<PAGE>
THE INFORMATION IN THIS PROSPECTUS SUPPLEMENT IS NOT COMPLETE AND MAY BE
CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL WE DELIVER A FINAL PROSPECTUS
SUPPLEMENT AND PROSPECTUS. THIS PROSPECTUS SUPPLEMENT AND PROSPECTUS ARE NOT
AN OFFER TO SELL THESE SECURITIES AND ARE NOT SOLICITING AN OFFER TO BUY
THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
SUBJECT TO COMPLETION, DATED OCTOBER 14, 1998.
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 fifteen 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 Fixed AAA/AAA October 18, 2030
Class A-2 .. $ 436,033,000 Fixed AAA/AAA October 18, 2030
Class A-3 .. $ 650,220,628 Fixed AAA/AAA October 18, 2030
Class X..... $1,861,517,825(2) (3) WAC/IO AAAr/AAA October 18, 2030
Class B .... $ 102,384,000 Fixed AA/AA October 18, 2030
Class C .... $ 102,383,000 Fixed A/A October 18, 2030
Class D..... $ 107,038,000 (4) WAC BBB/BBB October 18, 2030
Class E..... $ 32,576,000 (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 % of the
initial principal amount of the offered certificates, plus accrued interest
from October 1, 1998, before deducting expenses payable by us.
GOLDMAN, SACHS & CO.
Prospectus Supplement dated October , 1998.
<PAGE>
GS MORTGAGE SECURITIES CORPORATION II
---------------------------------------
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
$4,384,419
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 3.40%
Lodging 16.75%
Office 16.18%
Multifamily 15.80%
Anchored Retail 13.53%
Industrial 13.11%
Unanchored Retail 10.57%
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-144 in this prospectus
supplement.
In this prospectus supplement, the terms "Seller", "we," "us" and "our"
refer to GS Mortgage 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 Risk ...................................................... S-22
Concentration of Mortgage Loans ..................................................... S-22
Risks Relating to Enforceability of Cross-Collaterialization......................... 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
Risks of Different Timing of Mortgage Loan Amortization ............................. S-29
Nonrecourse Mortgage Loans .......................................................... S-29
Bankruptcy Proceedings Entail Certain Risks ......................................... S-29
Geographic Concentration ............................................................ S-29
Environmental Risks ................................................................. S-30
Costs of Compliance with Americans with Disabilities Act............................. S-31
Litigation and Other Matters Affecting the Mortgaged Properties or Borrowers ....... S-31
Other Financings .................................................................... S-32
Effect of Borrower Delinquencies and Defaults ....................................... S-32
Balloon Payments .................................................................... S-34
Special Considerations Relating to AIMCO Multifamily Pool Loan....................... S-34
Ground Leases and Other Leasehold Interests ......................................... S-35
Attornment Considerations ........................................................... S-35
State Law Limitations on Remedies.................................................... S-36
Tax Considerations Relating to Foreclosure .......................................... S-36
Zoning Compliance and Use Restrictions .............................................. S-36
Earthquake Insurance, Flood and Other Insurance...................................... S-37
Special Servicer Actions ............................................................ S-37
Possible Conflict of Interest of Special Servicer ................................... S-37
Limitations with Respect to Representations and Warranties........................... S-37
Servicing of the Americold Pool Loan ................................................ S-38
Risks of Limited Liquidity and Market Value.......................................... S-38
Book-Entry Registration ............................................................. S-38
Risks Associated with Year 2000 Compliance .......................................... S-38
Other Risks ......................................................................... S-39
DESCRIPTION OF THE MORTGAGE POOL...................................................... S-40
General ............................................................................. S-40
Additional Mortgage Loan Information ................................................ S-41
Representations and Warranties ...................................................... S-41
Certain Characteristics of the Mortgage Loans ....................................... S-42
Escrows ............................................................................. S-44
Underwriting Guidelines ............................................................. S-45
Additional Information .............................................................. S-46
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
S-3
<PAGE>
PAGE
---------
EPT Pool: The Borrower; The Properties ............................................. S-65
EPT Pool: The Loan.................................................................. S-69
Skyline City Pool: Borrowers; The Property.......................................... S-73
Skyline City Pool: The Loan......................................................... S-75
DESCRIPTION OF THE OFFERED CERTIFICATES .............................................. S-80
General ............................................................................. S-80
Distributions ....................................................................... S-81
Subordination ....................................................................... S-91
Appraisal Reductions................................................................. S-91
Delivery, Form and Denomination...................................................... S-92
Book-Entry Registration.............................................................. S-93
Definitive Certificates.............................................................. S-95
Transfer Restrictions................................................................ S-95
YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS......................................... S-96
Yield ............................................................................... S-96
Weighted Average Life of the Offered Certificates ................................... S-98
Price/Yield Tables................................................................... S-104
Yield Sensitivity of the Class X Certificates ....................................... S-111
THE POOLING AGREEMENT................................................................. S-113
General ............................................................................. S-113
Assignment of the Mortgage Loans .................................................... S-113
Servicing of the Mortgage Loans; Collection of Payments.............................. S-113
Advances............................................................................. S-116
Accounts............................................................................. S-117
Withdrawals from the Collection Account.............................................. S-118
Enforcement of "Due-on-Sale" and "Due-on-Encumbrance" Clauses........................ S-119
Inspections.......................................................................... S-120
Evidence as to Compliance............................................................ S-120
Certain Matters Regarding the Seller, the Master Servicer and the Special Servicer .. S-120
Events of Default.................................................................... S-122
Rights Upon Event of Default......................................................... S-122
Amendment............................................................................ S-123
Realization Upon Mortgage Loans...................................................... S-124
Modifications, Waivers and Amendments................................................ S-126
The Controlling Class Representative................................................. S-128
The Healthcare Adviser............................................................... S-129
Optional Termination; Optional Mortgage Loan Purchase................................ S-129
The Trustee.......................................................................... S-130
Duties of the Trustee ............................................................... S-131
The Fiscal Agent .................................................................... S-132
Duties of the Fiscal Agent........................................................... S-132
The Master Servicer.................................................................. S-133
Servicing Compensation and Payment of Expenses....................................... S-133
Special Servicer..................................................................... S-134
Master Servicer and Special Servicer Permitted to Buy Certificates................... S-134
Reports to Certificateholders........................................................ S-135
USE OF PROCEEDS....................................................................... S-136
CERTAIN LEGAL ASPECTS OF THE MORTGAGE LOANS .......................................... S-136
FEDERAL INCOME TAX CONSEQUENCES....................................................... S-138
STATE TAX CONSIDERATIONS.............................................................. S-139
ERISA CONSIDERATIONS.................................................................. S-139
LEGAL INVESTMENT...................................................................... S-141
UNDERWRITING ......................................................................... S-141
LEGAL MATTERS......................................................................... S-142
RATINGS............................................................................... S-142
INDEX OF SIGNIFICANT DEFINITIONS...................................................... S-144
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 CLASS A-1 $207,500,000 AAA/AAA 11.15%
$1,861,517,825 ---------- -------------- ---------
(NOTIONAL AMOUNT)
(AAAr/AAA) CLASS A-2 $436,033,000 AAA/AAA 23.42%
---------- -------------- ---------
30.50%* 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%
---------- -------------- ---------
6.25% CLASS F** $107,037,000 N/A 5.75%
---------- -------------- ---------
3.25% CLASS G** $ 55,846,000 N/A 3.00%
---------- -------------- ---------
2.00% CLASS H** $ 23,269,000 N/A 1.25%
---------- -------------- ---------
N/A CLASS J** $ 37,231,197 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
CERTIFICATE PASS-THROUGH
RATINGS PRINCIPAL OR APPROXIMATE RATE AS OF WEIGHTED
S&P/ NOTIONAL CREDIT CLOSING AVG. LIFE(5) PRINCIPAL
CLASS FITCH 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 5.01 11/98-07/07
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
A-2 AAA/AAA $ 436,033,000 30.50% Fixed 9.49 07/07-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
A-3 AAA/AAA $ 650,220,628 30.50% Fixed 8.99 11/98-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
X AAAr/AAA $1,861,517,825(2) N/A WAC I/O (3) 9.34 11/98-09/19
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
B AA/AA $ 102,384,000 25.00% Fixed 9.97 10/08-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
C A/A $ 102,383,000 19.50% Fixed 9.97 10/08-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
D BBB/BBB $ 107,038,000 13.75% WAC (4) 9.97 10/08-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
E BBB-/BBB- $ 32,576,000 12.00% WAC (4) 9.97 10/08-10/08
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
Certificates Not Offered Hereby
- --------------------------------------- ------------- ------------- -------------- ------------ -------------
F N/A $ 107,037,000 6.25% Fixed N/A N/A
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
G N/A $ 55,846,000 3.25% Fixed N/A N/A
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
H N/A $ 23,269,000 2.00% Fixed N/A N/A
- ------- ----------- ----------------- ------------- ------------- -------------- ------------ -------------
J N/A $ 37,231,197 N/A Fixed 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 and Class J
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
GS Mortgage Securities Corporation II Commercial Mortgage Pass-Through
Certificates, Series 1998-C1.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 ("ACLP");
o Archon Financial, L.P., a Delaware
limited partnership ("Archon");
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.
S-7
<PAGE>
Trustee ...................... LaSalle National Bank, a national banking
association. See "The Pooling Agreement--The
Trustee" in this prospectus supplement.
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) .............. 132 115 126.1
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 ("DSCR").
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 twelve
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 have unpaid
principal balances 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 15
classes, the following seven of which are
not being offered through this prospectus
supplement and the accompanying
prospectus: Class F, Class G, Class H,
Class J, 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>
<CAPTION>
<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>
<CAPTION>
<S> <C>
o Class A-1 ... %
o Class A-2 ... %
o Class A-3 ... %
o Class B...... %
o Class C...... %
o Class D...... %*
o Class E...... %*
</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: (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. (b)
Notwithstanding the foregoing, if 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 has paid in full
more than 30 days after its maturity date
(or in the case of an ARD Loan, its
Anticipated Repayment Date), 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 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
S-11
<PAGE>
Class A-2 until reduced to zero. (c) 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 pays in full more
than 30 days after its maturity date (or
in the case of an ARD Loan, its
Anticipated Repayment Date) 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. (d) 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. (e) 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.
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 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
S-12
<PAGE>
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 Enhancement
Instrument ................ On the Closing Date, the Seller will cause
to be deposited with the Trustee a
guarantee, U.S. government securities, a
guaranteed investment contract and/or such
other obligation or instrument (in each
case, a "Reinvestment Enhancement
Instrument"), the payments on which will
be sufficient to cover any reinvestment
shortfall that might otherwise be suffered
by the certificateholders resulting from
the reinvestment of funds on deposit in
the reserve account as described in "Step
2/Class A" under "--Amount and Order of
Distributions" above. 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) or a delinquency of 60 days or more
occurs with respect to a mortgage loan,
the Trustee will release to the Seller the
Reinvestment Enhancement Instrument, and
there will be no further obligation to
maintain a Reinvestment Enhancement
Instrument for the benefit of
certificateholders.
Advances
A. Principal and Interest
Advances ................. The 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 ................. The Master Servicer is also required to make
advances to pay delinquent real estate
taxes, assessments and hazard insurance
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.
S-13
<PAGE>
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 J 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.)
Class A-1, Class A-2,
Class A-3 and Class X*
Class B
Class C
Class D
Class E
Class F
Class G
Class H
Class J
* 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
employee benefit plan or other retirement
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 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 prepayment premiums,
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 the
ability of investors subject to these
restrictions to purchase the offered
certificates, may be subject to
significant interpretative uncertainties.
Investors should consult their own legal
advisors to determine whether and to what
extent the offered certificates constitute
legal investments for them. 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 actually occur, 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
S-18
<PAGE>
cannot assure you that involuntary prepayments will not occur. Generally, no
prepayment premiums or 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 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
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sufficient to pay an enforceable yield maintenance charge or prepayment
premium. Additionally, although 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).
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 PERCENT OF
CUT-OFF DATE MORTGAGE POOL
PRINCIPAL AS OF CUT-OFF
BALANCE DATE
-------------- ---------------
<S> <C> <C>
Largest Single Mortgage Loan................... $147,597,677 7.93%
Largest 5 Mortgage Loans(1).................... $495,919,618 26.64%
Largest 10 Mortgage Loans(1)................... $655,225,140 35.20%
Largest Related-Borrower Concentration(2) ..... $ 62,362,331 3.35%
Next Largest Related-Borrower
Concentration(2).............................. $ 60,517,392 3.25%
</TABLE>
- ------------
(1) Includes cross-collateralized mortgage loans.
(2) Excluding single mortgage loans.
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GROUP 1 LOANS
<TABLE>
<CAPTION>
AGGREGATE PERCENT OF
CUT-OFF DATE PERCENT OF MORTGAGE POOL
PRINCIPAL GROUP 1 LOANS AS OF CUT-OFF
BALANCE AS OF CUT-OFF DATE DATE
-------------- ------------------ ---------------
<S> <C> <C> <C>
Largest Single Mortgage Loan.............. $147,597,677 12.19% 7.93%
Largest 5 Mortgage Loans(1)............... $419,679,951 34.65% 22.55%
Largest 10 Mortgage Loans(1).............. $551,234,891 45.51% 29.61%
Largest Related-Borrower
Concentration(2)......................... $ 60,517,392 5.00% 3.25%
Next Largest Related-Borrower
Concentration(2)......................... $ 38,432,633 3.17% 2.06%
</TABLE>
- ------------
(1) Includes cross-collateralized mortgage loans.
(2) Excluding single mortgage loans.
GROUP 2 LOANS
<TABLE>
<CAPTION>
AGGREGATE PERCENT OF
CUT-OFF DATE PERCENT OF MORTGAGE POOL
PRINCIPAL GROUP 2 LOANS AS OF CUT-OFF
BALANCE AS OF CUT-OFF DATE DATE
-------------- ------------------ ---------------
<S> <C> <C> <C>
Largest Single Mortgage Loan.............. $ 79,836,298 12.28% 4.29%
Largest 5 Mortgage Loans(1)............... $185,360,314 28.51% 9.96%
Largest 10 Mortgage Loans(1).............. $244,990,348 37.68% 13.16%
Largest Related-Borrower
Concentration(2)......................... $ 43,954,407 6.76% 2.36%
Next Largest Related-Borrower
Concentration(2)......................... $ 23,929,698 3.68% 1.29%
</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 borrower 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 Exhibit A hereto) has borrowers related to each
other and such mortgage loans represent 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 other 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 Exhibit A hereto) has borrowers related
to each other and such mortgage loans represent 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,
or was not able to pay its debts as they matured; 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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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 meets 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.
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 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.
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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 prevent a lender from foreclosing on the mortgaged property
(subject to certain protections available to the lender). As part of a
restructuring plan, a court also 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 on 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.
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:
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<PAGE>
ALL MORTGAGE LOANS
<TABLE>
<CAPTION>
AGGREGATE CUT-OFF DATE PERCENT OF MORTGAGE
STATE PRINCIPAL BALANCE POOL AS OF CUT-OFF DATE
- ------------ ---------------------- -----------------------
<S> <C> <C>
California $294,180,915 15.8%
New York $163,395,938 8.8%
Texas $157,647,607 8.5%
Virginia $127,968,671 6.9%
Ohio $ 98,304,399 5.3%
</TABLE>
GROUP 1 LOANS
<TABLE>
<CAPTION>
AGGREGATE PERCENT OF
CUT-OFF DATE GROUP 1 LOANS
STATE PRINCIPAL BALANCE AS OF CUT-OFF DATE
- ------------ ----------------- ------------------
<S> <C> <C>
California $164,088,536 13.5%
Virginia $118,342,168 9.8%
New York $109,492,106 9.0%
Texas $101,448,230 8.4%
Washington $ 68,086,173 5.6%
</TABLE>
GROUP 2 LOANS
<TABLE>
<CAPTION>
AGGREGATE PERCENT OF
CUT-OFF DATE GROUP 2 LOANS
STATE PRINCIPAL 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).
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
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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 0.6% 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. All contamination is scheduled
to be remediated in 1998.
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.
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.
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<PAGE>
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 7 mortgage loans, representing approximately 11.6% of the Initial
Pool Balance, each borrower has secured and/or unsecured debt 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. The borrower under 2 cross-collateralized and cross-defaulted
mortgage loans, representing approximately 1.7% of the Initial Pool Balance,
has Subordinate Debt with an original principal balance of $3,549,667. 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, with respect
to certain of the mortgage loans, the terms of the mortgage loans would allow
the related borrowers to incur Subordinate Debt under certain circumstances.
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 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).
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<PAGE>
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.
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.
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<PAGE>
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.
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.
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<PAGE>
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. The AIMCO Multifamily Pool Loan
has an unpaid principal balance called the AIMCO Multifamily Pool Agreed
Valuation Amount 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"). 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.
In the event of a default on 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 the AIMCO Multifamily Pool Loan to
payment in full of such Mortgage Loan before payments are applied to the
AIMCO Multifamily Pool Conditional Debt.
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
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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.
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.
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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.
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.
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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 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
compliant 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
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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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<PAGE>
DESCRIPTION OF THE MORTGAGE POOL
GENERAL
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 (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 by aggregate
principal balance as of the Cut-Off Date.
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 Capital 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 CUT-OFF DATE, UNLESS OTHERWISE INDICATED)
<TABLE>
<CAPTION>
GROUP 1 GROUP 2 ALL
MORTGAGE LOANS MORTGAGE LOANS MORTGAGE LOANS
--------------- --------------- ----------------
<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(7)
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 to 9.500% 6.370 to 8.500% 6.160% to 9.500%
Weighted Average Remaining Term to
Maturity (months)(2) ......................... 132 115 126
Range of Remaining Terms to Maturity
(months)(2) .................................. 69 to 251 81 to 120 69 to 251
Weighted Average Original Amortization Term
(months)(3) .................................. 313 338 326
Range of Original Amortization Terms (months) . 144 to 360 180 to 360 144 to 360
Weighted Average DSCR(4) ...................... 1.59 1.42 1.53
Range of DSCRs(4) ............................. 1.00 to 2.85 1.13 to 2.14 1.00 to 2.85
Weighted Average LTV(5) ....................... 66.7 72.7 68.8
Range of LTVs(5) .............................. 40.4 to 97.1 49.4 to 89.7 40.4 to 97.1
Weighted Average LTV at Maturity(6)............ 45.7 62.6 56.3
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.
(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.
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. Such allocation, where not stated in the
Mortgage Loan documents, is generally based on the relative appraised values
of such properties.
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
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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 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. 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
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-GLII 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
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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 and Servicing 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 means 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 19
Mortgage Loans, representing approximately 27.4% 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 Maturity Date for the applicable Mortgage Loan.
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 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 (including the Americold Pool Loan, the EPT Pool Loan and the Skyline
City Pool Loan), representing approximately 69.2% of the Initial Pool Balance
(the "Defeasance Loans"), permit the applicable borrower at any time after a
specified period (the "Defeasance Lock-out Period"), which is generally the
earlier of approximately three years from the date of origination and two
years from the Closing Date (and with respect to 165 Mortgage Loans,
representing approximately 38.4% of the Initial Pool Balance, from three
years after the date of origination), provided no event of default exists, to
obtain a release of a Mortgaged Property from the lien of the related
Mortgage (a "Defeasance Option"). 74.7% of the Group 1 Mortgage Loans by
aggregate principal balance as of the Cut-Off Date, are Defeasance Loans.
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The Defeasance Lock-out Period of 11 Group 1 Defeasance Loans,
representing approximately 20.6% 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 the remaining Group 1
Defeasance Loans ends three years after the date of origination. 82 Group 2
Mortgage Loans, representing approximately 58.7% of the aggregate principal
balance of the Group 2 Mortgage Loans 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 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 giving the mortgagee at least 30 days prior written
notice of the date of such defeasance and (b) the borrower (I) paying on any
Due Date (the "Release Date") (i) all interest accrued and unpaid on the
principal balance of the 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 (II) 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, a
specified percentage (generally 125%, with a 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.
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-GLII
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 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.
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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 the Mortgage Loans originated by the
Originators, as described more fully below. The Mortgage Loans originated by
the Originators 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
in any material respect.
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.
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.
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
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<PAGE>
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 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.
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
Agreement, with the Securities and Exchange Commission within fifteen days
after the initial issuance of the Offered Certificates.
S-46
<PAGE>
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.
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
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<PAGE>
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 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/March 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.
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<PAGE>
AMERICOLD POOL PROPERTIES SUMMARY
<TABLE>
<CAPTION>
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 143,600
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
=========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CUBIC CUT-OFF DATE
SQUARE UNDERWRITTEN ALLOCATED LOAN APPRAISED CUT-OFF
PROPERTY FOOTAGE NET CASH FLOW* AMOUNT VALUE* DATE LTV* DSCR*
- --------------- ----------- -------------- -------------- ------------ --------- -----
<S> <C> <C> <C> <C> <C> <C>
Ash Street ..... 2,750,000 $ 462,849 $ 1,757,790 $ 6,200,000 57.0% 1.54x
Bettendorf ..... 8,848,000 1,088,267 4,082,610 14,400,000 57.0 1.56
Boston ......... 3,067,994 606,267 2,098,008 7,400,000 57.0 1.69
Burley ......... 10,722,101 4,653,746 9,951,361 35,100,000 57.0 2.74
Burlington ..... 4,656,000 1,783,553 4,479,530 15,800,000 57.0 2.34
Clearfield ..... 8,601,600 3,016,924 7,881,705 27,800,000 57.0 2.24
Connell ........ 5,644,800 2,368,940 6,492,483 22,900,000 57.0 2.14
E. Main Street 1,862,768 714,605 2,353,171 8,300,000 57.0 1.78
Fogelsville ... 21,623,549 2,139,954 16,330,438 57,600,000 57.0 0.77
Ft. Dodge ...... 3,067,999 346,861 1,346,694 4,750,000 57.0 1.51
Hermiston ...... 4,032,000 2,739,870 6,662,592 23,500,000 57.0 2.41
Jesse St. ...... 2,682,400 685,951 2,069,656 7,300,000 57.0 1.94
Lois Avenue ... 344,080 67,936 127,582 450,000 57.0 3.12
Milwaukie ...... 4,688,624 2,131,188 5,358,425 18,900,000 57.0 2.33
Moses Lake ..... 7,257,600 3,561,526 9,696,198 34,200,000 57.0 2.15
Nampa .......... 7,981,000 680,270 5,783,697 20,400,000 57.0 0.69
Plant City ..... 806,400 186,202 680,435 2,400,000 57.0 1.60
Plover ......... 9,363,200 5,024,753 13,551,996 47,800,000 57.0 2.17
Rail Road Ave. . 270,480 164,781 652,083 2,300,000 57.0 1.48
Rochelle ....... 6,020,352 2,872,681 6,974,458 24,600,000 57.0 2.42
Rodgers St. ... 2,823,256 1,064,918 3,458,878 12,200,000 57.0 1.81
Rowe Square ... 2,387,465 1,321,472 4,054,258 14,300,000 57.0 1.91
Salem .......... 12,487,600 3,364,696 9,242,575 32,600,000 57.0 2.14
Southgate ...... 3,726,418 352,282 3,033,606 10,700,000 57.0 0.68
Turlock 2 ...... 3,024,000 942,005 2,579,982 9,100,000 57.0 2.14
Walla Walla ... 3,136,000 973,992 2,835,146 10,000,000 57.0 2.01
Wallula ........ 1,200,000 833,766 1,927,899 6,800,000 57.0 2.54
Watsonville ... 2,750,000 2,001,777 5,159,965 18,200,000 57.0 2.28
Woodburn ....... 8,848,000 2,737,821 6,974,458 24,600,000 57.0 2.30
----------- -------------- -------------- ------------ --------- -----
Total/Weighted
Average ....... 154,673,681 $48,889,853 $147,797,179 $520,600,000 57.0% 1.94x
=========== ============== ============== ============ ========= =====
</TABLE>
- ------------
* 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 Reserve Application
Event as described in "--Cash Management; Lockbox" 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 in clause (iv)
above and the amount disbursed in respect of Americold Pool 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 Qualified 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
"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
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("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 REIT 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 2,959 multifamily units and
approximately 2,632,693 square feet. The AIMCO Multifamily Pool Properties
were built between 1967-1978. As of September 22, 1998, the AIMCO Multifamily
Pool Properties had an average occupancy of 96%.
Appraisals dated as of August 27, 1998 through September 2, 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 Loan Amount 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.
