11/03 - - 268,620
- -------------------------------------------------------------------------------------------------------------------
232 R0807 10,908 100.00 6/24/18 - - -
233 400029258 1,120 17.90 11/30/01 - - 226,323
234 09-0001081 - - 394,268 394,268 372,949
235 09-0001061 11,282 100.00 7/1/17 - - -
236 R0480 36,416 100.00 8/31/08 199,740 199,740 201,958
- -------------------------------------------------------------------------------------------------------------------
237 I0099 29,000 49.85 7/31/07 - - 257,922
238 400031123 - - 201,856 201,856 145,546
239 09-0001070 - - 165,916 165,916 179,095
240 09-0001074 - - 320,612 320,612 342,043
241 09-0001039 11,282 100.00 7/1/17 - - -
- -------------------------------------------------------------------------------------------------------------------
242 09-0001096 - - 331,254 331,254 384,507
243 400029185 - - 224,363 224,363 236,569
244 400030925 5,130 14.54 8/31/02 224,887 224,887 227,563
245 M0264 - - 218,767 218,767 202,400
246 09-0001083 - - 296,506 296,506 269,079
- -------------------------------------------------------------------------------------------------------------------
247 400029233 50,000 58.21 1/31/06 127,081 127,081 182,293
248 09-0001071 - - 221,978 221,978 262,277
249 09-0001079 - - 260,381 260,381 345,286
250 09-0001072 24,995 31.83 7/31/01 196,252 196,252 239,234
251 09-0001119 - - 347,407 347,407 439,822
- -------------------------------------------------------------------------------------------------------------------
252 400029188 - - 246,585 246,585 244,918
253 09-0001080 - - - - 395,602
254 400029140 4,995 37.28 12/31/05 132,093 132,093 217,275
255 400029248 - - 380,916 380,916 431,152
256 R0633 32,800 71.07 5/31/18 280,736 280,736 261,899
- -------------------------------------------------------------------------------------------------------------------
257 400029206 60,000 100.00 11/30/06 217,773 157,177 244,536
258 400029311 7,320 22.49 1/31/00 92,819 92,819 129,087
259 400029174 4,030 13.74 6/30/99 172,819 172,819 298,039
260 09-0001059 - - 282,901 282,901 300,986
261 09-0001034 12,964 27.00 2/28/02 175,666 173,747 176,784
- -------------------------------------------------------------------------------------------------------------------
262 09-0001046 11,180 100.00 5/31/18 - - -
263 09-0001085 576 3.68 194,927 190,548 203,960
264 09-0001054 - - 324,901 324,901 384,218
265 400029168 - - 185,472 185,472 217,279
266 09-0001137 - - 250,632 250,632 283,334
- -------------------------------------------------------------------------------------------------------------------
267 09-0001095 8,787 23.78 11/30/99 173,695 173,695 200,839
268 400029182 - - 174,745 174,745 178,196
269 07-0000000 19,731 88.67 12/31/13 - - 288,000
270 400029228 3,000 44.44 5/31/05 109,750 109,750 178,994
271 400029155 10,000 36.08 9/30/00 125,461 125,461 153,337
- -------------------------------------------------------------------------------------------------------------------
272 09-0001032 10,125 100.00 1/31/13 - - -
273 400029150 15,000 50.00 9/30/02 277,249 277,249 -
274 R0497 5,294 29.37 9/30/07 - - 247,311
275 400029290 4,558 15.59 10/31/00 214,309 209,779 212,205
276 R0412 20,550 34.83 4/3/99 234,032 234,032 244,734
- -------------------------------------------------------------------------------------------------------------------
277 09-0001093 - - 417,283 417,283 295,444
278 09-0001118 - - - - 278,432
279 09-0001097 - - - - 325,030
280 400029180 10,760 59.27 11/30/03 211,647 211,647 207,951
281 400030934 3,315 13.21 12/31/98 194,506 194,506 219,961
- -------------------------------------------------------------------------------------------------------------------
282 09-0001091 2,400 28.40 11/30/06 208,675 208,675 182,883
283 09-0001147 - - 382,879 382,879 460,314
284 400030871 7,071 31.24 12/31/01 233,076 185,750 305,886
285 09-0001073 14,100 22.03 4/30/03 158,384 158,384 203,076
286 400029297 9,300 38.94 6/30/03 187,441 186,661 194,554
- -------------------------------------------------------------------------------------------------------------------
287 O0348 11,132 81.35 3/1/08 - - -
288 09-0001105 - - 150,914 150,914 256,117
289 O0253 14,084 76.61 10/31/01 - - 215,997
290 09-0001060 - - 248,321 248,321 260,819
291 M0262 - - - - 219,231
- -------------------------------------------------------------------------------------------------------------------
292 M0220 - - 116,146 116,146 154,700
293 M0290 - - 140,758 131,510 140,842
294 I0074 24,546 64.73 12/31/01 163,006 163,006 159,140
295 09-0001141 - - 185,072 185,072 223,980
296 400029235 3,928 14.29 6/30/00 55,696 55,696 179,543
- -------------------------------------------------------------------------------------------------------------------
297 09-0001120 - - 118,860 118,860 195,199
298 09-0001057 10,125 100.00 5/31/18 - - -
299 400029126 5,119 18.93 5/31/01 157,776 147,379 151,770
300 09-0001058 - - - - 362,396
301 09-0001094 23,600 100.00 2/28/13 - - -
- -------------------------------------------------------------------------------------------------------------------
302 O0541 12,855 59.16 6/30/02 158,531 138,924 234,526
303 R0887 28,600 43.82 11/1/00 171,572 171,572 191,582
304 400029253 4,200 20.79 4/15/03 122,145 105,675 137,033
305 400030869 - - 162,119 162,119 168,726
306 400029304 7,450 32.42 12/31/09 177,818 174,797 228,066
- -------------------------------------------------------------------------------------------------------------------
307 09-0001075 - - 122,584 122,584 121,501
308 400029210 3,015 12.73 10/31/00 147,791 147,791 189,104
309 M0288 - - 124,524 116,907 115,823
310 M0289 - - 123,013 116,581 120,677
311 09-0001069 - - 216,827 216,827 211,604
- -------------------------------------------------------------------------------------------------------------------
312 M0364 - - 130,030 130,030 116,926
313 400030870 - - 89,969 89,969 123,586
314 400029291 3,575 17.29 4/30/04 158,044 158,044 138,898
315 09-0001077 - - 123,529 64,397 217,730
316 R0634 23,752 100.00 5/31/18 - - 104,159
- -------------------------------------------------------------------------------------------------------------------
317 09-0001035 - - 89,137 89,137 98,508
318 M0172 - - 58,679 58,679 64,595
319 MU0114 6,400 14.88 1/31/00 70,993 70,993 96,922
320 09-0001036 - - (76,900) (130,716) 44,292
321 R0886 2,600 19.49 6/11/00 69,680 46,589 83,258
- -------------------------------------------------------------------------------------------------------------------
322 400029246 1,200 33.33 7/31/99 81,072 81,072 76,002
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONTROL LOAN 1997 U/W U/W U/W GROUND
NUMBER NUMBER NCF NOI NCF DSCR LEASE FEE OR LEASEHOLD
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 ACS $ 57,983,543 $ 63,739,072 $ 48,889,853 1.94x Both Fee/Lease
1a ACS-A 884,622 717,769 462,849 1.54
1b ACS-B 1,384,838 1,572,949 1,088,267 1.56
1c ACS-C 730,553 920,654 606,267 1.69
1d ACS-D 5,260,102 5,732,398 4,653,746 2.74
- ----------------------------------------------------------------------------------------------------------------------------
1e ACS-E 2,082,353 2,232,830 1,783,553 2.34
1f ACS-F 3,293,331 3,790,690 3,016,924 2.24
1g ACS-G 2,717,717 2,987,507 2,368,940 2.14
1h ACS-H 924,632 977,138 714,605 1.78
1i ACS-I 1,341,624 3,668,373 2,139,954 0.77
- ----------------------------------------------------------------------------------------------------------------------------
1j ACS-J 463,397 517,481 346,861 1.51
1k ACS-K 3,322,013 3,408,998 2,739,870 2.41
1l ACS-L 820,318 981,173 685,951 1.94
1m ACS-M 89,193 104,724 67,936 3.12
1n ACS-N 2,499,005 2,636,161 2,131,188 2.33
- ----------------------------------------------------------------------------------------------------------------------------
1o ACS-O 4,133,316 4,438,522 3,561,526 2.15
1p ACS-P 2,398,989 960,199 680,270 0.69
1q ACS-Q 231,511 258,675 186,202 1.60
1r ACS-R 5,747,447 6,377,451 5,024,753 2.17
1s ACS-S 305,070 210,676 164,781 1.48
- ----------------------------------------------------------------------------------------------------------------------------
1t ACS-T 3,286,179 3,609,453 2,872,681 2.42
1u ACS-U 1,159,738 1,449,970 1,064,918 1.81
1v ACS-V 1,596,553 1,776,277 1,321,472 1.91
1w ACS-W 4,109,811 4,267,672 3,364,696 2.14
1x ACS-X (24,576) 706,346 352,282 0.68
- ----------------------------------------------------------------------------------------------------------------------------
1y ACS-Y 1,606,218 1,234,151 942,005 2.14
1z ACS-Z 1,123,794 1,187,033 973,992 2.01
1aa ACS-AA 1,010,375 1,072,988 833,766 2.54
1bb ACS-BB 2,341,799 2,576,989 2,001,777 2.28
1cc ACS-CC 3,143,621 3,363,825 2,737,821 2.30
- ----------------------------------------------------------------------------------------------------------------------------
2 AIM-1 11,496,771 15,451,370 14,695,605 1.39 Fee
2a AIM-1A 3,778,820 4,458,232 4,353,732 1.54
2b AIM-1B 483,381 558,191 523,941 1.45
2c AIM-1C 690,240 722,023 696,815 1.45
2d AIM-1D 177,262 476,107 440,107 1.10
- ----------------------------------------------------------------------------------------------------------------------------
2e AIM-1E 187,200 408,374 380,549 1.22
2f AIM-1F 467,337 909,990 864,990 1.60
2g AIM-1G 778,907 839,024 757,292 1.32
2h AIM-1H 621,960 1,010,936 968,936 1.39
2i AIM-1I 699,113 887,008 816,008 1.34
- ----------------------------------------------------------------------------------------------------------------------------
2j AIM-1J 1,052,329 1,823,092 1,761,592 1.35
2k AIM-1K 290,537 383,310 353,310 1.61
2l AIM-1L 102,542 629,565 598,065 1.38
2m AIM-1M 1,494,605 1,650,446 1,575,196 1.34
2n AIM-1N 372,762 291,604 236,604 0.73
- ----------------------------------------------------------------------------------------------------------------------------
2o AIM-1O 299,776 403,468 368,468 1.31
3 09-1001006 - 17,083,500 17,000,030 2.06 Both Fee/Lease
3a 09-1001006A - 1,953,000 1,943,183 1.98
3b 09-1001006B - 2,992,500 2,979,518 1.97
3c 09-1001006C - 2,772,000 2,758,385 2.18
- ----------------------------------------------------------------------------------------------------------------------------
3d 09-1001006D - 2,656,500 2,643,347 1.97
3e 09-1001006E - 1,869,000 1,862,958 2.05
3f 09-1001006F - 1,774,500 1,764,900 2.08
3g 09-1001006G - 1,354,500 1,344,674 2.12
3h 09-1001006H - 1,711,500 1,703,065 2.18
- ----------------------------------------------------------------------------------------------------------------------------
4 SkyII 9,923,035 10,860,380 9,951,015 1.40 Fee
4a SkyIIA 7,452,802 7,477,587 6,888,130 1.23
4b SkyIIB 2,470,233 3,382,792 3,062,885 2.04
5 ANADC - 6,398,365 5,000,365 1.55 Fee
6 09-0001076 3,605,232 4,029,777 3,780,131 1.40 Fee
- ----------------------------------------------------------------------------------------------------------------------------
7 09-0001128 2,229,392 2,953,433 2,810,897 1.32 Fee
400029224 2,941,169 2,802,818 2,707,201 1.28 Fee
8 400029224A 1,174,359 1,062,041 1,036,003 1.25
9 400029218B 690,961 654,475 635,197 1.30
10 400029222C 408,860 431,053 413,263 1.28
- ----------------------------------------------------------------------------------------------------------------------------
11 400029227D 383,779 365,754 349,870 1.29
12 400029219E 283,210 289,495 272,868 1.29
13 09-0001116 3,859,092 3,812,825 3,233,420 1.51 Fee
400029220 2,600,517 2,580,261 2,504,126 1.34 Fee
14 400029220A 695,127 756,276 735,911 1.29
- ----------------------------------------------------------------------------------------------------------------------------
15 400029221B 756,578 784,837 775,764 1.50
16 400029226C 583,075 492,836 478,097 1.27
17 400029223D 352,638 359,460 337,003 1.25
18 400029225E 213,099 186,852 177,351 1.27
19 400030965 2,331,865 2,979,914 2,545,470 1.25 Fee
- ----------------------------------------------------------------------------------------------------------------------------
20 09-0001168 2,074,241 3,078,042 2,605,088 1.54 Fee
21 09-0001099 6,734,803 6,415,096 6,361,096 2.85 Fee
22 SP007 3,631,692 3,210,041 3,458,241 1.81 Yes Both Fee/Lease
23 400029141 3,304,768 3,718,392 2,678,376 1.38 Fee
24 400028225 2,037,807 2,136,580 2,011,729 1.17 Yes Leasehold
- ----------------------------------------------------------------------------------------------------------------------------
25 09-0001031 1,948,582 2,157,583 2,033,932 1.40 Fee
26 09-0001117 2,158,697 2,369,957 2,314,157 1.53 Yes Both Fee/Lease
26a 09-0001117A 663,426 698,266 682,066 0.00 Yes
26b 09-0001117B 226,358 273,068 265,268 0.00 Yes
26c 09-0001117C 781,689 795,153 779,253 0.00 Yes
- ----------------------------------------------------------------------------------------------------------------------------
26d 09-0001117D 487,224 603,470 587,570 0.00 Yes
27 L0137 1,491,667 1,550,000 1,550,000 1.45 Fee
28 400030913 1,858,378 1,651,857 1,588,282 1.35 Yes Both Fee/Lease
29 09-0001122 1,547,033 1,687,855 1,556,746 1.34 Fee
30 09-0001102 1,918,589 1,893,734 1,722,093 1.45 Fee
- ----------------------------------------------------------------------------------------------------------------------------
31 400030964 1,726,542 1,845,152 1,550,857 1.25 Fee
32 400029308 2,442,189 2,364,433 2,131,092 1.95 Yes Leasehold
33 400029207 1,162,349 1,606,915 1,393,459 1.32 Fee
34 09-0001115 1,731,286 1,742,766 1,593,943 1.44 Fee
35 R0421 1,575,337 1,326,500 1,248,850 1.18 Fee
- ----------------------------------------------------------------------------------------------------------------------------
36 09-0001040 359,437 1,652,620 1,320,583 1.30 Fee
36a 09-0001040A - - - 0.00
36b 09-0001040B - - - 0.00
36c 09-0001040C - - - 0.00
37 M0514 1,154,761 1,311,939 1,259,836 1.42 Fee
- ----------------------------------------------------------------------------------------------------------------------------
38 400030914 - 1,311,431 1,182,084 1.31 Fee
39 O0179 9,646 1,130,059 1,109,060 1.26 Fee
40 400028275 1,002,943 1,182,555 1,050,628 1.21 Fee
40a 400028275A - - - 0.00
40b 400028275B - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
41 09-0001037 1,661,799 1,589,133 1,320,264 1.59 Yes Both Fee/Lease
42 09-0001100 4,216,816 2,339,460 2,401,460 2.26 Fee
43 09-0001101 2,063,826 1,753,196 1,531,553 1.70 Fee
44 09-0001123 1,012,186 1,096,299 1,042,299 1.31 Fee
45 09-0001042 1,043,057 1,232,905 1,152,535 1.48 Fee
- ----------------------------------------------------------------------------------------------------------------------------
46 O0311 1,380,265 1,477,768 1,218,992 1.58 Fee
47 O0320 2,669,072 1,871,633 1,837,883 2.29 Fee
48 M0171 821,720 975,265 918,305 1.17 Fee
49 R0280 - 1,172,354 1,140,481 1.32 Fee
50 400029282 1,264,287 1,071,002 1,019,962 1.41 Yes Leasehold
- ----------------------------------------------------------------------------------------------------------------------------
51 M0462 1,163,738 1,256,447 1,133,567 1.66 Fee
52 400030935 701,395 898,586 799,553 1.13 Yes Both Fee/Lease
53 400028228 1,268,686 1,462,907 1,399,474 1.34 Fee
54 L0149 1,173,523 1,226,448 993,605 1.41 Fee
55 O0265 1,555,843 1,494,909 1,279,737 2.14 Fee
- ----------------------------------------------------------------------------------------------------------------------------
56 09-0001055 988,992 1,045,299 928,470 1.40 Fee
57 400028277 1,382,128 958,703 879,087 1.36 Fee
58 09-0001135 1,263,996 1,216,371 1,064,516 1.59 Fee
59 400030880 1,259,629 1,139,853 976,164 1.41 Fee
59a 400030880A 277,065 295,448 259,913 0.00
- ----------------------------------------------------------------------------------------------------------------------------
59b 400030880B 119,289 137,051 117,444 0.00
59c 400030880C 203,583 193,743 159,260 0.00
59d 400030880D 152,676 152,603 130,669 0.00
59e 400030880E 308,681 217,925 189,928 0.00
59f 400030880F 198,335 143,083 118,950 0.00
- ----------------------------------------------------------------------------------------------------------------------------
60 O0090 930,536 946,558 878,620 1.40 Fee
61 09-0001066 321,795 1,013,990 988,990 1.56 Fee
62 09-0001041 668,321 841,373 810,673 1.47 Fee
62a 09-0001041A - - - 0.00
62b 09-0001041B - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
62c 09-0001041C - - - 0.00
63 O0148 424,468 1,145,522 956,689 1.76 Fee
64 09-0001167 816,272 777,039 739,290 1.29 Fee
65 R0297 851,280 878,761 806,731 1.50 Fee
66 O0244 866,019 787,155 708,340 1.33 Fee
- ----------------------------------------------------------------------------------------------------------------------------
67 400029255 742,267 726,517 684,429 1.27 Fee
68 400029205 865,988 836,777 672,944 1.36 Fee
69 09-0001136 973,089 898,779 781,692 1.51 Yes Leasehold
70 400029172 873,084 665,312 599,049 1.27 Fee
71 R0134 - 684,404 655,706 1.23 Fee
- ----------------------------------------------------------------------------------------------------------------------------
72 09-0001133 668,782 777,325 735,142 1.55 Fee
72a 09-0001133A 227,661 284,846 269,082 0.00
72b 09-0001133B 233,814 276,532 261,742 0.00
72c 09-0001133C 207,307 215,947 204,318 0.00
73 09-0001082 631,318 799,935 712,935 1.64 Fee
- ----------------------------------------------------------------------------------------------------------------------------
74 400030867 897,520 804,078 730,037 1.54 Fee
75 400030966 572,048 830,394 645,024 1.28 Fee
76 09-0001065 607,664 705,377 557,903 1.17 Fee
77 400029184 - 871,970 801,194 1.55 Fee
78 400029251 798,837 720,691 626,447 1.47 Yes Both Fee/Lease
- ----------------------------------------------------------------------------------------------------------------------------
79 400030922 624,736 601,186 544,400 1.29 Yes Both Fee/Lease
80 R0311 716,399 700,939 662,818 1.52 Fee
81 400029139 629,572 598,268 567,731 1.32 Yes Leasehold
82 R0514 644,618 627,130 599,367 1.45 Fee
83 09-0001044 802,387 681,589 640,489 1.46 Fee
- ----------------------------------------------------------------------------------------------------------------------------
84 400029161 846,322 680,417 532,628 1.32 Fee
85 400029171 679,521 634,410 601,335 1.50 Fee
86 R0559 - 633,724 608,773 1.31 Fee
87 400029274 647,702 604,642 579,656 1.48 Fee
88 R0463 670,443 859,084 718,087 1.84 Fee
- ----------------------------------------------------------------------------------------------------------------------------
89 400029257 540,005 529,055 493,550 1.27 Fee
90 400029169 545,316 558,232 482,232 1.27 Fee
91 400031048 444,302 481,981 443,231 1.20 Fee
92 400029237 557,536 572,242 563,437 1.41 Fee
93 400029202 452,558 622,483 549,483 1.49 Fee
- ----------------------------------------------------------------------------------------------------------------------------
94 O0359 - 556,378 529,163 1.46 Fee
95 M0330 487,399 625,717 556,372 1.55 Fee
95a M0330A - - - 0.00
95b M0330B - - - 0.00
96 R0464 357,464 625,958 568,559 1.51 Fee
- ----------------------------------------------------------------------------------------------------------------------------
97 09-0001063 585,451 601,963 491,358 1.35 Fee
98 400029262 362,508 853,898 656,664 1.65 Fee
99 400029134 581,083 593,374 495,526 1.35 Fee
100 400029200 605,540 574,666 562,166 1.13 Yes Leasehold
101 R0533 557,785 548,183 514,731 1.23 Fee
- ----------------------------------------------------------------------------------------------------------------------------
102 09-0001138 764,003 727,159 635,565 1.64 Fee
103 400029214 927,993 856,925 856,925 1.98 Fee
103a 400029214A - - - 0.00
103b 400029214B - - - 0.00
103c 400029214C - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
103d 400029214D - - - 0.00
103e 400029214E - - - 0.00
103f 400029214F - - - 0.00
103g 400029214G - - - 0.00
103h 400029214H - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
103i 400029214I - - - 0.00
104 MH0020 520,244 545,181 522,481 1.48 Fee
105 400029166 782,266 663,393 532,531 1.40 Fee
106 400029173 709,845 576,539 500,282 1.32 Fee
106a 400029173A - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
106b 400029173B - - - 0.00
106c 400029173C - - - 0.00
106d 400029173D 0.00
106e 400029173E - - - 0.00
107 09-0001110 - 557,463 506,531 1.37 Fee
- ----------------------------------------------------------------------------------------------------------------------------
108 R0315 - 475,768 435,594 1.30 Fee
109 400029147 488,314 506,398 455,075 1.31 Fee
110 09-0001160 346,129 398,608 387,608 1.25 Fee
111 400030896 195,543 489,136 436,117 1.27 Fee
112 400029299 687,922 600,616 568,071 1.81 Fee
- ----------------------------------------------------------------------------------------------------------------------------
113 400029232 415,960 436,006 412,006 1.27 Fee
114 M0415 369,350 474,431 449,055 1.38 Fee
115 400029306 400,378 439,517 407,917 1.32 Fee
116 400029252 266,844 468,377 441,877 1.37 Fee
117 400030886 695,190 629,136 543,449 1.56 Yes Both Fee/Lease
- ----------------------------------------------------------------------------------------------------------------------------
117a 400030886A - - - 0.00 Yes
117b 400030886B - - - 0.00 Yes
118 400029217 - 442,329 435,709 1.19 Fee
119 M0429 461,555 490,902 436,815 1.21 Fee
120 400030875 612,152 580,526 500,052 1.50 Fee
- ----------------------------------------------------------------------------------------------------------------------------
121 400029121 434,507 464,988 442,503 1.40 Fee
122 09-0001111 368,129 436,683 402,811 1.34 Fee
123 R0458 584,483 499,853 447,195 1.28 Fee
124 400030876 675,734 643,184 557,866 1.69 Fee
125 400029129 308,808 539,563 481,508 1.64 Fee
- ----------------------------------------------------------------------------------------------------------------------------
126 09-0001104 641,849 633,936 559,083 1.56 Fee
127 09-0001140 664,550 592,360 511,298 1.43 Fee
128 400028305 558,572 504,535 467,499 1.60 Fee
129 O0422 215,739 474,385 434,129 1.50 Fee
129a O0422A - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
129b O0422B - - - 0.00
130 R0304 440,632 440,579 418,557 1.43 Fee
131 400029137 483,191 464,621 426,871 1.40 Fee
132 400030967 366,143 488,094 433,633 1.33 Fee
133 400029178 433,839 406,856 394,356 1.39 Fee
- ----------------------------------------------------------------------------------------------------------------------------
134 400028304 576,916 491,632 438,468 1.48 Fee
135 400029164 465,871 459,019 444,793 1.39 Fee
136 400028210 101,731 490,260 430,260 1.23 Fee
137 400029181 405,511 389,327 378,358 1.27 Fee
138 400029234 457,184 435,443 403,174 1.38 Fee
- ----------------------------------------------------------------------------------------------------------------------------
139 09-0001086 485,960 489,197 420,173 1.53 Fee
140 09-0001053 474,163 443,555 393,061 1.38 Fee
141 09-0001064 659,876 626,578 544,684 1.59 Fee
142 O0259 518,400 456,914 406,738 1.48 Fee
143 R0743 439,696 435,544 402,038 1.35 Fee
- ----------------------------------------------------------------------------------------------------------------------------
144 400027540 - 385,925 356,875 1.18 Fee
145 09-0001130 605,707 395,682 352,605 1.28 Fee
146 400029116 - 417,925 379,740 1.21 Fee
147 400029267 332,304 383,698 377,666 1.10 Fee
148 400029190 641,131 459,705 396,853 1.35 Fee
- ----------------------------------------------------------------------------------------------------------------------------
149 400029250 260,204 384,433 355,086 1.27 Fee
149a 400029250A - - - 0.00
149b 400029250B - - - 0.00
150 L0237 477,338 527,947 402,608 1.48 Yes Both Fee/Lease
151 09-0001114 525,220 523,608 422,983 1.55 Fee
- ----------------------------------------------------------------------------------------------------------------------------
152 400029154 376,391 352,379 345,576 1.34 Fee
153 M0263 367,458 369,073 345,238 1.37 Fee
154 400029143 249,128 334,590 312,616 1.28 Fee
155 400029189 311,483 353,049 340,713 1.40 Fee
156 09-0001163 594,035 587,678 552,528 2.52 Fee
- ----------------------------------------------------------------------------------------------------------------------------
157 400031128 295,203 306,874 300,586 1.28 Fee
158 400029213 457,866 422,326 354,500 1.41 Fee
159 09-0001045 368,734 396,982 368,822 1.50 Fee
160 400029197 467,053 379,990 346,490 1.32 Fee
161 09-0001098 592,025 639,189 567,906 1.92 Fee
- ----------------------------------------------------------------------------------------------------------------------------
162 L0171 601,635 466,909 397,891 1.42 Fee
163 09-0001107 458,912 508,001 482,001 1.87 Fee
164 09-0001056 297,882 398,579 379,561 1.53 Fee
165 M0487 368,106 388,637 362,637 1.32 Fee
166 400029149 339,183 421,523 365,786 1.52 Fee
- ----------------------------------------------------------------------------------------------------------------------------
167 O0393 372,434 398,966 334,058 1.40 Fee
168 400029158 375,223 409,483 344,425 1.35 Fee
169 09-0001062 565,227 456,688 405,225 1.46 Fee
170 400030890 187,869 358,135 342,576 1.39 Fee
171 400029300 606,830 536,901 476,259 1.98 Fee
- ----------------------------------------------------------------------------------------------------------------------------
172 400027560 279,764 453,893 373,393 1.30 Fee
173 400029186 223,426 342,124 320,908 1.32 Fee
173a 400029186A - - - 0.00
173b 400029186B 0.00
173c 400029186C 0.00
- ----------------------------------------------------------------------------------------------------------------------------
173d 400029186D 0.00
173e 400029186E - - - 0.00
173f 400029186F - - - 0.00
174 M0537 195,512 325,465 297,140 1.39 Yes Both Fee/Lease
175 09-0001139 447,169 551,299 478,555 1.79 Fee
- ----------------------------------------------------------------------------------------------------------------------------
176 400029163 348,600 323,117 296,972 1.32 Yes Leasehold
177 400029212 1,268,686 1,462,907 1,399,474 1.34 Fee
178 400030868 317,153 317,796 287,796 1.35 Fee
179 400029209 343,864 378,880 331,265 1.43 Fee
180 09-0001113 533,800 445,248 382,335 1.47 Fee
- ----------------------------------------------------------------------------------------------------------------------------
181 400029236 338,382 352,034 309,852 1.34 Fee
182 400029119 378,179 345,565 317,149 1.51 Fee
183 09-0001106 300,772 341,209 318,209 1.38 Fee
184 400030915 - 333,461 290,006 1.41 Fee
185 09-0001067 472,588 460,300 410,613 1.66 Fee
- ----------------------------------------------------------------------------------------------------------------------------
186 400029157 397,765 345,506 311,270 1.35 Fee
186a 400029157A - - - 0.00
186b 400029157B 0.00
186c 400029157C - - - 0.00
187 R0597 414,102 372,426 335,023 1.65 Fee
- ----------------------------------------------------------------------------------------------------------------------------
188 09-0001142 471,084 433,744 380,763 1.61 Fee
189 400029187 333,976 308,965 290,477 1.36 Fee
189a 400029187A - - - 0.00
189b 400029187B - - - 0.00
189c 400029187C - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
189d 400029187D - - - 0.00
189e 400029187E - - - 0.00
190 M0443 220,990 302,879 274,079 1.46 Fee
191 400029199 440,495 376,085 336,249 1.44 Fee
191a 400029199A - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
191b 400029199B - - - 0.00
192 400029145 351,086 326,764 278,869 1.35 Fee
193 400029192 289,435 282,972 258,711 1.34 Fee
193a 400029192A - - - 0.00
193b 400029192B 0.00
- ----------------------------------------------------------------------------------------------------------------------------
194 400029201 387,079 313,080 279,708 1.31 Fee
195 09-0001038 330,107 341,662 298,296 1.54 Fee
196 400030866 347,867 338,160 327,267 1.65 Fee
197 09-0001087 - 262,757 239,686 1.28 Fee
198 400029238 257,246 278,313 272,133 1.37 Fee
- ----------------------------------------------------------------------------------------------------------------------------
199 400029183 (81,750) 266,258 249,458 1.35 Fee
200 400029194 401,664 295,173 250,911 1.27 Fee
201 400029160 409,672 341,854 277,118 1.39 Yes Both Fee/Lease
202 09-0001084 222,150 286,251 248,676 1.32 Fee
203 400029204 310,353 277,075 257,863 1.35 Fee
- ----------------------------------------------------------------------------------------------------------------------------
204 400029148 61,686 275,679 262,742 1.45 Fee
205 400029216 163,219 269,473 241,036 1.26 Fee
205a 400029216A - - - 0.00
205b 400029216B - - - 0.00
205c 400029216C - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
205d 400029216D - - - 0.00
206 400029208 222,745 255,015 231,015 1.32 Fee
207 400029162 323,227 290,631 239,168 1.30 Fee
208 R0254 257,903 283,266 248,326 1.40 Fee
209 400028269 260,043 258,037 237,653 1.36 Fee
- ----------------------------------------------------------------------------------------------------------------------------
210 400029309 171,202 285,504 265,378 1.31 Fee
211 L0200 373,232 382,611 329,116 1.67 Fee
212 400029310 203,600 251,600 235,700 1.30 Fee
213 09-0001134 388,408 403,382 355,873 1.74 Fee
214 L0300 340,064 369,434 294,801 1.50 Fee
- ----------------------------------------------------------------------------------------------------------------------------
215 400029156 (65,292) 226,518 214,285 1.25 Fee
216 400029215 363,767 332,898 332,898 1.61 Fee
216a 400029215A - - - 0.00
216b 400029215B - - - 0.00
216c 400029215C - - - 0.00
- ----------------------------------------------------------------------------------------------------------------------------
217 400029211 353,452 313,388 256,265 1.36 Fee
218 L0184 397,856 279,931 241,681 1.29 Fee
219 09-0001051 285,722 268,036 231,587 1.38 Fee
220 400030893 320,910 281,924 213,161 1.32 Fee
221 09-0001088 320,728 323,394 285,956 1.44 Fee
- ----------------------------------------------------------------------------------------------------------------------------
222 09-0001124 391,812 321,513 261,274 1.33 Fee
223 L0202 458,948 374,836 290,108 1.58 Fee
224 400029294 444,156 379,752 320,461 1.71 Fee
225 400029196 210,633 244,516 225,797 1.28 Fee
226 400028286 309,525 250,767 233,916 1.24 Fee
- ----------------------------------------------------------------------------------------------------------------------------
227 400029191 - 220,687 217,066 1.30 Fee
228 400029167 378,742 388,200 368,700 1.66 Fee
229 09-0001132 336,678 337,162 293,069 1.68 Fee
230 MU0036 297,533 308,178 274,628 1.66 Fee
231 09-0001112 268,620 245,711 233,315 1.48 Fee
- ----------------------------------------------------------------------------------------------------------------------------
232 R0807 - 182,588 182,588 1.06 Fee
233 400029258 226,323 201,679 195,886 1.28 Fee
234 09-0001081 372,949 335,001 300,888 1.66 Fee
235 09-0001061 - 177,993 174,608 1.00 Fee
236 R0480 201,958 223,212 200,648 1.32 Fee
- ----------------------------------------------------------------------------------------------------------------------------
237 I0099 257,922 232,232 205,193 1.40 Fee
238 400031123 145,546 215,799 183,299 1.28 Fee
239 09-0001070 179,095 216,132 187,132 1.28 Fee
240 09-0001074 342,043 308,780 275,206 1.53 Fee
241 09-0001039 - 172,304 170,612 1.00 Fee
- ----------------------------------------------------------------------------------------------------------------------------
242 09-0001096 384,507 355,300 310,028 1.84 Fee
243 400029185 236,569 248,814 231,334 1.62 Fee
244 400030925 227,563 226,672 195,730 1.33 Fee
245 M0264 202,400 232,455 215,535 1.51 Fee
246 09-0001083 269,079 260,680 224,495 1.45 Fee
- ----------------------------------------------------------------------------------------------------------------------------
247 400029233 182,293 238,970 199,590 1.36 Fee
248 09-0001071 262,277 261,051 230,153 1.35 Fee
249 09-0001079 345,286 314,333 280,627 1.67 Fee
250 09-0001072 179,847 246,261 196,010 1.41 Fee
251 09-0001119 439,822 430,243 385,541 2.31 Fee
- ----------------------------------------------------------------------------------------------------------------------------
252 400029188 244,918 206,988 196,488 1.20 Fee
253 09-0001080 395,602 324,771 294,681 1.81 Fee
254 400029140 217,275 203,548 195,679 1.34 Fee
255 400029248 431,152 310,096 264,612 1.53 Fee
256 R0633 256,574 239,427 214,001 1.41 Fee
- ----------------------------------------------------------------------------------------------------------------------------
257 400029206 244,536 191,269 178,727 1.15 Fee
258 400029311 128,087 202,038 173,630 1.23 Fee
259 400029174 298,039 208,650 173,074 1.31 Fee
260 09-0001059 300,986 275,352 246,896 1.68 Fee
261 09-0001034 176,784 218,404 184,642 1.44 Yes Leasehold
- ----------------------------------------------------------------------------------------------------------------------------
262 09-0001046 - 167,844 165,608 1.12 Fee
263 09-0001085 194,729 188,174 185,671 1.42 Fee
264 09-0001054 384,218 285,333 285,333 1.84 Fee
265 400029168 217,279 232,612 197,917 1.49 Fee
266 09-0001137 283,334 262,624 196,860 1.45 Fee
- ----------------------------------------------------------------------------------------------------------------------------
267 09-0001095 183,202 199,318 166,897 1.36 Fee
268 400029182 174,449 186,811 165,691 1.35 Fee
269 07-0000000 288,000 262,599 253,921 1.62 Fee
270 400029228 178,994 175,727 167,401 1.27 Fee
271 400029155 151,565 209,477 175,907 1.28 Fee
- ----------------------------------------------------------------------------------------------------------------------------
272 09-0001032 - 165,038 162,507 1.00 Yes Leasehold
273 400029150 - 190,591 184,174 1.27 Fee
274 R0497 247,311 192,961 181,840 1.50 Fee
275 400029290 130,412 208,749 166,315 1.27 Fee
276 R0412 244,734 237,918 202,056 1.53 Fee
- ----------------------------------------------------------------------------------------------------------------------------
277 09-0001093 295,444 303,142 259,705 1.76 Fee
278 09-0001118 256,372 259,023 231,322 1.60 Fee
279 09-0001097 325,030 275,904 249,304 1.73 Fee
280 400029180 207,951 178,243 164,436 1.33 Fee
281 400030934 219,961 214,632 180,758 1.50 Fee
- ----------------------------------------------------------------------------------------------------------------------------
282 09-0001091 182,883 176,018 157,719 1.37 Fee
283 09-0001147 460,314 413,197 369,528 2.41 Fee
284 400030871 291,274 241,621 217,897 1.62 Fee
285 09-0001073 203,076 252,896 202,264 1.70 Fee
286 400029297 193,593 167,833 151,389 1.26 Fee
- ----------------------------------------------------------------------------------------------------------------------------
287 O0348 - 165,907 154,330 1.36 Fee
288 09-0001105 256,117 231,309 206,501 1.69 Fee
289 O0253 215,997 214,955 194,199 1.57 Fee
290 09-0001060 260,819 237,559 212,034 1.56 Fee
291 M0262 219,231 153,361 144,811 1.34 Fee
- ----------------------------------------------------------------------------------------------------------------------------
292 M0220 154,700 159,783 150,558 1.34 Fee
293 M0290 125,389 151,225 140,425 1.31 Fee
294 I0074 159,140 176,599 153,407 1.40 Fee
295 09-0001141 223,980 220,138 195,119 1.54 Fee
296 400029235 178,854 188,590 161,324 1.47 Fee
- ----------------------------------------------------------------------------------------------------------------------------
297 09-0001120 195,199 188,440 166,914 1.41 Fee
298 09-0001057 - 182,250 177,896 1.61 Fee
299 400029126 98,920 209,280 171,166 1.61 Fee
300 09-0001058 362,396 293,191 264,042 1.68 Fee
301 09-0001094 - 230,305 226,765 1.78 Fee
- ----------------------------------------------------------------------------------------------------------------------------
302 O0541 226,816 183,310 156,102 1.54 Fee
303 R0887 171,543 184,788 158,115 1.61 Fee
304 400029253 123,687 148,830 133,699 1.47 Fee
305 400030869 168,726 184,982 158,482 1.80 Fee
306 400029304 228,066 140,224 125,674 1.32 Fee
- ----------------------------------------------------------------------------------------------------------------------------
307 09-0001075 97,506 136,792 123,544 1.41 Fee
308 400029210 139,525 173,017 134,005 1.52 Fee
309 M0288 68,540 132,922 122,122 1.43 Fee
310 M0289 116,494 128,774 119,999 1.47 Fee
311 09-0001069 211,604 191,230 171,606 1.72 Fee
- ----------------------------------------------------------------------------------------------------------------------------
312 M0364 116,926 124,346 118,418 1.49 Fee
313 400030870 123,586 131,566 121,066 1.67 Fee
314 400029291 138,898 116,958 98,095 1.31 Fee
315 09-0001077 162,822 205,094 173,481 2.22 Fee
316 R0634 104,159 122,994 109,493 1.46 Fee
- ----------------------------------------------------------------------------------------------------------------------------
317 09-0001035 92,258 99,392 94,767 1.72 Fee
318 M0172 63,395 91,931 88,919 1.60 Fee
319 MU0114 91,891 90,053 78,536 1.49 Fee
320 09-0001036 (9,428) 80,311 75,886 1.62 Fee
321 R0886 68,172 86,749 76,299 1.59 Fee
- ----------------------------------------------------------------------------------------------------------------------------
322 400029246 76,002 64,547 61,192 1.38 Fee
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Control Group Loan Cut-Off
Number Number Number Property Name Date Balance
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2 1 and 2 AIM-1 AIMCO Roll-up $109,149,602
2a 1 AIM-1A AIMCO-Scothollow Apartments 29,312,804
2b 2 AIM-1B AIMCO-The Bluffs Apartments 3,746,170
2c 2 AIM-1C AIMCO-Buena Vista Apartments 4,983,690
2d 2 AIM-1D AIMCO-Casa De Monterey 4,126,447
- -------------------------------------------------------------------------------------------------------------
2e 2 AIM-1E AIMCO-Chappelle Le Grande 3,228,160
2f 2 AIM-1F AIMCO-Crosswood Park Apartments 5,601,533
2g 2 AIM-1G AIMCO-Forest Ridge Apartments 5,935,726
2h 2 AIM-1H AIMCO-Mountain View Apartments 7,200,564
2i 2 AIM-1I AIMCO-North Park Apartments 6,290,057
- -------------------------------------------------------------------------------------------------------------
2j 2 AIM-1J AIMCO-Pathfinder Village 13,543,952
2k 2 AIM-1K AIMCO-Shadowood Apartments 2,265,209
2l 2 AIM-1L AIMCO-Terrace Gardens Apartments 4,466,847
2m 2 AIM-1M AIMCO-Towers of Westchester 12,191,075
2n 2 AIM-1N AIMCO-Vista Village Apartments 3,341,728
- -------------------------------------------------------------------------------------------------------------
2o 2 AIM-1O AIMCO-Watergate Apartments 2,915,638
37 2 M0514 Hobbits Grove Apartments 11,839,014
44 2 09-0001123 Springdale Villa Apartments 10,035,229
45 2 09-0001042 Briarwood Village Apartments 9,756,251
48 2 M0171 Fremont Garden Apartments 9,370,479
- -------------------------------------------------------------------------------------------------------------
51 2 M0462 Cottonwood Cabanas Apartments 8,732,563
73 2 09-0001082 Canterbury Village Apartments 5,470,880
81 2 400029139 Redstone Apartments 5,161,627
89 2 400029257 Indian Lookout Apartments 4,786,473
90 2 400029169 Braden Creek Apartments 4,720,294
- -------------------------------------------------------------------------------------------------------------
91 2 400031048 Palm Springs Village Apartments 4,592,526
93 2 400029202 Villa Acapulco Apartments 4,540,699
95 2 M0330 Acadian/Willow Bend Roll-up 4,493,481
95a 2 M0330A Acadian House Apartments
95b 2 M0330B Willow Bend Apartments
- -------------------------------------------------------------------------------------------------------------
110 1 09-0001160 Plaza at River Oaks Apartments 4,050,000
112 2 400029299 Ogden Manor Apartments 3,991,324
113 2 400029232 Riverside Village Apartments 3,988,673
114 2 M0415 Northridge Villa Apartments 3,949,299
115 2 400029306 University Gardens Apartments 3,944,024
- -------------------------------------------------------------------------------------------------------------
116 2 400029252 Cimarron Apartments 3,830,519
119 1 M0429 The Seasons Apartments and Townhouses 3,746,987
131 2 400029137 Shirley Court Apartments 3,568,243
133 2 400029178 422 Mystic Avenue 3,482,939
136 1 400028210 Royal Village Apartments 3,470,313
- -------------------------------------------------------------------------------------------------------------
16 1 400029227 800 - 802 Lexington Avenue 3,260,044
153 2 M0263 Country Acres Apartments 3,087,007
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Studios 1 Bedroom
------------------------- -----------------------
Control Group Utilities Paid Wtd. Avg. Wtd. Avg.
Number Number County by Tenant # Units Rent/Month # Units Rent/Month
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 1 and 2 - - - -
2a 1 San Mateo Electric only - - 290 1,211
2b 2 Clackamas Electric only 19 475 64 520
2c 2 Los Angeles Electric only - - 51 999
2d 2 Los Angeles Electric only - - 112 636
- ------------------------------------------------------------------------------------------------------------------------------
2e 2 Lake Electric only - - 34 626
2f 2 Sacramento Electric only - - 66 660
2g 2 Coconino Electric only 88 523 80 610
2h 2 Los Angeles Electric only - - - -
2i 2 Vanderburgh Electric only - - 136 446
- ------------------------------------------------------------------------------------------------------------------------------
2j 2 Alemeda Electric only - - - -
2k 2 Quachita Parish Electric only - - 64 485
2l 2 Douglas Electric only - - - -
2m 2 Prince George's County No utilities 30 723 123 840
2n 2 El Paso No utilities 10 445 75 496
- ------------------------------------------------------------------------------------------------------------------------------
2o 2 Pulaski Electric only - - 28 477
37 2 Howard Electricity/Gas - - 48 905
44 2 Orange Electric only 22 608 150 680
45 2 Harris Electric only - - 254 524
48 2 Alameda Electric only 24 800 52 935
- ------------------------------------------------------------------------------------------------------------------------------
51 2 Shelby Electricity/Gas - - 80 395
73 2 Dallas No utilities - - 120 440
81 2 Chittenden Electric only - - 8 700
89 2 Hamilton County Electric only - - 75 535
90 2 Tulsa Electric only 24 275 184 331
- ------------------------------------------------------------------------------------------------------------------------------
91 2 Riverside Electric only - - 107 515
93 2 Harris Electric only - - 240 360
95 2 - - - -
95a 2 Lafayette Parish Electric only - - 24 413
95b 2 Lafayette Parish Electric only 1 (1) 48 420
- ------------------------------------------------------------------------------------------------------------------------------
110 1 Harris All utilities - - 30 765
112 2 Dupage Electricity/Gas - - 80 770
113 2 Pierce No utilities - - 48 488
114 2 Monterey Water/Electricity - - 52 609
115 2 Travis County Electric only - - 100 666
- ------------------------------------------------------------------------------------------------------------------------------
116 2 Broward All utilities - - 4 575
119 1 Ouachita All utilities - - 42 385
131 2 Delaware No utilities 6 435 126 531
133 2 Middlesex Electric only - - - -
136 1 Dallas Electricity/Gas 92 402 96 480
- ------------------------------------------------------------------------------------------------------------------------------
16 1 New York Electric Only - - 13 665
153 2 Benton No utilities - - 41 423
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
2 Bedroom 3 Bedroom 4 Bedroom
------------------------- ------------------------- -----------------------
Control Group Wtd. Avg. Wtd. Avg. Wtd. Avg.
Number Number # Units Rent/Month # Units Rent/Month # Units Rent/Month Elevators
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 1 and 2 - - - - - -
2a 1 127 1,617 1 1,800 - - Yes
2b 2 48 634 6 750 - - No
2c 2 35 1,174 6 1,375 - - Yes
2d 2 32 840 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
2e 2 59 726 12 957 - - No
2f 2 93 838 21 1,000 - - No
2g 2 96 727 14 890 - - No
2h 2 124 876 44 1,020 - - No
2i 2 148 590 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
2j 2 142 1,132 104 1,343 - - No
2k 2 52 601 4 725 - - No
2l 2 63 748 63 799 - - No
2m 2 103 1,046 45 1,245 - - Yes
2n 2 135 586 - - - - No
---------------------------------------------------------------------------------------------------------------------------------
2o 2 70 586 42 737 - - No
37 2 74 1,035 48 1,208 - - No
44 2 44 855 - - - - Yes
45 2 88 645 - - - - No
48 2 84 1,118 - - - - No
---------------------------------------------------------------------------------------------------------------------------------
51 2 304 435 - - - - No
73 2 160 575 68 691 - - No
81 2 46 897 8 1,200 19 1,435 No
89 2 60 680 - - - - No
90 2 96 421 - - - - No
---------------------------------------------------------------------------------------------------------------------------------
91 2 48 623 - - - - Yes
93 2 40 465 12 550 - - No
95 2 - - - - - -
95a 2 60 505 8 625 - - No
95b 2 60 515 - - - - No
---------------------------------------------------------------------------------------------------------------------------------
110 1 14 1,900 - - - - No
112 2 19 880 9 959 - - Yes
113 2 56 572 16 690 - - No
114 2 52 711 - - - - Yes
115 2 - - - - - - Yes
---------------------------------------------------------------------------------------------------------------------------------
116 2 86 668 16 846 - - No
119 1 107 475 - - - - No
131 2 18 626 - - - - Yes
133 2 42 994 8 1,206 - - Yes
136 1 80 594 32 725 - - No
---------------------------------------------------------------------------------------------------------------------------------
16 1 - - - - - - No
153 2 51 508 13 620 - - Yes
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A-13
<PAGE>
<TABLE>
<CAPTION>
Control Group Loan Cut-Off
Number Number Number Property Name Date Balance
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
157 1 400031128 Chateau Hilgard 2,997,437
159 2 09-0001045 Westbury Park Apartments 2,990,018
163 2 09-0001107 Southgate Suites & Apartments 2,981,475
- -------------------------------------------------------------------------------------------------------------
165 1 M0487 II Frances Place Apartments 2,939,401
172 1 400027560 Concord House/Concord Terrace 2,747,662
174 2 M0537 Cedar Shores Apartments 2,717,695
178 1 400030868 The Cascade Apartments 2,656,184
190 2 M0443 Tree House Apartments 2,397,966
- -------------------------------------------------------------------------------------------------------------
199 2 400029183 Fairlawn Gardens Apartments 2,290,025
202 2 09-0001084 Westwood Apartments 2,270,721
206 2 400029208 Summit Apartments 2,190,202
209 2 400028269 Westmoor Apartments 2,140,966
219 2 09-0001051 Town View Apartments 2,036,058
- -------------------------------------------------------------------------------------------------------------
238 2 400031123 Whitewood Oaks Apartments 1,797,348
239 2 09-0001070 Sierra Trails Apartments 1,796,427
243 2 400029185 Spring Heights Fourplexes 1,752,514
245 2 M0264 Executive East Apartments 1,742,665
252 1 400029188 Lillian Cove Duplexes 1,657,162
- -------------------------------------------------------------------------------------------------------------
265 2 400029168 The Eagle Crest Townhome Apts. 1,537,778
268 2 400029182 Chatham Street Apartments 1,494,043
291 2 M0262 Oakwood Heights Apartments 1,322,392
292 2 M0220 121 Seaman Avenue 1,319,950
293 2 M0290 Geneva Apartments 1,319,405
- -------------------------------------------------------------------------------------------------------------
305 1 400030869 The Park Square Apartments 1,098,422
307 2 09-0001075 Shadow Glen Apartments 1,061,977
309 2 M0288 Southview Apartments 1,045,599
310 2 M0289 The Crossings Apartments 995,809
312 2 M0364 Riverchase Apartments 959,266
- -------------------------------------------------------------------------------------------------------------
313 1 400030870 Park Ridge Apartments 898,725
317 2 09-0001035 The Mason Apartments 693,474
318 2 M0172 Roxbury Crossing Apartments 621,814
320 2 09-0001036 McKinney Avenue Apartments 587,761
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Studios 1 Bedroom
------------------------- -----------------------
Control Group Utilities Paid Wtd. Avg. Wtd. Avg.
Number Number County by Tenant # Units Rent/Month # Units Rent/Month
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
157 1 Los Angeles Electricity/Gas - - 20 1,491
159 2 Cobb Water/Electricity - - 44 495
163 2 Muscogee No utilities - - 1 380
- ------------------------------------------------------------------------------------------------------------------------------
165 1 Ouachita Parish Electric only - - 24 453
172 1 Tarrant No utilities 9 295 133 380
174 2 Duval Water/Electricity - - 30 473
178 1 Tarrant Electric only 2 380 73 449
190 2 Clay Electric only 8 415 40 495
- ------------------------------------------------------------------------------------------------------------------------------
199 2 Berkeley Electric only - - 29 464
202 2 Tarrant Electric only - - 54 353
206 2 Tulsa Electric only - - 20 389
209 2 Hancock Electricity/Gas - - 8 400
219 2 Dallas Electric only 6 255 89 404
- ------------------------------------------------------------------------------------------------------------------------------
238 2 Bexar Electricity/Gas 34 347 30 417
239 2 Tarrant County No utilities 1 350 64 352
243 2 Brazos Electric only - - 20 415
245 2 Benton No utilities - - 18 400
252 1 Faulkner All utilities - - - -
- ------------------------------------------------------------------------------------------------------------------------------
265 2 Bexar Electric only - - 105 335
268 2 Essex Electric only 1 450 30 550
291 2 Benton No utilities - - 10 440
292 2 New York Electric only - - 39 574
293 2 Benton No utilities - - 2 395
- ------------------------------------------------------------------------------------------------------------------------------
305 1 Tarrant Electric only - - 76 345
307 2 Dallas Electric only - - - -
309 2 Benton No utilities - - 11 390
310 2 Benton No utilities 1 300 17 410
312 2 Tunica Electricity/Gas - - - -
- ------------------------------------------------------------------------------------------------------------------------------
313 1 Tarrant Electric only - - - -
317 2 Dallas No utilities 5 550 20 659
318 2 Suffolk Electricity/Gas - - - -
320 2 Dallas No utilities 4 475 10 587
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
2 Bedroom 3 Bedroom 4 Bedroom
------------------------ ------------------------- -----------------------
Control Group Wtd. Avg. Wtd. Avg. Wtd. Avg.
Number Number # Units Rent/Month # Units Rent/Month # Units Rent/Month Elevators
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
157 1 4 1,919 - - - - Yes
159 2 84 594 - - - - No
163 2 102 583 1 660 - - No
- ---------------------------------------------------------------------------------------------------------------------------------
165 1 76 520 - - - - No
172 1 168 466 12 590 - - No
174 2 62 541 11 638 - - No
178 1 45 579 - - - - No
190 2 24 595 20 705 - - No
- ---------------------------------------------------------------------------------------------------------------------------------
199 2 72 514 11 631 - - No
202 2 112 466 1 640 - - No
206 2 52 468 24 575 - - No
209 2 40 632 8 550 - - No
219 2 32 535 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
238 2 60 512 6 575 - - No
239 2 51 490 - - - - No
243 2 56 511 - - - - No
245 2 36 480 18 600 - - No
252 1 42 559 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
265 2 30 435 - - - - No
268 2 35 650 - - - - No
291 2 28 549 - - - - Yes
292 2 2 761 - - - - Yes
293 2 34 465 12 585 - - No
- ---------------------------------------------------------------------------------------------------------------------------------
305 1 30 425 - - - - No
307 2 48 588 - - - - No
309 2 34 460 3 575 - - No
310 2 18 510 3 600 - - No
312 2 24 597 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
313 1 20 495 22 595 - - No
317 2 - - - - - - No
318 2 1 930 8 945 3 1,165 No
320 2 5 880 - - - - No
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Studio is occupied by building superintendent and therefore has no monthly
rent.
A-14
<PAGE>
As of the Cut-Off Date the Mortgage Loans had the approximate
characteristics described below.