Prior to emergence from bankruptcy, the AIMCO Multifamily Pool Properties had
suffered significant deferral of maintenance capital expenditures. Upon
emergence from bankruptcy in March, 1993, the AIMCO Multifamily Pool Borrower
began addressing the long-standing deferrals by funding repairs and
improvements totaling $924/unit, $885/unit and $882/unit in 1995, 1996 and
1997, respectively. In conducting the property condition reports, the
structural engineer identified and recommended an additional $694/unit ($2.1
million) be invested to bring the AIMCO Multifamily Pool Properties into good
physical condition. These funds have been placed in an escrow account by the
AIMCO Multifamily Pool Borrower. While the AIMCO Multifamily Pool Borrower
has yet to complete the suggested items, over the past calendar year the
AIMCO Multifamily Pool Borrower has completed approximately $795/unit ($2.4
million) in additional capital expenditures.
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.
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<PAGE>
PROPERTY CHARACTERISTICS--AIMCO MULTIFAMILY POOL LOAN
<TABLE>
<CAPTION>
CUT-OFF
DATE
OCCUPANCY ALLOCATED APPRAISED
AS OF GLA LOAN VALUE YEAR
PROPERTY LOCATION 9/15/98 (SF) AMOUNT (AS OF 9/98) BUILT
- --------------------- -------------------------- ----------- ----------- -------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
The Bluffs............ Milwaukie, Oregon 97% 101,071 $ 3,746,170 $ 5,925,000 1967-71
Buena Vista........... Pasadena, California 99% 77,858 4,983,690 8,500,000 1973
Casa De Monterey...... Norwalk, California 96% 107,744 4,126,447 5,700,000 1970
Chapelle La Grande .. Merrilville, Indiana 92% 86,745 3,228,160 4,350,000 1973
Crosswood Park ....... Citrus Heights, California 95% 194,982 5,601,533 10,000,000 1977
Forest Ridge ......... Flagstaff, Arizona 91% 189,528 5,935,726 8,600,000 1968-75
Mountain View ........ San Dimas, California 99% 167,336 7,200,564 10,650,000 1978
North Park ........... Evansville, Indiana 99% 257,600 6,290,057 8,400,000 1970-74
Pathfinder ........... Freemont, California 97% 234,860 13,543,952 26,000,000 1971
Scotchollow .......... San Mateo, California 97% 324,235 29,312,804 55,500,000 1971
Shadowood ............ Monroe, Louisiana 97% 106,920 2,265,209 3,350,000 1974
Terrace Gardens ...... Omaha, Nebraska 95% 145,482 4,466,847 6,250,000 1971
Towers of
Westchester.......... College Park, Maryland 98% 332,026 12,191,075 17,000,000 1968
Vista Village ........ El Paso, Texas 96% 156,150 3,341,728 3,650,000 1971
Watergate ............ Little Rock, Arkansas 88% 150,156 2,915,638 4,500,000 1973
----------- -------------- -------------
Total/Weighted Avg. ............................ 96% 2,632,693 $109,149,602 $178,375,000
=========== ============== =============
</TABLE>
<TABLE>
<CAPTION>
AVERAGE
MONTHLY RENTAL % ONE % TWO
PROPERTY RATE PER UNIT NO. OF UNITS BEDROOM BEDROOM % OTHER
- ---------------------- -------------- -------------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
The Bluffs ............ $ 586 137 61% 35% 4%
Buena Vista ........... $1,090 92 55% 38% 7%
Casa de Monterey ...... $ 681 144 78% 22% N/A
Chapelle La Grande ... $ 721 105 32% 56% 11%
Crosswood Park ........ $ 792 180 37% 52% 12%
Forest Ridge .......... $ 636 278 60% 35% 5%
Mountain View ......... $ 913 168 N/A 74% 26%
North Park ............ $ 521 284 48% 52% N/A
Pathfinder ............ $1,221 246 N/A 58% 42%
Scotchollow ........... $1,336 418 69% 30% 1%
Shadowood ............. $ 543 120 53% 43% 3%
Terrace Gardens ....... $ 773 126 N/A 50% 50%
Towers of Westchester $ 960 303 70% 15% 5%
Vista Village ......... $ 549 220 39% 61% N/A
Watergate ............. $ 610 140 20% 50% 30%
--------------
Total/Weighted Avg. . $ 796 2,961
==============
</TABLE>
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:
OPERATING HISTORY--AIMCO MULTIFAMILY POOL LOAN
<TABLE>
<CAPTION>
TRAILING TWELVE UNDERWRITTEN
1995 1996 1997 (8/97-7/98) NET CASH FLOW
-------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Total Revenue ............. $ 23,189,240 $ 24,010,214 $ 25,422,985 $ 26,680,312 $ 26,635,981
Total Expenses & Reserves (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
============== ============== ============== =============== ===============
</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
Agree 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, which carveouts are severally but not
jointly guaranteed by the AIMCO Multifamily Pool General Partners 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 Senior 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
S-61
<PAGE>
the AIMCO Multifamily Pool Loan , the AIMCO Multifamily Pool Borrower will
be required to pay to the 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 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
"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 "Payment
Differential" equals (x) the applicable interest rate minus the 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 $30,403,848 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.
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 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.
S-62
<PAGE>
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.
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 monthly reserve
requirement set forth below:
<TABLE>
<CAPTION>
REPLACEMENT INSURANCE AND TAX
PROPERTY RESERVE ACCOUNT ESCROW ACCOUNT
- --------------------- --------------- -----------------
<S> <C> <C>
The Bluffs............ $ 3,425 (1)
Buena Vista........... $ 2,300 (1)
Casa de Monterey...... $ 3,600 (1)
Chapelle Le Grande ... $ 2,625 (1)
Crosswood Park........ $ 4,500 (1)
Forest Ridge.......... $ 6,950 (1)
Mountain View......... $ 4,200 (1)
North Park............ $ 7,100 (1)
Pathfinder............ $ 6,150 (1)
Scotchhollow.......... $10,450 (1)
Shadowood............. $ 3,000 (1)
Terrace Gardens....... $ 3,150 (1)
Towers of
Westchester.......... $ 7,575 (1)
Vista Village......... $ 5,500 (1)
Watergate............. $ 3,500 (1)
</TABLE>
- ------------
(1) 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
S-63
<PAGE>
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.
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) 0.8 to 1.0 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.
S-64
<PAGE>
"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 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", or individually, each an "EPT Pool
Property") 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").
S-65
<PAGE>
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 contain
a total of approximately 184 movie screens. The EPT Pool Property amenities
include stadium AMC LoveSeat(Trademark) style seating, 46-inch spacing
between rows, Sony Dynamic Digital Sound ("SDDS(Trademark)"), advance ticket
purchase by TeleTicket(Trademark) and TORUS(Trademark) 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
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<PAGE>
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.
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.
S-67
<PAGE>
THE PROPERTIES.
PROPERTY CHARACTERISTICS--EPT POOL LOAN
PROPERTY DESCRIPTION
<TABLE>
<CAPTION>
NUMBER NUMBER
OF OF
THEATRE COMPLEX 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
========= ========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CUT-OFF
DATE WTD. AVG.
ALLOCATED CUT-OFF UNDERWRITTEN
LOAN APPRAISED DATE NET
THEATRE COMPLEX AMOUNT VALUE LTV CASH FLOW DSCR
- --------------------- -------------- -------------- ----------- -------------- -------
<S> <C> <C> <C> <C> <C>
AMC Promenade 16 $ 19,112,420 $ 31,000,000 61.7% $ 2,979,518 1.97x
AMC Ontario Mills 30 16,954,566 27,500,000 61.7 2,643,347 1.97
AMC Studio 30 16,029,772 26,000,000 61.7 2,758,385 2.18
AMC Grand 24 12,392,246 20,100,000 61.7 1,943,183 1.99
AMC West Olive 16 11,467,452 18,600,000 61.7 1,862,958 2.06
AMC Huebner Oaks 24 10,727,616 17,400,000 61.7 1,764,900 2.08
AMC Mission Valley 20 10,049,434 16,300,000 61.7 1,703,065 2.15
AMC Lennox 24 8,014,886 13,000,000 61.7 1,344,674 2.13
-------------- -------------- ----------- -------------- -------
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 15 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.
<PAGE>
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 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
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<PAGE>
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>
CURRENT
CONTRACTUAL
LEASE LEASE LEASE
THEATER COMPLEX RSF START DATE EXPIRY PAYMENTS
- --------------------- --------- ------------ -------- -------------
<S> <C> <C> <C> <C>
AMC Promenade 16 129,822 11/97 12/10 $ 2,995,000
AMC Ontario Mills 30 131,534 11/97 12/10 2,656,500
AMC Studio 30 136,154 11/97 12/11 2,772,000
AMC Grand 24 98,175 11/97 12/10 1,953,000
AMC West Olive 16 60,418 11/97 12/11 1,869,000
AMC Huebner Oaks 24 96,004 11/97 12/11 1,774,500
AMC Mission Valley 20 84,352 11/97 12/10 1,711,500
AMC Lennox 24 98,261 11/97 12/11 1,354,500
--------- -------------
Totals 834,720 $17,086,000
========= =============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
% OF CURRENT NUMBER /
TOTAL CURRENT GROSS SALES TERM OF
LEASE % RENT GROSS SALES BREAKPOINT EXTENSION
THEATER COMPLEX PAYMENTS PAYMENT BREAKPOINT ($/SF) 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
---------- --------- -------------- -------------
Totals 100.0% 6.0% $284,766,667 $341
========== ========= ============== =============
</TABLE>
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.
<PAGE>
EPT POOL: THE LOAN
PAYMENT TERMS. The EPT Pool Loan is an ARD Loan which bears interest at
(a) 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"). 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
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<PAGE>
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 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.
"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.
S-70
<PAGE>
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.
"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.
S-71
<PAGE>
"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 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
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<PAGE>
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 $69,091,692 issued by Fifteenth Skyline
Associates Limited Partnership ("Fifteenth Skyline") and a note with a
Cut-Off Date principal balance of $18,471,045 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," or individually, each a
"Skyline City Pool Property") 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 Agreement, CESCR LP is deemed an acceptable sponsor
whose acquisition is specifically pre-approved.
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.
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<PAGE>
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 $7,550 in anticipated costs. A Phase I environmental site assessment
dated April 16, 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.
PROPERTY CHARACTERISTICS--SKYLINE CITY POOL LOAN
<TABLE>
<CAPTION>
CUT-OFF DATE
ALLOCATED
PROPERTY LOCATION GLA (SF) OCCUPANCY LOAN AMOUNT APPRAISED VALUE
- ---------------------- ---------------- --------- ----------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
One Skyline Tower .... Falls Church, VA 476,582 98.7% $60,540,726 $ 84,900,000
Three Skyline Place .. Falls Church, VA 252,086 92.8% 26,883,220 37,700,000
--------- ----------- -------------- ---------------
Total/Weighted
Average.............. 728,668 95.8% $87,423,946 $122,600,000
========= =========== ============== ===============
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED
BASE
CUT-OFF ANNUALIZED RENT UNDERWRITTEN CUT-OFF
DATE BASE PER SQUARE NET DATE
PROPERTY LTV RENT (1) FOOT(2) CASH FLOW DSCR
- ----------------------- --------- -------------- ---------------- -------------- ---------
<S> <C> <C> <C> <C> <C>
One Skyline Tower ...... 71.31% $10,800,672 $22.66 $6,888,130 1.27x
Three Skyline Place ... 71.31% 4,700,002 $20.27 3,062,885 1.40x
--------- -------------- ---------------- -------------- ---------
Total/Weighted Average 71.31% $15,500,674 $21.27 $9,951,015 1.47x
========= ============== ================ ============== =========
</TABLE>
- ------------
(1) Does not include antennae income of $408,932.
(2) Number includes potential rent from vacant area.
OCCUPANCY AND MAJOR TENANTS: As of July 1, 1998, One Skyline Tower was
approximately 100% leased and Three Skyline Place was approximately 92.2%
leased. The ten largest tenants as of July 1, 1998, based upon annualized
base rent, are shown below:
TEN LARGEST TENANTS BASED ON ANNUALIZED BASE RENT--SKYLINE CITY POOL LOAN
<TABLE>
<CAPTION>
ANNUALIZED
% OF BASE RENT
TENANT % OF TOTAL PER
GLA TOTAL ANNUALIZED ANNUALIZED SQUARE LEASE
TENANT PROPERTY (SF) GLA BASE RENT BASE RENT 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 Avg. ........ 589,895 81.1% $13,111,177 84.6% $22.23
========= ======= =============
</TABLE>
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<PAGE>
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>
PERCENT OF ANNUALIZED
EXPIRING TOTAL ANNUALIZED PERCENT OF BASE RENT
YEAR END DEC 31 SQUARE FEET SQUARE FEET BASE RENT BASE RENT PER SQUARE FOOT
- -------------------- ------------- ------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
1998 ................ 30,674 4.2% $ 690,579 4.4% $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 Avg. 728,668 100% $15,500,675 100% $21.27
============= ============= ============= ============ ===============
</TABLE>
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>
Total Revenue ........ $14,110,835 $14,817,024 $15,333,749 $16,458,125 $16,050,370
Total 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
============= ============== ============== =============== ===============
</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).
SKYLINE CITY POOL: THE LOAN
PAYMENT TERMS. The Skyline City Pool Loan is an ARD Loan which bears
interest at (a) 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. 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 (b) 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.
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<PAGE>
PREPAYMENT. Except as described below, voluntary prepayment is prohibited
under the Skyline City Pool Loan prior to September 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 GSA 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 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
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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:
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 ...... $145,733.60 $ 545,033 (4) (3)
1999 ...... $145,733.60 $1,913,467 (4) (3)
2000 ...... $145,733.60 $ 817,550 (4) (3)
2001 ...... $145,733.60 $ 500,798 (4) (3)
2002 ...... $145,733.60 $1,066,711 (4) (3)
2003 ...... $145,733.60 $1,370,054 (4) (3)
2004 ...... $145,733.60 $ 208,159 (4) (3)
2005 ...... $145,733.60 $ 263,186 (4) (3)
2006 ...... $145,733.60 $ 972,847 (4) (3)
2007 ...... $145,733.60 $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
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<PAGE>
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 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
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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 GSA 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.
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 15 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 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 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 a trust fund (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 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 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 and Class J 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 ..... $ 107,037,000
Class G ..... $ 55,846,000
Class H ..... $ 23,269,000
Class J ..... $ 37,231,197
</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 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
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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 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 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--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:
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(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 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 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.
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"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.
"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.
"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
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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 %.
The Pass-Through Rate on the Class A-2 Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class A-3 Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class B Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class C Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class D Certificates is a per annum rate
equal to %, 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 %, subject to a cap equal to the WAC Rate.
The Pass-Through Rate on the Class F Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class G Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class H Certificates is a per annum rate
equal to %.
The Pass-Through Rate on the Class J Certificates is a per annum rate
equal to %.
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.
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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 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. 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
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 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 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.
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The Principal Distribution Amount for Group I 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 deposits during
the applicable period into the Reserve Account.
For purposes of the foregoing definition of Principal Distribution Amount,
the term "Principal Shortfall" for any Distribution Date and 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 Balances 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;
(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;
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(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;
(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 Balance 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 Balance 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; and
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(xxvii) Twenty-seventh, 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.
If 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 has paid in full more than
30 days after its maturity date (or in the case of an ARD Loan, its
Anticipated Repayment Date), 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 Class A-3 Certificates
have been 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 pays in
full more than 30 days after its maturity date (or in the case of an ARD
Loan, its Anticipated Repayment Date) 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.
On the Closing Date, the Seller will cause to be deposited with the
Trustee a guarantee, U.S. government securities, a guaranteed investment
contract and/or such other obligation or instrument (in each case, a
"Reinvestment Enhancement Instrument"), the payments on which will be
sufficient to cover any reinvestment shortfall that might otherwise be
suffered by the Certificateholders resulting from the reinvestment of funds
on deposit in the Reserve Account. 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) or a
delinquency of 60 days or more occurs with respect to a Mortgage Loan, the
Trustee will release to the Seller the Reinvestment Enhancement Instrument,
and there will be no further obligation to maintain a Reinvestment
Enhancement Instrument for the benefit of Certificateholders.
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 and Class E,
Class F, Class G, Class
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H and Class J 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 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--Characteristics of the Mortgage Loans--Prepayment Provisions."
See also "Certain Legal Aspects of the Mortgage Loans--Enforceability of
Certain Provisions--Prepayment Provisions" in the Prospectus.
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.
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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 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. 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 J
Certificates; second, to the Class H Certificates; third, to the Class G
Certificates; fourth, to the Class F Certificates; fifth, to the Class E
Certificates; sixth, to the Class D Certificates; seventh, to the Class C
Certificates; eighth, 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) 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 "--Appraisal
Reductions" below, and (ii) the Voting Rights of certain Classes will be
reduced as
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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 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 exceed 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 J
Certificates; second, to the Class H Certificates; third, to the Class G
Certificates; fourth, to the Class F Certificates; fifth, to the Class E
Certificates; sixth, to the Class D Certificates; seventh, 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
and Class J 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 and
Class J Certificates. The Class C Certificates will likewise be protected by
the subordination of the Class D, Class E, Class F, Class G, Class H and
Class J Certificates. The Class D Certificates will likewise be protected by
the subordination of the Class E, Class F, Class G, Class H and Class J
Certificates. The Class E Certificates will likewise be protected by the
subordination of the Class F, Class G, Class H and Class J 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 J
Certificates; second, to the Class H Certificates; third, to the Class G
Certificates; fourth, to the Class F Certificates; fifth, to the Class E
Certificates; sixth, to the Class D Certificates; seventh, to the Class C
Certificates; eighth, 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 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
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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 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 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 Servicing 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, 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
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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 mortgagor or any person affiliated with the
Seller, the Trustee, the Master Servicer, or the Special Servicer, such
Certificate 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 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
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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.
Although DTC, Euroclear and CEDEL have implemented the foregoing
procedures in order to facilitate transfers of interests in Global
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.
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<PAGE>
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 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
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<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 Mortgage 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 Aniticpated 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,
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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 and (xiii) the Class A-1 Pass-Through Rate is 6.07%, the Class A-2
Pass-Through Rate is 6.60%, the Class A-3 Pass-Through Rate is 6.45%, the
Class B Pass-Through Rate is 6.80%, the Class C Pass-Through Rate is 7.00%,
the Class D and Class E Pass-Through Rates are the lesser of 7.45% or the WAC
Rate, and the Class F, Class G, Class H and Class J Pass-Through Rates are
6.00%.
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 the
Certificate Balance thereof 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 Balance 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 Balance 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.
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<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF
THE CLASS A-1 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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 BALANCE OF
THE CLASS A-2 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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 9.39 9.18
========== =========== =========== =========== ============
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
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PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF
THE CLASS A-3 CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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 8.58
========== =========== =========== =========== ============
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF
THE CLASS B CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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-101
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF
THE CLASS C CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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 BALANCE OF
THE CLASS D CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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-102
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF
THE CLASS E CERTIFICATES AT THE SPECIFIED CPRS
0% CPR DURING LOCKOUT, DEFEASANCE, YM--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, 1989........... 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-103
<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, YM--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 6.200% 6.200% 6.200% 6.200% 6.200%
99.20 6.169% 6.169 6.169 6.169 6.169
99.24 6.138% 6.138 6.138 6.138 6.138
99.28 6.108% 6.108 6.107 6.107 6.107
100.00 6.077% 6.077 6.077 6.077 6.076
100.04 6.046% 6.046 6.046 6.046 6.045
100.08 6.016% 6.016 6.016 6.015 6.014
100.12 5.986% 5.985 5.985 5.985 5.984
100.16 5.955% 5.955 5.955 5.954 5.953
100.20 5.925% 5.925 5.924 5.924 5.922
100.24 5.895% 5.894 5.894 5.893 5.891
100.28 5.865% 5.864 5.864 5.863 5.861
101.00 5.834% 5.834 5.833 5.833 5.830
101.04 5.804% 5.804 5.803 5.803 5.800
101.08 5.774% 5.774 5.773 5.772 5.769
101.12 5.744% 5.744 5.743 5.742 5.739
101.16 5.714% 5.714 5.713 5.712 5.709
Weighted Average Life (in
years) 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-104
<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, YM--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 6.646% 6.646% 6.646% 6.646% 6.645%
100.04 6.628% 6.628% 6.627% 6.627% 6.626%
100.08 6.610% 6.609% 6.609% 6.609% 6.608%
100.12 6.592% 6.591% 6.591% 6.591% 6.589%
100.16 6.573% 6.573% 6.573% 6.572% 6.571%
100.20 6.555% 6.555% 6.555% 6.554% 6.552%
100.24 6.537% 6.537% 6.537% 6.536% 6.534%
100.28 6.519% 6.519% 6.519% 6.518% 6.515%
101.00 6.501% 6.501% 6.501% 6.500% 6.497%
101.04 6.483% 6.483% 6.483% 6.482% 6.478%
101.08 6.466% 6.465% 6.465% 6.464% 6.460%
101.12 6.448% 6.447% 6.447% 6.446% 6.442%
101.16 6.430% 6.429% 6.429% 6.428% 6.423%
101.20 6.412% 6.411% 6.411% 6.410% 6.405%
101.24 6.394% 6.394% 6.393% 6.392% 6.387%
101.28 6.376% 6.376% 6.375% 6.374% 6.369%
102.00 6.359% 6.358% 6.357% 6.356% 6.350%
Weighted Average Life (in years) 9.49 9.46 9.43 9.39 9.18
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 May-2008
</TABLE>
* "PP" means 100% of each loan prepays when it becomes freely prepayable.
S-105
<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, YM--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
100.16 6.415% 6.414% 6.414% 6.414% 6.411%
100.20 6.396% 6.396% 6.395% 6.394% 6.392%
100.24 6.378% 6.377% 6.376% 6.375% 6.372%
100.28 6.359% 6.358% 6.357% 6.356% 6.353%
101.00 6.340% 6.339% 6.338% 6.337% 6.333%
101.04 6.321% 6.320% 6.319% 6.318% 6.314%
101.08 6.303% 6.301% 6.300% 6.299% 6.295%
101.12 6.284% 6.282% 6.282% 6.280% 6.275%
101.16 6.265% 6.264% 6.263% 6.261% 6.256%
101.20 6.247% 6.245% 6.244% 6.243% 6.237%
101.24 6.228% 6.226% 6.225% 6.224% 6.218%
101.28 6.210% 6.208% 6.206% 6.205% 6.198%
102.00 6.191% 6.189% 6.188% 6.186% 6.179%
102.04 6.173% 6.170% 6.169% 6.167% 6.160%
102.08 6.154% 6.152% 6.151% 6.149% 6.141%
102.12 6.136% 6.133% 6.132% 6.130% 6.122%
102.16 6.118% 6.115% 6.113% 6.111% 6.103%
Weighted Average Life (in years) 8.99 8.91 8.87 8.81 8.58
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-106
<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, YM--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 6.851% 6.851% 6.851% 6.851% 6.850%
100.04 6.834% 6.833% 6.833% 6.833% 6.832%
100.08 6.816% 6.815% 6.815% 6.815% 6.814%
100.12 6.798% 6.797% 6.797% 6.797% 6.796%
100.16 6.781% 6.779% 6.779% 6.779% 6.778%
100.20 6.763% 6.762% 6.761% 6.761% 6.760%
100.24 6.746% 6.744% 6.744% 6.743% 6.742%
100.28 6.728% 6.726% 6.726% 6.725% 6.724%
101.00 6.711% 6.708% 6.708% 6.708% 6.706%
101.04 6.693% 6.691% 6.690% 6.690% 6.688%
101.08 6.676% 6.673% 6.673% 6.672% 6.670%
101.12 6.658% 6.655% 6.655% 6.654% 6.652%
101.16 6.641% 6.638% 6.637% 6.637% 6.634%
101.20 6.623% 6.620% 6.620% 6.619% 6.616%
101.24 6.606% 6.603% 6.602% 6.601% 6.598%
101.28 6.589% 6.585% 6.585% 6.584% 6.581%
102.00 6.571% 6.568% 6.567% 6.566% 6.563%
Weighted Average Life (in years) 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-107
<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, YM--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 7.199% 7.200% 7.201% 7.201% 7.201%
99.08 7.163% 7.164% 7.164% 7.164% 7.165%
99.16 7.127% 7.127% 7.127% 7.127% 7.128%
99.24 7.091% 7.091% 7.091% 7.091% 7.091%
100.00 7.055% 7.055% 7.055% 7.055% 7.054%
100.08 7.020% 7.019% 7.019% 7.019% 7.018%
100.16 6.984% 6.983% 6.983% 6.983% 6.982%
100.24 6.949% 6.947% 6.947% 6.947% 6.945%
101.00 6.913% 6.911% 6.911% 6.911% 6.909%
101.08 6.878% 6.876% 6.875% 6.875% 6.873%
101.16 6.843% 6.840% 6.840% 6.840% 6.837%
101.24 6.808% 6.805% 6.804% 6.804% 6.802%
102.00 6.773% 6.769% 6.769% 6.769% 6.766%
102.08 6.738% 6.734% 6.734% 6.734% 6.730%
102.16 6.703% 6.699% 6.699% 6.699% 6.695%
102.24 6.669% 6.664% 6.664% 6.663% 6.660%
103.00 6.634% 6.629% 6.629% 6.629% 6.624%
Weighted Average Life (in
years) 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-108
<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, YM--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- -------------------------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
96.16 7.908% 7.911% 7.910% 7.910% 7.909%
96.24 7.870% 7.873% 7.872% 7.871% 7.870%
97.00 7.832% 7.835% 7.834% 7.833% 7.832%
97.08 7.794% 7.797% 7.796% 7.795% 7.793%
97.16 7.757% 7.759% 7.758% 7.757% 7.755%
97.24 7.719% 7.721% 7.720% 7.720% 7.717%
98.00 7.682% 7.684% 7.683% 7.682% 7.679%
98.08 7.644% 7.646% 7.645% 7.644% 7.641%
98.16 7.607% 7.609% 7.608% 7.607% 7.603%
98.24 7.570% 7.572% 7.571% 7.570% 7.565%
99.00 7.533% 7.535% 7.534% 7.532% 7.528%
99.08 7.497% 7.498% 7.497% 7.495% 7.491%
99.16 7.460% 7.461% 7.460% 7.459% 7.453%
99.24 7.424% 7.424% 7.423% 7.422% 7.416%
100.00 7.387% 7.388% 7.387% 7.385% 7.379%
100.08 7.351% 7.351% 7.350% 7.348% 7.342%
100.16 7.315% 7.315% 7.314% 7.312% 7.305%
Weighted Average Life (in years) 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-109
<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, YM--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------
ASSUMED
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- ------------------------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
92.00 8.615% 8.622% 8.621% 8.620% 8.628%
92.08 8.575% 8.582% 8.581% 8.579% 8.587%
92.16 8.534% 8.541% 8.540% 8.539% 8.546%
92.24 8.494% 8.501% 8.500% 8.498% 8.505%
93.00 8.454% 8.460% 8.459% 8.458% 8.464%
93.08 8.414% 8.420% 8.419% 8.418% 8.424%
93.16 8.374% 8.380% 8.379% 8.378% 8.383%
93.24 8.335% 8.341% 8.340% 8.338% 8.343%
94.00 8.295% 8.301% 8.300% 8.299% 8.303%
94.08 8.256% 8.261% 8.260% 8.259% 8.263%
94.16 8.217% 8.222% 8.221% 8.220% 8.223%
94.24 8.178% 8.183% 8.182% 8.180% 8.183%
95.00 8.139% 8.143% 8.142% 8.141% 8.144%
95.08 8.100% 8.104% 8.103% 8.102% 8.104%
95.16 8.061% 8.065% 8.064% 8.063% 8.065%
95.24 8.023% 8.027% 8.026% 8.024% 8.026%
96.00 7.984% 7.988% 7.987% 7.986% 7.987%
Weighted Average Life (in
years) 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-110
<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 corporate bond equivalent ("CBE") basis, 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-111
<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, YM--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------
PRICE (32NDS) 0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
4.16 11.658% 11.568% 11.503% 11.420% 11.077%
4.18 11.302% 11.211% 11.146% 11.062% 10.716%
4.20 10.953% 10.861% 10.796% 10.711% 10.363%
4.22 10.612% 10.520% 10.454% 10.369% 10.018%
4.24 10.279% 10.186% 10.119% 10.033% 9.680%
4.26 9.953% 9.859% 9.792% 9.705% 9.349%
4.28 9.633% 9.539% 9.471% 9.384% 9.026%
4.30 9.321% 9.225% 9.158% 9.070% 8.709%
5.00 9.014% 8.918% 8.850% 8.762% 8.399%
5.02 8.714% 8.617% 8.549% 8.460% 8.095%
5.04 8.420% 8.323% 8.254% 8.164% 7.797%
5.06 8.131% 8.034% 7.964% 7.875% 7.505%
5.08 7.849% 7.750% 7.680% 7.590% 7.219%
5.10 7.571% 7.472% 7.402% 7.311% 6.938%
5.12 7.299% 7.199% 7.129% 7.038% 6.662%
5.14 7.032% 6.931% 6.860% 6.769% 6.391%
5.16 6.769% 6.668% 6.597% 6.505% 6.126%
Weighted Average Life (in years) 9.34 9.28 9.25 9.22 9.05
First Payment Date Nov-98 Nov-98 Nov-98 Nov-98 Nov-98
Last 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.
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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 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,
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
arrangements can be made for the collection of the delinquent payments, the
maximization of the
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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 Series 1998-GL II Pooling
Agreement, the servicer and 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 any REO Property.
The Pooling Agreement will define a "Specially Serviced Mortgage Loan" to
include
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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 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 Modifications" 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
in the
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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 lesser of (a) the related Extended Monthly Payment or (b)
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 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.
The amount required to be advanced by the Master Servicer with respect to any
Distribution Date in respect of scheduled payments (or Extended Monthly
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 Collection Account, the Lower-Tier Distribution Account, the
Upper-Tier Distribution Account, the Interest Reserve Account, the Excess
Interest Distribution Account and the Class Q Distribution 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 and the Class Q Distribution 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 and Escrow 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 and any REO 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.
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 Trustee Fee for such 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
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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 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.
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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.
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
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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 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.
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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 and to 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 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.
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.
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
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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.
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.
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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
and Class J 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.
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 Mortgagor, 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
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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 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,
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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 Advances. With respect
to such conclusions, the Master Servicer may conclusively rely (absent
manifest error) on the Special Servicer's computations and analysis.
MODIFICATIONS, WAIVERS AND AMENDMENTS
The Pooling and Servicing 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
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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 and Servicing 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 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 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 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. See "Description of the Pooling and Servicing
Agreement".
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,
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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-GLII Special Servicer may agree to modify the Americold Pool Loan
pursuant to the Series 1998-GLII 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-GLII 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-GLII 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-GLII Pooling Agreement, the 1998-GLII 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-GLII 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-GLII 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-GLII Pooling Agreement, the 1998-GLII Loan
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-GLII Certificateholders.
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 Class
Balance (or if no class of Certificates has a Class Balance of at least 25%
of its initial Class Balance, the most subordinate class outstanding) (the
"Controlling Class") will designate a representative pursuant to the Pooling
and Servicing 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, except with the respect to the
Americold Pool Loan, the Controlling Class Representative may remove and
replace the Special Servicer with another Special Servicer acceptable to the
Rating Agencies.
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 and Servicing Agreement, or
for error in judgment; provided, however, that the Controlling Class
Representative will not
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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 and Servicing 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.
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 and Servicing 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
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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.
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
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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.
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.
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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
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
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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. 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 $60 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) 1/12th times a per annum rate of 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, provided, that,
in connection with any partial interest payment, such amounts shall be
computed, for the same period respecting which any related interest payment
due or deemed due on the related Mortgage Loan is computed. 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 Prepayment Interest
Shortfalls; provided, however, that in no event shall the amount exceed 1/12
of 0.04% of the Stated Principal Balance of the Mortgage Loans for the
related Collection Period. 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
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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 holders of Certificates
evidencing greater than 50% of the Percentage Interests of the most
subordinate Class of Certificates then outstanding (provided, however, that
for purposes of determining the most subordinate Class, in the event that the
Class A Certificates and the Class X Certificates are the only Classes
outstanding, the Class A Certificates and the Class X Certificates together
will be treated as the subordinate Class) may replace the Special Servicer,
provided that each Rating Agency confirms to the Trustee in writing that such
replacement, will not cause a qualification, withdrawal or downgrading of the
then-current ratings assigned to any Class of Certificates.
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 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
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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 Due 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 Due
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 Due 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 Due Date immediately preceding the preparation of such
report, (i) the acquisition date of such REO Property, (ii) the amount 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.
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
two business days prior to the Master Servicer Remittance Date. Absent
manifest error, none of the Master Servicer, the Special Servicer or the
Trustee shall be responsible for
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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.
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
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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
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
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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 REMICs
(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 which will
be deposited directly into the Upper-Tier REMIC), proceeds therefrom, 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 and Class G 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 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. 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.
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[It is anticipated that the regular interests represented by the Class
A-1, Class A-2, Class A-3, Class B, Class C and Class D Certificates will be
issued at a premium and that the regular interest represented by the Class E
Certificates will be issued with de minimis 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 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 Code provisions 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 Scenario 1 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 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.
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.
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The U.S. Department of Labor issued an individual exemption, Prohibited
Transaction Exemption 89-88 (the "Exemption"), on October 11, 1989 to
Goldman, Sachs & Co., which generally exempts from the application of certain
prohibited transaction provisions of Section 406 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 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 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, and 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. 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.
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
S-140
<PAGE>
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 Prohibited Transaction Class
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 $
.
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, the Underwriter 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 the
Underwriter 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.
S-141
<PAGE>
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 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 and ACMFLP 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 set forth below 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"):
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 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-142
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
S-143
<PAGE>
INDEX OF SIGNIFICANT DEFINITIONS
<TABLE>
<CAPTION>
<S> <C>
ACLI ..................................................... S-40
ACLI Loans ............................................... S-40
ACLP ..................................................... S-7, S-40
ACLP Loans ............................................... S-40
ACMFLP ................................................... S-40
ACMFLP Loans ............................................. S-40
ADA ...................................................... S-31
Advance Rate ............................................. S-117
Advances ................................................. S-13, S-116
AEN ...................................................... S-65
AIMCO .................................................... S-59
AIMCO Individual Multifamily Pool Loan ................... S-58
AIMCO Multifamily Junior Loan ............................ 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-65
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-64
AIMCO Multifamily Pool NOI ............................... S-65
AIMCO Multifamily Pool Notes ............................. S-58
AIMCO Multifamily Pool Plan .............................. S-58
AIMCO Multifamily Pool Properties ........................ S-58
AIMCO Multifamily Pool Revised Plan ...................... S-58
AMC ...................................................... S-21
Americold ................................................ S-47
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 Local Account ............................. S-55
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
S-144
<PAGE>
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
Anticipated Repayment Date ............................... S-33
Appraisal Reduction Amount ............................... S-91
Appraisal Reduction Event ................................ S-91
Archon ................................................... S-7
Archon Loans ............................................. S-40
ARD Loans ................................................ S-43
Asset Status Report ...................................... S-127
Available Funds .......................................... S-81
Balloon Payment .......................................... S-34
Bankruptcy Code .......................................... S-22
Base Interest Fraction ................................... S-89
CBE ...................................................... S-104, S-111
CEDEL Participants ....................................... S-94
CERCLA ................................................... S-30
Certificate Owners ....................................... S-95
Certificate Registrar .................................... S-92
Certificateholder ........................................ S-92
CESCR LP ................................................. S-73
Class .................................................... S-80
Class A Certificates ..................................... S-80
Class Q Distribution Account ............................. S-118
Co-Lender Agreement ...................................... S-38, S-54
Collection Account ....................................... S-117
Collection Period ........................................ S-83
Commission ............................................... S-132
Controlling Class ........................................ S-128
Controlling Class Representative ......................... S-128
CPC Loans ................................................ S-40
Cross-over Date .......................................... S-88
Default Interest ......................................... S-83
Default Prepayment Date .................................. S-62
Default Rate ............................................. S-83
Defeasance Deposit ....................................... S-44
Defeasance Loans ......................................... S-43
Defeasance Lock-out Period ............................... S-43
Defeasance Option ........................................ S-43
Definitive Certificate ................................... S-92
Depositories ............................................. S-93
Determination Date ....................................... S-83
Distribution Date ........................................ S-81
S-145
<PAGE>
DSCR ..................................................... S-9
DTC ...................................................... S-7
Eligible Bank ............................................ S-118
EPT ...................................................... S-65
EPT Capital Reserve Account .............................. S-71
EPT Defeasance Deposit ................................... S-70
EPT Deposit Account ...................................... S-72
EPT Low Debt Service Account ............................. S-71
EPT Low Debt Service Application Event ................... S-71
EPT Low Debt Service Reserve Trigger Event ............... S-71
EPT Low Debt Service Return Event ........................ S-71
EPT Low Debt Service Trigger Period ...................... S-72
EPT Master Lease ......................................... S-68
EPT Master Lease Tenant .................................. S-68
EPT Monthly Payment ...................................... S-69
EPT Pool Borrower ........................................ S-65
EPT Pool Initial Interest Rate ........................... S-69
EPT Pool Loan ............................................ S-65
EPT Pool Maturity Date ................................... S-69
EPT Pool Properties ...................................... S-65
EPT Pool Property ........................................ S-65
EPT Tax, Insurance and Ground Lease Escrow Period ....... S-71
ERISA .................................................... S-139
ERISA Considerations ..................................... S-140
ESA ...................................................... S-31
Euroclear Participants ................................... S-94
Event of Default ......................................... S-122
Excess Cashflow .......................................... S-43
Excess Interest .......................................... S-43, S-83
Excess Interest Distribution Account ..................... S-118
Excess Prepayment Interest Shortfall ..................... S-90
Excess Rate .............................................. S-83
Exemption ................................................ S-140
Falcon ................................................... S-7
Falcon Loan .............................................. S-40
Fashion Valley Theater ................................... S-67
Fifteenth Skyline ........................................ S-73
FIRREA ................................................... S-45
Fitch .................................................... S-16, S-142
Fixed Voting Rights Percentage ........................... S-124
Form 8-K ................................................. S-46
GMACCM ................................................... S-133
Goldman, Sachs ........................................... S-141
Group 1 .................................................. S-8
Group 2 .................................................. S-8
GSMC ..................................................... S-7
GSMC Loans ............................................... S-40
Healthcare Adviser ....................................... S-129
Healthcare Adviser Fee ................................... S-129
Healthcare Adviser Loans ................................. S-129
Holders .................................................. S-95
S-146
<PAGE>
Indirect Participants .................................... S-93
Initial Pool Balance ..................................... S-8, S-40
Initial Rate ............................................. S-43
Interest Accrual Amount .................................. S-83
Interest Accrual Period .................................. S-84
Interest Distribution Amount ............................. S-84
Interest Reserve Account ................................. S-117
Interest Shortfall ....................................... S-84
Joint Venture ............................................ S-47
Liquidation Fee .......................................... S-134
Loan Group ............................................... S-8
Loan Sellers ............................................. S-40
Lower-Tier Distribution Account .......................... S-117
Lower-Tier Regular Interests ............................. S-138
Lower-Tier REMIC ......................................... S-138
Maeril ................................................... S-59
Master Servicer Remittance Date .......................... S-116
Modeling Assumptions ..................................... S-98
Monthly Payment .......................................... S-82
Moody's .................................................. S-71
Mortgage ................................................. S-40
Mortgage Loans ........................................... S-40
Mortgage Note ............................................ S-40
Mortgage Pool ............................................ S-8
Mortgage Rate ............................................ S-85
Mortgaged Property ....................................... S-40
Negative Adjustment ...................................... S-139
Net Default Interest ..................................... S-83
Net Mortgage Rate ........................................ S-85
Net REO Proceeds ......................................... S-83
Ninth Skyline ............................................ S-73
Notional Amount .......................................... S-81
Offered Certificates ..................................... S-80
One Skyline Tower ........................................ S-73
Originators .............................................. S-40
Other Americold Pool Loan ................................ S-38, S-54
Other Trustee ............................................ S-38, S-54
PAR ...................................................... S-46
Participants ............................................. S-92
Pass-Through Rate ........................................ S-10, S-84
Percentage Interest ...................................... S-81
Permitted Investments .................................... S-118
P&I Advance .............................................. S-13, S-116
Plan ..................................................... S-95, S-139
PML ...................................................... S-48
Pooling Agreement ........................................ S-113
Prepayment Interest Excess ............................... S-90
Prepayment Interest Shortfall ............................ S-90
Prepayment Period ........................................ S-83
Prime Rate ............................................... S-117
Principal Distribution Amount ............................ S-85
S-147
<PAGE>
Principal Prepayments .................................... S-83
Principal Recovery Percentage ............................ S-134
Principal Shortfall ...................................... S-86
Private Certificates ..................................... S-10, S-80
Property Advances ........................................ S-13, S-116
Property Condition Reports ............................... S-67
Rated Final Distribution Date ............................ S-98
Rating Agencies .......................................... S-142
Realized Loss ............................................ S-90
Regular Certificates ..................................... S-85
Rehabilitation Fee ....................................... S-134
Reinvestment Enhancement Instrument ...................... S-13, S-88
Release Date ............................................. S-44
REO Account .............................................. S-80
REO Mortgage Loan ........................................ S-86
REO Property ............................................. S-80
Reserve Account .......................................... S-88
Restricted Group ......................................... S-140
Revised Rate ............................................. S-43
Rules .................................................... S-94
SDDS ..................................................... S-66
Sequential Pay Certificates .............................. S-80
Series 1998-GL II ........................................ S-38, S-54
Series 1998-GL II Pooling Agreement ...................... S-114
Servicing Compensation ................................... S-82
Servicing Fee ............................................ S-133
Servicing Fee Rate ....................................... S-133
Servicing Standard ....................................... S-114
Similar Law .............................................. S-95
Skyline City Pool Borrowers .............................. S-73
Skyline City Pool Defeasance Deposit ..................... S-76
Skyline City Pool Deposit Account ........................ S-78
Skyline City Pool Initial Interest Rate .................. S-75
Skyline City Pool Loan ................................... S-73
Skyline City Pool Low Debt Service Application Event .... S-78
Skyline City Pool Low Debt Service Reserve Account ...... S-77
Skyline City Pool Low Debt Service Return Event ......... S-78
Skyline City Pool Low Debt Service Trigger Event ........ S-78
Skyline City Pool Management Agreements .................. S-75
Skyline City Pool Manager ................................ S-73
Skyline City Pool Maturity Date .......................... S-75
Skyline City Pool Properties ............................. S-73
Skyline City Pool Property ............................... S-73
Skyline City Pool Property Level Sweep Account .......... S-78
Skyline City Pool Release Amount ......................... S-76
SMMEA .................................................... S-141
S&P ...................................................... S-16, S-142
Special Servicer ......................................... S-134
Special Servicer's Appraisal Reduction Estimate ......... S-92
Special Servicing Fee .................................... S-134
Specially Serviced Mortgage Loan ......................... S-114
S-148
<PAGE>
Stated Principal Balance ................................. S-85
Subordinate Debt ......................................... S-32
The Americold Pool Loan .................................. S-47
Three Skyline Place ...................................... S-73
Total Americold Pool Loan ................................ S-47
Treasury Rate ............................................ S-43
Trust Fund ............................................... S-80
Trustee Fee .............................................. S-131
Trustee Fee Rate ......................................... S-131
Unscheduled Payments ..................................... S-83
Updated Appraisal ........................................ S-124
Upper-Tier Distribution Account .......................... S-117
Upper-Tier REMIC ......................................... S-138
URS ...................................................... S-47
Voting Rights ............................................ S-124
WAC Rate ................................................. S-84
Withheld Amounts .........................................
</TABLE>
S-149
<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. 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 expenses 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" or "Debt Service Coverage Ratio" means, with respect to any
Mortgage Loan, (a) the Net Cash Flow for the related Mortgaged Property or
Properties, divided by (b) the Annual Debt Service for such Mortgage Loan.
7. "Largest Tenant Lease Expiration Date" means the date at which the
Largest Tenant's lease is scheduled to expire.
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. "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,
A-1
<PAGE>
may have been updated to reflect a more recent operating period. Net Cash
Flow does not reflect debt service, subordinated ground rent, 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.