DISTRIBUTION OF CUT-OFF DATE BALANCES
AGGREGATE
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
CUT-OFF DATE BALANCES LOANS LOANS PROPERTIES BALANCE
- ------------------------------ ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
$ 500,000 - $ 999,999.... 13 4.04% 13 $ 9,892,085
$ 1,000,000 - $ 1,999,999.... 91 28.26 91 141,179,673
$ 2,000,000 - $ 2,999,999.... 64 19.88 82 159,553,894
$ 3,000,000 - $ 3,999,999.... 49 15.22 52 171,065,279
$ 4,000,000 - $ 4,999,999.... 29 9.01 42 131,320,516
$ 5,000,000 - $ 5,999,999.... 15 4.66 17 81,623,716
$ 6,000,000 - $ 6,999,999.... 10 3.11 12 65,329,158
$ 7,000,000 - $ 7,999,999.... 5 1.55 10 38,036,492
$ 8,000,000 - $ 8,999,999.... 6 1.86 6 50,376,162
$ 9,000,000 - $ 9,999,999.... 6 1.86 6 57,198,374
$10,000,000 - $ 11,999,999.... 8 2.48 9 84,741,317
$12,000,000 - $ 13,999,999.... 7 2.17 9 89,869,426
$14,000,000 - $ 16,999,999.... 3 0.93 3 43,669,186
$17,000,000 - $ 19,999,999.... 4 1.24 7 73,285,333
$20,000,000 - $ 24,999,999.... 5 1.55 5 109,967,084
$25,000,000 - $ 49,999,999.... 3 0.93 3 105,490,514
$50,000,000 - $147,597,677.... 4 1.24 54 448,919,618
-- ----- -- --------------
Total/Weighted
Average .................... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
</TABLE>
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
CUT-OFF DATE BALANCES BALANCE DSCR LTV RATIO RATE
- ------------------------------ -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
$ 500,000 -$ 999,999.... 0.53% 1.60x 70.8% 7.38%
$ 1,000,000 - $ 1,999,999.... 7.58 1.46x 71.1% 7.44%
$ 2,000,000 - $ 2,999,999.... 8.57 1.44x 71.7% 7.43%
$ 3,000,000 - $ 3,999,999.... 9.19 1.41x 71.9% 7.34%
$ 4,000,000 - $ 4,999,999.... 7.05 1.42x 72.0% 7.23%
$ 5,000,000 - $ 5,999,999.... 4.38 1.41x 74.0% 7.34%
$ 6,000,000 - $ 6,999,999.... 3.51 1.43x 70.9% 7.26%
$ 7,000,000 - $ 7,999,999.... 2.04 1.43x 73.6% 7.58%
$ 8,000,000 - $ 8,999,999.... 2.71 1.51x 72.5% 7.37%
$ 9,000,000 - $ 9,999,999.... 3.07 1.51x 71.7% 7.33%
$10,000,000 - $ 11,999,999.... 4.55 1.50x 70.8% 7.35%
$12,000,000 - $ 13,999,999.... 4.83 1.41x 70.2% 7.40%
$14,000,000 - $ 16,999,999.... 2.35 1.38x 67.9% 7.11%
$17,000,000 - $ 19,999,999.... 3.94 1.37x 69.5% 7.65%
$20,000,000 - $ 24,999,999.... 5.91 1.78x 71.0% 7.99%
$25,000,000 - $ 49,999,999.... 5.67 1.45x 66.2% 7.07%
$50,000,000 - $147,597,677.... 24.12 1.73x 61.8% 7.29%
-----
Total/Weighted
Average .................... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
<PAGE>
DISTRIBUTION OF CUT-OFF DATE BALANCES
GROUP 1
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
CUT-OFF DATE BALANCES LOANS LOANS PROPERTIES BALANCE
- ------------------------------ ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
$ 500,000 - $ 999,999.... 5 2.69% 5 $ 4,334,893
$ 1,000,000 - $ 1,999,999.... 59 31.72 59 93,733,457
$ 2,000,000 - $ 2,999,999.... 36 19.35 45 91,145,037
$ 3,000,000 - $ 3,999,999.... 27 14.52 28 93,364,646
$ 4,000,000 - $ 4,999,999.... 15 8.06 27 66,915,463
$ 5,000,000 - $ 5,999,999.... 5 2.69 7 28,002,421
$ 6,000,000 - $ 6,999,999.... 6 3.23 8 40,004,703
$ 7,000,000 - $ 7,999,999.... 4 2.15 9 30,394,811
$ 8,000,000 - $ 8,999,999.... 3 1.61 3 24,990,341
$ 9,000,000 - $ 9,999,999.... 3 1.61 3 28,603,746
$10,000,000 - $ 11,999,999.... 4 2.15 5 42,022,120
$12,000,000 - $ 13,999,999.... 5 2.69 7 63,817,796
$14,000,000 - $ 16,999,999.... 1 0.54 1 15,000,000
$17,000,000 - $ 19,999,999.... 4 2.15 7 73,285,333
$20,000,000 - $ 24,999,999.... 3 1.61 3 66,689,673
$25,000,000 - $ 49,999,999.... 3 1.61 3 109,222,740
$50,000,000 - $147,597,677.... 3 1.61 39 339,770,015
-- ----- -- --------------
Total/Weighted
Average .................... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
</TABLE>
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
CUT-OFF DATE BALANCES BALANCE DSCR LTV RATIO RATE
- ------------------------------ -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
$ 500,000 - $ 999,999.... 0.36% 1.67x 67.0% 7.59%
$ 1,000,000 - $ 1,999,999.... 7.74 1.47x 70.7% 7.51%
$ 2,000,000 - $ 2,999,999.... 7.52 1.45x 71.0% 7.48%
$ 3,000,000 - $ 3,999,999.... 7.71 1.40x 71.2% 7.45%
$ 4,000,000 - $ 4,999,999.... 5.52 1.41x 70.2% 7.30%
$ 5,000,000 - $ 5,999,999.... 2.31 1.38x 74.2% 7.25%
$ 6,000,000 - $ 6,999,999.... 3.30 1.37x 70.0% 7.22%
$ 7,000,000 - $ 7,999,999.... 2.51 1.45x 73.8% 7.59%
$ 8,000,000 - $ 8,999,999.... 2.06 1.39x 75.4% 7.66%
$ 9,000,000 - $ 9,999,999.... 2.36 1.61x 69.5% 7.46%
$10,000,000 - $ 11,999,999.... 3.47 1.61x 66.5% 7.77%
$12,000,000 - $ 13,999,999.... 5.27 1.47x 68.7% 7.28%
$14,000,000 - $ 16,999,999.... 1.24 1.45x 52.3% 6.91%
$17,000,000 - $ 19,999,999.... 6.05 1.37x 69.5% 7.65%
$20,000,000 - $ 24,999,999.... 5.51 2.03x 63.6% 8.32%
$25,000,000 - $ 49,999,999.... 9.02 1.46x 61.6% 7.38%
$50,000,000 - $147,597,677.... 28.05 1.84x 62.0% 6.90%
-----
Total/Weighted
Average .................... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
A-15
<PAGE>
DISTRIBUTION OF CUT-OFF DATE BALANCES
GROUP 2
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
CUT-OFF DATE MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
BALANCES LOANS LOANS PROPERTIES BALANCE
- ------------------------------- ----------- ---------- ------------ --------------
<S> <C> <C> <C> <C>
$ 500,000 - $ 999,999..... 8 5.84% 8 $ 5,557,192
$ 1,000,000 - $ 1,999,999..... 32 23.36 32 47,446,216
$ 2,000,000 - $ 2,999,999..... 28 20.44 37 68,408,857
$ 3,000,000 - $ 3,999,999..... 22 16.06 24 77,700,632
$ 4,000,000 - $ 4,999,999..... 14 10.22 15 64,405,053
$ 5,000,000 - $ 5,999,999..... 10 7.30 10 53,621,295
$ 6,000,000 - $ 6,999,999..... 4 2.92 4 25,324,455
$ 7,000,000 - $ 7,999,999..... 1 0.73 1 7,641,681
$ 8,000,000 - $ 8,999,999..... 3 2.19 3 25,385,821
$ 9,000,000 - $ 9,999,999..... 3 2.19 3 28,594,628
$10,000,000 - $ 11,999,999..... 4 2.92 4 42,719,197
$12,000,000 - $ 13,999,999..... 2 1.46 2 26,051,630
$14,000,000 - $ 16,999,999..... 2 1.46 2 28,669,186
$20,000,000 - $ 24,999,999..... 2 1.46 2 43,277,411
$25,000,000 - $ 49,999,999..... 1 0.73 1 25,580,579
$50,000,000 - $147,597,677..... 1 0.73 14 79,836,798
-- ----- -- ------------
Total/Weighted
Average ..................... 137 100.00% 162 $650,220,628
=== ====== === ============
</TABLE>
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
BALANCES BALANCE DSCR LTV RATIO RATE
- ------------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
$ 500,000 - $ 999,999..... 0.85% 1.54x 73.8% 7.23%
$ 1,000,000 - $ 1,999,999..... 7.30 1.45x 71.8% 7.30%
$ 2,000,000 - $ 2,999,999..... 10.52 1.42x 72.8% 7.37%
$ 3,000,000 - $ 3,999,999..... 11.95 1.42x 72.8% 7.21%
$ 4,000,000 - $ 4,999,999..... 9.91 1.43x 73.8% 7.16%
$ 5,000,000 - $ 5,999,999..... 8.25 1.42x 73.9% 7.39%
$ 6,000,000 - $ 6,999,999..... 3.89 1.53x 72.4% 7.32%
$ 7,000,000 - $ 7,999,999..... 1.18 1.36x 73.1% 7.54%
$ 8,000,000 - $ 8,999,999..... 3.90 1.63x 69.7% 7.09%
$ 9,000,000 - $ 9,999,999..... 4.40 1.41x 73.9% 7.20%
$10,000,000 - $ 11,999,999..... 6.57 1.39x 75.1% 6.94%
$12,000,000 - $ 13,999,999..... 4.01 1.28x 74.0% 7.71%
$14,000,000 - $ 16,999,999..... 4.41 1.35x 76.1% 7.21%
$20,000,000 - $ 24,999,999..... 6.66 1.39x 82.4% 7.49%
$25,000,000 - $ 49,999,999..... 3.93 1.32x 79.9% 7.39%
$50,000,000 - $147,597,677..... 12.28 1.39x 61.2% 8.50%
-----
Total/Weighted
Average ..................... 100.00% 1.42x 72.7% 7.43%
======
</TABLE>
A-16
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
AGGREGATE
<TABLE>
<CAPTION>
% OF
AGGREGATE
NUMBER OF AGGREGATE CURRENT
MORTGAGED CUT-OFF DATE PRINCIPAL
PROPERTY TYPE PROPERTIES BALANCE BALANCE
- ------------------------------- ------------ ----------------- -----------
<S> <C> <C> <C>
RETAIL:
- -------------------------------
Anchored Retail .............. 46 $ 242,124,573 13.01%
Unanchored Retail ............ 65 196,771,060 10.57
CTL/Retail ................... 6 9,681,825 0.52
- ------------------------------- -- -------------- -----
TOTAL ........................ 117 448,577,458 24.10
LODGING:
- --------------------------------
Limited Svc. Hotel ........... 54 112,188,548 6.03
Luxury Hotel ................. 5 99,517,029 5.35
Full Service Hotel ........... 14 100,095,662 5.38
- ------------------------------- --- -------------- -----
TOTAL ........................ 73 311,801,239 16.75
Office ........................ 52 301,139,444 16.18
Multifamily ................... 72 294,076,829 15.80
Industrial .................... 56 244,082,727 13.11
Movie Theatre ................. 8 104,748,392 5.63
HEALTH CARE:
- --------------------------------
Hospital ..................... 3 52,372,423 2.81
Assisted Living Facility ..... 5 22,365,612 1.20
Nursing Home, Skilled ........ 3 18,864,109 1.01
- ------------------------------- --- -------------- -----
TOTAL: ....................... 11 93,602,144 5.03
Self-Storage .................. 8 19,034,594 1.02
OTHER
Underlying Fee ............... 1 15,000,000 0.81
Mobile Home Park ............. 5 14,126,724 0.76
Child Care ................... 14 7,544,728 0.41
Parking Garage ............... 1 4,433,463 0.24
Mixed Use .................... 2 1,856,989 0.10
Auto Dealership .............. 1 1,493,092 0.08
=============================== === ============== =====
Total/Weighted
Average ...................... 421 $1,861,517,825 100.00%
=== ============== ======
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE WEIGHTED WEIGHTED
UNDERWRITTEN CUT-OFF DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE DSCR LTV RATIO RATE OCCUPANCY UNITS
- ------------------------------- -------------- -------------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
RETAIL:
- --------------------------------
Anchored Retail .............. 1.33x 74.9% 7.43% 95.29% 153,201.9
Unanchored Retail ............ 1.39x 72.4% 7.28% 94.96% 65,514.9
CTL/Retail ................... 1.11x 85.9% 6.96% 100.00% 10,874.3
- -------------------------------- ---- ---- ---- ------ ----------
TOTAL ........................ 1.35X 74.1% 7.36% 95.25% 111,665.6
LODGING:
- --------------------------------
Limited Svc. Hotel ........... 1.58x 69.8% 7.75% 68.03% 90.0
Luxury Hotel ................. 1.52x 61.7% 7.08% 72.12% 307.3
Full Service Hotel ........... 1.48x 73.1% 7.61% 69.68% 217.5
- -------------------------------- ------ ---- ---- ------ ----------
TOTAL ........................ 1.53X 68.2% 7.49% 69.86% 200.3
Office ........................ 1.42x 71.7% 7.22% 97.48% 244,902.2
Multifamily ................... 1.39x 71.2% 7.61% 94.63% 199.4
Industrial .................... 1.72x 61.2% 7.07% 39.09% 412,256.3
Movie Theatre ................. 2.06x 61.6% 6.77% 100.00% 109,529.8
HEALTH CARE:
- --------------------------------
Hospital ..................... 2.32x 58.3% 9.01% 81.92% 170.6
Assisted Living Facility ..... 1.51x 68.3% 7.42% 91.67% 68.7
Nursing Home, Skilled ........ 1.90x 55.6% 7.74% 83.96% 123.8
- -------------------------------- ------ ---- ---- ------ ----------
TOTAL: ....................... 2.04X 60.2% 8.37% 84.66% 136.8
Self-Storage .................. 1.46x 69.2% 7.26% 87.22% 61,352.9
OTHER
Underlying Fee ............... 1.45x 52.3% 6.91% NAP NAP
Mobile Home Park ............. 1.70x 68.7% 6.74% 95.19% 354.3
Child Care ................... 1.79x 58.8% 7.78% 100.00% 7,911.3
Parking Garage ............... 1.13x 71.5% 7.41% 100.00% 820.0
Mixed Use .................... 1.33x 69.3% 7.79% 100.00% 28,150.1
Auto Dealership .............. 1.62x 47.4% 8.44% 100.00% 22,251.0
================================ ====== ==== ==== ====== ==========
Total/Weighted
Average ...................... 1.53x 68.8% 7.37% 82.82%
</TABLE>
A-17
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
GROUP 1
<TABLE>
<CAPTION>
% OF
AGGREGATE
NUMBER OF AGGREGATE CURRENT
MORTGAGED CUT-OFF DATE PRINCIPAL
PROPERTY TYPE PROPERTIES BALANCE BALANCE
- ------------------------------- ------------ ----------------- -----------
<S> <C> <C> <C>
LODGING:
- --------------------------------
Limited Svc. Hotel ........... 49 $ 95,237,484 7.86%
Luxury Hotel ................. 5 99,517,029 8.22
Full Service Hotel ........... 11 59,654,620 4.92
- ------------------------------- -- -------------- ----
TOTAL ........................ 65 254,409,133 21.00
RETAIL:
- --------------------------------
Anchored Retail .............. 27 129,047,069 10.65
Unanchored Retail ............ 34 86,186,418 7.12
CTL/Retail ................... 6 9,681,825 0.80
- ------------------------------- -- -------------- -----
TOTAL ........................ 67 224,915,312 18.57
Office ........................ 29 215,113,405 17.76
Industrial .................... 42 207,659,656 17.14
Movie Theatre ................. 8 104,748,392 8.65
HEALTH CARE:
- ---------------------------------------------------------------------------
Hospital ..................... 3 52,372,423 4.32
Assisted Living Facility ..... 5 22,365,612 1.85
Nursing Home, Skilled ........ 2 16,348,976 1.35
- ------------------------------- -- -------------- -----
TOTAL ........................ 10 91,087,010 7.52
Multifamily ................... 12 58,835,141 4.86
Self-Storage .................. 7 17,462,734 1.44
OTHER
Underlying Fee ............... 1 15,000,000 1.24
Mobile Home Park ............. 5 14,126,724 1.17
Child Care ................... 12 6,446,598 0.53
Auto Dealership .............. 1 1,493,092 0.12
=============================== == ============== =====
Total/Weighted
Average ...................... 259 $1,211,297,197 100.00%
=== ============== ======
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE WEIGHTED WEIGHTED
UNDERWRITTEN CUT-OFF DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE DSCR LTV RATIO RATE OCCUPANCY UNITS
- ------------------------------- -------------- -------------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
LODGING:
- --------------------------------
Limited Svc. Hotel ........... 1.62x 70.4% 7.71% 67.38% 82.8
Luxury Hotel ................. 1.52x 61.7% 7.08% 72.12% 307.3
Full Service Hotel ........... 1.64x 67.5% 7.33% 72.18% 156.8
- -------------------------------- ---- ---- ---- ----- -----
TOTAL ........................ 1.58X 66.3% 7.38% 70.36% 188.0
RETAIL:
- --------------------------------
Anchored Retail .............. 1.28x 73.9% 7.56% 95.52% 136,250.7
Unanchored Retail ............ 1.28x 72.2% 7.36% 97.11% 26,069.0
CTL/Retail ................... 1.11x 85.9% 6.96% 100.00% 10,874.3
- -------------------------------- ------ ---- ---- ------ ---------
TOTAL ........................ 1.27X 73.7% 7.46% 96.32% 88,632.6
Office ........................ 1.39x 72.5% 7.20% 97.62% 302,011.7
Industrial .................... 1.77x 59.5% 7.02% 28.45% 459,738.6
Movie Theatre ................. 2.06x 61.7% 6.77% 100.00% 109,485.4
HEALTH CARE:
- --------------------------------------------------------------------------------------------------
Hospital ..................... 2.32x 58.3% 9.01% 81.92% 170.6
Assisted Living Facility ..... 1.51x 68.3% 7.42% 91.67% 68.7
Nursing Home, Skilled ........ 1.98x 56.4% 7.71% 83.96% 128.7
- -------------------------------- ------ ---- ---- ------ ---------
TOTAL ........................ 2.06X 60.4% 8.39% 84.68% 138.0
Multifamily ................... 1.35x 68.6% 7.93% 96.77% 269.7
Self-Storage .................. 1.48x 68.5% 7.25% 87.06% 63,962.9
OTHER
Underlying Fee ............... 1.45x 52.3% 6.91% NAP NAP
Mobile Home Park ............. 1.70x 68.7% 6.74% 95.19% 354.3
Child Care ................... 1.86x 57.1% 7.75% 100.00% 7,915.4
Auto Dealership .............. 1.62x 47.4% 8.44% 100.00% 22,251.0
================================ ====== ==== ==== ====== =========
Total/Weighted
Average ...................... 1.59x 66.7% 7.34% 77.67%
</TABLE>
A-18
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
GROUP 2
<TABLE>
<CAPTION>
% OF
AGGREGATE
NUMBER OF AGGREGATE CURRENT
MORTGAGED CUT-OFF DATE PRINCIPAL
PROPERTY TYPE PROPERTIES BALANCE BALANCE
- ------------------------------ ------------ -------------- -----------
<S> <C> <C> <C>
Multifamily .................. 60 $235,241,688 36.18%
RETAIL:
- -------------------------------
Unanchored Retail ........... 31 110,584,642 17.01
Anchored Retail ............. 19 113,077,504 17.39
- ------------------------------ -- ------------ -----
TOTAL ....................... 50 223,662,146 34.40
Office ....................... 23 86,026,039 13.23
LODGING:
- -------------------------------
Full Service Hotel .......... 2 35,063,629 5.39
Limited Svc. Hotel .......... 6 22,328,477 3.43
- ------------------------------ -- ------------ -----
TOTAL ....................... 8 57,392,106 8.83
Industrial ................... 14 36,423,071 5.60
Parking Garage ............... 1 4,433,463 0.68
HEALTHCARE:
- -------------------------------
Nursing Home, Skilled ....... 1 2,515,134 0.39
- ------------------------------ -- ------------ -----
TOTAL ....................... 1 2,515,134 0.39
OTHER
Mixed Use ................... 2 1,856,989 0.29
Self-Storage ................ 1 1,571,860 0.24
Child Care .................. 2 1,098,131 0.17
============================== == ============ =====
Total/Weighted
Average ..................... 162 $650,220,628 100.00%
=== ============ ======
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE WEIGHTED WEIGHTED
UNDERWRITTEN CUT-OFF DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE DSCR LTV RATIO RATE OCCUPANCY UNITS
- ------------------------------ -------------- -------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Multifamily .................. 1.41x 71.8% 7.53% 94.09% 181.8
RETAIL:
- -------------------------------
Unanchored Retail ........... 1.47x 72.6% 7.22% 93.28% 96,257.9
Anchored Retail ............. 1.40x 76.1% 7.29% 95.03% 172,547.0
- ------------------------------- ---- ---- ---- ----- ---------
TOTAL ....................... 1.44x 74.4% 7.26% 94.17% 134,827.6
Office ....................... 1.50x 69.6% 7.27% 96.36% 80,067.3
LODGING:
- -------------------------------
Full Service Hotel .......... 1.25x 80.0% 8.09% 65.38% 335.6
Limited Svc. Hotel .......... 1.28x 71.8% 7.83% 71.27% 128.2
- ------------------------------- ------ ---- ---- ----- ---------
TOTAL ....................... 1.26x 76.8% 7.99% 67.67% 254.9
Industrial ................... 1.45x 70.8% 7.34% 99.75% 141,544.3
Parking Garage ............... 1.13x 71.5% 7.41% 100.00% 820
HEALTHCARE:
- -------------------------------
Nursing Home, Skilled ....... 1.38x 50.3% 7.88% 84.00% 92
- ------------------------------- ------ ---- ---- ------ ---------
TOTAL ....................... 1.38x 50.3% 7.88% 84.00% 92
OTHER
Mixed Use ................... 1.33x 69.3% 7.79% 100.00% 28,150.1
Self-Storage ................ 1.27x 76.7% 7.47% 89.00% 32,357.0
Child Care .................. 1.35x 69.1% 7.96% 100.00% 7,887.4
=============================== ====== ==== ==== ====== =========
Total/Weighted
Average ..................... 1.42x 72.7% 7.43% 92.42%
</TABLE>
A-19
<PAGE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
AGGREGATE
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
UNDERWRITTEN MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
DSCR LOANS LOANS PROPERTIES BALANCE
- ----------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
1.00x - 1.10x ......... 5 1.55% 5 $ 10,109,784
1.11x - 1.20x ......... 12 3.73 12 75,489,362
1.21x - 1.30x ......... 56 17.39 63 243,577,366
1.31x - 1.40x ......... 92 28.57 123 604,416,910
1.41x - 1.50x ......... 58 18.01 67 229,829,840
1.51x - 1.60x ......... 38 11.80 45 230,133,557
1.61x - 1.70x ......... 30 9.32 32 78,939,807
1.71x - 1.80x ......... 10 3.11 10 20,199,498
1.81x - 1.90x ......... 7 2.17 7 37,696,554
1.91x - 2.00x ......... 5 1.55 41 170,698,662
2.01x - 2.10x ......... 1 0.31 8 104,748,392
2.11x - 2.20x ......... 1 0.31 1 8,000,000
2.21x - 2.30x ......... 3 0.93 3 20,305,133
2.31x - 2.40x ......... 1 0.31 1 1,669,271
2.41x - 2.50x ......... 1 0.31 1 1,395,552
2.51x - 2.85x ......... 2 0.62 2 24,308,138
-- ----- --- --------------
Total/Weighted
Average ............ 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
UNDERWRITTEN CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
DSCR BALANCE DSCR LTV RATIO RATE
- ----------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
1.00x - 1.10x ......... 0.54% 1.04x 88.3% 6.89%
1.11x - 1.20x ......... 4.06 1.17x 77.8% 7.68%
1.21x - 1.30x ......... 13.08 1.27x 74.1% 7.41%
1.31x - 1.40x ......... 32.47 1.37x 70.9% 7.51%
1.41x - 1.50x ......... 12.35 1.45x 71.5% 7.24%
1.51x - 1.60x ......... 12.36 1.55x 66.9% 7.22%
1.61x - 1.70x ......... 4.24 1.66x 69.5% 7.36%
1.71x - 1.80x ......... 1.09 1.75x 67.8% 7.42%
1.81x - 1.90x ......... 2.03 1.82x 61.3% 7.92%
1.91x - 2.00x ......... 9.17 1.94x 57.2% 6.93%
2.01x - 2.10x ......... 5.63 2.06x 61.7% 6.77%
2.11x - 2.20x ......... 0.43 2.14x 49.4% 7.22%
2.21x - 2.30x ......... 1.09 2.27x 56.1% 8.62%
2.31x - 2.40x ......... 0.09 2.31x 59.2% 7.79%
2.41x - 2.50x ......... 0.07 2.41x 45.8% 7.13%
2.51x - 2.85x ......... 1.31 2.81x 60.1% 9.06%
-----
Total/Weighted
Average ............ 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
<PAGE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
UNDERWRITTEN MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
DSCR LOANS LOANS PROPERTIES BALANCE
- ---------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
1.00x - 1.10x ........ 5 2.69% 5 $ 10,109,784
1.11x - 1.20x ........ 7 3.76 7 43,062,222
1.21x - 1.30x ........ 38 20.43 41 149,159,558
1.31x - 1.40x ........ 48 25.81 59 336,487,423
1.41x - 1.50x ........ 28 15.05 36 128,249,471
1.51x - 1.60x ........ 17 9.14 23 138,132,686
1.61x - 1.70x ........ 19 10.22 21 46,145,771
1.71x - 1.80x ........ 7 3.76 7 10,951,378
1.81x - 1.90x ........ 4 2.15 4 25,873,755
1.91x - 2.00x ........ 5 2.69 41 170,698,662
2.01x - 2.10x ........ 1 0.54 8 104,748,392
2.21x - 2.30x ........ 3 1.61 3 20,305,133
2.31x - 2.40x ........ 1 0.54 1 1,669,271
2.41x - 2.50x ........ 1 0.54 1 1,395,552
2.51x - 2.85x ........ 2 1.08 2 24,308,138
-- ----- -- --------------
Total/Weighted
Average ........... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
UNDERWRITTEN CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
DSCR BALANCE DSCR LTV RATIO RATE
- ---------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
1.00x - 1.10x ........ 0.83% 1.04x 88.3% 6.89%
1.11x - 1.20x ........ 3.56 1.17x 78.0% 7.92%
1.21x - 1.30x ........ 12.31 1.27x 72.5% 7.28%
1.31x - 1.40x ........ 27.78 1.37x 70.6% 7.40%
1.41x - 1.50x ........ 10.59 1.44x 69.1% 7.37%
1.51x - 1.60x ........ 11.40 1.54x 63.5% 7.22%
1.61x - 1.70x ........ 3.81 1.66x 66.8% 7.56%
1.71x - 1.80x ........ 0.90 1.76x 70.0% 7.56%
1.81x - 1.90x ........ 2.14 1.81x 59.3% 8.26%
1.91x - 2.00x ........ 14.09 1.94x 57.2% 6.93%
2.01x - 2.10x ........ 8.65 2.06x 61.7% 6.77%
2.21x - 2.30x ........ 1.68 2.27x 56.1% 8.62%
2.31x - 2.40x ........ 0.14 2.31x 59.2% 7.79%
2.41x - 2.50x ........ 0.12 2.41x 45.8% 7.13%
2.51x - 2.85x ........ 2.01 2.81x 60.1% 9.06%
-----
Total/Weighted
Average ........... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
A-20
<PAGE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
UNDERWRITTEN MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
DSCR LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.11x - 1.20x ..... 5 3.65% 5 $ 32,427,140 4.99% 1.16x 77.4% 7.36%
1.21x - 1.30x ..... 18 13.14 22 94,417,808 14.52 1.26x 76.7% 7.62%
1.31x - 1.40x ..... 45 32.85 64 267,929,486 41.21 1.36x 71.4% 7.65%
1.41x - 1.50x ..... 30 21.90 31 101,580,369 15.62 1.47x 74.6% 7.07%
1.51x - 1.60x ..... 21 15.33 22 92,000,870 14.15 1.55x 72.2% 7.23%
1.61x - 1.70x ..... 11 8.03 11 32,794,036 5.04 1.65x 73.2% 7.07%
1.71x - 1.80x ..... 3 2.19 3 9,248,120 1.42 1.75x 65.3% 7.25%
1.81x - 1.90x ..... 3 2.19 3 11,822,799 1.82 1.84x 65.7% 7.19%
2.11x - 2.20x ..... 1 0.73 1 8,000,000 1.23 2.14x 49.4% 7.22%
-- ----- -- ------------ -----
Total/Weighted
Average ........ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
DISTRIBUTION OF MORTGAGE RATES
AGGREGATE
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
MORTGAGE RATES LOANS LOANS PROPERTIES BALANCE
- ---------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
6.0001% - 6.2500%..... 2 0.62% 2 $ 9,514,000
6.2501% - 6.5000%..... 2 0.62 2 16,189,014
6.5001% - 6.7500%..... 2 0.62 2 51,050,000
6.7501% - 7.0000%..... 34 10.56 70 405,382,348
7.0001% - 7.2500%..... 89 27.64 98 399,920,819
7.2501% - 7.5000%..... 96 29.81 108 490,853,510
7.5001% - 7.7500%..... 48 14.91 59 161,061,476
7.7501% - 8.0000%..... 26 8.07 34 64,001,571
8.0001% - 8.2500%..... 10 3.11 19 56,256,804
8.2501% - 8.5000%..... 8 2.48 22 168,362,622
8.5001% - 8.7500%..... 2 0.62 2 4,017,112
8.7501% - 9.0000%..... 1 0.31 1 3,470,313
9.2501% - 9.5000%..... 2 0.62 2 31,438,237
-- ----- --- --------------
Total/Weighted
Average ........... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MORTGAGE RATES BALANCE DSCR LTV RATIO RATE
- ---------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
6.0001% - 6.2500%..... 0.51% 1.68x 62.7% 6.17%
6.2501% - 6.5000%..... 0.87 1.44x 74.3% 6.40%
6.5001% - 6.7500%..... 2.74 1.53x 56.0% 6.74%
6.7501% - 7.0000%..... 21.78 1.80x 64.2% 6.87%
7.0001% - 7.2500%..... 21.48 1.42x 72.1% 7.12%
7.2501% - 7.5000%..... 26.37 1.39x 72.7% 7.36%
7.5001% - 7.7500%..... 8.65 1.52x 68.6% 7.62%
7.7501% - 8.0000%..... 3.44 1.52x 70.2% 7.86%
8.0001% - 8.2500%..... 3.02 1.30x 74.5% 8.09%
8.2501% - 8.5000%..... 9.04 1.43x 63.6% 8.45%
8.5001% - 8.7500%..... 0.22 1.39x 73.5% 8.57%
8.7501% - 9.0000%..... 0.19 1.23x 73.1% 8.83%
9.2501% - 9.5000%..... 1.69 2.66x 59.5% 9.47%
-----
Total/Weighted
Average ........... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
A-21
<PAGE>
DISTRIBUTION OF MORTGAGE RATES
GROUP 1
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
MORTGAGE RATES LOANS LOANS PROPERTIES BALANCE
- ---------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
6.0001% - 6.2500%..... 2 1.08% 2 $ 9,514,000
6.2501% - 6.5000%..... 1 0.54 1 4,350,000
6.5001% - 6.7500%..... 2 1.08 2 51,050,000
6.7501% - 7.0000%..... 15 8.06 50 307,217,854
7.0001% - 7.2500%..... 36 19.35 44 200,982,659
7.2501% - 7.5000%..... 59 31.72 67 327,735,173
7.5001% - 7.7500%..... 33 17.74 44 126,961,153
7.7501% - 8.0000%..... 21 11.29 27 51,517,775
8.0001% - 8.2500%..... 5 2.69 10 9,883,946
8.2501% - 8.5000%..... 7 3.76 7 83,158,975
8.5001% - 8.7500%..... 2 1.08 2 4,017,112
8.7501% - 9.0000%..... 1 0.54 1 3,470,313
9.2501% - 9.5000%..... 2 1.08 2 31,438,237
-- ----- -- --------------
Total/Weighted
Average ........... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MORTGAGE RATES BALANCE DSCR LTV RATIO RATE
- ---------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
6.0001% - 6.2500%..... 0.79% 1.68x 62.7% 6.17%
6.2501% - 6.5000%..... 0.36 1.48x 75.0% 6.49%
6.5001% - 6.7500%..... 4.21 1.53x 56.0% 6.74%
6.7501% - 7.0000%..... 25.36 1.90x 59.9% 6.85%
7.0001% - 7.2500%..... 16.59 1.38x 71.7% 7.10%
7.2501% - 7.5000%..... 27.06 1.40x 71.4% 7.36%
7.5001% - 7.7500%..... 10.48 1.55x 67.5% 7.63%
7.7501% - 8.0000%..... 4.25 1.52x 71.7% 7.85%
8.0001% - 8.2500%..... 0.82 1.46x 68.8% 8.08%
8.2501% - 8.5000%..... 6.87 1.45x 65.7% 8.40%
8.5001% - 8.7500%..... 0.33 1.39x 73.5% 8.57%
8.7501% - 9.0000%..... 0.29 1.23x 73.1% 8.83%
9.2501% - 9.5000%..... 2.60 2.66x 59.5% 9.47%
-----
Total/Weighted
Average ........... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
DISTRIBUTION OF MORTGAGE RATES
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MORTGAGE RATES LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ----------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6.2501% - 6.5000%...... 1 0.73% 1 $ 11,839,014 1.82% 1.42x 74.0% 6.37%
6.7501% - 7.0000% ..... 19 13.87 20 98,164,494 15.10 1.50x 77.5% 6.90%
7.0001% - 7.2500% ..... 53 38.69 54 198,938,160 30.60 1.46x 72.6% 7.15%
7.2501% - 7.5000% ..... 37 27.01 41 163,118,337 25.09 1.36x 75.4% 7.37%
7.5001% - 7.7500% ..... 15 10.95 15 34,100,323 5.24 1.38x 72.6% 7.59%
7.7501% - 8.0000% ..... 5 3.65 7 12,483,796 1.92 1.50x 64.0% 7.89%
8.0001% - 8.2500% ..... 5 3.65 9 46,372,858 7.13 1.27x 75.7% 8.09%
8.2501% - 8.5000% ..... 2 1.46 15 85,203,646 13.10 1.40x 61.7% 8.49%
-- ----- -- ------------ -----
Total/Weighted
Average ............ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-22
<PAGE>
DISTRIBUTION OF AMORTIZATION TYPES
AGGREGATE
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TYPE LOANS LOANS PROPERTIES BALANCE
- ---------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Balloon .............. 248 77.02% 308 $1,198,449,586
Hyperamortizing ...... 19 5.90 58 509,858,596
Fully Amortizing ..... 55 17.08 55 153,209,643
--- ----- --- --------------
Total/Weighted
Average ........... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TYPE BALANCE DSCR LTV RATIO RATE
- ---------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Balloon .............. 64.38% 1.45x 70.4% 7.49%
Hyperamortizing ...... 27.39 1.73x 64.5% 7.09%
Fully Amortizing ..... 8.23 1.43x 70.5% 7.40%
-----
Total/Weighted
Average ........... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
DISTRIBUTION OF AMORTIZATION TYPES
GROUP 1
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TYPE LOANS LOANS PROPERTIES BALANCE
- ---------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Balloon .............. 116 62.37% 150 $ 583,962,934
Hyperamortizing ...... 15 8.06 54 474,124,619
Fully Amortizing ..... 55 29.57 55 153,209,643
--- ----- --- --------------
Total/Weighted
Average ........... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TYPE BALANCE DSCR LTV RATIO RATE
- ---------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Balloon .............. 48.21% 1.49x 68.4% 7.53%
Hyperamortizing ...... 39.14 1.76x 63.4% 7.08%
Fully Amortizing ..... 12.65 1.43x 70.5% 7.40%
-----
Total/Weighted
Average ........... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
<PAGE>
DISTRIBUTION OF AMORTIZATION TYPES
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TYPE LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ---------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon .............. 133 97.08% 158 $614,486,652 94.50% 1.42x 72.3% 7.44%
Hyperamortizing ...... 4 2.92 4 35,733,976 5.50 1.34x 78.9% 7.31%
--- ----- --- ------------ -----
Total/Weighted
Average ........... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-23
<PAGE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
AGGREGATE
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
ORIGINAL MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Interest Only ............ 2 0.62% 2 $ 23,000,000
144 - 180 Months ......... 7 2.17 7 14,793,326
181 - 240 Months ......... 54 16.77 65 144,892,457
241 - 300 Months ......... 104 32.30 153 626,385,216
301 - 324 Months ......... 3 0.93 17 116,284,819
325 - 360 Months ......... 152 47.21 177 936,162,007
--- ----- --- --------------
Total/Weighted
Average ............... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Interest Only ............ 1.24% 1.69x 51.3% 7.02%
144 - 180 Months ......... 0.79 1.40x 65.9% 7.22%
181 - 240 Months ......... 7.78 1.45x 69.5% 7.46%
241 - 300 Months ......... 33.65 1.63x 65.3% 7.41%
301 - 324 Months ......... 6.25 1.39x 62.1% 8.42%
325 - 360 Months ......... 50.29 1.48x 72.3% 7.21%
-----
Total/Weighted
Average ............... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
ORIGINAL MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Interest Only ............ 1 0.54% 1 $ 15,000,000
144 - 180 Months ......... 6 3.23 6 10,359,863
181 - 240 Months ......... 53 28.49 64 142,903,078
241 - 300 Months ......... 69 37.10 112 509,972,358
301 - 324 Months ......... 2 1.08 2 31,286,395
325 - 360 Months ......... 55 29.57 74 501,775,503
-- ----- --- --------------
Total/Weighted
Average ............... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Interest Only ............ 1.24% 1.45x 52.3% 6.91%
144 - 180 Months ......... 0.86 1.51x 63.4% 7.15%
181 - 240 Months ......... 11.80 1.44x 69.7% 7.46%
241 - 300 Months ......... 42.10 1.70x 63.8% 7.35%
301 - 324 Months ......... 2.58 1.38x 61.6% 8.46%
325 - 360 Months ......... 41.42 1.54x 69.7% 7.24%
-----
Total/Weighted
Average ............... 100.00% 1.59x 66.7% 7.34 %
======
</TABLE>
<PAGE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest Only ...... 1 0.73% 1 $ 8,000,000 1.23% 2.14x 49.4% 7.22%
144 - 180 Months ... 1 0.73 1 4,433,463 0.68 1.13x 71.5% 7.41%
181 - 240 Months ... 1 0.73 1 1,989,379 0.31 1.71x 59.4% 7.12%
241 - 300 Months ... 35 25.55 41 116,412,858 17.90 1.36x 72.1% 7.71%
301 - 324 Months ... 2 1.46 15 84,998,424 13.07 1.39x 62.2% 8.41%
325 - 360 Months ... 97 70.80 103 434,386,504 66.81 1.43x 75.4% 7.17%
-- ----- --- ------------ -----
Total/Weighted
Average ......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-24
<PAGE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
AGGREGATE
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Interest Only ............ 3 0.93% 3 $ 70,000,000
131 - 150 Months ......... 1 0.31 1 1,180,618
171 - 190 Months ......... 6 1.86 6 13,612,708
191 - 210 Months ......... 1 0.31 1 1,657,162
211 - 230 Months ......... 4 1.24 4 7,957,917
231 - 250 Months ......... 51 15.84 62 141,419,063
251 - 270 Months ......... 2 0.62 2 11,303,406
271 - 290 Months ......... 5 1.55 5 18,966,033
291 - 310 Months ......... 94 29.19 143 542,974,093
311 - 330 Months ......... 3 0.93 17 116,284,819
331 - 360 Months ......... 152 47.20 177 936,162,007
--- ----- --- --------------
Total/Weighted
Average ............... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Interest Only ............ 3.76% 1.60x 52.9% 6.84%
131 - 150 Months ......... 0.06 1.68x 58.3% 8.17%
171 - 190 Months ......... 0.73 1.37x 66.5% 7.14%
191 - 210 Months ......... 0.09 1.20x 78.9% 6.97%
211 - 230 Months ......... 0.43 1.21x 84.2% 7.67%
231 - 250 Months ......... 7.60 1.46x 68.7% 7.44%
251 - 270 Months ......... 0.61 1.32x 77.1% 7.33%
271 - 290 Months ......... 1.02 1.34x 75.8% 8.21%
291 - 310 Months ......... 29.17 1.66x 65.6% 7.45%
311 - 330 Months ......... 6.25 1.39x 62.1% 8.42%
331 - 360 Months ......... 50.29 1.48x 72.3% 7.21%
-----
Total/Weighted
Average ............... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Interest Only ............ 2 1.08% 2 $ 62,000,000
131 - 150 Months ......... 1 0.54 1 1,180,618
171 - 190 Months ......... 5 2.69 5 9,179,245
191 - 210 Months ......... 1 0.54 1 1,657,162
211 - 230 Months ......... 4 2.15 4 7,957,917
231 - 250 Months ......... 50 26.88 61 139,429,684
251 - 270 Months ......... 2 1.08 2 11,303,406
271 - 290 Months ......... 5 2.69 5 18,966,033
291 - 310 Months ......... 59 31.72 102 426,561,235
311 - 330 Months ......... 2 1.08 2 31,286,395
331 - 360 Months ......... 55 29.57 74 501,775,503
-- ----- --- --------------
Total/Weighted
Average ............... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<PAGE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Interest Only ............ 5.12% 1.53x 53.4% 6.79%
131 - 150 Months ......... 0.10 1.68x 58.3% 8.17%
171 - 190 Months ......... 0.76 1.49x 64.1% 7.01%
191 - 210 Months ......... 0.14 1.20x 78.9% 6.97%
211 - 230 Months ......... 0.66 1.21x 84.2% 7.67%
231 - 250 Months ......... 11.51 1.46x 68.8% 7.45%
251 - 270 Months ......... 0.93 1.32x 77.1% 7.33%
271 - 290 Months ......... 1.57 1.34x 75.8% 8.21%
291 - 310 Months ......... 35.22 1.74x 63.9% 7.38%
311 - 330 Months ......... 2.58 1.38x 61.6% 8.46%
331 - 360 Months ......... 41.42 1.54x 69.7% 7.24%
-----
Total/Weighted
Average ............... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
A-25
<PAGE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
AMORTIZATION TERM LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------------ ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest Only .......... 1 0.73% 1 $ 8,000,000 1.23% 2.14x 49.4% 7.22%
171 - 190 Months ....... 1 0.73 1 4,433,463 0.68 1.13x 71.5% 7.41%
231 - 250 Months ....... 1 0.73 1 1,989,379 0.31 1.71x 59.4% 7.12%
291 - 310 Months ....... 35 25.55 41 116,412,858 17.90 1.36x 72.1% 7.71%
311 - 330 Months ....... 2 1.46 15 84,998,424 13.07 1.39x 62.2% 8.41%
331 - 360 Months ....... 97 70.80 103 434,386,504 66.81 1.43x 75.4% 7.17%
-- ----- --- ------------ -----
Total/Weighted
Average .............. 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
AGGREGATE
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
ORIGINAL TERM MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
TO MATURITY LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
84 - 120 Months ......... 253 78.57% 351 $1,563,178,208
121 - 180 Months ......... 20 6.21 21 155,489,837
181 - 240 Months ......... 46 14.29 46 127,401,004
241 - 260 Months ......... 3 0.93 3 15,448,776
--- ----- --- --------------
Total/Weighted
Average ............... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL TERM CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TO MATURITY BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
84 - 120 Months ......... 83.97% 1.55x 68.2% 7.38%
121 - 180 Months ......... 8.35 1.38x 72.4% 7.22%
181 - 240 Months ......... 6.84 1.43x 70.3% 7.45%
241 - 260 Months ......... 0.83 1.34x 76.2% 7.22%
-----
Total/Weighted
Average ............... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
ORIGINAL TERM MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
TO MATURITY LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
84 - 120 Months ......... 118 63.44% 190 $ 916,050,656
121 - 180 Months ......... 19 10.22 20 152,396,761
181 - 240 Months ......... 46 24.73 46 127,401,004
241 - 260 Months ......... 3 1.61 3 15,448,776
--- ----- --- --------------
Total/Weighted
Average ............... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL TERM CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TO MATURITY BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
84 - 120 Months ......... 75.63% 1.65x 65.1% 7.34%
121 - 180 Months ......... 12.58 1.38x 72.2% 7.22%
181 - 240 Months ......... 10.52 1.43x 70.3% 7.45%
241 - 260 Months ......... 1.28 1.34x 76.2% 7.22%
-----
Total/Weighted
Average ............... 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
A-26
<PAGE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
ORIGINAL TERM MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TO MATURITY LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
84 - 120 Months ... 136 99.27% 161 $647,127,552 99.52% 1.42x 72.7% 7.43%
121 - 180 Months ... 1 0.73 1 3,093,076 0.48 1.34x 79.3% 7.36%
--- ----- --- ------------ -----
Total/Weighted
Average ......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
DISTRIBUTION OF REMAINING TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
AGGREGATE
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
TERM TO MATURITY LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ ----------------
<S> <C> <C> <C> <C>
51 - 70 Months ......... 1 0.31% 1 $ 18,780,204
71 - 90 Months ......... 3 0.93 3 16,435,134
91 - 110 Months ......... 4 1.24 4 20,645,959
111 - 130 Months ......... 249 77.33 348 1,609,291,139
131 - 150 Months ......... 2 0.62 2 4,178,056
151 - 170 Months ......... 2 0.62 2 6,689,339
171 - 190 Months ......... 12 3.73 12 42,648,215
191 - 210 Months ......... 1 0.31 1 1,657,162
211 - 230 Months ......... 4 1.24 4 7,957,917
231 - 250 Months ......... 43 13.35 43 123,927,610
251 - 270 Months ......... 1 0.31 1 9,307,092
--- ----- --- --------------
Total/Weighted
Average ............... 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TERM TO MATURITY BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
51 - 70 Months ......... 1.01% 1.17x 76.7% 8.32%
71 - 90 Months ......... 0.88 1.27x 78.5% 7.27%
91 - 110 Months ......... 1.11 1.34x 75.8% 7.93%
111 - 130 Months ......... 86.45 1.55x 68.2% 7.35%
131 - 150 Months ......... 0.22 1.39x 70.6% 7.18%
151 - 170 Months ......... 0.36 1.21x 75.2% 8.70%
171 - 190 Months ......... 2.29 1.35x 73.1% 7.25%
191 - 210 Months ......... 0.09 1.20x 78.9% 6.97%
211 - 230 Months ......... 0.43 1.21x 84.2% 7.67%
231 - 250 Months ......... 6.66 1.44x 69.4% 7.42%
251 - 270 Months ......... 0.50 1.32x 78.9% 7.26%
-----
Total/Weighted
Average ............... 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
A-27
<PAGE>
DISTRIBUTION OF REMAINING TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
TERM TO MATURITY LOANS LOANS PROPERTIES BALANCE
- -------------------------- ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
51 - 70 Months ......... 1 0.54% 1 $ 18,780,204
71 - 90 Months ......... 2 1.08 2 5,755,534
91 - 110 Months ......... 3 1.61 3 13,004,278
111 - 120 Months ......... 115 61.83 188 977,391,791
131 - 150 Months ......... 2 1.08 2 4,178,056
151 - 170 Months ......... 2 1.08 2 6,689,339
171 - 190 Months ......... 12 6.45 12 42,648,215
191 - 210 Months ......... 1 0.54 1 1,657,162
211 - 230 Months ......... 4 2.15 4 7,957,917
231 - 250 Months ......... 43 23.12 43 123,927,610
251 - 270 Months ......... 1 0.54 1 9,307,092
--- ----- --- --------------
Total/Weighted
Average ............... 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TERM TO MATURITY BALANCE DSCR LTV RATIO RATE
- -------------------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
51 - 70 Months ......... 1.55% 1.17x 76.7% 8.32%
71 - 90 Months ......... 0.48 1.30x 76.8% 7.16%
91 - 110 Months ......... 1.07 1.33x 77.3% 8.16%
111 - 120 Months ......... 80.69 1.64x 65.4% 7.29%
131 - 150 Months ......... 0.34 1.39x 70.6% 7.18%
151 - 170 Months ......... 0.55 1.21x 75.2% 8.70%
171 - 190 Months ......... 3.52 1.35x 73.1% 7.25%
191 - 210 Months ......... 0.14 1.20x 78.9% 6.97%
211 - 230 Months ......... 0.66 1.21x 84.2% 7.67%
231 - 250 Months ......... 10.23 1.44x 69.4% 7.42%
251 - 270 Months ......... 0.77 1.32x 78.9% 7.26%
-----
Total/Weighted
Average ............... 100.00% 1.59x 66.7% 7.34 %
======
</TABLE>
DISTRIBUTION OF REMAINING TERM TO MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
REMAINING MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
TERM TO MATURITY LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- --------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
71 - 90 Months 1 0.73% 1 $ 10,679,600 1.64% 1.26x 79.4% 7.33%
91 - 110 Months 1 0.73 1 7,641,681 1.18 1.36x 73.1% 7.54%
111 - 130 Months 135 98.54 160 631,899,347 97.18 1.42x 72.6% 7.43%
--- ----- --- ------------ -----
Total/Weighted
Average .......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
<PAGE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
AGGREGATE
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
CUT-OFF DATE MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
LTV RATIOS LOANS LOANS PROPERTIES BALANCE
- ------------------------ ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
30.1% - 50.0% ......... 7 2.17% 7 $ 18,402,755
50.1% - 60.0% ......... 24 7.45 60 321,451,506
60.1% - 65.0% ......... 33 10.25 61 351,671,704
65.1% - 70.0% ......... 44 13.66 63 145,240,871
70.1% - 75.0% ......... 121 37.58 134 562,464,197
75.1% - 80.0% ......... 71 22.05 74 349,040,666
80.1% - 85.0% ......... 14 4.35 14 72,712,832
85.1% - 90.0% ......... 6 1.86 6 36,959,182
95.1% - 100.0% ......... 2 0.62 2 3,574,111
--- ----- --- --------------
Total/Weighted
Average ............. 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
LTV RATIOS BALANCE DSCR LTV RATIO RATE
- ------------------------ -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
30.1% - 50.0% ......... 0.99% 2.07x 47.6% 7.16%
50.1% - 60.0% ......... 17.27 1.78x 56.1% 7.22%
60.1% - 65.0% ......... 18.89 1.73x 61.9% 7.65%
65.1% - 70.0% ......... 7.80 1.46x 67.9% 7.35%
70.1% - 75.0% ......... 30.22 1.41x 72.5% 7.32%
75.1% - 80.0% ......... 18.75 1.36x 78.3% 7.32%
80.1% - 85.0% ......... 3.91 1.29x 81.2% 7.24%
85.1% - 90.0% ......... 1.99 1.29x 86.9% 7.72%
95.1% - 100.0% ......... 0.19 1.00x 97.0% 7.04%
-----
Total/Weighted
Average ............. 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
A-28
<PAGE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
GROUP 1
<TABLE>
<CAPTION>
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE
CUT-OFF DATE MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
LTV RATIOS LOANS LOANS PROPERTIES BALANCE
- ------------------------ ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
30.1% - 50.0% ......... 6 3.23% 6 $ 10,402,755
50.1% - 60.0% ......... 16 8.60 52 295,315,847
60.1% - 65.0% ......... 24 12.90 38 252,833,709
65.1% - 70.0% ......... 25 13.44 35 78,709,581
70.1% - 75.0% ......... 78 41.94 91 398,239,293
75.1% - 80.0% ......... 28 15.05 28 142,620,187
80.1% - 85.0% ......... 6 3.23 6 28,126,639
85.1% - 90.0% ......... 1 0.54 1 1,475,074
95.1% - 100.0% ......... 2 1.08 2 3,574,111
-- ----- -- --------------
Total/Weighted
Average ............. 186 100.00% 259 $1,211,297,197
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
LTV RATIOS BALANCE DSCR LTV RATIO RATE
- ------------------------ -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
30.1% - 50.0% ......... 0.86% 2.01x 46.2% 7.11%
50.1% - 60.0% ......... 24.38 1.81x 56.0% 7.20%
60.1% - 65.0% ......... 20.87 1.85x 62.0% 7.40%
65.1% - 70.0% ......... 6.50 1.41x 68.0% 7.35%
70.1% - 75.0% ......... 32.88 1.41x 72.5% 7.33%
75.1% - 80.0% ......... 11.77 1.32x 78.0% 7.56%
80.1% - 85.0% ......... 2.32 1.22x 81.2% 7.34%
85.1% - 90.0% ......... 0.12 1.00x 86.8% 6.84%
95.1% - 100.0% ......... 0.30 1.00x 97.0% 7.04%
-----
Total/Weighted
Average ............. 100.00% 1.59x 66.7% 7.34%
======
</TABLE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
CUT-OFF DATE MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
LTV RATIOS LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
30.1% - 50.0% ..... 1 0.73% 1 $ 8,000,000 1.23% 2.14x 49.4% 7.22%
50.1% - 60.0% ..... 8 5.84 8 26,135,659 4.02 1.47x 56.8% 7.52%
60.1% - 65.0% ..... 10 7.30 23 98,837,995 15.20 1.42x 61.5% 8.30%
65.1% - 70.0% ..... 19 13.87 28 66,531,290 10.23 1.53x 67.7% 7.35%
70.1% - 75.0% ..... 43 31.39 43 164,224,904 25.26 1.40x 72.5% 7.28%
75.1% - 80.0% ..... 43 31.39 46 206,420,479 31.75 1.39x 78.4% 7.16%
80.1% - 85.0% ..... 8 5.84 8 44,586,193 6.86 1.34x 81.1% 7.18%
85.1% - 90.0% ..... 5 3.65 5 35,484,108 5.46 1.30x 86.9% 7.75%
-- ----- -- ------------ -----
Total/Weighted
Average ........ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-29
<PAGE>
DISTRIBUTION OF YEAR OF ORIGINATION
AGGREGATE
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
ORIGINATION LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------- ----------- ---------- ------------ ----------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 ............... 308 95.65% 392 $1,655,160,995 88.91% 1.55x 69.1% 7.27%
1997 ............... 14 4.35 29 206,356,831 11.09 1.34x 66.1% 8.17%
--- ----- --- -------------- -----
Total/Weighted
Average ......... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=== ====== === ============== ======
</TABLE>
DISTRIBUTION OF YEAR OF ORIGINATION
GROUP 1
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
ORIGINATION LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------- ----------- ---------- ------------ ----------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 ............... 173 93.01% 245 $1,092,418,845 90.19% 1.62x 66.5% 7.27%
1997 ............... 13 6.99 14 118,878,352 9.81 1.31x 69.0% 7.99%
--- ----- --- -------------- -----
Total/Weighted
Average ......... 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=== ====== === ============== ======
</TABLE>
DISTRIBUTION OF YEAR OF ORIGINATION
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
ORIGINATION LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 .............. 135 98.54% 147 $562,742,150 86.55% 1.42x 74.3% 7.28%
1997 .............. 2 1.46 15 87,478,478 13.45 1.39x 62.2% 8.42%
--- ----- --- ------------ -----
Total/Weighted
Average ........ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-30
<PAGE>
DISTRIBUTION OF YEAR OF MATURITY/ANTICIPATED REPAYMENT DATE
AGGREGATE
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MATURITY LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------- ----------- ---------- ------------ ---------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2004 ............... 1 0.31% 1 $ 18,780,204 1.01% 1.17x 76.7% 8.32%
2005 ............... 3 0.93 3 16,435,134 0.88 1.27x 78.5% 7.27%
2007 ............... 4 1.24 4 20,645,959 1.11 1.34x 75.8% 7.93%
2008 ............... 249 77.33 348 1,609,291,139 86.45 1.55x 68.2% 7.35%
2010 ............... 2 0.62 2 4,178,056 0.22 1.39x 70.6% 7.18%
2012 ............... 2 0.62 2 6,689,339 0.36 1.21x 75.2% 8.70%
2013 ............... 12 3.73 12 42,648,215 2.29 1.35x 73.1% 7.25%
2016 ............... 2 0.62 2 3,293,306 0.18 1.36x 75.8% 7.49%
2017 ............... 4 1.24 4 11,877,104 0.64 1.18x 81.8% 7.38%
2018 ............... 40 12.42 40 112,230,594 6.03 1.46x 68.9% 7.45%
2019 ............... 3 0.93 3 15,448,776 0.83 1.34x 76.2% 7.22%
--- ----- --- -------------- -----
Total/Weighted
Average ......... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=== ====== === ============== ======
</TABLE>
DISTRIBUTION OF YEAR OF MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 1
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MATURITY LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------- ----------- ---------- ------------ ----------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2004 .............. 1 0.54% 1 $ 18,780,204 1.55% 1.17x 76.7% 8.32%
2005 .............. 2 1.08 2 5,755,534 0.48 1.30x 76.8% 7.16%
2007 .............. 3 1.61 3 13,004,278 1.07 1.33x 77.3% 8.16%
2008 .............. 115 61.83 188 977,391,791 80.69 1.64x 65.4% 7.29%
2010 .............. 2 1.08 2 4,178,056 0.34 1.39x 70.6% 7.18%
2012 .............. 2 1.08 2 6,689,339 0.55 1.21x 75.2% 8.70%
2013 .............. 12 6.45 12 42,648,215 3.52 1.35x 73.1% 7.25%
2016 .............. 2 1.08 2 3,293,306 0.27 1.36x 75.8% 7.49%
2017 .............. 4 2.15 4 11,877,104 0.98 1.18x 81.8% 7.38%
2018 .............. 40 21.51 40 112,230,594 9.27 1.46x 68.9% 7.45%
2019 .............. 3 1.61 3 15,448,776 1.28 1.34x 76.2% 7.22%
--- ----- --- -------------- -----
Total/Weighted
Average ........ 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=== ====== === ============== ======
</TABLE>
A-31
<PAGE>
DISTRIBUTION OF YEAR OF MATURITY/ANTICIPATED REPAYMENT DATE
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
YEAR OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
MATURITY LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------ ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2005 ............. 1 0.73% 1 $ 10,679,600 1.64% 1.26x 79.4% 7.33%
2007 ............. 1 0.73 1 7,641,681 1.18 1.36x 73.1% 7.54%
2008 ............. 135 98.54 160 631,899,347 97.18 1.42x 72.6% 7.43%
--- ----- --- ------------ -----
Total/Weighted
Average ......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
DISTRIBUTION OF SEASONING
AGGREGATE
<TABLE>
<CAPTION>
NUMBER OF % OF NUMBER OF AGGREGATE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE
SEASONING LOANS LOANS PROPERTIES BALANCE
- ------------------------ ----------- ---------- ------------ -----------------
<S> <C> <C> <C> <C>
0 - 6 Months ......... 276 85.71% 358 $1,532,635,601
7 - 12 Months ......... 42 13.04 59 295,279,721
13 - 16 Months ......... 4 1.24 4 33,602,503
--- ----- --- --------------
Total/Weighted
Average ............. 322 100.00% 421 $1,861,517,825
=== ====== === ==============
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
SEASONING BALANCE DSCR LTV RATIO RATE
- ------------------------ -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
0 - 6 Months ......... 82.33% 1.56x 69.3% 7.27%
7 - 12 Months ......... 15.86 1.41x 65.2% 7.77%
13 - 16 Months ......... 1.81 1.22x 76.9% 8.43%
-----
Total/Weighted
Average ............. 100.00% 1.53x 68.8% 7.37%
======
</TABLE>
DISTRIBUTION OF SEASONING
GROUP 1
<TABLE>
<CAPTION>
% OF
AGGREGATE WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE CURRENT AVERAGE AVERAGE AVERAGE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE PRINCIPAL UNDERWRITTEN CUT-OFF DATE MORTGAGE
SEASONING LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------------ ----------- ---------- ------------ ----------------- ----------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 - 6 Months ......... 163 87.63% 235 $1,049,802,043 86.67% 1.63x 66.6% 7.27%
7 - 12 Months ......... 19 10.22 20 127,892,651 10.56 1.36x 64.8% 7.63%
13 - 16 Months ......... 4 2.15 4 33,602,503 2.77 1.22x 76.9% 8.43%
--- ----- --- -------------- -----
Total/Weighted
Average ............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=== ====== === ============== ======
</TABLE>
<PAGE>
DISTRIBUTION OF SEASONING
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
RANGE OF MORTGAGE MORTGAGE MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
SEASONING LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------- ----------- ---------- ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 - 6 Months ...... 113 82.48% 123 $482,833,558 74.26% 1.40x 75.2% 7.28%
7 - 12 Months ..... 24 17.52 39 167,387,070 25.74 1.46x 65.4% 7.88%
--- ----- --- ------------ -----
Total/Weighted
Average ........ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ====== === ============ ======
</TABLE>
A-32
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
AGGREGATE
<TABLE>
<CAPTION>
% OF
AGGREGATE WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE CUT-OFF DATE AVERAGE AVERAGE AVERAGE
MORTGAGED CUT-OFF DATE PRINCIPAL UNDERWRITTEN CUT-OFF DATE MORTGAGE
PROPERTY STATE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------------------ ------------ ----------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
California ................... 41 $ 294,077,203 15.80% 1.51x 68.5% 7.53%
New York ..................... 30 163,395,938 8.78 1.59x 67.4% 7.71%
Texas ........................ 48 157,716,858 8.47 1.65x 70.2% 7.21%
Virginia ..................... 22 127,968,671 6.87 1.42x 72.3% 7.20%
Ohio ......................... 19 98,318,576 5.28 1.46x 71.4% 7.58%
Washington ................... 13 83,788,247 4.50 1.63x 64.1% 7.19%
Florida ...................... 25 67,734,586 3.64 1.41x 74.2% 7.39%
Oregon ....................... 8 62,941,850 3.38 1.68x 63.1% 7.21%
Maryland ..................... 14 58,684,345 3.15 1.45x 69.3% 7.43%
District of Columbia ......... 2 52,315,613 2.81 1.52x 55.6% 6.77%
Michigan ..................... 9 52,148,068 2.80 1.41x 70.1% 7.64%
Pennsylvania ................. 5 50,654,823 2.72 1.55x 71.0% 7.23%
Tennessee .................... 12 44,497,695 2.39 1.45x 72.4% 7.28%
Wisconsin .................... 4 40,135,242 2.16 1.67x 71.4% 6.93%
Oklahoma ..................... 3 39,820,432 2.14 1.38x 74.5% 7.23%
Puerto Rico .................. 2 38,377,755 2.06 1.62x 66.9% 7.89%
New Mexico ................... 23 37,246,054 2.00 1.52x 72.2% 7.54%
Massachusetts ................ 13 35,148,109 1.89 1.55x 67.0% 7.12%
Georgia ...................... 10 34,245,325 1.84 1.55x 70.3% 7.34%
Louisiana .................... 9 33,964,040 1.82 1.46x 73.9% 7.33%
Connecticut .................. 11 28,842,897 1.55 1.54x 63.6% 7.28%
Illinois ..................... 7 25,801,584 1.39 1.57x 66.9% 7.08%
Arizona ...................... 6 22,140,526 1.19 1.36x 67.2% 7.68%
Kentucky ..................... 9 20,300,455 1.09 1.45x 72.4% 7.52%
Minnesota .................... 9 20,025,695 1.08 1.46x 72.2% 7.28%
Idaho ........................ 3 19,319,783 1.04 1.85x 59.5% 6.94%
Colorado ..................... 8 19,069,730 1.02 1.50x 71.6% 7.12%
Arkansas ..................... 5 15,919,238 0.86 1.42x 69.5% 7.63%
Indiana ...................... 4 14,654,090 0.79 1.44x 65.3% 8.14%
Missouri ..................... 2 13,484,050 0.72 1.95x 62.7% 6.90%
Nebraska ..................... 7 12,777,182 0.69 1.37x 66.8% 7.64%
Utah ......................... 4 11,606,330 0.62 1.79x 60.0% 7.16%
South Carolina ............... 4 10,090,706 0.54 1.44x 72.7% 7.37%
New Hampshire ................ 2 8,082,073 0.43 1.26x 71.5% 6.35%
Iowa ......................... 3 7,384,419 0.40 1.77x 61.1% 7.09%
Nevada ....................... 3 6,919,163 0.37 1.46x 61.6% 7.28%
Alabama ...................... 9 5,949,607 0.32 1.61x 62.9% 7.74%
Rhode Island ................. 3 5,765,973 0.31 1.46x 75.1% 7.15%
Vermont ...................... 1 5,161,627 0.28 1.32x 78.6% 7.05%
Kansas ....................... 2 3,978,438 0.21 1.40x 64.7% 7.58%
Mississippi .................. 3 3,334,171 0.18 1.38x 74.3% 7.21%
West Virginia ................ 1 2,290,025 0.12 1.35x 76.3% 7.06%
North Carolina ............... 1 2,094,922 0.11 1.50x 67.6% 7.76%
New Jersey ................... 1 1,998,409 0.11 1.32x 64.5% 7.15%
Delaware ..................... 1 1,347,306 0.07 1.69x 72.8% 7.71%
-- -------------- -----
Total/Weighted
Average ................... 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=== ============== ======
</TABLE>
A-33
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
GROUP 1
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
PROPERTY STATE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------------------ ------------ ----------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
California ................... 18 $ 163,984,824 13.54% 1.61x 66.6% 7.50%
Virginia ..................... 19 118,342,168 9.77 1.42x 71.8% 7.18%
New York ..................... 21 109,492,106 9.04 1.71x 64.8% 7.92%
Texas ........................ 26 101,517,481 8.38 1.74x 66.9% 7.16%
Washington ................... 10 68,086,173 5.62 1.66x 62.5% 7.19%
Oregon ....................... 6 56,680,546 4.68 1.71x 63.8% 7.09%
District of Columbia ......... 2 52,315,613 4.32 1.52x 55.6% 6.77%
Michigan ..................... 6 46,713,946 3.86 1.41x 69.9% 7.68%
Puerto Rico .................. 2 38,377,755 3.17 1.62x 66.9% 7.89%
Ohio ......................... 9 37,607,310 3.10 1.72x 64.2% 7.14%
Oklahoma ..................... 1 32,909,936 2.72 1.40x 73.1% 7.27%
Florida ...................... 14 32,479,827 2.68 1.42x 74.1% 7.47%
Massachusetts ................ 10 29,549,314 2.44 1.57x 65.1% 7.10%
New Mexico ................... 19 29,389,213 2.43 1.60x 69.3% 7.51%
Maryland ..................... 10 22,979,369 1.90 1.41x 69.8% 7.51%
Tennessee .................... 9 21,773,154 1.80 1.49x 68.3% 7.56%
Pennsylvania ................. 3 21,506,001 1.78 1.84x 59.1% 7.08%
Illinois ..................... 5 21,286,193 1.76 1.53x 67.8% 7.12%
Louisiana .................... 4 17,863,630 1.47 1.33x 74.8% 7.30%
Georgia ...................... 5 17,132,700 1.41 1.49x 71.8% 7.32%
Colorado ..................... 7 16,431,195 1.36 1.51x 71.2% 7.08%
Kentucky ..................... 8 16,106,509 1.33 1.49x 72.1% 7.65%
Idaho ........................ 2 15,735,058 1.30 1.94x 56.7% 6.89%
Arizona ...................... 4 15,157,491 1.25 1.34x 69.9% 7.37%
Connecticut .................. 9 15,135,208 1.25 1.33x 66.5% 7.30%
Wisconsin .................... 1 13,551,996 1.12 1.94x 56.7% 6.89%
Missouri ..................... 2 13,484,050 1.11 1.95x 62.7% 6.90%
Utah ......................... 3 10,260,104 0.85 1.82x 59.4% 7.06%
Arkansas ..................... 3 9,374,872 0.77 1.36x 73.0% 7.60%
New Hampshire ................ 2 8,082,073 0.67 1.26x 71.5% 6.35%
South Carolina ............... 3 8,021,714 0.66 1.48x 71.7% 7.28%
Nebraska ..................... 2 6,117,250 0.51 1.40x 69.8% 7.14%
Iowa ......................... 2 5,429,304 0.45 1.94x 56.7% 6.89%
Nevada ....................... 2 4,929,784 0.41 1.36x 62.5% 7.35%
Alabama ...................... 5 4,014,193 0.33 1.73x 61.7% 7.61%
Indiana ...................... 1 3,662,008 0.30 1.56x 74.7% 7.53%
Mississippi .................. 2 2,374,905 0.20 1.34x 72.0% 7.16%
North Carolina ............... 1 2,094,922 0.17 1.50x 67.6% 7.76%
Delaware ..................... 1 1,347,306 0.11 1.69x 72.8% 7.71%
-- -------------- -----
Total/Weighted
Average ................... 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=== ============== ======
</TABLE>
A-34
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
GROUP 2
<TABLE>
<CAPTION>
% OF WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE AGGREGATE AVERAGE AVERAGE AVERAGE
MORTGAGED CUT-OFF DATE CUT-OFF DATE UNDERWRITTEN CUT-OFF DATE MORTGAGE
PROPERTY STATE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ------------------------ ------------ -------------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
California ............. 23 $130,092,379 20.01% 1.37x 70.9% 7.56%
Ohio ................... 10 60,711,266 9.34 1.29x 75.9% 7.85%
Texas .................. 22 56,199,377 8.64 1.49x 76.1% 7.30%
New York ............... 9 53,903,832 8.29 1.34x 72.5% 7.29%
Maryland ............... 4 35,704,975 5.49 1.48x 68.9% 7.38%
Florida ................ 11 35,254,758 5.42 1.39x 74.3% 7.31%
Pennsylvania ........... 2 29,148,822 4.48 1.33x 79.9% 7.34%
Wisconsin .............. 3 26,583,246 4.09 1.52x 78.8% 6.94%
Tennessee .............. 3 22,724,540 3.49 1.41x 76.4% 7.01%
Minnesota .............. 9 20,025,695 3.08 1.46x 72.2% 7.28%
Georgia ................ 5 17,112,626 2.63 1.61x 68.8% 7.36%
Louisiana .............. 5 16,100,410 2.48 1.60x 73.0% 7.37%
Washington ............. 3 15,702,074 2.41 1.49x 71.4% 7.20%
Connecticut ............ 2 13,707,689 2.11 1.78x 60.3% 7.26%
Indiana ................ 3 10,992,083 1.69 1.40x 62.1% 8.34%
Virginia ............... 3 9,626,503 1.48 1.42x 78.6% 7.42%
New Mexico ............. 4 7,856,841 1.21 1.23x 83.1% 7.65%
Arizona ................ 2 6,983,035 1.07 1.41x 61.3% 8.35%
Oklahoma ............... 2 6,910,497 1.06 1.29x 80.9% 7.01%
Nebraska ............... 5 6,659,932 1.02 1.35x 64.1% 8.10%
Arkansas ............... 2 6,544,366 1.01 1.51x 64.5% 7.67%
Oregon ................. 2 6,261,304 0.96 1.39x 56.8% 8.25%
Rhode Island ........... 3 5,765,973 0.89 1.46x 75.1% 7.15%
Massachusetts .......... 3 5,598,795 0.86 1.40x 77.1% 7.19%
Michigan ............... 3 5,434,123 0.84 1.42x 71.7% 7.26%
Vermont ................ 1 5,161,627 0.79 1.32x 78.6% 7.05%
Illinois ............... 2 4,515,392 0.69 1.76x 62.9% 6.93%
Kentucky ............... 1 4,193,946 0.65 1.30x 73.6% 7.02%
Kansas ................. 2 3,978,438 0.61 1.40x 64.7% 7.58%
Idaho .................. 1 3,584,725 0.55 1.43x 71.7% 7.15%
Colorado ............... 1 2,638,535 0.41 1.43x 73.5% 7.32%
West Virginia .......... 1 2,290,025 0.35 1.35x 76.3% 7.06%
South Carolina ......... 1 2,068,993 0.32 1.29x 76.6% 7.71%
New Jersey ............. 1 1,998,409 0.31 1.32x 64.5% 7.15%
Nevada ................. 1 1,989,379 0.31 1.71x 59.4% 7.12%
Iowa ................... 1 1,955,115 0.30 1.30x 73.2% 7.63%
Alabama ................ 4 1,935,414 0.30 1.36x 65.3% 8.03%
Utah ................... 1 1,346,225 0.21 1.57x 64.1% 7.88%
Mississippi ............ 1 959,266 0.15 1.49x 79.9% 7.35%
-- ------------ -----
Total/Weighted
Average ............. 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=== ============ ======
</TABLE>
A-35
<PAGE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
AGGREGATE
<TABLE>
<CAPTION>
WEIGHTED
WEIGHTED AVERAGE WEIGHTED
% OF AVERAGE WEIGHTED ORIGINAL AVERAGE
NUMBER OF AGGREGATE REMAINING AVERAGE TERM WITH OPEN
MORTGAGE AGGREGATE CUT-OFF DATE LOCKOUT REMAINING ALL PENALTIES PERIOD
PREPAYMENT RESTRICTION LOANS CUT-OFF DATE BALANCE TERM MONTHS TERM MONTHS MONTHS MONTHS
- -------------------------- ----------- ----------------- -------------- ------------- ------------- --------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Lockout / Defeasance ..... 198 $1,287,364,804 69.16% 29.8 128.3 129.1 2.6
Lockout / Greater of
YM or 1% ................ 122 461,520,480 24.79 41.0 123.8 123.1 6.0
Lockout / Yield
Maintenance ............. 1 3,482,939 0.19 42.0 114.0 114.0 6.0
Lockout / 1 Year Open..... 1 109,149,602 5.86 99.0 111.0 108.0 12.0
--- -------------- -----
Total/Weighted
Average ............... 322 $1,861,517,825 100.00% 36.7 126.1 126.3 4.0
=== ============== ======
</TABLE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
GROUP 1
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE
WEIGHTED ORIGINAL WEIGHTED
% OF AVERAGE WEIGHTED TERM AVERAGE
NUMBER OF AGGREGATE REMAINING AVERAGE WITH ALL OPEN
MORTGAGE AGGREGATE CUT-OFF DATE LOCKOUT REMAINING PENALTIES PERIOD
PREPAYMENT RESTRICTION LOANS CUT-OFF DATE BALANCE TERM MONTHS TERM MONTHS MONTHS MONTHS
- ------------------------ ----------- ----------------- -------------- ------------- ------------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Lockout / Defeasance ... 116 $ 905,439,442 74.75% 28.8 133.5 134.8 2.1
Lockout / Greater of
YM or 1% .............. 69 276,544,950 22.83 40.9 129.2 129.3 5.8
Lockout / 1 Year Open .. 1 29,312,804 2.42 99.0 111.0 108.0 12.0
--- -------------- -----
Total/Weighted
Average ............. 186 $1,211,297,197 100.00% 33.3 132.0 132.9 3.2
=== ============== ======
</TABLE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
GROUP 2
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
AVERAGE WEIGHTED AVERAGE WEIGHTED
% OF REMAINING AVERAGE ORIGINAL AVERAGE
NUMBER OF CURRENT AGGREGATE LOCKOUT REMAINING TERM WITH OPEN
MORTGAGE PRINCIPAL CUT-OFF DATE TERM TERM ALL PENALTIES PERIOD
PREPAYMENT RESTRICTION LOANS BALANCE BALANCE MONTHS MONTHS MONTHS MONTHS
- --------------------------- ----------- --------------- -------------- ----------- ----------- --------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Lockout / Defeasance ...... 82 $381,925,362 58.74% 32.3 115.9 115.4 3.6
Lockout / Greater of
YM or 1% ................. 53 184,975,530 28.45 41.3 115.7 113.8 6.2
Lockout / Yield
Maintenance .............. 1 3,482,939 0.54 42.0 114.0 114.0 6.0
Lockout / 1 Year Open ..... 1 79,836,798 12.28 99.0 111.0 108.0 12.0
-- ------------ -----
Total/Weighted
Average ................ 137 $650,220,628 100.00% 43.1 115.2 114.0 5.4
=== ============ ======
</TABLE>
A-36
<PAGE>
PREPAYMENT LOCK-OUT/PREPAYMENT PREMIUM/DEFEASANCE
PERCENTAGE OF MORTGAGE LOANS BY OUTSTANDING PRINCIPAL BALANCE
AGGREGATE
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03
<S> <C> <C> <C> <C> <C> <C>
Locked Out .............. 99.42% 99.42% 84.90% 24.69% 7.98% 7.40%
Defeasance .............. 0.00% 0.00% 13.51% 68.69% 68.70% 68.87%
Greater of YM and 1%*.... 0.58% 0.58% 1.59% 6.62% 23.32% 23.73%
Open .................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $1,861.52 $1,839.41 $1,815.92 $1,790.29 $1,762.67 $1,732.93
<CAPTION>
OCT-04 OCT-05 OCT-06 OCT-07 OCT-08 OCT-09 OCT-10 OCT-11
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out .............. 6.99% 6.57% 6.08% 0.06% 0.00% 0.00% 0.00% 0.00%
Defeasance .............. 69.45% 69.51% 69.70% 66.16% 71.54% 71.50% 72.97% 73.06%
Greater of YM and 1%*.... 23.23% 23.91% 24.09% 18.28% 28.46% 28.50% 27.03% 26.94%
Open .................... 0.32% 0.00% 0.12% 15.50% 0.00% 0.00% 0.00% 0.00%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $1,683.64 $1,634.24 $1,596.96 $1,545.14 $ 137.99 $ 129.37 $ 117.65 $ 107.88
<CAPTION>
OCT-12 OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
<S> <C> <C> <C> <C> <C> <C> <C>
Locked Out .............. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance .............. 76.97% 79.67% 80.18% 81.07% 82.61% 85.91% 75.88%
Greater of YM and 1%*.... 18.92% 20.33% 19.82% 18.58% 17.39% 3.95% 0.00%
Open .................... 4.11% 0.00% 0.00% 0.34% 0.00% 10.14% 24.12%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $ 92.57 $ 56.44 $ 46.47 $ 35.73 $ 24.25 $ 12.23 $ 1.52
</TABLE>
GROUP 1
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03
<S> <C> <C> <C> <C> <C> <C>
Locked Out .............. 99.11% 99.11% 76.75% 19.56% 4.79% 4.11%
Defeasance .............. 0.00% 0.00% 20.79% 74.24% 74.24% 74.48%
Greater of YM and 1%..... 0.89% 0.89% 2.45% 6.20% 20.97% 21.41%
Open .................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $1,211.30 $1,195.86 $1,179.44 $1,161.55 $1,142.29 $1,121.55
<CAPTION>
OCT-04 OCT-05 OCT-06 OCT-07 OCT-08 OCT-09 OCT-10 OCT-11
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out .............. 3.87% 3.14% 2.62% 0.10% 0.00% 0.00% 0.00% 0.00%
Defeasance .............. 75.46% 75.85% 75.89% 74.63% 71.54% 71.50% 72.97% 73.06%
Greater of YM and 1%..... 20.17% 21.01% 21.30% 17.90% 28.46% 28.50% 27.03% 26.94%
Open .................... 0.50% 0.00% 0.19% 7.37% 0.00% 0.00% 0.00% 0.00%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $1,081.85 $1,052.78 $1,026.62 $ 986.80 $ 137.99 $ 129.37 $ 117.65 $ 107.88
<CAPTION>
OCT-12 OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
<S> <C> <C> <C> <C> <C> <C> <C>
Locked Out .............. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance .............. 76.97% 79.67% 80.18% 81.07% 82.61% 85.91% 75.88%
Greater of YM and 1%..... 18.92% 20.33% 19.82% 18.58% 17.39% 3.95% 0.00%
Open .................... 4.11% 0.00% 0.00% 0.34% 0.00% 10.14% 24.12%
Total % ................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ...... $ 92.57 $ 56.44 $ 46.47 $ 35.73 $ 24.25 $ 12.23 $ 1.52
</TABLE>
<PAGE>
GROUP 2
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03
<S> <C> <C> <C> <C> <C> <C>
Locked Out ............... 100.00% 100.00% 100.00% 34.17% 13.85% 13.45%
Defeasance ............... 0.00% 0.00% 0.00% 58.44% 58.50% 58.57%
Greater of YM and 1%*..... 0.00% 0.00% 0.00% 7.38% 27.64% 27.98%
Open ..................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total % .................. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total balance (mm) ....... $ 650.22 $ 643.55 $ 636.48 $ 628.73 $ 620.38 $ 611.38
<CAPTION>
OCT-04 OCT-05 OCT-06 OCT-07 OCT-08 OCT-09 OCT-10 OCT-11 OCT-12
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out ............... 12.61% 12.79% 12.32% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance ............... 58.65% 58.03% 58.56% 51.19% 0.00% 0.00% 0.00% 0.00% 0.00%
Greater of YM and 1%*..... 28.74% 29.18% 29.12% 18.94% 0.00% 0.00% 0.00% 0.00% 0.00%
Open ..................... 0.00% 0.00% 0.00% 29.86% 0.00% 0.00% 0.00% 0.00% 0.00%
Total % .................. 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total balance (mm) ....... $ 601.79 $ 581.46 $ 570.34 $ 558.34 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
<CAPTION>
OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
<S> <C> <C> <C> <C> <C> <C>
Locked Out ............... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance ............... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Greater of YM and 1%*..... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Open ..................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total % .................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total balance (mm) ....... $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
</TABLE>
- ------
* 1 Mortgage Loan, representing approximately 0.2% of the Initial Pool
Balance provides for YM only.
A-37
<PAGE>
ANNEX B
REPRESENTATIONS AND WARRANTIES
Each Responsible Party will represent and warrant as of the date
hereinbelow specified or, if no such date is specified, as of the Closing Date,
that:
(i) Immediately prior to the transfer thereof by the Loan Seller to the
Seller (or in the case of the ACLI Loans and the ACMFLP Loans, by ACLI or
ACMFLP, as the case may be, to GSMC), the Loan Seller (or ACLI or ACMFLP,
as applicable) was the sole owner and holder of, such Mortgage Loan, free
and clear of any and all liens, encumbrances and other interests on, in or
to such Mortgage Loan (other than, in certain cases, the right of the
Master Servicer or a sub-servicer to master service or primary service such
Mortgage Loan).
(ii) The Loan Seller (or in the case of the ACLI Loans and the ACMFLP
Loans, ACLI or ACMFLP, as the case may be) had full right and authority to
sell, assign and transfer such Mortgage Loan to the Seller.
(iii) The information pertaining to such Mortgage Loan set forth in the
Mortgage Loan Schedule was true and correct in all material respects as of
the Cut-Off Date.
(iv) Each Mortgage Loan was not, as of the Cut-Off Date or at any time
during the twelve-month period prior thereto, more than 30 days delinquent
in respect of any Monthly Payment of principal and/or interest required
thereunder, without giving effect to any applicable grace period.
(v) In reliance upon the title insurance policy (or binding commitment
therefor) described in sub-paragraph (vi) below, each Mortgage securing
such Mortgage Loan constitutes a valid first lien upon the related
Mortgaged Property, including, without limitation, all buildings located
thereon and all fixtures attached thereto, subject only to (and such
Mortgaged Property is free and clear of all encumbrances and liens having
priority over the lien of such Mortgage, except for) (A) the lien of
current real property taxes and assessments not yet due and payable, (B)
covenants, conditions and restrictions, rights of way, easements and other
matters of public record, (C) the right of tenants (whether under ground
leases or space leases) at the Mortgaged Property to remain following a
foreclosure or similar proceeding (provided that such tenants are
performing under such leases), (D) exceptions and exclusions specifically
referred to in the lender's title insurance policy issued or, as evidenced
by a "marked-up" commitment, to be issued in respect of such Mortgage Loan
and other matters to which like properties are commonly subject, (E) if
such Mortgage Loan is cross-collateralized with any other Mortgage Loan,
the lien of the Mortgage for such other Mortgage Loan, and (F) with respect
to 2 Mortgage Loans, representing approximately 0.5% of the Initial Pool
Balance, purchase options affecting all or a portion of the Mortgaged
Property that are not subordinate to the lien of Mortgages (the exceptions
set forth in the foregoing clauses (A), (B), (C), (D), (E), and (with
respect to the Mortgage Loans referenced in such clause) (F) collectively,
"Permitted Encumbrances"). Such Permitted Encumbrances do not materially
interfere with the security intended to be provided by the related
Mortgage(s) (or, with respect to each Credit Lease Mortgage Loan, the
Credit Lease and Lease Policy), the current use or value of the related
Mortgaged Property, or the current ability of such Mortgaged Property to
generate net operating income sufficient to service the Mortgage Loan.
(vi) The lien of each related Mortgage is insured by an ALTA lender's
title insurance policy, or its equivalent as adopted in the applicable
jurisdiction, issued by a title insurance company qualified to do business
in the jurisdiction in which the related Mortgaged Property is located,
insuring the originator of the related Mortgage Loan, its successors and
assigns, as to the first priority lien of the Mortgage in the original
principal amount of the related Mortgage Loan after all advances of
principal, subject only to Permitted Encumbrances (or, if a title insurance
policy has not yet been issued in respect of any Mortgage Loan, a policy
meeting the foregoing description is evidenced by a commitment for title
insurance "marked-up" at the closing of such Mortgage Loan). Such title
policy (or, if it has yet to be issued, the coverage to be provided
thereby) is in full force and effect, all premiums thereon have been paid
and, to the Responsible Party's knowledge as of the Closing
B-1
<PAGE>
Date, no material claims have been made thereunder and no claims have been
paid thereunder (and the Responsible Party has not received notice of any
material claims having been made or paid thereunder). No holder of the
related Mortgage has done, by act or omission, anything that would
materially impair the coverage under such title policy. Immediately
following the transfer and assignment of the related Mortgage Loan to the
Trustee, such title policy (or, if it has yet to be issued, the coverage to
be provided thereby) will inure to the benefit of the Trustee without the
consent of or notice to the insurer.
(vii) The Responsible Party has not waived any material default, breach,
violation or event of acceleration existing under the related Mortgage or
Mortgage Note.
(viii) There is no valid offset, defense or counterclaim to such Mortgage
Loan (or, with respect to each Credit Lease Mortgage Loan, the Credit Lease
or Lease Policy).
(ix) (A) The Responsible Party has not received actual notice that there
is any proceeding pending or threatened for the total or partial
condemnation of the related Mortgaged Property and (B) as of the date of
origination there was no, and as of the Closing Date, the Responsible Party
has not received actual notice of any material damage at the related
Mortgaged Property that materially and adversely affects the value of such
Mortgaged Property (except in such case where an escrow of funds exists
sufficient to effect the necessary repairs and maintenance).
(x) At origination, such Mortgage Loan complied in all material respects
with all requirements of federal, state and local laws, including, without
limitation, laws pertaining to usury, relating to the origination of such
Mortgage Loan.
(xi) The proceeds of such Mortgage Loan have been fully disbursed, and
there is no requirement for future advances thereunder. No Mortgage Loan
requires the originator or any affiliate of the originator to make any
capital contribution to the borrower after the date of origination of such
loan.
(xii) The Mortgage Note and Mortgage(s) for such Mortgage Loan (and, with
respect to each Credit Lease Mortgage Loan, the Credit Lease and Lease
Policy) and all other documents and instruments evidencing, guaranteeing,
insuring or otherwise securing such Mortgage Loan are each the legal, valid
and binding obligation of the maker thereof (subject to any non-recourse
provisions contained in any of the foregoing agreements and any applicable
state anti-deficiency legislation), enforceable in accordance with their
respective terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, redemption, fraudulent conveyance,
receivership, moratorium or other laws relating to or affecting the rights
of creditors generally and by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at
law).
(xiii) The related Mortgaged Property is insured by a fire and extended
perils insurance policy, issued by an insurer meeting the requirements of
such Mortgage Loan in an amount not less than the lesser of (x) the
principal amount of the related Mortgage Loan and (y) the full replacement
cost of the Mortgaged Property, and in each case in an amount sufficient to
avoid the operation of any co-insurance provisions with respect to such
Mortgaged Property; such policies provide coverage on a full replacement
costs basis with no deduction for depreciation. Each Mortgaged Property is
also covered (except if such Mortgaged Property is operated as a mobile
home park), by business interruption or rental loss insurance in an amount
equal to the gross rentals for at least a 12-month period. Each Mortgaged
Property is covered by comprehensive general liability insurance, and the
related Mortgage Loan documents require the borrower to maintain workers'
compensation insurance, as required by applicable law or, except with
respect to the ACLI and ACMF Loans, during any construction, renovation or
alteration of the related Mortgaged Property. No such insurance policy
provides that it may be canceled, endorsed, altered or reissued to effect a
change in coverage unless such insurer shall have first given the mortgagee
under such Mortgage Loan thirty days' prior written notice (or less if so
required by applicable law), and no notice has been received as of the date
hereof; all premiums required to be paid on such policy have been paid; the
related Mortgage obligates the borrower to maintain all such insurance and,
at the borrower's failure
B-2
<PAGE>
to do so, authorizes the mortgagee under such Mortgage Loan to purchase
such insurance at the borrower's cost and expense and to seek reimbursement
from such borrower. In addition, all insurance coverage required under the
related Mortgage is in full force and effect with respect to the related
Mortgaged Property, and if the related Mortgaged Property is located in a
federally designated special flood hazard area, the related borrower is
required to maintain flood insurance in respect of all portions of the
Mortgaged Property located in such area (exclusive of any parking lot or
unused or undeveloped portion thereof.)
(xiv) One or more environmental site assessments ("Environmental Report")
(or an update of a previously conducted assessment) were performed with
respect to the related Mortgaged Property (except with respect to 3
Mortgage Loans, representing approximately 0.6% of the Initial Pool
Balance, in no such case more than 18 months prior to the Cut-Off Date) by
an experienced professional in the industry, and either (x) no such
Environmental Report reveals any known circumstances or conditions with
respect to the related Mortgaged Property that rendered such Mortgaged
Property, at the date of such Environmental Report, in violation of any
applicable environmental laws or (y) if any such Environmental Report does
reveal any such circumstances or conditions with respect to the related
Mortgaged Property, then either (i) the same have been remediated in all
material respects, or (ii) sufficient funds have been escrowed for purposes
of effecting such remediation, or (iii) except for 1 Mortgage Loan,
representing approximately 0.1% of the Initial Pool Balance as to which the
borrower has not yet completed the required actions, the related borrower
or other responsible party is currently taking such actions, if any, with
respect to such circumstances or conditions as have been recommended by the
Environmental Report or required by the applicable governmental regulatory
authority (including implementation of an operations and maintenance
agreement). The Responsible Party, having made no independent inquiry other
than reviewing the resulting report(s) and/or employing an environmental
consultant to perform the assessment(s) referenced herein, has no knowledge
of any material and adverse environmental condition or circumstance
affecting such Mortgaged Property that was not disclosed in the related
report(s). Each Mortgage requires the related borrower to comply, and to
cause the related Mortgaged Property to be in compliance, with all
applicable federal, state and local environmental laws and regulations.
(xv) Except as indicated on the Mortgage Loan Schedule, such Mortgage
Loan is not cross-collateralized with other Mortgage Loans in the Mortgage
Pool. Except for the Americold Pool Loan, such Mortgage Loan is not
cross-collateralized with a mortgage loan of equal or greater priority
outside the Mortgage Pool. No single Mortgage Loan, except for the
Americold Pool Loan, the AIMCO Multifamily Pool Loan, and the EPT Pool
Loan, or group of Mortgage Loans having the same borrower or affiliates,
constitutes more than 5% of the Mortgage Pool, by Initial Pool Balance.
(xvi) The terms of the Mortgage Note and Mortgage(s) for such Mortgage
Loan (and, with respect to each Credit Lease Mortgage Loan, the Credit
Lease and Lease Policy) have not been impaired, waived, altered or modified
in any material respect, except for assumptions and modifications made in
accordance with the terms of such Mortgage Note and Mortgage(s) and
documentation regarding which modification is in the Mortgage File (or,
with respect to any Credit Lease Mortgage Loan, as described in any related
tenant estoppel).
(xvii) There are no delinquent taxes, ground rents, water charges, sewer
rents, or other similar outstanding charges affecting the related Mortgaged
Property that are not otherwise covered by an escrow of funds sufficient to
pay such charges.
(xviii) The interest of the borrower in the related Mortgaged Property
consists of a fee simple interest in real property or the lessee's interest
under a ground lease of real property and such other property as set forth
in the related Mortgage Loan documents.
(xix) Except for 2 Mortgage Loans, representing 0.5% of the Initial Pool
Balance, such Mortgage Loan is a whole loan and not a participation
interest.
(xx) The assignment of the related Mortgage to the Trustee constitutes
the legal, valid and binding assignment of such Mortgage from the relevant
assignor to the Trustee, and the assignment
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of the related Assignment of Leases, if any, or of any other agreement
executed in connection with such Mortgage Loan to the Trustee constitutes
the legal, valid and binding assignment thereof from the relevant assignor
to the Trustee.
(xxi) All escrow deposits (including capital improvements and
environmental remediation reserves) relating to such Mortgage Loan that
were required to be delivered to the mortgagee under the terms of the
related loan documents, have been received and, to the extent of any
remaining balances of such escrow deposits, are in the possession, or under
the control of the Responsible Party or its agents (which shall include the
Master Servicer).
(xxii) As of the date of origination of such Mortgage Loan the related
Mortgaged Property was free and clear of any mechanics' and materialmen's
liens or liens in the nature thereof which create a lien prior to that
created by the related Mortgage(s), unless insured against under the
related title policy.
(xxiii) Except for 2 Mortgage Loans, representing approximately 0.3% of
the Initial Pool Balance, unless insured against under the related title
policy, no improvement that was included for the purpose of determining the
appraised value of such Mortgaged Property at the time of origination of
such Mortgage Loan lies outside the boundaries and building restriction
lines of such property to any material extent; no improvements on adjoining
properties materially encroach upon such Mortgaged Property to any material
extent; and, except for 10 Mortgage Loans, representing approximately 2.0%
of the Initial Pool Balance, no improvement located on or forming part of
such Mortgaged Property is in material violation of any applicable zoning
laws or ordinances (except to the extent that they may constitute legal
non-conforming uses or structures, in which case the Responsible Party is
in possession of written assurances from the applicable municipality
received by itself or the originator of such Mortgage Loan to the effect
that, or it is the reasonable, good faith judgment of the Responsible Party
that, either: (A) such Mortgaged Property may be rebuilt and constitutes
adequate security for the Mortgage Loan; (B) the probability of such
Mortgaged Property being damaged to the extent that it could not be rebuilt
to its current state is remote; or (C) such Mortgaged Property is
adequately covered by "law or ordinance" insurance).
(xxiv) To the extent required under applicable law as of the Closing Date
and necessary for the enforceability or collectability of the Mortgage
Loan, the originator of such Mortgage Loan was authorized to do business in
the jurisdiction in which the related Mortgaged Property is located at all
times when it held the Mortgage Loan.
(xxv) Such Mortgage Loan does not contain any equity participation by the
lender, provide for any contingent or additional interest in the form of
participation in the cash flow of the related Mortgaged Property or provide
for the negative amortization of interest, except that, in the case of an
ARD Loan, such Mortgage Loan provides that during the period commencing on
the Anticipated Repayment Date and continuing until such Mortgage Loan is
paid in full, (i) additional interest shall accrue and be added to the
principal balance of such Mortgage Loan and shall be payable only after the
outstanding principal of such Mortgage Loan is paid in full, and (ii) a
portion of the cash flow generated by such Mortgaged Property will be
applied each month to the principal balance thereof in addition to the
principal portion of the related Monthly Payment.
(xxvi) No holder of such Mortgage Loan has, to the Responsible Party's
knowledge, advanced funds or induced, solicited or knowingly received any
advance of funds from a party other than the owner of the related Mortgaged
Property (or other than, with respect to a Credit Lease Mortgage Loan,
amounts paid by the tenant as specifically provided under the related
Credit Lease), directly or indirectly, for the payment of any amount
required by the Mortgage Loan, except for interest accruing from the date
of origination of such Mortgage Loan or the date of disbursement of the
Mortgage Loan proceeds, whichever is later, to the date which preceded by
30 days the first Due Date under the related Mortgage Note.
(xxvii) To the Responsible Party's knowledge based upon due diligence
customary in the industry, as of the date of origination of such Mortgage
Loan, (A) except for the EPT Pool Loan and
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4 Mortgage Loans, representing approximately 6.0% of the Initial Pool
Balance, in the case of each Mortgage Loan, the related borrower was in
possession of all material licenses, permits and authorizations required by
applicable laws for the ownership of the related Mortgaged Property, (B),
except for 1 Mortgage Loan, representing approximately 0.1% of the Initial
Pool Balance, in the case of each Mortgage Loan secured by a hotel or
health care facility, the related borrower or operator, as applicable, was
in possession of all material licenses, permits and authorizations required
by applicable laws for the operation of the related Mortgaged Property as
it was then operated, and (C) all such licenses, permits and authorizations
were valid and in full force and effect.
(xxviii) The related Mortgage(s) or Mortgage Note (and, with respect to
each Credit Lease Mortgage Loan, the Credit Lease and Lease Policy),
together with applicable state law, contain customary and enforceable
provisions (subject to the exceptions set forth in sub-paragraphs (v) and
(xii) above) such as to render the rights and remedies of the holders
thereof (and with respect to each Credit Lease, the lessor) adequate for
the practical realization against the related Mortgaged Property of the
principal benefits of the security intended to be provided thereby.
(xxix) Such Mortgage Loan is a "qualified mortgage" within the meaning of
Section 860G(a)(3) of the Code.
(xxx) No fraud with respect to such Mortgage Loan has taken place on the
part of the Responsible Party in connection with the origination of such
Mortgage Loan.
(xxxi) The origination, servicing and collection practices used with
respect to such Mortgage Loan have been in all material respects legal and
have met generally accepted servicing standards for similar commercial and
multifamily mortgage loans.
(xxxii) Any related Assignment of Leases (either as a separate instrument
or incorporated into the related Mortgage) creates in favor of the holder,
a valid, perfected and enforceable lien of the same priority as the related
Mortgage, in the property and rights described therein; provided that the
enforceability of such lien is subject to applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws affecting the
enforcement of creditors' rights generally, and by the application of the
rules of equity. The Responsible Party has the full right to assign to the
Trustee such Assignment of Leases and the lien created thereby as described
in the immediately preceding sentence. Except for the Americold Pool Loan,
no Person other than the borrower owns any interest in any payments due
under the related leases. The related Mortgage or such Assignment of Leases
provides for the appointment of a receiver for rents or allows the
mortgagee to enter into possession to collect rent or provides for rents to
be paid directly to the mortgagee in the event of a default.
(xxxiii) If the related Mortgaged Property securing such Mortgage Loan is
encumbered by secured subordinated debt, then, except for 1 Mortgage Loan,
representing approximately 0.1% of the Initial Pool Balance, (A) the
subordinate debt constitutes a "cash flow" mortgage loan (that is, payments
are required to be made thereon only to the extent that certain net cash
flow from the related Mortgaged Property (calculated in accordance with the
related loan documents) is sufficient after payments on such Mortgage Loan
have been made and certain expenses have been paid) and (B) the holder of
the subordinate debt has agreed not to foreclose on the related Mortgaged
Property so long as such Mortgage Loan is outstanding and the Special
Servicer on behalf of the Trust is not pursuing a foreclosure action.
(xxxiv) The Mortgage contains a "due on sale" clause, which provides for
the acceleration of the payment of the unpaid principal balance of the
Mortgage Loan if, without the prior written consent of the holder of the
Mortgage, the property subject to the Mortgage, or any interest therein, is
directly or indirectly transferred or sold, subject to those exceptions set
forth in the related Mortgage Loan which are consistent with prudent
lending standards. Such Mortgage Loan does not permit the related Mortgaged
Property to be encumbered subsequent to the Closing Date by any lien junior
to or of equal priority with the lien of the related Mortgage without the
prior written consent of the holder thereof.
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(xxxv) Each Mortgage and/or Mortgage Note provides that the related
borrower shall be fully and personally liable for all liabilities, costs,
losses, damages, expenses or claims suffered or incurred by the mortgagee
by reason of or in connection with and only to the extent of (i) any
material fraud, intentional and material misrepresentation by the related
borrower in connection with such Mortgage Loan, (ii) violations of
applicable environmental laws by the borrower, (iii) misapplication or
misappropriation of rents after an event of default under the Mortgage
Loan, insurance proceeds or condemnation awards, or (iv) any physical waste
resulting from borrower actions constituting gross negligence or
intentional misconduct.
(xxxvi) The related borrower is not, to the Responsible Party's best
knowledge, a debtor in any state or federal bankruptcy or insolvency
proceeding.
(xxxvii) If such Mortgage Loan is secured by the interest of the related
borrower under a Ground Lease, then, such Ground Lease is in full force and
effect and, to the Responsible Party's actual knowledge, no material
default exists under such Ground Lease, nor, to the Responsible Party's
actual knowledge is there any existing condition, which, but for the
passage of time or the giving of notice would result in a default under the
Ground Lease.
(xxxviii) Except with respect to 1 Mortgage Loan, representing
approximately 1.0% of the Initial Pool Balance, the Responsible Party has
no actual knowledge of any pending litigation or other legal proceedings
involving the related borrower or the related Mortgaged Property that can
reasonably be expected to materially interfere with the security intended
to be provided by the related Mortgage, the current use of the related
Mortgaged Property, or the current ability of the Mortgaged Property to
generate net operating income sufficient to service the Mortgage Loan.
(xxxix) Except in cases where the related Mortgage Note or the related
Mortgage provides for (A) a release of a portion of the related Mortgaged
Property, which portion was not considered material for purposes of
underwriting the Mortgage Loan, (B) a release of a portion of the related
Mortgaged Property conditioned upon the satisfaction of certain
underwriting and legal requirements and/or the payment of a release price,
or (C) a defeasance effected in accordance with the Mortgage Loan
documents, neither the related Mortgage Note nor the related Mortgage
requires the mortgagee to release all or any material portion of the
related Mortgaged Property from the lien of the related Mortgage except
upon payment in full of all amounts due under the related Mortgage Loan.
(xl) With respect to any Mortgage Loan that is a Defeasance Loan, the
related Mortgage Note or the Mortgage provides that (A) the Defeasance
Option is not exercisable prior to a date that is at least two years
following the Closing Date, (B) the borrower will not be liable for any
shortfalls from the Defeasance Loan except to the extent so liable prior to
defeasance, and (C) counsel must provide an opinion that the trustee will
have a perfect security interest in such collateral prior to any other
claim or interest, and, further, contains no provision that would result in
a new borrower on the Defeasance Loan without the consent of the related
mortgagee (unless such new borrower is acquiring the Mortgaged Property
that was the initial security for the Defeasance Loan).
(xli) If the Mortgage in respect of any Mortgage Loan is a deed of trust,
(A) a trustee, duly qualified under applicable law to serve as such, is
properly designated and serving under such Mortgage, and (B) except in
connection with a trustee's sale after default by the related borrower, no
fees or expenses are payable to such trustee by the Responsible Party or
any subsequent mortgagee.
(xlii) The related Mortgage Note is not secured by any collateral that is
not included in the Trust Fund.
(xliii) If such Mortgage Loan is secured by the interest of the related
borrower as a lessee under a Ground Lease covering all or any material
portion of the related Mortgaged Property, but not by the related fee
interest in such Mortgaged Property or portion thereof:
(A) Except for 2 Mortgage Loans, representing approximately 0.9%
of the Initial Pool
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Balance, either (1) the related ground lessor has subordinated its
interest in the related Mortgaged Property to the interest of the
holder of the Mortgage Loan or (2) the related ground lessor has
granted the holder of the Mortgage Loan the right to cure any
default or breach by the ground lessee (including time to gain
possession of the property). Upon the foreclosure of such Mortgage
Loan (or acceptance of a deed in lieu thereof), the related Ground
Lease is assignable to the mortgagee under such Mortgage Loan and
its assigns without the consent of the ground lessor thereunder (or
such consent, if required, cannot be unreasonably withheld);
(B) Such Ground Lease or a memorandum thereof has been or will
be duly recorded, such Ground Lease permits the interest of
the lessee thereunder to be encumbered by the related
Mortgage; and there has been no material change in the terms
of such Ground Lease since its recordation, with the
exception of written instruments which are a part of the
related Mortgage File;
(C) Such Ground Lease is not subject to any liens or
encumbrances superior to, or of equal priority with, the
related Mortgage, other than the related fee interest and
Permitted Encumbrances, and such Ground Lease is prior to
any mortgage or other lien upon the related fee interest and
does not provide by its terms that it shall be subordinate
to any other lien;
(D) Except for 3 Mortgaged Properties securing the Americold
Pool Loan and 1 other Mortgage Loan representing in the
aggregate approximately 8.7% of the Initial Pool Balance,
such Ground Lease requires the lessor thereunder to give
notice of any default by the lessee to the mortgagee under
such Mortgage Loan (provided that such mortgagee has
provided the lessor with notice of its lien in accordance
with the provisions of such Ground Lease), and such Ground
Lease, or an estoppel letter received by such mortgagee from
the lessor, further provides that no notice of termination
given under such Ground Lease is effective against the
mortgagee unless a copy has been delivered to such mortgagee
in the manner described in such Ground Lease;
(E) Except for 3 Mortgaged Properties securing the Americold
Pool Loan and 1 Mortgaged Property securing the EPT Pool
Loan and 1 other Mortgage Loan representing in the aggregate
approximately 14.3% of the Initial Pool Balance, such Ground
Lease requires the lessor to enter into a new lease with the
mortgagee under such Mortgage Loan upon termination of such
Ground Lease for any reason, including rejection of such
Ground Lease in a bankruptcy proceeding;
(F) Except for 1 Mortgaged Property securing the Americold Pool
Loan and 2 other Mortgage Loans representing in the
aggregate approximately 8.8% of the Initial Pool Balance,
under the terms of such Ground Lease and the related
Mortgage, taken together, any related insurance proceeds
(other than in respect of a total or substantially total
loss or taking) will be applied either (1) to the repair or
restoration of all or part of the related Mortgaged
Property, with the mortgagee or a trustee appointed by it
having the right to hold and disburse such proceeds as the
repair or restoration progresses (except in such cases where
a provision entitling another party to hood and disburse
such proceeds would not be viewed as commercially
unreasonable by a prudent commercial mortgage lender), or
(2) to the payment of the outstanding principal balance of
such Mortgage Loan together with any accrued interest
thereon;
(G) Except for 1 Mortgaged Property securing the EPT Pool Loan
and 3 other Mortgage Loans representing in the aggregate
approximately 7.2% of the Initial Pool Balance, such Ground
Lease does not impose any restrictions on subletting which
would be viewed as commercially unreasonable by a prudent
commercial mortgage lender and the lessor thereunder is not
permitted to disturb the possession, interest or quiet
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enjoyment or any sub-tenants of the lessee in the relevant
portion of the Mortgaged Properties subject to such Ground
Lease for any reason (other than default under the Ground
Lease), or in any manner, which would materially adversely
affect the security provided by the related Mortgage;
(H) Except for 1 Mortgaged Property securing the Americold Pool
Loan, such Ground Lease has an original term (or an original
term plus one or more optional renewal terms, which, under
all circumstances, may be exercised, at the borrower's
option, and will be enforceable, by the mortgagee if it
takes possession of such leasehold interest) that extends
not less than 10 years beyond the stated maturity of the
related Mortgage Loan; and
(I) Except for 2 Mortgage Loans, representing approximately 1.0%
of the Initial Pool Balance, the lessor under such Ground
Lease has agreed in such Ground Lease (or in another writing
included in the related Mortgage File) that such Ground
Lease may not be amended, modified, canceled or terminated
in a material manner without the prior written consent of
the Mortgagee.
(xliv) Neither the related Mortgage Note nor the related Mortgage
contains provisions limiting the right or ability of the Responsible Party
to assign, transfer and convey such documents.
(xlv) In addition, with respect to each Credit Lease Mortgage Loan:
(A) Each Lease Policy is assignable by the Loan Seller and will
inure to the benefit of the Trustee and its successors and
assigns without the consent of or notice to the issuer
thereof. Any subleases entered into by the Tenant will be
subject and subordinate to the Credit Lease and will not
relieve the Tenant of its obligations under the Credit
Lease.
(B) To the best of the Responsible Party's knowledge (i) each
Credit Lease is in full force and effect, and no default by
the borrower or the Tenant has occurred under such Credit
Lease, and (ii) there is no existing condition which, but
for the passage of time or the giving of notice, or both,
would result in a default under the terms of such Credit
Lease.
(C) Except for 2 Mortgage Loans, representing approximately 0.2%
of the Initial Pool Balance, the payments of Basic Rent
under the Credit Lease are equal to or greater than the
payments due under the Mortgage Loan documents (except if
the Credit Lease Mortgage Loan provides for a balloon
payment, in which case a Lease Policy is in effect), and are
payable without notice or demand, and without setoff,
counterclaim, recoupment, abatement, reduction or defense.
(D) The obligations of each tenant under a Credit Lease (a
"Tenant"), including, but not limited to, the obligation of
the Tenant to pay fixed and additional rent, are not
affected by reason of any prohibition, limitation,
interruption, cessation, restriction, prevention or
interference of the Tenant's use, occupancy or enjoyment of
the Mortgaged Property, other than by reason of damage to or
destruction of any portion of the Mortgaged Property, any
taking of the Mortgaged Property or any part thereof by
condemnation or otherwise to the extent that such Mortgaged
Property is covered by an insurance policy issued by Chubb
Custom Insurance which, by its terms, would cover the
payment of any such obligations of the Tenant under such
circumstances.
(E) Except for 1 Mortgage Loan, representing approximately 0.1%
of the Initial Pool Balance, the related borrower does not
have any material monetary obligations under the Credit
Lease.
(F) Every obligation associated with managing, owning,
developing and operating the Mortgaged Property (other than
structural repairs), including, but not limited to, the
costs associated with utilities, taxes, insurance, capital
improvements and maintenance is an obligation of the Tenant.
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(G) Except for 3 Mortgage Loans, representing approximately 0.2%
of the Initial Pool Balance, the related borrower does not
have any nonmonetary obligations under the Credit Lease, the
breach of which would result in the abatement of rent, a
right of setoff or termination of the Credit Lease.
(H) Except for 1 Mortgage Loan, representing approximately 0.1%
of the Initial Pool Balance, the related Tenant cannot
terminate the Credit Lease for any reason (except for a
default by the related borrower under the Credit Lease)
prior to the payment in full of: (A) the outstanding
principal balance of the Credit Lease Mortgage Loan; (B) all
accrued and unpaid interest on the Credit Lease Mortgage
Loan; and (C) any other sums due and payable under the
Credit Lease Mortgage Loan, as of the termination date,
which date is a rent payment date; provided, however, that
the related Tenant can terminate the Credit Lease by reason
of damage to or destruction of any portion of the Mortgaged
Property, any taking of the Mortgaged Property or any part
thereof by condemnation or otherwise to the extent that such
Mortgaged Property is covered by an insurance policy issued
by Chubb Custom Insurance which, by its terms, would cover
the payment of any of the Tenant's remaining obligations,
including the payment of rent, under such circumstances.
(I) In the event the related Tenant assigns or sublets the
Mortgaged Property, the Tenant remains primarily obligated
under the Credit Lease.
(J) The Tenant has agreed to indemnify the related borrower from
any claims of any nature relating to the Credit Lease and
the Mortgaged Property arising from any act done or omission
or negligence by the Tenant, except to the extent that such
claims arise from the negligence or tortious act or omission
of the borrower.
(K) The Tenant has agreed to indemnify the related borrower from
any claims of any nature arising as a result of any
environmental problem affecting the Mortgaged Property
caused by the Tenant.
(L) Except for 2 Mortgage Loans, representing approximately 0.1%
of the Initial Pool Balance, any obligation or liability
imposed by any easement or reciprocal easement agreement is
an obligation of the Tenant, and is without recourse or
liability to the related borrower.
(M) The Tenant is obligated to make payments directly to the
Mortgagee, which payments are made into a lockbox account
over which the related borrower has no withdrawal or
transfer rights.
(N) The terms of the related Mortgage Loan documents prohibit
material modifications of the terms of the Credit Lease
without the consent of the related mortgagee.
(O) The mortgagee is entitled to notice of any event of default
from the Tenant under the Credit Lease which would give the
Tenant the right to cancel or terminate such Credit Lease
and the Representing Party shall have the opportunity to
cure any such default.
(P) Each Credit Lease that is guaranteed is guaranteed by a
guarantor (a "Guarantor") pursuant to a guaranty (a
"Guaranty"). Each Guaranty represents by its terms the
unconditional obligation of the Guarantor, without any right
of offset, counterclaim or defense, and is a guarantee of
payment, not merely collection. The rejection of the Credit
Lease in a bankruptcy or insolvency of the Tenant shall not
affect the Guarantor's obligations under the Guaranty and
the Guarantor shall be obligated to pay the Tenant's
obligations, subject to limitation as to amount in the event
of the Guarantor's bankruptcy, under the Credit Lease
notwithstanding such rejection. The Guaranty is binding on
the Guarantor, its successors and assigns and may not be
amended or released without the mortgagee's consent.
(Q) The Credit Lease Assignment creates a valid first priority
security interest in favor of the
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Seller in rights including the right to Basic Rent and, to
the extent payable under each Credit Lease, additional rent
due under the related Credit Lease, subject only to license
granted to the borrower to exercise certain rights and to
perform certain obligations of the lessor under the Credit
Lease, including the right to operate the related Mortgaged
Property, and no Person other than the borrower owns any
interest in any payments due under such Credit Lease.
(R) The Tenant has delivered an estoppel letter with respect to
the Credit Lease, verifying, among other things, the rents
and terms of the Credit Lease and acknowledging that no rent
has been paid in advance.
(S) The Mortgaged Property is not subject to any lease other
than the Credit Lease, no person has any possessory interest
in, or right to occupy the property except under and
pursuant to the Credit Lease and the Tenant under the Credit
Lease is in occupancy of the Mortgaged Property and the
Mortgaged Property is not under construction or substantial
rehabilitation.
(T) Each Lease Policy, if any, (i) designates as loss payee, the
Trustee and all claims proceeds are payable to the loss
payee; (ii) has been paid in full as of the effective date
and the Lease Policy cannot be terminated prior to its
termination date; (iii) has an effective date prior to the
Closing Date; (iv) has a termination date of the date upon
which the outstanding principal balance of the balance of
the related Mortgage Loan is reduced to zero; (v) requires
the provider to pay the loss amount up to the insured amount
to the loss payee upon notification of a claim which is
equal to or greater than the outstanding principal balance
of the related Mortgage Loan at the time the claim is made;
and (vi) cannot be amended without prior written consent of
the Trustee.
(xlvi) Except for 1 Mortgage Loan, representing approximately 0.1% of the
Initial Pool Balance, as to which the related borrower has not completed a
required environmental operations and maintenance plan, there is no
material default, breach, violation or event of acceleration under the
Mortgage Note, Mortgage or Assignment of Leases and to the actual knowledge
of the Responsible Party, no event which, with the passage of time or the
giving of notice, or both, would constitute a material default or event of
acceleration, nor has the Responsible Party waived any such default; no
foreclosure action or other form of enforcement is or has been threatened
or commenced with respect to any Mortgage.
(xlvii) The Responsible Party has inspected or caused to be inspected
each related Mortgaged Property within the last 18 months.
(xlviii) Except for 10 Mortgage Loans, representing approximately 2.1% of
the Initial Pool Balance, each Mortgaged Property constitutes one or more
complete separate tax lots (or will constitute separate tax lots when the
next tax maps are issued).
(xlix) With respect to any Mortgage Loan which is secured by a senior
housing, nursing home, or other healthcare-related facility ("Healthcare
Facility"), to the best of the Responsible Party's knowledge and:
(A) Based upon representations by the borrower and each
Healthcare Facility operator or manager (each a "Healthcare
Operator"), except for 1 Mortgage Loan, representing
approximately 0.5% of the Initial Pool Balance, each
borrower and each Healthcare Facility complies with all
applicable federal, state, commonwealth and local laws,
regulations, quality and safety standards, accreditation
standards and requirements of the applicable state or
commonwealth Department of Health ("DOH") or any similar
regulatory agency and all other federal, state, commonwealth
or local governmental authorities having jurisdiction over
such Healthcare Facility.
(B) Based on representations by the borrower and each Healthcare
Operator and, where applicable, certificates of government
officials, except for 1 Mortgage Loan, representing
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approximately 0.5% of the Initial Pool Balance, all
governmental licenses, permits, regulatory agreements or
other approvals or agreements necessary for the use and
operation of each Healthcare Facility as intended are held
by the applicable borrower or Healthcare Operator and are in
full force and effect, including, without limitation, a
valid certificate of need ("CON") or similar certificate,
license, or approval issued by the DOH for the requisite
number of beds, and approved provider status in any approved
provider payment program (collectively, the "Licenses").
(C) Based upon representations and covenants in the related
Mortgage and, where applicable, certificates of government
officials, the Licenses, including, without limitation, the
CON:
(1) May not be, without the consent of the mortgagee, and have
not been, transferred to any location other than the
Healthcare Facility;
(2) Have not been pledged as collateral security for any loan or
indebtedness other than the Mortgage; and
(3) Are held free from restrictions or known conflicts which
would materially impair the use or operation of the
Healthcare Facility as intended, and are not provisional,
probationary or restricted in any way.
(D) Except for 1 Mortgage Loan, representing approximately 0.9%
of the Initial Pool Balance, so long as the Mortgage remains
outstanding, no borrower or Healthcare Operator is permitted
pursuant to the terms of the Mortgage without the consent of
the holder of the Mortgage to:
(1) Rescind, withdraw, revoke, amend, modify, supplement, or
otherwise alter the nature, tenor or scope of the Licenses
for any Healthcare Facility (other than the addition of
services or other matters expanding or improving the scope
of such License);
(2) Amend or otherwise change any Healthcare Facility's
authorized bed capacity and/or the number of beds approved
by the DOH; or
(3) Replace or transfer all or any part of any Healthcare
Facility's beds to another site or location.
(E) Except for 1 Mortgage Loan, representing approximately 0.5%
of the Initial Pool Balance, based upon representations and
covenants in the related Mortgage, each Healthcare Facility
is in compliance with all requirements for participation in
Medicare and Medicaid, including, without limitation, the
Medicare and Medicaid Patient Protection Act of 1987; and,
except for 1 Mortgage Loan, representing approximately 0.5%
of the Initial Pool Balance, each Healthcare Facility is in
conformance in all material respects with all insurance,
reimbursement and cost reporting requirements, and, if
required, has a current provider agreement which is in full
force and effect under Medicare and/or Medicaid.
(F) Based on representations by the borrower, except for 1
Mortgage Loan, representing approximately 0.5% of the
Initial Pool Balance, there is no threatened or pending
revocation, suspension, termination, probation, restriction,
limitation, or nonrenewal affecting any borrower or
Healthcare Facility or any participation or provider
agreement with any third-party payor, including Medicare,
Medicaid, Blue Cross and/or Blue Shield, and any other
private commercial insurance managed care and employee
assistance program (the "Third-Party Payors' Programs") to
which any borrower presently is subject.
(G) Based on representations by each borrower in the related
Mortgage, except for 1 Mortgage Loan, representing
approximately 0.5% of the Initial Pool Balance, no
B-11
<PAGE>
borrower, Healthcare Operator or Healthcare Facility is currently
the subject of any proceeding by any governmental agency, and no
notice of any violation has been received from a governmental
agency that would, directly or indirectly, or with the passage of
time:
(1) Have a material adverse impact on any borrower's ability to
accept and/or retain patients or result in the imposition of
a fine, a sanction, a lower rate certification or a lower
reimbursement rate for services rendered to eligible
patients;
(2) Modify, limit or annul or result in the transfer,
suspension, revocation or imposition of probationary use of
any borrower's Licenses; or
(3) Affect any borrower's continued participation in the
Medicaid or Medicare programs or any other of the
Third-Party Payors' Programs, or any successor programs
thereto, at current rate certifications.
(H) Based upon representations and covenants in the Mortgage
and, where available, certificates of government officials,
each Healthcare Facility and the use thereof complies in all
material respects with all applicable local, state and
federal building codes, fire codes, healthcare, nursing
facility and other similar regulatory requirements (the
"Physical Plant Standards") and no material waivers of
Physical Plant Standards exist at any of the Healthcare
Facilities.
(I) Based upon representations by each borrower and/or in the
related Mortgage and, where available, certificates of
government officials, except for 1 Mortgage Loan,
representing approximately 0.5% of the Initial Pool Balance,
no Healthcare Facility has received a "Substandard Quality
of Care" (or equivalent) violation, and except for 1
Mortgage Loan, representing approximately 0.5% of the
Initial Pool Balance, no statement of charges or material
deficiencies has been made or penalty enforcement action has
been undertaken against any Healthcare Facility, Healthcare
Operator or borrower, or against any officer, director or
stockholder of any Healthcare Operator or borrower by any
governmental agency that is currently pending or, to the
Responsible Party's knowledge received during the last three
calendar years, and except for 1 Mortgage Loan, representing
approximately 0.5% of the Initial Pool Balance, to the
Responsible Party's knowledge, there have been no violations
over the past three years which have materially threatened
any Healthcare Facility's, any Healthcare Operator's or any
borrower's certification for participation in Medicare or
Medicaid or the other Third-Party Payors' Programs.
(J) Based on representations by each borrower in the related
Mortgage, there are no current, pending or outstanding
Medicaid, Medicare or Third-Party Payors' Programs
reimbursement audits or appeals pending at any of the
Healthcare Facilities concerning allegations of fraud or
that might have a material adverse effect on the operations
of the Healthcare Facility.
(K) Except for 1 Mortgage Loan, representing approximately 0.4%
of the Initial Pool Balance, based on representations by
each borrower in the related Mortgage, there are no current
or pending Medicaid, Medicare or Third-Party Payors'
Programs recoupment efforts at any of the Healthcare
Facilities that might have a material adverse effect on the
operations of the Healthcare Facility.
(L) Except for 2 Mortgage Loans, representing approximately 1.7%
of the Initial Pool Balance, based on representations by
each borrower in the related Mortgage, no borrower has
pledged its receivables as collateral security for any loan
or indebtedness other than the related Mortgage which is not
subject to a subordination agreement in connection with the
Mortgage Loan.
(M) Based on representations by each borrower in the related
Mortgage, there are no patient or resident care agreements
with patients or residents or with any other persons which
deviate in any material adverse respect from the standard
form customarily used at the Healthcare Facilities.
B-12
<PAGE>
(N) Except for 1 Mortgage Loan, representing approximately 0.9%
of the Initial Pool Balance, if applicable, the borrower has
represented in the related Mortgage that all patient or
resident records at each Healthcare Facility, including
patient or resident trust fund accounts, if any, are true
and correct in all material respects.
(O) If applicable, the borrower has represented in the related
Mortgage that any existing agreement relating to the
management or operation of any Healthcare Facility with
respect to any Healthcare Facility is in full force and
effect and is not in default by any party thereto.
(P) The terms of each Mortgage require that the Healthcare
Facility, Healthcare Operator or borrower shall take no
action which will result in a reduction, suspension,
recoupment of elimination or reimbursement for services from
any Medicare, Medicaid or Third Party Payors' Programs.
(l) Each Mortgage Loan was originated by the Originator shown on the
Mortgage Loan Schedule or by an affiliate of such Originator.
(li) The related borrower for each Mortgage Loan is an entity organized
under the laws of a state or territory of the United States.
(lii) Except for 2 Mortgaged Properties securing the Americold Pool Loan,
each Mortgaged Property is located on or adjacent to a dedicated road or
street, or has an irrevocable easement permitting ingress and egress. Each
Mortgaged Property is served by public or private electric utility service
and by public or private water and sewer service or non-public wells and
septic systems.
The following terms have the following definitions for purposes of the
above representations and warranties:
"Assignment of Leases" means, with respect to any Mortgage Loan, an
assignment to the mortgagee of all of the borrower's rights to receive rental
payments from the related tenant pursuant to the related lease, which
assignment may be contained in the related Mortgage or in one or more separate
documents duly executed by the borrower in connection with the Mortgage Loan.
In the case of any Mortgage Loan secured by more than one Mortgaged Property,
the term "Assignment of Leases" shall refer to each Assignment of Leases
relating to each such Mortgaged Property and such Mortgage Loan.
"Basic Rent" means, with respect to any Credit Lease, a portion (which may
be 100%) of the rent payable thereunder which is identified in the documents in
the related Mortgage File as "basic rent" or "base rent", which is an amount
sufficient to pay all principal on the related Credit Lease Mortgage Loan, plus
interest thereon at the applicable mortgage interest rate, and to fund related
reserves in the amount required to be funded under the documents in the related
Mortgage File.
"Credit Lease" means, with respect to any Mortgage Loan, any net lease
obligation entered into with respect to the related Mortgaged Property.
"Credit Lease Assignment" means, with respect to any Mortgaged Property,
any Credit Lease assignment or similar agreement executed by the mortgagor, as
assignor thereunder, assigning to the Loan Seller, as assignee thereunder, all
of the income, rents and profits derived from the ownership, operation, leasing
or disposition of all or a portion of such Mortgaged Property, in the form
which was duly executed, acknowledged and delivered by the Mortgagor, as
amended, modified, renewed or extended through the date hereof and from time to
time hereafter.
"Credit Lease Mortgage Loan" means a Mortgage Loan whose related Mortgage
Property is subject to a Credit Lease.
"Lease Policy" means a non-cancelable insurance policy obtained to cover
certain lease termination and rent abatement events arising out of a
condemnation of a Mortgaged Property subject to a Credit Lease.
B-13
<PAGE>
"Mortgage File" means, with respect to each Mortgage Loan, the mortgage
loan documents and any other documents relating to such Mortgage Loan, in each
case to the extent they are delivered to the Trustee.
"Mortgage Loan Schedule" means a schedule of Mortgage Loans delivered to
the Trustee.
"Person" means any individual, partnership, corporation, limited liability
company, joint venture, trust or other entity.
B-14
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800) 246-5761
135 S. Lasalle Street Suite 1740
Chicago, Il 60603
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
WAC:
WAMM:
Number of Pages
---------------
Table of Contents
TOTAL PAGES INCLUDED IN THIS PACKAGE
Specially Serviced Loan Detail Appendix A
Modified Loan Detail Appendix B
Realized Loss Detail Appendix C
INFORMATION IS AVAILABLE FOR THIS ISSUE FROM THE FOLLOWING SOURCES
LaSalle Web Site www.Inbabs.com
LaSalle Bulletin Board (714) 282-3990
LaSalle ASAP Fax System (312) 904-2200
ASAP #:
Monthly Data File Name:
C-1
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800) 246-5761
135 S. Lasalle Street Suite 1740
Chicago, Il 60603
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
WAC:
WAMM:
<TABLE>
<CAPTION>
ORIGINAL OPENING PRINCIPAL PRINCIPAL NEGATIVE CLOSING INTEREST INTEREST PASS-THROUGH
CLASS FACE VALUE(1) BALANCE PAYMENT ADJ. OR LOSS AMORTIZATION BALANCE PAYMENT ADJUSTMENT RATE(2)
CUSIP PER $1,000 PER $1,000 PER $1,000 PER $1,000 PER $1,000 PER $1,000 PER $1,000 PER $1,000 NEXT RATE(3)
- ----- --------- ---------- ----------- ---------- ---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----- --------- ---------- ----------- ---------- ---------- ---------- ---------- ---------- -------------
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
==== ==== ==== ==== ==== ==== ==== ==== ====
TOTAL P&I PAYMENT 0.00
====
</TABLE>
Notes: (1) N denotes notional balance not included in total (2) Interest
Paid minus Interest Adjustment minus Deferred Interest equals Accrual
(3) Estimated
C-2
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800) 246-5761
135 S. Lasalle Street Suite 1625
Chicago, Il 60674-4107
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
WAC:
WAMM:
OTHER RELATED INFORMATION
SERVICER / POOL INFORMATION
<TABLE>
<CAPTION>
BEGINNING SCHEDULED UNSCHEDULED REALIZED ENDING SCHEDULED PREPAYMENT INTEREST
BALANCE PRINCIPAL PRINCIPAL LOSSES BALANCE INTEREST SHORTFALL EXCESS
- ------- --------- --------- ------ ------- -------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
BEGINNING ENDING GROSS W/AVG MONTHS PREPAYMENT DISPOSITION
LOAN COUNT LOAN COUNT SERVICING FEES TO MATURITY PENALTIES FEES
---------- ---------- -------------- ----------- --------- ----
CURRENT CUMULATIVE
UNPAID UNPAID
CLASS INTEREST INTEREST
----- -------- --------
TOTAL
-----
</TABLE>
C-3
<PAGE>
ABN AMRO
LaSalle National Bank
Administrator:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
OTHER RELATED INFORMATION
<TABLE>
<CAPTION>
BEGINNING CURRENT ENDING
P&I ADVANCES MADE BY: UNREIMBURSED PERIOD REIMBURSED UNREIMBURSED
--------------------- ------------ ------ ---------- ------------
<S> <C> <C> <C> <C>
Servicer
Trustee
Fiscal Agent
Total P&I Advances
SUMMARY OF EXPENSES:
Current Period Servicing Fees
Current Period Trustee Fees
Current Period Special Servicing Fees
Principal Recovery Fees
Other Servicing Compensation--Interest on Advances
Total
Net Aggregate PPIS Allocable to the Bonds
Trust Fund Expenses
Current Realized Losses on Mortgage Loans
Cumulative Realized Losses on Mortgage Loans
</TABLE>
C-4
<PAGE>
ABN AMRO
LaSalle National Bank
Administrator:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
OTHER RELATED INFORMATION
<TABLE>
<CAPTION>
REO PROPERTY SOLD OF DISPOSED OF DURING THE RELATED
COLLECTION PERIOD
PORTION FINAL
REALIZED INCLUDED IN RECOVERY
LOAN LOSS SALE OTHER AVAILABLE DETERMINATION
NUMBER ATTRIBUTABLE PROCEEDS PROCEEDS FUNDS DATE
- -------- -------------- ---------- ---------- ------------- --------------
<S> <C> <C> <C> <C> <C>
1
2
3
Totals
</TABLE>
<TABLE>
<CAPTION>
REO PROPERTY INCLUDED
IN THE TRUST
MOST AGGREGATE AGGREGATE PORTION
RECENT AMOUNT AMOUNT INCLUDED IN
LOAN APPRAISAL OF NET OF OTHER AVAILABLE
NUMBER VALUATION INCOME REVENUES FUNDS
- -------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
1
2
3
Totals
</TABLE>
C-5
<PAGE>
ABN AMRO
LaSalle National Bank
Administrator:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
OTHER RELATED INFORMATION
<TABLE>
<CAPTION>
MORTGAGED PROPERTIES THAT BECAME REO DURING
THE PRECEDING CALENDAR MONTH
UNPAID
DEBT PRINCIPAL
SERVICE STATED BALANCE
LOAN PROPERTY COVERAGE PRINCIPAL AS OF REO
NUMBER CITY STATE TYPE RATIO BALANCE DATE
- -------- ------ ------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Totals
</TABLE>
APPRAISAL REDUCTION AMOUNTS
<TABLE>
<CAPTION>
CURRENT TOTAL
LOAN NUMBER PERIOD REDUCTION
- ------------- --------- ----------
<S> <C> <C>
1
2
3
Totals 0.00
</TABLE>
C-6
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
<TABLE>
<CAPTION>
DELINQ 1 MONTH DELINQ 2 MONTHS DELINQ 3+ MONTHS FORECLOSURE/BANKRUPTCY REO
DISTRIBUTION -------------- --------------- ---------------- ---------------------- --------------
DATE # BALANCE # BALANCE # BALANCE # BALANCE # BALANCE
- -------------- --- -------- --- ------- --- -------- --- -------- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/18/98 0 0 0 0 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
</TABLE>
CURR WEIGHTED
MODIFICATIONS PREPAYMENTS AVG.
DISTRIBUTION ------------- ----------- --------------
DATE # BALANCE # BALANCE COUPON REMIT
- -------------- --- ------- --- ------- ------ -----
11/18/98 0 0 0 0
0.00% 0.000% 0.00% 0.000%
Note: Foreclosure and REO Totals are Included in the Appropriate Delinquency
Aging Category
C-7
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
DELINQUENT LOAN DETAIL
<TABLE>
<CAPTION>
PAID OUTSTANDING OUT. PROPERTY SPECIAL
DISCLOSURE DOC THRU CURRENT P&I P&I PROTECTION ADVANCE SERVICER FORECLOSURE BANKRUPTCY REO
CONTROL # DATE ADVANCE ADVANCES** ADVANCES DESCRIPTION(1) TRANSFER DATE DATE DATE DATE
- -------------- ---- ----------- ----------- --------------- -------------- ------------- ----------- ---------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A. P&I ADVANCE--LOAN IN GRACE PERIOD 1. P&I ADVANCE--LOAN DELINQUENT 1 MONTH 3. P&I ADVANCE--LOAN DELINQUENT 3 MONTHS OR MORE
B. P&I ADVANCE--LATE PAYMENT BUT 2. P&I ADVANCE--LOAN DELINQUENT 2 MONTHS 4. MATURED BALLOON/ASSUMED SCHEDULED PAYMENT
LESS THAN ONE MONTH DELINQ
</TABLE>
** Outstanding P&I Advances include the current period P&I Advance
C-8
<PAGE>
ABN AMRO
LASALLE NATIONAL BANK
Administrator:
Carissa Pogue (800)-246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
Statement Date:
Payment Date:
Prior Payment:
Record Date:
POOL TOTAL
<TABLE>
<CAPTION>
DISTRIBUTION OF PRINCIPAL BALANCES DISTRIBUTION OF PROPERTY TYPES
- -------------------------------------------------------------- --------------------------------------------------
(2) CURRENT SCHEDULED NUMBER (2) SCHEDULED BASED ON NUMBER (2) SCHEDULED BASED ON
BALANCES OF LOANS BALANCE BALANCE PROPERTY TYPES OF LOANS BALANCE BALANCE
- ---------------------------- -------- ------------- -------- ---------------- -------- ------------- --------
<S> <C> <C> <S> <C> <C> <C>
$0 TO $ 500,000
$500,000 TO $ 1,000,000
$1,000,000 TO $ 1,500,000
$1,500,000 TO $ 2,000,000
$2,000,000 TO $ 2,500,000
$2,500,000 TO $ 3,000,000
$3,000,000 TO $ 3,500,000
$3,500,000 TO $ 4,000,000
$4,000,000 TO $ 5,000,000
$5,000,000 TO $ 6,000,000
$6,000,000 TO $ 7,000,000
$7,000,000 TO $ 8,000,000
$8,000,000 TO $ 9,000,000 TOTAL 0 0 0.00%
$9,000,000 TO $10,000,000 ---------------- -------- ------------- --------
$10,000,000 TO $11,000,000
$11,000,000 TO $12,000,000
$12,000,000 TO $13,000,000 DISTRIBUTION OF MORTGAGE INTEREST RATES
$13,000,000 TO $14,000,000 --------------------------------------------------
$14,000,000 TO $15,000,000 CURRENT MORTGAGE NUMBER (2) SCHEDULED BASED ON
$15,000,000 & ABOVE INTEREST RATE OF LOANS BALANCE BALANCE
- ----------- -- ----------- ----------------- -------- ------------- --------
TOTAL 0 0 0.00 % <S> <C> <C> <C>
- ---------------------------- -------- ------------- -------- 7.000% OR LESS
AVERAGE SCHEDULED BALANCE IS 0 7.000% TO 7.125%
MAXIMUM SCHEDULED BALANCE IS 0 7.125% TO 7.375%
MINIMUM SCHEDULED BALANCE IS 0 7.375% TO 7.625%
7.625% TO 7.875%
7.875% TO 8.125%
8.125% TO 8.375%
8.375% TO 8.625%
8.625% TO 8.875%
8.875% TO 9.125%
9.125% TO 9.375%
9.375% TO 9.625%
9.625% TO 9.875%
9.875% TO 10.125%
10.125% & ABOVE
----------------- -------- ------------- --------
TOTAL 0 0 0.00%
----------------- -------- ------------- --------
W/AVG MORTGAGE INTEREST RATE IS 0.0000%
MINIMUM MORTGAGE INTEREST RATE IS 0.0000%
MAXIMUM MORTGAGE INTEREST RATE IS 0.0000%
</TABLE>
GEOGRAPHIC DISTRIBUTION
---------------------------------------------------
NUMBER SCHEDULED BASED ON
GEOGRAPHIC LOCATION OF LOANS BALANCE BALANCE
-------------------- -------- --------- --------
-------------------- -------- --------- --------
TOTAL 0 0 0.00%
C-9
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1988-C1
ABN AMRO Statement Date:
LA SALLE NATIONAL BANK Payment Date:
Prior Payment:
Administrator: Record Date:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
POOL TOTAL
LOAN SEASONING
<TABLE>
<CAPTION>
NUMBER (2) SCHEDULED BASED ON
NUMBER OF YEARS OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
Weighted Average Seasoning is 0.0
DISTRIBUTION OF REMAINING TERM
FULLY AMORTIZING
<CAPTION>
FULLY AMORTIZING NUMBER (2) SCHEDULED BASED ON
MORTGAGE LOANS OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
60 months or less
61 to 120 months
121 to 180 months
181 to 240 months
241 to 360 months
Total 0 0 0.00%
Weighted Average Months to Maturity is 0
</TABLE>
<PAGE>
DISTRIBUTION OF DSCR
<TABLE>
<CAPTION>
DEBT SERVICE
COVERAGE RATIO NUMBER (2) SCHEDULED BASED ON
(1) OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
0.500 or less
0.500 to 0.625
0.625 to 0.750
0.750 to 0.875
0.875 to 1.000
1.000 to 1.125
1.125 to 1.250
1.250 to 1.375
1.375 to 1.500
1.500 to 1.625
1.625 to 1.750
1.750 to 1.875
1.875 to 2.000
2.000 to 2.125
2.125 & above
Unknown
Total 0 0 0.00%
Weighted Average Debt Service Coverage Ratio is 0.000
</TABLE>
DISTRIBUTION OF AMORTIZATION TYPE
<TABLE>
<CAPTION>
NUMBER (2) SCHEDULED BASED ON
AMORTIZATION TYPE OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
Total 0 0 0.00%
</TABLE>
DISTRIBUTION OF REMAINING TERM
BALLOON LOANS
<TABLE>
<CAPTION>
BALLOON NUMBER (2) SCHEDULED BASED ON
MORTGAGE LOANS OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
12 months or less
13 to 24 months
25 to 36 months
37 to 48 months
49 to 60 months
61 to 120 months
121 to 180 months
181 to 240 months
Total 0 0 0.00%
Weighted Average Months to Maturity is 0
</TABLE>
<PAGE>
NOI AGING
<TABLE>
<CAPTION>
NUMBER (2) SCHEDULED BASED ON
NOI DATE OF LOANS BALANCE BALANCE
<S> <C> <C> <C>
1 year or less
1 to 2 years
2 Years or More
Unknown
Total 0 0 0.00%
</TABLE>
- ------------
(1) Debt Service Coverage Ratios are calculated as described in the
prospectus, values are updated periodically as new NOI figures became
available from borrowers on an asset level. Neither the Trustee,
Servicer, Special Servicer or Underwriter makes any representation as to
the accuracy of the data provided by the borrower for this calculation.