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 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 (Canterburg Village Apts). This Mortgage Loan has a
Cut-Off Date LTV of 89.69%, based on a Cut-Off Date principal balance of
$5,470,880 and current "as is" appraised value of $6,100,000. The Cut-Off
Date principal 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 principal 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-2
<PAGE>
<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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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7 09-0001128 2 GSMC (Archon) Factory Stores at Hershey 46 Outlet Square
400029224 1
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
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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
14 400029220A 1 GSMC (ACLP) 196 Broadway 196 Broadway
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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
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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
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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
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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
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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
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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
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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
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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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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)
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
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 ZIP PROPERTY ORIGINAL CUT-OFF
NUMBER CITY STATE CODE TYPE BALANCE DATE BALANCE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 $ 148,500,000 $ 147,597,677
1a Denver CO 80216 Industrial 1,768,537 1,757,790
1b Bettendorf IA 52722 Industrial 4,107,568 4,082,610
1c Boston MA 02118 Industrial 2,110,834 2,098,008
1d Burley ID 83318 Industrial 10,012,198 9,951,361
- ---------------------------------------------------------------------------------------------------------------------
1e Burlington WA 98233 Industrial 4,506,915 4,479,530
1f Clearfield UT 84041 Industrial 7,929,889 7,881,705
1g Connell WA 99326 Industrial 6,532,175 6,492,483
1h Gloucester MA 01937 Industrial 2,367,557 2,353,171
1i Fogelsville PA 18051 Industrial 16,430,273 16,330,438
- ---------------------------------------------------------------------------------------------------------------------
1j Fort Dodge IA 50501 Industrial 1,354,927 1,346,694
1k Hermiston OR 97838 Industrial 6,703,323 6,662,592
1l Los Angeles CA 90023 Industrial 2,082,309 2,069,656
1m Tampa FL 33611 Industrial 128,362 127,582
1n Milwaukie OR 97222 Industrial 5,391,184 5,358,425
- ---------------------------------------------------------------------------------------------------------------------
1o Moses Lake WA 98837 Industrial 9,755,475 9,696,198
1p Nampa ID 83653 Industrial 5,819,055 5,783,697
1q Plant City FL 33566 Industrial 684,595 680,435
1r Plover WI 54467 Industrial 13,634,845 13,551,996
1s Gloucester MA 01937 Industrial 656,070 652,083
- ---------------------------------------------------------------------------------------------------------------------
1t Rochelle IL 61068 Industrial 7,017,096 6,974,458
1u Gloucester MA 01937 Industrial 3,480,023 3,458,878
1v Gloucester MA 01937 Industrial 4,079,044 4,054,258
1w Salem OR 97269 Industrial 9,299,078 9,242,575
1x Altanta GA 30310 Industrial 3,052,152 3,033,606
- ---------------------------------------------------------------------------------------------------------------------
1y Turlock CA 95380 Industrial 2,595,755 2,579,982
1z Walla Walla WA 99362 Industrial 2,852,478 2,835,146
1aa Wallula WA 99363 Industrial 1,939,685 1,927,899
1bb Watsonville CA 95076 Industrial 5,191,510 5,159,965
1cc Woodburn OR 97071 Industrial 7,017,095 6,974,458
- ---------------------------------------------------------------------------------------------------------------------
2 110,000,000 109,149,602
2a San Mateo CA 94403 Multifamily 29,541,184 29,312,804
2b Milwaukee OR 97222 Multifamily 3,775,357 3,746,170
2c Pasadena CA 91101 Multifamily 5,022,519 4,983,690
2d Norwalk CA 90650 Multifamily 4,158,597 4,126,447
- ---------------------------------------------------------------------------------------------------------------------
2e Merrillville IN 46410 Multifamily 3,253,311 3,228,160
2f Citrus Heights CA 95621 Multifamily 5,645,175 5,601,533
2g Flagstaff AZ 86001 Multifamily 5,981,972 5,935,726
2h San Dimas CA 91773 Multifamily 7,256,664 7,200,564
2i Evansville IN 47710 Multifamily 6,339,064 6,290,057
- ---------------------------------------------------------------------------------------------------------------------
2j Fremont CA 94538 Multifamily 13,649,475 13,543,952
2k Monroe LA 71201 Multifamily 2,282,858 2,265,209
2l Omaha NE 68134 Multifamily 4,501,649 4,466,847
2m College Park MD 20740 Multifamily 12,286,057 12,191,075
2n El Paso TX 79935 Multifamily 3,367,764 3,341,728
- ---------------------------------------------------------------------------------------------------------------------
2o Little Rock AR 72227 Multifamily 2,938,354 2,915,638
3 105,000,000 104,748,392
3a Dallas TX 77063 Movie Theatre 12,443,986 12,392,246
3b Woodland Hills CA 91367 Movie Theatre 19,192,217 19,112,420
3c Houston TX 77063 Movie Theatre 16,096,698 16,029,772
- ---------------------------------------------------------------------------------------------------------------------
3d Ontario CA 91764 Movie Theatre 17,025,354 16,954,566
3e Creve Coeur MO 63141 Movie Theatre 11,515,330 11,467,452
3f San Antonio TX 78203 Movie Theatre 10,772,406 10,727,616
3g Columbus OH 43212 Movie Theatre 8,048,349 8,014,886
3h San Diego CA 92108 Movie Theatre 9,905,660 10,049,434
- ---------------------------------------------------------------------------------------------------------------------
4 87,700,000 87,423,946
4a Falls Church VA 22041 Office 69,200,000 60,540,726
4b Falls Church VA 22041 Office 18,500,000 26,883,220
5 Washington DC 20037 Luxury Hotel 47,000,000 47,000,000
6 Tulsa OK 74103 Office 33,000,000 32,909,936
- ---------------------------------------------------------------------------------------------------------------------
7 Hershey PA 17033 Anchored Retail 25,600,000 25,580,579
25,500,000 25,422,364
8 New York NY 10011 Unanchored Retail 9,950,000 9,919,707
9 New York NY 10028 Unanchored Retail 5,850,000 5,832,189
10 New York NY 10016 Unanchored Retail 3,880,000 3,868,187
- ---------------------------------------------------------------------------------------------------------------------
11 New York NY Multifamily 3,270,000 3,260,044
12 New York NY 10019 Unanchored Retail 2,550,000 2,542,236
13 Portland OR 97205 Luxury Hotel 24,500,000 24,447,349
22,520,000 22,451,437
14 New York NY 10038 Unanchored Retail 6,860,000 6,839,114
- ---------------------------------------------------------------------------------------------------------------------
15 New York NY 10021 Unanchored Retail 6,220,000 6,201,063
16 New York NY 10022 Unanchored Retail 4,510,000 4,496,269
17 New York NY UAV Office 3,250,000 3,240,105
18 New York NY 10011 Unanchored Retail 1,680,000 1,674,885
19 Independence OH 44131 Full Service Hotel 21,800,000 21,777,411
- ---------------------------------------------------------------------------------------------------------------------
20 Bristol WI 53142 Unanchored Retail 21,500,000 21,500,000
21 Katonah NY 10536 Hospital 21,350,000 21,308,138
22 Bayamon PR 00946 Hospital 21,000,000 20,934,186
23 Ypsilanti MI 48198 Industrial 20,000,000 19,682,137
24 Torrance CA 90505 Anchored Retail 18,968,000 18,780,204
- ---------------------------------------------------------------------------------------------------------------------
25 San Juan PR 00918 Office 17,500,000 17,443,569
26 17,400,000 17,379,422
26a Worthington OH 43085 Assisted Living Facility 4,928,493
26b Worthington OH 43085 Assisted Living Facility 2,723,641
26c Upper Arlington OH 43221 Assisted Living Facility 4,863,644
- ---------------------------------------------------------------------------------------------------------------------
26d Bexley OH 43209 Assisted Living Facility 4,863,644
27 New York NY 10019 Underlying Fee 15,000,000 15,000,000
28 New York NY 10019 Unanchored Retail 14,500,000 14,488,530
29 Visalia CA 93277 Anchored Retail 14,200,000 14,180,655
30 Seattle WA 98101 Luxury Hotel 13,500,000 13,468,954
- ---------------------------------------------------------------------------------------------------------------------
31 Hudson OH 44236 Full Service Hotel 13,300,000 13,286,218
32 Dallas TX 75202 Full Service Hotel 13,000,000 12,955,916
33 Queensbury NY 14202 Unanchored Retail 12,800,000 12,765,411
34 Seattle WA 98101 Luxury Hotel 12,500,000 12,473,935
35 Canoga Park CA 91307 Anchored Retail 12,500,000 12,461,778
- ---------------------------------------------------------------------------------------------------------------------
36 12,500,000 12,457,214
36a Chelmsford MA 01824 Industrial 5,102,531
36b Chelmsford MA 01824 Industrial 3,765,316
36c Chelmsford MA 01824 Industrial 3,589,367
37 Columbia MD 21044 Multifamily 11,850,000 11,839,014
- ---------------------------------------------------------------------------------------------------------------------
38 Lancaster CA 93536 Industrial 11,250,000 11,240,815
39 Vista CA 92069 10,700,000 10,679,600
40 Office 10,600,000 10,524,052
40a Cottonwood AZ 86326 Anchored Retail 5,733,794
40b Casa Grande AZ 85222 Anchored Retail 4,790,258
- ---------------------------------------------------------------------------------------------------------------------
41 East Wenatchee WA 99755 Anchored Retail 10,200,000 10,165,354
42 Saratoga Springs NY 12866 Hospital 10,150,000 10,130,099
43 Bellevue WA 98004 Full Service Hotel 10,150,000 10,127,155
44 Westminister CA 92683 Multifamily 10,050,000 10,035,229
45 Houston TX 77077 Multifamily 9,800,000 9,756,251
- ---------------------------------------------------------------------------------------------------------------------
46 Atlanta GA 30338 Office 9,500,000 9,467,897
47 Los Angeles CA 90048 Nursing Home, Skilled 9,400,000 9,376,948
48 Fremont CA 94538 Multifamily 9,400,000 9,370,479
49 Valdosta GA 31601 Anchored Retail 9,440,000 9,307,092
50 Ann Arbor MI 48106 Office 8,800,000 8,782,994
- ---------------------------------------------------------------------------------------------------------------------
51 Memphis TN 38118 Multifamily 8,740,000 8,732,563
52 Nashville TN 37228 Office 8,660,000 8,653,258
53 Sterling Heights MI 48312 Anchored Retail 8,242,000 8,132,960
54 Folsom CA 95630 Full Service Hotel 8,100,000 8,074,387
55 Westport CT 06880 Office 8,000,000 8,000,000
- ---------------------------------------------------------------------------------------------------------------------
56 Baton Rouge LA 70816 Office 8,006,795 7,981,112
57 Miami FL 33156 Unanchored Retail 7,700,000 7,641,681
58 Farmington NM 87401 Full Service Hotel 7,580,000 7,571,276
59 7,575,000 7,560,201
59a Charlottesville VA 22903 Limited Svc. Hotel 1,835,891
- ---------------------------------------------------------------------------------------------------------------------
59b Bristol VA 24201 Limited Svc. Hotel 917,946
59c Roanoke VA 24016 Limited Svc. Hotel 1,468,713
59d Richmond VA 23237 Limited Svc. Hotel 936,305
59e Sandston VA 23150 Limited Svc. Hotel 1,299,811
59f Virginia Beach VA 23452 Limited Svc. Hotel 1,101,535
- ---------------------------------------------------------------------------------------------------------------------
60 Hot Springs Village AR 71909 Anchored Retail 7,300,000 7,282,223
61 Freeport NY 11520 Nursing Home, Skilled 7,000,000 6,972,028
62 Unanchored Retail 6,800,000 6,776,724
62a Loveland CO 80538 Mobile Home Park 1,915,161
62b Pueblo CO 81001 Mobile Home Park 4,198,623
- ---------------------------------------------------------------------------------------------------------------------
62c Aztec NM 82604 Mobile Home Park 662,940
63 Laurel MD 20707 Office 6,600,000 6,565,267
64 Lebanon NH 03766 Anchored Retail 6,514,000 6,514,000
65 Sterling VA 20165 Unanchored Retail 6,500,000 6,482,783
66 Memphis TN 38118 Office 6,500,000 6,469,538
- ---------------------------------------------------------------------------------------------------------------------
67 Fresno CA 93720 Unanchored Retail 6,450,000 6,433,298
68 Cheektowaga NY 14225 Industrial 6,100,000 6,075,342
69 Roswell NM 88201 Full Service Hotel 5,812,500 5,805,917
70 West Hartford CT 06119 Office 5,730,000 5,707,689
71 Columbia SC 29203 Anchored Retail 5,650,000 5,555,332
- ---------------------------------------------------------------------------------------------------------------------
72 5,500,000 5,493,370
72a Denver CO 80239 Self-Storage 2,142,069
72b Thornton CO 80221 Self-Storage 1,796,574
72c Westminster CO 80030 Self-Storage 1,554,727
73 Dallas TX 75237 Multifamily 5,482,500 5,470,880
- ---------------------------------------------------------------------------------------------------------------------
74 Arcadia CA 91006 Unanchored Retail 5,470,000 5,458,001
75 North Canton OH 44718 Limited Svc. Hotel 5,400,000 5,394,404
76 Rio Rancho NM 87124 Limited Svc. Hotel 5,400,000 5,377,414
77 La Porte TX 77571 Industrial 5,400,000 5,366,848
78 Memphis TN 38118 Unanchored Retail 5,350,000 5,338,720
- ---------------------------------------------------------------------------------------------------------------------
79 Washington DC 20003 Office 5,320,000 5,315,613
80 Folsom CA 95630 Unanchored Retail 5,250,000 5,236,093
81 Burlington VT 05401 Multifamily 5,200,000 5,161,627
82 Adelphi MD 20783 Anchored Retail 5,120,000 5,109,619
83 West Palm Beach FL 33401 Assisted Living Facility 5,000,000 4,986,189
- ---------------------------------------------------------------------------------------------------------------------
84 Danbury CT 06811 Office 5,000,000 4,979,829
85 Calabasas CA 91302 Unanchored Retail 5,000,000 4,975,196
86 Lincoln NE 68501 Anchored Retail 4,965,000 4,948,330
87 Valley Springs CA 95252 Anchored Retail 4,880,000 4,869,949
88 Ruston LA 71270 Anchored Retail 4,850,000 4,850,000
- ---------------------------------------------------------------------------------------------------------------------
89 Cincinnati OH 45238 Multifamily 4,800,000 4,786,473
90 Tulsa OK 74135 Multifamily 4,750,000 4,720,294
91 Palm Springs CA 92262 Multifamily 4,600,000 4,592,526
92 Dundalk MD 21222 Self-Storage 4,600,000 4,583,607
93 Houston TX 77074 Multifamily 4,560,000 4,540,699
- ---------------------------------------------------------------------------------------------------------------------
94 Maitland FL 32810 Office 4,500,000 4,496,384
95 4,500,000 4,493,481
95a Lafayette LA 70503 Multifamily 2,049,658
95b Lafayette LA 70506 Multifamily 2,443,823
96 West Monroe LA 71291 Anchored Retail 4,500,000 4,491,719
- ---------------------------------------------------------------------------------------------------------------------
97 Renton WA 98055 Office 4,500,000 4,487,381
98 Minneapolis MN 55401 Office 4,500,000 4,486,242
99 Middletown OH 45044 Anchored Retail 4,500,000 4,474,681
100 Buffalo NY 14203 Parking Garage 4,500,000 4,433,463
101 Lexington KY 40505 Unanchored Retail 4,400,000 4,384,562
- ---------------------------------------------------------------------------------------------------------------------
102 Gallup NM 87301 Limited Svc. Hotel 4,385,000 4,379,953
103 4,400,000 4,363,851
103a Albuquerque NM 87112 Child Care 466,042
103b Alburquerque NM 87105 Child Care 463,394
103c Bernalillo NM 87004 Child Care 296,572
- ---------------------------------------------------------------------------------------------------------------------
103d Albuquerque NM 87114 Child Care 463,394
103e Albuquerque NM 87120 Child Care 598,441
103f Santa Fe NM 87501 Child Care 460,746
103g Albuquerque NM 87108 Child Care 545,481
103h Rio Rancho NM 87124 Child Care 460,746
- ---------------------------------------------------------------------------------------------------------------------
103i Albuquerque NM 87122 Child Care 609,033
104 Springfield IL 62702 Mobile Home Park 4,350,000 4,350,000
105 Cleveland OH 44115 Office 4,350,000 4,317,461
106 4,300,000 4,274,867
106a Hartford CT 06103 Office 1,062,279
- ---------------------------------------------------------------------------------------------------------------------
106b West Hartford CT 06107 Unanchored Retail 701,748
106c West Hartford CT 06107 Unanchored Retail 1,023,650
106d West Hartford CT 06117 Unanchored Retail 1,081,593
106e West Hartford CT 06107 Unanchored Retail 405,597
107 Farmers Branch TX 75234 Industrial 4,200,000 4,195,166
- ---------------------------------------------------------------------------------------------------------------------
108 Winchester KY 40391 Anchored Retail 4,200,000 4,193,946
109 Wilmette IL 60091 Unanchored Retail 4,140,000 4,117,998
110 Houston TX 77019 Multifamily 4,050,000 4,050,000
111 Bend OR 97701 Anchored Retail 4,000,000 3,995,148
112 Naperville IL 60540 Multifamily 4,000,000 3,991,324
- ---------------------------------------------------------------------------------------------------------------------
113 Puyallup WA 98372 Multifamily 4,000,000 3,988,673
114 Salinas CA 93906 Multifamily 3,960,000 3,949,299
115 Austin TX 78705 Multifamily 3,950,000 3,944,024
116 Oakland Park FL 33334 Multifamily 3,850,000 3,830,519
117 3,825,000 3,817,527
- ---------------------------------------------------------------------------------------------------------------------
117a Norfolk VA 23502 Limited Svc. Hotel 898,242
117b Harrisonburg VA 22801 Limited Svc. Hotel 2,919,285
118 Geneva IL 60134 Anchored Retail 3,800,000 3,773,850
119 Monroe LA 71203 Multifamily 3,760,000 3,746,987
120 Grand Rapids MI 49512 Limited Svc. Hotel 3,750,000 3,742,284
- ---------------------------------------------------------------------------------------------------------------------
121 Orange City FL 32763 Anchored Retail 3,740,000 3,723,852
122 Gardena CA 90248 Industrial 3,700,000 3,697,091
123 Cordova TN 38018 Unanchored Retail 3,700,000 3,693,093
124 Lansing MI 48917 Limited Svc. Hotel 3,700,000 3,692,372
125 Hawthorne CA 90250 Office 3,700,000 3,675,091
- ---------------------------------------------------------------------------------------------------------------------
126 Kokomo IN 46902 Limited Svc. Hotel 3,675,000 3,662,008
127 Lewisville TX 75067 Limited Svc. Hotel 3,640,000 3,633,284
128 Little Rock AR 72211 Industrial 3,650,000 3,628,728
129 3,600,000 3,600,000
129a Middletown RI 02842 Office 2,412,565
- ---------------------------------------------------------------------------------------------------------------------
129b Middleton RI 02842 Office 1,187,435
130 Hailey ID 83333 Anchored Retail 3,600,000 3,584,725
131 Upper Darby PA 19082 Multifamily 3,600,000 3,568,243
132 Copley Township OH 44321 Limited Svc. Hotel 3,500,000 3,496,373
133 Sommerville MA 02145 Multifamily 3,500,000 3,482,939
- ---------------------------------------------------------------------------------------------------------------------
134 El Monte CA 91731 Anchored Retail 3,500,000 3,476,590
135 Milton FL 32570 Anchored Retail 3,500,000 3,476,093
136 Dallas TX 75229 Multifamily 3,525,000 3,470,313
137 Buffalo NY 14222 Anchored Retail 3,487,500 3,461,514
138 Clewiston FL 33440 Anchored Retail 3,470,000 3,461,128
- ---------------------------------------------------------------------------------------------------------------------
139 San Diego CA 92127 Industrial 3,451,000 3,443,724
140 Norwalk CT 06853 Office 3,450,000 3,440,724
141 Fort Washington PA 19034 Limited Svc. Hotel 3,400,000 3,376,989
142 Alameda CA 94502 Office 3,375,000 3,358,673
143 Weston FL 33326 Unanchored Retail 3,240,000 3,233,651
- ---------------------------------------------------------------------------------------------------------------------
144 Upper Marlboro MD 20722 Anchored Retail 3,247,500 3,219,026
145 Denham LA 70726 Anchored Retail 3,200,000 3,196,130
146 Newport News VA 23602 Anchored Retail 3,250,000 3,195,299
147 Falls Church VA 22046 Unanchored Retail 3,210,000 3,189,386
148 Orlando FL 32819 Limited Svc. Hotel 3,180,000 3,161,534
- ---------------------------------------------------------------------------------------------------------------------
149 3,157,000 3,143,720
149a Springfield VA 22150 Self-Storage 1,571,860
149b Springfield VA 22150 Industrial 1,571,860
150 Lancaster OH 43130 Full Service Hotel 3,127,000 3,123,296
151 Phoenix AZ 85004 Limited Svc. Hotel 3,100,000 3,093,474
- ---------------------------------------------------------------------------------------------------------------------
152 Dundas MN 55019 Anchored Retail 3,110,000 3,093,076
153 Sartell MN 56379 Multifamily 3,100,000 3,087,007
154 Colorado Springs CO 80917 Unanchored Retail 3,080,000 3,066,250
155 New York NY 10028 Unanchored Retail 3,025,000 3,011,912
156 Lancaster OH 43130 Mobile Home Park 3,000,000 3,000,000
- ---------------------------------------------------------------------------------------------------------------------
157 Los Angeles CA 90024 Multifamily 3,000,000 2,997,437
158 Hallandale FL 33009 Office 3,000,000 2,992,271
159 Marietta GA 30067 Multifamily 3,000,000 2,990,018
160 Stoughton MA 02072 Industrial 3,000,000 2,987,166
161 Goodlettsville TN 37072 Limited Svc. Hotel 3,000,000 2,984,593
- ---------------------------------------------------------------------------------------------------------------------
162 Nashville TN 37203 Limited Svc. Hotel 3,000,000 2,983,179
163 Columbus GA 31903 Multifamily 2,985,000 2,981,475
164 Austin TX 78750 Unanchored Retail 2,950,000 2,942,496
165 Monroe LA 71201 Multifamily 2,945,000 2,939,401
166 Burnsville MN 55337 Industrial 2,950,000 2,933,499
- ---------------------------------------------------------------------------------------------------------------------
167 Elkridge MD 21227 Office 2,880,000 2,872,295
168 Overland Park KS 66212 Limited Svc. Hotel 2,850,000 2,829,759
169 Houston TX 77057 Limited Svc. Hotel 2,825,000 2,805,042
170 Las Vegas NV 89120 Self-Storage 2,800,000 2,796,783
171 Harrisonburg VA 22801 Limited Svc. Hotel 2,800,000 2,796,625
- ---------------------------------------------------------------------------------------------------------------------
172 Euless TX 77243 Multifamily 2,800,000 2,747,662
173 2,750,000 2,742,574
173a Sylacauga AL 35150 Unanchored Retail 442,136
173b Monroeville AL 36460 Unanchored Retail 425,515
173c Paris TN 38242 Unanchored Retail 442,136
- ---------------------------------------------------------------------------------------------------------------------
173d Memphis TN 38114 Unanchored Retail 442,136
173e West Memphis AR 72301 Unanchored Retail 435,488
173f Alexander City AL 35010 Unanchored Retail 555,163
174 Jacksonville FL 33210 Multifamily 2,720,000 2,717,695
175 DeLand FL 32724 Limited Svc. Hotel 2,700,000 2,695,040
- ---------------------------------------------------------------------------------------------------------------------
176 Fresno CA 93727 Office 2,700,000 2,689,284
177 Sterling Heights MI 48312 Anchored Retail 2,700,000 2,681,199
178 Arlington TX 76012 Multifamily 2,660,000 2,656,184
179 Littleton CO 80123 Unanchored Retail 2,650,000 2,638,535
180 San Antonio TX 78233 Limited Svc. Hotel 2,625,000 2,615,895
- ---------------------------------------------------------------------------------------------------------------------
181 Utica NY 13502 Office 2,600,000 2,586,639
182 Mt. Pleasant WI 53406 Office 2,600,000 2,585,169
183 Coos Bay OR 97420 Nursing Home, Skilled 2,520,000 2,515,134
184 Milwaukee WI 53202 Unanchored Retail 2,500,000 2,498,077
185 Houston TX 77079 Limited Svc. Hotel 2,500,000 2,487,245