C-10
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1988-C1
ABN AMRO Statement Date:
LA SALLE NATIONAL BANK Payment Date:
Prior Payment:
Administrator: Record Date:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
ABN AMRO ACCT: 99-9999-99-9
SPECIALLY SERVICED LOAN DETAIL
<TABLE>
<CAPTION>
BEGINNING SPECIALLY
DISCLOSURE SCHEDULED INTEREST MATURITY PROPERTY SERVICED
CONTROL # BALANCE RATE DATE TYPE STATUS CODE (1) COMMENTS
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
(1) Legend:
<TABLE>
<CAPTION>
<S> <C> <C>
1) Request for waiver of Prepayment Penalty 4) Loan with Borrower Bankruptcy 7) Loans Paid Off
2) Payment default 5) Loan in Process of Foreclosure 8) Loans Returned to Master Servicer
3) Request for Loan Modification or Workout 6) Loan now REO Property
</TABLE>
APPENDIX A
C-11
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1988-C1
ABN AMRO Statement Date:
LA SALLE NATIONAL BANK Payment Date:
Prior Payment:
Administrator: Record Date:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
ABN AMRO ACCT: 99-9999-99-9
MODIFIED LOAN DETAIL
<TABLE>
<CAPTION>
DISCLOSURE MODIFICATION MODIFICATION
CONTROL # DATE DESCRIPTION
<S> <C> <C>
</TABLE>
APPENDIX B
C-12
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
GMAC COMMERCIAL MORTGAGE CORP., AS MASTER SERVICER AND SPECIAL SERVICER
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1988-C1
ABN AMRO Statement Date:
LA SALLE NATIONAL BANK Payment Date:
Prior Payment:
Administrator: Record Date:
Carissa Pogue (800) 246-5761
135 S. LaSalle Street Suite 1740
Chicago, IL 60603
ABN AMRO ACCT: 99-9999-99-9
REALIZED LOSS DETAIL
<TABLE>
<CAPTION>
BEGINNING GROSS PROCEEDS AGGREGATE NET NET PROCEEDS
DIST. DISCLOSURE APPRAISAL APPRAISAL SCHEDULED GROSS AS A % OF LIQUIDATION LIQUIDATION AS A % OF REALIZED
DATE CONTROL # DATE VALUE BALANCE PROCEEDS SCHED PRINCIPAL EXPENSES* PROCEEDS SCHED. BALANCE LOSS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT
TOTAL 0.00 0.00 0.00 0.00 0.00
CUMULATIVE 0.00 0.00 0.00 0.00 0.00
</TABLE>
APPENDIX C
* Aggregate liquidation expenses also include outstanding P&I advances and
unpaid servicing fees, unpaid trustee fees, etc.
C-13
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
$1,638,134,628 (APPROXIMATE) OCTOBER 26, 1998
GS MORTGAGE SECURITIES CORPORATION II
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
APPROXIMATE SECURITIES STRUCTURE:
- ---------------------------------
<TABLE>
<CAPTION>
EXPECTED
APPROXIMATE CREDIT EXPECTED EXPECTED
EXPECTED RATING FACE/NOTIONAL SUPPORT WEIGHTED PAYMENT
CLASS (S&P/FITCH) AMOUNT (MM) (% OF UPB) AVERAGE LIFE(a) WINDOW(a)
- -------------------------------------------------------------------------------------
PUBLICLY OFFERED CLASSES
<S> <C> <C> <C> <C> <C>
X AAAr/AAA $1,861.5(b) 9.34 11/98-09/19
A1 AAA /AAA 207.5 30.50% 5.01 11/98-07/07
A2 AAA /AAA 436.0 30.50 9.49 07/07-10/08
A3 AAA/AAA 650.2 30.50 8.99 11/98-10/08
B AA/AA 102.4 25.00 9.97 10/08-10/08
C A /A 102.4 19.50 9.97 10/08-10/08
D BBB/BBB (c) 107.0 13.75 9.97 10/08-10/08
E BBB-/BBB- (c) 32.6 12.00 9.97 10/08-10/08
PRIVATELY OFFERED CLASSES (D)
- -------------------------------------------------------------------------------------
F N/A $83.8 7.50% 9.97 10/08-10/08
G N/A 23.3 6.25 11.11 10/08-12/10
H N/A 55.8 3.25 14.00 12/10-09/13
J N/A 23.3 2.00 15.78 09/13-09/15
K N/A 37.2 18.49 09/15-09/19
TOTAL SECURITIES: $1,861.5 11/98-09/19
- -------------------------------------------------------------------------------------
</TABLE>
(a) Calculated at 0% CPR, no balloon extension and Hyper-Amortization Loans
pay in full on Anticipated Repayment Dates.
(b) Notional amount on interest only class.
(c) Subject to a cap equal to the weighted average Net Mortgage Rate,
determined without regard to any modification of the mortgage loans, in
effect from time to time on the mortgage loans
(d) Not offered hereby.
KEY FEATURES:
- -------------
Lead Manager: Goldman, Sachs & Co.
Mortgage Loan Sellers: Goldman Sachs Mortgage Company:
GSMC Large Loans ($496MM)
Archon ($475MM)
CPC ($300MM)
Amresco Capital, L.P. ($589MM)
Falcon Financial ($1.5MM)
Master Servicer: GMAC Commercial Mortgage
Special Servicer: GMAC Commercial Mortgage
Trustee: LaSalle National Bank
Launch: On or about October 21, 1998
Pricing: On or about October 23, 1998
Closing: On or about October 29, 1998
Cut-Off Date: October 11, 1998
Distribution Date: 18th of each month, or following
business day (commencing November 1998)
ERISA Eligible: Classes A1, A2, A3 and X are expected to
be ERISA eligible subject to certain
conditions for eligibility
SMMEA Eligible: No Classes
Structure: Sequential pay
Day Count: 30/360
Tax Treatment: REMIC
Rated Final Distribution Date: October 18, 2030
Clean up Call: 1.0%
Minimum Denominations: Publicly Offered Classes except
Class X: $10,000 & $1 Class X:
$5,000,000 Notional Amount & $1
Delivery: DTC for publicly traded certificates
- -------------------------------------------------------------------------------
COLLATERAL FACTS:
- -----------------
INITIAL POOL BALANCE: $1,861,517,825
NUMBER OF MORTGAGE LOANS: 322
NUMBER OF MORTGAGED PROPERTIES: 421
AVERAGE CUT-OFF DATE BALANCE: $5,781,111
WEIGHTED AVERAGE CURRENT MORTGAGE RATE (a): 7.371%
WEIGHTED AVERAGE U/W DSCR (b): 1.53x
WEIGHTED AVERAGE CUT-OFF DATE LTV RATIO: 68.8%
WEIGHTED AVERAGE REMAINING TERM TO MATURITY (c): 126 months
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM: 310 months
WEIGHTED AVERAGE SEASONING: 4 months
BALLOON LOANS AS % OF TOTAL: 64.4%
TEN LARGEST LOANS AS % OF TOTAL: 35.2%
- -------------------------------------------------------------------------------
(a) Gross Coupon.
(b) U/W DSCR is the ratio of Underwritten NCF over the annualized debt
service payments.
(c) Anticipated Repayment Date for loans with Hyper-Amortization. All
information presented herein with respect to Hyper-Amortization Loans
assumes that they mature on their respective Anticipated Repayment Dates.
<TABLE>
<CAPTION>
TEN LARGEST LOANS (b)
LOAN BALANCE ($MM) % BY UPB WTD. AVG. DSCR PROP. TYPE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AMERICOLD POOL 147.6 7.9% 1.94x Industrial
AIMCO MULTIFAMILY POOL 109.1 5.9 1.39 Multifamily
EPT POOL 104.7 5.6 2.06 Movie Theater
SKYLINE CITY POOL 87.4 4.7 1.40 Office
WASHINGTON MONARCH HOTEL 47.0 2.5 1.55 Lodging
HOLIDAY INN POOL 44.0 2.4 1.26 Lodging
FIRST PLACE TOWER 32.9 1.8 1.40 Office
FOUR WINDS 31.4 1.7 2.66 Healthcare
FACTORY STORES AT
HERSHEY 25.6 1.4 1.32 Retail
TLS POOL A (a) 25.4 1.4 1.28 Retail/Multifamily
---- --- ----
TOTAL/WEIGHTED
AVERAGE 655.2 35.2% 1.65x
- -----------------------------------------------------------------------------------------
</TABLE>
(a) There is a second related $22.5MM loan pool (TLS Pool B) which is not
crossed with TLS Pool A.
(b) Top ten loans accounting for cross-collateralization
SELECTED LOAN DATA:
- -------------------
<TABLE>
<CAPTION>
CUT-OFF DATE BALANCE
NUMBER OF (AS OF OCT 11, 1998)
MORTGAGED ----------------------------------------------
GEOGRAPHIC DISTRIBUTION PROPERTIES (MM) % BY BALANCE WTD. AVG. DSCR
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA 41 $ 294.1 15.8% 1.51x
NEW YORK 30 163.4 8.8 1.59
TEXAS 48 157.7 8.5 1.65
VIRGINIA 22 128.0 6.9 1.42
OHIO 19 98.3 5.3 1.46
OTHER 261 1,020.0 54.8 1.53
--- ------- ---- ----
TOTAL/WTD. AVG. 421 $1,861.5 100.0% 1.53x
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CUT-OFF DATE BALANCE
NUMBER OF (AS OF OCT 11, 1998)
MORTGAGED ---------------------------------------------
PROPERTY TYPE PROPERTIES (MM) % BY BALANCE WTD. AVG. DSCR
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RETAIL 117 $ 448.6 24.1% 1.35x
LODGING 73 311.8 16.7 1.53
OFFICE 52 301.1 16.2 1.42
MULTIFAMILY 72 294.1 15.8 1.39
INDUSTRIAL 56 244.1 13.1 1.72
MOVIE THEATRE 8 104.7 5.6 2.06
HEALTHCARE 11 93.6 5.0 2.04
OTHER 32 63.5 3.4 1.53
-- ------- --- ----
TOTAL/WTD. AVG. 421 $1,861.5 100.0% 1.53x
- ----------------------------------------------------------------------------------------
</TABLE>
PREPAYMENT RESTRICTIONS (AS OF CUT-OFF DATE):
- ---------------------------------------------
<TABLE>
<CAPTION>
PREPAYMENT RESTRICTIONS LOAN GROUP 1 LOAN GROUP 2 AGGREGATE
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
LOCKOUT/DEFEASANCE 74.8% 58.7% 69.1%
LOCKOUT/GREATER OF YM
OR 1% 22.8 28.5 24.8
LOCKOUT 2.4 12.3 5.9
LOCKOUT/YM 0.0 0.5 0.2
- ------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
MORTGAGE POOL OVERVIEW
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL FACTS LOAN GROUP 1 LOAN GROUP 2 AGGREGATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INITIAL POOL BALANCE: (a) $1,211,297,197 $650,220,628 $1,861,517,825
NUMBER OF MORTGAGE LOANS: (a) 186 137 322
NUMBER OF MORTGAGE PROPERTIES 259 162 421
AVERAGE CUT-OFF DATE BALANCE: $6,512,351 $4,746,136 $5,781,111
WEIGHTED AVERAGE CURRENT MORTGAGE RATE: 7.338% 7.433% 7.371%
WEIGHTED AVERAGE U/W DSCR: 1.59x 1.42x 1.53x
WEIGHTED AVERAGE CUT-OFF DATE LTV RATIO: 66.7% 72.7% 68.8%
WEIGHTED AVERAGE REMAINING TERM TO MATURITY: 132 Months 115 Months 126 Months
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM: 297 Months 334 Months 310 Months
WEIGHTED AVERAGE SEASONING: 4 Months 4 Months 4 Months
BALLOON/ARD LOANS AS % OF TOTAL: (b) 87.4% 100.0% 91.8%
FIVE LARGEST LOANS AS % OF TOTAL: 34.7% 28.5% 26.6%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
(b) Balloon Loans are 48.2% of Loan Group I, 94.5% of Loan Group 2 and 64.4%
of Aggregate.
- ------------------------
TOP FIVE LOANS
- ------------------------
LOAN GROUP ONE
- --------------
<TABLE>
<CAPTION>
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Americold Pool $147.6 12.2% 1.94x Industrial
EPT Pool 104.7 8.6 2.06 Movie Theatre
Skyline City Pool 87.4 7.2 1.40 Office
Washington 47.0 3.9 1.55 Lodging
Monarch Hotel
First Place 32.9 2.7 1.40 Office
Tower
- -------------------------------------------------------------------
</TABLE>
LOAN GROUP TWO
- --------------
<TABLE>
<CAPTION>
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIMCO MF Pool (a) $79.8 12.3% 1.39x Multifamily
Holiday Inn Pool 44.0 6.8 1.25 Lodging
Factory Stores at 25.6 3.9 1.32 Retail
Hershey
The Original 21.5 3.3 1.54 Retail
Outlet Mall
761 7th Ave. 14.5 2.2 1.35 Retail
- -------------------------------------------------------------------
</TABLE>
AGGREGATE
- ---------
<TABLE>
<CAPTION>
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Americold Pool $147.6 7.9% 1.94x Industrial
AIMCO MF Pool 109.1 5.9 1.39 Multifamily
EPT Pool 104.7 5.6 2.06 Movie Theater
Skyline City Pool 87.4 4.7 1.40 Officer
Washington 47.0 2.5 1.55 Lodging
Monarch Hotel
- -------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1
($29.3MM) and Loan Group 2 ($79.8MM)
- ------------------------
TOP FIVE STATES
- ------------------------
LOAN GROUP ONE
- --------------
<TABLE>
<CAPTION>
NUMBER OF
GEOGRAPHIC MORTGAGE BALANCE % BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
California 18 $164.0 13.5% 1.61x
Virginia 19 118.3 9.8 1.42
New York 21 109.5 9.0 1.71
Texas 26 101.5 8.4 1.74
Washington 10 68.1 5.6 1.66
- ------------------------------------------------------------
</TABLE>
LOAN GROUP TWO
- --------------
<TABLE>
<CAPTION>
NUMBER OF
GEOGRAPHIC MORTGAGE BALANCE % BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
California 23 130.1 20.0% 1.37x
Ohio 10 60.7 9.3 1.29
Texas 22 56.2 8.6 1.49
New York 9 53.9 8.3 1.34
Maryland 4 35.7 5.5 1.48
- ------------------------------------------------------------
</TABLE>
AGGREGATE
- ---------
<TABLE>
<CAPTION>
NUMBER OF
GEOGRAPHIC MORTGAGE BALANCE % BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
California 41 $294.1 15.8% 1.51x
New York 30 163.4 8.8 1.59
Texas 48 157.7 8.5 1.65
Virginia 22 128.0 6.9 1.42
Ohio 19 98.3 5.3 1.46
- ------------------------------------------------------------
</TABLE>
- ------------------------------------
TOP FIVE PROPERTY TYPES
- ------------------------------------
LOAN GROUP ONE
- --------------
<TABLE>
<CAPTION>
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- ---------------------------------------------------------
<S> <C> <C> <C> <C>
Lodging 65 $254.4 21.0% 1.58x
Retail 67 224.9 18.6 1.27
Office 29 215.1 17.8 1.39
Industrial 42 207.7 17.1 1.77
Movie Theatre 8 104.7 8.6 2.06
- ---------------------------------------------------------
</TABLE>
LOAN GROUP TWO
- --------------
<TABLE>
<CAPTION>
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- ---------------------------------------------------------
<S> <C> <C> <C> <C>
Multifamily 60 $235.2 36.2% 1.41x
Retail 50 223.7 34.4 1.44
Office 23 86.0 13.2 1.50
Lodging 8 57.4 8.8 1.26
Industrial 14 36.4 5.6 1.45
- ---------------------------------------------------------
</TABLE>
AGGREGATE
- ---------
<TABLE>
<CAPTION>
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- ---------------------------------------------------------
<S> <C> <C> <C> <C>
Retail 117 $448.6 24.1% 1.35x
Lodging 73 311.8 16.7 1.53
Office 52 301.1 16.2 1.42
Multifamily 72 294.1 15.8 1.39
Industrial 56 244.1 13.1 1.72
- ---------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
STRUCTURAL OVERVIEW
- -------------------------------------------------------------------------------
o For purposes of calculating principal distributions of the Certificates,
the Mortgage Pool will be comprised of two Loan Groups:
o Available principal from Group 1 will be allocated sequentially to A1,
A2, A3, B, C, D, E, F, G, H, J, K
o Available principal from Group 2 will be allocated sequentially to A3,
A1, A2, B, C, D, E, F, G, H, J, K certificates
o In case the principal balance of K, J, H, G, F, E, D, C, B, in that
order, have been reduced to zero due to the allocation of principal
losses, then A1, A2 and A3 will be allocated principal pro rata.
o Class X will be entitled to receive payments of interest only and will not
receive any payments of principal. Class X will be entitled to payments of
interest pro rata (based on interest entitlements) with the Class A1, A2,
and A3 Certificates each month.
o Each class will be subordinate to the Class A1, A2, A3, and X and to each
class with an earlier alphabetic designation than such class. Each of the
Class A1, A2, A3, and X Certificates will be of equal priority.
o All classes will pay interest on a 30/360 basis.
o Principal Losses will be allocated in reverse alphabetical order to Class
K, J, H, G, F, E, D, C, B, and then pro rata to Class A1, A2, and A3.
o The Master Servicer will cover net prepayment interest shortfalls, for any
month up to the portion of the Master Servicing Fee equal to 4 basis points
per annum on the principal balance of the loans. (Calculated on the basis
of the same number of days as which the related loan would otherwise accrue
interest during the related month.) Net shortfalls (after application of
prepayment interest excesses and other Servicer coverage from the Master
Servicing Fee) will be allocated pro-rata (based on interest entitlements)
to all regular Certificates.
o Shortfalls resulting from Master Servicer and Special Servicer
modifications, Special Servicer compensation or other extraordinary trust
fund expenses will be allocated in reverse alphabetical order to classes
other than to the Class X among the outstanding Certificates.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
ALLOCATION OF PREPAYMENT PENALTIES (a)
- -------------------------------------------------------------------------------
ALLOCATION OF PREPAYMENT PREMIUMS FOR EACH LOAN GROUP
- -----------------------------------------------------
Prepayment premiums with respect to a Loan Group will be allocated between the
related Certificates then entitled to principal distributions and the Class X
Certificates as follows:
o A percentage of all prepayment premiums (either fixed prepayment
premiums or yield maintenance amounts) with respect to a Loan Group
will be allocated to each class of the Certificates then entitled to
principal distributions, which percentage will be equal to the product
of (a) the percentage of the total principal distribution that such
Class receives, and (b) a percentage (which can be no greater than
100%), the numerator of which is the excess of the Pass-Through Rate
of the Class of the Certificates currently receiving principal over
the relevant Discount Rate, and the denominator of which is the excess
of the Mortgage Rate of the related Mortgage Loan over the Discount
Rate.
--------------------------------------------------------------
| Prepayment (Pass-Through Rate - Discount Rate) |
| Premium Allocation = ------------------------------------- |
| Percentage (Mortgage Rate - Discount Rate) |
--------------------------------------------------------------
o The remaining percentage of such prepayment premiums will be allocated
to the Class X Certificates
o In general, this formula provides for an increase in the allocation of
prepayment premiums to the Certificates then entitled to principal
distributions relative to the Class X Certificates as Discount Rates
decrease and a decrease in the allocation to such Classes as Discount
Rates rise
Allocation of Prepayment Premiums Example
-----------------------------------------
Discount Rate Fraction Methodology:
Mortgage Rate = 8%
Bond Class Rate = 6%
Treasury Rate = 5%
BOND CLASS ALLOCATION | CLASS X ALLOCATION
--------------------------|------------------------------------------------
6% - 5% |
------- = 33 1/3% | Receives excess premiums = 66 2/3% thereof
8% - 5% |
(a) For further information regarding the allocation of prepayment penalties,
refer to the Prospectus supplement.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
PREPAYMENT PROVISIONS
- -------------------------------------------------------------------------------
PREPAYMENT LOCK-OUT/ PREPAYMENT PREMIUM ANALYSIS / DEFEASANCE
PERCENTAGE OF MORTGAGE POOL BY PREPAYMENT RESTRICTION
ASSUMING NO PREPAYMENT OF PRINCIPAL (a)
o AGGREGATE POOL
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 99.42% 99.42% 84.90% 24.69% 7.98% 7.40% 6.99% 6.57% 6.08% 0.06% 0.00%
Defeasance 0.00 0.00 13.51 68.69 68.70 68.87 69.45 69.51 69.70 66.16 71.54
Greater of
YM and 1% (b) 0.58 0.58 1.59 6.62 23.32 23.73 23.23 23.91 24.09 18.28 28.46
SUBTOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.68% 100.00% 99.88% 84.50% 100.00%
Open 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.32% 0.00% 0.12% 15.50% 0.00%
TOTALS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 1,861.52 1,839.41 1,815.92 1,790.29 1,762.67 1,732.93 1,683.64 1,634.24 1,596.96 1,545.14 137.99
% of UPB 100.00% 98.81% 97.55% 96.17% 94.69% 93.09% 90.44% 87.79% 85.79% 83.00% 7.41%
<CAPTION>
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance 71.50 72.97 73.06 76.97 79.67 80.18 81.07 82.61 85.91 75.88
Greater of
YM and 1% (b) 28.50 27.03 26.94 18.92 20.33 19.82 18.58 17.39 3.95 0.00
SUBTOTAL 100.00% 100.00% 100.00% 95.89% 100.00% 100.00% 99.66% 100.00% 89.86% 75.88%
Open 0.00% 0.00% 0.00% 4.11% 0.00% 0.00% 0.34% 0.00% 10.14% 24.12%
TOTALS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.25 12.23 1.52
% of UPB 6.95% 6.32% 5.80% 4.97% 3.03% 2.50% 1.92% 1.30% 0.66% 0.08%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
o LOAN GROUP 1
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 99.11% 99.11% 76.75% 19.56% 4.79% 4.11% 3.87% 3.14% 2.62% 0.10% 0.00%
Defeasance 0.00 0.00 20.79 74.24 74.24 74.48 75.46 75.85 75.89 74.63 71.54
Greater of
YM and 1% 0.89 0.89 2.45 6.20 20.97 21.41 20.17 21.01 21.30 17.90 28.46
SUBTOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.50% 100.00% 99.81% 92.63% 100.00%
Open 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 0.00% 0.19% 7.37% 0.00%
TOTALS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 1,211.30 1,195.86 1,179.44 1,161.55 1,142.29 1,121.55 1,081.85 1,052.78 1,026.62 986.80 137.99
% of UPB 100.00% 98.73% 97.37% 95.89% 94.30% 92.59% 89.31% 86.91% 84.75% 81.47% 11.39%
<CAPTION>
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Defeasance 71.50 72.97 73.06 76.97 79.67 80.18 81.07 82.61 85.91 75.88
Greater of
YM and 1% 28.50 27.03 26.94 18.92 20.33 19.82 18.58 17.39 3.95 0.00
SUBTOTAL 100.00% 100.00% 100.00% 95.89% 100.00% 100.00% 99.66% 100.00% 89.86% 75.88%
Open 0.00% 0.00% 0.00% 4.11% 0.00% 0.00% 0.34% 0.00% 10.14% 24.12%
TOTALS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.25 12.23 1.52
% of UPB 10.68% 9.71% 8.91% 7.64% 4.66% 3.84% 2.95% 2.00% 1.01% 0.13%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
o LOAN GROUP 2
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 100.00% 100.00% 100.00% 34.17% 13.85% 13.45% 12.61% 12.79% 12.32% 0.00% 0.00%
Defeasance 0.00 0.00 0.00 58.44 58.50 58.57 58.65 58.03 58.56 51.19 0.00
Greater of
YM and 1% (b) 0.00 0.00 0.00 7.38 27.64 27.98 28.74 29.18 29.12 18.94 0.00
SUBTOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 70.14% 0.00%
Open 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 29.86% 0.00%
TOTALS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%
UPB ($MM) 650.22 643.55 636.48 628.73 620.38 611.38 601.79 581.46 570.34 558.34 0.00
% of UPB 100.00% 98.97% 97.89% 96.70% 95.41% 94.03% 92.55% 89.42% 87.71% 85.87% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Table calculated using modeling assumptions.
(b) One Mortgage Loan, representing approximately 0.2% of the Initial Pool
Balance provides for YM only.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
AVERAGE LIFE TABLE (IN YEARS)
(PREPAYMENTS LOCKED OUT THROUGH LOCK OUT PERIOD,
DEFEASANCE AND YIELD MAINTENANCE PERIOD, THEN RUN AT THE INDICATED CPRS)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PREPAYMENT ASSUMPTIONS (CPR)
0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
X 9.34 9.28 9.25 9.22 9.04
A1 5.01 5.00 4.99 4.98 4.93
A2 9.49 9.46 9.43 9.38 9.16
A3 8.99 8.91 8.87 8.81 8.57
B 9.97 9.80 9.79 9.75 9.61
C 9.97 9.82 9.80 9.80 9.68
D 9.97 9.89 9.89 9.86 9.72
E 9.97 9.89 9.89 9.89 9.72
F 9.97 9.96 9.96 9.95 9.90
G 11.11 11.10 11.10 11.09 11.05
H 14.00 13.98 13.95 13.91 13.73
J 15.78 15.78 15.78 15.78 15.76
K 18.49 18.49 18.48 18.48 18.44
- -------------------------------------------------------------------------------
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCE
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE
CUT-OFF WEIGHTED WEIGHTED REMAINING WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF DATE AVERAGE AVERAGE TERM TO AVERAGE
RANGE OF CURRENT MORTGAGE CUT-OFF DATE CUT-OFF DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY CUT-OFF DATE
PRINCIPAL BALANCES LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - 999,999 13 $ 9,892,085 0.53% $ 760,930 1.60x 7.38% 144.0 70.8%
1,000,000 - 1,999,999 91 141,179,673 7.58 1,551,425 1.46 7.44 152.4 71.1
2,000,000 - 2,999,999 64 159,553,894 8.57 2,493,030 1.44 7.43 134.5 71.7
3,000,000 - 3,999,999 49 171,065,279 9.19 3,491,128 1.41 7.34 139.6 71.9
4,000,000 - 4,999,999 29 131,320,516 7.05 4,528,294 1.42 7.23 125.2 72.0
5,000,000 - 5,999,999 15 81,623,716 4.38 5,441,581 1.41 7.34 124.5 74.0
6,000,000 - 6,999,999 10 65,329,158 3.51 6,532,916 1.43 7.26 127.6 70.9
7,000,000 - 7,999,999 5 38,036,492 2.04 7,607,298 1.43 7.58 115.8 73.6
8,000,000 - 8,999,999 6 50,376,162 2.71 8,396,027 1.51 7.37 115.3 72.5
9,000,000 - 9,999,999 6 57,198,374 3.07 9,533,062 1.51 7.33 137.3 71.7
10,000,000 - 11,999,999 8 84,741,317 4.55 10,592,665 1.50 7.35 120.2 70.8
12,000,000 - 13,999,999 7 89,869,426 4.83 12,838,489 1.41 7.40 125.2 70.2
14,000,000 - 16,999,999 3 43,669,186 2.35 14,556,395 1.38 7.11 116.3 67.9
17,000,000 - 19,999,999 4 73,285,333 3.94 18,321,333 1.37 7.65 135.3 69.5
20,000,000 - 24,999,999 5 109,967,084 5.91 21,993,417 1.78 7.99 117.4 71.0
25,000,000 - 49,999,999 3 105,490,514 5.67 35,163,505 1.45 7.07 118.5 66.2
50,000,000 - 147,597,677 4 448,919,618 24.12 112,229,904 1.73 7.29 115.1 61.8
--- -------------- ------ ------------ ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCES
LOAN GROUP ONE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE
CUT-OFF WEIGHTED WEIGHTED REMAINING WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF DATE AVERAGE AVERAGE TERM TO AVERAGE
RANGE OF CURRENT MORTGAGE CUT-OFF DATE CUT-OFF DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY CUT-OFF DATE
PRINCIPAL BALANCES (a) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - 999,999 5 $ 4,334,893 0.36% $ 866,979 1.67x 7.59% 179.2 67.0%
1,000,000 - 1,999,999 59 93,733,457 7.74 1,588,703 1.47 7.51 170.6 70.7
2,000,000 - 2,999,999 36 91,145,037 7.52 2,531,807 1.45 7.48 148.8 71.0
3,000,000 - 3,999,999 27 93,364,646 7.71 3,457,950 1.40 7.45 159.8 71.2
4,000,000 - 4,999,999 15 66,915,463 5.52 4,461,031 1.41 7.30 133.9 70.2
5,000,000 - 5,999,999 5 28,002,421 2.31 5,600,484 1.38 7.25 140.6 74.2
6,000,000 - 6,999,999 6 40,004,703 3.30 6,667,450 1.37 7.22 135.5 70.0
7,000,000 - 7,999,999 4 30,394,811 2.51 7,598,703 1.45 7.59 117.2 73.8
8,000,000 - 8,999,999 3 24,990,341 2.06 8,330,114 1.39 7.66 113.7 75.4
9,000,000 - 9,999,999 3 28,603,746 2.36 9,534,582 1.61 7.46 159.9 69.5
10,000,000 - 11,999,999 4 42,022,120 3.47 10,505,530 1.61 7.77 132.3 66.5
12,000,000 - 13,999,999 5 63,817,796 5.27 12,763,559 1.47 7.28 128.3 68.7
14,000,000 - 16,999,999 1 15,000,000 1.24 15,000,000 1.45 6.91 112.0 52.3
17,000,000 - 19,999,999 4 73,285,333 6.05 18,321,333 1.37 7.65 135.3 69.5
20,000,000 - 24,999,999 3 66,689,673 5.51 22,229,891 2.03 8.32 116.1 63.6
25,000,000 - 49,999,999 3 109,222,740 9.02 36,407,580 1.46 7.38 116.4 61.6
50,000,000 - 147,597,677 3 339,770,015 28.05 113,256,672 1.84 6.90 116.4 62.0
--- -------------- ------ ------------ ---- ---- ----- ----
TOTAL 186 $1,211,297,197 100.00% $ 6,512,351 1.59x 7.34% 132.0 66.7%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCES
LOAN GROUP TWO
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE
CUT-OFF WEIGHTED WEIGHTED REMAINING WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF DATE AVERAGE AVERAGE TERM TO AVERAGE
RANGE OF CURRENT MORTGAGE CUT-OFF DATE CUT-OFF DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY CUT-OFF DATE
PRINCIPAL BALANCES (a) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - 999,999 8 $ 5,557,192 0.85% $ 694,649 1.54x 7.23% 116.5 73.8%
1,000,000 - 1,999,999 32 47,446,216 7.30 1,482,694 1.45 7.30 116.6 71.8
2,000,000 - 2,999,999 28 68,408,857 10.52 2,443,173 1.42 7.37 115.5 72.8
3,000,000 - 3,999,999 22 77,700,632 11.95 3,531,847 1.42 7.21 115.4 72.8
4,000,000 - 4,999,999 14 64,405,053 9.91 4,600,361 1.43 7.16 116.2 73.8
5,000,000 - 5,999,999 10 53,621,295 8.25 5,362,130 1.42 7.39 116.1 73.9
6,000,000 - 6,999,999 4 25,324,455 3.89 6,331,114 1.53 7.32 115.0 72.4
7,000,000 - 7,999,999 1 7,641,681 1.18 7,641,681 1.36 7.54 110.0 73.1
8,000,000 - 8,999,999 3 25,385,821 3.90 8,461,940 1.63 7.09 116.8 69.7
9,000,000 - 9,999,999 3 28,594,628 4.40 9,531,543 1.41 7.20 114.7 73.9
10,000,000 - 11,999,999 4 42,719,197 6.57 10,679,799 1.39 6.94 108.3 75.1
12,000,000 - 13,999,999 2 26,051,630 4.01 13,025,815 1.28 7.71 117.5 74.0
14,000,000 - 16,999,999 2 28,669,186 4.41 14,334,593 1.35 7.21 118.5 76.1
20,000,000 - 24,999,999 2 43,277,411 6.66 21,638,705 1.39 7.49 119.5 82.4
25,000,000 - 49,999,999 1 25,580,579 3.93 25,580,579 1.32 7.39 119.0 79.9
50,000,000 - 147,597,677 1 79,836,798 12.28 79,836,798 1.39 8.50 111.0 61.2
--- ------------ ------ ---------- ---- ---- ----- ----
TOTAL 137 650,220,628 100.00% $ 4,746,136 1.42x 7.43% 115.2 72.7%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE (a)
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE
CUT-OFF WEIGHTED WEIGHTED REMAINING WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF DATE AVERAGE AVERAGE TERM TO AVERAGE
MORTGAGE CUT-OFF DATE CUT-OFF DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY CUT-OFF DATE
STATE LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California 41 $ 294,077,203 15.80% $ 7,172,615 1.51x 7.53% 116.4 68.5%
New York 30 163,395,938 8.78 5,446,531 1.59 7.71 119.7 67.4
Texas 48 157,716,858 8.47 3,285,768 1.65 7.21 134.2 70.2
Virginia 22 127,968,671 6.87 5,816,758 1.42 7.20 125.0 72.3
Ohio 19 98,318,576 5.28 5,174,662 1.46 7.58 117.9 71.4
Washington 13 83,788,247 4.50 6,445,250 1.63 7.19 116.5 64.1
Florida 25 67,734,586 3.64 2,709,383 1.41 7.39 130.6 74.2
Oregon 8 62,941,850 3.38 7,867,731 1.68 7.21 116.3 63.1
Maryland 14 58,684,345 3.15 4,191,739 1.45 7.43 125.8 69.3
District of Columbia 2 52,315,613 2.81 26,157,807 1.52 6.77 119.9 55.6
Michigan 9 52,148,068 2.80 5,794,230 1.41 7.64 158.0 70.1
Pennsylvania 5 50,654,823 2.72 10,130,965 1.55 7.23 125.1 71.0
Tennessee 12 44,497,695 2.39 3,708,141 1.45 7.28 142.8 72.4
Wisconsin 4 40,135,242 2.16 10,033,810 1.67 6.93 117.8 71.4
Oklahoma 3 39,820,432 2.14 13,273,477 1.38 7.23 115.4 74.5
Puerto Rico 2 38,377,755 2.06 19,188,878 1.62 7.89 113.9 66.9
New Mexico 23 37,246,054 2.00 1,619,394 1.52 7.54 117.1 72.2
Massachusetts 13 35,148,109 1.89 2,703,701 1.55 7.12 114.9 67.0
Georgia 10 34,245,325 1.84 3,424,533 1.55 7.34 158.9 70.3
Louisiana 9 33,964,040 1.82 3,773,782 1.46 7.33 141.0 73.9
Connecticut 11 28,842,897 1.55 2,622,082 1.54 7.28 114.3 63.6
Illinois 7 25,801,584 1.39 3,685,941 1.57 7.08 133.6 66.9
Arizona 6 22,140,526 1.19 3,690,088 1.36 7.68 120.9 67.2
Kentucky 9 20,300,455 1.09 2,255,606 1.45 7.52 212.9 72.4
Minnesota 9 20,025,695 1.08 2,225,077 1.46 7.28 114.5 72.2
Idaho 3 19,319,783 1.04 6,439,928 1.85 6.94 114.8 59.5
Colorado 8 19,069,730 1.02 2,383,716 1.50 7.12 110.3 71.6
Arkansas 5 15,919,238 0.86 3,183,848 1.42 7.63 124.2 69.5
Indiana 4 14,654,090 0.79 3,663,523 1.44 8.14 143.5 65.3
Missouri 2 13,484,050 0.72 6,742,025 1.95 6.90 135.1 62.7
Nebraska 7 12,777,182 0.69 1,825,312 1.37 7.64 170.4 66.8
Utah 4 11,606,330 0.62 2,901,582 1.79 7.16 115.2 60.0
South Carolina 4 10,090,706 0.54 2,522,677 1.44 7.37 209.3 72.7
New Hampshire 2 8,082,073 0.43 4,041,036 1.26 6.35 239.4 71.5
Iowa 3 7,384,419 0.40 2,461,473 1.77 7.09 115.3 61.1
Nevada 3 6,919,163 0.37 2,306,388 1.46 7.28 118.4 61.6
Alabama 9 5,949,607 0.32 661,067 1.61 7.74 154.7 62.9
Rhode Island 3 5,765,973 0.31 1,921,991 1.46 7.15 117.7 75.1
Vermont 1 5,161,627 0.28 5,161,627 1.32 7.05 113.0 78.6
Kansas 2 3,978,438 0.21 1,989,219 1.40 7.58 114.7 64.7
Mississippi 3 3,334,171 0.18 1,111,390 1.38 7.21 115.4 74.3
West Virginia 1 2,290,025 0.12 2,290,025 1.35 7.06 114.0 76.3
North Carolina 1 2,094,922 0.11 2,094,922 1.50 7.76 118.0 67.6
New Jersey 1 1,998,409 0.11 1,998,409 1.32 7.15 119.0 64.5
Delaware 1 1,347,306 0.07 1,347,306 1.69 7.71 118.0 72.8
--- -------------- ------ --------- ---- ---- ----- ----
TOTAL 421 $1,861,517,825 100.0% $ 4,421,658 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Information in this table is presented on the mortgaged property level
based on allocated loan amounts and therefore may differ from information
presented on the mortgage loan level.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE
AGGREGATE
- -------------------------------------------------------------------------------
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF UNITED STATES OF AMERICA]
California 15.80% Kentucky 1.09%
New York 8.78% Minnesota 1.08%
Texas 8.47% Idaho 1.04%
Virginia 6.87% Colorado 1.02%
Ohio 5.28% Arkansas 0.86%
Washington 4.50% Indiana 0.79%
Florida 3.64% Missouri 0.72%
Oregon 3.38% Nebraska 0.69%
Maryland 3.15% Utah 0.62%
District of Columbia 2.81% South Carolina 0.54%
Michigan 2.80% New Hampshire 0.43%
Pennsylvania 2.72% Iowa 0.40%
Tennessee 2.39% Nevada 0.37%
Wisconsin 2.16% Alabama 0.32%
Oklahoma 2.14% Rhode Island 0.31%
Puerto Rico 2.06% Vermont 0.28%
New Mexico 2.00% Kansas 0.21%
Massachusetts 1.89% Mississippi 0.18%
Georgia 1.84% West Virginia 0.12%
Louisiana 1.82% North Carolina 0.11%
Connecticut 1.55% New Jersey 0.11%
Illinois 1.39% Delaware 0.07%
Arizona 1.19%
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
Other Virginia
46.66% 6.87%
California Ohio
15.80% 5.28%
New York Washington
8.78% 4.50%
Texas Florida
8.47% 3.64%
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
DISTRIBUTION OF PROPERTY TYPES
AGGREGATE
- -------------------------------------------------------------------------------
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
Retail Industrial
24.1% 13.1%
Lodging Movie Theatre
16.7% 5.6%
Office Healthcare
16.2% 5.0%
Multifamily Other
15.8% 3.5%
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING CUT-OFF
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO DATE
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY LTV
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE (MOS) RATIO
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail 117 $ 448,577,458 24.1% $ 3,833,995 1.35x 7.36% 132.8 74.1%
Lodging 73 311,801,239 16.7 4,271,250 1.53 7.49 139.7 68.3
Office 52 301,139,444 16.2 5,791,143 1.42 7.22 114.7 71.7
Multifamily 72 294,076,829 15.8 4,084,400 1.39 7.61 120.4 71.2
Industrial 56 244,082,727 13.1 4,358,620 1.72 7.07 127.9 61.2
Movie Theatre 8 104,748,392 5.6 13,093,549 2.06 6.77 117.0 61.6
Healthcare 11 93,602,144 5.0 8,509,286 2.04 8.37 116.2 60.2
Other 32 63,489,591 3.4 1,984,050 1.53 7.18 115.7 63.5
- ----- -- ---------- --- --------- ---- ---- ----- ----
TOTAL 421 $1,861,517,825 100.0% $ 4,421,658 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
STRUCTURAL AND COLLATERAL TERM SHEET
- -------------------------------------------------------------------------------
DISTRIBUTION OF PROPERTY TYPES
LOAN GROUP ONE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING CUT-OFF
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO DATE
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY LTV
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE (MOS) RATIO
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lodging 65 $254,409,133 21.0% $ 3,913,987 1.58x 7.38% 144.6 66.3%
Retail 67 224,915,312 18.6 3,356,945 1.27 7.46 148.7 73.7
Office 29 215,113,405 17.8 7,417,704 1.39 7.20 116.0 72.5
Industrial 42 207,659,656 17.1 4,944,278 1.77 7.02 130.1 59.5
Movie Theatre 8 104,748,392 8.6 13,093,549 2.06 6.77 117.0 61.6
Healthcare 10 91,087,010 7.5 9,108,701 2.06 8.39 116.2 60.4
Multifamily (a) 12 58,835,141 4.9 4,902,928 1.35 7.93 144.7 68.6
Other 26 54,529,148 4.5 2,097,275 1.58 7.11 115.9 62.2
--- -------------- ----- ----------- ---- ---- ----- ----
TOTAL/WEIGHTED
AVERAGE 259 $1,211,297,197 100.0% $ 4,676,823 1.59x 7.34% 132.0 66.7%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OF PROPERTY TYPES
LOAN GROUP TWO
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING CUT-OFF
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO DATE
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY LTV
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE (MOS) RATIO
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily (a) 60 $ 235,241,688 36.2% $ 3,920,695 1.41x 7.53% 114.4 71.8%
Retail 50 223,662,146 34.4 4,473,243 1.44 7.26 116.9 74.4
Office 23 86,026,039 13.2 3,740,263 1.50 7.27 111.3 69.6
Lodging 8 57,392,106 8.8 7,174,013 1.26 7.99 118.1 76.8
Industrial 14 36,423,071 5.6 2,601,648 1.45 7.34 115.4 70.8
Other 6 8,960,443 1.4 1,493,407 1.22 7.57 114.5 71.7
Healthcare 1 2,515,134 0.4 2,515,134 1.38 7.88 118.0 50.3
--- ------------- ----- ----------- ---- ---- ----- ----
TOTAL/WEIGHTED
AVERAGE 162 $ 650,220,628 100.0% $ 4,013,708 1.42x 7.43% 115.2 72.7%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
DEBT SERVICE COVERAGE RATIO
AGGREGATE
- -------------------------------------------------------------------------------
o Weighted Average Current Debt Service Coverage Ratio: 1.53x
o 95% of the Portfolio has Debt Service Coverage Ratio greater than or equal
to 1.20x
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
APPROXIMATE AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
RANGE OF CURRENT NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
DEBT SERVICE MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
COVERAGE RATIOS LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.00 - 1.10x (a) 5 $ 10,109,784 0.54% $ 2,021,957 1.04x 6.89% 204.3 88.3%
1.11 - 1.20 12 75,489,362 4.06 6,290,780 1.17 7.68 127.0 77.8
1.21 - 1.30 56 243,577,366 13.08 4,349,596 1.27 7.41 129.9 74.1
1.31 - 1.40 92 604,416,910 32.47 6,569,749 1.37 7.51 125.5 70.9
1.41 - 1.50 58 229,829,840 12.35 3,962,583 1.45 7.24 125.0 71.5
1.51 - 1.60 38 230,133,557 12.36 6,056,146 1.55 7.22 125.3 66.9
1.61 - 1.70 30 78,939,807 4.24 2,631,327 1.66 7.36 136.7 69.5
1.71 - 1.80 10 20,199,498 1.09 2,019,950 1.75 7.42 174.5 67.8
1.81 - 1.90 7 37,696,554 2.03 5,385,222 1.82 7.92 125.3 61.3
1.91 - 2.00 5 170,698,662 9.17 34,139,732 1.94 6.93 117.4 57.2
2.01 - 2.10 1 104,748,392 5.63 104,748,392 2.06 6.77 117.0 61.7
2.11 - 2.20 1 8,000,000 0.43 8,000,000 2.14 7.22 112.0 49.4
2.21 - 2.30 3 20,305,133 1.09 6,768,378 2.27 8.62 116.5 56.1
2.31 - 2.40 1 1,669,271 0.09 1,669,271 2.31 7.79 238.0 59.2
2.41 - 2.50 1 1,395,552 0.07 1,395,552 2.41 7.13 179.0 45.8
2.51 - 2.85 2 24,308,138 1.31 12,154,069 2.81 9.06 117.4 60.1
--- -------------- ------ ------------ ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Credit tenant loans.
- -------------------------------------------------------------------------------
CUT-OFF DATE LOAN TO VALUE RATIO
AGGREGATE
- -------------------------------------------------------------------------------
o Weighted Average Cut-off Date Loan to Value Ratio: 68.8%
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
RANGE OF LOAN TO MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
VALUE RATIOS LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
30.1 - 50.0% 7 $ 18,402,755 0.99% $ 2,628,965 2.07x 7.16% 138.8 47.6%
50.1 - 60.0 24 321,451,506 17.27 13,393,813 1.78 7.22 124.8 56.1
60.1 - 65.0 33 351,671,704 18.89 10,656,718 1.73 7.65 117.6 61.9
65.1 - 70.0 44 145,240,871 7.80 3,300,929 1.46 7.35 136.9 67.9
70.1 - 75.0 121 562,464,197 30.22 4,648,464 1.41 7.32 129.3 72.5
75.1 - 80.0 71 349,040,666 18.75 4,916,066 1.36 7.32 123.5 78.3
80.1 - 85.0 14 72,712,832 3.91 5,193,774 1.29 7.24 135.2 81.2
85.1 - 90.0 (a) 6 36,959,182 1.99 6,159,864 1.29 7.72 120.2 86.9
95.1 - 100.0 (a) 2 3,574,111 0.19 1,787,055 1.00 7.04 224.5 97.0
--- -------------- ------ ----------- ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Six loans are credit tenant loans
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
REMAINING AMORTIZATION TERM (IN MONTHS)
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
RANGE OF NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
AMORTIZATION MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
TERMS (MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest Only (a) 3 $ 70,000,000 3.76% $23,333,333 1.60x 6.84% 117.4 52.9%
131 - 150 1 1,180,618 0.06 1,180,618 1.68 8.17 140.0 58.3
171 - 190 6 13,612,708 0.73 2,268,785 1.37 7.14 156.0 66.5
191 - 210 1 1,657,162 0.09 1,657,162 1.20 6.97 210.0 78.9
211 - 230 4 7,957,917 0.43 1,989,479 1.21 7.67 223.5 84.2
231 - 250 51 141,419,063 7.60 2,772,923 1.46 7.44 219.9 68.7
251 - 270 2 11,303,406 0.61 5,651,703 1.32 7.33 248.9 77.1
271 - 290 5 18,966,033 1.02 3,793,207 1.34 8.21 119.9 75.8
291 - 310 94 542,974,093 29.17 5,776,320 1.66 7.45 116.9 65.6
311 - 330 3 116,284,819 6.25 38,761,606 1.39 8.42 111.2 62.1
331 - 360 152 936,162,007 50.29 6,158,961 1.48 7.21 117.1 72.3
--- -------------- ------ ----------- ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The Washington Monarch Hotel Loan is an interest only loan that begins to
amortize when its mezzanine loan (not in Trust) is paid off on 05/11/06
- -------------------------------------------------------------------------------
CURRENT MORTGAGE RATES
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
RANGE OF MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
MORTGAGE RATES LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6.0001 - 6.2500% 2 $ 9,514,000 0.51% $ 4,757,000 1.68x 6.17% 202.2 62.7%
6.2501 - 6.5000 2 16,189,014 0.87 8,094,507 1.44 6.40 119.3 74.3
6.5001 - 6.7500 2 51,050,000 2.74 25,525,000 1.53 6.74 120.0 56.0
6.7501 - 7.0000 34 405,382,348 21.78 11,923,010 1.80 6.87 119.2 64.2
7.0001 - 7.2500 89 399,920,819 21.48 4,493,492 1.42 7.12 126.5 72.1
7.2501 - 7.5000 96 490,853,510 26.37 5,113,057 1.39 7.36 123.1 72.7
7.5001 - 7.7500 48 161,061,476 8.65 3,355,447 1.52 7.62 162.9 68.6
7.7501 - 8.0000 26 64,001,571 3.44 2,461,599 1.52 7.86 142.1 70.2
8.0001 - 8.2500 10 56,256,804 3.02 5,625,680 1.30 8.09 124.3 74.5
8.2501 - 8.5000 8 168,362,622 9.04 21,045,328 1.43 8.45 108.5 63.6
8.5001 - 8.7500 2 4,017,112 0.22 2,008,556 1.39 8.57 156.3 73.5
8.7501 - 9.0000 1 3,470,313 0.19 3,470,313 1.23 8.83 164.0 73.1
9.2500 - 9.5000 2 31,438,237 1.69 15,719,119 2.66 9.47 117.0 59.5
--- -------------- ------ ---------- ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
DISTRIBUTION OF AMORTIZATION TYPES
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
AMORTIZATION TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon 248 $1,198,449,586 64.38% $ 4,832,458 1.45x 7.49% 116.7 70.4%
Hyperamortizing 19 509,858,596 27.39 26,834,663 1.73 7.09 116.4 64.5
Fully Amortizing 55 153,209,643 8.23 2,785,630 1.43 7.40 232.2 70.5
- ---------------- -- ----------- ---- --------- ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $ 5,781,111 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OF AMORTIZATION TYPES
LOAN GROUP ONE (a)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
AMORTIZATION TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon 116 $ 583,962,934 48.21% $ 5,034,163 1.49x 7.53% 118.5 68.4%
Hyperamortizing 15 474,124,619 39.14 31,608,308 1.76 7.08 116.3 63.4
Fully Amortizing 55 153,209,643 12.65 2,785,630 1.43 7.40 232.2 70.5
- ---------------- -- ----------- ----- --------- ---- ---- ----- ----
TOTAL 186 $1,211,297,197 100.00% $ 6,512,351 1.59x 7.34% 132.0 66.7%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OF AMORTIZATION TYPES
LOAN GROUP TWO (a)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
AMORTIZATION TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon 133 614,486,652 94.50% $4,620,200 1.42x 7.44% 115.1 72.3%
Hyperamortizing 4 35,733,976 5.50 8,933,494 1.34 7.31 117.9 78.9
--- ------------ ------ --------- ---- ---- ----- ----
TOTAL 137 $650,220,628 100.00% $4,746,136 1.42x 7.43% 115.2 72.7%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
DISTRIBUTION OF REMAINING TERM TO MATURITY (a)
AGGREGATE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
RANGE OF REMAINING NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
TERM TO MATURITY MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
51 - 70 1 $18,780,204 1.01% $18,780,204 1.17x 8.32% 69.0 76.7%
71 - 90 3 16,435,134 0.88 5,478,378 1.27 7.27 79.9 78.5
91 - 110 4 20,645,959 1.11 5,161,490 1.34 7.93 107.5 75.8
111 - 130 249 1,609,291,139 86.45 6,463,017 1.55 7.35 116.2 68.2
131 - 150 2 4,178,056 0.22 2,089,028 1.39 7.18 142.2 70.6
151 - 170 2 6,689,339 0.36 3,344,669 1.21 8.70 165.0 75.2
171 - 190 12 42,648,215 2.29 3,554,018 1.35 7.25 176.1 73.1
191 - 210 1 1,657,162 0.09 1,657,162 1.20 6.97 210.0 78.9
211 - 230 4 7,957,917 0.43 1,989,479 1.21 7.67 223.5 84.2
231 - 250 43 123,927,610 6.66 2,882,037 1.44 7.42 236.7 69.4
251 - 270 1 9,307,092 0.50 9,307,092 1.32 7.26 251.0 78.9
--- -------------- ------ ---------- ---- ---- ----- ----
TOTAL 322 $1,861,517,825 100.00% $5,781,111 1.53x 7.37% 126.1 68.8%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) "Maturity" means the stated maturity date or, with respect to any
Hyper-Amortization Loan, it's Anticipated Repayment Date.
- -------------------------------------------------------------------------------
DISTRIBUTION OF REMAINING TERM TO MATURITY
LOAN GROUP ONE (a)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
RANGE OF REMAINING NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
TERM TO MATURITY MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
51 - 70 1 $ 18,780,204 1.55% $18,780,204 1.17x 8.32% 69.0 76.7%
71 - 90 2 5,755,534 0.48 2,877,767 1.30 7.16 78.0 76.8
91 - 110 3 13,004,278 1.07 4,334,759 1.33 8.16 106.0 77.3
111 - 130 115 977,391,791 80.69 8,499,059 1.64 7.29 116.4 65.4
131 - 150 2 4,178,056 0.34 2,089,028 1.39 7.18 142.2 70.6
151 - 170 2 6,689,339 0.55 3,344,669 1.21 8.70 165.0 75.2
171 - 190 12 42,648,215 3.52 3,554,018 1.35 7.25 176.1 73.1
191 - 210 1 1,657,162 0.14 1,657,162 1.20 6.97 210.0 78.9
211 - 230 4 7,957,917 0.66 1,989,479 1.21 7.67 223.5 84.2
231 - 250 43 123,927,610 10.23 2,882,037 1.44 7.42 236.7 69.4
251 - 270 1 9,307,092 0.77 9,307,092 1.32 7.26 251.0 78.9
--- -------------- ------ --------- ---- ---- ----- ----
TOTAL 186 $1,211,297,197 100.00% $6,512,351 1.59x 7.34% 132.0 66.7%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
DISTRIBUTION OF REMAINING TERM TO MATURITY
LOAN GROUP TWO (a)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE AVERAGE WEIGHTED
AGGREGATE PERCENTAGE CUT-OFF WEIGHTED WEIGHTED REMAINING AVERAGE
RANGE OF REMAINING NUMBER OF CUT-OFF OF CUT-OFF DATE AVERAGE AVERAGE TERM TO CUT-OFF
TERM TO MATURITY MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE MATURITY DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE (MOS) LTV RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
71 - 90 1 $ 10,679,600 1.64% $10,679,600 1.26x 7.33% 81.0 79.4%
91 - 110 1 7,641,681 1.18 7,641,681 1.36 7.54 110.0 73.1
111 - 120 135 631,899,347 97.18 4,680,736 1.42 7.43 115.9 72.6
--- ----------- ------ ----------- ---- ---- ----- ----
TOTAL 137 $650,220,628 100.00% $ 4,746,136 1.42x 7.43% 115.2 72.7%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AMERICOLD POOL LOAN
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
PRINCIPAL BALANCE (1): ORIGINAL CUT-OFF DATE (2)
-------- ----------------
$ 148,500,000 $ 147,597,677
ORIGINATION DATE: April 22, 1998
INTEREST RATE: 6.894% (Act/360)
AMORTIZATION: 25 years
HYPERAMORTIZATION: After the ARD, interest rate increases
by 2.0%. After the ARD, all excess cash
flow is used to reduce outstanding
principal balance; the additional 2%
interest is accrued until principal
balance is zero
ANTICIPATED REPAYMENT DATE ("ARD"): May 11, 2008
MATURITY DATE: May 11, 2023
THE BORROWER/SPONSOR: Americold Real Estate, L.P., a
limited-purpose entity affiliated with
Vornado Realty Trust and Crescent Real
Estate Equities Company
CALL PROTECTION: Two-year prepayment lockout from the
date of securitization with U.S.
Treasury defeasance thereafter until one
payment day prior to the ARD
CUT-OFF DATE
LOAN/SF (3): $41
UP-FRONT RESERVES (3): Deferred Maintenance: $1,948,178
ONGOING RESERVES (3): CapEx: $6,534,841/year
Low Debt Service: cash flow in excess of
debt service is escrowed if the DSCR
falls below 1.25x.
COLLECTION ACCOUNT: Hard Lockbox
CROSS-COLLATERALIZATION/ DEFAULT: Yes
PARTNER LOANS: None
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Portfolio of 29 assets
PROPERTY TYPE: Refrigerated Distribution / Warehouse
PROPERTY LOCATION BY ALLOCATED
LOAN AMOUNT:
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
Oregon Utah
19.13% 5.34%
Washington Illinois
17.23% 4.73%
Pennsylvania Iowa
11.06% 3.68%
Idaho Georgia
10.66% 2.06%
Wisconsin Colorado
9.18% 1.19%
Massachusetts Florida
8.55% 0.55%
California
6.65%
YEARS BUILT: 1946-1996
THE COLLATERAL: 29 cold storage warehouses
SF: 7,183,998
Cubic Feet: 154,673,681
PROPERTY MANAGEMENT: Americold Corporation
(dba Americold Logistics)
1997 NET OPERATING INCOME (3): $57,848,709
UNDERWRITTEN NET CASH FLOW (3): $48,889,853
APPRAISED VALUE: $520,600,000
APPRAISED BY: Landauer Associates
APPRAISAL DATE: March 1, 1998
CUT-OFF DATE LTV (3): 56.7%
DSCR (4): 1.94x
- -------------------------------------------------------------------------------
(1) A single note, representing 50% of the $297,000,000 loan (Note B), is
being contributed to the trust, the other 50% note (Note A) was
securitized in GS Mortgage Securities Corporation II's Commercial
Mortgage Pass-Through Certificates, Series 1998-GL II. Notes A & B are
pari passu.
(2) October 1, 1998 (after giving effect to the payment due October 11,
1998).
(3) Assuming a $295,195,354 Cut-Off Date Loan Amount (combined Notes A & B).
(4) Based on Underwritten Net Cash Flow and the actual loan constant.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AMERICOLD POOL LOAN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPERTY DESCRIPTION
- ----------------------------------------------------------------------------------------------------------------------------
PROPERTY LOCATION PROPERTY TYPE YEAR BUILT/RENOVATED SQUARE FOOTAGE CUBIC FOOTAGE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Ash Street Denver, CO Regional Distribution 1976/1980 114,222 2,750,000
2. Bettendorf Bettendorf, IA Regional Distribution 1973/1977 336,000 8,848,000
3. Boston Boston, MA Regional Distribution 1969 218,316 3,067,994
4. Burley Burley, ID Captive Production 1959/1996 407,217 10,722,101
5. Burlington Burlington, WA Captive Production 1965/1968 194,000 4,656,000
6. Clearfield Clearfield, UT National Distribution 1973/1978 358,400 8,601,600
7. Connell Connell, WA Captive Production 1969/1971 232,500 5,644,800
8. Main Street Gloucester, MA Regional Production 1962/1973 106,219 1,862,768
9. Fogelsville Fogelsville, PA National Distribution 1976/1997 717,077 21,623,549
10. Ft. Dodge Fort Dodge, IA Regional Distribution 1979/1980 155,811 3,067,994
11. Hermiston Hermiston, OR Captive Production 1975 168,000 4,032,000
12. Jesse St. Los Angeles, CA National Distribution 1954/1980 147,600 2,682,400
13. Lois Avenue Tampa, FL Regional Distribution 1953 42,143 344,080
14. Milwaukie Milwaukie, OR Regional Distribution 1958/1988 196,626 4,688,624
15. Moses Lake Moses Lake, WA Captive Production 1967/1979 302,400 7,257,600
16. Nampa Nampa, ID Regional Production 1946/1974 364,000 7,981,000
17. Plant City Plant City, FL Regional Production 1956 806,400 806,400
18. Plover Plover, WI Captive Production 1978/1981 384,400 9,363,200
19. Rail Road Ave. Gloucester, MA Regional Production 1964 13,951 270,480
20. Rochelle Rochelle, IL National Distribution 1995 251,172 6,020,352
21. Rogers St. Gloucester, MA Regional Production 1967 124,242 2,823,256
22. Rowe Square Gloucester, MA Regional Production 1955/1986 157,966 2,387,465
23. Salem Salem, OR Regional Production 1963/1981 498,400 12,487,600
24. Southgate Atlanta, GA National Distribution 1996 135,116 3,726,418
25. Turlock 2 Turlock, CA Regional Production 1985 108,400 3,024,000
26. Walla Walla Walla Walla, WA Regional Production 1960/1968 140,000 3,136,000
27. Wallula Wallula, WA Captive Production 1981 40,000 1,200,000
28. Watsonville Watsonville, CA Captive Production 1985 185,980 2,750,000
29. Woodburn Woodburn, OR Regional Production 1952/1979 277,440 8,848,000
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 7,183,998 154,673,681
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AMERICOLD POOL LOAN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPERTY DESCRIPTION
- ------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE ALLOCATED LOAN WTD. AVG. UNDERWRITTEN
PROPERTY AMOUNT (1) APPRAISED VALUE (2) CUT-OFF DATE LTV (3) NET CASH FLOW DSCR
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Ash Street $ 1,757,790 $ 6,200,000 56.7% $ 462,849 1.54x
2. Bettendorf 4,082,610 14,400,000 56.7 1,088,267 1.56
3. Boston 2,098,008 7,400,000 56.7 606,267 1.69
4. Burley 9,951,361 35,100,000 56.7 4,653,746 2.74
5. Burlington 4,479,530 15,800,000 56.7 1,783,553 2.34
6. Clearfield 7,881,705 27,800,000 56.7 3,016,924 2.24
7. Connell 6,492,483 22,900,000 56.7 2,368,940 2.14
8. Main Street 2,353,171 8,300,000 56.7 714,605 1.78
9. Fogelsville 16,330,438 57,600,000 56.7 2,139,954 0.77
10. Ft. Dodge 1,346,694 4,750,000 56.7 346,861 1.51
11. Hermiston 6,662,592 23,500,000 56.7 2,739,870 2.41
12. Jesse St. 2,069,656 7,300,000 56.7 685,951 1.94
13. Lois Avenue 127,582 450,000 56.7 67,936 3.12
14. Milwaukie 5,358,425 18,900,000 56.7 2,131,188 2.33
15. Moses Lake 9,696,198 34,200,000 56.7 3,561,526 2.15
16. Nampa 5,783,697 20,400,000 56.7 680,270 0.69
17. Plant City 680,435 2,400,000 56.7 186,202 1.60
18. Plover 13,551,996 47,800,000 56.7 5,024,753 2.17
19. Rail Road Ave. 652,083 2,300,000 56.7 164,781 1.48
20. Rochelle 6,974,458 24,600,000 56.7 2,872,681 2.42
21. Rogers St. 3,458,878 12,200,000 56.7 1,064,918 1.81
22. Rowe Square 4,054,258 14,300,000 56.7 1,321,472 1.91
23. Salem 9,242,575 32,600,000 56.7 3,364,696 2.14
24. Southgate 3,033,606 10,700,000 56.7 352,282 0.68
25. Turlock 2 2,579,982 9,100,000 56.7 942,005 2.14
26. Walla Walla 2,835,146 10,000,000 56.7 973,992 2.01
27. Wallula 1,927,899 6,800,000 56.7 833,766 2.54
28. Watsonville 5,159,965 18,200,000 56.7 2,001,777 2.28
29. Woodburn 6,974,458 24,600,000 56.7 2,737,821 2.30
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED
AVERAGE $147,597,677 $520,600,000 56.7% $48,889,853 1.94x
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Represents Cut-Off Date Allocated Loan Amount for Note B only.
(2) March 1, 1998 appraisal date.
(3) Assuming a $295,195,354 Cut-Off Date Loan Amount (combined Notes A & B).
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AMERICOLD POOL LOAN
- -------------------------------------------------------------------------------
LOCATION MAP
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF THE UNITED STATES OF AMERICA]
WA WI
5 1
OR IL
4 1
CA MA
3 5
ID PA
2 1
UT GA
1 1
CO FL
1 2
IA
2
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AIMCO POOL LOAN
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
PRINCIPAL BALANCE: ORIGINAL CUT-OFF DATE (1)
-------- -----------------
$110,000,000 $109,149,602
ORIGINATION DATE: December 29, 1997 (Amendment Date)
INTEREST RATE: 8.50% (Act / 360)
TERM / AMORTIZATION: 120 Months / 320 months
HYPERAMORTIZATION: None
ANTICIPATED REPAYMENT DATE
("ARD"): NA
MATURITY DATE: January 1, 2008
THE BORROWER / VMS National Properties, an Illinois
SPONSOR: general partnership formed for the
purpose of owning, operating,
maintaining and managing the Properties.
The Borrower is ultimately owned by
Apartment Investment and Management Co.
CALL PROTECTION: Nine-year prepayment lockout from the
date of origination; freely prepayable
thereafter
CUT-OFF DATE LOAN / UNIT: $36,862 / unit
RESERVES: Upfront Cap Ex Reserve: $2,046,765
Ongoing Cap Ex Reserve: Monthly, in an
amount equivalent to 1/12th of $300 /
unit
COLLECTION ACCOUNT: None
CROSS-COLLATERALIZATION /
CROSS-DEFAULT: No / No
MEZZANINE DEBT: $30,678,690 (as of the Cut-Off Date)
second mortgage financing, payable from
free cash flow only
PHANTOM DEBT: $42,224,512 (as of the Cut-Off Date)
arising from debt forgiven pursuant to a
previously approved bankruptcy
reorganization plan. Assuming the Senior
Debt and the Mezzanine Debt are repaid
as agreed at maturity, Phantom Debt will
be extinguished. Phantom Debt becomes
due and payable after an event of
default
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET / PORTFOLIO: Portfolio of 15 assets
PROPERTY TYPE: Multi-Family
PROPERTY LOCATION BY
ALLOCATED LOAN AMOUNT:
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
California Oregon
59.34% 3.43%
Maryland Texas
11.17% 3.06%
Indiana Arkansas
8.72% 2.67%
Nebraska Louisiana
4.09% 2.08%
Arizona
5.44%
YEARS BUILT: 1967 - 1978
THE COLLATERAL: 15 multifamily properties located in
California, Arizona, Oregon, Texas,
Indiana, Arkansas, Louisiana, Nebraska
and Maryland
Units: 2,961
PROPERTY MANAGEMENT: A successor to Insignia Residential
Group, L.P.
UNDERWRITTEN NET CASH FLOW: $14,695,605
APPRAISED VALUE: $178,375,000
APPRAISED BY: Crosson Dannis, Inc.
APPRAISAL DATES: August 27, 1998 - September 2, 1998
SENIOR CUT-OFF DATE LTV (2): 61.2%
COMBINED
CUT-OFF DATE LTV (2): 78.4%
SENIOR DSCR (3)(4): 1.39x
- -------------------------------------------------------------------------------
(1) October 11, 1998 (after giving effect to the payment due October 11,
1998).
(2) Calculated using Senior Principal Balance as of the Cut-Off Date and
Appraised Value
(3) Calculated using Senior Principal Balance and Mezzanine Principal Balance
as of the Cut-Off Date and Appraised Value
(4) Calculated using Underwritten Net Cash Flow and the actual senior loan
constant.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AIMCO MULTIFAMILY POOL LOAN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPERTY DESCRIPTION
- ------------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE
YEAR BUILT/ ALLOCATED APPRAISED CUT-OFF UNDERWRITTEN
PROPERTY LOCATION RENOVATED LOAN AMOUNT VALUE (1) DATE LTV NET CASH FLOW DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Scotchollow Apts. San Mateo, CA 1971 $ 29,312,804 $ 55,500,000 52.8% $ 4,353,732 1.54x
Pathfinder Apts. Fremont, CA 1971 13,543,952 26,000,000 52.1 1,761,592 1.35
Towers of Westchester College Park, MD 1968 12,191,075 17,000,000 71.7 1,575,196 1.34
Mountain View Apts. San Dimas, CA 1978 7,200,564 10,650,000 67.6 968,936 1.39
North Park Apts. Evansville, IN 1970/74 6,290,057 8,400,000 74.9 816,008 1.34
Forest Ridge Apts. Flagstaff, AZ 1968/75 5,935,726 8,600,000 69.0 757,292 1.32
Crosswood Park Apts. Citrus Heights, CA 1977 5,601,533 10,000,000 56.0 864,990 1.60
Buena Vista Apts. Pasadena, CA 1973 4,983,690 8,500,000 58.6 696,815 1.45
Terrace Garden Townhomes Omaha, NE 1971 4,466,847 6,250,000 71.5 598,065 1.38
Casa De Monterey Norwalk, CA 1970 4,126,447 5,700,000 72.4 440,107 1.10
The Bluffs Apts. Milwaukie, OR 1967/71 3,746,170 5,925,000 63.2 523,941 1.45
Vista Village Apts. El Paso, TX 1971 3,341,728 3,650,000 91.6 236,604 0.73
Chapelle La Grande Merrillville, IN 1973 3,228,160 4,350,000 74.2 380,549 1.22
Watergate Apts. Little Rock, AR 1973 2,915,638 4,500,000 64.8 368,468 1.31
Shadow-Wood Apts. Monroe, LA 1974 2,265,209 3,350,000 67.6 353,310 1.61
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL/ WTD. AVG. 1967-1978 $109,149,602 $178,375,000 61.2% $14,695,605 1.39x
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) August - September 1998 Appraisal Date
<TABLE>
<CAPTION>
PROPERTY DESCRIPTION
- ------------------------------------------------------------------------------------------------------------------------------------
9/15/1998 NUMBER AVG. RENTAL RATE / % ONE % TWO % THREE
PROPERTY OCCUPANCY OF UNITS UNIT % STUDIOS BEDROOM BEDROOM BEDROOM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Scotchollow Apts. 97.0% 418 $1,336 - 69.4% 30.4% .2%
Pathfinder Apts. 97.0 246 1,221 - - 57.7 42.3
Towers of Westchester Apts. 98.0 303 960 10% 40.9 34.2 15.0
Mountain View Apts. 99.0 168 913 - - 73.8 26.2
North Park Apts. 99.0 284 521 - 47.9 52.1 -
Forest Ridge Apts. 91.0 278 636 31.7 28.8 34.5 5.1
Crosswood Park Apts. 94.0 180 796 - 36.7 51.7 11.7
Buena Vista Apts. 99.0 92 1,090 - 55.4 38.0 6.5
Terrace Garden Townhomes 95.0 126 773 - - 50.0 50.0
Casa De Monterey Apts. 96.0 144 681 - 77.8 22.2 -
The Bluffs Apts. 97.0 137 586 13.9 46.7 35.0 4.4
Vista Village Apts. 96.0 220 549 4.5 34.1 61.4 -
Chapelle La Grande Apts. 92.0 105 721 - 32.4 56.2 11.4
Watergate Apts. 88.0 140 610 - 20.0 50.0 30.0
Shadow-Wood Apts. 97.0 120 543 - 53.3 43.3 3.3
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL / WTD. AVG. 96.0% 2,961 $ 797 5.0% 38.9% 44.8% 12.2%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
AIMCO MULTIFAMILY POOL LOAN
- -------------------------------------------------------------------------------
LOCATION MAP
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF THE UNITED STATES OF AMERICA]
OR AR
1 1
CA LA
6 1
AZ IN
1 2
NE MD
1 1
TX
1
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
All information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
ENTERTAINMENT PROPERTIES TRUST POOL LOAN
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
PRINCIPAL BALANCE: ORIGINAL CUT-OFF DATE (1)
-------- ----------------
$105,000,000 $104,748,392
ORIGINATION DATE: June 29, 1998
INTEREST RATE: 6.772% (Act/360)
AMORTIZATION: 30 years
HYPERAMORTIZATION: After the ARD, the interest rate
increases by 2.0%. After the ARD, all
excess cash flow is used to reduce
outstanding principal balance; the
additional 2% interest is accrued until
principal balance is zero
ANTICIPATED REPAYMENT DATE
("ARD"): July 11, 2008
MATURITY DATE: July 11, 2028
THE BORROWER/SPONSOR: EPT DownREIT II Inc., a bankruptcy
remote, special-purpose Missouri
corporation wholly-owned by
Entertainment Properties Trust (NYSE:
EPR)
CALL PROTECTION: Two-year prepayment lockout from the
date of securitization with U.S.
Treasury defeasance thereafter until the
ARD
CUT-OFF DATE LOAN/NRSF: $125
RESERVES: Cap Ex Reserve: Monthly, in an amount
equivalent to 1/12th of the product of
$0.10/SF and 834,720 USF
LowDebt Service Reserve: Cash flow in
excess of debt service is escrowed if
annual net operating income falls
below 85% of NOI at closing of the
loan and applied to the loan as
determined by Lender if annual net
operating income falls below 75% of
NOI at closing of the loan.
Master Lease Rollover Reserve: Upon
assignment by Net Lease Lessee of more
than two (2) master leases (subject to
Lender approval and rating agency
affirmation), Borrower shall deposit
an amount equal to the product of
$5.00 as escalated by increases in the
CPI and the usable square footage of
each property subject to an assigned
master lease
COLLECTION ACCOUNT: Hard lockbox
CROSS-COLLATERALIZATION /
CROSS-DEFAULT: Yes
PARTNER LOANS: None
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Portfolio of eight assets
PROPERTY TYPE: Megaplex Movie Theatre Complexes
PROPERTY LOCATION BY
ALLOCATED LOAN AMOUNT:
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
California Missouri
43.93% 10.97%
Texas Ohio
37.44% 7.67%
YEARS BUILT: 1995 - 1997
THE COLLATERAL: Eight net-leased megaplex movie theatre
complexes located in California, Texas,
Missouri and Ohio
Screens: 184
Seats: 35,445
NRSF: 834,720
NET LEASE LESSEE: American Multi-Cinema, Inc., an
affiliate of AMC Entertainment Inc.
(NYSE: AEN)
UNDERWRITTEN NET
OPERATING INCOME: $17,083,500
UNDERWRITTEN
NET CASH FLOW: $17,000,030
APPRAISED VALUE: $169,900,000
APPRAISED BY: Cushman & Wakefield
APPRAISAL DATE: May & June 1998
CUT-OFF DATE LTV: 61.7%
UWNCF DSCR (2): 2.06x
- -------------------------------------------------------------------------------
(1) October 1, 1998 (after giving effect to the payment due October 11, 1998).
(2) Calculated using Underwritten Net Cash Flow and the actual loan constant.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
All information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
ENTERTAINMENT PROPERTIES TRUST POOL LOAN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPERTY DESCRIPTION
- -----------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE WTD. AVG. UNDERWRITTEN
NUMBER OF NUMBER OF ALLOCATED LOAN APPRAISED CUT-OFF NET CASH
THEATRE COMPLEX LOCATION BUILT SCREENS SEATS AMOUNT VALUE (1) DATE LTV FLOW DSCR
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AMC Promenade 16 Woodhills, CA 1996 16 2,860 $19,146,227 $31,000,000 61.8% $2,979,518 1.97x
AMC Ontario Mills 30 Ontario, CA 1996 30 5,496 16,984,557 27,500,000 61.8 2,643,347 1.97
AMC Studio 30 Houston, TX 1997 30 6,032 16,058,126 26,000,000 61.8 2,758,385 2.18
AMC Grand 24 Dallas, TX 1995 24 5,067 12,414,167 20,100,000 61.8 1,943,183 1.98
AMC West Olive 16 Creve Coeur, MO 1997 16 2,817 11,487,736 18,600,000 61.8 1,862,958 2.05
AMC Huebner Oaks 24 San Antonio, TX 1997 24 4,400 10,746,592 17,400,000 61.8 1,764,900 2.08
AMC Mission Valley 20 San Diego, CA 1995 20 4,361 9,881,923 16,300,000 60.6 1,703,065 2.18
AMC Lennox 24 Columbus, OH 1996 24 4,412 8,029,086 13,000,000 61.8 1,344,674 2.12
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 184 35,445 $104,748,392 $169,900,000 61.7% $17,000,030 2.06x
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CUT-OFF DATE WTD. AVG. UNDERWRITTEN
NUMBER OF NUMBER OF ALLOCATED LOAN APPRAISED CUT-OFF NET CASH
STATE BUILT SCREENS SEATS AMOUNT VALUE (1) DATE LTV FLOW DSCR
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California 1995-1996 66 12,717 $ 46,012,707 $74,800,000 61.5% $7,325,930 2.01x
Texas 1995-1997 78 15,499 39,218,885 63,500,000 61.8 6,466,468 2.08
Missouri 1997 16 2,817 11,487,736 18,600,000 61.8 1,862,958 2.06
Ohio 1996 24 4,412 8,029,063 13,000,000 61.8 1,344,674 2.13
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 184 35,445 $104,748,392 $169,900,000 61.7% $17,000,030 2.06x
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) May and June 1998 Appraisal Date.
LOCATION MAP
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF THE UNITED STATES OF AMERICA]
AMC Promenade 16
AMC Ontario Mills 30
AMC Mission Valley 20
AMC Huebner Oaks 24
AMC Studio 30
AMC Grand 24
AMC Lennox 24
AMC West Olive 16
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
COLLATERAL TERM SHEET
SKYLINE CITY POOL LOAN
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
PRINCIPAL BALANCE ORIGINAL CUT-OFF DATE (1)
-------- ----------------
$87,700,000 $87,423,946
ORIGINATION DATE: May 14, 1998
INTEREST RATE: 7.049% (Act/360)
AMORTIZATION: 30 years
HYPERAMORTIZATION: After the ARD, the interest rate
increases by 2.0%. After the ARD, all
excess cash flow is used to reduce
outstanding principal balance; the
additional 2% interest is accrued until
principal balance is zero
ANTICIPATED REPAYMENT DATE
("ARD"): August 11, 2008
MATURITY DATE: June 11, 2028
THE BORROWERS: Ninth Skyline Associates Limited
Partnership and Fifteenth Skyline
Associates Limited Partnership, whose
general partners are bankruptcy remote,
special-purpose limited liability
companies
CALL PROTECTION: Two-year prepayment lockout from the
date of securitization with U.S.
Treasury defeasance thereafter until one
payment date prior to the ARD
CUT-OFF DATE LOAN / SF: $120
RESERVES: TI/Leasing Commissions: Monthly,
according to a schedule outlined in
the Loan Agreement, averaging $57,564
per month throughout initial term
(prior to ARD)
Cap Ex: Monthly, in an amount equivalent
to 1/12th of the product of $0.20/SF
and 728,668 RSF
Debt Service: Monthly, in an amount
sufficient to cover monthly debt
service payment amount, $592,148
Low Debt Service: Cash flow in excess of
debt service is escrowed if annual net
operating income falls below
$8,400,000
COLLECTION ACCOUNT: Soft lockbox, springing to hard lockbox
if (i) net operating income falls below
$7,400,000, (ii) after ARD or (iii)
after an event of default
CROSS-COLLATERALIZATION /
CROSS-DEFAULT: Yes
PARTNER LOANS: None
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Portfolio of two assets
PROPERTY TYPE: Office
LOCATION: Fairfax County, Virginia
YEARS BUILT: 1980 and 1987
OCCUPANCY: 95.8% (as of 8/1/98)
THE COLLATERAL (3): One Class A and one Class B office
buildings, comprising approximately
728,668 SF, located in the Skyline City
master planned office park in Fairfax
County, Northern Virginia
Office: 724,614 NRSF
Storage: 4,054 NRSF
Total Space: 728,668 NRSF
Garage Space: 1,997 spaces
MAJOR TENANTS NRSF EXPIRATION
------------- ---- ----------
U.S. Government 427,615 SF '99,'02,'09
Science Applications 87,837 SF 8/03
Birch and Davis 30,886 SF 1/00
Booz, Allen & Hamilton 19,683 SF 3/02
PROPERTY MANAGEMENT: Charles E. Smith Real Estate
Services, L.P.
UNDERWRITTEN
NET OPERATING INCOME: $10,860,380
UNDERWRITTEN NET CASH FLOW: $9,951,015
APPRAISED VALUE: $122,600,000
APPRAISED BY: Cushman & Wakefield
APPRAISAL DATE: April 1998
CUT-OFF DATE LTV: 71.3%
DSCR (2): 1.40x
- -------------------------------------------------------------------------------
(1) October 11, 1998.
(2) Based on Underwritten Net Cash Flow and actual loan constant.
(3) While the Properties are currently owned by limited partnerships not
directly affiliated with The Charles E. Smith companies, Charles E. Smith
Commercial Realty L.P. has made an offer, by way of a private placement
memorandum, to purchase the Properties in exchange for Operating
Partnership units. The acquisition is expected to take place October 31,
1998.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
ALL INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
<TABLE>
<CAPTION>
LEASE EXPIRATION SCHEDULE
- ------------------------------------------------------------------------------------------------------------------
YEAR ENDING DEC. 31 EXPIRING SF % OF TOTAL SF ANNUALIZED TENANT BASE RENT % OF TOTAL BASE RENT (1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1998 30,674 4.2% $690,579 4.4%
1999 119,948 16.5 2,582,369 16.7
2000 56,906 7.8 1,188,829 7.7
2001 24,894 3.4 585,039 3.8
2002 91,586 12.6 1,736,695 11.2
2003 97,120 13.3 2,248,515 14.5
2004 - - - -
2005 - - - -
2006 - - - -
2007 - - - -
Thereafter 283,073 38.8 6,468,649 41.7
Vacant 24,467 3.4 - -
- ------------------------------------------------------------------------------------------------------------------
TOTAL 728,668 100.0% $15,500,675 100.0%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total Base Rent does not include income from rooftop antennae leases
totaling $408,932 per year
LOCATION MAP
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP SHOWING DIRECTONS TO ONE SKYLINE TOWER AND THREE SKYLINE PLACE]
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Goldman, Sachs & Co. and not by the issuer
of the securities. Goldman, Sachs & Co. is acting as the sole lead underwriter
and not acting as agent for the issuer or its affiliates in connection with the
proposed transaction. The issuer has not prepared or taken part in the
preparation of these materials.
<PAGE>
PROSPECTUS
GS MORTGAGE SECURITIES CORPORATION II
SELLER
COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES (ISSUABLE IN SERIES)
GS Mortgage Securities Corporation II (the "Seller") from time to time
will offer Commercial Mortgage Pass-Through Certificates (the "Offered
Certificates") in series (each, a "Series") by means of this Prospectus and a
separate Prospectus Supplement for each Series. If specified in the related
Prospectus Supplement, a Series may include one or more Classes of certificates
(together with the Offered Certificates, the "Certificates") not offered by
means of this Prospectus. The Certificates of each Series will evidence
beneficial ownership interests in a trust fund (each, a "Trust Fund") to be
established by the Seller. The Certificates of a Series may be divided into two
or more Classes which may have different interest rates and which may receive
principal payments in differing proportions and at different times. In
addition, rights of the holders of certain Classes to receive principal and
interest may be subordinated to those of other Classes.
Each Trust Fund will consist primarily of a pool (each, a "Mortgage Pool")
of (i) one or more mortgage loans secured by first, second or more junior liens
on commercial real estate properties, multifamily residential properties and/or
mixed residential/commercial properties, and related property and interests, or
(ii) certain financial leases and similar arrangements equivalent to such
mortgage loans as described herein and in the related Prospectus Supplement
(the "Mortgage Loans"), conveyed to such Trust Fund by the Seller, and other
assets, including any reserve funds established with respect to a Series,
insurance policies on the Mortgage Loans, letters of credit, certificate
guarantee insurance policies or other credit enhancements described in the
related Prospectus Supplement. If so specified in the related Prospectus
Supplement, the Mortgage Loans included in a Mortgage Pool may also include
participation interests in such types of mortgage loans and installment
contracts for the sale of such types of properties. The Mortgage Loans will
have fixed or adjustable interest rates. Some Mortgage Loans will fully
amortize over their remaining terms to maturity and others will provide for
balloon payments at maturity. Unless otherwise specified in the related
Prospectus Supplement, the Mortgage Loans will be non-recourse obligations of
the mortgagors. The Mortgage Loans will be either seasoned or newly originated
Mortgage Loans acquired by the Seller from third parties, which third parties
may or may not be the originators of such Mortgage Loans and may or may not be
affiliates of the Seller. Information regarding each Series of Certificates,
including interest and principal payment provisions for each Class of Offered
Certificates, as well as information regarding the size, composition and other
characteristics of the Mortgage Pool relating to such Series, will be furnished
in the related Prospectus Supplement. The Mortgage Loans, other than, if so
specified in the related Prospectus Supplement, Specially Serviced Mortgage
Loans, will be serviced by a Master Servicer identified in the related
Prospectus Supplement. If so specified in the related Prospectus Supplement,
Mortgage Loans that become Specially Serviced Mortgage Loans (as described in
such Prospectus Supplement) will be serviced by a Special Servicer identified
therein.
The Certificates will not represent an obligation of or an interest in the
Seller or any affiliate thereof. Unless otherwise specified in the related
Prospectus Supplement, the Certificates will not be insured or guaranteed by
any governmental agency or instrumentality. Unless otherwise specified in the
related Prospectus Supplement, the Mortgage Loans will not be insured or
guaranteed by any governmental agency or instrumentality or any insurer.
The Seller, as specified in the related Prospectus Supplement, may elect
to treat all or a specified portion of the related Trust Fund as one or more
"real estate mortgage investment conduits" (each a "REMIC"), for federal income
tax purposes. If such an election is made, each Class of Certificates of a
Series will be either "regular interests" or "residual interests", as specified
in the related Prospectus Supplement. If no such election is made, the Trust
Fund, as specified in the related Prospectus Supplement, may elect to be
treated as a "financial asset securitization investment trust" ("FASIT"), or if
no such election is made, will be classified as a grantor trust for federal
income tax purposes. See "FEDERAL INCOME TAX CONSEQUENCES."
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
THE OFFERED CERTIFICATES ARE NOT SUITABLE INVESTMENTS FOR ALL INVESTORS. IN
PARTICULAR, NO INVESTOR SHOULD PURCHASE CERTIFICATES OF ANY CLASS UNLESS THE
INVESTOR UNDERSTANDS AND IS ABLE TO BEAR THE PREPAYMENT, YIELD, LIQUIDITY AND
MARKET RISKS ASSOCIATED WITH THAT CLASS.
THE RISKS ASSOCIATED WITH THE OFFERED CERTIFICATES MAY MAKE THEM
UNSUITABLE FOR SOME INVESTORS. SEE "RISK FACTORS" ON PAGE 4 HEREIN. THE OFFERED
CERTIFICATES ARE COMPLEX SECURITIES AND IT IS IMPORTANT THAT EACH INVESTOR IN
ANY CLASS OF OFFERED CERTIFICATES POSSESS, EITHER ALONE OR TOGETHER WITH AN
INVESTMENT ADVISOR, THE EXPERTISE NECESSARY TO EVALUATE THE INFORMATION
CONTAINED AND INCORPORATED IN THIS PROSPECTUS AND THE RELATED PROSPECTUS
SUPPLEMENT IN THE CONTEXT OF THAT INVESTOR'S FINANCIAL SITUATION.
<PAGE>
THE YIELD OF EACH CLASS OF OFFERED CERTIFICATES WILL DEPEND UPON, AMONG
OTHER THINGS, ITS PURCHASE PRICE, ITS SENSITIVITY TO THE RATE AND TIMING OF
PRINCIPAL PAYMENTS (INCLUDING PREPAYMENTS, DEFAULTS AND LIQUIDATIONS) ON THE
MORTGAGE LOANS AND THE ACTUAL CHARACTERISTICS OF THE MORTGAGE LOANS. MORTGAGE
LOAN PREPAYMENT RATES ARE LIKELY TO FLUCTUATE SIGNIFICANTLY FROM TIME TO TIME.
INVESTORS SHOULD CONSIDER THE ASSOCIATED RISKS, INCLUDING:
o FAST MORTGAGE LOAN PREPAYMENT RATES CAN REDUCE THE YIELDS OF THE
OFFERED CERTIFICATES, INCLUDING ANY INTEREST-ONLY CLASSES,
PURCHASED AT A PREMIUM OVER THEIR PRINCIPAL AMOUNTS.
o SLOW MORTGAGE LOAN PREPAYMENT RATES CAN REDUCE THE YIELDS OF THE
OFFERED CERTIFICATES, INCLUDING ANY PRINCIPAL-ONLY CLASSES,
PURCHASED AT A DISCOUNT TO THEIR PRINCIPAL AMOUNTS.
o SMALL DIFFERENCES IN THE ACTUAL CHARACTERISTICS OF THE MORTGAGE LOANS
CAN AFFECT THE WEIGHTED AVERAGE LIVES AND YIELDS OF THE OFFERED
CERTIFICATES.
SEE "RISK FACTORS" AND "YIELD CONSIDERATIONS" IN THIS PROSPECTUS AND "RISK
FACTORS" AND "YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS" IN THE RELATED
PROSPECTUS SUPPLEMENT.
--------------
Offers of the Offered Certificates may be made through one or more
different methods, including offerings through underwriters, as more fully
described under "PLAN OF DISTRIBUTION" herein and in the related Prospectus
Supplement. Affiliates of the Seller may from time to time act as agents or
underwriters in connection with the sale of the Offered Certificates. Offerings
of certain Classes of the Certificates, as specified in the related Prospectus
Supplement, may be made in one or more transactions exempt from the
registration requirements of the Securities Act of 1933, as amended. Such
offerings are not being made pursuant to the Registration Statement of which
this Prospectus forms a part.
There will have been no secondary market for any Series of the Offered
Certificates prior to the offering thereof. There can be no assurance that such
a market will develop for the Offered Certificates of any Series or, if it does
develop, that it will continue.
This Prospectus may not be used to consummate sales of the Offered
Certificates unless accompanied by a Prospectus Supplement.
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The date of this Prospectus is October 14, 1998
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PROSPECTUS SUPPLEMENT
The Prospectus Supplement relating to each Series of Offered Certificates
will, among other things, set forth with respect to such Series of Offered
Certificates, to the extent applicable thereto: (i) any structural features,
such as multiple levels of trusts or the use of special finance vehicles to
hold the Mortgage Pool, used in structuring the transaction; (ii) the identity
of each Class within such Series; (iii) the initial aggregate principal amount,
the interest rate (the "Pass-Through Rate") (or the method for determining such
rate) and the authorized denominations of each Class of Offered Certificates of
such Series; (iv) certain information concerning the Mortgage Loans relating to
such Series, including the principal amount, type and characteristics of such
Mortgage Loans on the Cut-Off Date for such Series of Offered Certificates,
and, if applicable, the amount of any Reserve Fund for such Series; (v) the
identity of the Master Servicer; (vi) the identity of the Special Servicer, if
any, and the characteristics of any Specially Serviced Mortgage Loans; (vii)
the method of selection and powers of any Operating Advisor directing and
approving actions of the Special Servicer; (viii) the circumstances, if any,
under which the Offered Certificates of such Series are subject to redemption
prior to maturity; (ix) the final scheduled distribution date of each Class of
Offered Certificates of such Series; (x) the method used to calculate the
aggregate amount of principal available and required to be applied to the
Offered Certificates of such Series on each Distribution Date; (xi) the order
of the application of principal and interest payments to each Class of Offered
Certificates of such Series and the allocation of principal to be so applied;
(xii) the extent of subordination of any Subordinate Certificates; (xiii) the
principal amount of each Class of Offered Certificates of such Series that
would be outstanding on specified Distribution Dates, if the Mortgage Loans
relating to such Series were prepaid at various assumed rates; (xiv) the
Distribution Dates for each Class of Offered Certificates of such Series; (xv)
the representations and warranties to be made by the Seller and any other
entity, in respect of the Mortgage Loans; (xvi) if applicable, relevant
financial information with respect to the Borrower(s) and the Mortgaged
Properties underlying the Mortgage Loans relating to such Series; (xvii)
information with respect to the terms of the Subordinate Certificates or
Residual Certificates, if any, of such Series, (xviii) additional information
with respect to any Credit Enhancement or cash flow agreement relating to such
Series and, if the Certificateholders of such Series will be materially
dependent upon any provider of Credit Enhancement or any cash flow agreement
counterparty for timely payment of interest and/or principal on their
Certificates, information (including financial statements) regarding such
provider or counterparty; (xix) additional information with respect to the plan
of distribution of such Series; (xx) whether the Offered Certificates of such
Series will be available in definitive form or through the book-entry
facilities of The Depository Trust Company or another depository; (xxi) if a
Trust Fund contains a concentration of Mortgage Loans having a single Borrower,
including affiliates thereof, or Mortgage Loans secured by Mortgaged Properties
leased to a single lessee, including affiliates thereof, representing 20% or
more of the aggregate principal balance of the Mortgage Loans in such Trust
Fund, financial statements for such Mortgaged Properties as well as specific
information with respect to such Mortgage Loans, Mortgaged Properties and, to
the extent material, leases and additional information concerning any common
ownership, common management or common control of, or cross-default,
cross-collateralization or similar provisions relating to, such Mortgaged
Properties and the concentration of credit risk thereon; (xxii) if a Trust Fund
contains a concentration of Mortgage Loans having a single Borrower, including
affiliates thereof, or Mortgage Loans secured by Mortgaged Properties leased to
a single lessee, including affiliates thereof, representing 10% or more, but
less than 20%, of the aggregate principal balance of the Mortgage Loans in such
Trust Fund, selected financial information with respect to such Mortgaged
Properties as well as, to the extent material, specific information with
respect to any common ownership, common management or common control of, or
cross-default, cross-collateralization or similar provisions relating to, such
Mortgaged Properties and the concentration of credit risk thereon; (xxiii) if
applicable, additional information concerning any known concerns regarding
unique economic or other factors where there is a material concentration of any
of the Mortgage Loans in a specific geographic region; (xxiv) if applicable,
additional financial and other information concerning individual Mortgaged
Properties when there is a substantial concentration of one or a few Mortgage
Loans in a jurisdiction or region thereof experiencing economic difficulties
which may have a material effect on such Mortgaged Properties; (xxv) if a Trust
Fund contains a substantial concentration of one or a few
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Mortgage Loans in a single jurisdiction, a description of material differences,
if any, between the legal aspects of Mortgage Loans in such jurisdiction and
the summary of general legal aspects of Mortgage Loans set forth under "CERTAIN
LEGAL ASPECTS OF THE MORTGAGE LOANS;" and (xxvi) the rating assigned to each
Class of Offered Certificates by the nationally recognized statistical rating
organization or organizations identified therein.
ADDITIONAL INFORMATION
This Prospectus contains, and the Prospectus Supplement for each Series of
Offered Certificates will contain, a summary of the material terms of the
documents referred to herein and therein, but neither contains nor will contain
all of the information set forth in the Registration Statement (the
"Registration Statement") of which this Prospectus and the related Prospectus
Supplement is a part. For further information, reference is made to such
Registration Statement and the exhibits thereto which the Seller has filed with
the Securities and Exchange Commission (the "Commission"), under the Securities
Act of 1933, as amended (the "Act"). Statements contained in this Prospectus
and any Prospectus Supplement as to the contents of any contract or other
document referred to are summaries and in each instance reference is made to
the copy of the contract or other document filed as an exhibit to the
Registration Statement. Copies of the Registration Statement may be obtained
from the Commission, upon payment of the prescribed charges, or may be examined
free of charge at the Commission's offices. Reports and other information filed
with the Commission can be inspected and copied at the public reference
facilities maintained by the Commission at 450 Fifth Street, N.W., Washington,
D.C. 20549, and at the Regional Offices of the Commission at Seven World Trade
Center, 13th Floor, New York, New York 10048; and Citicorp Center, 500 West
Madison Street, Suite 1400, Chicago, Illinois 60661. Copies of such material
can be obtained from the Public Reference Section of the Commission at 450
Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates. The Commission
also maintains a site on the World Wide Web (the "Web") at "http://www.sec.gov"
at which users can view and download copies of reports, proxy and information
statements and other information filed electronically through the Electronic
Data Gathering, Analysis and Retrieval ("EDGAR") system. Copies of the
Agreement pursuant to which a Series of Certificates is issued will be provided
to each person to whom a Prospectus and the related Prospectus Supplement are
delivered, upon written or oral request directed to the Seller at 85 Broad
Street, SC Level, New York, New York 10004 (phone: 212/902-1171), Attention:
Prospectus Department.
The Master Servicer or the Trustee will be required to mail to Holders of
Offered Certificates of each Series periodic unaudited reports concerning the
related Trust Fund. Unless and until definitive Certificates are issued, such
reports may be sent on behalf of the related Trust Fund to Cede & Co., as
nominee of The Depository Trust Company ("DTC") and registered Holder of the
Offered Certificates, pursuant to the applicable Agreement. If so specified in
the related Prospectus Supplement, such reports may be sent to beneficial
owners identified to the Master Servicer or Trustee. Such reports may also be
available to holders of interests in the Certificates upon request to their
respective DTC participants. See "DESCRIPTION OF THE CERTIFICATES -- Reports to
Certificateholders." The Seller will file or cause to be filed with the
Commission such periodic reports with respect to each Trust Fund as are
required under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and the rules and regulations of the Commission thereunder. Reports
filed by the Seller with the Commission pursuant to the Exchange Act will be
filed by means of the EDGAR system and therefor should be available at the
Commission's site on the Web.
INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE
All documents filed by the Seller pursuant to Sections 13(a), 13(c), 14 or
15(d) of the Exchange Act subsequent to the date of this Prospectus and prior
to the termination of the offering of the Offered Certificates of a Series
shall be deemed to be incorporated by reference into this Prospectus and to be
a part hereof from the date of filing of such documents. Any statement
contained in a document incorporated or deemed to be incorporated by reference
herein shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in any
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other subsequently filed document which is or is deemed to be incorporated by
reference herein modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus.
The Seller will provide without charge to each person to whom a copy of
this Prospectus is delivered, upon the written or oral request of such person,
a copy of any and all of the documents incorporated herein by reference (not
including the exhibits to such documents, unless such exhibits are specifically
incorporated by reference in such documents). Requests for such copies should
be directed to the office of the Secretary, 85 Broad Street, New York, New York
10004 (phone: 212/902-1000).
RISK FACTORS
COMMERCIAL AND MULTIFAMILY LENDING GENERALLY.
Commercial and multifamily lending generally is viewed as exposing the
lender to a greater risk of loss than one- to four-family residential lending.
Commercial and multifamily lending typically involves larger loans to single
borrowers or groups of related borrowers than residential one- to- four-family
mortgage loans. Further, the repayment of loans secured by income producing
properties is typically dependent upon the successful operation of the related
real estate project. If the cash flow from the project is reduced (for example,
if leases are not obtained or renewed), the borrower's ability to repay the
loan may be impaired. Commercial and multifamily real estate can be affected
significantly by the supply and demand in the market for the type of property
securing the loan and, therefore, may be subject to adverse economic
conditions. Market values may vary as a result of economic events or
governmental regulations outside the control of the borrower or lender that
impact the cash flow of the property, for example, laws which may require
modifications to properties such as the Americans with Disabilities Act, and
rent control laws in the case of multifamily mortgage loans. See "CERTAIN LEGAL
ASPECTS OF THE MORTGAGE LOANS -- Certain Laws and Regulations," "-- Type of
Mortgaged Property" and "-- Americans With Disabilities Act" herein.
Unless otherwise specified in the related Prospectus Supplement, no new
appraisals of the Mortgaged Properties will be obtained and no new valuations
will be assigned to the Mortgage Loans by the Seller in connection with the
offering of the Offered Certificates. It is possible that the market values of
the Mortgaged Properties underlying a Series of Certificates will have declined
since the origination of the related Mortgage Loans.
LIMITED OBLIGATIONS.
The Certificates of any Series will represent beneficial ownership
interests solely in the assets of the related Trust Fund and will not represent
an interest in or obligation of the Seller, the Originator, the Trustee, the
Master Servicer, the Special Servicer or any other person. The related
Agreement will provide that the Holders of the Certificates will have no rights
or remedies against the Seller or any of its affiliates for any losses or other
claims in connection with the Certificates or the Mortgage Loans other than the
repurchase of the Mortgage Loans by the Seller, if specifically set forth in
such Agreement. Distributions on any Class of Certificates will depend solely
on the amount and timing of payments and other collections in respect of the
related Mortgage Loans. There can be no assurance that these amounts, together
with other payments and collections in respect of the related Mortgage Loans,
will be sufficient to make full and timely distributions on any Offered
Certificates. Except to the extent described in the related Prospectus
Supplement, neither the Offered Certificates nor the Mortgage Loans will be
insured or guaranteed, in whole or in part, by the United States or any
governmental entity or by any private mortgage or other insurer.
LIMITED LIQUIDITY.
There will have been no secondary market for any Series of the Offered
Certificates prior to the offering thereof. There can be no assurance that such
a market will develop or, if it does develop, that it will provide holders of
the Offered Certificates with liquidity of investment or continue for the life
of the Offered Certificates.
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VARIABILITY IN AVERAGE LIFE OF OFFERED CERTIFICATES.
The payment experience on the related Mortgage Loans will affect the
actual payment experience on and the weighted average lives of the Offered
Certificates and, accordingly, may affect the yield on the Offered
Certificates. Prepayments on the Mortgage Loans will be influenced by the
prepayment provisions of the related Notes and also may be affected by a
variety of economic, geographic and other factors, including the difference
between the interest rates on the Mortgage Loans (giving consideration to the
cost of refinancing) and prevailing mortgage rates and the availability of
refinancing for commercial mortgage loans. In general, if prevailing interest
rates fall significantly below the interest rates on the Mortgage Loans, the
rate of prepayment on the Mortgage Loans would be expected to increase.
Conversely, if prevailing interest rates rise significantly above the Mortgage
Interest Rates on the Mortgage Loans, the rate of prepayment would be expected
to decrease.
Certain of the Mortgage Loans may provide for a Prepayment Premium in
connection with the prepayment thereof, and certain of the Mortgage Loans may
prohibit prepayments of principal in whole or in part during a specified
period. See "DESCRIPTION OF THE MORTGAGE POOL AND THE UNDERLYING MORTGAGED
PROPERTIES" in the related Prospectus Supplement for a description of the
Prepayment Premiums and lockout periods, if any, for the Mortgage Loans
underlying a Series of Certificates. Such Prepayment Premiums and lockout
periods can, but do not necessarily, provide a material deterrent to
prepayments. In addition, in certain jurisdictions, the enforceability of
provisions in mortgage loans prohibiting prepayment or providing for the
payment of prepayment premiums has been questioned as described under "CERTAIN
LEGAL ASPECTS OF THE MORTGAGE LOANS -- Enforceability of Certain Provisions --
Prepayment Provisions." The Seller makes no representation or warranty as to
the effect of such Prepayment Premiums or lockout periods on the rate of
prepayment of the related Mortgage Loans.
The extent to which the Master Servicer or Special Servicer, if any,
forecloses upon, takes title to and disposes of any Mortgaged Property related
to a Mortgage Loan will affect the weighted average lives of the Offered
Certificates. If a significant number of the related Mortgage Loans are
foreclosed upon by the Master Servicer or Special Servicer, if any, and
depending upon the amount and timing of recoveries from related REO Properties,
the weighted average lives of Offered Certificates may be shortened.
Delays in liquidations of defaulted Mortgage Loans and modifications
extending the maturity of Mortgage Loans will tend to extend the payment of
principal of the Mortgage Loans. Because the ability of the Borrower to make a
Balloon Payment typically will depend upon its ability either to refinance the
Mortgage Loan or to sell the related Mortgaged Property, if a significant
number of the Mortgage Loans underlying a Series of Certificates have Balloon
Payments due at maturity, there is a risk that a number of such Mortgage Loans
may default at maturity, or that the Master Servicer or Special Servicer, if
any, may extend the maturity of a number of such Mortgage Loans in connection
with workouts. No representation or warranty is made by the Seller as to the
ability of any of the related Borrowers to make required Mortgage Loan payments
on a full and timely basis, including Balloon Payments at the maturity of such
Mortgage Loans. In the case of defaults, recovery of proceeds may be delayed
by, among other things, bankruptcy of the Borrower or adverse conditions in the
market where the Mortgaged Property is located. Shortfalls in distributions to
Certificateholders also may result from losses incurred with respect to
Mortgage Loans due to uninsured risks or insufficient hazard insurance proceeds
and from any indemnification of the Master Servicer or Special Servicer in
connection with legal actions relating to the Agreement or Certificates.
CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS.
Many of the legal aspects of the Mortgage Loans are governed by the laws
of the jurisdiction in which the respective Mortgaged Properties are located
(which laws may vary substantially). These laws may affect the ability to
foreclose on, and the value of, the Mortgaged Properties securing the Mortgage
Loans. For example, state law determines what proceedings are required for
foreclosure, whether the borrower and any foreclosed junior lienors may redeem
the property, whether and to what extent recourse to the borrower is permitted,
what rights junior mortgagees have and whether the amount of fees and interest
that lenders may charge is limited. In addition, the laws of some jurisdictions
may
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render certain provisions of the Mortgage Loans unenforceable, such as
prepayment provisions, due-on-sale and acceleration provisions. Installment
Contracts and Financial Leases also may be subject to similar legal
requirements. See "CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS" herein. Delays
in liquidations of defaulted Mortgage Loans and shortfalls in amounts realized
upon liquidation as a result of the application of such laws may result in
delays and shortfalls in payments to Certificateholders.
ENVIRONMENTAL LAW CONSIDERATIONS.
The Agreement for each Series generally will provide that an updated phase
I environmental assessment be obtained with respect to any Mortgaged Property
prior to acquiring title thereto or assuming its operation. This requirement
effectively precludes assuming ownership, control or management of the related
Mortgaged Property until a satisfactory environmental assessment is obtained
(or any required remedial action is taken), reducing the likelihood that the
related Trust Fund will become liable for any environmental condition affecting
a Mortgaged Property, but making it more difficult to foreclose. However, there
can be no assurance that the requirements of the Agreement will in fact
insulate the Trust Fund from liability for environmental conditions.
Under the laws of certain states, failure to perform the remediation of
environmental conditions required or demanded by the state may give rise to a
lien on a Mortgaged Property or a restriction on the right of the owner to
transfer the Mortgaged Property to ensure the reimbursement of remediation
costs incurred by the state. Although the costs of remedial action could be
substantial, the state of the law in certain of these jurisdictions presently
is unclear as to whether and under what circumstances such costs (or the
requirements to otherwise undertake remedial actions) would be imposed on a
secured lender such as the Trust Fund. However, under the laws of some states
and under applicable federal law, a lender may be liable for such costs in
certain circumstances as the "owner" or "operator" of the Mortgaged Property.
See "CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS -- Environmental
Considerations" herein.
EARLY TERMINATION.
The Trust Fund for a Series of Certificates may be subject to optional
termination by the Master Servicer, the Special Servicer, if any, (if all of
the Mortgage Loans are Specially Serviced Mortgage Loans), or Holders of
certain Classes of Certificates under certain circumstances. In the event of
such termination, Holders of the Offered Certificates might receive some
principal payments earlier than otherwise, which could adversely affect their
anticipated yield to maturity. See "THE AGREEMENT -- Optional Termination"
herein.
THE SELLER
The Seller was incorporated in the State of Delaware on November 16, 1995,
for the purpose of engaging in the business, among other things, of acquiring
and depositing mortgage assets in trusts in exchange for certificates
evidencing interests in such trusts and selling or otherwise distributing such
certificates. The principal executive offices of the Seller are located at 85
Broad Street, New York, New York 10004. Its telephone number is (212) 902-1000.
The Seller will not have any material assets other than the Trust Funds.
Neither the Seller, nor any of its affiliates will insure or guarantee
distributions on the Certificates of any Series. The Agreement (as defined
below) for each Series will provide that the Holders of the Certificates for
such Series will have no rights or remedies against the Seller or any of its
affiliates for any losses or other claims in connection with the Certificates
or the Mortgage Loans other than the repurchase of the Mortgage Loans by the
Seller, if specifically set forth in such Agreement.
The Certificate of Incorporation, as amended, of the Seller provides that
a director of the corporation shall not be liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except to the extent that such exemption from liability or limitation thereof
is not permitted under the Delaware General Corporation Law as currently in
effect or as may be amended. In addition,
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the Bylaws of the Seller provide that the Seller shall indemnify to the full
extent permitted by law any person made or threatened to be made a party to any
action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of the fact that such person or such person's testator
or intestate is or was a director, officer or employee of the Seller or serves
or served, at the request of the Seller, any other enterprise as a director,
officer or employee. Insofar as indemnification for liabilities arising under
the Act may be permitted to directors, officers and controlling persons of the
Seller pursuant to the foregoing provisions, or otherwise, the Seller has been
advised that, in the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.
USE OF PROCEEDS
The Seller intends to apply all or substantially all of the net proceeds
from the sale of each Series offered hereby and by the related Prospectus
Supplement to acquire the Mortgage Loans relating to such Series, to establish
the Reserve Funds, if any, for the Series, to obtain other Credit Enhancement,
if any, for the Series, to pay costs incurred in connection with structuring
and issuing the Certificates and for general corporate purposes. Certificates
may be exchanged by the Seller for Mortgage Loans.
DESCRIPTION OF THE CERTIFICATES*
The Certificates of each Series will be issued pursuant to a separate
Pooling and Servicing Agreement (the "Agreement")** to be entered into among
the Seller, the Master Servicer, the Special Servicer, if any, and the Trustee
for that Series and any other parties described in the related Prospectus
Supplement, substantially in the form filed as an exhibit to the Registration
Statement of which this Prospectus is a part or in such other form as may be
described in the related Prospectus Supplement. The following summaries
describe certain provisions expected to be common to each Series and the
Agreement with respect to the underlying Trust Fund. However, the Prospectus
Supplement for each Series will describe more fully additional characteristics
of the Offered Certificates and any additional provisions of the related
Agreement.
At the time of issuance, it is anticipated that the Offered Certificates
of each Series will be rated "investment grade," typically one of the four
highest generic rating categories, by at least one nationally recognized
statistical rating organization at the request of the Seller. Each of such
rating organizations specified in the related Prospectus Supplement as rating
the Offered Certificates of the related Series at the request of the Seller is
hereinafter referred to as a "Rating Agency." A security rating is not a
recommendation to buy, sell or hold securities and may be subject to revision
or withdrawal at any time by the assigning Rating Agency. There can be no
assurance as to whether any rating agency not requested to rate the Offered
Certificates will nonetheless issue a rating and, if so, what such rating would
be. A rating assigned to the Offered Certificates by a rating agency that has
not been requested by the Seller to do so may be lower than the rating assigned
by a rating agency pursuant to the Seller's request.
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* Whenever in this Prospectus the terms "Certificates," "Trust Fund" and
"Mortgage Pool" are used, such terms will be deemed to apply, unless the
context indicates otherwise, to a specific Series of Certificates, the
Trust Fund underlying the related Series and the related Mortgage Pool.
** In the case of a Funding Note (as described below), some or all of the
provisions described herein as being part of the Agreement may be found
in other contractual documents connected with such Funding Note, such as
a collateral indenture or a separate servicing agreement, and the term
"Agreement" as used in this Prospectus will include such other
contractual documents. The Prospectus Supplement for a Series in which a
Funding Note is used will describe such other contractual documents and
will indicate in which documents various provisions mentioned in this
Prospectus are to be found and any modifications to such provisions.
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GENERAL
The Certificates of each Series will be issued in registered or book-entry
form and will represent beneficial ownership interests in the Trust Fund
created pursuant to the Agreement for such Series. The Trust Fund for each
Series will consist of the following, to the extent provided in the Agreement:
(i) the Mortgage Pool, consisting primarily of the Mortgage Loans conveyed to
the Trustee pursuant to the Agreement; (ii) all payments on or collections in
respect of the Mortgage Loans due on or after the date specified in the related
Prospectus Supplement; (iii) all property acquired by foreclosure or deed in
lieu of foreclosure with respect to the Mortgage Loans; and (iv) such other
assets or rights, such as a Funding Note, as are described in the related
Prospectus Supplement. In addition, the Trust Fund for a Series may include
various forms of Credit Enhancement, such as, but not limited to, insurance
policies on the Mortgage Loans, letters of credit, certificate guarantee
insurance policies, the right to make draws upon one or more Reserve Funds or
other arrangements acceptable to each Rating Agency rating the Offered
Certificates. See "CREDIT ENHANCEMENT." Such other assets, if any, will be
described more fully in the related Prospectus Supplement.
The Prospectus Supplement for any Series will describe any specific
features of the transaction established in connection with the holding of the
underlying Mortgage Pool. For example, if so indicated in the Prospectus
Supplement, at the time the Mortgage Loans are to be acquired from a third
party and conveyed to the Trust Fund, the third party may establish a
bankruptcy-remote special-purpose entity or a trust, to which the Mortgage
Loans will be conveyed and which in turn will issue to the Trustee a debt
instrument collateralized by, having recourse only to, and paying through
payments (which may be net of servicing fees and any retained yield) from, the
Mortgage Pool (a "Funding Note"), and such debt instrument may be conveyed to
the Trust Fund as the medium for holding the Mortgage Pool.
If specified in the related Prospectus Supplement, Certificates of a given
Series may be issued in a single Class or two or more Classes which may pay
interest at different rates, may represent different allocations of the right
to receive principal and interest payments, and certain of which may be
subordinated to other Classes in the event of shortfalls in available cash flow
from the underlying Mortgage Loans or realized losses on the underlying
Mortgage Loans. Alternatively, or in addition, if so specified in the related
Prospectus Supplement, Classes may be structured to receive principal payments
in sequence. The related Prospectus Supplement may provide that each Class in a
group of Classes structured to receive sequential payments of principal will be
entitled to be paid in full before the next Class in the group is entitled to
receive any principal payments, or may provide for partially concurrent
principal payments among one or more of such Classes. If so specified in the
related Prospectus Supplement, a Class of Offered Certificates may also provide
for payments of principal only or interest only or for disproportionate
payments of principal and interest. Subordinate Certificates of a given Series
of Offered Certificates may be offered in the same Prospectus Supplement as the
Senior Certificates of such Series or may be offered in a separate Prospectus
Supplement or may be offered in one or more transactions exempt from the
registration requirements of the Act. Each Class of Offered Certificates of a
Series will be issued in the minimum denominations specified in the related
Prospectus Supplement.
The Prospectus Supplement for any Series including types of Classes
similar to any of those described above will contain a description of their
characteristics and risk factors, including, as applicable, (i) mortgage
principal prepayment effects on the weighted average lives of such Classes,
(ii) the risk that interest only, or disproportionately interest weighted,
Classes purchased at a premium may not return their purchase prices under rapid
prepayment scenarios and (iii) the degree to which an investor's yield is
sensitive to principal prepayments.
The Offered Certificates of each Series will be freely transferable and
exchangeable at the office specified in the related Agreement and Prospectus
Supplement; provided, however, that certain Classes of Offered Certificates may
be subject to transfer restrictions described in the related Prospectus
Supplement.
If specified in the related Prospectus Supplement, the Offered
Certificates may be transferable only in book-entry form through the facilities
of The Depository Trust Company or another depository identified in such
Prospectus Supplement.
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If the Certificates of a Class are transferable only on the books of The
Depository Trust Company (the "Depository"), no person acquiring such a
Certificate that is in book-entry form (each, a "beneficial owner") will be
entitled to receive a physical certificate representing such Certificate except
in the limited circumstances described in the related Prospectus Supplement.
Instead, such Certificates will be registered in the name of a nominee of the
Depository, and beneficial interests therein will be held by investors through
the book-entry facilities of the Depository, as described herein. The Seller
has been informed by the Depository that its nominee will be Cede & Co.
Accordingly, Cede & Co. is expected to be the holder of record of any such
Certificates that are in book-entry form.
If the Certificates of a Class are transferable only on the books of the
Depository, each beneficial owner's ownership of such a Certificate will be
recorded on the records of the brokerage firm, bank, thrift institution or
other financial intermediary (each, a "Financial Intermediary") that maintains
the beneficial owner's account for such purpose. In turn, the Financial
Intermediary's ownership of such Certificate will be recorded on the records of
the Depository (or of a participating firm that acts as agent for the Financial
Intermediary, whose interest will in turn be recorded on the records of the
Depository, if the beneficial owner's Financial Intermediary is not a
Depository participant). Beneficial ownership of a book-entry Certificate may
only be transferred in compliance with the procedures of such Financial
Intermediaries and Depository participants. Because the Depository can act only
on behalf of participants, who in turn act on behalf of indirect participants
and certain banks, the ability of a beneficial owner to pledge book-entry
Certificates to persons or entities that do not participate in the Depository
system, or to otherwise act with respect to such book-entry Certificates, may
be limited due to the lack of a physical certificate for such book-entry
Certificates.
The Depository, which is a New York-chartered limited purpose trust
company, performs services for its participants, some of whom (and/or their
representatives) own the Depository. In accordance with its normal procedure,
the Depository is expected to record the positions held by each Depository
participant in the book-entry Certificates, whether held for its own account or
as a nominee for another person. In general, beneficial ownership of
Certificates will be subject to the rules, regulations and procedures governing
the Depository and Depository participants as are in effect from time to time.
If the Offered Certificates are transferable on the books of the
Depository, the Depository, or its nominee as record holder of the Offered
Certificates, will be recognized by the Seller and the Trustee as the owner of
such Certificates for all purposes, including notices and consents. In the
event of any solicitation of consents from or voting by Certificateholders
pursuant to the Agreement, the Trustee may establish a reasonable record date
and give notice of such record date to the Depository. In turn, the Depository
will solicit votes from the beneficial owners in accordance with its normal
procedures, and the beneficial owners will be required to comply with such
procedures in order to exercise their voting rights through the Depository.
Distributions of principal of and interest on the book-entry Certificates
will be made on each Distribution Date to the Depository or its nominee. The
Depository will be responsible for crediting the amount of such payments to the
accounts of the applicable Depository participants in accordance with the
Depository's normal procedures. Each Depository participant will be responsible
for disbursing such payments to the beneficial owners for which it is holding
book-entry Certificates and to each Financial Intermediary for which it acts as
agent. Each such Financial Intermediary will be responsible for disbursing
funds to the beneficial owners of the book-entry Certificates that it
represents.
The information herein concerning the Depository and its book-entry system
has been obtained from sources believed to be reliable, but the Seller takes no
responsibility for the accuracy or completeness thereof.
In the event a depository other than The Depository Trust Company is
identified in a Prospectus Supplement, information similar to that set forth
above will be provided with respect to such depository and its book-entry
facilities in such Prospectus Supplement.
DISTRIBUTIONS ON CERTIFICATES
Distributions of principal and interest on the Certificates of each Series
will be made to the registered holders thereof ("Certificateholders" or
"Holders") by the Trustee (or such other paying agent as may be
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identified in the related Prospectus Supplement) on the day (the "Distribution
Date") specified in the related Prospectus Supplement, beginning in the period
specified in the related Prospectus Supplement following the establishment of
the related Trust Fund. Distributions for each Series will be made by check
mailed to the address of the person entitled thereto as it appears on the
certificate register for such Series maintained by the Trustee, by wire
transfer or by such other method as is specified in the related Prospectus
Supplement. Unless otherwise specified in the related Prospectus Supplement,
the final distribution in retirement of the Certificates of each Series will be
made only upon presentation and surrender of the Certificates at the office or
agency specified in the notice to the Certificateholders of such final
distribution. In addition, the Prospectus Supplement relating to each Series
will set forth the applicable due period, prepayment period, record date,
Cut-Off Date and determination date in respect of each Series of Certificates.
With respect to each Series of Certificates on each Distribution Date, the
Trustee (or such other paying agent as may be identified in the related
Prospectus Supplement) will distribute to the Certificateholders the amounts of
principal and/or interest, calculated as described in the related Prospectus
Supplement, that are due to be paid on such Distribution Date. In general, such
amounts will include previously undistributed payments of principal (including
principal prepayments, if any) and interest on the Mortgage Loans (or amounts
in respect thereof) received by the Trustee after a date specified in the
related Prospectus Supplement (the "Cut-Off Date") and prior to the day
preceding each Distribution Date specified in the related Prospectus
Supplement.
The related Prospectus Supplement for any Series of Certificates will
specify, for any Distribution Date on which the principal balance of the
Mortgage Loans is reduced due to losses, the priority and manner in which such
losses will be allocated. Unless otherwise specified in the related Prospectus
Supplement, losses on Mortgage Loans generally will be allocated after all
proceeds of defaulted Mortgage Loans have been received by reducing the
outstanding Certificate Principal Amount of the most subordinate outstanding
Class of Certificates. If specified in the related Prospectus Supplement,
losses may be estimated on the basis of a qualified appraisal of the Mortgaged
Property and allocated prior to the final liquidation of the Mortgaged
Property. The related Prospectus Supplement for any Series of Certificates also
will specify the manner in which principal prepayments, negative amortization
and interest shortfalls will be allocated among the Classes of Certificates.
ACCOUNTS
It is expected that the Agreement for each Series of Certificates will
provide that the Trustee establish an account (the "Distribution Account") into
which the Master Servicer will deposit amounts held in the Collection Account
and from which account distributions will be made with respect to a given
Distribution Date. On each Distribution Date, the Trustee will apply amounts on
deposit in the Distribution Account generally to make distributions of interest
and principal to the Certificateholders in the manner described in the related
Prospectus Supplement.
It is also expected that the Agreement for each Series of Certificates
will provide that the Master Servicer establish and maintain a special trust
account (the "Collection Account") in the name of the Trustee for the benefit
of Certificateholders. Unless otherwise specified in the related Prospectus
Supplement, the Master Servicer will deposit into the Collection Account, as
more fully described in the related Prospectus Supplement (other than in
respect of principal of, or interest on, the Mortgage Loans due on or before
the Cut-Off Date): (1) all payments on account of principal, including
principal prepayments, on the Mortgage Loans; (2) all payments on account of
interest on the Mortgage Loans and all Prepayment Premiums; (3) all proceeds
from any insurance policy relating to a Mortgage Loan ("Insurance Proceeds")
other than proceeds applied to restoration of the related Mortgaged Property or
otherwise applied in accordance with the terms of the related Mortgage Loans;
(4) all proceeds from the liquidation of a Mortgage Loan ("Liquidation
Proceeds"), including the sale of any Mortgaged Property acquired on behalf of
the Trust Fund through foreclosure or deed in lieu of foreclosure ("REO
Property"); (5) all proceeds received in connection with the taking of a
Mortgaged Property by eminent domain; (6) any amounts required to be deposited
by the Master Servicer to cover net losses on Permitted Investments made with
funds held in the Collection Account; (7) any amounts required to be deposited
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in connection with the application of co-insurance clauses, flood damage to REO
Properties and blanket policy deductibles; (8) any amounts required to be
deposited from income with respect to any REO Property and deposited in the REO
Account (to the extent the funds in the REO Account exceed the expenses of
operating and maintaining REO Properties and reserves established therefor);
(9) any Advance made by the Master Servicer that is required to be deposited
therein pursuant to the Agreement; and (10) any amounts received from Borrowers
which represent recoveries of Property Protection Expenses. Unless otherwise
specified in the related Prospectus Supplement, the Special Servicer, if any,
will be required to remit immediately to the Master Servicer for deposit in the
Collection Account any amounts of the types described above that it receives in
respect of the Specially Serviced Mortgage Loans. "Prepayment Premium" means
any premium paid or payable by the related Borrower in connection with any
principal prepayment on any Mortgage Loan. "Property Protection Expenses"
comprise certain costs and expenses incurred in connection with defaulted
Mortgage Loans, acquiring title or management of REO Property or the sale of
defaulted Mortgage Loans or REO Properties, as more fully described in the
related Agreement. As set forth in the Agreement for each Series, the Master
Servicer will be entitled to make from time to time certain withdrawals from
the Collection Account to, among other things: (i) remit certain amounts for
the related Distribution Date into the Distribution Account; (ii) to the extent
specified in the related Prospectus Supplement, reimburse Property Protection
Expenses and pay taxes, assessments and insurance premiums and certain
third-party expenses in accordance with the Agreement; (iii) pay accrued and
unpaid servicing fees to the Master Servicer out of all Mortgage Loan
collections; and (iv) reimburse the Master Servicer, the Special Servicer, if
any, the Trustee and the Seller for certain expenses and provide
indemnification to the Seller, the Master Servicer, the Trustee and, if
applicable, the Special Servicer, as described in the Agreement.
The amounts at any time credited to the Collection Account may be invested
in Permitted Investments that are payable on demand or in general mature or are
subject to withdrawal or redemption on or before the business day preceding the
next succeeding Master Servicer Remittance Date. The Master Servicer will be
required to remit amounts required for distribution to Certificateholders to
the Distribution Account on the business day preceding the related Distribution
Date that is specified in the related Prospectus Supplement (the "Master
Servicer Remittance Date"). Unless otherwise set forth in the related
Prospectus Supplement, the income from the investment of funds in the
Collection Account in Permitted Investments will constitute additional
servicing compensation for the Master Servicer, and the risk of loss of funds
in the Collection Account resulting from such investments will be borne by the
Master Servicer. The amount of any such loss will be required to be deposited
by the Master Servicer in the Collection Account immediately as realized.
It is expected that the Agreement for each Series of Certificates will
provide that a special trust account (the "REO Account") will be established
and maintained in order to be used in connection with each REO Property and, if
specified in the related Prospectus Supplement, certain other Mortgaged
Properties. To the extent set forth in the Agreement, certain withdrawals from
the REO Account will be made to, among other things, (i) make remittances to
the Collection Account as required by the Agreement, (ii) pay taxes,
assessments, insurance premiums, other amounts necessary for the proper
operation, management and maintenance of the REO Properties and such other
Mortgaged Properties and certain third-party expenses in accordance with the
Agreement (including expenses relating to any appraisal, property inspection
and environmental assessment reports required by the Agreement) and (iii)
provide for the reimbursement of certain expenses in respect of the REO
Properties and such Mortgaged Properties.