- ---------------------------------------------------------------------------------------------------------------------
186 2,500,000 2,479,427
186a Albuquerque NM 87111 Mixed Use 1,381,296
186b Santa Fe NM 87501 Child Care 483,454
186c Albuquerque NM 87110 Child Care 614,677
187 Columbus OH 43220 Unanchored Retail 2,460,000 2,458,119
- ---------------------------------------------------------------------------------------------------------------------
188 Houston TX 77063 Limited Svc. Hotel 2,450,000 2,445,356
189 2,425,000 2,418,452
189a Anniston AL 36201 Unanchored Retail 417,762
189b Opelika AL 36801 Unanchored Retail 541,785
189c Albertville AL 35950 Unanchored Retail 401,443
- ---------------------------------------------------------------------------------------------------------------------
189d Birmingham AL 35206 Unanchored Retail 574,423
189e Newnan GA 30263 Unanchored Retail 483,038
190 Orange Park FL 32073 Multifamily 2,400,000 2,397,966
191 2,400,000 2,378,400
191a Salt Lake City UT UAV Limited Svc. Hotel 1,507,919
- ---------------------------------------------------------------------------------------------------------------------
191b Brigham City UT 84302 Limited Svc. Hotel 870,481
192 Salinas CA 93912 Industrial 2,400,000 2,376,404
193 2,385,000 2,374,905
193a Ridgeland MS 39157 Office 1,763,187
193b Ridgeland MS 39157 Office 611,718
- ---------------------------------------------------------------------------------------------------------------------
194 Dunkirk NY 14048 Anchored Retail 2,380,000 2,368,055
195 Brandon FL 33511 Unanchored Retail 2,360,000 2,352,188
196 Annapolis MD 21401 Self-Storage 2,300,000 2,297,236
197 Southlake TX 76092 Unanchored Retail 2,300,000 2,296,828
198 Baltimore MD 21224 Self-Storage 2,300,000 2,291,738
- ---------------------------------------------------------------------------------------------------------------------
199 Martinsburg WV 25401 Multifamily 2,300,000 2,290,025
200 Niagara Falls NY UAV Anchored Retail 2,300,000 2,287,334
201 Fairfax VA 22030 Office 2,300,000 2,283,457
202 Fort Worth TX 76116 Multifamily 2,275,000 2,270,721
203 Bakersfield CA 93309 Unanchored Retail 2,250,000 2,241,532
- ---------------------------------------------------------------------------------------------------------------------
204 Kentwood MI 49508 Anchored Retail 2,250,000 2,237,141
205 2,200,000 2,193,085
205a Omaha NE 68144 Mixed Use 475,693
205b Omaha NE 68128 Industrial 1,021,341
205c Omaha NE 68134 Office 538,652
- ---------------------------------------------------------------------------------------------------------------------
205d Omaha NE 68127 Industrial 157,398
206 Jenks OK 74037 Multifamily 2,200,000 2,190,202
207 Midlothian VA 23113 Office 2,200,000 2,190,120
208 Providence RI 02904 Anchored Retail 2,175,000 2,165,973
209 Findlay OH 45840 Multifamily 2,150,000 2,140,966
- ---------------------------------------------------------------------------------------------------------------------
210 Las Vegas NV 89128 Unanchored Retail 2,137,000 2,133,001
211 Miami Beach FL 33139 Luxury Hotel 2,135,000 2,126,792
212 SeaTac WA 98188 Office 2,100,000 2,097,493
213 Dumfries VA 22026 Limited Svc. Hotel 2,100,000 2,096,072
214 Banner Elk NC 28604 Full Service Hotel 2,100,000 2,094,922
- ---------------------------------------------------------------------------------------------------------------------
215 Miami FL 33137 Office 2,100,000 2,091,693
216 2,100,000 2,082,747
216a Rio Rancho NM 87124 Child Care 657,018
216b Albuquerque NM 87114 Child Care 755,571
216c Albuquerque NM 87110 Child Care 670,158
- ---------------------------------------------------------------------------------------------------------------------
217 Decatur IL 62521 Anchored Retail 2,080,000 2,069,886
218 North Myrtle Beach SC 29582 Limited Svc. Hotel 2,075,000 2,068,993
219 Dallas TX 75227 Multifamily 2,040,000 2,036,058
220 North Brunswick NJ 08902 Industrial 2,000,000 1,998,409
221 Franklin KY 42134 Limited Svc. Hotel 2,000,000 1,996,351
- ---------------------------------------------------------------------------------------------------------------------
222 Columbia MO 65201 Limited Svc. Hotel 2,000,000 1,996,314
223 Douglas GA 31538 Full Service Hotel 2,000,000 1,992,251
224 Las Vegas NV 89118 Industrial 2,000,000 1,989,379
225 Little Neck NY 10314 Unanchored Retail 1,980,000 1,973,591
226 Zephyrhills FL 34248 Anchored Retail 2,000,000 1,970,285
- ---------------------------------------------------------------------------------------------------------------------
227 West Burlington IA 52655 Anchored Retail 1,960,000 1,955,115
228 Baltimore MD 21230 Industrial 2,000,000 1,950,314
229 Nashville TN 37013 Limited Svc. Hotel 1,950,000 1,947,813
230 Houston TX 77084 Unanchored Retail 1,930,000 1,930,000
231 Austin TX 78752 Office 1,920,000 1,917,423
- ---------------------------------------------------------------------------------------------------------------------
232 North Port FL 34287 CTL / Retail 1,875,000 1,871,213
233 Concord CA 94518 Unanchored Retail 1,830,000 1,825,876
234 White House TN 37188 Limited Svc. Hotel 1,825,000 1,815,714
235 Ogdensburg NY 13669 CTL / Retail 1,827,400 1,812,183
236 Westland MI 48185 Anchored Retail 1,800,000 1,798,672
- ---------------------------------------------------------------------------------------------------------------------
237 Philadelphia PA 19154 Industrial 1,800,000 1,798,573
238 San Antonio TX 78242 Multifamily 1,800,000 1,797,348
239 Ft. Worth TX 76116 Multifamily 1,800,000 1,796,427
240 Franklin KY 42134 Limited Svc. Hotel 1,800,000 1,790,985
241 Pulaski NY 13142 CTL / Retail 1,780,860 1,761,928
- ---------------------------------------------------------------------------------------------------------------------
242 Columbus OH 43222 Limited Svc. Hotel 1,762,500 1,758,067
243 College Station TX 77840 Multifamily 1,760,000 1,752,514
244 Lake Worth FL 33461 Unanchored Retail 1,750,000 1,747,809
245 St. Cloud MN 56304 Multifamily 1,750,000 1,742,665
246 San Antonio TX 78238 Limited Svc. Hotel 1,700,000 1,695,178
- ---------------------------------------------------------------------------------------------------------------------
247 Bellmead TX 76705 Anchored Retail 1,700,000 1,692,452
248 Franklin KY 42134 Limited Svc. Hotel 1,700,000 1,691,512
249 Cave City KY 42127 Limited Svc. Hotel 1,700,000 1,691,338
250 Angleton TX 77515 Unanchored Retail 1,690,000 1,686,725
251 North Charleston SC 29405 Limited Svc. Hotel 1,675,000 1,669,271
- ---------------------------------------------------------------------------------------------------------------------
252 Conway AR 72302 Multifamily 1,680,000 1,657,162
253 Cave City KY 42127 Limited Svc. Hotel 1,650,000 1,641,537
254 Ocala FL 34474 Unanchored Retail 1,650,000 1,636,457
255 Arlington VA 22213 Limited Svc. Hotel 1,650,000 1,636,144
256 Savannah GA 31406 Anchored Retail 1,625,000 1,619,133
- ---------------------------------------------------------------------------------------------------------------------
257 Jessup MD 20794 Industrial 1,614,000 1,602,131
258 Boynton Beach FL 33435 Office 1,600,000 1,596,614
259 Rocky Hill CT 14624 Unanchored Retail 1,600,000 1,593,770
260 Decatur TX 76234 Limited Svc. Hotel 1,600,000 1,593,764
261 Addison TX 75248 Office 1,600,000 1,593,061
- ---------------------------------------------------------------------------------------------------------------------
262 Woodsville NH 03765 CTL / Retail 1,577,089 1,568,073
263 Seattle WA 98102 Industrial 1,550,000 1,548,047
264 Casa Grande AZ 85222 Limited Svc. Hotel 1,550,000 1,539,964
265 San Antonio TX 78223 Multifamily 1,550,000 1,537,778
266 Grants NM 87020 Limited Svc. Hotel 1,535,000 1,533,233
- ---------------------------------------------------------------------------------------------------------------------
267 Albuquerque NM 87106 Office 1,500,000 1,497,093
268 Lynn MA 01902 Multifamily 1,500,000 1,494,043
269 Bakersfield CA 93309 Auto Dealership 1,500,000 1,493,092
270 Santa Fe NM 87501 Unanchored Retail 1,500,000 1,492,202
271 Hopedale MA 01747 Office 1,500,000 1,488,536
- ---------------------------------------------------------------------------------------------------------------------
272 Binghamton NY CTL / Retail 1,500,000 1,475,074
273 Miami FL 33122 Industrial 1,500,000 1,474,882
274 Franklin IN 46131 Unanchored Retail 1,475,000 1,473,865
275 Bowie MD 20715 Office 1,475,000 1,470,571
276 Galion OH 44833 Anchored Retail 1,475,000 1,468,981
- ---------------------------------------------------------------------------------------------------------------------
277 Henderson KY 42420 Limited Svc. Hotel 1,462,500 1,455,282
278 Columbia KY 42728 Limited Svc. Hotel 1,460,000 1,454,942
279 League City TX 77063 Limited Svc. Hotel 1,450,000 1,442,690
280 Blue Ash OH 45242 Unanchored Retail 1,440,000 1,427,640
281 Livonia MI 48152 Office 1,400,000 1,398,310
- ---------------------------------------------------------------------------------------------------------------------
282 Los Angeles CA 90004 Unanchored Retail 1,400,000 1,398,102
283 Mobile AL 36619 Limited Svc. Hotel 1,400,000 1,395,552
284 Cockeysville MD 21030 Unanchored Retail 1,400,000 1,394,878
285 Houston TX 77055 Unanchored Retail 1,370,000 1,365,668
286 Herndon VA 20171 Industrial 1,360,000 1,355,305
- ---------------------------------------------------------------------------------------------------------------------
287 Austin TX 78746 Office 1,350,000 1,348,286
288 New Castle DE 19720 Limited Svc. Hotel 1,350,000 1,347,306
289 Provo UT 84604 Office 1,350,000 1,346,225
290 Granbury TX 76048 Limited Svc. Hotel 1,350,000 1,341,430
291 St. Cloud MN 56304 Multifamily 1,328,000 1,322,392
- ---------------------------------------------------------------------------------------------------------------------
292 New York NY 10034 Multifamily 1,325,000 1,319,950
293 Sauk Rapids MN 56379 Multifamily 1,325,000 1,319,405
294 Austin TX 78744 Industrial 1,320,000 1,318,277
295 Salisbury MD 21801 Limited Svc. Hotel 1,300,000 1,297,574
296 Pompano Beach FL 33064 Office 1,250,000 1,244,632
- ---------------------------------------------------------------------------------------------------------------------
297 Enterprise AL 36330 Limited Svc. Hotel 1,200,000 1,195,827
298 Johnson City NY 13790 CTL / Retail 1,200,000 1,193,354
299 Kennesaw GA 30144 Unanchored Retail 1,200,000 1,190,197
300 Brunswick GA 31523 Limited Svc. Hotel 1,200,000 1,180,618
301 Grand Island NE 68803 Anchored Retail 1,180,000 1,168,920
- ---------------------------------------------------------------------------------------------------------------------
302 Leawood KS 66211 Office 1,150,000 1,148,679
303 Conroe TX 77301 Unanchored Retail 1,145,000 1,145,000
304 Fresno CA 93711 Office 1,100,000 1,098,549
305 Arlington TX 76013 Multifamily 1,100,000 1,098,422
306 Cheektowaga NY 14206 Office 1,100,000 1,097,591
- ---------------------------------------------------------------------------------------------------------------------
307 Dallas TX 75228 Multifamily 1,064,000 1,061,977
308 Avondale AZ 85340 Office 1,050,000 1,047,308
309 Sartell MN 56377 Multifamily 1,050,000 1,045,599
310 St. Cloud MN 56304 Multifamily 1,000,000 995,809
311 Nashville TN 37207 Limited Svc. Hotel 1,000,000 994,952
- ---------------------------------------------------------------------------------------------------------------------
312 Robinsonville MS 38664 Multifamily 960,000 959,266
313 Arlington TX 76013 Multifamily 900,000 898,725
314 Manchester CT 06119 Unanchored Retail 850,000 846,019
315 Colonial Heights VA 23834 Limited Svc. Hotel 800,000 798,087
316 Andrews SC 29510 Anchored Retail 800,000 797,111
- ---------------------------------------------------------------------------------------------------------------------
317 Dallas TX 75205 Multifamily 697,000 693,474
318 Boston MA 02120 Multifamily 625,000 621,814
319 Stafford TX 77477 Industrial 615,000 615,000
320 Dallas TX UAV Multifamily 590,750 587,761
321 Houston TX 77054 Unanchored Retail 560,000 560,000
- ---------------------------------------------------------------------------------------------------------------------
322 East Dundee IL 60018 Unanchored Retail 525,000 524,068
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PERCENTAGE OF CROSS ANTICIPATED LOAN
CONTROL CUT-OFF COLLATERALIZED RELATED BALANCE LOAN MORTGAGE
NUMBER DATE BALANCE GROUP GROUP AT MATURITY/ARD TYPE RATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 7.93% 116,872,746 Hyperamortizing 6.894
1a 0.09
1b 0.22
1c 0.11
1d 0.53
- ---------------------------------------------------------------------------------------------------------------------
1e 0.24
1f 0.42
1g 0.35
1h 0.13
1i 0.88
- ---------------------------------------------------------------------------------------------------------------------
1j 0.07
1k 0.36
1l 0.11
1m 0.01
1n 0.29
- ---------------------------------------------------------------------------------------------------------------------
1o 0.52
1p 0.31
1q 0.04
1r 0.73
1s 0.04
- ---------------------------------------------------------------------------------------------------------------------
1t 0.37
1u 0.19
1v 0.22
1w 0.50
1x 0.16
- ---------------------------------------------------------------------------------------------------------------------
1y 0.14
1z 0.15
1aa 0.10
1bb 0.28
1cc 0.37
- ---------------------------------------------------------------------------------------------------------------------
2 5.86 93,095,100 Balloon 8.500
2a 1.57
2b 0.20
2c 0.27
2d 0.22
- ---------------------------------------------------------------------------------------------------------------------
2e 0.17
2f 0.30
2g 0.32
2h 0.39
2i 0.34
- ---------------------------------------------------------------------------------------------------------------------
2j 0.73
2k 0.12
2l 0.24
2m 0.65
2n 0.18
- ---------------------------------------------------------------------------------------------------------------------
2o 0.16
3 5.63 89,909,303 Hyperamortizing 6.772
3a 0.67
3b 1.03
3c 0.86
- ---------------------------------------------------------------------------------------------------------------------
3d 0.91
3e 0.62
3f 0.58
3g 0.43
3h 0.54
- ---------------------------------------------------------------------------------------------------------------------
4 4.70 75,306,166 Hyperamortizing 7.049
4a 3.25
4b 1.44
5 2.52 43,263,153 Balloon 6.750
6 1.77 28,989,616 Balloon 7.270
- ---------------------------------------------------------------------------------------------------------------------
7 1.37 22,553,864 Hyperamortizing 7.390
1.37 22,093,545 Balloon 7.420
8 0.53 (1) (A) 8,620,813
9 0.31 (1) (A) 5,068,520
10 0.21 (1) (A) 3,361,685
- ---------------------------------------------------------------------------------------------------------------------
11 0.18 (1) (A) 2,833,172
12 0.14 (1) (A) 2,209,354
13 1.31 (B) 19,795,832 Hyperamortizing 7.320
1.21 19,511,630 Balloon 7.420
14 0.37 (2) (A) 5,943,596
- ---------------------------------------------------------------------------------------------------------------------
15 0.33 (2) (A) 5,389,092
16 0.24 (2) (A) 3,907,524
17 0.17 (2) (A) 2,815,844
18 0.09 (2) (A) 1,455,575
19 1.17 (3) (C) 18,015,302 Balloon 8.090
- ---------------------------------------------------------------------------------------------------------------------
20 1.15 18,693,086 Balloon 6.880
21 1.14 (4) (D) 18,326,177 Balloon 9.470
22 1.12 18,950,960 Hyperamortizing 8.320
23 1.06 - Fully Amortizing 7.570
24 1.01 17,615,047 Balloon 8.320
- ---------------------------------------------------------------------------------------------------------------------
25 0.94 15,419,158 Hyperamortizing 7.380
26 0.93 14,035,152 Balloon 7.270
26a 0.26
26b 0.15
26c 0.26
- ---------------------------------------------------------------------------------------------------------------------
26d 0.26
27 0.81 15,000,000 Balloon 6.910
28 0.78 (A) 12,705,867 Balloon 7.180
29 0.76 12,467,489 Balloon 7.250
30 0.72 (B) 10,732,962 Hyperamortizing 7.290
- ---------------------------------------------------------------------------------------------------------------------
31 0.71 (3) (C) 10,990,987 Balloon 8.090
32 0.70 10,373,239 Balloon 6.910
33 0.69 11,256,041 Balloon 7.310
34 0.67 (B) 10,148,897 Hyperamortizing 7.480
35 0.67 9,819,957 Balloon 7.580
- ---------------------------------------------------------------------------------------------------------------------
36 0.67 10,948,389 Balloon 7.150
36a 0.27
36b 0.20
36c 0.19
37 0.64 10,157,952 Balloon 6.370
- ---------------------------------------------------------------------------------------------------------------------
38 0.60 8,613,785 Balloon 7.020
39 0.57 9,904,611 Balloon 7.330
40 0.57 9,153,058 Hyperamortizing 7.270
40a 0.31
40b 0.26
- ---------------------------------------------------------------------------------------------------------------------
41 0.55 8,940,890 Balloon 7.180
42 0.54 (4) (D) 8,712,444 Balloon 9.470
43 0.54 (B) 8,098,206 Hyperamortizing 7.420
44 0.54 8,752,249 Balloon 6.940
45 0.52 8,535,018 Balloon 6.940
- ---------------------------------------------------------------------------------------------------------------------
46 0.51 8,331,640 Balloon 7.200
47 0.50 8,346,217 Hyperamortizing 7.693
48 0.50 (E) 8,303,362 Balloon 7.480
49 0.50 - Fully Amortizing 7.260
50 0.47 7,733,509 Balloon 7.280
- ---------------------------------------------------------------------------------------------------------------------
51 0.47 7,583,812 Balloon 6.810
52 0.46 7,604,199 Balloon 7.260
53 0.44 (F) 6,733,006 Balloon 8.460
54 0.43 (G) 6,535,936 Balloon 7.270
55 0.43 8,000,000 Balloon 7.220
- ---------------------------------------------------------------------------------------------------------------------
56 0.43 7,047,886 Balloon 7.400
57 0.41 6,689,090 Balloon 7.540
58 0.41 (H) 6,145,741 Balloon 7.440
59 0.41 (I) 6,212,538 Balloon 7.820
59a 0.10
- ---------------------------------------------------------------------------------------------------------------------
59b 0.05
59c 0.08
59d 0.05
59e 0.07
59f 0.06
- ---------------------------------------------------------------------------------------------------------------------
60 0.39 6,485,979 Balloon 7.720
61 0.37 5,727,729 Balloon 7.740
62 0.36 5,955,923 Hyperamortizing 7.150
62a 0.10
62b 0.23
- ---------------------------------------------------------------------------------------------------------------------
62c 0.04
63 0.35 5,712,289 Balloon 7.320
64 0.35 - Fully Amortizing 6.170
65 0.35 5,727,669 Balloon 7.390
66 0.35 5,714,815 Balloon 7.295
- ---------------------------------------------------------------------------------------------------------------------
67 0.35 (J) 5,696,592 Balloon 7.480
68 0.33 5,250,452 Balloon 7.130
69 0.31 (H) 4,726,827 Balloon 7.540
70 0.31 (K) 4,953,436 Balloon 7.320
71 0.30 - Fully Amortizing 7.160
- ---------------------------------------------------------------------------------------------------------------------
72 0.30 4,420,112 Balloon 7.150
72a 0.12
72b 0.10
72c 0.08
73 0.29 4,773,943 Balloon 6.930
- ---------------------------------------------------------------------------------------------------------------------
74 0.29 4,404,889 Balloon 7.210
75 0.29 (3) (C) 4,462,506 Balloon 8.090
76 0.29 4,387,125 Balloon 7.500
77 0.29 4,499,209 Balloon 8.360
78 0.29 4,661,060 Balloon 6.950
- ---------------------------------------------------------------------------------------------------------------------
79 0.29 4,636,076 Balloon 6.970
80 0.28 (G) 4,626,194 Balloon 7.390
81 0.28 4,265,189 Hyperamortizing 7.050
82 0.27 4,478,447 Balloon 7.100
83 0.27 4,468,179 Balloon 7.950
- ---------------------------------------------------------------------------------------------------------------------
84 0.27 4,304,645 Balloon 7.140
85 0.27 4,370,287 Balloon 7.070
86 0.27 - Fully Amortizing 7.200
87 0.26 4,261,770 Balloon 7.040
88 0.26 4,240,407 Balloon 7.090
- ---------------------------------------------------------------------------------------------------------------------
89 0.26 4,202,456 Balloon 7.140
90 0.25 4,145,042 Balloon 7.040
91 0.25 3,952,923 Balloon 7.060
92 0.25 3,645,279 Balloon 7.280
93 0.24 3,994,540 Balloon 7.160
- ---------------------------------------------------------------------------------------------------------------------
94 0.24 3,934,973 Balloon 7.100
95 0.24 3,925,182 Balloon 7.000
95a 0.11
95b 0.13
96 0.24 3,972,873 Balloon 7.460
- ---------------------------------------------------------------------------------------------------------------------
97 0.24 3,941,862 Balloon 7.160
98 0.24 3,649,884 Balloon 7.440
99 0.24 3,878,645 Balloon 7.190
100 0.24 2,133,957 Balloon 7.410
101 0.24 - Fully Amortizing 7.300
- ---------------------------------------------------------------------------------------------------------------------
102 0.24 (H) 3,555,286 Balloon 7.440
103 0.23 (L) 3,077,913 Balloon 7.750
103a 0.03
103b 0.02
103c 0.02
- ---------------------------------------------------------------------------------------------------------------------
103d 0.02
103e 0.03
103f 0.02
103g 0.03
103h 0.02
- ---------------------------------------------------------------------------------------------------------------------
103i 0.03
104 0.23 3,424,103 Balloon 6.490
105 0.23 3,519,939 Balloon 7.360
106 0.23 (K) 3,420,505 Balloon 7.420
106a 0.06
- ---------------------------------------------------------------------------------------------------------------------
106b 0.04
106c 0.05
106d 0.06
106e 0.02
107 0.23 3,405,291 Hyperamortizing 7.440
- ---------------------------------------------------------------------------------------------------------------------
108 0.23 (M) 3,665,446 Balloon 7.020
109 0.22 3,591,728 Balloon 7.480
110 0.22 3,494,475 Balloon 6.600
111 0.21 3,210,663 Balloon 7.110
112 0.21 3,474,620 Balloon 6.840
- ---------------------------------------------------------------------------------------------------------------------
113 0.21 3,500,214 Balloon 7.120
114 0.21 (E) 3,482,337 Balloon 7.310
115 0.21 3,428,863 Balloon 6.820
116 0.21 3,018,862 Balloon 6.900
117 0.21 (I) 3,137,025 Balloon 7.820
- ---------------------------------------------------------------------------------------------------------------------
117a 0.05
117b 0.16
118 0.20 - Fully Amortizing 7.490
119 0.20 - Fully Amortizing 7.400
120 0.20 3,051,061 Balloon 7.550
- ---------------------------------------------------------------------------------------------------------------------
121 0.20 (N) 3,314,590 Balloon 7.610
122 0.20 3,244,711 Balloon 7.210
123 0.20 - Fully Amortizing 7.230
124 0.20 3,009,482 Balloon 7.540
125 0.20 3,172,814 Balloon 6.970
- ---------------------------------------------------------------------------------------------------------------------
126 0.20 - Fully Amortizing 7.530
127 0.20 - Fully Amortizing 7.630
128 0.19 3,132,888 Balloon 7.010
129 0.19 3,148,345 Balloon 7.100
129a 0.13
- ---------------------------------------------------------------------------------------------------------------------
129b 0.06
130 0.19 3,152,761 Balloon 7.150
131 0.19 2,829,212 Balloon 6.980
132 0.19 (3) (C) 2,892,365 Balloon 8.090
133 0.19 3,011,857 Balloon 7.120
- ---------------------------------------------------------------------------------------------------------------------
134 0.19 2,651,486 Balloon 7.620
135 0.19 2,864,810 Balloon 7.830
136 0.19 2,319,917 Balloon 8.832
137 0.19 (O) 2,746,564 Balloon 7.055
138 0.19 (N) 3,068,537 Balloon 7.530
- ---------------------------------------------------------------------------------------------------------------------
139 0.19 3,006,602 Hyperamortizing 6.950
140 0.18 3,035,413 Balloon 7.330
141 0.18 - Fully Amortizing 7.930
142 0.18 2,957,699 Balloon 7.170
143 0.17 - Fully Amortizing 6.830
- ---------------------------------------------------------------------------------------------------------------------
144 0.17 2,541,108 Balloon 8.565
145 0.17 2,570,117 Balloon 7.130
146 0.17 - Fully Amortizing 7.500
147 0.17 - Fully Amortizing 6.830
148 0.17 2,617,384 Balloon 7.940
- ---------------------------------------------------------------------------------------------------------------------