The amount at any time credited to each REO Account will be fully insured
to the maximum coverage possible or will be invested in Permitted Investments
that mature, or are subject to withdrawal or redemption, on or before the
business day on which such amounts are required to be remitted to the Master
Servicer for deposit in the Collection Account. Unless otherwise specified in
the related Prospectus Supplement, the income from the investment of funds in
the REO Account in Permitted Investments shall be deposited in the REO Account
for remittance to the Collection Account, and the risk of loss of funds in the
REO Account resulting from such investments will be borne by the Trust Fund.
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Unless otherwise specified in the related Prospectus Supplement,
"Permitted Investments" will consist of one or more of the following:
(i) direct obligations of, or guaranteed as to timely payment of principal
and interest by, the United States or any agency or instrumentality thereof
provided that such obligations are backed by the full faith and credit of the
United States;
(ii) direct obligations of, or guaranteed as to timely payment of
principal and interest by, the Federal Home Loan Mortgage Corporation
("FHLMC"), the Federal National Mortgage Association or the Federal Farm Credit
System, provided that any such obligation, at the time of purchase of such
obligation or contractual commitment providing for the purchase thereof, is
qualified by each Rating Agency as an investment of funds backing securities
having ratings equivalent to each Rating Agency's highest initial rating of the
Certificates;
(iii) demand and time deposits in, or certificates of deposit of, or
bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, provided that, in the case of obligations that are
not fully FDIC-insured deposits, the commercial paper and /or long-term
unsecured debt obligations of such depository institution or trust company (or
in the case of the principal depository institution in a holding company
system, the commercial paper or long-term unsecured debt obligations of such
holding company) have the highest rating available for such securities by each
Rating Agency (in the case of commercial paper) or have received one of the two
highest ratings available for such securities by each Rating Agency (in the
case of long-term unsecured debt obligations), or such lower rating as will not
result in the downgrading or withdrawal of the rating or ratings then assigned
to the Certificates by any Rating Agency;
(iv) general obligations of, or obligations guaranteed by, any state of
the United States or the District of Columbia receiving one of the two highest
long-term debt ratings available for such securities by each Rating Agency, or
such lower rating as will not result in the downgrading or withdrawal of the
rating or ratings then assigned to the Certificates by any such Rating Agency;
(v) commercial or finance company paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) that is rated by each Rating Agency in its highest
short-term unsecured rating category at the time of such investment or
contractual commitment providing for such investment, and is issued by a
corporation the outstanding senior long-term debt obligations of which are then
rated by each Rating Agency in one of its two highest long-term unsecured
rating categories, or such lower rating as will not result in the downgrading
or withdrawal of the rating or ratings then assigned to the Certificates by any
Rating Agency;
(vi) guaranteed reinvestment agreements issued by any bank, insurance
company or other corporation rated in one of the two highest ratings available
to such issuers by each Rating Agency at the time of such investment, provided
that any such agreement must by its terms provide that it is terminable by the
purchaser without penalty in the event any such rating is at any time lower
than such level;
(vii) repurchase obligations with respect to any security described in
clause (i) or (ii) above entered into with a depository institution or trust
company (acting as principal) meeting the ratings standard described in (iii)
above;
(viii) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States or any state
thereof and rated by each Rating Agency in one of its two highest long-term
unsecured rating categories at the time of such investment or contractual
commitment providing for such investment, subject to such limitations, if any,
as are provided in the related Agreement;
(ix) units of taxable money market funds which funds are regulated
investment companies, seek to maintain a constant net asset value per share and
invest solely in obligations backed by the full faith and credit of the United
States, and have been designated in writing by each Rating Agency as Permitted
Investments with respect to this definition;
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(x) if previously confirmed in writing to the Trustee, any other demand,
money market or time deposit, or any other obligation, security or investment,
as may be acceptable to each Rating Agency as an investment of funds backing
securities having ratings equivalent to each Rating Agency's highest initial
rating of the Certificates; and
(xi) such other obligations as are acceptable as Permitted Investments to
each Rating Agency; provided, however, that (a) such instrument or security
shall qualify as a "cash flow investment" pursuant to the Internal Revenue Code
of 1986, as amended (the "Code") and (b) no instrument or security shall be a
Permitted Investment if (i) such instrument or security evidences a right to
receive only interest payments or (ii) the stated interest rate on such
investment is in excess of 120% of the yield to maturity produced by the price
at which such investment was purchased.
As described in the related Prospectus Supplement, for a Series of
Certificates where the underlying Mortgage Loans are held through a Funding
Note, some of the accounts described above may be held by the issuer or
collateral trustee of such Funding Note.
AMENDMENT
The Agreement for each Series will provide that it may be amended by the
parties thereto without the consent of any of the Certificateholders (i) to
cure any ambiguity, (ii) to correct or supplement any provision therein that
may be inconsistent with any other provision therein or in the Prospectus
Supplement, (iii) to maintain the rating or ratings assigned to the
Certificates by a Rating Agency or (iv) to make other provisions with respect
to matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that any such
amendment pursuant to clause (iv) above will not, as evidenced by an opinion of
counsel acceptable to the Seller and the Trustee, or as otherwise specified in
the Agreement and the related Prospectus Supplement, adversely affect in any
material respect the interests of any Certificateholder.
Unless otherwise specified in the related Prospectus Supplement, each
Agreement also will provide that it may be amended by the parties thereto with
the consent of the Holders of Certificates representing an aggregate
outstanding principal amount of not less than 66 2/3% of each Class of
Certificates affected by the proposed amendment for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or modifying in any manner the rights of Certificateholders;
provided, however, that no such amendment may (i) reduce in any manner the
amount of, or delay the timing of, payments received on Mortgage Loans which
are required to be distributed on any Certificate without the consent of each
affected Certificateholder, (ii) reduce the aforesaid percentage of
Certificates the Holders of which are required to consent to any such
amendment, without the consent of the Holders of all Certificates then
outstanding, or (iii) alter the servicing standard set forth in the Agreement.
Further, the Agreement for each Series may provide that the parties thereto, at
any time and from time to time, without the consent of the Certificateholders,
may amend the Agreement to modify, eliminate or add to any of its provisions to
such extent as shall be necessary to maintain the qualification of the Trust
Fund as a REMIC or a FASIT, as the case may be, or to prevent the imposition of
any additional state or local taxes, at all times that any of the Certificates
are outstanding; provided, however, that such action, as evidenced by an
opinion of counsel acceptable to the Trustee, is necessary or helpful to
maintain such qualification or to prevent the imposition of any such taxes, and
would not adversely affect in any material respect the interest of any
Certificateholder.
The Agreement relating to each Series may provide that no amendment to
such Agreement will be made unless there has been delivered in accordance with
such Agreement an opinion of counsel to the effect that such amendment will not
cause such Series to fail to qualify as a REMIC or a FASIT, as the case may be,
at any time that any of the Certificates are outstanding or cause a tax to be
imposed on the Trust Fund under the REMIC or FASIT provisions of the Code.
The Prospectus Supplement for a Series may describe other or different
provisions concerning the amendment of the related Agreement.
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TERMINATION
Unless otherwise specified in the related Prospectus Supplement, the
obligations of the parties to the Agreement for each Series will terminate
upon: (i) the purchase of all of the assets of the related Trust Fund, as
described in the related Prospectus Supplement; (ii) the later of (a) the
distribution to Certificateholders of that Series of final payment with respect
to the last outstanding Mortgage Loan or (b) the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure with respect to the
last outstanding Mortgage Loan and the remittance to the Certificateholders of
all funds due under the Agreement; (iii) the sale of the assets of the related
Trust Fund after the principal amounts of all Certificates have been reduced to
zero under certain circumstances set forth in the Agreement; or (iv) mutual
consent of the parties and all Certificateholders. With respect to each Series,
the Trustee will give or cause to be given written notice of termination of the
Agreement to each Certificateholder and, unless otherwise specified in the
related Prospectus Supplement, the final distribution under the Agreement will
be made only upon surrender and cancellation of the related Certificates at an
office or agency specified in the notice of termination.
REPORTS TO CERTIFICATEHOLDERS
Concurrently with each distribution for each Series, the Trustee (or such
other paying agent as may be identified in the related Prospectus Supplement)
will make available to each Certificateholder several monthly reports setting
forth such information as is specified in the Agreement and described in the
related Prospectus Supplement, which may include the following information, if
applicable:
(i) a Distribution Date Statement that provides, among other things,
standard information as to principal and interest distributions, Certificate
Principal Amounts, Advances and Scheduled Principal Balances of the Mortgage
Loans;
(ii) a Mortgage Loan Status Report, which provides updated information
regarding the Mortgage Loans and a loan-by-loan listing showing loan name,
property type, location, unpaid principal balance, interest rate, paid through
date and maturity date, which loan-by-loan listing may be made available
electronically;
(iii) a Financial Status Report, which provides, among other things,
revenue, net operating income and debt service coverage ratio for certain
Mortgage Loans;
(iv) a Delinquent Loan Status Report, which provides, among other things,
loan name, loan number and unpaid principal balance of Mortgage Loans which are
delinquent 30-59 days, 60-89 days, 90 days or more, or are in foreclosure but
have not yet become REO Properties;
(v) an Historical Loan Modification Report, which provides, among other
things, information on those Mortgage Loans which have been modified;
(vi) an Historical Loss Estimate Report, which provides on a loan-by-loan
basis, among other things, the aggregate amount of Liquidation Proceeds,
liquidation expenses and realized losses for certain Specially Serviced
Mortgage Loans;
(vii) an REO Status Report, which provides, among other things, for each
REO Property, the date of acquisition, net operating income and the value of
such REO Property (based on the most recent appraisal or valuation); and
(viii) a Watch List, which provides, among other things, a list of
Mortgage Loans in jeopardy of becoming Specially Serviced Mortgage Loans.
THE TRUSTEE
The Seller will select a bank or trust company to act as trustee (the
"Trustee") under the Agreement for each Series and the Trustee will be
identified in the related Prospectus Supplement.
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THE MORTGAGE POOLS
GENERAL
Each Mortgage Pool will consist of one or more mortgage loans secured by
first, second or more junior mortgages, deeds of trust or similar security
instruments ("Mortgages") on, or installment contracts ("Installment
Contracts") for the sale of or financial leases and other similar arrangements
equivalent to such mortgage loans on, fee simple or leasehold interests in
commercial real property, multifamily residential property, mixed
residential/commercial property, and related property and interests (each such
interest or property, as the case may be, a "Mortgaged Property"). Each such
mortgage loan, lease or Installment Contract is herein referred to as a
"Mortgage Loan."
Mortgage Loans will be of one or more of the following types:
1. Mortgage Loans with fixed interest rates;
2. Mortgage Loans with adjustable interest rates;
3. Mortgage Loans with principal balances that fully amortize over their
remaining terms to maturity;
4. Mortgage Loans whose principal balances do not fully amortize but
instead provide for a substantial principal payment at the stated maturity
of the loan;
5. Mortgage Loans that provide for recourse against only the Mortgaged
Properties;
6. Mortgage Loans that provide for recourse against the other assets of
the related Borrowers; and
7. any other types of Mortgage Loans described in the related Prospectus
Supplement.
Certain Mortgage Loans ("Simple Interest Loans") may provide that
scheduled interest and principal payments thereon are applied first to interest
accrued from the last date to which interest has been paid to the date such
payment is received and the balance thereof is applied to principal, and other
Mortgage Loans may provide for payment of interest in advance rather than in
arrears.
Mortgage Loans may also be secured by one or more assignments of leases
and rents, management agreements, security agreements, or rents, fixtures and
personalty or operating agreements relating to the Mortgaged Property and in
some cases by certain letters of credit, personal guarantees or both. Pursuant
to an assignment of leases and rents, the obligor (the "Borrower") on the
related promissory note (the "Note") assigns its right, title and interest as
landlord under each lease and the income derived therefrom to the related
lender, while retaining a right, or in some cases a license, to collect the
rents for so long as there is no default. If the Borrower defaults, the license
terminates and the related lender is entitled to collect the rents from tenants
to be applied to the monetary obligations of the Borrower. State law may limit
or restrict the enforcement of the assignment of leases and rents by a lender
until the lender takes possession of the related Mortgaged Property and a
receiver is appointed. See "CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS --
Leases and Rents."
Certain Mortgage Loans may provide for "equity participations" which, as
specified in the related Prospectus Supplement, may or may not be assigned to
the Trust Fund. If so specified in the related Prospectus Supplement, the
Mortgage Loans may provide for holdbacks of certain of the proceeds of such
loans. In such event, the amount of such holdback will be deposited by the
Seller into an escrow account held by the Trustee unless otherwise specified in
the related Prospectus Supplement.
Unless otherwise specified in the Prospectus Supplement for a Series, the
Mortgage Loans will not be insured or guaranteed by the United States, any
governmental agency or any private mortgage insurer.
Unless otherwise specified therein, the Prospectus Supplement relating to
each Series will provide specific information regarding the characteristics of
the Mortgage Loans, as of the Cut-Off Date, including, among other things: (i)
the aggregate principal balance of the Mortgage Loans and the largest,
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smallest and average principal balance of the Mortgage Loans; (ii) the types of
properties securing the Mortgage Loans and the aggregate principal balance of
the Mortgage Loans secured by each type of property; (iii) the interest rate or
range of interest rates of the Mortgage Loans and the weighted average Mortgage
Interest Rate of the Mortgage Loans; (iv) the original and remaining terms to
stated maturity of the Mortgage Loans and the seasoning of the Mortgage Loans;
(v) the earliest and latest origination date and maturity date and the weighted
average original and remaining terms to stated maturity of the Mortgage Loans;
(vi) the loan-to-valuation ratios at origination and current loan
balance-to-original valuation ratios of the Mortgage Loans; (vii) the
geographic distribution of the Mortgaged Properties underlying the Mortgage
Loans; (viii) the minimum interest rates, margins, adjustment caps, adjustment
frequencies, indices and other similar information applicable to adjustable
rate Mortgage Loans; (ix) the debt service coverage ratios relating to the
Mortgage Loans; (x) information with respect to the prepayment provisions, if
any, of the Mortgage Loans; (xi) information as to the payment characteristics
of the Mortgage Loans, including, without limitation, balloon payment and other
amortization provisions; and (xii) payment delinquencies, if any, relating to
the Mortgage Loans. If specified in the related Prospectus Supplement, the
Seller may segregate the Mortgage Loans in a Mortgage Pool into separate
"Mortgage Loan Groups" (as described in the related Prospectus Supplement) as
part of the structure of the payments of principal and interest on the
Certificates of a Series. In such case, the Seller may disclose the
above-specified information by Mortgage Loan Group. In the event that the
Mortgage Loans consist of financial leases or Installment Contracts, the
related Prospectus Supplement will provide appropriate specific information
analogous to that described above.
The Seller will file a current report on Form 8-K (the "Form 8-K") with
the Securities and Exchange Commission within 15 days after the initial
issuance of each Series of Certificates (each, a "Closing Date"), as specified
in the related Prospectus Supplement, which will set forth information with
respect to the Mortgage Loans included in the Trust Fund for a Series as of the
related Closing Date. The Form 8-K will be available to the Certificateholders
of the related Series promptly after its filing.
UNDERWRITING AND INTERIM SERVICING STANDARDS APPLICABLE TO THE MORTGAGE LOANS
Unless otherwise indicated in the related Prospectus Supplement, the
Mortgage Loans in the Mortgage Pool underlying the Certificates of a Series
will be newly-originated or seasoned Mortgage Loans and will be purchased or
otherwise acquired from third parties, which third parties may or may not be
originators of such Mortgage Loans and may or may not be affiliates of the
Seller. The origination standards and procedures applicable to such Mortgage
Loans may differ from Series to Series or among the Mortgage Loans in a given
Mortgage Pool, depending on the identity of the originator or originators. In
the case of seasoned Mortgage Loans, the procedures by which such Mortgage
Loans have been serviced from their origination to the time of their inclusion
in the related Mortgage Pool may also differ from Series to Series or among the
Mortgage Loans in a given Mortgage Pool.
The related Prospectus Supplement for each Series will provide information
as to the origination standards and procedures applicable to the Mortgage Loans
in the related Mortgage Pool and, to the extent applicable and material, will
provide information as to the servicing of such Mortgage Loans prior to their
inclusion in the Mortgage Pool.
ASSIGNMENT OF MORTGAGE LOANS
At the time of issuance of the Certificates of each Series, the Seller
will cause the Mortgage Loans (or, in the case of a structure using a Funding
Note, the Funding Note) to be assigned to the Trustee, together with, as more
fully specified in the related Prospectus Supplement, all payments due on or
with respect to such Mortgage Loans (or Funding Note), other than principal and
interest due on or before the Cut-Off Date and principal prepayments received
on or before the Cut-Off Date. The Trustee, concurrently with such assignment,
will execute and deliver Certificates evidencing the beneficial ownership
interests in the related Trust Fund to the Seller in exchange for the Mortgage
Loans. Each Mortgage Loan will be identified in a schedule appearing as an
exhibit to the Agreement for the related Series (the "Mortgage Loan Schedule").
The Mortgage Loan Schedule will include, among other things, as to each
Mortgage Loan, information as to its outstanding principal balance as of the
close of business
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on the Cut-Off Date, as well as information respecting the interest rate, the
scheduled monthly (or other periodic) payment of principal and interest as of
the Cut-Off Date and the maturity date of each Note.
In addition, except to the extent otherwise specified in the related
Prospectus Supplement, the Seller will, as to each Mortgage Loan, deliver to
the Trustee: (i) the Note, endorsed to the order of the Trustee without
recourse; (ii) the Mortgage and an executed assignment thereof in favor of the
Trustee or otherwise as required by the Agreement; (iii) any assumption,
modification or substitution agreements relating to the Mortgage Loan; (iv) a
lender's title insurance policy (or owner's policy in the case of a financial
lease or an Installment Contract), together with its endorsements, or, in the
case of Mortgage Loans that are not covered by title insurance, an attorney's
opinion of title issued as of the date of origination of the Mortgage Loan; (v)
if the assignment of leases, rents and profits is separate from the Mortgage,
an executed re-assignment of assignment of leases, rents and profits to the
Trustee; (vi) a copy of any recorded UCC-1 financing statements and related
continuation statements, together with (in the case of such UCC-1 financing
statements which are in effect as of the Closing Date) an original executed
UCC-2 or UCC-3 statement, in a form suitable for filing, disclosing the
assignment to the Trustee of a security interest in any personal property
constituting security for the repayment of the Mortgage; and (vii) such other
documents as may be described in the Agreement (such documents, collectively,
the "Mortgage Loan File"). Unless otherwise expressly permitted by the
Agreement, all documents included in the Mortgage Loan File are to be original
executed documents; provided, however, that in instances where the original
recorded Mortgage, Mortgage assignment or any document necessary to assign the
Seller's interest in financial leases or Installment Contracts to the Trustee,
as described in the Agreement, has been retained by the applicable jurisdiction
or has not yet been returned from recordation, the Seller may deliver a
photocopy thereof certified to be the true and complete copy of the original
thereof submitted for recording, and the Master Servicer will cause the
original of each such document which is unavailable because it is being or has
been submitted for recordation and has not yet been returned, to be delivered
to the Trustee as soon as available.
The Trustee will hold the Mortgage Loan File for each Mortgage Loan in
trust for the benefit of all Certificateholders. Pursuant to the Agreement, the
Trustee is obligated to review the Mortgage Loan File for each Mortgage Loan
within a specified number of days after the execution and delivery of the
Agreement. Unless otherwise specified in the related Prospectus Supplement, if
any document in the Mortgage Loan File is found to be defective in any material
respect, the Trustee will promptly notify the Seller, the originator of the
related Mortgage Loan or such other party as is designated in the related
Agreement (the "Responsible Party") and the Master Servicer. Unless otherwise
specified in the related Prospectus Supplement, if the Responsible Party cannot
cure such defect within the time period specified in such Prospectus
Supplement, the Responsible Party will be obligated to either substitute the
affected Mortgage Loan with a Substitute Mortgage Loan or Loans, or to
repurchase the related Mortgage Loan from the Trustee within the time period
specified in such Prospectus Supplement at a price specified therein, expected
to be generally equal to the principal balance thereof as of the date of
purchase or, in the case of a Series as to which an election has been made to
treat the related Trust Fund as a REMIC, at such other price as may be
necessary to avoid a tax on a prohibited transaction, as described in Section
860F(a) of the Code, in each case together with accrued interest at the
applicable Mortgage Interest Rate to the first day of the month following such
repurchase, plus the amount of any unreimbursed advances made by the Master
Servicer in respect of such Mortgage Loan. Unless otherwise specified in the
related Prospectus Supplement, this substitution or purchase obligation will
constitute the sole remedy available to the Holders of Certificates or the
Trustee for a material defect in a constituent document.
The related Prospectus Supplement will describe procedures for the review
and holding of Mortgage Loans in the case of a structure using a Funding Note.
REPRESENTATIONS AND WARRANTIES
To the extent specified in the related Prospectus Supplement, the
Responsible Party with respect to each Mortgage Loan will have made certain
representations and warranties in respect of such Mortgage Loan and such
representations and warranties will have been assigned to the Trustee and/or
the Seller
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will have made certain representations and warranties in respect of the
Mortgage Loans directly to the Trustee. Such representations and warranties
will be set forth in an annex to the related Prospectus Supplement. Upon the
discovery of the breach of any such representation or warranty in respect of a
Mortgage Loan that materially and adversely affects the interests of the
Certificateholders of the related Series, the Responsible Party or the Seller,
as the case may be, will be obligated either to cure such breach in all
material respects within the time period specified in such Prospectus
Supplement, to replace the affected Mortgage Loan with a Substitute Mortgage
Loan or Loans or to repurchase such Mortgage Loan at a price specified therein,
expected to be generally equal to the unpaid principal balance thereof at the
date of repurchase or, in the case of a Series of Certificates as to which the
Seller has elected to treat the related Trust Fund as a REMIC, as defined in
the Code, at such other price as may be necessary to avoid a tax on a
prohibited transaction, as described in Section 860F(a) of the Code, in each
case together with accrued interest at the per annum interest rate applicable
for the related Mortgage Loan (the "Mortgage Rate"), to the first day of the
month following such repurchase and the amount of any unreimbursed advances
made by the Master Servicer in respect of such Mortgage Loan. The Master
Servicer will be required to enforce such obligation of the Responsible Party
or the Seller for the benefit of the Trustee and the Certificateholders,
following the practices it would employ in its good faith business judgment
were it the owner of such Mortgage Loan. Unless otherwise specified in the
related Prospectus Supplement and subject to the ability of the Responsible
Party or the Seller to cure such breach in all material respects or deliver
Substitute Mortgage Loans for certain Mortgage Loans as described below, such
repurchase obligation will constitute the sole remedy available to the
Certificateholders of such Series for a breach of a representation or warranty
by the Responsible Party or the Seller.
The proceeds of any repurchase of a Mortgage Loan will be deposited,
subject to certain limitations set forth in the related Agreement, into the
Collection Account.
Within the period of time specified in the related Prospectus Supplement,
following the date of issuance of a Series of Certificates, the Responsible
Party or the Seller, as the case may be, may deliver to the Trustee Mortgage
Loans ("Substitute Mortgage Loans") in substitution for any one or more of the
Mortgage Loans ("Defective Mortgage Loans") initially included in the Trust
Fund (or in the Mortgage Pool underlying a Funding Note) but which do not
conform in one or more respects to the description thereof contained in the
related Prospectus Supplement, as to which a breach of a representation or
warranty is discovered, which breach materially and adversely affects the
interests of the Certificateholders, or as to which a document in the related
Mortgage Loan File is defective in any material respect. Unless otherwise
specified in the related Prospectus Supplement, the required characteristics of
any Substitute Mortgage Loan will generally include, among other things, that
such Substitute Mortgage Loan on the date of substitution, will (i) have an
outstanding principal balance, after deduction of all scheduled payments due in
the month of substitution, not in excess of the outstanding principal balance
of the Defective Mortgage Loan (the amount of any shortfall to be distributed
to Certificateholders in the month of substitution), (ii) have a Mortgage
Interest Rate not less than (and not more than 1% greater than) the Mortgage
Interest Rate of the Defective Mortgage Loan, (iii) have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Defective Mortgage Loan and (iv) comply with all of the representations and
warranties set forth in the Agreement as of the date of substitution.
If so specified in the related Prospectus Supplement, other entities may
also make representations and warranties with respect to the Mortgage Loans
included in a Mortgage Pool. Unless otherwise specified in such Prospectus
Supplement, such other entity will have the same obligations with respect to
such representations and warranties as the Responsible Party or the Seller.
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SERVICING OF THE MORTGAGE LOANS
GENERAL
The Prospectus Supplement related to a Series will identify the master
servicer (the "Master Servicer") to service and administer the Mortgage Loans
as described below, and will set forth certain information concerning the
Master Servicer. The Master Servicer will be responsible for servicing the
Mortgage Loans pursuant to the Agreement for the related Series. The Master
Servicer may have other business relationships with the Seller and its
affiliates.
If so specified in the related Prospectus Supplement, the servicing of
certain Mortgage Loans that are in default or otherwise require special
servicing (the "Specially Serviced Mortgage Loans") will be performed by a
special servicer (the "Special Servicer"). Certain information concerning the
Special Servicer and the standards for determining which Mortgage Loans will
become Specially Serviced Mortgage Loans will be set forth in such Prospectus
Supplement. Subject to the terms of the related Agreement, the Special Servicer
(and not the Master Servicer) will then be responsible for (a) negotiating
modifications, waivers, amendments and other forbearance arrangements with the
Borrower of any Specially Serviced Mortgage Loan, subject to the limitations
described under "-- Modifications, Waivers and Amendments" below; (b)
foreclosing on such Specially Serviced Mortgage Loan if no suitable
arrangements can be made to cure the default in the manner specified in the
related Prospectus Supplement; and (c) supervising the management and operation
of the related Mortgaged Property if acquired through foreclosure or a deed in
lieu of foreclosure. The Special Servicer may have other business relationships
with the Seller and its affiliates.
Unless otherwise specified in the related Prospectus Supplement, the
Master Servicer and the Special Servicer, if any, may subcontract the servicing
of all or a portion of the Mortgage Loans to one or more sub-servicers. Such
sub-servicers may have other business relationships with the Seller and its
affiliates.
SERVICING STANDARDS
The Master Servicer and, except when acting at the direction of any
Operating Advisor, the Special Servicer, if any, will be required to service
and administer the Mortgage Loans solely in the best interests of and for the
benefit of the Certificateholders (as determined by the Master Servicer or the
Special Servicer, if any, as the case may be, in its reasonable judgment
without taking into account differing payment priorities among the Classes of
the related Series of Certificates and any conflicts of interest involving it),
in accordance with the terms of the Agreement and the Mortgage Loans and, to
the extent consistent with such terms, in the same manner in which, and with
the same care, skill, prudence and diligence with which, it services and
administers similar mortgage loans in other portfolios, giving due
consideration to the customary and usual standards of practice of prudent
institutional commercial mortgage lenders and loan servicers. If so specified
in the related Prospectus Supplement, the Master Servicer and Special Servicer,
if any, may also be required to service and administer the Mortgage Loans in
the best interest of an insurer or guarantor or in accordance with the
provisions of a related Funding Note.
OPERATING ADVISOR
If so specified in the related Prospectus Supplement, an advisor (the
"Operating Advisor") may be selected to advise, direct and approve
recommendations of the Special Servicer with respect to certain decisions
relating to the servicing of the Specially Serviced Mortgage Loans. The related
Prospectus Supplement will provide specific information with respect to the
following matters: (i) the duration of the term of the Operating Advisor; (ii)
the method of selection of the Operating Advisor; (iii) certain decisions as to
which the Operating Advisor will have the power to direct and approve actions
of the Special Servicer (for example, foreclosure of a Mortgaged Property
securing a Specially Serviced Mortgage Loan, modification of a Specially
Serviced Mortgage Loan, extension of the maturity of a Specially Serviced
Mortgage Loan beyond a specified term and methods of compliance with
environmental laws) and (iv) the information, recommendations and reports to be
provided to the Operating Advisor by the Special Servicer.
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COLLECTIONS AND OTHER SERVICING PROCEDURES
The Master Servicer and, with respect to any Specially Serviced Mortgage
Loans, the Special Servicer, if any, will make efforts to collect all payments
called for under the Mortgage Loans and will, consistent with the related
Agreement, follow such collection procedures as it deems necessary or
desirable. Consistent with the above, unless otherwise specified in the related
Prospectus Supplement, the Master Servicer or Special Servicer, if any, may, in
its discretion, waive any late payment or assumption charge or penalty interest
in connection with any late payment or assumption of a Mortgage Loan and, if so
specified in the related Prospectus Supplement, may extend the due dates for
payments due on a Note.
It is expected that the Agreement for each Series will provide that the
Master Servicer establish and maintain an escrow account (the "Escrow Account")
in which the Master Servicer will be required to deposit amounts received from
each Borrower, if required by the terms of the related Note, for the payment of
taxes, assessments, certain mortgage and hazard insurance premiums and other
comparable items. The Special Servicer, if any, will be required to remit
amounts received for such purposes on Mortgage Loans serviced by it for deposit
in the Escrow Account and will be entitled to direct the Master Servicer to
make withdrawals from the Escrow Account as may be required for the servicing
of such Mortgage Loans. Withdrawals from the Escrow Account may be made to
effect timely payment of taxes, assessments, mortgage and hazard insurance
premiums and comparable items, to refund to Borrowers amounts determined to be
overages, to remove amounts deposited therein in error, to pay interest to
Borrowers on balances in the Escrow Account, if required, to repair or
otherwise protect the Mortgaged Properties and to clear and terminate such
account. Unless otherwise set forth in the related Prospectus Supplement, the
Master Servicer will be entitled to all income on the funds in the Escrow
Account invested in Permitted Investments not required to be paid to Borrowers
under applicable law. The Master Servicer will be responsible for the
administration of the Escrow Account. If amounts on deposit in the Escrow
Account are insufficient to pay any tax, insurance premium or other similar
item when due, such item will be payable from amounts on deposit in the
Collection Account or otherwise in the manner set forth in the Prospectus
Supplement and Agreement for the related Series.
INSURANCE
Unless otherwise specified in the related Prospectus Supplement, the
Agreement for each Series will require that the Master Servicer maintain or
require each Borrower to maintain insurance in accordance with the related
Mortgage, which generally will include a standard fire and hazard insurance
policy with extended coverage. To the extent required by the related Mortgage,
the coverage of each such standard hazard insurance policy will be in an amount
that is not less than the lesser of 90% of the replacement cost of the
improvements securing such Mortgage Loan or the outstanding principal balance
owing on such Mortgage Loan. Unless otherwise specified in the related
Prospectus Supplement, if a Mortgaged Property was located at the time of
origination of the related Mortgage Loan in a federally designated special
flood hazard area, the Master Servicer also will maintain or require the
related Borrower to maintain in accordance with the related Mortgage flood
insurance in an amount equal to the lesser of the unpaid principal balance of
the related Mortgage Loan and the maximum amount obtainable with respect to the
Mortgaged Property. To the extent set forth in the related Prospectus
Supplement, the cost of any such insurance maintained by the Master Servicer
will be an expense of the Trust Fund payable out of the Collection Account. The
Master Servicer or, if so specified in the related Prospectus Supplement, the
Special Servicer, if any, will cause to be maintained fire and hazard insurance
with extended coverage on each REO Property in an amount specified in the
related Prospectus Supplement and expected to generally be equal to the greater
of (i) an amount necessary to avoid the application of any coinsurance clause
contained in the related insurance policy and (ii) 90% of the replacement cost
of the improvements which are a part of such property. Unless otherwise
specified in the related Prospectus Supplement, the cost of any such insurance
with respect to an REO Property will be an expense of the Trust Fund payable
out of amounts on deposit in the related REO Account or, if such amounts are
insufficient, from the Collection Account. The Master Servicer or, if so
specified in the related Prospectus Supplement, the Special Servicer, if any,
will maintain flood insurance providing substantially the same coverage as
described above on any REO Property which was located
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in a federally designated special flood hazard area at the time the related
Mortgage Loan was originated. The related Agreement may provide that the Master
Servicer or the Special Servicer, if any, as the case may be, may satisfy its
obligation to cause hazard policies to be maintained by maintaining a master,
or single interest, insurance policy insuring against losses on the Mortgage
Loans or REO Properties, as the case may be. The incremental cost of such
insurance allocable to any particular Mortgage Loan, if not borne by the
related Borrower, will be an expense of the Trust Fund unless otherwise
specified by the related Prospectus Supplement. Alternatively, the Master
Servicer may satisfy its obligation by maintaining, at its expense, a blanket
policy (i.e., not a single interest or master policy) insuring against losses
on the Mortgage Loans or REO Properties, as the case may be. If such a blanket
policy contains a deductible clause, the Master Servicer or the Special
Servicer, if any, as the case may be, will be obligated to deposit in the
Collection Account all sums which would have been deposited therein but for
such clause.
In general, the standard form of fire and hazard extended coverage policy
will cover physical damage to, or destruction of, the improvements on the
Mortgaged Property caused by fire, lightning, explosion, smoke, windstorm,
hail, riot, strike and civil commotion, subject to the conditions and
exclusions particularized in each policy. Since the standard hazard insurance
policies relating to the Mortgage Loans generally will be underwritten by
different insurers and will cover Mortgaged Properties located in various
jurisdictions, such policies will not contain identical terms and conditions.
The most significant terms thereof, however, generally will be determined by
state law and conditions. Most such policies typically will not cover any
physical damage resulting from war, revolution, governmental actions, floods
and other water-related causes, earth movement (including earthquakes,
landslides and mudflows), nuclear reaction, wet or dry rot, vermin, rodents,
insects or domestic animals, theft and, in certain cases, vandalism. The
foregoing list is merely indicative of certain kinds of uninsured risks and is
not intended to be all-inclusive. Any losses incurred with respect to Mortgage
Loans due to uninsured risks (including earthquakes, mudflows and floods) or
insufficient hazard insurance proceeds could affect distributions to the
Certificateholders.
The standard hazard insurance policies covering Mortgaged Properties
securing Mortgage Loans typically will contain a "coinsurance" clause which, in
effect, will require the insured at all times to carry insurance of a specified
percentage (generally 80% to 90%) of the full replacement value of the
dwellings, structures and other improvements on the Mortgaged Property in order
to recover the full amount of any partial loss. If the insured's coverage falls
below this specified percentage, such clause will typically provide that the
insurer's liability in the event of partial loss will not exceed the greater of
(i) the actual cash value (the replacement cost less physical depreciation) of
the structures and other improvements damaged or destroyed and (ii) such
proportion of the loss, without deduction for depreciation, as the amount of
insurance carried bears to the specified percentage of the full replacement
cost of such dwellings, structures and other improvements.
In addition, to the extent required by the related Mortgage, the Master
Servicer or Special Servicer, if any, may require the Borrower to maintain
other forms of insurance including, but not limited to, loss of rent
endorsements, business interruption insurance and comprehensive public
liability insurance, and the related Agreement may require the Master Servicer
or Special Servicer, if any, to maintain public liability insurance with
respect to any REO Properties. Any cost incurred by the Master Servicer or
Special Servicer, if any, in maintaining any such insurance policy will be
added to the amount owing under the Mortgage Loan where the terms of the
Mortgage Loan so permit; provided, however, that the addition of such cost will
not be taken into account for purposes of calculating the distribution to be
made to Certificateholders. Such costs may be recovered by the Master Servicer
and the Special Servicer, if any, from the Collection Account, with interest
thereon, as provided by the Agreement.
Unless otherwise specified in the related Prospectus Supplement, no pool
insurance policy, special hazard insurance policy, bankruptcy bond, repurchase
bond or guarantee insurance will be maintained with respect to the Mortgage
Loans.
FIDELITY BONDS AND ERRORS AND OMISSIONS INSURANCE
Unless otherwise specified in the related Prospectus Supplement, the
Agreement for each Series will require that the Master Servicer and the Special
Servicer, if any, obtain and maintain in effect a fidelity
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bond or similar form of insurance coverage (which may provide blanket coverage)
or any combination thereof insuring against loss occasioned by fraud, theft or
other intentional misconduct of the officers, employees and agents of the
Master Servicer or the Special Servicer, as the case may be. The related
Agreement may allow the Master Servicer and the Special Servicer, if any, to
self-insure against loss occasioned by the errors and omissions of the
officers, employees and agents of the Master Servicer or Special Servicer, as
the case may be, so long as certain criteria set forth in the Agreement are
met.
SERVICING COMPENSATION AND PAYMENT OF EXPENSES
The Master Servicer's principal compensation for its activities under the
Agreement for each Series will come from the payment to it or retention by it,
with respect to each payment of interest on a Mortgage Loan, of a "Servicing
Fee" (as defined in the related Prospectus Supplement). The exact amount or
method of calculating such Servicing Fee will be established in the Prospectus
Supplement and Agreement for the related Series. Since the aggregate unpaid
principal balance of the Mortgage Loans will generally decline over time, the
Master Servicer's servicing compensation will ordinarily decrease as the
Mortgage Loans amortize.
In addition, the Agreement for a Series may provide that the Master
Servicer will be entitled to receive, as additional compensation, (i)
Prepayment Premiums, late fees and certain other fees collected from Borrowers
and (ii) any interest or other income earned on funds deposited in the
Collection Account (as described under "DESCRIPTION OF THE CERTIFICATES --
Accounts") and, except to the extent such income is required to be paid to the
related Borrowers, the Escrow Account.
Unless otherwise specified in the related Prospectus Supplement, the
Master Servicer will pay the fees and expenses of the Trustee.
The exact amount or method of calculating the servicing fee of the Special
Servicer, if any, and the source from which such fee will be paid will be
described in the Prospectus Supplement for the related Series.
In addition to the compensation described above, the Master Servicer and
the Special Servicer, if any (or any other party specified in the related
Prospectus Supplement), may retain, or be entitled to the reimbursement of,
such other amounts and expenses as are described in the related Prospectus
Supplement.
ADVANCES
The related Prospectus Supplement will set forth the obligations, if any,
of the Master Servicer to make any advances ("Advances") with respect to
delinquent payments on Mortgage Loans, payments of taxes, insurance and
property protection expenses or otherwise. Any such Advances will be made in
the form and manner described in the Prospectus Supplement and Agreement for
the related Series. Unless otherwise specified in the related Prospectus
Supplement, the Master Servicer will be obligated to make such an Advance only
to the extent that the Master Servicer has determined that such Advance will be
recoverable. In the event that the Master Servicer determines that it is
required to make an Advance, it will, on or prior to the related Distribution
Date, deposit in the account specified in the Prospectus Supplement an amount
equal to such Advance. Any funds thus advanced, including Advances previously
made that the Master Servicer determines are not ultimately recoverable, are
reimbursable to the Master Servicer from amounts in the Collection Account to
the extent and in the manner described in the related Prospectus Supplement.
If a Borrower makes a principal payment between scheduled payment dates,
the Borrower may be required to pay interest on the prepayment amount only to
the date of prepayment. If and to the extent described in the related
Prospectus Supplement, the Master Servicer's Servicing Fee may be reduced or
the Master Servicer may be otherwise obligated to advance funds to the extent
necessary to remit interest on any such full or partial prepayment received
from the date of receipt thereof to the next succeeding scheduled payment date.
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MODIFICATIONS, WAIVERS AND AMENDMENTS
If so specified in the related Prospectus Supplement, the Agreement for
each Series will provide that the Master Servicer may have the discretion,
subject to certain conditions set forth therein, to modify, waive or amend
certain of the terms of any Mortgage Loan without the consent of the Trustee or
any Certificateholder. The extent to which the Master Servicer may modify,
waive or amend any terms of the Mortgage Loans without such consent will be
specified in the related Prospectus Supplement.
Subject to the terms and conditions set forth in the Agreement, the
Special Servicer, if any, may modify, waive or amend the terms of any Specially
Serviced Mortgage Loan if the Special Servicer determines that a material
default has occurred or a payment default has occurred or is reasonably
foreseeable. The Special Servicer, if any, may extend the maturity date of such
Mortgage Loan to a date not later than the date described in the related
Prospectus Supplement. The ability of the Special Servicer to modify, waive or
amend the terms of any Mortgage Loan may be subject to such additional
limitations, including approval requirements, as are set forth in the related
Prospectus Supplement.
Subject to the terms and conditions set forth in the Agreement, the
Special Servicer, if any, will not agree to any modification, waiver or
amendment of the payment terms of a Mortgage Loan unless the Special Servicer
has determined that such modification, waiver or amendment is reasonably likely
to produce a greater recovery on a present value basis than liquidation of the
Mortgage Loan or has made such other determination described in the related
Prospectus Supplement. Prior to agreeing to any such modification, waiver or
amendment of the payment terms of a Mortgage Loan, the Special Servicer, if
any, will give notice thereof in the manner set forth in the Prospectus
Supplement and Agreement for the related Series.
The Prospectus Supplement for a Series may describe other or different
provisions concerning the modification, waiver or amendment of the terms of the
related Mortgage Loans, including, without limitation, requirements for the
approval of an Operating Advisor.
EVIDENCE OF COMPLIANCE
The Agreement for each Series will provide that the Master Servicer and
the Special Servicer, if any, at their own expense, each will cause a firm of
independent public accountants to furnish to the Trustee, annually on or before
a date specified in the Agreement, a statement as to compliance with the
Agreement by the Master Servicer or Special Servicer, as the case may be.
In addition, the Agreement will provide that the Master Servicer and the
Special Servicer, if any, each will deliver to the Trustee, annually on or
before a date specified in the Agreement, a statement signed by an officer to
the effect that, based on a review of its activities during the preceding
calendar year, to the best of such officer's knowledge, the Master Servicer or
Special Servicer, as the case may be, has fulfilled its obligations under the
Agreement throughout such year or, if there has been a default in the
fulfillment of any such obligation, specifying each such default and the nature
and status thereof, and, in the case of a Series of Certificates as to which a
REMIC or FASIT election has been made, whether the Master Servicer or the
Special Servicer, as the case may be, has received a challenge from the
Internal Revenue Service as to the status of the Trust Fund as a REMIC or
FASIT.
CERTAIN MATTERS WITH RESPECT TO THE MASTER SERVICER, THE SPECIAL SERVICER AND
THE TRUSTEE
Unless otherwise specified in the related Prospectus Supplement, the
Agreement for each Series will provide that neither the Master Servicer nor the
Special Servicer, if any, nor any of their directors, officers, employees or
agents will be under any liability to the Trust Fund or the Certificateholders
for any action taken, or for refraining from the taking of any action, in good
faith pursuant to the Agreement, or for errors in judgment; provided, however,
that neither the Master Servicer nor the Special Servicer, if any, nor any such
person will be protected against any breach of representations or warranties
made by the Master Servicer or the Special Servicer, as the case may be, in the
Agreement, against any specific liability imposed on the Master Servicer or the
Special Servicer, as the case may be, pursuant to the Agreement, or any
liability that would otherwise be imposed by reason of willful misfeasance, bad
faith,
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or negligence in the performance of its duties or by reason of reckless
disregard of its obligations and duties thereunder. The Agreement will further
provide that the Master Servicer, the Special Servicer, if any, and any of
their directors, officers, employees or agents will be entitled to
indemnification by the Trust Fund and will be held harmless against any loss,
liability or expense incurred in connection with any legal action relating to
the Agreement or the Certificates, other than any loss, liability or expense
incurred (i) by reason of willful misfeasance, bad faith or negligence in the
performance of their duties or by reason of reckless disregard of their
obligations and duties thereunder or (ii) in certain other circumstances
specified in the Agreement. Any loss resulting from such indemnification will
reduce amounts distributable to Certificateholders and, unless otherwise
provided in the related Prospectus Supplement, will be borne pro rata by all
Certificateholders without regard to subordination, if any, of one Class to
another.
Unless otherwise provided in the related Prospectus Supplement, neither
the Master Servicer nor the Special Servicer, if any, may resign from its
obligations and duties under the Agreement except upon a determination that its
performance of its duties thereunder is no longer permissible under applicable
law. No such resignation of the Master Servicer will become effective until the
Trustee or a successor Master Servicer has assumed the Master Servicer's
obligations and duties under the Agreement. No such resignation of a Special
Servicer will become effective until the Trustee, the Master Servicer or a
successor Special Servicer has assumed the Special Servicer's obligations and
duties under the Agreement.
The Trustee under each Agreement will be named in the related Prospectus
Supplement. The commercial bank or trust company serving as Trustee may have
normal banking relationships with the Seller, the Master Servicer, the Special
Servicer, if any, and their respective affiliates.
Unless otherwise specified in the related Prospectus Supplement, the
Trustee may resign from its obligations under the Agreement at any time, in
which event a successor Trustee will be appointed. In addition, the Seller may
remove the Trustee if the Trustee ceases to be eligible to act as Trustee under
the Agreement or if the Trustee becomes insolvent, at which time the Seller
will become obligated to appoint a successor Trustee. The Trustee also may be
removed at any time by the Holders of Certificates evidencing the Voting Rights
specified in the related Prospectus Supplement. Any resignation and removal of
the Trustee, and the appointment of a successor Trustee, will not become
effective until acceptance of such appointment by the successor Trustee.
EVENTS OF DEFAULT
Unless otherwise provided in the related Prospectus Supplement, events of
default (each, an "Event of Default") with respect to the Master Servicer and
the Special Servicer, if any, under the Agreement for each Series will include:
(i) with respect to the Master Servicer, any failure by the Master Servicer to
deposit in the Collection Account or remit to the Trustee for deposit in the
Distribution Account for distribution to Certificateholders any payment
required to be made by the Master Servicer under the terms of the Agreement on
the day required pursuant to the terms of the Agreement; (ii) with respect to
the Special Servicer, if any, any failure by the Special Servicer to remit to
the Master Servicer for deposit in the Collection Account on the day required
any amounts received by it in respect of a Specially Serviced Mortgage Loan and
required to be so remitted; (iii) with respect to the Master Servicer and the
Special Servicer, if any, any failure on the part of the Master Servicer or the
Special Servicer, as the case may be, duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Master Servicer or the Special Servicer, as the case may be, which failure
continues unremedied for a period of 90 days after written notice of such
failure has been given to the Master Servicer or the Special Servicer, as the
case may be; (iv) with respect to the Master Servicer or the Special Servicer,
if any, the entering against the Master Servicer or the Special Servicer, as
the case may be, of a decree or order of a court, agency or supervisory
authority for the appointment of a conservator or receiver or liquidator in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs,
provided that any such decree or order shall have remained in force
undischarged or unstayed for a period of 60 days; (v) with respect to the
Master Servicer or the Special Servicer, if any, the consent by the Master
Servicer or the Special
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Servicer, as the case may be, to the appointment of a conservator or receiver
or liquidator or liquidating committee in any insolvency, readjustment of debt,
marshalling of assets and liabilities, voluntary liquidation or similar
proceedings of or relating to it or of or relating to all or substantially all
of its property; and (vi) with respect to the Master Servicer or the Special
Servicer, if any, the admission by the Master Servicer or Special Servicer, as
the case may be, in writing of its inability to pay its debts generally as they
become due, the filing by the Master Servicer or the Special Servicer, as the
case may be, of a petition to take advantage of any applicable insolvency or
reorganization statute or the making of an assignment for the benefit of its
creditors or the voluntary suspension of the payment of its obligations.
As long as an Event of Default remains unremedied, the Trustee may, and as
long as an Event of Default remains unremedied or under certain other
circumstances, if any, described in the related Prospectus Supplement at the
written direction of the Holders of Certificates holding at least the
percentage specified in the Prospectus Supplement of all of the Voting Rights
of the Class or Classes specified therein shall, by written notice to the
Master Servicer or Special Servicer, as the case may be, terminate all of the
rights and obligations of the Master Servicer or the Special Servicer, as the
case may be, whereupon the Trustee or another successor Master Servicer or
Special Servicer appointed by the Trustee will succeed to all authority and
power of the Master Servicer or Special Servicer under the Agreement and will
be entitled to similar compensation arrangements. "Voting Rights" means the
portion of the voting rights of all Certificates that is allocated to any
Certificate in accordance with the terms of the Agreement.
CREDIT ENHANCEMENT
GENERAL
If specified in the related Prospectus Supplement for any Series, credit
enhancement may be provided with respect to one or more Classes thereof or the
related Mortgage Loans (the "Credit Enhancement"). Credit Enhancement may be in
the form of the subordination of one or more Classes of the Certificates of
such Series, the establishment of one or more reserve funds,
overcollateralization, a letter of credit, certificate guarantee insurance
policies, the use of cross-support features or another method of Credit
Enhancement described in the related Prospectus Supplement, or any combination
of the foregoing.
Unless otherwise specified in the related Prospectus Supplement for a
Series, the Credit Enhancement will not provide protection against all risks of
loss and will not guarantee repayment of the entire principal balance of the
Certificates and interest thereon. If losses occur which exceed the amount
covered by Credit Enhancement or which are not covered by the Credit
Enhancement, Certificateholders will bear their allocable share of
deficiencies.
If Credit Enhancement is provided with respect to a Series, or the related
Mortgage Loans, the related Prospectus Supplement will include a description of
(a) the amount payable under such Credit Enhancement, (b) any conditions to
payment thereunder not otherwise described herein, (c) the conditions (if any)
under which the amount payable under such Credit Enhancement may be reduced and
under which such Credit Enhancement may be terminated or replaced and (d) the
material provisions of any agreement relating to such Credit Enhancement.
Additionally, the related Prospectus Supplement will set forth certain
information with respect to the issuer of any third-party Credit Enhancement,
including (i) a brief description of its principal business activities, (ii)
its principal place of business, place of incorporation and the jurisdiction
under which it is chartered or licensed to do business, (iii) if applicable,
the identity of regulatory agencies which exercise primary jurisdiction over
the conduct of its business and (iv) its total assets, and its stockholders' or
policyholders' surplus, if applicable, as of the date specified in such
Prospectus Supplement. In addition, if the Certificateholders of such Series
will be materially dependent upon any provider of Credit Enhancement for timely
payment of interest and/or principal on their Certificates, the related
Prospectus Supplement will include audited financial statements on a
comparative basis for at least the prior two years and any other appropriate
financial information regarding such provider.
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SUBORDINATE CERTIFICATES
If so specified in the related Prospectus Supplement, one or more Classes
of a Series may be subordinate Certificates. If so specified in the related
Prospectus Supplement, the rights of the Holders of subordinate Certificates
(the "Subordinate Certificates") to receive distributions of principal and
interest on any Distribution Date will be subordinated to such rights of the
Holders of senior Certificates (the "Senior Certificates") to the extent
specified in the related Prospectus Supplement. The Agreement may require a
trustee that is not the Trustee to be appointed to act on behalf of Holders of
Subordinate Certificates.
A Series may include one or more Classes of Senior Certificates entitled
to receive cash flows remaining after distributions are made to all other
Senior Certificates of such Series. Such right to receive payments will
effectively be subordinate to the rights of other Holders of Senior
Certificates. A Series also may include one or more Classes of Subordinate
Certificates entitled to receive cash flows remaining after distributions are
made to other Subordinate Certificates of such Series. If so specified in the
related Prospectus Supplement, the subordination of a Class may apply only in
the event of (or may be limited to) certain types of losses not covered by
insurance policies or other credit support, such as losses arising from damage
to property securing a Mortgage Loan not covered by standard hazard insurance
policies.
The related Prospectus Supplement will set forth information concerning
the amount of subordination of a Class or Classes of Subordinate Certificates
in a Series, the circumstances in which such subordination will be applicable,
the manner, if any, in which the amount of subordination will decrease over
time, the manner of funding any related Reserve Fund and the conditions under
which amounts in any applicable Reserve Fund will be used to make distributions
to Holders of Senior Certificates and/or to Holders of Subordinate Certificates
or be released from the applicable Trust Fund.
CROSS-SUPPORT FEATURES
If the Mortgage Pool for a Series is divided into separate Mortgage Loan
Groups, each backing a separate Class or Classes of a Series, credit support
may be provided by a cross-support feature which requires that distributions be
made on Senior Certificates backed by one Mortgage Loan Group prior to
distributions on Subordinate Certificates backed by another Mortgage Loan Group
within the Trust Fund. The related Prospectus Supplement for a Series which
includes a cross-support feature will describe the manner and conditions for
applying such cross-support feature.
LETTER OF CREDIT
If specified in the related Prospectus Supplement, a letter of credit with
respect to a Series of Certificates will be issued by the bank or financial
institution specified in such Prospectus Supplement (the "Letter of Credit
Bank"). Under the letter of credit, the Letter of Credit Bank will be obligated
to honor drawings thereunder in an aggregate fixed dollar amount, net of
unreimbursed payments thereunder, equal to the percentage specified in the
related Prospectus Supplement of the aggregate principal balance of the
Mortgage Loans on the applicable Cut-Off Date or of one or more Classes of
Certificates (the "Letter of Credit Percentage"). If so specified in the
related Prospectus Supplement, the letter of credit may permit drawings in the
event of losses not covered by insurance policies or other credit support, such
as losses arising from damage not covered by standard hazard insurance
policies. The amount available under the letter of credit will, in all cases,
be reduced to the extent of the unreimbursed payments thereunder. The
obligations of the Letter of Credit Bank under the letter of credit for any
Series of Certificates will expire at the earlier of the date specified in the
related Prospectus Supplement or the termination of the Trust Fund. A copy of
the letter of credit for a Series, if any, will be filed with the Commission as
an exhibit to a Current Report on Form 8-K to be filed within 15 days of
issuance of the Certificates of the applicable Series.
CERTIFICATE GUARANTEE INSURANCE
If so specified in the related Prospectus Supplement, certificate
guarantee insurance, if any, with respect to a Series of Certificates will be
provided by one or more insurance companies. Such certificate
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guarantee insurance will guarantee, with respect to one or more Classes of
Certificates of the applicable Series, timely distributions of interest and
principal to the extent set forth in or determined in the manner specified in
the related Prospectus Supplement. If so specified in the related Prospectus
Supplement, the certificate guarantee insurance will also guarantee against any
payment made to a Certificateholder which is subsequently covered as a
"voidable preference" payment under the Bankruptcy Code. A copy of the
certificate guarantee insurance policy for a Series, if any, will be filed with
the Commission as an exhibit to a Current Report on Form 8-K to be filed with
the Commission within 15 days of issuance of the Certificates of the applicable
Series.
RESERVE FUNDS
If specified in the related Prospectus Supplement, one or more reserve
funds (each, a "Reserve Fund") may be established with respect to a Series, in
which cash, a letter of credit, Permitted Investments or a combination thereof,
in the amounts, if any, specified in the related Prospectus Supplement will be
deposited. The Reserve Funds for a Series may also be funded over time by
depositing therein a specified amount of the distributions received on the
applicable Mortgage Loans if specified in the related Prospectus Supplement.
The Seller may pledge the Reserve Funds to a separate collateral agent
specified in the related Prospectus Supplement.
Amounts on deposit in any Reserve Fund for a Series, together with the
reinvestment income thereon, if any, will be applied by the Trustee for the
purposes, in the manner, and to the extent specified in the related Prospectus
Supplement. A Reserve Fund may be provided to increase the likelihood of timely
payments of principal of, and interest on, the Certificates, if required as a
condition to the rating of such Series by each Rating Agency. If so specified
in the related Prospectus Supplement, Reserve Funds may be established to
provide limited protection, in an amount satisfactory to each Rating Agency,
against certain types of losses not covered by insurance policies or other
credit support, such as losses arising from damage not covered by standard
hazard insurance policies. Reserve Funds also may be established for other
purposes and in such amounts as will be specified in the related Prospectus
Supplement. Following each Distribution Date amounts in any Reserve Fund in
excess of any amount required to be maintained therein may be released from the
Reserve Fund under the conditions and to the extent specified in the related
Prospectus Supplement and will not be available for further application by the
Trustee.
Moneys deposited in any Reserve Fund will be invested in Permitted
Investments at the direction of the Seller, except as otherwise specified in
the related Prospectus Supplement. Unless otherwise specified in the related
Prospectus Supplement, any reinvestment income or other gain from such
investments will be credited to the related Reserve Fund for such Series, and
any loss resulting from such investments will be charged to such Reserve Fund.
If specified in the related Prospectus Supplement, such income or other gain
may be payable to the Master Servicer as additional servicing compensation, and
any loss resulting from such investment will be borne by the Master Servicer.
The Reserve Fund, if any, for a Series will not be a part of the Trust Fund
unless otherwise specified in the related Prospectus Supplement, but the right
of the Trustee to make draws on the Reserve Fund will be an asset of the Trust
Fund.
Additional information concerning any Reserve Fund will be set forth in
the related Prospectus Supplement, including the initial balance of such
Reserve Fund, the balance required to be maintained in the Reserve Fund, the
manner in which such required balance will decrease over time, the manner of
funding such Reserve Fund, the purpose for which funds in the Reserve Fund may
be applied to make distributions to Certificateholders and use of investment
earnings from the Reserve Fund, if any.
SWAP AGREEMENT
If so specified in the Prospectus Supplement relating to a Series of
Certificates, the Trust Fund will enter into or obtain an assignment of a swap
agreement pursuant to which the Trust Fund will have the right to receive, and
may have the obligation to make, certain payments of interest (or other
payments) as set forth or determined as described therein. The Prospectus
Supplement relating to a Series of
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Certificates having the benefit of an interest rate swap agreement will
describe the material terms of such agreement and the particular risks
associated with the interest rate swap feature, including market and credit
risk, the effect of counterparty defaults and other risks, if any. The
Prospectus Supplement relating to such Series of Certificates also will set
forth certain information relating to the corporate status, ownership and
credit quality of the counterparty or counterparties to such swap agreement. In
addition, if the Certificateholders of such Series will be materially dependent
upon any counterparty for timely payment of interest and/or principal on their
Certificates, the related Prospectus Supplement will include audited financial
statements on a comparative basis for at least the prior two years and any
other appropriate financial information regarding such counterparty. A swap
agreement may include one or more of the following types of arrangements, or
another arrangement described in the related Prospectus Supplement.
Interest Rate Swap. In an interest rate swap, the Trust Fund will exchange
the stream of interest payments on the Mortgage Loans for another stream of
interest payments based on a notional amount, which may be equal to the
principal amount of the Mortgage Loans as it declines over time.
Interest Rate Caps. In an interest rate cap, the Trust Fund or the swap
counterparty, in exchange for a fee, will agree to compensate the other if a
particular interest rate index rises above a rate specified in the swap
agreement. The fee for the cap may be a single up-front payment to or from the
Trust Fund, or a series of payments over time.
Interest Rate Floors. In an interest rate floor, the Trust Fund or the
swap counterparty, in exchange for a fee, will agree to compensate the other if
a particular interest rate index falls below a rate or level specified in the
swap agreement. As with interest rate caps, the fee may be a single up-front
payment or it may be paid periodically.
Interest Rate Collars. An interest rate collar is a combination of an
interest rate cap and an interest rate floor. One party agrees to compensate
the other if a particular interest rate index rises above the cap and, in
exchange, will be compensated if the interest rate index falls below the floor.
YIELD CONSIDERATIONS
GENERAL
The yield to maturity on any Class of Offered Certificates will depend
upon, among other things, the price at which such Certificates are purchased,
the amount and timing of any delinquencies and losses incurred by such Class,
the rate and timing of payments of principal on the Mortgage Loans, and the
amount and timing of recoveries and Insurance Proceeds from REO Mortgage Loans
and related REO Properties, which, in turn, will be affected by the
amortization schedules of the Mortgage Loans, the timing of principal payments
(particularly Balloon Payments) on the related Mortgage Loans (including delay
in such payments resulting from modifications and extensions), the rate of
principal prepayments, including prepayments by Borrowers and prepayments
resulting from defaults, repurchases arising in connection with certain
breaches of the representations and warranties made in the Agreement and the
exercise of the right of optional termination of the Trust Fund. Generally,
prepayments on the Mortgage Loans will tend to shorten the weighted average
lives of each Class of Certificates, whereas delays in liquidations of
defaulted Mortgage Loans and modifications extending the maturity of Mortgage
Loans will tend to lengthen the weighted average lives of each Class of
Certificates. See "CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS --
Enforceability of Certain Provisions" for a description of certain provisions
of each Agreement and statutory, regulatory and judicial developments that may
affect the prepayment experience and maturity assumptions on the Mortgage
Loans.
PREPAYMENT AND MATURITY ASSUMPTIONS
The related Prospectus Supplement may indicate that the related Mortgage
Loans may be prepaid in full or in part at any time, generally without
prepayment premium. Alternatively, a Trust Fund may include Mortgage Loans that
have significant restrictions on the ability of a Borrower to prepay without
incurring a prepayment premium or to prepay at all. As described above, the
prepayment experience of
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the Mortgage Loans will affect the weighted average life of the Offered
Certificates. A number of factors may influence prepayments on multifamily and
commercial loans, including enforceability of due-on-sale clauses, prevailing
mortgage market interest rates and the availability of mortgage funds, changes
in tax laws (including depreciation benefits for income-producing properties),
changes in Borrowers' net equity in the Mortgaged Properties, servicing
decisions, prevailing general economic conditions and the relative economic
vitality of the areas in which the Mortgaged Properties are located, the terms
of the Mortgage Loans (for example, the existence of due-on-sale clauses), the
quality of management of any income-producing Mortgaged Properties and, in the
case of Mortgaged Properties held for investment, the availability of other
opportunities for investment. A number of factors may discourage prepayments on
multifamily loans and commercial loans, including the existence of any lockout
or prepayment premium provisions in the underlying Note. A lockout provision
prevents prepayment within a certain time period after origination. A
prepayment premium imposes an additional charge on a borrower who wishes to
prepay. Some of the Mortgage Loans may have substantial principal balances due
at their stated maturities ("Balloon Payments"). Balloon Payments involve a
greater degree of risk than fully amortizing loans because the ability of the
Borrower to make a Balloon Payment typically will depend upon its ability
either to refinance the loan or to sell the related Mortgaged Property. The
ability of a Borrower to accomplish either of these goals will be affected by a
number of factors, including the level of available mortgage rates at the time
of the attempted sale or refinancing, the Borrower's equity in the related
Mortgaged Property, the financial condition of the Borrower and operating
history of the related Mortgaged Property, tax laws, prevailing economic
conditions and the availability of credit for commercial real estate projects
generally. See "CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS -- Enforceability
of Certain Provisions."
If the purchaser of a Certificate offered at a discount calculates its
anticipated yield to maturity based on an assumed rate of distributions of
principal that is faster than that actually experienced on the Mortgage Loans,
the actual yield to maturity will be lower than that so calculated. Conversely,
if the purchaser of a Certificate offered at a premium calculates its
anticipated yield to maturity based on an assumed rate of distributions of
principal that is slower than that actually experienced on the Mortgage Loans,
the actual yield to maturity will be lower than that so calculated. In either
case, the effect of voluntary and involuntary prepayments of the Mortgage Loans
on the yield on one or more Classes of the Certificates of such Series in the
related Trust Fund may be mitigated or exacerbated by any provisions for
sequential or selective distribution of principal to such Classes.
The timing of changes in the rate of principal payments on the Mortgage
Loans may significantly affect an investor's actual yield to maturity, even if
the average rate of distributions of principal is consistent with an investor's
expectation. In general, the earlier a principal payment is received on the
Mortgage Loans and distributed on a Certificate, the greater the effect on such
investor's yield to maturity. The effect of an investor's yield of principal
payments occurring at a rate higher (or lower) than the rate anticipated by the
investor during a given period may not be offset by a subsequent like decrease
(or increase) in the rate of principal payments.
The weighted average life of a Certificate refers to the average amount of
time that will elapse from the date of issuance of the Certificate until each
dollar of principal is repaid to the Certificateholders. The weighted average
life of the Offered Certificates will be influenced by the rate at which
principal on the Mortgage Loans is paid, which may be in the form of scheduled
amortization or prepayments. Prepayments on mortgage loans are commonly
measured relative to a prepayment standard or model. The model used in any
Prospectus Supplement, unless otherwise indicated therein, represents an
assumed constant rate of prepayment each month relative to the then outstanding
principal balance of a pool of new mortgage loans.
There can be no assurance that the Mortgage Loans will prepay at any rate
mentioned in any Prospectus Supplement. In general, if prevailing interest
rates fall below the Mortgage Interest Rates on the Mortgage Loans, the rate of
prepayment can be expected to increase.
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CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS
The following discussion contains summaries of certain legal aspects of
mortgage loans which are general in nature. Because many of the legal aspects
of mortgage loans are governed by the laws of the jurisdictions where the
related mortgaged properties are located (which laws may vary substantially),
the following summaries do not purport to be complete, to reflect the laws of
any particular jurisdiction, to reflect all the laws applicable to any
particular Mortgage Loan or to encompass the laws of all jurisdictions in which
the properties securing the Mortgage Loans are situated. In the event that the
Trust Fund for a given Series includes Mortgage Loans having material
characteristics other than as described below, the related Prospectus
Supplement will set forth additional legal aspects relating thereto.
MORTGAGES AND DEEDS OF TRUST GENERALLY
The Mortgage Loans (other than financial leases and Installment Contracts)
included in the Mortgage Pool for a Series will consist of loans secured by
either mortgages or deeds of trust or other similar security instruments. There
are two parties to a mortgage, the mortgagor, who is the borrower and owner of
the mortgaged property, and the mortgagee, who is the lender. In a mortgage
transaction, the mortgagor delivers to the mortgagee a note, bond or other
written evidence of indebtedness and a mortgage. A mortgage creates a lien upon
the real property encumbered by the mortgage as security for the obligation
evidenced by the note, bond or other evidence of indebtedness. Although a deed
of trust is similar to a mortgage, a deed of trust has three parties, the
borrower-property owner called the trustor (similar to a mortgagor), a lender
called the beneficiary (similar to a mortgagee), and a third-party grantee
called the trustee. Under a deed of trust, the borrower irrevocably grants the
property to the trustee, until the debt is paid, in trust for the benefit of
the beneficiary to secure payment of the obligation generally with a power of
sale. The trustee's authority under a deed of trust and the mortgagee's
authority under a mortgage are governed by applicable law, the express
provisions of the deed of trust or mortgage, and, in some cases, the directions
of the beneficiary.
The real property covered by a mortgage is most often the fee estate in
land and improvements. However, a mortgage may encumber other interests in real
property such as a tenant's interest in a lease of land or improvements, or
both, and the leasehold estate created by such lease. A mortgage covering an
interest in real property other than the fee estate requires special provisions
in the instrument creating such interest or in the mortgage to protect the
mortgagee against termination of such interest before the mortgage is paid.
Certain representations and warranties in the related Agreement will be made
with respect to the Mortgage Loans which are secured by an interest in a
leasehold estate.
Priority of the lien on mortgaged property created by mortgages and deeds
of trust depends on their terms and, generally, on the order of filing with a
state, county or municipal office, although such priority may in some states be
altered by the mortgagee's or beneficiary's knowledge of unrecorded liens,
leases or encumbrances against the mortgaged property. However, filing or
recording does not establish priority over governmental claims for real estate
taxes and assessments or, in some states, for reimbursement of remediation
costs of certain environmental conditions. See "-- Environmental Risks." In
addition, the Code provides priority to certain tax liens over the lien of the
mortgage.
INSTALLMENT CONTRACTS
The Mortgage Loans included in the Mortgage Pool for a Series may also
consist of Installment Contracts. Under an Installment Contract the seller
(hereinafter referred to in this Section as the "lender") retains legal title
to the property and enters into an agreement with the purchaser (hereinafter
referred to in this Section as the "borrower") for the payment of the purchase
price, plus interest, over the term of such contract. Only after full
performance by the borrower of the contract is the lender obligated to convey
title to the real estate to the purchaser. As with mortgage or deed of trust
financing, during the effective period of the Installment Contract, the
borrower generally is responsible for maintaining the property in good
condition and for paying real estate taxes, assessments and hazard insurance
premiums associated with the property.
The method of enforcing the rights of the lender under an Installment
Contract varies on a state-by-state basis depending upon the extent to which
state courts are willing, or able pursuant to state
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statute, to enforce the contract strictly according to its terms. The terms of
Installment Contracts generally provide that upon a default by the borrower,
the borrower loses his or her right to occupy the property, the entire
indebtedness is accelerated, and the buyer's equitable interest in the property
is forfeited. The lender in such a situation does not have to foreclose in
order to obtain title to the property, although in some cases a quiet title
action is in order if the borrower has filed the Installment Contract in local
land records and an ejectment action may be necessary to recover possession. In
a few states, particularly in cases of borrower default during the early years
of an Installment Contract, the courts will permit ejectment of the buyer and a
forfeiture of his or her interest in the property. However, most state
legislatures have enacted provisions by analogy to mortgage law protecting
borrowers under Installment Contracts from the harsh consequences of
forfeiture. Under such statutes, a judicial or nonjudicial foreclosure may be
required, the lender may be required to give notice of default and the borrower
may be granted some grace period during which the contract may be reinstated
upon full payment of the default amount and the borrower may have a
post-foreclosure statutory redemption right. In other states, courts in equity
may permit a borrower with significant investment in the property under an
Installment Contract for the sale of real estate to share in the proceeds of
sale of the property after the indebtedness is repaid or may otherwise refuse
to enforce the forfeiture clause. Nevertheless, generally speaking, the
lender's procedures for obtaining possession and clear title under an
Installment Contract for the sale of real estate in a given state are simpler
and less time-consuming and costly than are the procedures for foreclosing and
obtaining clear title to a mortgaged property.
FINANCIAL LEASES
The Mortgage Loans included in the Mortgage Pool for a Series also may
consist of financial leases. Under a financial lease on real property, the
lessor retains legal title to the leased property and enters into an agreement
with the lessee (hereinafter referred to in this Section as the "lessee") under
which the lessee makes lease payments approximately equal to the principal and
interest payments that would be required on a mortgage note for a loan covering
the same property. Title to the real estate typically is conveyed to the lessee
at the end of the lease term for a price approximately equal to the remaining
unfinanced equity, determined by reference to the unpaid principal amount,
market value, or another method specified in the related agreement. As with
Installment Contracts, the lessee generally is responsible for maintaining the
property in good condition and for paying real estate taxes, assessments and
hazard insurance premiums associated with the property during the lease term.
The related Prospectus Supplement will describe the specific legal incidents of
any financial leases that are included in the Mortgage Pool for a Series.
RIGHTS OF MORTGAGEES OR BENEFICIARIES
The form of the mortgage or deed of trust used by many institutional
lenders confers on the mortgagee or beneficiary the right both to receive all
proceeds collected under any hazard insurance policy and all awards made in
connection with any condemnation proceedings, and to apply such proceeds and
awards to any indebtedness secured by the mortgage or deed of trust, in such
order as the mortgagee or beneficiary may determine. Thus, in the event
improvements on the property are damaged or destroyed by fire or other
casualty, or in the event the property is taken by condemnation, the mortgagee
or beneficiary under the senior mortgage or deed of trust will have the prior
right to collect any insurance proceeds payable under a hazard insurance policy
and any award of damages in connection with the condemnation and to apply the
same to the indebtedness secured by the senior mortgage or deed of trust.
Proceeds in excess of the amount of senior mortgage indebtedness will, in most
cases, be applied to the indebtedness of a junior mortgage or trust deed, if
any. The laws of certain states may limit the ability of mortgagees or
beneficiaries to apply the proceeds of hazard insurance and partial
condemnation awards to the secured indebtedness. In such states, the mortgagor
or trustor must be allowed to use the proceeds of hazard insurance to repair
the damage unless the security of the mortgagee or beneficiary has been
impaired. Similarly, in certain states, the mortgagee or beneficiary is
entitled to the award for a partial condemnation of the real property security
only to the extent that its security is impaired.
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The form of mortgage or deed of trust used by many institutional lenders
typically contains a "future advance" clause, which provides, in essence, that
additional amounts advanced to or on behalf of the mortgagor or trustor by the
mortgagee or beneficiary are to be secured by the mortgage or deed of trust.
While such a clause is valid under the laws of most states, the priority of any
advance made under the clause depends, in some states, on whether the advance
was an "obligatory" or "optional" advance. If the mortgagee or beneficiary is
obligated to advance the additional amounts, the advance may be entitled to
receive the same priority as amounts initially made under the mortgage or deed
of trust, notwithstanding that there may be intervening junior mortgages or
deeds of trust and other liens between the date of recording of the mortgage or
deed of trust and the date of the future advance, and notwithstanding that the
mortgagee or beneficiary had actual knowledge of such intervening junior
mortgages or deeds of trust and other liens at the time of the advance. Where
the mortgagee or beneficiary is not obligated to advance the additional amounts
and has actual knowledge of the intervening junior mortgages or deeds of trust
and other liens, the advance may be subordinate to such intervening junior
mortgages or deeds of trust and other liens. Priority of advances under a
"future advance" clause rests, in many other states, on state law giving
priority to all advances made under the related loan agreement up to a "credit
limit" amount stated in the recorded mortgage.
Another provision typically found in the form of the mortgage or deed of
trust used by many institutional lenders obligates the mortgagor or trustor to
pay before delinquency all taxes and assessments on the property and, when due,
all encumbrances, charges and liens on the property which appear prior to the
mortgage or deed of trust, to provide and maintain fire insurance on the
property, to maintain and repair the property and not to commit or permit any
waste thereof, and to appear in and defend any action or proceeding purporting
to affect the property or the rights of the mortgagee or beneficiary under the
mortgage or deed of trust. Upon a failure of the mortgagor or trustor to
perform any of these obligations, the mortgagee or beneficiary is given the
right under the mortgage or deed of trust to perform the obligation itself, at
its election, with the mortgagor or trustor agreeing to reimburse the mortgagee
or beneficiary for any sums expended by the mortgagee or beneficiary on behalf
of the trustor. All sums so expended by the mortgagee or beneficiary become
part of the indebtedness secured by the mortgage or deed of trust.
The form of mortgage or deed of trust used by many institutional lenders
typically requires the mortgagor or trustor to obtain the consent of the
mortgagee or beneficiary in respect of actions affecting the mortgaged
property, including, without limitation, leasing activities (including new
leases and termination or modification of existing leases), alterations and
improvements to buildings forming a part of the mortgaged property and
management and leasing agreements for the mortgaged property. Tenants will
often refuse to execute a lease unless the mortgagee or beneficiary executes a
written agreement with the tenant not to disturb the tenant's possession of its
premises in the event of a foreclosure. A senior mortgagee or beneficiary may
refuse to consent to matters approved by a junior mortgagee or beneficiary with
the result that the value of the security for the junior mortgage or deed of
trust is diminished. For example, a senior mortgagee or beneficiary may decide
not to approve a lease or to refuse to grant to a tenant a non-disturbance
agreement. If, as a result, the lease is not executed, the value of the
mortgaged property may be diminished.
FORECLOSURE
Foreclosure of a mortgage is generally accomplished by judicial action
initiated by the service of legal pleadings upon all necessary parties having
an interest in the real property. Delays in completion of foreclosure may
occasionally result from difficulties in locating such necessary parties. When
the mortgagee's right to foreclose is contested, the legal proceedings
necessary to resolve the issue can be time consuming. A judicial foreclosure
may be subject to most of the delays and expenses of other litigation,
sometimes requiring up to several years to complete. At the completion of the
judicial foreclosure proceedings, if the mortgagee prevails, the court
ordinarily issues a judgment of foreclosure and appoints a referee or other
designated official to conduct the sale of the property. Such sales are made in
accordance with procedures which vary from state to state. The purchaser at
such sale acquires
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the estate or interest in real property covered by the mortgage. If the
mortgage covered the tenant's interest in a lease and leasehold estate, the
purchaser will acquire such tenant's interest subject to the tenant's
obligations under the lease to pay rent and perform other covenants contained
therein.
In a majority of cases, foreclosure of a deed of trust is accomplished by
a non-judicial trustee's sale under a specific provision in the deed of trust
and/or applicable statutory requirements which authorizes the trustee,
generally following a request from the beneficiary/lender, to sell the property
at public sale upon any default by the borrower under the terms of the note or
deed of trust. A number of states may also require that a lender provide notice
of acceleration of a note to the borrower. Notice requirements under a
trustee's sale vary from state to state. In some states, prior to the trustee's
sale the trustee must record a notice of default and send a copy to the
borrower-trustor, to any person who has recorded a request for a copy of a
notice of default and notice of sale and to any successor in interest to the
trustor. In addition, the trustee must provide notice in some states to any
other person having an interest in the real property, including any junior
lienholders, and to certain other persons connected with the deed of trust. In
some states, the borrower, or any other person having a junior encumbrance on
the real estate, may, during a reinstatement period, cure the default by paying
the entire amount in arrears plus the costs and expenses (in some states,
limited to reasonable costs and expenses) incurred in enforcing the obligation.
Generally, state law controls the amount of foreclosure expenses and costs,
including attorneys' fees, which may be recovered by a lender. If the deed of
trust is not reinstated, a notice of sale must be posted in a public place and,
in most states, published for a specific period of time in one or more
newspapers. In addition, some state laws require that a copy of the notice of
sale be posted on the property and sent to all parties having an interest in
the real property.
In case of foreclosure under either a mortgage or a deed of trust, the
sale by the referee or other designated official or by the trustee is often a
public sale. However, because of the difficulty a potential buyer at the sale
might have in determining the exact status of title to the property subject to
the lien of the mortgage or deed of trust and the redemption rights that may
exist (see "-- Rights of Redemption" below), and because the physical condition
and financial performance of the property may have deteriorated during the
foreclosure proceedings and/or for a variety of other reasons, a third party
may be unwilling to purchase the property at the foreclosure sale. Some states
require that the lender disclose to potential bidders at a trustee's sale all
known facts materially affecting the value of the property. Such disclosure may
have an adverse effect on the trustee's ability to sell the property or the
sale price thereof. Potential buyers may further question the prudence of
purchasing property at a foreclosure sale as a result of the 1980 decision of
the United States Court of Appeals for the Fifth Circuit in Durrett v.
Washington National Insurance Company and other decisions that have followed
the reasoning of Durrett with respect to fraudulent conveyances under
applicable bankruptcy law. In Durrett and its progeny, the Fifth Circuit and
other courts held that the transfer of real property pursuant to a
non-collusive, regularly conducted foreclosure sale was subject to the
fraudulent transfer provisions of the applicable bankruptcy laws, including the
requirement that the price paid for the property constitute "fair
consideration." The reasoning and result of Durrett and its progeny in respect
of the federal bankruptcy code, as amended from time to time (11 U.S.C.) (the
"Bankruptcy Code") was rejected, however, by the United States Supreme Court in
May 1994. The case could nonetheless be persuasive to a court applying a state
fraudulent conveyance law which has provisions similar to those construed in
Durrett. For these and other reasons, it is common for the lender to purchase
the property from the trustee, referee or other designated official for an
amount equal to the lesser of the fair market value of such property and the
outstanding principal amount of the indebtedness secured by the mortgage or
deed of trust, together with accrued and unpaid interest and the expenses of
foreclosure, in which event, if the amount bid by the lender equals the full
amount of such debt, interest and expenses, the mortgagee's debt will be
extinguished. Thereafter, the lender will assume the burdens of ownership,
including paying operating expenses and real estate taxes and making repairs.
The lender is then obligated as an owner until it can arrange a sale of the
property to a third party. Frequently, the lender employs a third party
management company to manage and operate the property. The costs of operating
and maintaining commercial property may be significant and may be greater than
the income derived from that property. The costs of management and operation of
those mortgaged properties which are hotels, motels or nursing or convalescent
homes or hospitals may be particularly significant because of
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the expertise, knowledge and, especially with respect to nursing or
convalescent homes or hospitals, regulatory compliance, required to run such
operations and the effect which foreclosure and a change in ownership may have
on the public's and the industry's (including franchisor's) perception of the
quality of such operations. The lender will commonly obtain the services of a
real estate broker and pay the broker's commission in connection with the sale
of the property. Depending upon market conditions, the ultimate proceeds of the
sale of the property may not equal the lender's investment in the property.
Moreover, a lender commonly incurs substantial legal fees and court costs in
acquiring a mortgaged property through contested foreclosure and/or bankruptcy
proceedings. Furthermore, an increasing number of states require that any
environmental hazards be eliminated before a property may be resold. In
addition, a lender may be responsible under federal or state law for the cost
of cleaning up a mortgaged property that is environmentally contaminated. See
"-- Environmental Risks" below. As a result, a lender could realize an overall
loss on a mortgage loan even if the related mortgaged property is sold at
foreclosure or resold after it is acquired through foreclosure for an amount
equal to the full outstanding principal amount of the mortgage loan, plus
accrued interest.
In foreclosure proceedings, some courts have applied general equitable
principles. These equitable principles are generally designed to relieve the
borrower from the legal effect of the borrower's defaults under the loan
documents. Examples of judicial remedies that have been fashioned include
judicial requirements that the lender undertake affirmative and expensive
actions to determine the causes of the borrower's default and the likelihood
that the borrower will be able to reinstate the loan. In some cases, courts
have substituted their judgment for the lender's judgment and have required
that lenders reinstate loans or recast payment schedules in order to
accommodate borrowers who are suffering from temporary financial disability. In
other cases, courts have limited the right of the lender to foreclose if the
default under the mortgage instrument is not monetary, such as the borrower's
failing to maintain adequately the property or the borrower's executing a
second mortgage or deed of trust affecting the property. Finally, some courts
have been faced with the issue of whether or not federal or state
constitutional provisions reflecting due process concerns for adequate notice
require that borrowers under deeds of trust or mortgages receive notices in
addition to the statutorily-prescribed minimum notice. For the most part, these
cases have upheld the notice provisions as being reasonable or have found that
the sale by a trustee under a deed of trust, or under a mortgage having a power
of sale, does not involve sufficient state action to afford constitutional
protections to the borrower. There may, however, be state transfer taxes due
and payable upon obtaining such properties at foreclosure. Such taxes could be
substantial.
Under the REMIC provisions of the Code (if applicable) and the related
Agreement, the Master Servicer or Special Servicer, if any, may be required to
hire an independent contractor to operate any REO Property. The costs of such
operation may be significantly greater than the costs of direct operation by
the Master Servicer or Special Servicer, if any. Under the REMIC provisions of
the Code, property acquired by foreclosure generally must not be held for more
than two years. With respect to a Series of Certificates for which an election
is made to qualify the Trust Fund or a part thereof as a REMIC, the Agreement
will permit foreclosed property to be held for more than two years if the
Trustee receives (i) an extension from the Internal Revenue Service or (ii) an
opinion of counsel to the effect that holding such property for such period is
permissible under the applicable REMIC provisions.
STATE LAW LIMITATIONS ON LENDERS
In some states, after sale pursuant to a deed of trust or foreclosure of a
mortgage, the borrower and foreclosed junior lienors are given a statutory
period in which to redeem the property from the foreclosure sale. In some
states, redemption may occur only upon payment of the entire principal balance
of the loan, accrued interest and expenses of foreclosure. In some states,
redemption may be authorized even if the former borrower pays only a portion of
the sums due. The effect of these types of statutory rights of redemption is to
diminish the ability of the lender to sell the foreclosed property. Such rights
of redemption would defeat the title of any purchaser from the lender
subsequent to foreclosure or sale under a deed of trust. Consequently, the
practical effect of the redemption right is to force the lender to retain the
property and pay the expenses of ownership until the redemption period has run.
See "-- Rights of Redemption" below.
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Certain states have imposed statutory prohibitions against or limitations
on recourse to the borrower. For example, some state statutes limit the right
of the beneficiary or mortgagee to obtain a deficiency judgment against the
borrower following foreclosure or sale under a deed of trust. A deficiency
judgment is a personal judgment against the former borrower equal in most cases
to the difference between the net amount realized upon the public sale of the
real property and the amount due to the lender. Other statutes require the
beneficiary or mortgagee to exhaust the security afforded under a deed of trust
or mortgage by foreclosure in an attempt to satisfy the full debt before
bringing a personal action against the borrower on the debt without first
exhausting such security. In some states, the lender, if it first pursues
judgment through a personal action against the borrower on the debt, may be
deemed to have elected a remedy and may thereafter be precluded from exercising
remedies with respect to the security. Consequently, the practical effect of
the election requirement, when applicable, is that lenders will usually proceed
first against the security rather than bringing personal action against the
borrower. Other statutory provisions limit any deficiency judgment against the
former borrower following a judicial sale to the excess of the outstanding debt
over the fair market value of the property at the time of the public sale. The
purpose of these statutes is generally to prevent a beneficiary or a mortgagee
from obtaining a large deficiency judgment against the former borrower as a
result of low bids or the absence of bids at the judicial sale. See "--
Anti-Deficiency Legislation; Bankruptcy Laws" below.
ENVIRONMENTAL RISKS
Real property pledged as security to a lender may be subject to potential
environmental risks. Of particular concern may be those mortgaged properties
which are, or have been, the site of manufacturing, industrial or disposal
activity. Such environmental risks may give rise to a diminution in value of
property securing any Mortgage Loan or, in certain circumstances as more fully
described below, liability for cleanup costs or other remedial actions, which
liability could exceed the value of such property or the principal balance of
the related Mortgage Loan. In certain circumstances, a lender may choose not to
foreclose on contaminated property rather than risk incurring liability for
remedial actions.
Under the laws of certain states, failure to perform any remedial action
required or demanded by the state of any condition or circumstance that (i) may
pose an imminent or substantial endangerment to the public health or welfare or
the environment, (ii) may result in a release or threatened release of any
hazardous material, or (iii) may give rise to any environmental claim or demand
(each such condition or circumstance, an "Environmental Condition") may, in
certain circumstances, give rise to a lien on the property to ensure the
reimbursement of remedial costs incurred by the state. In several states, such
lien has priority over the lien of an existing mortgage against such property.
In any case, the value of a Mortgaged Property as collateral for a Mortgage
Loan could be adversely affected by the existence of an Environmental
Condition.
The state of the law is currently unclear as to whether and under what
circumstances cleanup costs, or the obligation to take remedial actions, can be
imposed on a secured lender such as the Trust Fund with respect to each Series.
Under the laws of some states and under the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), a
lender may be liable as an "owner or operator" for costs of addressing releases
or threatened releases of hazardous substances on a mortgaged property if such
lender or its agents or employees have participated in the management of the
operations of the borrower, even though the environmental damage or threat was
caused by a prior owner or other third party. Excluded from CERCLA's definition
of "owner or operator," however, is a person "who without participating in the
management of the facility, holds indicia of ownership primarily to protect his
security interest (the "secured creditor exemption").
Notwithstanding the secured creditor exemption, a lender may be held
liable under CERCLA as an owner or operator, if such lender or its employees or
agents participate in management of the property. The Asset Conservation,
Lender Liability, and Deposit Insurance Protection Act of 1996 (the "Lender
Liability Act") clarifies the term "participating in management" to impose
liability on a secured lender who actually exercises control over operational
aspects of the facility and thus is "participating in management." A number of
environmentally related activities before the loan is made and during its
pendency, as well as "workout" steps to protect a security interest, are
identified as permissible to protect a security
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interest without triggering liability. The Lender Liability Act also identifies
the circumstances in which foreclosure and post-foreclosure activities will not
trigger CERCLA liability.
The Lender Liability Act also amends the federal Solid Waste Disposal Act
to limit the liability of lenders holding a security interest for costs of
cleaning up contamination for underground storage tanks. However, the Lender
Liability Act has no effect on other federal or state environmental laws
similar to CERCLA that may impose liability on lenders and other persons, and
not all of those laws provide for a secured creditor exemption. Liability under
many of these laws may exist even if the lender did not cause or contribute to
the contamination and regardless of whether the lender has actually taken
possession of the property through foreclosure, deed in lieu of foreclosure or
otherwise. Moreover, such liability is not limited to the original or
unamortized principal balance of a loan or to the value of a property securing
a loan.
Except as otherwise specified in the related Prospectus Supplement, at the
time the Mortgage Loans were originated, it is possible that no environmental
assessment or a very limited environmental assessment of the Mortgaged
Properties was conducted.
The related Agreement will provide that the Master Servicer or the Special
Servicer, if any, acting on behalf of the Trust Fund, may not acquire title to,
or possession of, a Mortgaged Property underlying a Mortgage Loan, take over
its operation or take any other action that might subject a given Trust Fund to
liability under CERCLA or comparable laws unless the Master Servicer or Special
Servicer, if any, has previously determined, based upon a phase I assessment
(as described below) or other specified environmental assessment prepared by a
person who regularly conducts such environmental assessments, that the
Mortgaged Property is in compliance with applicable environmental laws and that
there are no circumstances relating to use, management or disposal of any
hazardous materials for which investigation, monitoring, containment, clean-up
or remediation could be required under applicable environmental laws, or that
it would be in the best economic interest of a given Trust Fund to take such
actions as are necessary to bring the Mortgaged Property into compliance
therewith or as may be required under such laws. A phase I assessment generally
involves identification of recognized environmental conditions based on records
review, site reconnaissance and interviews, but does not involve more intrusive
investigation such as sampling or testing of materials. This requirement
effectively precludes enforcement of the security for the related Note until a
satisfactory environmental assessment is obtained or any required remedial
action is taken, reducing the likelihood that a given Trust Fund will become
liable for any Environmental Condition affecting a Mortgaged Property, but
making it more difficult to realize on the security for the Mortgage Loan.
However, there can be no assurance that any environmental assessment obtained
by the Master Servicer will detect all possible Environmental Conditions or
that the other requirements of the Agreement, even if fully observed by the
Master Servicer and the Special Servicer, if any, will in fact insulate a given
Trust Fund from liability for Environmental Conditions.
If a lender is or becomes liable for clean-up costs, it may bring an
action for contribution against the current owners or operators, the owners or
operators at the time of on-site disposal activity or any other party who
contributed to the environmental hazard, but such persons or entities may be
bankrupt or otherwise judgment proof. Furthermore, such action against the
Borrower may be adversely affected by the limitations on recourse in the loan
documents. Similarly, in some states anti-deficiency legislation and other
statutes requiring the lender to exhaust its security before bringing a
personal action against the borrower-trustor (see "-- Anti-Deficiency
Legislation; Bankruptcy Laws" below) may curtail the lender's ability to
recover from its borrower the environmental clean-up and other related costs
and liabilities incurred by the lender. Shortfalls occurring as the result of
imposition of any clean-up costs will be addressed in the Prospectus Supplement
and Agreement for the related Series.
RIGHTS OF REDEMPTION
In approximately one-third of the states, after foreclosure sale pursuant
to a deed of trust or a mortgage, the borrower and certain foreclosed junior
lienors are given a specified period in which to redeem the property from the
foreclosure sale. In some states, redemption may occur only upon payment of the
entire principal balance of the loan, accrued interest and expenses of
foreclosure. In
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other states, redemption may be authorized if the former borrower pays only a
portion of the sums due. The effect of a right of redemption is to diminish the
ability of the lender to sell the foreclosed property. The right of redemption
may defeat the title of any purchaser at a foreclosure sale or any purchaser
from the lender subsequent to a foreclosure sale or sale under a deed of trust.
Certain states permit a lender to avoid a post-sale redemption by waiving its
right to a deficiency judgment. Consequently, the practical effect of the
post-foreclosure redemption right is often to force the lender to retain the
property and pay the expenses of ownership until the redemption period has run.
Whether the lender has any rights to recover these expenses from a borrower who
redeems the property depends on the applicable state statute. The related
Prospectus Supplement will contain a description of any statutes that prohibit
recovery of such expenses from a borrower in states where a substantial number
of the Mortgaged Properties for a particular Series are located. In some
states, there is no right to redeem property after a trustee's sale under a
deed of trust.
Borrowers under Installment Contracts generally do not have the benefits
of redemption periods such as may exist in the same jurisdiction for mortgage
loans. Where redemption statutes do exist under state laws for Installment
Contracts, the redemption period is usually far shorter than for mortgages.
JUNIOR MORTGAGES; RIGHTS OF SENIOR MORTGAGEES
The Mortgage Pool for a Series may include Mortgage Loans secured by
mortgages or deeds of trust some of which are junior to other mortgages or
deeds of trust, some of which may be held by other lenders or institutional
investors. The rights of the Trust Fund (and therefore the Certificateholders),
as mortgagee under a junior mortgage or beneficiary under a junior deed of
trust, are subordinate to those of the mortgagee under the senior mortgage or
beneficiary under the senior deed of trust, including the prior rights of the
senior mortgagee to receive hazard insurance and condemnation proceeds and to
cause the property securing the Mortgage Loan to be sold upon default of the
borrower or trustor, thereby extinguishing the junior mortgagee's or junior
beneficiary's lien unless the junior mortgagee or junior beneficiary asserts
its subordinate interest in the property in foreclosure litigation and,
possibly, satisfies the defaulted senior mortgage or deed of trust. As
discussed more fully below, a junior mortgagee or junior beneficiary may
satisfy a defaulted senior loan in full and, in some states, may cure such
default and loan. In most states, no notice of default is required to be given
to a junior mortgagee or junior beneficiary and junior mortgagees or junior
beneficiaries are seldom given notice of defaults on senior mortgages. In order
for a foreclosure action in some states to be effective against a junior
mortgagee or junior beneficiary, the junior mortgagee or junior beneficiary
must be named in any foreclosure action, thus giving notice to junior lienors.
ANTI-DEFICIENCY LEGISLATION; BANKRUPTCY LAWS
Some of the Mortgage Loans included in the Mortgage Pool for a Series will
be nonrecourse loans as to which, in the event of default by a Borrower,
recourse may be had only against the specific property pledged to secure the
related Mortgage Loan and not against the Borrower's other assets. Even if
recourse is available pursuant to the terms of the Mortgage Loan against the
Borrower's assets in addition to the Mortgaged Property, certain states have
imposed statutory prohibitions which impose prohibitions against or limitations
on such recourse. For example, some state statutes limit the right of the
beneficiary or mortgagee to obtain a deficiency judgment against the borrower
following foreclosure or sale under a deed of trust. A deficiency judgment is a
personal judgment against the former borrower equal in most cases to the
difference between the net amount realized upon the public sale of the real
property and the amount due to the lender. Other statutes require the
beneficiary or mortgagee to exhaust the security afforded under a deed of trust
or mortgage by foreclosure in an attempt to satisfy the full debt before
bringing a personal action against the borrower. In certain states, the lender
has the option of bringing a personal action against the borrower on the debt
without first exhausting such security; however, in some of these states, the
lender, following judgment on such personal action, may be deemed to have
elected a remedy and may be precluded from exercising remedies with respect to
the security. Consequently, the practical effect of the election requirement,
when applicable, is that lenders will usually proceed first against the
security rather than bringing a personal action against the
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borrower. Other statutory provisions limit any deficiency judgment against the
former borrower following a judicial sale to the excess of the outstanding debt
over the fair market value of the property at the time of the public sale. The
purpose of these statutes is generally to prevent a beneficiary or a mortgagee
from obtaining a large deficiency judgment against the former borrower as a
result of low bids or the absence of bids at the judicial sale.
Numerous statutory provisions, including the Bankruptcy Code and state
laws affording relief to debtors, may interfere with and delay the ability of
the secured mortgage lender to obtain payment of the loan, to realize upon
collateral and/or to enforce a deficiency judgment. For example, under the
Bankruptcy Code, virtually all actions (including foreclosure actions and
deficiency judgment proceedings) are automatically stayed upon the filing of
the bankruptcy petition, and, often, no interest or principal payments are made
during the course of the bankruptcy proceeding. The delay and consequences
thereof caused by such automatic stay can be significant. Also, under the
Bankruptcy Code, the filing of a petition in bankruptcy by or on behalf of a
junior lienor, including, without limitation, any junior mortgagee or
beneficiary, may stay the senior lender from taking action to foreclose out
such junior lien. Certain of the Mortgaged Properties may have a junior
"wraparound" mortgage or deed of trust encumbering such Mortgaged Property. In
general terms, a "wraparound" mortgage is a junior mortgage where the full
amount of the mortgage is increased by an amount equal to the principal balance
of the senior mortgage and where the junior lender agrees to pay the senior
mortgage out of the payments received from the mortgagor under the "wraparound"
mortgage. As with other junior mortgages, the filing of a petition under the
Bankruptcy Code by or on behalf of such a "wraparound" mortgagee may stay the
senior lender from taking action to foreclose upon such junior "wraparound"
mortgage.
Under the Bankruptcy Code, provided certain substantive and procedural
safeguards for the lender are met, the amount and terms of a mortgage or deed
of trust secured by property of the debtor may be modified under certain
circumstances. The outstanding amount of the loan secured by the real property
may be reduced to the then current value of the property (with a corresponding
partial reduction of the amount of the lender's security interest) pursuant to
a confirmed plan or lien avoidance proceeding, thus leaving the lender a
general unsecured creditor for the difference between such value and the
outstanding balance of the loan. Other modifications may include the reduction
in the amount of each monthly payment, which reduction may result from a
reduction in the rate of interest and/or the alteration of the repayment
schedule (with or without affecting the unpaid principal balance of the loan),
and/or an extension (or reduction) of the final maturity date. Some courts with
federal bankruptcy jurisdiction have approved plans, based on the particular
facts of the reorganization case, that effected the curing of a mortgage loan
default by paying arrearages over a number of years. Also, under the Bankruptcy
Code, a bankruptcy court may permit a debtor through its rehabilitative plan to
de-accelerate a secured loan and to reinstate the loan even though the lender
accelerated the mortgage loan and final judgment of foreclosure had been
entered in state court (provided no sale of the property had yet occurred)
prior to the filing of the debtor's petition. This may be done even if the full
amount due under the original loan is never repaid. Other types of significant
modifications to the terms of the mortgage may be acceptable to the bankruptcy
court, often depending on the particular facts and circumstances of the
specific case.
Federal bankruptcy law may also interfere with or affect the ability of
the secured mortgage lender to enforce an assignment by a mortgagor of rents
and leases related to the mortgaged property if the related mortgagor is in a
bankruptcy proceeding. Under Section 362 of the Bankruptcy Code, the mortgagee
will be stayed from enforcing the assignment, and the legal proceedings
necessary to resolve the issue can be time-consuming and may result in
significant delays in the receipt of the rents. Rents may also escape an
assignment thereof (i) if the assignment is not fully perfected under state law
prior to commencement of the bankruptcy proceeding, (ii) to the extent such
rents are used by the borrower to maintain the mortgaged property, or for other
court authorized expenses, or (iii) to the extent other collateral may be
substituted for the rents.
To the extent a mortgagor's ability to make payment on a mortgage loan is
dependent on payments under a lease of the related property, such ability may
be impaired by the commencement of a bankruptcy proceeding relating to a lessee
under such lease. Under the Bankruptcy Code, the filing of
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a petition in bankruptcy by or on behalf of a lessee results in a stay in
bankruptcy against the commencement or continuation of any state court
proceeding for past due rent, for accelerated rent, for damages or for a
summary eviction order with respect to a default under the lease that occurred
prior to the filing of the lessee's petition.
In addition, federal bankruptcy law generally provides that a trustee or
debtor in possession in a bankruptcy or reorganization case under the
Bankruptcy Code may, subject to approval of the court, (a) assume the lease and
retain it or assign it to a third party or (b) reject the lease. If the lease
is assumed, the trustee or debtor in possession (or assignee, if applicable)
must cure any defaults under the lease, compensate the lessor for its losses
and provide the lessor with "adequate assurance" of future performance. Such
remedies may be insufficient, however, as the lessor may be forced to continue
under the lease with a lessee that is a poor credit risk or an unfamiliar
tenant if the lease was assigned, and any assurances provided to the lessor
may, in fact, be inadequate. Furthermore, there is likely to be a period of
time between the date upon which a lessee files a bankruptcy petition and the
date upon which the lease is assumed or rejected. Although the lessee is
obligated to make all lease payments currently with respect to the
post-petition period, there is a risk that such payments will not be made due
to the lessee's poor financial condition. If the lease is rejected, the lessor
will be treated as an unsecured creditor with respect to its claim for damages
for termination of the lease and the mortgagor must relet the mortgaged
property before the flow of lease payments will recommence. In addition,
pursuant to Section 502(b) (6) of the Bankruptcy Code, a lessor's damages for
lease rejection are limited.
In a bankruptcy or similar proceeding, action may be taken seeking the
recovery as a preferential transfer of any payments made by the mortgagor under
the related Mortgage Loan to the Trust Fund. Payments on long-term debt may be
protected from recovery as preferences if they are payments in the ordinary
course of business made on debts incurred in the ordinary course of business.
Whether any particular payment would be protected depends upon the facts
specific to a particular transaction.
A trustee in bankruptcy, in some cases, may be entitled to collect its
costs and expenses in preserving or selling the mortgaged property ahead of
payment to the lender. In certain circumstances, a debtor in bankruptcy may
have the power to grant liens senior to the lien of a mortgage, and analogous
state statutes and general principles of equity may also provide a mortgagor
with means to halt a foreclosure proceeding or sale and to force a
restructuring of a mortgage loan on terms a lender would not otherwise accept.
Moreover, the laws of certain states also give priority to certain tax liens
over the lien of a mortgage or deed of trust. Under the Bankruptcy Code, if the
court finds that actions of the mortgagee have been unreasonable, the lien of
the related mortgage may be subordinated to the claims of unsecured creditors.
Certain of the mortgagors may be partnerships. The laws governing limited
partnerships in certain states provide that the commencement of a case under
the Bankruptcy Code with respect to a general partner will cause a person to
cease to be a general partner of the limited partnership, unless otherwise
provided in writing in the limited partnership agreement. This provision may be
construed as an "ipso facto" clause and, in the event of the general partner's
bankruptcy, may not be enforceable. Certain limited partnership agreements of
the borrowers may provide that the commencement of a case under the Bankruptcy
Code with respect to the related general partner constitutes an event of
withdrawal (assuming the enforceability of the clause is not challenged in
bankruptcy proceedings or, if challenged, is upheld) that might trigger the
dissolution of the limited partnership, the winding up of its affairs and the
distribution of its assets, unless (i) at the time there was at least one other
general partner and the written provisions of the limited partnership permit
the business of the limited partnership to be carried on by the remaining
general partner and that general partner does so or (ii) the written provisions
of the limited partnership agreement permit the limited partner to agree within
a specified time frame (often 60 days) after such withdrawal to continue the
business of the limited partnership and to the appointment of one or more
general partners and the limited partners do so. In addition, the laws
governing general partnerships in certain states provide that the commencement
of a case under the Bankruptcy Code or state bankruptcy laws with respect to a
general partner of such partnerships triggers the dissolution of such
partnership, the winding up of its affairs and the distribution of its assets.
Such state laws, however,
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may not be enforceable or effective in a bankruptcy case. The dissolution of a
mortgagor, the winding up of its affairs and the distribution of its assets
could result in an acceleration of its payment obligation under a related
Mortgage Loan, which may reduce the yield on the Offered Certificates in the
same manner as a principal prepayment.
In addition, the bankruptcy of the general or limited partner of a
mortgagor that is a partnership, or the bankruptcy of a member of a mortgagor
that is a limited liability company or the bankruptcy of a shareholder of a
mortgagor that is a corporation may provide the opportunity in the bankruptcy
case of such partner, member or shareholder to obtain an order from a court
consolidating the assets and liabilities of the partner, member or shareholder
with those of the mortgagor pursuant to the doctrines of substantive
consolidation or piercing the corporate veil. In such a case, the respective
Mortgaged Property, for example, would become property of the estate of such
bankrupt partner, member of shareholder. Not only would the Mortgaged Property
be available to satisfy the claims of creditors of such partner, member or
shareholder, but an automatic stay would apply to any attempt by the Trustee to
exercise remedies with respect to such Mortgaged Property. However, such an
occurrence should not affect the Trustee's status as a secured creditor with
respect to the mortgagor or its security interest in the Mortgaged Property.
LEASEHOLD RISKS
Mortgage Loans may be secured by a mortgage on a ground lease. Leasehold
mortgages are subject to certain risks not associated with mortgage loans
secured by the fee estate of the mortgagor. The most significant of these risks
is that the ground lease creating the leasehold estate could terminate, leaving
the leasehold mortgagee without its security. The ground lease may terminate
if, among other reasons, the ground lessee breaches or defaults in its
obligations under the ground lease or there is a bankruptcy of the ground
lessee or the ground lessor. This risk may be minimized if the ground lease
contains certain provisions protective of the mortgagee, but the ground leases
that secure Mortgage Loans may not contain some of these protective provisions,
and mortgages may not contain the other protections discussed in the next
paragraph. Protective ground lease provisions include the right of the
leasehold mortgagee to receive notices from the ground lessor of any defaults
by the mortgagor; the right to cure such defaults, with adequate cure periods;
if a default is not susceptible of cure by the leasehold mortgagee, the right
to acquire the leasehold estate through foreclosure or otherwise; the ability
of the ground lease to be assigned to and by the leasehold mortgagee or
purchaser at a foreclosure sale and for the concomitant release of the ground
lessee's liabilities thereunder; and the right of the leasehold mortgagee to
enter into a new ground lease with the ground lessor on the same terms and
conditions as the old ground lease in the event of a termination thereof.
In addition to the foregoing protections, a leasehold mortgagee may
require that the ground lease or leasehold mortgage prohibit the ground lessee
from treating the ground lease as terminated in the event of the ground
lessor's bankruptcy and rejection of the ground lease by the trustee for the
debtor-ground lessor. As further protection, a leasehold mortgage may provide
for the assignment of the debtor-ground lessee's right to reject a lease
pursuant to Section 365 of the Bankruptcy Code, although the enforceability of
such clause has not been established. Without the protections described above,
a leasehold mortgagee may lose the collateral securing its leasehold mortgage.
In addition, terms and conditions of a leasehold mortgage are subject to the
terms and conditions of the ground lease. Although certain rights given to a
ground lessee can be limited by the terms of a leasehold mortgage, the rights
of a ground lessee or a leasehold mortgagee with respect to, among other
things, insurance, casualty and condemnation will be governed by the provisions
of the ground lease.
STATUTORY LIABILITIES
The Internal Revenue Code of 1986, as amended, provides priority to
certain tax liens over the lien of the mortgage. In addition, substantive
requirements are imposed upon mortgage lenders in connection with the
origination and the servicing of mortgage loans by numerous federal and some
state consumer protection laws. These laws include the federal Truth-in-Lending
Act, Real Estate Settlement Procedures Act, Equal Credit Opportunity Act, Fair
Credit Billing Act, Fair Credit Reporting Act, and
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related statutes. These federal laws impose specific statutory liabilities upon
lenders who originate mortgage loans and who fail to comply with the provisions
of the law. In some cases, this liability may affect assignees of the mortgage
loans.
ENFORCEABILITY OF CERTAIN PROVISIONS
Prepayment Provisions
Courts generally enforce claims requiring prepayment fees unless
enforcement would be unconscionable. However, the laws of certain states may
render prepayment fees unenforceable after a mortgage loan has been outstanding
for a certain number of years, or may limit the amount of any prepayment fee to
a specified percentage of the original principal amount of the mortgage loan,
to a specified percentage of the outstanding principal balance of a mortgage
loan, or to a fixed number of months' interest on the prepaid amount. In
certain states, prepayment fees payable on default or other involuntary
acceleration of a mortgage loan may not be enforceable against the mortgagor.
Some state statutory provisions may also treat certain prepayment fees as
usurious if in excess of statutory limits. See "-- Applicability of Usury
Laws." Some of the Mortgage Loans included in the Mortgage Pool for a Series
may not require the payment of specified fees as a condition to prepayment or
such requirements have expired, and to the extent some Mortgage Loans do
require such fees, such fees may not necessarily deter Borrowers from prepaying
their Mortgage Loans.
Due-on-Sale Provisions
The enforceability of due-on-sale clauses has been the subject of
legislation or litigation in many states, and in some cases, typically
involving single family residential mortgage transactions, their enforceability
has been limited or denied. In any event, in situations relating primarily to
residential properties, the Garn-St Germain Depository Institutions Act of 1982
(the "Garn-St Germain Act") preempts state constitutional, statutory and case
law that prohibits the enforcement of due-on-sale clauses and permits lenders
to enforce these clauses in accordance with their terms, subject to certain
exceptions. As a result, due-on-sale clauses have become generally enforceable
except in those states whose legislatures exercised their authority to regulate
the enforceability of such clauses with respect to mortgage loans that were (i)
originated or assumed during the "window period" under the Garn-St Germain Act,
which ended in all cases not later than October 15, 1982, and (ii) originated
by lenders other than national banks, federal savings institutions and federal
credit unions. FHLMC has taken the position in its published mortgage servicing
standards that, out of a total of eleven "window period states," five states
(Arizona, Michigan, Minnesota, New Mexico and Utah) have enacted statutes
extending, on various terms and for varying periods, the prohibition on
enforcement of due-on-sale clauses with respect to certain categories of window
period loans. Also, the Garn-St Germain Act does "encourage" lenders to permit
assumption of loans at the original rate of interest or at some other rate less
than the average of the original rate and the market rates.
Unless otherwise specified in the related Prospectus Supplement, the
Agreement for each Series will provide that if any Mortgage Loan contains a
provision in the nature of a "due-on-sale" clause, which by its terms provides
that: (i) such Mortgage Loan shall (or may at the mortgagee's option) become
due and payable upon the sale or other transfer of an interest in the related
Mortgaged Property; or (ii) such Mortgage Loan may not be assumed without the
consent of the related mortgagee in connection with any such sale or other
transfer, then, for so long as such Mortgage Loan is included in the Trust
Fund, the Master Servicer, on behalf of the Trustee, shall take such actions as
it deems to be in the best interest of the Certificateholders in accordance
with the servicing standard set forth in the Agreement, and may waive or
enforce any due-on-sale clause contained in the related Note or Mortgage.
In addition, under federal bankruptcy law, due-on-sale clauses may not be
enforceable in bankruptcy proceedings and may, under certain circumstances, be
eliminated in any modified mortgage resulting from such bankruptcy proceeding.
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Acceleration on Default
Some of the Mortgage Loans included in the Mortgage Pool for a Series will
include a "debt acceleration" clause, which permits the lender to accelerate
the full debt upon a monetary or nonmonetary default of the borrower. State
courts generally will enforce clauses providing for acceleration in the event
of a material payment default after giving effect to any appropriate notices.
The equity courts of any state, however, may refuse to foreclose a mortgage or
deed of trust when an acceleration of the indebtedness would be inequitable or
unjust or the circumstances would render the acceleration unconscionable.
Furthermore, in some states, the borrower may avoid foreclosure and reinstate
an accelerated loan by paying only the defaulted amounts and the costs and
attorneys' fees incurred by the lender in collecting such defaulted payments.
Forms of notes, mortgages and deeds of trust used by lenders may contain
provisions obligating the borrower to pay a late charge if payments are not
timely made. In certain states, there are or may be specific limitations upon
the late charges which a lender may collect from a borrower for delinquent
payments.
Upon foreclosure, courts have applied general equitable principles. These
equitable principles are generally designed to relieve the borrower from the
legal effect of his defaults under the loan documents. Examples of judicial
remedies that have been fashioned include judicial requirements that the lender
undertake affirmative and expensive actions to determine the causes of the
borrower's default and the likelihood that the borrower will be able to
reinstate the loan. In some cases, courts have substituted their judgment for
the lender's judgment and have required that lenders reinstate loans or recast
payment schedules in order to accommodate borrowers who are suffering from
temporary financial disability. In other cases, courts have limited the right
of the lender to foreclose if the default under the mortgage instrument is not
monetary, such as the borrower's failing to maintain adequately the property or
the borrower's executing a second mortgage or deed of trust affecting the
property. Finally, some courts have been faced with the issue of whether or not
federal or state constitutional provisions reflecting due process concerns for
adequate notice require that borrowers under deeds of trust or mortgages
receive notices in addition to the statutorily-prescribed minimum. For the most
part, these cases have upheld the notice provisions as being reasonable or have
found that the sale by a trustee under a deed of trust, or by a mortgagee under
a mortgage having a power of sale, does not involve sufficient state action to
afford constitutional protections to the borrower.
State courts also are known to apply various legal and equitable
principles to avoid enforcement of the forfeiture provisions of Installment
Contracts. For example, a lender's practice of accepting late payments from the
borrower may be deemed a waiver of the forfeiture clause. State courts also may
impose equitable grace periods for payment of arrearages or otherwise permit
reinstatement of the contract following a default. Not infrequently, if a
borrower under an Installment Contract has significant equity in the property,
equitable principles will be applied to reform or reinstate the contract or to
permit the borrower to share the proceeds upon a foreclosure sale of the
property if the sale price exceeds the debt.
Soldiers' and Sailors' Relief Act
Under the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended (the "Relief Act"), an individual Borrower who enters military service
after the origination of such Borrower's Mortgage Loan (including a Borrower
who is in reserve status at the time of the origination of the Mortgage Loan
and is later called to active duty) may not be charged interest (including fees
and charges) above an annual rate of 6% during the period of such Borrower's
active duty status, unless a court orders otherwise upon application of the
lender. Any shortfall in interest collections resulting from the application of
the Relief Act, to the extent not covered by any applicable credit
enhancements, could result in losses to the Holders of the Certificates. The
Relief Act applies to mortgagors who are members of the Army, Navy, Air Force,
Marines, National Guard, Reserves, Coast Guard and officers of the U.S. Public
Health Service assigned to duty with the military. Because the Relief Act
applies to mortgagors who enter military service (including reservists who are
later called to active duty) after origination of the related Mortgage Loan, no
information can be provided as to the number of Mortgage Loans that may be
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affected by the Relief Act. Some of the Mortgaged Properties relating to
Mortgage Loans included in the Mortgage Pool for a Series may be owned by
Borrowers who are individuals currently in the military. In addition, the
Relief Act imposes limitations which would impair the ability of the Master
Servicer to foreclose on an affected Mortgage Loan during the Borrower's period
of active duty status and, under certain circumstances, during an additional
three months thereafter. Thus, in the event that such a Mortgage Loan goes into
default, there may be delays and losses occasioned by the inability to realize
upon the Mortgaged Property in a timely fashion.
Forfeitures in Drug and RICO Proceedings
Federal law permits the government to forfeit real property that has been
purchased with the proceeds of certain crimes (including drug trafficking,
racketeering, money laundering, and fraud affecting financial institutions),
and real property that has been used to facilitate certain crimes (including
drug trafficking and money laundering). Forfeitures of real property usually
are accomplished through criminal or civil judicial proceedings. In a criminal
proceeding, forfeiture is imposed as a form of punishment following conviction
of the property owner. Under certain circumstances, the government may even
seize the defendant's real property before a conviction. In a civil forfeiture,
the government brings an action against the real property, rather than the
wrongdoer, based on the legal fiction that the property itself has been tainted
by crime.
The government must publish notice of the forfeiture proceeding and may
give direct notice to all parties known to have an alleged interest in the
property, including holders of mortgage loans. A mortgage lender may avoid
forfeiture of its interest in the property if it can establish that: (i) its
mortgage was executed and recorded before commission of the crime upon which
the forfeiture is based, or (ii) the lender did not know of or consent to the
underlying unlawful conduct. The U.S. Department of Justice has adopted an
expedited settlement policy designed to resolve the claims of lienholders
holding mortgages against properties that are subject to forfeiture.
APPLICABILITY OF USURY LAWS
State and federal usury laws limit the interest that lenders are entitled
to receive on a mortgage loan. In determining whether a given transaction is
usurious, courts may include charges in the form of "points" and "fees" as
"interest," but may exclude payments in the form of "reimbursement of
foreclosure expenses" or other charges found to be distinct from "interest."
If, however, the amount charged for the use of the money loaned is found to
exceed a statutorily established maximum rate, the form employed and the degree
of overcharge are both immaterial. Statutes differ in their provision as to the
consequences of a usurious loan. One group of statutes requires the lender to
forfeit the interest above the applicable limit or imposes a specified penalty.
Under this statutory scheme, the borrower may have the recorded mortgage or
deed of trust cancelled upon paying its debt with lawful interest, or the
lender may foreclose, but only for the debt plus lawful interest. A second
group of statutes is more severe. A violation of this type of usury law results
in the invalidation of the transaction, thereby permitting the borrower to have
the recorded mortgage or deed of trust cancelled without any payment and
prohibiting the lender from foreclosing.
Under the Agreement, a representation and warranty will be made (or the
benefit of such a representation and warranty will be assigned to the Trust
Fund) to the effect that the Mortgage Loans included in a given Trust Fund
complied at origination with applicable laws, including usury laws. Unless
otherwise provided in the related Prospectus Supplement, if this representation
and warranty is breached with respect to any Mortgage Loan in a manner that
materially and adversely affects the interests of Certificateholders and is not
cured within the period of time specified in the related Prospectus Supplement,
a Substitute Mortgage Loan will be substituted for such Mortgage Loan or such
Mortgage Loan will be repurchased in accordance with the applicable Agreement.
See "THE MORTGAGE POOLS -- Representations and Warranties."
The Agreement for each Series will provide that the Master Servicer not
charge interest in excess of that permitted under any applicable state and
federal usury laws, notwithstanding that the applicable Note may provide for a
higher rate.
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ALTERNATIVE MORTGAGE INSTRUMENTS
Alternative mortgage instruments, including adjustable rate mortgage
loans, originated by non-federally chartered lenders have historically been
subjected to a variety of restrictions. Such restrictions differed from state
to state, resulting in difficulties in determining whether a particular
alternative mortgage instrument originated by a state-chartered lender was in
compliance with applicable law. These difficulties were alleviated
substantially as a result of the enactment of Title VIII of the Garn-St Germain
Act ("Title VIII"). Title VIII provides that, notwithstanding any state law to
the contrary, state-chartered banks may originate alternative mortgage
instruments in accordance with regulations promulgated by the Comptroller of
the Currency with respect to origination of alternative mortgage instruments by
national banks, state-chartered credit unions may originate alternative
mortgage instruments in accordance with regulations promulgated by the National
Credit Union Administration (the "NCUA") with respect to origination of
alternative mortgage instruments by federal credit unions, and all other
non-federally chartered housing creditors, including state-chartered savings
and loan associations, state-chartered savings banks and mortgage banking
companies, may originate alternative mortgage instruments in accordance with
the regulations promulgated by the Federal Home Loan Bank Board (now the Office
of Thrift Supervision) with respect to origination of alternative mortgage
instruments by federal savings and loan associations. Title VIII provides that
any state may reject applicability of the provision of Title VIII by adopting,
prior to October 15, 1985, a law or constitutional provision expressly
rejecting the applicability of such provisions. Certain states have taken such
action.
LEASES AND RENTS
Some of the Mortgage Loans included in the Mortgage Pool for a Series may
be secured by an assignment of leases and rents, either through a separate
document of assignment or as incorporated in the related mortgage. Under such
assignments, the borrower under the mortgage loan typically assigns its right,
title and interest as landlord under each lease and the income derived
therefrom to the lender, while retaining a license to collect the rents for so
long as there is no default under the mortgage loan. The manner of perfecting
the lender's interest in rents may depend on whether the borrower's assignment
was absolute or one granted as security for the loan. Failure to properly
perfect the lender's interest in rents may result in the loss of a substantial
pool of funds which could otherwise serve as a source of repayment for the
loan. In the event the borrower defaults, the license terminates and the lender
may be entitled to collect rents. Some state laws may require that to perfect
its interest in rents, the lender must take possession of the property and/or
obtain judicial appointment of a receiver before becoming entitled to collect
the rents. Lenders that actually take possession of the property, however, may
incur potentially substantial risks attendant to being a mortgagee in
possession. Such risks include liability for environmental clean-up costs and
other risks inherent to property ownership. In addition, if bankruptcy or
similar proceedings are commenced by or in respect of the borrower, the
lender's ability to collect the rents may be adversely affected. In the event
of borrower default, the amount of rent the lender is able to collect from the
tenants may be less than the periodic payments due under the mortgage and can
significantly affect the value of the lender's security interest.
SECONDARY FINANCING; DUE-ON-ENCUMBRANCE PROVISIONS
Some of the Mortgage Loans included in the Mortgage Pool for a Series may
not restrict secondary financing, thereby permitting the Borrower to use the
Mortgaged Property as security for one or more additional loans. Some of the
Mortgage Loans may preclude secondary financing (often by permitting the first
lender to accelerate the maturity of its loan if the Borrower further encumbers
the Mortgaged Property) or may require the consent of the senior lender to any
junior or substitute financing; however, such provisions may be unenforceable
in certain jurisdictions under certain circumstances. Unless otherwise
specified in the related Prospectus Supplement, the Agreement for each Series
will provide that if any Mortgage Loan contains a provision in the nature of a
"due-on-encumbrance" clause, which by its terms: (i) provides that such
Mortgage Loan shall (or may at the mortgagee's option) become due and payable
upon the creation of any lien or other encumbrance on the related Mortgaged
Property; or (ii) requires the consent of the related mortgagee to the creation
of any such lien or other encumbrance
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on the related Mortgaged Property, then for so long as such Mortgage Loan is
included in a given Trust Fund, the Master Servicer or, if such Mortgage Loan
is a Specially Serviced Mortgage Loan, the Special Servicer, if any, on behalf
of such Trust Fund, shall exercise (or decline to exercise) any right it may
have as the mortgagee of record with respect to such Mortgage Loan (x) to
accelerate the payments thereon, or (y) to withhold its consent to the creation
of any such lien or other encumbrance, in a manner consistent with the
servicing standard set forth in the Agreement.
Where the Borrower encumbers the Mortgaged Property with one or more
junior liens, the senior lender is subjected to additional risk. First, the
Borrower may have difficulty servicing and repaying multiple loans. Second,
acts of the senior lender which prejudice the junior lender or impair the
junior lender's security may create a superior equity in favor of the junior
lender. For example, if the Borrower and the senior lender agree to an increase
in the principal amount of or the interest rate payable on the senior loan, the
senior lender may lose its priority to the extent an existing junior lender is
prejudiced or the Borrower is additionally burdened. Third, if the Borrower
defaults on the senior loan and/or any junior loan or loans, the existence of
junior loans and actions taken by junior lenders can impair the security
available to the senior lender and can interfere with, delay and in certain
circumstances even prevent the taking of action by the senior lender. Fourth,
the bankruptcy of a junior lender may operate to stay foreclosure or similar
proceedings by the senior lender.
CERTAIN LAWS AND REGULATIONS
The Mortgaged Properties will be subject to compliance with various
federal, state and local statutes and regulations. Failure to comply (together
with an inability to remedy any such failure) could result in material
diminution in the value of a Mortgaged Property which could, together with the
possibility of limited alternative uses for a particular Mortgaged Property
(e.g., a nursing or convalescent home or hospital), result in a failure to
realize the full principal amount of the related Mortgage Loan.
TYPE OF MORTGAGED PROPERTY
The lender may be subject to additional risk depending upon the type and
use of the Mortgaged Property in question. For instance, Mortgaged Properties
which are hospitals, nursing homes or convalescent homes may present special
risks to lenders in large part due to significant governmental regulation of
the operation, maintenance, control and financing of health care institutions.
Mortgages on Mortgaged Properties which are owned by the Borrower under a
condominium form of ownership are subject to the declaration, by-laws and other
rules and regulations of the condominium association. Mortgaged Properties
which are hotels or motels may present additional risk to the lender in that:
(i) hotels and motels are typically operated pursuant to franchise, management
and operating agreements which may be terminable by the franchisor, manager or
operator; and (ii) the transferability of the hotel's operating, liquor and
other licenses to the entity acquiring the hotel either through purchase or
foreclosure is subject to the vagaries of local law requirements. In addition,
Mortgaged Properties which are multifamily residential properties or
cooperatively owned multifamily properties may be subject to rent control laws,
which could impact the future cash flows of such properties.
AMERICANS WITH DISABILITIES ACT
Under Title III of the Americans with Disabilities Act of 1990 and rules
promulgated thereunder (collectively, the "ADA"), in order to protect
individuals with disabilities, public accommodations (such as hotels,
restaurants, shopping centers, hospitals, schools and social service center
establishments) must remove architectural and communication barriers which are
structural in nature from existing places of public accommodation to the extent
"readily achievable." In addition, under the ADA, alterations to a place of
public accommodation or a commercial facility are to be made so that, to the
maximum extent feasible, such altered portions are readily accessible to and
usable by disabled individuals. The "readily achievable" standard takes into
account, among other factors, the financial resources of the affected site,
owner, landlord or other applicable person. In addition to imposing a possible
financial burden on the borrower in its capacity as owner or landlord, the ADA
may also impose such requirements on a foreclosing lender who succeeds to the
interest of the Borrower as owner or landlord. Furthermore, since
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the "readily achievable" standard may vary depending on the financial condition
of the owner or landlord, a foreclosing lender who is financially more capable
than the Borrower of complying with the requirements of the ADA may be subject
to more stringent requirements than those to which the Borrower is subject.
FEDERAL INCOME TAX CONSEQUENCES
GENERAL
The following generally describes the anticipated material federal income
tax consequences of purchasing, owning and disposing of Certificates. It does
not address special rules which may apply to particular types of investors. The
authorities on which this discussion is based are subject to change or
differing interpretations, and any such change or interpretation could apply
retroactively. Investors should consult their own tax advisors regarding the
Certificates.
For purposes of this discussion, unless otherwise specified, the term
"Mortgage Loans" will be used to refer to Mortgage Loans and Installment
Contracts, and the term "Owner" will refer to the beneficial owner of a
Certificate. In the event that the Mortgage Pool for any Series of Certificates
consists of financial leases or the Trust Fund enters into a Swap Agreement,
the related Prospectus Supplement will describe any additional or different
federal income tax consequences of purchasing, owning and disposing of such
Certificates.
REMIC ELECTIONS
Under the Internal Revenue Code of 1986, as amended (the "Code"), an
election may be made to treat the Trust Fund related to each Series of
Certificates (or segregated pools of assets within the Trust Fund) as a "real
estate mortgage investment conduit" ("REMIC") within the meaning of Section
860D(a) of the Code. If one or more REMIC elections are made, the Certificates
of any Class will be either "regular interests" in a REMIC within the meaning
of Section 860G(a)(1) of the Code ("Regular Certificates") or "residual
interests" in a REMIC within the meaning of Section 860G(a)(2) of the Code
("Residual Certificates"). The Prospectus Supplement for each Series of
Certificates will indicate whether an election will be made to treat the Trust
Fund as one or more REMICs, and if so, which Certificates will be Regular
Certificates and which will be Residual Certificates.
If a REMIC election is made, the Trust Fund, or each portion thereof that
is treated as a separate REMIC, will be referred to as a "REMIC Pool". If the
Trust Fund is comprised of two REMIC Pools, one will be an "Upper-Tier REMIC"
and one a "Lower-Tier REMIC" or as otherwise specified in the applicable
Prospectus Supplement. The assets of the Lower-Tier REMIC will consist of the
Mortgage Loans and related Trust Fund assets. The assets of the Upper-Tier
REMIC will consist of all of the regular interests issued by the Lower-Tier
REMIC.
The discussion below under the heading "REMIC Certificates" considers
Series for which a REMIC election will be made. Series for which no such
election will be made are addressed under "Non-REMIC Certificates".
REMIC CERTIFICATES
The discussion in this section applies only to a Series of Certificates
for which a REMIC election is made.
Tax Opinion.
Qualification as a REMIC requires ongoing compliance with certain
conditions. Upon the issuance of each Series of Certificates for which a REMIC
election is made, Cleary, Gottlieb, Steen & Hamilton or another law firm
identified in the related Prospectus Supplement, counsel to the Seller, will
deliver its opinion generally to the effect that, with respect to each such
Series of Certificates, under then existing law and assuming compliance by the
Seller, the Master Servicer, the Special Servicer, if any, and the
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Trustee for such Series with all of the provisions of the related Agreement
(and such other agreements and representations as may be referred to in such
opinion), each REMIC Pool will be a REMIC, and the Certificates of such Series
will be treated as either Regular Certificates or Residual Certificates. This
opinion will be filed as an Exhibit to the Form 8-K relating to such Series of
Certificates.
Status of Certificates.