149 0.17 2,562,532 Balloon 7.470
149a 0.08
149b 0.08
150 0.17 2,521,525 Balloon 7.260
151 0.17 2,513,141 Hyperamortizing 7.430
- ---------------------------------------------------------------------------------------------------------------------
152 0.17 2,685,991 Balloon 7.360
153 0.17 (P) 2,718,418 Balloon 7.200
154 0.16 2,832,098 Balloon 6.940
155 0.16 2,643,638 Balloon 7.070
156 0.16 2,556,442 Balloon 6.160
- ---------------------------------------------------------------------------------------------------------------------
157 0.16 2,483,382 Balloon 6.790
158 0.16 2,650,913 Balloon 7.500
159 0.16 2,635,144 Balloon 7.260
160 0.16 2,428,489 Balloon 7.380
161 0.16 - Fully Amortizing 7.650
- ---------------------------------------------------------------------------------------------------------------------
162 0.16 2,482,059 Balloon 8.120
163 0.16 2,657,900 Balloon 7.810
164 0.16 2,610,008 Balloon 7.550
165 0.16 - Fully Amortizing 7.080
166 0.16 2,544,413 Balloon 7.220
- ---------------------------------------------------------------------------------------------------------------------
167 0.15 2,535,207 Balloon 7.350
168 0.15 2,324,972 Balloon 7.630
169 0.15 - Fully Amortizing 7.590
170 0.15 2,270,878 Balloon 7.450
171 0.15 2,250,239 Balloon 7.150
- ---------------------------------------------------------------------------------------------------------------------
172 0.15 - Fully Amortizing 8.270
173 0.15 (Q) 2,462,214 Balloon 8.030
173a 0.02
173b 0.02
173c 0.02
- ---------------------------------------------------------------------------------------------------------------------
173d 0.02
173e 0.02
173f 0.03
174 0.15 (5) (P) 2,361,455 Balloon 6.830
175 0.14 - Fully Amortizing 7.670
- ---------------------------------------------------------------------------------------------------------------------
176 0.14 (L) 2,502,864 Balloon 7.420
177 0.14 (F) 2,187,469 Balloon 7.820
178 0.14 2,039,157 Balloon 7.040
179 0.14 2,141,261 Balloon 7.320
180 0.14 - Fully Amortizing 7.680
- ---------------------------------------------------------------------------------------------------------------------
181 0.14 2,015,666 Balloon 7.360
182 0.14 2,237,380 Balloon 7.120
183 0.14 2,070,367 Balloon 7.880
184 0.13 2,198,594 Balloon 7.320
185 0.13 - Fully Amortizing 7.700
- ---------------------------------------------------------------------------------------------------------------------
186 0.13 (L) 2,056,964 Balloon 7.960
186a 0.07
186b 0.03
186c 0.03
187 0.13 2,165,078 Balloon 7.350
- ---------------------------------------------------------------------------------------------------------------------
188 0.13 - Fully Amortizing 7.390
189 0.13 (Q) 2,171,226 Balloon 8.030
189a 0.02
189b 0.03
189c 0.02
- ---------------------------------------------------------------------------------------------------------------------
189d 0.03
189e 0.03
190 0.13 (5) (P) 2,083,637 Balloon 6.830
191 0.13 1,635,554 Balloon 7.630
191a 0.08
- ---------------------------------------------------------------------------------------------------------------------
191b 0.05
192 0.13 1,895,627 Balloon 7.160
193 0.13 2,089,249 Balloon 7.160
193a 0.09
193b 0.03
- ---------------------------------------------------------------------------------------------------------------------
194 0.13 (O) 1,940,902 Balloon 7.620
195 0.13 2,074,051 Balloon 7.280
196 0.12 1,849,546 Balloon 7.170
197 0.12 2,016,767 Balloon 7.200
198 0.12 1,820,148 Balloon 7.230
- ---------------------------------------------------------------------------------------------------------------------
199 0.12 2,009,509 Balloon 7.060
200 0.12 (O) 1,848,543 Balloon 7.140
201 0.12 1,822,639 Balloon 7.280
202 0.12 2,004,427 Balloon 7.380
203 0.12 1,994,728 Balloon 7.630
- ---------------------------------------------------------------------------------------------------------------------
204 0.12 1,935,746 Balloon 7.110
205 0.12 1,776,820 Balloon 7.300
205a 0.03
205b 0.05
205c 0.03
- ---------------------------------------------------------------------------------------------------------------------
205d 0.01
206 0.12 1,916,537 Balloon 6.950
207 0.12 (L) 1,977,490 Balloon 7.460
208 0.12 1,909,258 Balloon 7.240
209 0.12 1,884,865 Balloon 7.190
- ---------------------------------------------------------------------------------------------------------------------
210 0.11 1,465,656 Balloon 7.210
211 0.11 1,757,194 Balloon 7.940
212 0.11 1,690,793 Balloon 7.210
213 0.11 (S) - Fully Amortizing 7.510
214 0.11 1,635,314 Balloon 7.760
- ---------------------------------------------------------------------------------------------------------------------
215 0.11 1,812,105 Balloon 7.240
216 0.11 (L) 1,469,004 Balloon 7.750
216a 0.04
216b 0.04
216c 0.04
- ---------------------------------------------------------------------------------------------------------------------
217 0.11 1,704,299 Balloon 7.780
218 0.11 1,696,630 Balloon 7.710
219 0.11 1,792,768 Balloon 7.280
220 0.11 1,751,164 Balloon 7.150
221 0.11 - Fully Amortizing 7.730
- ---------------------------------------------------------------------------------------------------------------------
222 0.11 - Fully Amortizing 7.640
223 0.11 1,644,174 Balloon 7.900
224 0.11 1,367,844 Balloon 7.120
225 0.11 1,686,792 Balloon 7.790
226 0.11 1,371,797 Balloon 7.230
- ---------------------------------------------------------------------------------------------------------------------
227 0.11 1,737,571 Balloon 7.630
228 0.10 - Fully Amortizing 7.430
229 0.10 1,588,610 Balloon 7.600
230 0.10 (6) (X) 1,550,790 Balloon 7.140
231 0.10 1,688,353 Balloon 7.310
- ---------------------------------------------------------------------------------------------------------------------
232 0.10 - Fully Amortizing 6.770
233 0.10 1,587,298 Balloon 7.470
234 0.10 - Fully Amortizing 7.720
235 0.10 (T) - Fully Amortizing 7.050
236 0.10 1,591,436 Balloon 7.530
- ---------------------------------------------------------------------------------------------------------------------
237 0.10 1,576,870 Balloon 7.170
238 0.10 1,567,149 Balloon 6.930
239 0.10 1,577,756 Balloon 7.180
240 0.10 - Fully Amortizing 7.840
241 0.09 (T) - Fully Amortizing 7.030
- ---------------------------------------------------------------------------------------------------------------------
242 0.09 1,469,182 Balloon 8.380
243 0.09 1,540,947 Balloon 7.140
244 0.09 1,395,944 Balloon 6.910
245 0.09 (P) 1,534,591 Balloon 7.200
246 0.09 1,394,108 Balloon 7.810
- ---------------------------------------------------------------------------------------------------------------------
247 0.09 1,367,766 Balloon 7.180
248 0.09 - Fully Amortizing 7.860
249 0.09 - Fully Amortizing 7.710
250 0.09 (U) 1,484,803 Balloon 7.270
251 0.09 - Fully Amortizing 7.790
- ---------------------------------------------------------------------------------------------------------------------
252 0.09 - Fully Amortizing 6.970
253 0.09 - Fully Amortizing 7.660
254 0.09 1,024,509 Balloon 7.440
255 0.09 - Fully Amortizing 8.020
256 0.09 (7) (V) - Fully Amortizing 7.090
- ---------------------------------------------------------------------------------------------------------------------
257 0.09 1,092,921 Balloon 7.430
258 0.09 1,296,073 Balloon 7.400
259 0.09 (8) (K) 1,383,158 Balloon 7.320
260 0.09 1,314,190 Balloon 7.870
261 0.09 1,397,919 Balloon 7.060
- ---------------------------------------------------------------------------------------------------------------------
262 0.08 - Fully Amortizing 7.110
263 0.08 1,371,657 Hyperamortizing 7.560
264 0.08 - Fully Amortizing 7.930
265 0.08 1,243,484 Balloon 7.080
266 0.08 (H) 1,244,554 Balloon 7.440
- ---------------------------------------------------------------------------------------------------------------------
267 0.08 1,317,872 Balloon 7.270
268 0.08 1,293,769 Balloon 7.220
269 0.08 1,053,497 Hyperamortizing 8.440
270 0.08 (L) 1,216,674 Balloon 7.440
271 0.08 1,208,048 Balloon 7.890
- ---------------------------------------------------------------------------------------------------------------------
272 0.08 (W) - Fully Amortizing 6.840
273 0.08 1,016,703 Balloon 7.460
274 0.08 1,297,172 Balloon 7.320
275 0.08 1,199,594 Balloon 7.530
276 0.08 1,202,995 Balloon 7.630
- ---------------------------------------------------------------------------------------------------------------------
277 0.08 - Fully Amortizing 7.950
278 0.08 - Fully Amortizing 7.690
279 0.08 - Fully Amortizing 7.790
280 0.08 (O) 1,137,219 Balloon 7.155
281 0.08 1,124,773 Balloon 7.140
- ---------------------------------------------------------------------------------------------------------------------
282 0.08 1,229,823 Balloon 7.270
283 0.07 - Fully Amortizing 7.130
284 0.07 - Fully Amortizing 7.420
285 0.07 (U) 1,105,461 Balloon 7.270
286 0.07 1,083,579 Balloon 7.480
- ---------------------------------------------------------------------------------------------------------------------
287 0.07 1,193,772 Balloon 7.530
288 0.07 1,103,613 Balloon 7.710
289 0.07 1,109,354 Balloon 7.880
290 0.07 - Fully Amortizing 8.070
291 0.07 (P) 1,163,626 Balloon 7.170
- ---------------------------------------------------------------------------------------------------------------------
292 0.07 1,173,211 Balloon 7.580
293 0.07 (P) 1,160,997 Balloon 7.170
294 0.07 1,164,007 Balloon 7.420
295 0.07 (S) - Fully Amortizing 7.530
296 0.07 1,011,257 Balloon 7.360
- ---------------------------------------------------------------------------------------------------------------------
297 0.06 - Fully Amortizing 7.660
298 0.06 (W) - Fully Amortizing 6.990
299 0.06 955,843 Balloon 7.470
300 0.06 - Fully Amortizing 8.170
301 0.06 - Fully Amortizing 6.900
- ---------------------------------------------------------------------------------------------------------------------
302 0.06 932,682 Balloon 7.450
303 0.06 (6) (X) 920,028 Balloon 7.140
304 0.06 (J) 969,019 Balloon 7.380
305 0.06 (Y) 843,261 Balloon 7.040
306 0.06 886,081 Balloon 7.220
- ---------------------------------------------------------------------------------------------------------------------
307 0.06 936,496 Balloon 7.340
308 0.06 928,286 Balloon 7.520
309 0.06 (P) 920,754 Balloon 7.200
310 0.05 (P) 876,909 Balloon 7.200
311 0.05 - Fully Amortizing 7.780
- ---------------------------------------------------------------------------------------------------------------------
312 0.05 844,909 Balloon 7.350
313 0.05 (Y) 691,507 Balloon 7.090
314 0.05 (8) (K) 675,600 Balloon 7.390
315 0.04 671,138 Balloon 8.610
316 0.04 (7) (V) - Fully Amortizing 7.090
- ---------------------------------------------------------------------------------------------------------------------
317 0.04 (Z) 597,123 Balloon 6.930
318 0.03 508,474 Balloon 7.540
319 0.03 (6) (X) 494,164 Balloon 7.140
320 0.03 (Z) 506,099 Balloon 6.930
321 0.03 (6) (X) 449,970 Balloon 7.140
- ---------------------------------------------------------------------------------------------------------------------
322 0.03 465,021 Balloon 7.590
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST INTEREST GRACE
CONTROL NOTE PAYMENT ACCRUAL MONTHLY PAYMENT PERIOD
NUMBER DATE DATE METHOD PAYMENT FREQUENCY (DAYS)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 04/22/98 06/11/98 Actual Days / 360 Year-Days $1,048,596 Monthly 0
1a 12,488 0
1b 29,005 0
1c 14,905 0
1d 70,699 0
- ----------------------------------------------------------------------------------------------------------------
1e 31,824 0
1f 55,995 0
1g 46,125 0
1h 16,718 0
1i 116,018 0
- ----------------------------------------------------------------------------------------------------------------
1j 9,567 0
1k 47,334 0
1l 14,704 0
1m 906 0
1n 38,069 0
- ----------------------------------------------------------------------------------------------------------------
1o 68,886 0
1p 41,090 0
1q 4,834 0
1r 96,279 0
1s 4,633 0
- ----------------------------------------------------------------------------------------------------------------
1t 49,549 0
1u 24,573 0
1v 28,803 0
1w 65,663 0
1x 21,552 0
- ----------------------------------------------------------------------------------------------------------------
1y 18,329 0
1z 20,142 0
1aa 13,697 0
1bb 36,659 0
1cc 49,549 0
- ----------------------------------------------------------------------------------------------------------------
2 12/29/97 02/01/98 Actual Days / 360 Year-Days 879,520 Monthly 5
2a 236,201 0
2b 30,186 0
2c 40,158 0
2d 33,251 0
- ----------------------------------------------------------------------------------------------------------------
2e 26,012 0
2f 45,137 0
2g 47,830 0
2h 58,022 0
2i 50,685 0
- ----------------------------------------------------------------------------------------------------------------
2j 109,136 0
2k 18,253 0
2l 35,994 0
2m 98,235 0
2n 26,927 0
- ----------------------------------------------------------------------------------------------------------------
2o 23,494 0
3 06/29/98 08/11/98 Actual Days / 360 Year-Days 689,148 Monthly 0
3a 81,674 0
3b 125,965 0
3c 105,648 0
- ----------------------------------------------------------------------------------------------------------------
3d 111,743 0
3e 75,579 0
3f 70,703 0
3g 52,824 0
3h 65,014 0
- ----------------------------------------------------------------------------------------------------------------
4 05/14/98 07/11/98 Actual Days / 360 Year-Days 592,148 Monthly 0
4a 467,237 0
4b 124,912 0
5 10/01/98 11/11/98 Actual Days / 360 Year-Days 268,047 Monthly 0
6 06/09/98 07/11/98 Actual Days / 360 Year-Days 225,566 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
7 08/07/98 10/01/98 Actual Days / 360 Year-Days 177,075 Monthly 0
05/08/98 07/01/98 30 Month-Days / 360 Year-Days 176,905 Monthly 5
8 69,028
9 40,584
10 26,917
- ----------------------------------------------------------------------------------------------------------------
11 22,685
12 17,690
13 07/22/98 09/01/98 Actual Days / 360 Year-Days 178,194 Monthly 5
05/08/98 07/01/98 30 Month-Days / 360 Year-Days 156,231 Monthly 5
14 47,591
- ----------------------------------------------------------------------------------------------------------------
15 43,151
16 31,288
17 22,547
18 11,655
19 08/14/98 10/01/98 Actual Days / 360 Year-Days 169,558 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
20 09/15/98 11/01/98 Actual Days / 360 Year-Days 141,312 Monthly 5
21 06/30/98 08/01/98 Actual Days / 360 Year-Days 186,089 Monthly 5
22 03/09/98 05/01/98 Actual Days / 360 Year-Days 158,801 Monthly 0
23 12/30/97 02/01/98 Actual Days / 360 Year-Days 161,976 Monthly 10
24 06/19/97 08/01/97 30 Month-Days / 360 Year-Days 143,435 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
25 04/16/98 06/11/98 Actual Days / 360 Year-Days 120,928 Monthly 0
26 08/20/98 10/01/98 Actual Days / 360 Year-Days 125,993 Monthly 5
26a 0
26b 0
26c 0
- ----------------------------------------------------------------------------------------------------------------
26d 0
27 01/27/98 03/01/98 Actual Days / 360 Year-Days 89,254 Monthly 4
28 08/20/98 10/01/98 Actual Days / 360 Year-Days 98,228 Monthly 5
29 07/31/98 09/01/98 Actual Days / 360 Year-Days 96,869 Monthly 5
30 07/08/98 09/01/98 Actual Days / 360 Year-Days 98,860 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
31 08/14/98 10/01/98 Actual Days / 360 Year-Days 103,446 Monthly 5
32 07/01/98 08/01/98 Actual Days / 360 Year-Days 91,136 Monthly 10
33 05/21/98 07/01/98 Actual Days / 360 Year-Days 87,840 Monthly 10
34 07/22/98 09/01/98 Actual Days / 360 Year-Days 92,211 Monthly 5
35 04/03/98 06/01/98 Actual Days / 360 Year-Days 88,088 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
36 04/16/98 06/01/98 Actual Days / 360 Year-Days 84,426 Monthly 0
36a 0
36b 0
36c 0
37 09/01/98 10/01/98 Actual Days / 360 Year-Days 73,890 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
38 08/12/98 10/01/98 Actual Days / 360 Year-Days 74,998 Monthly 5
39 06/29/98 08/01/98 Actual Days / 360 Year-Days 73,574 Monthly 5
40 12/04/97 02/01/98 30 Month-Days / 360 Year-Days 72,455 Monthly 10
40a 0
40b 0
- ----------------------------------------------------------------------------------------------------------------
41 04/30/98 06/01/98 Actual Days / 360 Year-Days 69,098 Monthly 0
42 06/30/98 08/01/98 Actual Days / 360 Year-Days 88,469 Monthly 5
43 07/08/98 09/01/98 Actual Days / 360 Year-Days 75,197 Monthly 5
44 07/31/98 09/01/98 Actual Days / 360 Year-Days 66,458 Monthly 0
45 04/08/98 05/10/98 Actual Days / 360 Year-Days 64,805 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
46 04/06/98 06/01/98 Actual Days / 360 Year-Days 64,485 Monthly 5
47 05/26/98 07/01/98 Actual Days / 360 Year-Days 66,973 Monthly 4
48 04/28/98 06/01/98 Actual Days / 360 Year-Days 65,597 Monthly 5
49 12/15/97 02/01/98 Actual Days / 360 Year-Days 72,148 Monthly 5
50 06/19/98 08/01/98 Actual Days / 360 Year-Days 60,211 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
51 08/05/98 10/01/98 Actual Days / 360 Year-Days 57,036 Monthly 5
52 08/12/98 10/01/98 Actual Days / 360 Year-Days 59,135 Monthly 5
53 08/29/97 10/01/97 30 Month-Days / 360 Year-Days 66,145 Monthly 10
54 07/01/98 08/01/98 Actual Days / 360 Year-Days 58,652 Monthly 5
55 01/27/98 03/01/98 Actual Days / 360 Year-Days 49,738 Monthly 4
- ----------------------------------------------------------------------------------------------------------------
56 05/08/98 06/10/98 Actual Days / 360 Year-Days 55,437 Monthly 0
57 11/13/97 01/01/98 30 Month-Days / 360 Year-Days 54,051 Monthly 10
58 08/19/98 10/01/98 Actual Days / 360 Year-Days 55,720 Monthly 0
59 07/31/98 09/01/98 Actual Days / 360 Year-Days 57,565 Monthly 10
59a 0
- ----------------------------------------------------------------------------------------------------------------
59b 0
59c 0
59d 0
59e 0
59f 0
- ----------------------------------------------------------------------------------------------------------------
60 05/19/98 07/01/98 Actual Days / 360 Year-Days 52,147 Monthly 5
61 05/29/98 07/01/98 Actual Days / 360 Year-Days 52,827 Monthly 7
62 04/06/98 06/01/98 Actual Days / 360 Year-Days 45,928 Monthly 0
62a 0
62b 0
- ----------------------------------------------------------------------------------------------------------------
62c 0
63 02/17/98 04/01/98 Actual Days / 365 Year-Days 45,337 Monthly 5
64 09/14/98 11/01/98 Actual Days / 360 Year-Days 47,651 Monthly 5
65 05/04/98 07/01/98 Actual Days / 360 Year-Days 44,960 Monthly 0
66 02/27/98 04/01/98 Actual Days / 360 Year-Days 44,540 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
67 05/29/98 07/01/98 Actual Days / 360 Year-Days 45,011 Monthly 10
68 04/03/98 06/01/98 30 Month-Days / 360 Year-Days 41,117 Monthly 10
69 08/19/98 10/01/98 Actual Days / 360 Year-Days 43,105 Monthly 0
70 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 39,361 Monthly 10
71 12/23/97 02/01/98 Actual Days / 360 Year-Days 44,349 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
72 08/17/98 10/01/98 Actual Days / 360 Year-Days 39,401 Monthly 5
72a 0
72b 0
72c 0
73 06/16/98 08/01/98 Actual Days / 360 Year-Days 36,218 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
74 07/24/98 09/01/98 Actual Days / 360 Year-Days 39,397 Monthly 5
75 08/14/98 10/01/98 Actual Days / 360 Year-Days 42,001 Monthly 5
76 05/08/98 07/01/98 Actual Days / 360 Year-Days 39,906 Monthly 0
77 02/06/98 04/01/98 Actual Days / 360 Year-Days 42,974 Monthly 10
78 06/30/98 08/01/98 Actual Days / 360 Year-Days 35,414 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
79 08/25/98 10/01/98 Actual Days / 360 Year-Days 35,287 Monthly 5
80 05/22/98 07/01/98 Actual Days / 360 Year-Days 36,314 Monthly 0
81 02/23/98 04/01/98 30 Month-Days / 360 Year-Days 35,936 Monthly 10
82 06/29/98 08/01/98 Actual Days / 360 Year-Days 34,408 Monthly 5
83 04/15/98 06/01/98 Actual Days / 360 Year-Days 36,514 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
84 04/23/98 06/01/98 30 Month-Days / 360 Year-Days 33,737 Monthly 10
85 02/27/98 04/01/98 Actual Days / 360 Year-Days 33,501 Monthly 10
86 07/15/98 09/01/98 Actual Days / 360 Year-Days 38,598 Monthly 0
87 06/16/98 08/01/98 Actual Days / 360 Year-Days 32,598 Monthly 5
88 09/15/98 11/01/98 Actual Days / 360 Year-Days 32,561 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
89 05/28/98 07/01/98 Actual Days / 360 Year-Days 32,387 Monthly 5
90 01/28/98 03/01/98 Actual Days / 360 Year-Days 31,730 Monthly 10
91 07/31/98 09/01/98 30 Month-Days / 360 Year-Days 30,790 Monthly 5
92 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 33,338 Monthly 10
93 03/04/98 05/01/98 Actual Days / 360 Year-Days 30,829 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
94 08/18/98 10/01/98 Actual Days / 360 Year-Days 30,241 Monthly 5
95 07/20/98 09/01/98 Actual Days / 360 Year-Days 29,939 Monthly 0
95a 0
95b 0
96 06/25/98 08/01/98 Actual Days / 360 Year-Days 31,341 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
97 05/28/98 07/01/98 Actual Days / 360 Year-Days 30,424 Monthly 0
98 06/30/98 08/01/98 Actual Days / 360 Year-Days 33,079 Monthly 10
99 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 30,515 Monthly 10
100 04/30/98 06/01/98 Actual Days / 360 Year-Days 41,486 Monthly 10
101 07/29/98 09/01/98 Actual Days / 360 Year-Days 34,910 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
102 08/19/98 10/01/98 Actual Days / 360 Year-Days 32,234 Monthly 0
103 04/27/98 06/01/98 Actual Days / 360 Year-Days 36,122 Monthly 0
103a 0
103b 0
103c 0
- ----------------------------------------------------------------------------------------------------------------
103d 0
103e 0
103f 0
103g 0
103h 0
- ----------------------------------------------------------------------------------------------------------------
103i 0
104 09/09/98 11/01/98 Actual Days / 360 Year-Days 29,344 Monthly 4
105 02/10/98 04/01/98 Actual Days / 360 Year-Days 31,751 Monthly 10
106 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 31,553 Monthly 10
106a 0
- ----------------------------------------------------------------------------------------------------------------
106b 0
106c 0
106d 0
106e 0
107 08/07/98 10/01/98 Actual Days / 360 Year-Days 30,874 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
108 07/10/98 09/01/98 Actual Days / 360 Year-Days 27,999 Monthly 0
109 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 28,891 Monthly 10
110 09/04/98 11/01/98 Actual Days / 360 Year-Days 25,866 Monthly 5
111 08/11/98 10/01/98 Actual Days / 360 Year-Days 28,552 Monthly 5
112 06/30/98 08/01/98 Actual Days / 360 Year-Days 26,184 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
113 05/15/98 07/01/98 Actual Days / 360 Year-Days 26,935 Monthly 10
114 05/29/98 07/01/98 Actual Days / 360 Year-Days 27,176 Monthly 5
115 07/02/98 09/01/98 Actual Days / 360 Year-Days 25,804 Monthly 10
116 05/08/98 07/01/98 30 Month-Days / 360 Year-Days 26,966 Monthly 5
117 07/31/98 09/01/98 Actual Days / 360 Year-Days 29,067 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
117a 0
117b 0
118 05/11/98 07/01/98 Actual Days / 360 Year-Days 30,589 Monthly 10
119 07/27/98 09/01/98 Actual Days / 360 Year-Days 30,061 Monthly 5
120 07/21/98 09/01/98 Actual Days / 360 Year-Days 27,834 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
121 02/06/98 04/01/98 Actual Days / 360 Year-Days 26,433 Monthly 10
122 08/11/98 10/01/98 Actual Days / 360 Year-Days 25,140 Monthly 0
123 08/14/98 10/01/98 Actual Days / 360 Year-Days 29,199 Monthly 5
124 07/17/98 09/01/98 Actual Days / 360 Year-Days 27,439 Monthly 10
125 01/07/98 03/01/98 30 Month-Days / 360 Year-Days 24,542 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
126 07/10/98 09/01/98 Actual Days / 360 Year-Days 29,922 Monthly 0
127 08/21/98 10/01/98 Actual Days / 360 Year-Days 29,861 Monthly 0
128 02/06/98 04/01/98 30 Month-Days / 360 Year-Days 24,308 Monthly 10
129 09/04/98 11/01/98 Actual Days / 360 Year-Days 24,193 Monthly 0
129a 0
- ----------------------------------------------------------------------------------------------------------------
129b 0
130 03/16/98 05/01/98 Actual Days / 360 Year-Days 24,315 Monthly 4
131 02/25/98 04/01/98 30 Month-Days / 360 Year-Days 25,398 Monthly 10
132 08/14/98 10/01/98 Actual Days / 360 Year-Days 27,223 Monthly 5
133 03/10/98 05/01/98 30 Month-Days / 360 Year-Days 23,568 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
134 12/12/97 02/01/98 30 Month-Days / 360 Year-Days 24,761 Monthly 10
135 02/27/98 04/01/98 Actual Days / 360 Year-Days 26,621 Monthly 5
136 05/20/97 07/01/97 30 Month-Days / 360 Year-Days 29,177 Monthly 10
137 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 24,771 Monthly 10
138 05/08/98 07/01/98 Actual Days / 360 Year-Days 24,334 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
139 06/30/98 08/01/98 Actual Days / 360 Year-Days 22,844 Monthly 0
140 04/30/98 07/01/98 Actual Days / 360 Year-Days 23,723 Monthly 5
141 05/29/98 07/01/98 Actual Days / 360 Year-Days 28,538 Monthly 0
142 02/02/98 04/01/98 Actual Days / 360 Year-Days 22,841 Monthly 5
143 08/31/98 10/01/98 Actual Days / 360 Year-Days 24,790 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
144 07/21/97 09/01/97 30 Month-Days / 360 Year-Days 25,120 Monthly 10
145 08/17/98 10/01/98 Actual Days / 360 Year-Days 22,883 Monthly 5
146 12/10/97 02/01/98 Actual Days / Actual Year-Days 26,182 Monthly 10
147 07/10/98 09/01/98 30 Month-Days / 360 Year-Days 28,548 Monthly 10
148 03/31/98 05/01/98 Actual Days / 360 Year-Days 24,417 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
149 05/21/98 07/01/98 Actual Days / 360 Year-Days 23,268 Monthly 10
149a 0
149b 0
150 08/12/98 10/01/98 Actual Days / 360 Year-Days 22,622 Monthly 0
151 07/22/98 09/01/98 Actual Days / 360 Year-Days 22,768 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
152 02/05/98 04/01/98 30 Month-Days / 360 Year-Days 21,448 Monthly 10
153 03/25/98 05/01/98 Actual Days / 360 Year-Days 21,042 Monthly 5
154 03/18/98 05/01/98 Actual Days / 360 Year-Days 20,367 Monthly 10
155 03/24/98 05/01/98 Actual Days / 360 Year-Days 20,268 Monthly 10
156 09/09/98 11/01/98 Actual Days / 360 Year-Days 18,296 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
157 08/20/98 10/01/98 Actual Days / 360 Year-Days 19,538 Monthly 10
158 05/01/98 07/01/98 Actual Days / 360 Year-Days 20,976 Monthly 10
159 04/16/98 06/01/98 Actual Days / 360 Year-Days 20,486 Monthly 0
160 05/20/98 07/01/98 Actual Days / 360 Year-Days 21,936 Monthly 5
161 07/01/98 08/01/98 Actual Days / 360 Year-Days 24,654 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
162 03/11/98 05/01/98 Actual Days / 360 Year-Days 23,393 Monthly 5
163 07/13/98 09/01/98 Actual Days / 360 Year-Days 21,509 Monthly 0
164 05/06/98 07/01/98 Actual Days / 360 Year-Days 20,728 Monthly 0
165 08/24/98 10/01/98 Actual Days / 360 Year-Days 22,974 Monthly 5
166 02/27/98 04/01/98 30 Month-Days / 360 Year-Days 20,064 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
167 05/22/98 07/01/98 Actual Days / 360 Year-Days 19,842 Monthly 5
168 02/05/98 04/01/98 Actual Days / 360 Year-Days 21,303 Monthly 10
169 05/28/98 07/01/98 Actual Days / 360 Year-Days 23,108 Monthly 5
170 08/07/98 10/01/98 Actual Days / 360 Year-Days 20,601 Monthly 5
171 08/11/98 10/01/98 Actual Days / 360 Year-Days 20,059 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
172 10/31/97 12/01/97 30 Month-Days / 360 Year-Days 23,893 Monthly 10
173 04/09/98 06/01/98 Actual Days / 360 Year-Days 20,236 Monthly 10
173a 0
173b 0
173c 0
- ----------------------------------------------------------------------------------------------------------------
173d 0
173e 0
173f 0
174 08/27/98 10/01/98 Actual Days / 360 Year-Days 17,787 Monthly 5
175 08/20/98 10/01/98 Actual Days / 360 Year-Days 22,217 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
176 03/02/98 05/01/98 Actual Days / 360 Year-Days 18,731 Monthly 10
177 03/06/98 05/01/98 30 Month-Days / 360 Year-Days 20,678 Monthly 10
178 07/28/98 09/01/98 Actual Days / 360 Year-Days 17,769 Monthly 5
179 05/06/98 07/01/98 Actual Days / 360 Year-Days 19,274 Monthly 5
180 07/23/98 09/01/98 Actual Days / 360 Year-Days 21,619 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
181 05/27/98 07/01/98 30 Month-Days / 360 Year-Days 19,256 Monthly 10
182 02/26/98 04/01/98 30 Month-Days / 360 Year-Days 17,508 Monthly 10
183 07/09/98 09/01/98 Actual Days / 360 Year-Days 19,250 Monthly 0
184 08/03/98 10/01/98 Actual Days / 360 Year-Days 17,173 Monthly 10
185 06/02/98 08/01/98 Actual Days / 360 Year-Days 20,623 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
186 01/23/98 03/01/98 Actual Days / 360 Year-Days 19,229 Monthly 0
186a 0
186b 0
186c 0
187 08/17/98 10/01/98 Actual Days / 360 Year-Days 16,949 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
188 08/24/98 10/01/98 Actual Days / 360 Year-Days 19,732 Monthly 0
189 04/09/98 06/01/98 Actual Days / 360 Year-Days 17,845 Monthly 10
189a 0
189b 0
189c 0
- ----------------------------------------------------------------------------------------------------------------
189d 0
189e 0
190 08/27/98 10/01/98 Actual Days / 360 Year-Days 15,694 Monthly 7
191 04/09/98 06/01/98 30 Month-Days / 360 Year-Days 19,525 Monthly 5
191a 0
- ----------------------------------------------------------------------------------------------------------------
191b 0
192 01/12/98 03/01/98 30 Month-Days / 360 Year-Days 17,208 Monthly 10
193 03/16/98 05/01/98 Actual Days / 360 Year-Days 16,125 Monthly 15
193a 0
193b 0
- ----------------------------------------------------------------------------------------------------------------
194 04/14/98 06/01/98 Actual Days / 360 Year-Days 17,774 Monthly 10
195 04/02/98 06/01/98 Actual Days / 360 Year-Days 16,147 Monthly 0
196 08/26/98 10/01/98 Actual Days / 360 Year-Days 16,506 Monthly 10
197 07/24/98 09/01/98 Actual Days / 360 Year-Days 15,612 Monthly 5
198 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 16,595 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
199 03/20/98 05/01/98 Actual Days / 360 Year-Days 15,395 Monthly 5
200 04/03/98 06/01/98 Actual Days / 360 Year-Days 16,462 Monthly 10
201 03/17/98 05/01/98 30 Month-Days / 360 Year-Days 16,669 Monthly 10
202 06/30/98 08/01/98 Actual Days / 360 Year-Days 15,721 Monthly 5
203 03/26/98 05/01/98 Actual Days / 360 Year-Days 15,933 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
204 02/26/98 04/01/98 30 Month-Days / 360 Year-Days 15,136 Monthly 10
205 06/08/98 08/01/98 Actual Days / 360 Year-Days 15,973 Monthly 10
205a 0
205b 0
205c 0
- ----------------------------------------------------------------------------------------------------------------
205d 0
206 03/19/98 05/01/98 Actual Days / 360 Year-Days 14,563 Monthly 10
207 02/06/98 04/01/98 Actual Days / 360 Year-Days 15,323 Monthly 10
208 03/05/98 05/01/98 Actual Days / 360 Year-Days 14,823 Monthly 0
209 03/13/98 05/01/98 Actual Days / 360 Year-Days 14,579 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
210 08/12/98 10/01/98 Actual Days / 360 Year-Days 16,839 Monthly 5
211 05/04/98 07/01/98 Actual Days / 360 Year-Days 16,394 Monthly 5
212 08/04/98 10/01/98 Actual Days / 360 Year-Days 15,125 Monthly 5
213 08/19/98 10/01/98 Actual Days / 360 Year-Days 17,070 Monthly 5
214 07/24/98 09/01/98 Actual Days / 360 Year-Days 16,338 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
215 04/06/98 06/01/98 30 Month-Days / 360 Year-Days 14,311 Monthly 10
216 04/27/98 06/01/98 Actual Days / 360 Year-Days 17,240 Monthly 0
216a 0
216b 0
216c 0
- ----------------------------------------------------------------------------------------------------------------
217 04/28/98 06/01/98 Actual Days / 360 Year-Days 15,752 Monthly 9
218 06/17/98 08/01/98 Actual Days / 360 Year-Days 15,619 Monthly 5
219 06/09/98 08/01/98 Actual Days / 360 Year-Days 13,958 Monthly 0
220 08/14/98 10/01/98 Actual Days / 360 Year-Days 13,508 Monthly 10
221 08/04/98 10/01/98 Actual Days / 360 Year-Days 16,532 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
222 08/21/98 10/01/98 Actual Days / 360 Year-Days 16,420 Monthly 0
223 05/21/98 07/01/98 Actual Days / 360 Year-Days 15,304 Monthly 5
224 06/16/98 08/01/98 Actual Days / 360 Year-Days 15,650 Monthly 5
225 05/13/98 07/01/98 Actual Days / 360 Year-Days 14,654 Monthly 10
226 01/08/98 03/01/98 Actual Days / 360 Year-Days 15,783 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
227 05/01/98 07/01/98 Actual Days / 360 Year-Days 13,880 Monthly 10
228 01/20/98 03/01/98 30 Month-Days / 360 Year-Days 18,461 Monthly 5
229 08/17/98 10/01/98 Actual Days / 360 Year-Days 14,537 Monthly 0
230 09/04/98 11/01/98 Actual Days / 360 Year-Days 13,814 Monthly 5
231 07/16/98 09/01/98 Actual Days / 360 Year-Days 13,176 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
232 08/24/98 10/01/98 30 Month-Days / 360 Year-Days 14,365 Monthly 5
233 06/05/98 08/01/98 30 Month-Days / 360 Year-Days 12,758 Monthly 5
234 06/16/98 08/01/98 Actual Days / 360 Year-Days 15,078 Monthly 0
235 05/28/98 07/01/98 30 Month-Days / 360 Year-Days 14,507 Monthly 0
236 08/03/98 10/01/98 Actual Days / 360 Year-Days 12,623 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
237 08/21/98 10/01/98 Actual Days / 360 Year-Days 12,182 Monthly 5
238 07/31/98 09/01/98 Actual Days / 360 Year-Days 11,891 Monthly 5
239 06/04/98 08/01/98 Actual Days / 360 Year-Days 12,194 Monthly 0
240 06/09/98 08/01/98 Actual Days / 360 Year-Days 15,007 Monthly 0
241 04/08/98 06/01/98 30 Month-Days / 360 Year-Days 14,175 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
242 06/30/98 08/01/98 Actual Days / 360 Year-Days 14,050 Monthly 5
243 03/12/98 05/01/98 Actual Days / 360 Year-Days 11,875 Monthly 5
244 08/28/98 10/01/98 Actual Days / 360 Year-Days 12,268 Monthly 5
245 03/25/98 05/01/98 Actual Days / 360 Year-Days 11,879 Monthly 5
246 06/18/98 08/01/98 Actual Days / 360 Year-Days 12,908 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
247 05/06/98 07/01/98 Actual Days / 360 Year-Days 12,211 Monthly 5
248 06/08/98 08/01/98 Actual Days / 360 Year-Days 14,194 Monthly 0
249 06/15/98 08/01/98 Actual Days / 360 Year-Days 14,035 Monthly 0
250 06/17/98 08/01/98 Actual Days / 360 Year-Days 11,552 Monthly 5
251 07/24/98 09/01/98 Actual Days / 360 Year-Days 13,911 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
252 03/04/98 05/01/98 Actual Days / 360 Year-Days 13,671 Monthly 5
253 06/15/98 08/01/98 Actual Days / 360 Year-Days 13,570 Monthly 0
254 02/06/98 04/01/98 30 Month-Days / 360 Year-Days 12,129 Monthly 10
255 06/01/98 07/01/98 30 Month-Days / 360 Year-Days 14,457 Monthly 10
256 07/08/98 09/01/98 Actual Days / 360 Year-Days 12,687 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
257 05/05/98 07/01/98 30 Month-Days / 360 Year-Days 12,933 Monthly 10
258 07/02/98 09/01/98 Actual Days / 360 Year-Days 11,719 Monthly 5
259 04/24/98 06/01/98 30 Month-Days / 360 Year-Days 10,991 Monthly 10
260 05/18/98 07/01/98 Actual Days / 360 Year-Days 12,212 Monthly 0
261 03/13/98 05/01/98 Actual Days / 360 Year-Days 10,709 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
262 06/03/98 08/01/98 30 Month-Days / 360 Year-Days 12,332 Monthly 0
263 07/28/98 09/01/98 Actual Days / 360 Year-Days 10,902 Monthly 0
264 04/30/98 07/01/98 Actual Days / 360 Year-Days 12,897 Monthly 0
265 02/13/98 04/01/98 Actual Days / 360 Year-Days 11,034 Monthly 10
266 08/19/98 10/01/98 Actual Days / 360 Year-Days 11,284 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
267 06/30/98 08/01/98 Actual Days / 360 Year-Days 10,253 Monthly 0
268 04/02/98 06/01/98 30 Month-Days / 360 Year-Days 10,202 Monthly 10
269 06/17/98 08/01/98 Actual Days / 360 Year-Days 13,072 Monthly 0
270 04/24/98 06/01/98 Actual Days / 360 Year-Days 11,026 Monthly 10
271 02/12/98 04/01/98 30 Month-Days / 360 Year-Days 11,468 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
272 04/09/98 06/01/98 30 Month-Days / 360 Year-Days 13,479 Monthly 5
273 12/22/97 02/01/98 30 Month-Days / 360 Year-Days 12,047 Monthly 10
274 08/24/98 10/01/98 Actual Days / 360 Year-Days 10,132 Monthly 0
275 06/30/98 08/01/98 Actual Days / 360 Year-Days 10,929 Monthly 10
276 05/04/98 07/01/98 Actual Days / 360 Year-Days 11,025 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
277 06/19/98 08/01/98 Actual Days / 360 Year-Days 12,295 Monthly 0
278 07/24/98 09/01/98 Actual Days / 360 Year-Days 12,033 Monthly 0
279 06/30/98 08/01/98 Actual Days / 360 Year-Days 12,044 Monthly 0
280 02/18/98 04/01/98 30 Month-Days / 360 Year-Days 10,320 Monthly 10
281 08/25/98 10/01/98 Actual Days / 360 Year-Days 10,020 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
282 07/09/98 09/01/98 Actual Days / 360 Year-Days 9,569 Monthly 5
283 08/31/98 10/01/98 Actual Days / 360 Year-Days 12,767 Monthly 0
284 07/13/98 09/01/98 30 Month-Days / 360 Year-Days 11,210 Monthly 5
285 06/17/98 08/01/98 Actual Days / 360 Year-Days 9,920 Monthly 5
286 06/19/98 08/01/98 30 Month-Days / 360 Year-Days 10,033 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
287 07/30/98 09/01/98 Actual Days / 360 Year-Days 9,467 Monthly 0
288 07/15/98 09/01/98 Actual Days / 360 Year-Days 10,162 Monthly 5
289 06/09/98 08/01/98 Actual Days / 360 Year-Days 10,312 Monthly 5
290 05/26/98 07/01/98 Actual Days / 360 Year-Days 11,351 Monthly 0
291 03/26/98 05/01/98 Actual Days / 360 Year-Days 8,987 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
292 03/31/98 05/01/98 Actual Days / 360 Year-Days 9,337 Monthly 4
293 03/26/98 05/01/98 Actual Days / 360 Year-Days 8,967 Monthly 5
294 07/30/98 09/01/98 Actual Days / 360 Year-Days 9,157 Monthly 5
295 08/21/98 10/01/98 Actual Days / 360 Year-Days 10,583 Monthly 0
296 05/15/98 07/01/98 Actual Days / 360 Year-Days 9,124 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
297 07/27/98 09/01/98 Actual Days / 360 Year-Days 9,868 Monthly 0
298 06/22/98 08/01/98 30 Month-Days / 360 Year-Days 9,193 Monthly 5
299 02/13/98 04/01/98 30 Month-Days / 360 Year-Days 8,844 Monthly 10
300 05/15/98 07/01/98 Actual Days / 360 Year-Days 13,102 Monthly 0
301 06/22/98 08/01/98 Actual Days / 360 Year-Days 10,608 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
302 08/19/98 10/01/98 Actual Days / 360 Year-Days 8,461 Monthly 0
303 09/04/98 11/01/98 Actual Days / 360 Year-Days 8,195 Monthly 5
304 07/23/98 09/01/98 Actual Days / 360 Year-Days 7,601 Monthly 10
305 07/28/98 09/01/98 Actual Days / 360 Year-Days 7,348 Monthly 5
306 07/15/98 09/01/98 Actual Days / 360 Year-Days 7,930 Monthly 10
- ----------------------------------------------------------------------------------------------------------------
307 06/09/98 08/01/98 Actual Days / 360 Year-Days 7,323 Monthly 5
308 05/18/98 07/01/98 Actual Days / 360 Year-Days 7,356 Monthly 5
309 03/25/98 05/01/98 Actual Days / 360 Year-Days 7,127 Monthly 0
310 03/25/98 05/01/98 Actual Days / 360 Year-Days 6,788 Monthly 5
311 06/02/98 08/01/98 Actual Days / 360 Year-Days 8,300 Monthly 0
- ----------------------------------------------------------------------------------------------------------------
312 08/07/98 10/01/98 Actual Days / 360 Year-Days 6,614 Monthly 0
313 07/28/98 09/01/98 Actual Days / 360 Year-Days 6,042 Monthly 5
314 05/22/98 07/01/98 30 Month-Days / 360 Year-Days 6,221 Monthly 10
315 06/10/98 08/01/98 Actual Days / 360 Year-Days 6,501 Monthly 5
316 07/08/98 09/01/98 Actual Days / 360 Year-Days 6,246 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
317 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 4,604 Monthly 0
318 04/08/98 06/01/98 Actual Days / 360 Year-Days 4,635 Monthly 5
319 09/04/98 11/01/98 Actual Days / 360 Year-Days 4,402 Monthly 5
320 03/19/98 05/01/98 30 Month-Days / 360 Year-Days 3,903 Monthly 0
321 09/04/98 11/01/98 Actual Days / 360 Year-Days 4,008 Monthly 5
- ----------------------------------------------------------------------------------------------------------------
322 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 TO MATURITY / ARD AMORTIZATION TO MATURITY / ARD TERM TO MATURITY SEASONING SCHEDULED SCHEDULED
NUMBER (MONTHS) TERM (MONTHS) (MONTHS) (MONTHS) (MONTHS) MATURITY DATE ARD
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 120 300 115 295 5 05/11/23 05/11/08
1a
1b
1c
1d
- --------------------------------------------------------------------------------------------------------------------------------
1e
1f
1g
1h
1i
- --------------------------------------------------------------------------------------------------------------------------------
1j
1k
1l
1m
1n
- --------------------------------------------------------------------------------------------------------------------------------
1o
1p
1q
1r
1s
- --------------------------------------------------------------------------------------------------------------------------------
1t
1u
1v
1w
1x
- --------------------------------------------------------------------------------------------------------------------------------
1y
1z
1aa
1bb
1cc
- --------------------------------------------------------------------------------------------------------------------------------
2 120 320 111 311 9 01/01/08
2a
2b
2c
2d
- --------------------------------------------------------------------------------------------------------------------------------
2e
2f
2g
2h
2i
- --------------------------------------------------------------------------------------------------------------------------------
2j
2k
2l
2m
2n
- --------------------------------------------------------------------------------------------------------------------------------
2o
3 120 360 117 357 3 07/11/28 07/11/08
3a
3b
3c
- --------------------------------------------------------------------------------------------------------------------------------
3d
3e
3f
3g
3h
- --------------------------------------------------------------------------------------------------------------------------------
4 122 360 118 356 4 06/11/28 08/11/08
4a
4b
5 120 300 120 0 10/11/08
6 120 360 116 356 4 06/11/08
- --------------------------------------------------------------------------------------------------------------------------------
7 120 360 119 359 1 09/01/28 09/01/08
120 360 116 356 4 06/01/08
8
9
10
- --------------------------------------------------------------------------------------------------------------------------------
11
12
13 120 300 118 298 2 08/01/23 08/01/08
120 360 116 356 4 06/01/08
14
- --------------------------------------------------------------------------------------------------------------------------------
15
16
17
18
19 120 300 119 299 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
20 120 360 120 360 0 10/01/08
21 120 300 117 297 3 07/01/08
22 119 360 113 354 6 04/01/28 03/01/08
23 240 240 231 231 9 01/01/18
24 84 360 69 345 15 07/01/04
- --------------------------------------------------------------------------------------------------------------------------------
25 120 360 115 355 5 05/11/28 05/11/08
26 120 300 119 299 1 09/01/08
26a
26b
26c
- --------------------------------------------------------------------------------------------------------------------------------
26d
27 120 NAP 112 8 02/01/08
28 120 360 119 359 1 09/01/08
29 120 360 118 358 2 08/01/08
30 120 300 118 298 2 08/01/23 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
31 120 300 119 299 1 09/01/08
32 120 300 117 297 3 07/01/08
33 120 360 116 356 4 06/01/08
34 120 300 118 298 2 08/01/23 08/01/08
35 180 360 175 355 5 05/01/13
- --------------------------------------------------------------------------------------------------------------------------------
36 120 360 115 355 5 05/01/08
36a
36b
36c
37 120 360 119 359 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
38 180 360 179 359 1 09/01/13
39 84 360 81 357 3 07/01/05
40 120 360 111 351 9 01/01/28 01/01/08
40a
40b
- --------------------------------------------------------------------------------------------------------------------------------
41 120 360 115 355 5 05/01/08
42 120 300 117 297 3 07/01/08
43 120 300 118 298 2 08/01/23 08/01/08
44 120 360 118 358 2 08/01/08
45 120 360 114 354 6 04/10/08
- --------------------------------------------------------------------------------------------------------------------------------
46 120 360 115 355 5 05/01/08
47 120 360 116 356 4 06/01/28 06/01/08
48 120 360 115 355 5 05/01/08
49 260 260 251 251 9 08/31/19
50 120 360 117 357 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
51 120 360 119 359 1 09/01/08
52 120 360 119 359 1 09/01/08
53 120 300 107 287 13 09/01/07
54 120 300 117 297 3 07/01/08
55 120 NAP 112 8 02/01/08
- --------------------------------------------------------------------------------------------------------------------------------
56 121 360 116 355 5 06/10/08
57 120 360 110 350 10 12/01/07
58 120 300 119 299 1 09/01/08
59 120 300 118 298 2 08/01/08
59a
- --------------------------------------------------------------------------------------------------------------------------------
59b
59c
59d
59e
59f
- --------------------------------------------------------------------------------------------------------------------------------
60 120 360 116 356 4 06/01/08
61 120 300 116 296 4 06/01/08
62 120 360 115 355 5 05/01/28 05/01/08
62a
62b
- --------------------------------------------------------------------------------------------------------------------------------
62c
63 120 360 113 353 7 02/28/08
64 240 240 240 240 0 10/01/18
65 120 360 116 356 4 06/01/08
66 120 360 113 353 7 02/28/08
- --------------------------------------------------------------------------------------------------------------------------------
67 120 360 116 356 4 06/01/08
68 120 360 115 355 5 05/01/08
69 120 300 119 299 1 09/01/08
70 120 360 115 355 5 05/01/08
71 240 240 231 231 9 12/31/17
- --------------------------------------------------------------------------------------------------------------------------------
72 120 300 119 299 1 09/01/08
72a
72b
72c
73 120 360 117 357 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
74 120 300 118 298 2 08/01/08
75 120 300 119 299 1 09/01/08
76 120 300 116 296 4 06/01/08
77 120 300 113 293 7 03/01/08
78 120 360 117 357 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
79 120 360 119 359 1 09/01/08
80 120 360 116 356 4 06/01/08
81 120 324 113 317 7 03/01/25 03/01/08
82 120 360 117 357 3 07/01/08
83 120 300 115 295 5 05/01/08
- --------------------------------------------------------------------------------------------------------------------------------
84 120 360 115 355 5 05/01/08
85 120 360 113 353 7 03/01/08
86 248 247 246 245 2 04/01/19
87 120 360 117 357 3 07/01/08
88 120 360 120 360 0 10/01/08
- --------------------------------------------------------------------------------------------------------------------------------
89 120 360 116 356 4 06/01/08
90 120 360 112 352 8 02/01/08
91 120 360 118 358 2 08/01/08
92 120 300 117 297 3 07/01/08
93 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
94 120 360 119 359 1 09/01/08
95 120 360 118 358 2 08/01/08
95a
95b
96 120 360 117 357 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
97 120 360 116 356 4 06/01/08
98 120 300 117 297 3 07/01/08
99 120 360 113 353 7 03/01/08
100 120 180 115 175 5 05/01/08
101 240 240 238 238 2 08/01/18
- --------------------------------------------------------------------------------------------------------------------------------
102 120 300 119 299 1 09/01/08
103 120 240 115 235 5 05/01/08
103a
103b
103c
- --------------------------------------------------------------------------------------------------------------------------------
103d
103e
103f
103g
103h
- --------------------------------------------------------------------------------------------------------------------------------
103i
104 120 300 120 300 0 10/01/08
105 120 300 113 293 7 03/01/08
106 120 300 115 295 5 05/01/08
106a
- --------------------------------------------------------------------------------------------------------------------------------
106b
106c
106d
106e
107 120 300 119 299 1 09/01/23 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
108 120 360 118 358 2 07/31/08
109 120 360 113 353 7 03/01/08
110 120 360 120 360 0 10/01/08
111 120 300 119 299 1 09/01/08
112 120 360 117 357 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
113 120 360 116 356 4 06/01/08
114 120 360 116 356 4 06/01/08
115 120 360 118 358 2 08/01/08
116 120 300 116 296 4 06/01/08
117 120 300 118 298 2 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
117a 0
117b 0
118 240 240 236 236 4 06/01/18
119 240 240 238 238 2 08/01/18
120 120 300 118 298 2 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
121 120 360 113 353 7 03/01/08
122 120 360 119 359 1 09/01/08
123 240 240 239 239 1 09/01/18