The Certificates will be:
o ASSETS DESCRIBED IN CODE SECTION 7701(A)(19)(C); AND
o "REAL ESTATE ASSETS" UNDER CODE SECTION 856(C)(4)(A),
to the extent the assets of the related REMIC Pool are so treated. Interest on
the Regular Certificates will be "interest on obligations secured by mortgages
on real property or on interests in real property" within the meaning of Code
Section 856(c)(3)(B) in the same proportion that the income of the REMIC Pool
is so treated. If at all times 95% or more of the assets or income of the REMIC
Pool qualify under the foregoing Code sections, the Certificates (and income
thereon) will so qualify in their entirety.
The rules described in the preceding paragraph will be applied to a Trust
Fund consisting of two REMIC Pools as if the Trust Fund were a single REMIC
holding the assets of the Lower-Tier REMIC.
Income from Regular Certificates.
General. Except as otherwise provided in this tax discussion, Regular
Certificates will be taxed as newly originated debt instruments for federal
income tax purposes. Interest, original issue discount and market discount
accrued on a Regular Certificate will be ordinary income to the Owner. All
Owners must account for interest income under the accrual method of accounting,
which may result in the inclusion of amounts in income that are not currently
distributed in cash.
On January 27, 1994 the Internal Revenue Service adopted regulations
applying the original issue discount rules of the Code, and such regulations
were further amended on June 6, 1996 (the "OID Regulations"). Except as
otherwise noted, the discussion below is based on the OID Regulations.
Original Issue Discount. Certain Regular Certificates may have "original
issue discount." An Owner must include original issue discount in income as it
accrues, without regard to the timing of payments.
The total amount of original issue discount on a Regular Certificate is
the excess of its "stated redemption price at maturity" over its "issue price."
The issue price for any Regular Certificate is the price (including any accrued
interest) at which a substantial portion of the Class of Certificates including
such Regular Certificate are first sold to the public. In general, the stated
redemption price at maturity is the sum of all payments made on the Regular
Certificate, other than payments of interest that (i) are actually payable at
least annually over the entire life of the Certificates and (ii) are based on a
single fixed rate or variable rate (or certain combinations of fixed and
variable rates). The stated redemption price at maturity of a Regular
Certificate always includes its original principal amount, but generally does
not include distributions of stated interest, except in the case of accrual
certificates, and, as discussed below, Interest Only Certificates. An "Interest
Only Certificate" is a Certificate entitled to receive distributions of some or
all of the interest on the Mortgage Loans or other assets in a REMIC Pool and
that has either a notional or nominal principal amount. Special rules for
Regular Certificates that provide for interest based on a variable rate are
discussed below in "Income from Regular Certificates--Variable Rate Regular
Certificates".
With respect to an Interest Only Certificate, the stated redemption price
at maturity is likely to be the sum of all payments thereon, determined in
accordance with the Prepayment Assumption (as defined below). In that event,
Interest Only Certificates would always have original issue discount.
Alternatively, in the case of an Interest Only Certificate with some principal
amount, the stated redemption price at maturity might be determined under the
general rules described in the preceding paragraph. If, applying those rules,
the stated redemption price at maturity were considered to equal the principal
amount of
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such Certificate, then the rules described below under "Premium" would apply.
The Prepayment Assumption is the assumed rate of prepayment of the Mortgage
Loans used in pricing the Regular Certificates. The Prepayment Assumption will
be set forth in the related Prospectus Supplement.
Under a de minimis rule, original issue discount on a Regular Certificate
will be considered zero if it is less than 0.25% of the Certificate's stated
redemption price at maturity multiplied by the Certificate's weighted average
maturity. The weighted average maturity of a Regular Certificate is computed
based on the number of full years (i.e., rounding down partial years) each
distribution of principal (or other amount included in the stated redemption
price at maturity) is scheduled to be outstanding. The schedule of such
distributions likely should be determined in accordance with the Prepayment
Assumption.
The Owner of a Regular Certificate generally must include in income the
original issue discount that accrues for each day on which the Owner holds such
Certificate, including the date of purchase, but excluding the date of
disposition. The original issue discount accruing in any period equals:
PV End + Dist - PV Beg
Where:
PV End = present value of all remaining distributions to be made as of the end
of the period;
Dist = distributions made during the period includable in the stated
redemption price at maturity; and
PV Beg = present value of all remaining distributions as of the beginning of
the period.
The present value of the remaining distributions is calculated based on (i) the
original yield to maturity of the Regular Certificate, (ii) events (including
actual prepayments) that have occurred prior to the end of the period and (iii)
the Prepayment Assumption. For these purposes, the original yield to maturity
of a Regular Certificate will be calculated based on its issue price, assuming
that the Certificate will be prepaid in all periods in accordance with the
Prepayment Assumption, and with compounding at the end of each accrual period
used in the formula.
Assuming the Regular Certificates have monthly Distribution Dates,
original issue discount would be computed under the formula generally for the
one-month periods (or shorter initial period) ending on each Distribution Date.
The original issue discount accruing during any accrual period is divided by
the number of days in the period to determine the daily portion of original
issue discount for each day.
The daily portions of original issue discount generally will increase if
prepayments on the underlying Mortgage Loans exceed the Prepayment Assumption
and decrease if prepayments are slower than the Prepayment Assumption (changes
in the rate of prepayments having the opposite effect in the case of an
Interest Only Certificate). If the relative principal payment priorities of the
Classes of Regular Certificates of a Series change, any increase or decrease in
the present value of the remaining payments to be made on any such Class will
affect the computation of original issue discount for the period in which the
change in payment priority occurs.
If original issue discount computed as described above is negative for any
period, the Owner generally will not be allowed a current deduction for the
negative amount but instead will be entitled to offset such amount only against
future positive original issue discount from such Certificate. However, while
not free from doubt, such an Owner may be entitled to deduct "negative original
issue discount" to the extent the Owner's adjusted basis (as defined in "Sale
or Exchange of Certificates" below) in the Certificate remaining after such
deduction is not less than the principal amount of the Certificate.
Acquisition Premium. If an Owner of a Regular Certificate acquires such
Certificate at a price greater than its "adjusted issue price," but less than
its remaining stated redemption price at maturity, the daily portion for any
day (as computed above) is reduced by an amount equal to the product of (i)
such daily portion and (ii) a fraction, the numerator of which is the amount by
which the price exceeds the adjusted issue price and the denominator of which
is the sum of the daily portions for such Regular Certificate for all days on
and after the date of purchase. The adjusted issue price of a Regular
Certificate on any given day is its issue price, increased by all original
issue discount that has accrued on such Certificate and reduced by the amount
of all previous distributions on such Certificate of amounts included in its
stated redemption price at maturity.
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Market Discount. A Regular Certificate may have market discount (as
defined in the Code). Market discount equals the excess of the adjusted issue
price of a Certificate over the Owner's adjusted basis in the Certificate. The
Owner of a Certificate with market discount must report ordinary interest
income, as the Owner receives distributions on the Certificate of principal or
other amounts included in its stated redemption price at maturity, equal to the
lesser of (a) the excess of the amount of those distributions over the amount,
if any, of accrued original issue discount on the Certificate or (b) the
portion of the market discount that has accrued and not previously been
included in income. Also, such Owner must treat gain from the disposition of
the Certificate as ordinary income to the extent of any accrued, but
unrecognized, market discount. Alternatively, an Owner may elect in any taxable
year to include market discount in income currently as it accrues on all market
discount instruments acquired by the Owner in that year or thereafter. An Owner
may revoke such an election only with the consent of the Internal Revenue
Service.
In general terms, market discount on a Regular Certificate may be treated,
at the Owner's election, as accruing either (a) on the basis of a constant
yield (similar to the method described above for accruing original issue
discount) or (b) alternatively, either (i) in the case of a Regular Certificate
issued without original issue discount, in the ratio of stated interest
distributable in the relevant period to the total stated interest remaining to
be distributed from the beginning of such period (computed taking into account
the Prepayment Assumption) or (ii) in the case of a Regular Certificate issued
with original issue discount, in the ratio of the amount of original issue
discount accruing in the relevant period to the total remaining original issue
discount at the beginning of such period. An election to accrue market discount
on a Regular Certificate on a constant yield basis is irrevocable with respect
to that Certificate.
An Owner may be required to defer a portion of the deduction for interest
expense on any indebtedness that the Owner incurs or maintains in order to
purchase or carry a Regular Certificate that has market discount. The deferred
amount would not exceed the market discount that has accrued but not been taken
into income. Any such deferred interest expense is, in general, allowed as a
deduction not later than the year in which the related market discount income
is recognized.
Market discount with respect to a Regular Certificate will be considered
to be zero if such market discount is de minimis under a rule similar to that
described above in the fourth paragraph under "Original Issue Discount". Owners
should consult their own tax advisors regarding the application of the market
discount rules as well as the advisability of making any election with respect
to market discount.
Discount on a Regular Certificate that is neither original issue discount
nor market discount, as defined above, must be allocated ratably among the
principal payments on the Certificate and included in income (as gain from the
sale or exchange of the Certificate) as the related principal payments are made
(whether as scheduled payments or prepayments).
Premium. A Regular Certificate, other than an accrual certificate or, as
discussed above under "Original Issue Discount", an Interest Only Certificate,
purchased at a cost (net of accrued interest) greater than its principal amount
generally is considered to be purchased at a premium. The Owner may elect under
Code Section 171 to amortize such premium under the constant yield method,
using the Prepayment Assumption. To the extent the amortized premium is
allocable to interest income from the Regular Certificate, it is treated as an
offset to such interest rather than as a separate deduction. An election made
by an Owner would generally apply to all its debt instruments and may not be
revoked without the consent of the Internal Revenue Service.
Special Election to Apply OID Rules. In lieu of the rules described above
with respect to de minimis discount, acquisition premium, market discount and
premium, an Owner of a Regular Certificate may elect to accrue such discount,
or adjust for such premium, by applying the principles of the OID rules
described above. An election made by a taxpayer with respect to one obligation
can affect other obligations it holds. Owners should consult with their tax
advisors regarding the merits of making this election.
Variable Rate Regular Certificates. The Regular Certificates may provide
for interest that varies based on an interest rate index. The OID Regulations
provide special rules for calculating income from
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certain "variable rate debt instruments" or "VRDIs." A debt instrument must
meet certain technical requirements to qualify as a VRDI, which are outlined in
the next paragraph. Under the regulations, income on a VRDI is calculated by
(1) creating a hypothetical debt instrument that pays fixed interest at rates
equivalent to the variable interest, (2) applying the original issue discount
rules of the Code to that fixed rate instrument, and (3) adjusting the income
accruing in any accrual period by the difference between the assumed fixed
interest amount and the actual amount for the period. In general, where a
variable rate on a debt instrument is based on an interest rate index (such as
LIBOR), a fixed rate equivalent to a variable rate is determined based on the
value of the index as of the issue date of the debt instrument. In cases where
rates are reset at different intervals over the life of a VRDI, adjustments are
made to ensure that the equivalent fixed rate for each accrual period is based
on the same reset interval.
A debt instrument must meet a number of requirements in order to qualify
as a VRDI. A VRDI cannot be issued at a premium above its principal amount that
exceeds a specified percentage of its principal amount (15%, or if less 1.5%
times its weighted average life). As a result, Interest Only Certificates will
never be VRDIs. Also, a debt instrument that pays interest based on a multiple
of an interest rate index is not a VRDI if the multiple is less than 0.65 or
greater than 1.35, unless, in general, interest is paid based on a single
formula that lasts over the life of the instrument. A debt instrument is not a
VRDI if it is subject to caps and floors, unless they remain the same over the
life of the instrument or are not expected to change significantly the yield on
the instrument. Variable rate Regular Certificates other than Interest Only
Certificates may or may not qualify as VRDIs depending on their terms.
In a case where a variable rate Regular Certificate does not qualify as a
VRDI, it will be treated under the OID Regulations as a contingent payment debt
instrument. The Internal Revenue Service issued final regulations addressing
contingent payment debt instruments, but such regulations are not applicable by
their terms to REMIC regular interests. Because no guidance has been provided
with regard to types of variable rate interests other than VRDIs, until further
guidance with regard to such variable rate Regular Certificates is forthcoming,
one method of calculating income on such a Regular Certificate that appears to
be reasonable would be to apply the principles governing VRDIs outlined above.
Subordinated Certificates. Certain Series of Certificates may contain one
or more Classes of Subordinated Certificates. In the event there are defaults
or delinquencies on the related Mortgage Loans, amounts that otherwise would be
distributed on a Class of Subordinated Certificates may instead be distributed
on other, more senior Classes of Certificates. Since Owners of Regular
Certificates are required to report income under an accrual method, Owners of
Subordinated Certificates will be required to report income without giving
effect to delays and reductions in distributions on such Certificates
attributable to defaults or delinquencies on the Mortgage Loans, except to the
extent that it can be established that amounts are uncollectible. As a result,
the amount of income reported by an Owner of a Subordinated Certificate in any
period could significantly exceed the amount of cash distributed to such Owner
in that period. The Owner eventually will be allowed a loss (or will be allowed
to report a lesser amount of income) to the extent that the aggregate amount of
distributions on the Subordinated Certificate is reduced as a result of
defaults and delinquencies on the Mortgage Loans. Such a loss could in some
circumstances be a capital loss. Also, the timing and amount of such losses or
reductions in income are uncertain. Owners of Subordinated Certificates should
consult their tax advisors on these points.
Income from Residual Certificates.
Taxation of REMIC Income. Generally, Owners of Residual Certificates in a
REMIC Pool ("Residual Owners") must report ordinary income or loss equal to
their pro rata shares (based on the portion of all Residual Certificates they
own) of the taxable income or net loss of the REMIC. Such income must be
reported regardless of the timing or amounts of distributions on the Residual
Certificates.
The taxable income of a REMIC Pool is generally determined under the
accrual method of accounting in the same manner as the taxable income of an
individual taxpayer. Taxable income is generally gross income, including
interest and original issue discount income, if any, on the assets of the REMIC
Pool and income from the amortization of any premium on Regular Certificates,
minus
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deductions. Market discount (as defined in the Code) with respect to Mortgage
Loans held by a REMIC Pool is recognized in the same fashion as if it were
original issue discount. Deductions include interest and original issue
discount expense on the Regular Certificates, reasonable servicing fees
attributable to the REMIC Pool, other administrative expenses and amortization
of any premium on assets of the REMIC Pool. As previously discussed, the timing
of recognition of "negative original issue discount," if any, on a Regular
Certificate is uncertain; as a result, the timing of recognition of the
corresponding income to the REMIC Pool is also uncertain.
If the Trust Fund consists of an Upper-Tier REMIC and a Lower-Tier REMIC,
the regular interests issued by the Lower-Tier REMIC to the Upper-Tier REMIC
will be treated as a single debt instrument for purposes of the original issue
discount provisions. A determination that these regular interests can not be
treated as a single debt instrument would have a material adverse effect on the
Owners of Residual Certificates issued by the Lower-Tier REMIC.
A Residual Owner may not amortize the cost of its Residual Certificate.
Taxable income of the REMIC Pool, however, will not include cash received by
the REMIC Pool that represents a recovery of the REMIC Pool's initial basis in
its assets, and such basis will include the issue price of the Residual
Certificates (assuming the issue price is positive). Such recovery of basis by
the REMIC Pool will have the effect of amortization of the issue price of the
Residual Certificate over its life. The period of time over which such issue
price is effectively amortized, however, may be longer than the economic life
of the Residual Certificate. The issue price of a Residual Certificate is the
price at which a substantial portion of the Class of Certificates including the
Residual Certificate are first sold to the public (or if the Residual
Certificate is not publicly offered, the price paid by the first buyer).
A subsequent Residual Owner must report the same amounts of taxable income
or net loss attributable to the REMIC Pool as an original Owner. No adjustments
are made to reflect the purchase price.
Losses. A Residual Owner that is allocated a net loss of the REMIC Pool
may not deduct such loss currently to the extent it exceeds the Owner's
adjusted basis (as defined in "Sale or Exchange of Certificates" below) in its
Residual Certificate. A Residual Owner that is a U.S. person (as defined below
in "Taxation of Certain Foreign Investors"), however, may carry over any
disallowed loss to offset any taxable income generated by the same REMIC Pool.
Excess Inclusions. A portion of the taxable income allocated to a Residual
Certificate is subject to special tax rules. That portion, referred to as an
"excess inclusion," is calculated for each calendar quarter and equals the
excess of such taxable income for the quarter over the daily accruals for the
quarter. The daily accruals equal the product of (i) 120% of the federal
long-term rate under Code Section 1274(d) for the month which includes the
Closing Date (determined on the basis of quarterly compounding and properly
adjusted for the length of the quarter) and (ii) the adjusted issue price of
the Certificate at the beginning of such quarter. The adjusted issue price of a
Residual Certificate at the beginning of a quarter is the issue price of the
Certificate, increased by the amount of daily accruals on the Certificate for
all prior quarters, and decreased (but not below zero) by any prior
distributions on the Certificate. If the aggregate value of the Residual
Certificates is not considered to be "significant," then to the extent provided
in Treasury regulations, a Residual Owner's entire share of REMIC taxable
income will be treated as an excess inclusion. The regulations that have been
adopted under Code Sections 860A through 86OG (the "REMIC Regulations") do not
contain such a rule.
Excess inclusions generally may not be offset by unrelated losses or loss
carryforwards or carrybacks of a Residual Owner. In addition, for all taxable
years beginning after August 20, 1996, and unless a Residual Owner elects
otherwise for all other taxable years, the alternate minimum taxable income of
a Residual Owner for a taxable year may not be less than the Residual Owner's
excess inclusions for the taxable year and excess inclusions are disregarded
when calculating a Residual Owner's alternate minimum tax net operating loss
deduction.
Excess inclusions are treated as unrelated business taxable income for an
organization subject to the tax on unrelated business income. In addition,
under Treasury regulations yet to be issued, if a real estate investment trust,
regulated investment company or certain other pass-through entities are
Residual Owners, a portion of the distributions made by such entities may be
treated as excess inclusions.
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Distributions. Distributions on a Residual Certificate (whether at their
scheduled times or as a result of prepayments) generally will not result in any
taxable income or loss to the Residual Owner. If the amount of any distribution
exceeds a Residual Owner's adjusted basis in its Residual Certificate, however,
the Residual Owner will recognize gain (treated as gain from the sale or
exchange of its Residual Certificate) to the extent of such excess. See "Sale
or Exchange of Certificates" below.
Prohibited Transactions; Special Taxes. Net income recognized by a REMIC
Pool from "prohibited transactions" is subject to a 100% tax and is disregarded
in calculating the REMIC Pool's taxable income. In addition, a REMIC Pool is
subject to federal income tax at the highest corporate rate on "net income from
foreclosure property" (which has a technical definition). A 100% tax also
applies to certain contributions to a REMIC Pool made after it is formed. It is
not anticipated that any REMIC Pool will (i) engage in prohibited transactions
in which it recognizes a significant amount of net income, (ii) receive
contributions of property that are subject to tax, or (iii) derive a
significant amount of net income from foreclosure property that is subject to
tax.
Negative Value Residual Certificates. The federal income tax treatment of
any consideration paid to a transferee on a transfer of a Residual Certificate
is unclear. Such a transferee should consult its tax advisor. The preamble to
the REMIC Regulations indicates that the Internal Revenue Service may issue
future guidance on the tax treatment of such payments.
In addition, on December 23, 1996, the Internal Revenue Service released
final regulations under Code Section 475 (the "Mark to Market Regulations")
relating to the requirement that a dealer mark certain securities to market.
The Mark to Market Regulations provide that a residual interest is not a
"security" for the purposes of Section 475 of the Code, and thus is not subject
to the mark to market rules.
THE METHOD OF TAXATION OF RESIDUAL CERTIFICATES DESCRIBED IN THIS SECTION
CAN PRODUCE A SIGNIFICANTLY LESS FAVORABLE AFTER-TAX RETURN FOR A RESIDUAL
CERTIFICATE THAN WOULD BE THE CASE IF THE CERTIFICATE WERE TAXABLE AS A DEBT
INSTRUMENT. ALSO, A RESIDUAL OWNER'S RETURN MAY BE ADVERSELY AFFECTED BY THE
EXCESS INCLUSIONS RULES DESCRIBED ABOVE. IN CERTAIN PERIODS, TAXABLE INCOME AND
THE RESULTING TAX LIABILITY FOR A RESIDUAL OWNER MAY EXCEED ANY DISTRIBUTIONS
IT RECEIVES. IN ADDITION, A SUBSTANTIAL TAX MAY BE IMPOSED ON CERTAIN
TRANSFERORS OF A RESIDUAL CERTIFICATE AND CERTAIN RESIDUAL OWNERS THAT ARE
"PASS-THRU" ENTITIES. SEE "TRANSFERS OF RESIDUAL CERTIFICATES" BELOW. INVESTORS
SHOULD CONSULT THEIR TAX ADVISORS BEFORE PURCHASING A RESIDUAL CERTIFICATE.
Sale or Exchange of Certificates.
An Owner generally will recognize gain or loss upon sale or exchange of a
Regular or Residual Certificate equal to the difference between the amount
realized and the Owner's adjusted basis in the Certificate. The adjusted basis
in a Certificate generally will equal the cost of the Certificate, increased by
income previously recognized, and reduced (but not below zero) by previous
distributions, and by any amortized premium in the case of a Regular
Certificate, or net losses allowed as a deduction in the case of a Residual
Certificate.
Except as described below, any gain or loss on the sale or exchange of a
Certificate held as a capital asset will be capital gain or loss and will be
long-term or short-term depending on whether the Certificate has been held for
more than one year. Such gain or loss will be ordinary income or loss (i) for a
bank or thrift institution, and (ii) in the case of a Regular Certificate, (a)
to the extent of any accrued, but unrecognized, market discount, or (b) to the
extent income recognized by the Owner is less than the income that would have
been recognized if the yield on such Certificate were 110% of the applicable
federal rate under Code Section 1274(d).
A Residual Owner should be allowed a loss upon termination of the REMIC
Pool equal to the amount of the Owner's remaining adjusted basis in its
Residual Certificates. Whether the termination will be treated as a sale or
exchange (resulting in a capital loss) is unclear.
Except as provided in Treasury regulations, the wash sale rules of Code
Section 1091 will apply to dispositions of a Residual Certificate where the
seller of the interest, during the period beginning six
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months before the sale or disposition of the interest and ending six months
after such sale or disposition, acquires (or enters into any other transaction
that results in the application of Code Section 1091) any REMIC residual
interest, or any interest in a "taxable mortgage pool" (such as a non-REMIC
owner trust) that is economically comparable to a residual interest.
Taxation of Certain Foreign Investors.
Regular Certificates. A Regular Certificate held by an Owner that is a
non-U.S. person (as defined below), and that has no connection with the United
States other than owning the Certificate, will not be subject to U.S.
withholding or income tax with respect to the Certificate provided such Owner
(i) is not a "10-percent shareholder" within the meaning of Code Section
871(h)(3)(B) or a controlled foreign corporation described in Code Section
881(c)(3)(C), and (ii) provides an appropriate statement, signed under
penalties of perjury, identifying the Owner and stating, among other things,
that the Owner is a non-U.S. person and provided further, with respect to
interest income from a Regular Certificate (including original issue discount),
that such interest is not "contingent". If these conditions are not met, a 30%
withholding tax will apply to interest (including original issue discount)
unless an income tax treaty reduces or eliminates such tax or unless the
interest is effectively connected with the conduct of a trade or business
within the United States by such Owner. In the latter case, such Owner will be
subject to United States federal income tax with respect to all income from the
Certificate at regular rates then applicable to U.S. taxpayers (and in the case
of a corporation, possibly also the branch profits tax). Prospective investors
who are non-U.S. persons should consult their tax advisors as to the effect of
new withholdings Treasury regulations which will be effective after December
31, 1999.
The term "non-U.S. person" means any person other than a U.S. person. A
U.S. person is a citizen or resident of the United States, a corporation,
partnership or other entity created or organized in or under the laws of the
United States or any political subdivision thereof, an estate that is subject
to U.S. federal income tax regardless of the source of its income or a trust if
(i) a U.S. court is able to exercise primary supervision over the trust's
administration and (ii) one or more U.S. fiduciaries have the authority to
control all of the trust's substantial decisions.
Residual Certificates. A Residual Owner that is a non-U.S. person, and
that has no connection with the United States other than owning a Residual
Certificate, will not be subject to U.S. withholding or income tax with respect
to the Certificate (other than with respect to excess inclusions) provided that
(i) the conditions described in the second preceding paragraph with respect to
Regular Certificates are met and (ii) in the case of a Residual Certificate in
a REMIC Pool holding Mortgage Loans, the Mortgage Loans were originated after
July 18, 1984. Excess inclusions are subject to a 30% withholding tax in all
events (notwithstanding any contrary tax treaty provisions) when distributed to
the Residual Owner (or when the Residual Certificate is disposed of). The Code
grants the Treasury Department authority to issue regulations requiring excess
inclusions to be taken into account earlier if necessary to prevent avoidance
of tax. The REMIC Regulations do not contain such a rule. The preamble thereto
states that the Internal Revenue Service is considering issuing regulations
concerning withholding on distributions to foreign holders of residual
interests to satisfy accrued tax liability due to excess inclusions.
With respect to a Residual Certificate that has been held at any time by a
non-U.S. person, the Trustee (or its agent) will be entitled to withhold (and
to pay to the Internal Revenue Service) any portion of any payment on such
Residual Certificate that the Trustee reasonably determines is required to be
withheld. If the Trustee (or its agent) reasonably determines that a more
accurate determination of the amount required to be withheld from a
distribution can be made within a reasonable period after the scheduled date
for such distribution, it may hold such distribution in trust for the Residual
Owner until such determination can be made.
Special tax rules and restrictions that apply to transfers of Residual
Certificates to and from non-U.S. persons are discussed in the next section.
Transfers of Residual Certificates.
Special tax rules and restrictions apply to transfers of Residual
Certificates to disqualified organizations or foreign investors, and to
transfers of noneconomic Residual Certificates.
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Disqualified Organizations. In order to comply with the REMIC rules of the
Code, the Agreement will provide that no legal or beneficial interest in a
Residual Certificate may be transferred to, or registered in the name of, any
person unless (i) the proposed purchaser provides to the Trustee an "affidavit"
(within the meaning of the REMIC Regulations) to the effect that, among other
items, such transferee is not a "disqualified organization" (as defined below),
is not purchasing a Residual Certificate as an agent for a disqualified
organization (i.e., as a broker, nominee, or other middleman) and (ii) the
transferor states in writing to the Trustee that it has no actual knowledge
that such affidavit is false.
If despite these restrictions a Residual Certificate is transferred to a
disqualified organization, the transfer may result in a tax equal to the
product of (i) the present value of the total anticipated future excess
inclusions with respect to such Certificate and (ii) the highest corporate
marginal federal income tax rate. Such a tax generally is imposed on the
transferor, except that if the transfer is through an agent for a disqualified
organization, the agent is liable for the tax. A transferor is not liable for
such tax if the transferee furnishes to the transferor an affidavit that the
transferee is not a disqualified organization and, as of the time of the
transfer, the transferor does not have actual knowledge that the affidavit is
false.
A disqualified organization may hold an interest in a REMIC Certificate
through a "pass-thru entity" (as defined below). In that event, the pass-thru
entity is subject to tax (at the highest corporate marginal federal income tax
rate) on excess inclusions allocable to the disqualified organization. However,
such tax will not apply to the extent the pass-thru entity receives affidavits
from record holders of interests in the entity stating that they are not
disqualified organizations and the entity does not have actual knowledge that
the affidavits are false except that an "electing large partnership" will be
deemed to be owned by disqualified organizations and will pay a corporate tax
on any excess inclusions.
For these purposes, (i) "disqualified organization" means the United
States, any state or political subdivision thereof, any foreign government, any
international organization, any agency or instrumentality of any of the
foregoing, certain organizations that are exempt from taxation under the Code
(including tax on excess inclusions) and certain corporations operating on a
cooperative basis, (ii) "pass-thru entity" means any regulated investment
company, real estate investment trust, common trust fund, partnership, trust or
estate and certain corporations operating on a cooperative basis and (iii)
"electing large partnership" generally means any non-service partnership with
more than 100 members that elects to apply certain simplified reporting
provisions of the Code. Except as may be provided in Treasury regulations, any
person holding an interest in a pass-thru entity as a nominee for another will,
with respect to that interest, be treated as a pass-thru entity.
Foreign Investors. Under the REMIC Regulations, a transfer of a Residual
Certificate to a non-U.S. person that will not hold the Certificate in
connection with a U.S. trade or business will be disregarded for all federal
tax purposes if the Certificate has "tax avoidance potential." A Residual
Certificate has tax avoidance potential unless, at the time of transfer, the
transferor reasonably expects that:
(i) for each excess inclusion, the REMIC will distribute to the transferee
residual interest holder an amount that will equal at least 30 percent of the
excess inclusion, and
(ii) each such amount will be distributed at or after the time at which
the excess inclusion accrues and not later than the close of the calendar year
following the calendar year of accrual.
A transferor has such reasonable expectation if the above test would be
met assuming that the REMIC's Mortgage Loans will prepay at each rate between
50 percent and 200 percent of the Prepayment Assumption.
The REMIC Regulations also provide that a transfer of a Residual
Certificate from a non-U.S. person to a U.S. person (or to a non-U.S. person
that will hold the Certificate in connection with a U.S. trade or business) is
disregarded if the transfer has "the effect of allowing the transferor to avoid
tax on accrued excess inclusions."
In light of these provisions, the Agreement provides that a Residual
Certificate may not be purchased by or transferred to any person that is not a
U.S. person, unless (i) such person holds the Certificate in connection with
the conduct of a trade or business within the United States and furnishes
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the transferor and the Trustee with an effective Internal Revenue Service Form
4224, or (ii) the transferee delivers to both the transferor and the Trustee an
opinion of nationally recognized tax counsel to the effect that such transfer
is in accordance with the requirements of the Code and the regulations
promulgated thereunder and that such transfer will not be disregarded for
federal income tax purposes.
Noneconomic Residual Certificates. Under the REMIC Regulations, a transfer
of a "noneconomic" Residual Certificate will be disregarded for all federal
income tax purposes if a significant purpose of the transfer is to impede the
assessment or collection of tax. Such a purpose exists if the transferor, at
the time of the transfer, either knew or should have known that the transferee
would be unwilling or unable to pay taxes due on its share of the taxable
income of the REMIC. A transferor is presumed to lack such knowledge if:
(i) the transferor conducted, at the time of the transfer, a reasonable
investigation of the financial condition of the transferee and found that the
transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the transferee will not continue to pay
its debts as they become due, and
(ii) the transferee represents to the transferor that it understands that,
as the holder of the noneconomic residual interest, it may incur tax
liabilities in excess of any cash flows generated by the interest and that it
intends to pay taxes associated with holding the residual interest as they
become due.
A Residual Certificate (including a Certificate with significant value at
issuance) is noneconomic unless, at the time of the transfer, (i) the present
value of the expected future distributions on the Certificate at least equals
the product of the present value of the anticipated excess inclusions and the
highest corporate income tax rate in effect for the year in which the transfer
occurs, and (ii) the transferor reasonably expects that the transferee will
receive distributions on the Certificate, at or after the time at which taxes
accrue, in an amount sufficient to pay the taxes.
The Agreement will provide that no legal or beneficial interest in a
Residual Certificate may be transferred to, or registered in the name of, any
person unless the proposed transferee provides to the Trustee the transferee
representations described in the preceding paragraph, and agrees that it will
not transfer the Certificate to any person unless that person agrees to comply
with the same restrictions on future transfers and the transferor represents to
the Trustee that it has no reason to believe that such representations are
false.
Servicing Compensation and Other REMIC Pool Expenses.
Under Code Section 67, an individual, estate or trust is allowed certain
itemized deductions only to the extent that such deductions, in the aggregate,
exceed 2% of the Owner's adjusted gross income, and such a person is not
allowed such deductions to any extent in computing its alternative minimum tax
liability. Under Treasury regulations, if such a person is an Owner of a REMIC
Certificate, the REMIC Pool is required to allocate to such a person its share
of the servicing fees and administrative expenses paid by a REMIC together with
an equal amount of income. Those fees and expenses are deductible as an offset
to the additional income, but subject to the 2% floor.
In the case of a REMIC Pool that has multiple classes of Regular
Certificates with staggered maturities, fees and expenses of the REMIC Pool
would be allocated entirely to the Owners of Residual Certificates. However, if
the REMIC Pool were a "single-class REMIC" as defined in applicable Treasury
regulations, such deductions would be allocated proportionately among the
Regular and Residual Certificates.
Reporting and Administrative Matters.
Annual reports will be made to the Internal Revenue Service, and to
Holders of record of Regular Certificates, and Owners of Regular Certificates
holding through a broker, nominee or other middleman, that are not excepted
from the reporting requirements, of accrued interest, original issue discount,
information necessary to compute accruals of market discount, information
regarding the percentage of the REMIC Pool's assets meeting the qualified
assets tests described above under "Status of
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Certificates" and, where relevant, allocated amounts of servicing fees and
other Code Section 67 expenses. Holders not receiving such reports may obtain
such information from the related REMIC by contacting the person designated in
IRS Publication 938. Quarterly reports will be made to Residual Holders showing
their allocable shares of income or loss from the REMIC Pool, excess
inclusions, and Code Section 67 expenses.
The Trustee or its agent will sign and file federal income tax returns for
each REMIC Pool. To the extent allowable and if so specified in the related
Prospectus Supplement, the Owner of a Residual Certificate holding the largest
percentage interest will act as the tax matters person for each REMIC Pool.
Each Owner of a Residual Certificate, by the acceptance of its Residual
Certificate, agrees that the Trustee will act as the Owner's agent in the
performance of any duties required of the Owner in the event that the Owner is
the tax matters person.
An Owner of a Residual Certificate is required to treat items on its
federal income tax return consistently with the treatment of the items on the
REMIC Pool's return, unless the Owner owns 100% of the Residual Certificate for
the entire calendar year or the Owner either files a statement identifying the
inconsistency or establishes that the inconsistency resulted from incorrect
information received from the REMIC Pool. The Internal Revenue Service may
assess a deficiency resulting from a failure to comply with the consistency
requirement without instituting an administrative proceeding at the REMIC
level. Any person that holds a Residual Certificate as a nominee for another
person may be required to furnish the REMIC Pool, in a manner to be provided in
Treasury regulations, the name and address of such other person and other
information.
NON-REMIC CERTIFICATES
If no REMIC election is made, the Trust Fund may either elect to be
treated as a "financial asset securitization investment trust" ("FASIT") or
qualify as a grantor trust. The Prospectus Supplement for each Series of
Certificates for which no REMIC election is made will address the material
federal income tax consequences of an investment in such Certificates.
STATE TAX CONSIDERATIONS
In addition to the Federal income tax consequences described in "FEDERAL
INCOME TAX CONSEQUENCES," potential investors should consider the state income
tax consequences of the acquisition, ownership, and disposition of the
Certificates. State income tax law may differ substantially from the
corresponding federal law, and this discussion does not purport to describe any
aspect of the income tax laws of any state. Therefore, potential investors
should consult their own tax advisors with respect to the various state tax
consequences of an investment in the Certificates.
ERISA CONSIDERATIONS
The Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
imposes certain requirements on employee benefit plans subject to ERISA ("ERISA
Plans") and prohibits certain transactions between ERISA Plans and persons who
are parties in interest (as defined under ERISA) ("parties in interest") with
respect to such Plans. The Code prohibits a similar set of transactions between
certain plans ("Code Plans," and together with ERISA Plans, "Plans") and
persons who are disqualified persons (as defined in the Code) ("Disqualified
Persons") with respect to Code Plans.
Investments by ERISA Plans and entities the assets of which are deemed to
include plan assets are subject to ERISA's general fiduciary requirements,
including the requirement of investment prudence and diversification and the
requirement that investments be made in accordance with the documents governing
the ERISA Plan. Before investing in a Certificate, an ERISA Plan fiduciary
should consider, among other factors, whether to do so is appropriate in view
of the overall investment policy and liquidity needs of the ERISA Plan. Such
fiduciary should especially consider the sensitivity of the investments to the
rate of principal payments (including prepayments) on the Mortgage Loans, as
discussed in the Prospectus Supplement related to a Series.
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PROHIBITED TRANSACTIONS
Section 406 of ERISA and Section 4975 of the Code prohibit parties in
interest and disqualified persons with respect to ERISA Plans and Code Plans
from engaging in certain transactions involving such Plans and their assets
unless a statutory or administrative exemption applies to the transaction.
Section 4975 of the Code and Sections 502(i) and 502(l) of ERISA provide for
the imposition of certain excise taxes and civil penalties on certain persons
that engage or participate in such prohibited transactions. The Depositor, the
Master Servicer, the Special Servicer, if any, the Trustee or certain
affiliates thereof might be considered or might become parties in interest or
disqualified persons with respect to an ERISA Plan or a Code Plan. If so, the
acquisition or holding of Certificates by or on behalf of such Plan could be
considered to give rise to a "prohibited transaction" within the meaning of
ERISA and/or the Code unless an administrative exemption described below or
some other exemption is available.
Special caution should be exercised before the assets of a Plan are used
to purchase a Certificate if, with respect to such assets, the Depositor, the
Master Servicer, the Special Servicer, if any, the Trustee or an affiliate
thereof either: (a) has investment discretion with respect to the investment of
such assets of such Plan; or (b) has authority or responsibility to give, or
regularly gives investment advise with respect to such assets for a fee and
pursuant to an agreement or understanding that such advice will serve as a
primary basis for investment decisions with respect to such assets and that
such advice will be based on the particular investment needs of the Plan.
Further, if the assets included in a Trust Fund were deemed to constitute
"plan assets," it is possible that an ERISA Plan's investment in the
Certificates might be deemed to constitute a delegation, under ERISA, of the
duty to manage plan assets by the fiduciary deciding to invest in the
Certificates, and certain transactions involved in the operation of the Trust
Fund might be deemed to constitute prohibited transactions under ERISA and/or
the Code. Neither ERISA nor the Code define the term "plan assets."
The U.S. Department of Labor (the "Department") has issued regulations
(the "Regulations") concerning whether or not a Plan's assets would be deemed
to include an interest in the underlying assets of an entity (such as the Trust
Fund) for purposes of the reporting and disclosure and general fiduciary
responsibility provisions of ERISA, as well as for the prohibited transaction
provisions of ERISA and the Code, if the Plan acquires an "equity interest"
(such as a Certificate) in such an entity.
Certain exceptions are provided in the Regulations whereby an investing
Plan's assets would be deemed merely to include its interest in the
Certificates instead of being deemed to include an interest in the assets of
the Trust Fund. However, it cannot be predicted in advance nor can there be a
continuing assurance whether such exceptions may be met, because of the factual
nature of certain of the rules set forth in the Regulations. For example, one
of the exceptions in the Regulations states that the underlying assets of an
entity will not be considered "plan assets" if less than 25% of the value of
all classes of equity interest are held by "benefit plan investors," which are
defined as ERISA Plans, Code Plans, and employee benefit plans not subject to
ERISA (for example, governmental plans), but this exemption is tested
immediately after each acquisition of an equity interest in the entity whether
upon initial issuance or in the secondary market.
Pursuant to the Regulations, if the assets of the Trust Fund were deemed
to be plan assets by reason of a Plan's investment in any Certificates, such
plan assets would include an undivided interest in the Mortgage Loans, the
mortgages underlying the Mortgage Loans and any other assets held in the Trust
Fund. Therefore, because the Mortgage Loans and other assets held in the Trust
Fund may be deemed to be the assets of each Plan that purchases Certificates,
in the absence of an exemption, the purchase, sale or holding of Certificates
of any Series or Class by a Plan might result in a prohibited transaction and
the imposition of civil penalties or excise taxes. The Department has issued
administrative exemptions from application of certain prohibited transaction
restrictions of ERISA and the Code to several underwriters of mortgage-backed
securities (each, an "Underwriter's Exemption"). Such an Underwriter's
Exemption can only apply to mortgage-backed securities which, among other
conditions, are sold in an offering with respect to which such underwriter
serves as the sole or a managing underwriter, or as a selling or placement
agent. If such an Underwriter's Exemption might be applicable to a Series of
Certificates, the related Prospectus Supplement will refer to such possibility.
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In considering an investment in the Offered Certificates, a Plan fiduciary
should also consider the availability of prohibited transaction exemptions
promulgated by the DOL including, among others, Prohibited Transaction Class
Exemption ("PTCE") 75-1, which exempts certain transactions involving Plans and
certain broker-dealers, reporting dealers and banks; PTCE 90-1, which exempts
certain transactions between insurance company separate accounts and parties in
interest or Disqualified Persons; PTCE 91-38, which exempts certain
transactions between bank collective investment funds and parties in interest
or Disqualified Persons; PTCE 84-14, which exempts certain transactions
effected on behalf of a Plan by a "qualified professional asset manager"; PTCE
95-60, which exempts certain transactions between insurance company general
accounts and parties in interest or Disqualified Persons; and PTCE 96-23, which
exempts certain transactions effected on behalf of a Plan by an "in-house asset
manager." There can be no assurance that any of these class exemptions will
apply with respect to any particular Plan investment in the Certificates or,
even if it were deemed to apply, that any exemption would apply to all
prohibited transactions that may occur in connection with such investment. The
Prospectus Supplement with respect to a series of Certificates may contain
additional information regarding the availability of other exemptions with
respect to the Certificates offered thereby.
INSURANCE COMPANY GENERAL ACCOUNTS
Section III of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")
exempts from the application of the prohibited transaction provisions of
Sections 406(a), 406(b) and 407(a) of ERISA and Section 4975 of the Code
transactions in connection with the servicing, management and operation of a
trust (such as the Trust) in which an insurance company general account has an
interest as a result of its acquisition of certificates issued by the trust,
provided that certain conditions are satisfied. If these conditions are met,
insurance company general accounts would be allowed to purchase certain Classes
of Certificates which do not meet the requirements of the Exemptions solely
because they (i) are subordinated to other Classes of Certificates in the Trust
and/or (ii) have not received a rating at the time of the acquisition in one of
the three highest rating categories from S&P, Moody's, DCR or Fitch. All other
conditions of the Exemptions would have to be satisfied in order for PTCE 95-60
to be available. Before purchasing such Class of Certificates, an insurance
company general account seeking to rely on Section III of PTCE 95-60 should
itself confirm that all applicable conditions and other requirements have been
satisfied.
The Small Business Job Protection Act of 1996 added a new Section 401(c)
to ERISA, which provides certain exemptive relief from the provisions of Part 4
of Title I of ERISA and Section 4975 of the Code, including the prohibited
transaction restrictions imposed by ERISA and the related excise taxes imposed
by the Code, for transactions involving an insurance company general account.
Pursuant to Section 401(c) of ERISA, the DOL is required to issue final
regulations ("401(c) Regulations") no later than December 31, 1997 which are to
provide guidance for the purpose of determining, in cases where insurance
policies supported by an insurer's general account are issued to or for the
benefit of a Plan on or before December 31, 1998, which general account assets
constitute Plan Assets. On December 22, 1997, the DOL proposed such
regulations. Section 401(c) of ERISA generally provides that, until the date
which is 18 months after the 401(c) Regulations become final, no person shall
be subject to liability under Part 4 of Title I of ERISA and Section 4975 of
the Code on the basis of a claim that the assets of an insurance company
general account constitute Plan Assets, unless (i) as otherwise provided by the
Secretary of Labor in the 401(c) Regulations to prevent avoidance of the
regulations or (ii) an action is brought by the Secretary of Labor for certain
breaches of fiduciary duty which would also constitute a violation of federal
or state criminal law. Any assets of an insurance company general account which
support insurance policies issued to a Plan after December 31, 1998 or issued
to Plans on or before December 31, 1998 for which the insurance company does
not comply with the 401(c) Regulations may be treated as Plan Assets. In
addition, because Section 401(c) does not relate to insurance company separate
accounts, separate account assets are still treated as Plan Assets of any Plan
invested in such separate account. Insurance companies contemplating the
investment of general account assets in the Offered Certificates should consult
with their legal counsel with respect to the applicability of Section 401(c) of
ERISA, including the general account's ability to continue to hold the Offered
Certificates after the date which is 18 months after the date the 401(c)
Regulations become final.
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UNRELATED BUSINESS TAXABLE INCOME -- RESIDUAL INTERESTS
The purchase of a Certificate evidencing an interest in the Residual
Interest in a Series that is treated as a REMIC by any person, including any
employee benefit plan that is exempt from federal income tax under Code Section
501(a), including most varieties of ERISA Plans, may give rise to "unrelated
business taxable income" as described in Code Sections 511, 515 and 860E.
Further, prior to the purchase of an interest in a Residual Interest, a
prospective transferee may be required to provide an affidavit to a transferor
that it is not, nor is it purchasing an interest in a Residual Interest on
behalf of, a "Disqualified Organization," which term as defined above includes
certain tax-exempt entities not subject to Code Section 511, such as certain
governmental plans, as discussed above under "FEDERAL INCOME TAX CONSEQUENCES
- -- REMIC Certificates -- Income from Residual Certificates" and "-- Transfers
of Residual Certificates."
DUE TO THE COMPLEXITY OF THESE RULES AND THE PENALTIES IMPOSED UPON
PERSONS INVOLVED IN PROHIBITED TRANSACTIONS, IT IS PARTICULARLY IMPORTANT THAT
INDIVIDUALS RESPONSIBLE FOR INVESTMENT DECISIONS WITH RESPECT TO ERISA PLANS
AND CODE PLANS CONSULT WITH THEIR COUNSEL REGARDING THE CONSEQUENCES UNDER
ERISA AND/OR THE CODE OF THEIR ACQUISITIONS AND OWNERSHIP OF CERTIFICATES.
THE SALE OF CERTIFICATES TO A PLAN IS IN NO RESPECT A REPRESENTATION BY
THE SELLER OR THE APPLICABLE UNDERWRITER THAT THIS INVESTMENT MEETS ALL
RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY PLANS GENERALLY OR
ANY PARTICULAR PLAN, OR THAT THIS INVESTMENT IS APPROPRIATE FOR PLANS GENERALLY
OR ANY PARTICULAR PLAN.
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LEGAL INVESTMENT
THE SECONDARY MORTGAGE MARKET ENHANCEMENT ACT
The Prospectus Supplement for each Series will identify those Classes of
Offered Certificates, if any, which constitute "mortgage-related securities"
for purposes of the Secondary Mortgage Market Enhancement Act of 1984, as
amended ("SMMEA"). The appropriate characterization of those Offered
Certificates not qualifying as "mortgage-related securities" ("Non-SMMEA
Certificates") under various legal investment restrictions, and thus the
ability of investors subject to these restrictions to purchase such Offered
Certificates, may be subject to significant interpretive uncertainties.
Accordingly, investors whose investment authority is subject to legal
restrictions should consult their own legal advisors to determine whether and
to what extent the Non-SMMEA Certificates constitute legal investments for
them.
A Class or Classes of Offered Certificates of a Series will constitute
"mortgage-related securities" ("SMMEA Certificates") for so long as they (i)
are rated in one of the two highest rating categories by at least one
nationally recognized statistical rating organization and (ii) are part of a
Series evidencing interests in a Trust Fund consisting of loans secured by
first liens on real property and originated by certain types of originators as
specified in SMMEA. As "mortgage-related securities," the SMMEA Certificates
will constitute legal investments for persons, trusts, corporations,
partnerships, associations, business trusts and business entities (including,
but not limited to, state-chartered savings banks, commercial banks, savings
and loan associations and insurance companies, as well as trustees and state
government employee retirement systems) created pursuant to or existing under
the laws of the United States or of any state (including the District of
Columbia and Puerto Rico) whose authorized investments are subject to state
regulation to the same extent that, under applicable law, obligations issued by
or guaranteed as to principal and interest by the United States or any agency
or instrumentality thereof constitute legal investments for such entities.
Pursuant to SMMEA, a number of states enacted legislation, on or before the
October 3, 1991 cutoff for such enactments, limiting to varying extents the
ability of certain entities (in particular, insurance companies) to invest in
"mortgage-related securities" secured by liens on residential, or mixed
residential and commercial properties, in most cases by requiring the affected
investors to rely solely upon existing state law, and not SMMEA. Pursuant to
Section 347 of the Riegle Community Development and Regulatory Improvement Act
of 1994, which amended the definition of "mortgage-related security" to
include, in relevant part, Offered Certificates satisfying the rating, first
lien and qualified originator requirements for "mortgage-related securities,"
but evidencing interests in a Trust Fund consisting, in whole or in part, of
first liens on one or more parcels of real estate upon which are located one or
more commercial structures, states were authorized to enact legislation, on or
before September 23, 2001, specifically referring to Section 347 and
prohibiting or restricting the purchase, holding or investment by
state-regulated entities in such types of Offered Certificates. Accordingly,
the investors affected by any such state legislation, when and if enacted, will
be authorized to invest in SMMEA Certificates only to the extent provided in
such legislation.
SMMEA also amended the legal investment authority of federally-chartered
depository institutions as follows: federal savings and loan associations and
federal savings banks may invest in, sell or otherwise deal in
"mortgage-related securities" without limitation as to the percentage of their
assets represented thereby, federal credit unions may invest in such
securities, and national banks may purchase such securities for their own
account without regard to the limitations generally applicable to investment
securities set forth in 12 U.S.C. Section 24 (Seventh), subject in each case
to such regulations as the applicable federal regulatory authority may
prescribe. In this connection, the Office of the Comptroller of the Currency
(the "OCC") has amended 12 C.F.R. Part 1 to authorize national banks to
purchase and sell for their own account, without limitation as to a percentage
of the bank's capital and surplus (but subject to compliance with certain
general standards in 12 C.F.R. Section 1.5 concerning "safety and soundness"
and retention of credit information, certain "Type IV securities," defined in
12 C.F.R. Section 1.2(l) to include certain "commercial mortgage-related
securities" and "residential mortgage-related securities." As so defined,
"commercial mortgage-related security" and "residential mortgage-related
security" mean, in relevant part, "mortgage-related security" within the
meaning of SMMEA, provided that, in the case of a "commercial mortgage-related
security," it "represents ownership of a promissory note or
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certificate of interest or participation that is directly secured by a first
lien on one or more parcels of real estate upon which one or more commercial
structures are located and that is fully secured by interests in a pool of
loans to numerous obligors." In the absence of any rule or administrative
interpretation by the OCC defining the term "numerous obligors," no
representation is made as to whether any Class of Offered Certificates will
qualify as "commercial mortgage-related securities," and thus as "Type IV
securities," for investment by national banks. The National Credit Union
Administration (the "NCUA") has adopted rules, codified at 12 C.F.R. Part 703,
which permit federal credit unions to invest in "mortgage related securities"
under limited circumstances, other than stripped mortgage-related securities,
residual interests in mortgage-related securities, and commercial
mortgage-related securities, unless the credit union has obtained written
approval from the NCUA to participate in the "investment pilot program"
described in 12 C.F.R. Section 703.140.
All depository institutions considering an investment in the Offered
Certificates should review the "Supervisory Policy Statement on Investment
Securities and End-User Derivatives Activities" (the "1998 Policy Statement")
of the Federal Financial Institutions Examination Council (the "FFIEC"), which
has been adopted by the Board of Governors of the Federal Reserve System (the
"Federal Reserve Board"), the Federal Deposit Insurance Corporation (the
"FDIC"), the OCC and the Office of Thrift Supervision (the "OTS"), effective
May 26, 1998, and the NCUA, effective October 1, 1998. The 1998 Policy
Statement set forth general guidelines which depository institutions must
follow in managing risks (including market, credit, liquidity, operational
(transaction), and legal risks) applicable to all securities (including
mortgage pass-through securities and mortgage-derivative products) used for
investment purposes.
Institutions whose investment activities are subject to regulation by
federal or state authorities should review rules, policies and guidelines
adopted from time to time by such authorities before purchasing any Offered
Certificates, as certain Series, Classes or subclasses may be deemed unsuitable
investments, or may otherwise be restricted, under such rules, policies or
guidelines (in certain instances irrespective of SMMEA).
The foregoing does not take into consideration the applicability of
statutes, rules, regulations, orders, guidelines or agreements generally
governing investments made by a particular investor, including, but not limited
to, "prudent investor" provisions, percentage-of-assets limits, provisions
which may restrict or prohibit investment in securities which are not
"interest-bearing" or "income-paying," and, with regard to any Certificates
issued in book-entry form, provisions which may restrict or prohibit
investments in securities which are issued in book-entry form.
Except as to the status of certain Classes of Offered Certificates
identified in the Prospectus Supplement for a Series as SMMEA Certificates, no
representation is made as to the proper characterization of the Offered
Certificates for legal investment, financial institution regulatory or other
purposes, or as to the ability of particular investors to purchase any Offered
Certificates under applicable legal investment restrictions. The uncertainties
described above (and any unfavorable future determinations concerning legal
investment or financial institution regulatory characteristics of the Offered
Certificates) may adversely affect the liquidity of the Offered Certificates.
Accordingly, all investors whose investment activities are subject to
legal investment laws and regulations, regulatory capital requirements or
review by regulatory authorities should consult with their legal advisors in
determining whether and to what extent the Offered Certificates constitute
legal investments or are subject to investment, capital or other restrictions
and, if applicable, whether SMMEA has been overridden in any jurisdiction
relevant to such investor.
THE APPRAISAL REGULATIONS
Pursuant to Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 ("FIRREA"), the Federal Reserve Board, the OCC, the
FDIC and the OTS have adopted regulations (the "Appraisal Regulations")
applicable to bank holding companies, their non-bank subsidiaries and
state-chartered banks that are members of the Federal Reserve System (12 C.F.R.
Section Section 225.61-225.67), national banks (12 C.F.R. Section
Section 34.41-34.47), state-chartered banks that are not members of the Federal
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Reserve System (12 C.F.R. Part 323), and savings associations (12.C.F.R. Part
564), respectively. The Appraisal Regulations, which are substantially similar,
although not identical, for each agency, generally require the affected
institutions and entities to obtain appraisals performed by state-certified or
state-licensed appraisers (each, a "FIRREA Appraisal") in connection with a
wide range of real estate-related transactions, including the purchase of
interests in loans secured by real estate in the form of mortgage-backed
securities, unless an exemption applies. With respect to purchases of mortgage-
backed securities, the Appraisal Regulations provide for an exemption from the
requirement of obtaining new FIRREA Appraisals for the properties securing the
underlying loans so long as at the time of origination each such loan was the
subject of either a FIRREA Appraisal, or, if a FIRREA Appraisal was not
required, met the appraisal requirements of the appropriate regulator.
No assurance can be given that each of the underlying Mortgage Loans in a
Mortgage Pool will have been the subject of a FIRREA Appraisal or, if a FIRREA
Appraisal was not required, an appraisal that conformed to the requirements of
the appropriate regulator at origination. To the extent available, information
will be provided in the Prospectus Supplement with respect to appraisals on the
Mortgage Loans underlying each Series of Offered Certificates. However, such
information may not be available on every Mortgage Loan. Prospective investors
that may be subject to the Appraisal Regulations are advised to consult with
their legal advisors and/or the appropriate regulators with respect to the
effect of such regulations on their ability to invest in a particular Series of
Offered Certificates.
PLAN OF DISTRIBUTION
The Certificates offered hereby and by means of the related Prospectus
Supplements will be offered through one or more of the methods described below.
The Prospectus Supplement with respect to each such Series of Certificates will
describe the method of offering of such Series of Certificates, including the
initial public offering or purchase price of each Class of Certificates or the
method by which such price will be determined and the net proceeds to the
Seller of such sale.
The Offered Certificates will be offered through the following methods
from time to time and offerings may be made concurrently through more than one
of these methods or an offering of a particular Series of Certificates may be
made through a combination of two or more of these methods:
1. By negotiated firm commitment underwriting and public reoffering by
underwriters specified in the applicable Prospectus Supplement;
2. By placements by the Seller with investors through dealers; and
3. By direct placements by the Seller with investors.
Unless otherwise specified in the related Prospectus Supplement, if
underwriters are used in a sale of any Offered Certificates, such Certificates
will be acquired by the underwriters for their own account and may be resold
from time to time in one or more transactions, including negotiated
transactions, at a fixed public offering price or at varying prices to be
determined at the time of sale or at the time of commitment thereof. Firm
commitment underwriting and public reoffering by underwriters may be done
through underwriting syndicates or through one or more firms acting alone. The
specific managing underwriter or underwriters, if any, with respect to the
offer and sale of the Offered Certificates of a particular Series will be set
forth on the cover of the related Prospectus Supplement and the members of the
underwriting syndicate, if any, will be named in such Prospectus Supplement. If
so specified in the related Prospectus Supplement, the Offered Certificates
will be distributed in a firm commitment underwriting, subject to the terms and
conditions of the underwriting agreement, by Goldman, Sachs & Co. acting as
underwriter with other underwriters, if any, named therein. The Seller is an
affiliate of Goldman, Sachs & Co. See "The Seller" herein. The Prospectus
Supplement will describe any discounts and commissions to be allowed or paid by
the Seller to the underwriters, any other items constituting underwriting
compensation and any discounts and commissions to be allowed or paid to the
dealers. The obligations of the underwriters will be subject to certain
conditions precedent. The underwriters with respect to a sale of any Class of
Certificates will be obligated to purchase all such Certificates if any are
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purchased. The Seller and, if specified in the Prospectus Supplement, a selling
Certificateholder will agree to indemnify the underwriters against certain
civil liabilities, including liabilities under the Act or will contribute to
payments required to be made in respect thereof.
In the ordinary course of business, Goldman, Sachs & Co., or its
affiliates, and the Seller may engage in various securities and financing
transactions, including repurchase agreements to provide interim financing of
the Seller's mortgage loans pending the sale of such mortgage loans or
interests therein, including the Certificates.
If specified in the Prospectus Supplement relating to a Series of
Certificates, a holder of one or more Classes of Offered Certificates that is
required to deliver a prospectus in connection with the offer and sale thereof
may offer and sell, pursuant to this Prospectus and a related Prospectus
Supplement, such Classes directly, through one or more underwriters to be
designated at the time of the offering of such Certificates or through dealers
acting as agent and/or principal. The specific managing underwriter or
underwriters, if any, with respect to any such offer and sale of Certificates
by unaffiliated parties will be set forth on the cover of the Prospectus
Supplement applicable to such Certificates and the members of the underwriting
syndicate, if any, will be named in such Prospectus Supplement, and the
Prospectus Supplement will describe any discounts and commissions to be allowed
or paid by such unaffiliated parties to the underwriters, any other items
constituting underwriting compensation and any discounts and commissions to be
allowed or paid to any dealers participating in such offering. Any offerings
described in this paragraph may be restricted in the manner specified in such
Prospectus Supplement. Such transactions may be effected at market prices
prevailing at the time of sale, at negotiated prices or at fixed prices. The
underwriters and dealers participating in such selling Certificateholder's
offering of such Certificates may receive compensation in the form of
underwriting discounts or commissions from such selling Certificateholder, and
such dealers may receive commissions from the investors purchasing such
Certificates for whom they may act as agent (which discounts or commissions
will not exceed those customary in those types of transactions involved). Any
dealer that participates in the distribution of such Certificates may be deemed
to be an "underwriter" within the meaning of the Act, and any commissions and
discounts received by such dealer and any profit on the resale of such
Certificates by such dealer might be deemed to be underwriting discounts and
commissions under the Act.
If the Certificates of a Series are offered other than through
underwriters, the related Prospectus Supplement will contain information
regarding the nature of such offering and any agreements to be entered into
between the Seller and dealers and/or the Seller and the purchasers of such
Certificates. Purchasers of Certificates, including dealers, may, depending on
the facts and circumstances of such purchases, be deemed to be "underwriters"
within the meaning of the Act in connection with reoffers and sales by them of
Certificates. Holders of Certificates should consult with their legal advisors
in this regard prior to any such reoffer or sale.
The place and time of delivery for each Series of Certificates offered
hereby and by means of the related Prospectus Supplement will be set forth in
the Prospectus Supplement with respect to such series.
LEGAL MATTERS
Certain legal matters relating to the Certificates offered hereby will be
passed upon for the Seller by Cleary, Gottlieb, Steen & Hamilton or by other
counsel identified in the related Prospectus Supplement.
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This diskette contains a spreadsheet file that can be put on a user-specified
hard drive or network drive. The file is "GSMSCII.xls". The file "GSMSCII.xls"
is a Microsoft Excel1, Version 5.0 spreadsheet. The file provides, in
electronic format, certain loan level information shown in ANNEX A of the
Preliminary Prospectus Supplement.
Open the file as you would normally open any spreadsheet in Microsoft
Excel. After the file is opened, a securities law legend will be displayed.
READ THE LEGEND CAREFULLY. To view the ANNEX A data, "click" on the worksheet
labeled "Annex A." To view the multifamily schedule data, "click" on the
worksheet labeled "MF Schedule."
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(1) Microsoft Excel is a registered trademark of Microsoft Corporation.
<PAGE>
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No dealer, salesperson or other person is authorized to give any
information or to represent anything not contained in this prospectus and
prospectus supplement. You must not rely on any unauthorized information or
representations. This prospectus and prospectus supplement is an offer to sell
only the certificates offered hereby, but only under circumstances and in
jurisdictions where it is lawful to do so. The information contained in this
prospectus and prospectus supplement is current only as of its date.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PROSPECTUS SUPPLEMENT
PAGE
------
<S> <C>
Summary of Prospectus Supplement ...................... S-7
Risk Factors .......................................... S-18
Description of the Mortgage Pool ...................... S-40
Description of the Offered Certificates ............... S-82
Yield, Prepayment and Maturity Considerations ......... S-100
The Pooling Agreement ................................. S-117
Use of Proceeds ....................................... S-140
Certain Legal Aspects of the Mortgage Loans ........... S-140
Federal Income Tax Consequences ....................... S-142
State Tax Considerations .............................. S-144
ERISA Considerations .................................. S-144
Legal Investment ...................................... S-145
Underwriting .......................................... S-145
Legal Matters ......................................... S-146
Ratings ............................................... S-146
Index of Significant Definitions ...................... S-148
Annex A--Certain Characteristics of the Mortgage
Loans ............................................... A-1
Annex B--Representations and Warranties ............... B-1
Annex C--Form of Statement to
Certificateholders .................................. C-1
Annex D--Structural and Collateral Term Sheets......... D-1
Prospectus
Prospectus Supplement ................................. 2
Additional Information ................................ 3
Incorporation of Certain Information by Reference...... 3
Risk Factors .......................................... 4
The Seller ............................................ 6
Use of Proceeds ....................................... 7
Description of the Certificates ....................... 7
The Mortgage Pools .................................... 15
Servicing of the Mortgage Loans ....................... 19
Credit Enhancement .................................... 25
Swap Agreement ........................................ 27
Yield Considerations .................................. 28
Certain Legal Aspects of the Mortgage Loans ........... 30
Federal Income Tax Consequences ....................... 46
State Tax Considerations .............................. 56
ERISA Considerations .................................. 56
Legal Investment ...................................... 60
Plan of Distribution .................................. 62
Legal Matters ......................................... 63
</TABLE>
Until January 24, 1999, all dealers effecting transactions in the
Offered Certificates, whether or not participating in this distribution, may be
required to deliver a Prospectus Supplement and Prospectus. This is in addition
to the dealer's obligation to deliver a prospectus when acting as an
underwriter and with respect to an unsold allotment or subscription.
$1,638,134,628
(Approximate)
GS MORTGAGE
SECURITIES CORPORATION II
AS SELLER
<PAGE>
Commercial Mortgage Pass-Through
Certificates, Series 1998-C1
<TABLE>
<S> <C>
Class A-1 Certificates ......... $ 207,500,000
Class A-2 Certificates ......... $ 436,033,000
Class A-3 Certificates ......... $ 650,220,628
Class X Certificates ........... $1,861,517,825
Class B Certificates ........... $ 102,384,000
Class C Certificates ........... $ 102,383,000
Class D Certificates ........... $ 107,038,000
Class E Certificates ........... $ 32,576,000
</TABLE>
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PROSPECTUS SUPPLEMENT
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GOLDMAN, SACHS & CO.
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