124 120 300 118 298 2 08/01/08
125 120 360 112 352 8 02/01/08
- --------------------------------------------------------------------------------------------------------------------------------
126 240 240 238 238 2 08/01/18
127 240 240 239 239 1 09/01/18
128 120 360 113 353 7 03/01/08
129 120 360 120 360 0 10/01/08
129a 0
- --------------------------------------------------------------------------------------------------------------------------------
129b 0
130 120 360 114 354 6 04/01/08
131 120 300 113 293 7 03/01/08
132 120 300 119 299 1 09/01/08
133 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
134 180 360 171 351 9 01/01/13
135 121 300 114 293 7 03/31/08
136 180 300 164 284 16 06/01/12
137 120 300 114 294 6 04/01/08
138 120 360 116 356 4 06/01/08
- --------------------------------------------------------------------------------------------------------------------------------
139 120 360 117 357 3 07/01/28 07/01/08
140 120 360 116 356 4 06/01/08
141 240 240 236 236 4 06/01/18
142 120 360 113 353 7 02/28/08
143 240 240 239 239 1 09/01/18
- --------------------------------------------------------------------------------------------------------------------------------
144 180 360 166 346 14 08/01/12
145 120 300 119 299 1 09/01/08
146 240 240 231 231 9 01/01/18
147 180 180 178 178 2 08/01/13
148 120 300 114 294 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
149 120 300 116 296 4 06/01/08
149a 0
149b 0
150 120 300 119 299 1 09/01/08
151 120 300 118 298 2 08/01/23 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
152 121 360 114 353 7 04/01/08
153 120 360 114 354 6 04/01/08
154 84 360 78 354 6 04/01/05
155 120 360 114 354 6 04/01/08
156 120 360 120 360 0 10/01/08
- --------------------------------------------------------------------------------------------------------------------------------
157 144 360 143 359 1 09/01/10
158 120 360 116 356 4 06/01/08
159 120 360 115 355 5 05/01/08
160 120 300 116 296 4 06/01/08
161 240 240 237 237 3 07/01/18
- --------------------------------------------------------------------------------------------------------------------------------
162 120 300 114 294 6 03/31/08
163 120 360 118 358 2 08/01/08
164 120 360 116 356 4 06/01/08
165 240 240 239 239 1 09/01/18
166 120 360 113 353 7 03/01/08
- --------------------------------------------------------------------------------------------------------------------------------
167 120 360 116 356 4 06/01/08
168 120 300 113 293 7 03/01/08
169 240 240 236 236 4 06/01/18
170 120 300 119 299 1 09/01/08
171 120 300 119 299 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
172 240 240 229 229 11 11/01/17
173 120 360 115 355 5 05/01/08
173a
173b
173c
- --------------------------------------------------------------------------------------------------------------------------------
173d
173e
173f
174 120 360 119 359 1 09/01/08
175 240 240 239 239 1 09/01/18
- --------------------------------------------------------------------------------------------------------------------------------
176 84 360 78 354 6 04/01/05
177 113 293 107 287 6 09/01/07
178 180 360 178 358 2 08/01/13
179 120 300 116 296 4 06/01/08
180 240 240 238 238 2 08/01/18
- --------------------------------------------------------------------------------------------------------------------------------
181 120 288 116 284 4 06/01/08
182 120 360 113 353 7 03/01/08
183 120 300 118 298 2 08/01/08
184 120 360 119 359 1 09/01/08
185 240 240 237 237 3 07/01/18
- --------------------------------------------------------------------------------------------------------------------------------
186 120 300 112 292 8 02/01/08
186a
186b
186c
187 120 360 119 359 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
188 240 240 239 239 1 09/01/18
189 120 360 115 355 5 05/01/08
189a
189b
189c
- --------------------------------------------------------------------------------------------------------------------------------
189d
189e
190 120 360 119 359 1 09/01/08
191 120 240 115 235 5 05/01/08
191a
- --------------------------------------------------------------------------------------------------------------------------------
191b
192 120 300 112 292 8 02/01/08
193 120 360 114 354 6 04/01/08
193a
193b
- --------------------------------------------------------------------------------------------------------------------------------
194 120 300 115 295 5 05/01/08
195 120 360 115 355 5 05/01/08
196 120 300 119 299 1 09/01/08
197 120 360 118 358 2 08/01/08
198 120 300 117 297 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
199 120 360 114 354 6 04/01/08
200 120 300 115 295 5 05/01/08
201 120 300 114 294 6 04/01/08
202 120 360 117 357 3 07/01/08
203 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
204 120 360 113 353 7 03/01/08
205 120 300 117 297 3 07/01/08
205a
205b
205c
- --------------------------------------------------------------------------------------------------------------------------------
205d
206 120 360 114 354 6 04/01/08
207 108 360 101 353 7 03/01/07
208 120 360 114 354 6 04/01/08
209 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
210 120 240 119 239 1 09/01/08
211 120 300 116 296 4 06/01/08
212 120 300 119 299 1 09/01/08
213 240 240 239 239 1 09/01/18
214 120 276 118 274 2 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
215 120 360 115 355 5 05/01/08
216 120 240 115 235 5 05/01/08
216a
216b
216c
- --------------------------------------------------------------------------------------------------------------------------------
217 120 300 115 295 5 05/01/08
218 120 300 117 297 3 07/01/08
219 120 360 117 357 3 07/01/08
220 120 360 119 359 1 09/01/08
221 240 240 239 239 1 09/01/18
- --------------------------------------------------------------------------------------------------------------------------------
222 240 260 239 259 1 09/01/18
223 120 300 116 296 4 06/01/08
224 120 240 117 237 3 07/01/08
225 120 324 116 320 4 06/01/08
226 120 240 112 232 8 02/01/08
- --------------------------------------------------------------------------------------------------------------------------------
227 120 360 116 356 4 06/01/08
228 180 180 172 172 8 02/01/13
229 120 300 119 299 1 09/01/08
230 120 300 120 300 0 10/01/08
231 120 360 118 358 2 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
232 237 237 236 236 1 06/01/18
233 120 360 117 357 3 07/01/08
234 240 240 237 237 3 07/01/18
235 230 230 226 226 4 08/01/17
236 120 360 119 359 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
237 120 360 119 359 1 09/01/08
238 120 360 118 358 2 08/01/08
239 120 360 117 357 3 07/01/08
240 240 240 237 237 3 07/01/18
241 228 228 223 223 5 05/01/17
- --------------------------------------------------------------------------------------------------------------------------------
242 120 300 117 297 3 07/01/08
243 120 360 114 354 6 04/01/08
244 120 300 119 299 1 09/01/08
245 120 360 114 354 6 04/01/08
246 120 300 117 297 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
247 120 300 116 296 4 06/01/08
248 240 240 237 237 3 07/01/18
249 240 240 237 237 3 07/01/18
250 120 360 117 357 3 07/01/08
251 240 240 238 238 2 08/01/18
- --------------------------------------------------------------------------------------------------------------------------------
252 216 216 210 210 6 04/01/16
253 240 240 237 237 3 07/01/18
254 180 300 173 293 7 03/01/13
255 216 216 212 212 4 06/01/16
256 240 240 238 238 2 08/01/18
- --------------------------------------------------------------------------------------------------------------------------------
257 120 240 116 236 4 06/01/08
258 120 300 118 298 2 08/01/08
259 120 360 115 355 5 05/01/08
260 120 300 116 296 4 06/01/08
261 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
262 240 240 237 237 3 07/01/18
263 120 360 118 358 2 08/01/28 08/01/08
264 240 240 236 236 4 06/01/18
265 120 300 113 293 7 03/01/08
266 120 300 119 299 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
267 120 360 117 357 3 07/01/08
268 120 360 115 355 5 05/01/08
269 120 240 117 237 3 07/01/18 07/01/08
270 120 300 115 295 5 05/01/08
271 120 300 113 293 7 03/01/08
- --------------------------------------------------------------------------------------------------------------------------------
272 177 177 172 172 5 01/31/13
273 120 240 111 231 9 01/01/08
274 120 360 119 359 1 09/01/08
275 120 300 117 297 3 07/01/08
276 120 300 116 296 4 06/01/08
- --------------------------------------------------------------------------------------------------------------------------------
277 240 240 237 237 3 07/01/18
278 240 240 238 238 2 08/01/18
279 240 240 237 237 3 07/01/18
280 120 300 113 293 7 03/01/08
281 120 300 119 299 1 09/01/08
- --------------------------------------------------------------------------------------------------------------------------------
282 120 360 118 358 2 08/01/08
283 180 180 179 179 1 09/01/13
284 240 240 238 238 2 08/01/18
285 120 300 117 297 3 07/01/08
286 120 300 117 297 3 07/01/08
- --------------------------------------------------------------------------------------------------------------------------------
287 120 360 118 358 2 08/01/08
288 120 300 118 298 2 08/01/08
289 120 300 117 297 3 07/01/08
290 240 240 236 236 4 06/01/18
291 120 360 114 354 6 04/01/08
- --------------------------------------------------------------------------------------------------------------------------------
292 120 360 114 354 6 04/01/08
293 120 360 114 354 6 04/01/08
294 120 360 118 358 2 08/01/08
295 240 240 239 239 1 09/01/18
296 120 300 116 296 4 06/01/08
- --------------------------------------------------------------------------------------------------------------------------------
297 240 240 238 238 2 08/01/18
298 247 246 244 243 3 01/31/19
299 120 300 113 293 7 03/01/08
300 144 144 140 140 4 06/01/10
301 180 180 177 177 3 07/01/13
- --------------------------------------------------------------------------------------------------------------------------------
302 120 300 119 299 1 09/01/08
303 120 300 120 300 0 10/01/08
304 120 360 118 358 2 08/01/08
305 180 360 178 358 2 08/01/13
306 120 300 118 298 2 08/01/08
- --------------------------------------------------------------------------------------------------------------------------------
307 120 360 117 357 3 07/01/08
308 120 360 116 356 4 06/01/08
309 120 360 114 354 6 04/01/08
310 120 360 114 354 6 04/01/08
311 240 240 237 237 3 07/01/18
- --------------------------------------------------------------------------------------------------------------------------------
312 120 360 119 359 1 09/01/08
313 180 360 178 358 2 08/01/13
314 120 300 116 296 4 06/01/08
315 120 300 117 297 3 07/01/08
316 240 240 238 238 2 08/01/18
- --------------------------------------------------------------------------------------------------------------------------------
317 120 360 114 354 6 04/01/08
318 120 300 115 295 5 05/01/08
319 120 300 120 300 0 10/01/08
320 120 360 114 354 6 04/01/08
321 120 300 120 300 0 10/01/08
- --------------------------------------------------------------------------------------------------------------------------------
322 120 360 117 357 3 07/05/08
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PREPAYMENT YIELD
CONTROL BEGIN MAINTENANCE APPRAISED APPRAISAL
NUMBER DATE PREPAYMENT PENALTY DESCRIPTION (MONTHS) TYPE VALUE DATE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 05/11/00 Lockout/24_Defeasance/96 $ 520,600,000
1a 6,200,000 03/01/98
1b 14,400,000 03/01/98
1c 7,400,000 03/01/98
1d 35,100,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
1e 15,800,000 03/01/98
1f 27,800,000 03/01/98
1g 22,900,000 03/01/98
1h 8,300,000 03/01/98
1i 57,600,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
1j 4,750,000 03/01/98
1k 23,500,000 03/01/98
1l 7,300,000 03/01/98
1m 450,000 03/01/98
1n 18,900,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
1o 34,200,000 03/01/98
1p 20,400,000 03/01/98
1q 2,400,000 03/01/98
1r 47,800,000 03/01/98
1s 2,300,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
1t 24,600,000 03/01/98
1u 12,200,000 03/01/98
1v 14,300,000 03/01/98
1w 32,600,000 03/01/98
1x 10,700,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
1y 9,100,000 03/01/98
1z 10,000,000 03/01/98
1aa 6,800,000 03/01/98
1bb 18,200,000 03/01/98
1cc 24,600,000 03/01/98
- ------------------------------------------------------------------------------------------------------------------------------
2 01/01/07 Lock/108_0%12 178,375,000
2a 55,500,000 08/28/98
2b 5,925,000 09/01/98
2c 8,500,000 08/29/98
2d 5,700,000 08/28/98
- ------------------------------------------------------------------------------------------------------------------------------
2e 4,350,000 08/27/98
2f 10,000,000 08/28/98
2g 8,600,000 08/31/98
2h 10,650,000 08/28/98
2i 8,400,000 08/27/98
- ------------------------------------------------------------------------------------------------------------------------------
2j 26,000,000 08/28/98
2k 3,350,000 09/02/98
2l 6,250,000 08/31/98
2m 17,000,000 08/31/98
2n 3,650,000 09/01/98
- ------------------------------------------------------------------------------------------------------------------------------
2o 4,500,000 08/29/98
3 09/01/00 Locked/26_Defeasance/94 169,900,000
3a 20,100,000 05/29/98
3b 31,000,000 06/01/98
3c 26,000,000 06/01/98
- ------------------------------------------------------------------------------------------------------------------------------
3d 27,500,000 06/01/98
3e 18,600,000 06/01/98
3f 17,400,000 06/03/98
3g 13,000,000 06/01/98
3h 16,300,000 06/01/98
- ------------------------------------------------------------------------------------------------------------------------------
4 11/11/00 Lockout/29_Defeasance/92_0%/1 122,600,000
4a 84,900,000 04/17/98
4b 37,700,000 04/17/98
5 11/11/00 Lockout/25_Defeasance/95 102,300,000
6 06/11/01 Lock/36_Defeasance/83_0%/1 45,000,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
7 09/01/01 Lock/36_Defeasance/84 32,000,000 06/24/98
07/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 36,500,000 12/17/97
8 13,800,000 12/17/97
9 7,400,000 12/17/97
10 6,300,000 12/04/97
- ------------------------------------------------------------------------------------------------------------------------------
11 4,500,000 12/17/97
12 4,500,000 12/17/97
13 08/01/01 Lock/36_Defeasance/81_0%/3 34,300,000 05/01/98
07/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 32,400,000 12/17/97
14 9,000,000 12/17/97
- ------------------------------------------------------------------------------------------------------------------------------
15 8,700,000 12/17/97
16 6,600,000 12/17/97
17 5,400,000 12/17/97
18 2,700,000 12/17/97
19 10/01/01 Lock/36_Defeasance/81_0%/3 25,400,000 07/11/98
- ------------------------------------------------------------------------------------------------------------------------------
20 10/01/01 Lock/36_Defeasance/81_0%/3 27,200,000 07/21/98
21 11/01/00 Lock/28_Defeasance/91_0%/1 34,500,000 04/09/98
22 11/01/00 Lockout/31_Defeasance/82_0%/6 37,000,000 10/01/97
23 02/01/02 Lockout/48_>YM or 1%/186_0%/6 Treasury Flat 33,800,000 11/25/97
24 08/01/00 Lock/36_>YM or 1%/42_0%/6 Treasury Flat 24,500,000 06/01/97
- ------------------------------------------------------------------------------------------------------------------------------
25 11/11/00 Lock/30_Defeasance/87_0%/3 22,000,000 02/01/98
26 11/01/00 Lock/26_Defeasance/91_0%/3 26,800,000
26a 7,600,000 05/06/98
26b 4,200,000 05/06/98
26c 7,500,000 05/07/98
- ------------------------------------------------------------------------------------------------------------------------------
26d 7,500,000 05/06/98
27 02/01/02 Lock/48_>1% or YM/69_0%/3 Treasury Flat 28,690,000 09/24/97
28 10/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 20,200,000 07/01/98
29 08/01/01 Lock/36_Defeasance/81_0%/3 17,600,000 05/01/98
30 08/01/01 Lock/36_Defeasance/81_0%/3 21,600,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
31 10/01/01 Lock/36_Defeasance/81_0%/3 18,800,000 07/23/98
32 07/01/01 Lock/36_Defeasance/78_0%/6 21,500,000 06/02/98
33 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 16,500,000 03/01/98
34 08/01/01 Lock/36_Defeasance/81_0%/3 17,700,000 05/01/98
35 05/01/01 Lockout/36_Defeasance/138_0%/6 15,400,000 02/28/98
- ------------------------------------------------------------------------------------------------------------------------------
36 05/01/01 Lock/36_Defeasance/81_0%/3 17,700,000
36a 7,250,000 03/04/98
36b 5,350,000 03/04/98
36c 5,100,000 03/04/98
37 11/01/00 Lock/26_Defeasance/88_0%/6 16,000,000 08/01/98
- ------------------------------------------------------------------------------------------------------------------------------
38 10/01/01 Lock/36_Defeasance/138_0%/6 15,100,000 06/10/98
39 07/01/01 Lockout/36_Defeasance/42_0%/6 13,450,000 03/23/98
40 02/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 14,500,000
40a 7,900,000 07/16/97
40b 6,600,000 07/15/97
- ------------------------------------------------------------------------------------------------------------------------------
41 05/01/01 Lock/36_Defeasance/81_0%/3 15,000,000 02/03/98
42 11/01/00 Lock/28_Defeasance/91_0%/1 18,500,000 04/08/98
43 08/01/01 Lock/36_Defeasance/81_0%/3 15,600,000 05/01/98
44 08/01/01 Lock/36_81/Defeasance_0%/3 12,670,000 06/23/98
45 04/10/01 Lock/36_Defeasance/81_0%/3 12,120,000 03/09/98
- ------------------------------------------------------------------------------------------------------------------------------
46 11/01/00 Lock/30_Defeasance/84_0%/6 13,500,000 12/31/97
47 11/01/00 Lock/29_Defeasance/85_0%/6 16,300,000 11/04/97
48 11/01/00 Lock/30_Defeasance/90 13,250,000 10/09/97
49 02/01/01 Lock/36_Defeasance/224 11,800,000 10/30/97
50 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 11,090,000 01/28/98
- ------------------------------------------------------------------------------------------------------------------------------
51 09/01/01 Lockout/36_Defeasance/78_0%/6 11,285,000 06/29/98
52 10/01/01 lock/36_>YM or 1%/78_0%/6 Treasury Flat 10,700,000 06/18/98
53 10/01/98 Lock/12_>YM or 1%/102_0%/6 Spread to Treasury 13,750,000 05/01/97
54 07/01/01 Lockout/36_Defeasance/84 11,900,000 12/02/97
55 11/01/00 Lock/33_Defeasance/81_0%/6 16,200,000 12/15/97
- ------------------------------------------------------------------------------------------------------------------------------
56 05/10/01 Lock/36_Defeasance/84_0%/1 10,350,000 04/02/98
57 01/01/01 Lock/36_ Defeasance/78_0%/6 10,450,000 08/20/97
58 09/01/01 Lock/36_Defeasance/81_0%/3 10,500,000 05/06/98
59 09/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 10,295,000
59a 2,500,000 05/25/98
- ------------------------------------------------------------------------------------------------------------------------------
59b 1,250,000 05/31/98
59c 2,000,000 06/02/98
59d 1,275,000 06/08/98
59e 1,770,000 06/01/98
59f 1,500,000 05/20/98
- ------------------------------------------------------------------------------------------------------------------------------
60 11/01/00 Lock/29_Defeasance/91 10,100,000 09/15/97
61 06/01/01 Lock/36_Defeasance/78_0%/6 12,700,000 09/01/97
62 06/01/01 Lock/36_Defeasance/81_0%/3 9,200,000
62a 2,600,000 02/17/98
62b 5,700,000 02/16/98
- ------------------------------------------------------------------------------------------------------------------------------
62c 900,000 03/02/98
63 03/01/01 Lock/36_Defeasance/84 10,000,000 10/20/97
64 10/01/01 Lock/36_Defeasance/201_0%/3 9,400,000 08/01/98
65 06/01/01 Lock/36_Defeasance/78_0%/6 8,150,000 02/19/98
66 11/01/00 Lock/32_Defeasance/88 9,500,000 11/21/97
- ------------------------------------------------------------------------------------------------------------------------------
67 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 8,150,000 04/03/98
68 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 8,300,000 02/24/98
69 09/01/01 Lock/36_Defeasance/81_0%/3 7,750,000 05/11/98
70 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 7,540,000 01/07/98
71 01/01/01 Lock/36_Defeasance/204 7,335,000 09/11/97
- ------------------------------------------------------------------------------------------------------------------------------
72 10/01/01 Lock/36_Defeasance/78_0%/6 7,950,000
72a 3,100,000 07/07/98
72b 2,600,000 07/07/98
72c 2,250,000 07/07/98
73 07/01/01 Lock/36_Defeasance/83_0%/1 6,100,000 04/23/98
- ------------------------------------------------------------------------------------------------------------------------------
74 09/01/02 Lock/48_>YM or 1%/66_0%/6. Treasury Flat 10,000,000 04/15/98
75 10/01/01 Lock/36_Defeasance/81_0%/3 9,000,000 07/11/98
76 06/01/01 Lock/36_Defeasance/83_0%/1 6,000,000 04/15/98
77 04/01/04 Lock/72_>YM or 1%/42_0%/6 Treasury Flat 7,800,000 01/13/98
78 08/01/01 Lock/36_Defeasance/78_0%/6 7,900,000 04/08/98
- ------------------------------------------------------------------------------------------------------------------------------
79 10/01/02 Lock/48>YM or 1%/66_0%/6 Treasury Flat 7,400,000 03/16/98
80 06/01/01 Lock/36_Defeasance/78_0%/6 6,950,000 04/01/98
81 03/01/01 Lock/36_Defeasance/84 6,570,000 11/01/97
82 07/01/01 Lockout/36_Defeasance/78_0%/6 6,400,000 04/05/98
83 05/01/01 Lock/36_Defeasance/81_0%/3 6,200,000 01/28/98
- ------------------------------------------------------------------------------------------------------------------------------
84 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 8,200,000 08/29/97
85 04/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 7,400,000 12/02/97
86 08/01/01 Lockout/36_Defeasance/206_0%/6 6,620,000 04/01/98
87 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,100,000 04/17/98
88 10/01/01 Lock/36_Defeasance/78_0%/6 6,800,000 03/25/98
- ------------------------------------------------------------------------------------------------------------------------------
89 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,050,000 03/17/98
90 03/01/01 Lock/36_Defeasance/78_0%/6 5,950,000 12/29/97
91 09/01/01 Lock/36_Defeasance/81_0%/3 6,050,000 06/23/98
92 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,200,000 03/31/98
93 05/01/01 Lock/36_Defeasance/78_0%/6 5,700,000 12/18/97
- ------------------------------------------------------------------------------------------------------------------------------
94 09/01/01 Lockout/36_Defeasance/78_0%/6 6,020,000 06/01/98
95 08/01/01 Lockout/36_Defeasance/78_0%/6 5,700,000
95a 2,600,000 04/15/98
95b 3,100,000 04/15/98
96 07/01/01 Lockout/36_Defeasance/78_0%/6 6,000,000 02/12/98
- ------------------------------------------------------------------------------------------------------------------------------
97 06/01/01 Lock/36_Defeasance/81_0%/3 7,000,000 03/26/98
98 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 8,100,000 04/15/98
99 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,200,000 12/04/97
100 06/01/02 Lockout/48_>YM or 1%/54_0%/18 Treasury Flat 6,200,000 02/05/98
101 08/01/01 Lockout/36_Defeasance/198_0%/6 5,870,000 06/03/98
- ------------------------------------------------------------------------------------------------------------------------------
102 09/01/01 Lock/36_Defeasance/81_0%/3 5,850,000 05/11/98
103 06/01/01 Lock/36_Defeasance/78_0%/6 8,240,000
103a 880,000 03/06/98
103b 875,000 03/06/98
103c 560,000 03/06/98
- ------------------------------------------------------------------------------------------------------------------------------
103d 875,000 03/06/98
103e 1,130,000 03/06/98
103f 870,000 03/10/98
103g 1,030,000 03/06/98
103h 870,000 03/06/98
- ------------------------------------------------------------------------------------------------------------------------------
103i 1,150,000 03/06/98
104 11/01/00 Lock/25_Defeasance/89_0%/6 5,800,000 07/23/98
105 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,500,000 10/15/97
106 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,640,000
106a 1,650,000 01/23/98
- ------------------------------------------------------------------------------------------------------------------------------
106b 1,090,000 01/07/98
106c 1,590,000 01/07/98
106d 1,680,000 01/07/98
106e 630,000 01/07/98
107 09/01/01 Lock/36_Defeasance/81_0%/3 6,300,000 06/08/98
- ------------------------------------------------------------------------------------------------------------------------------
108 08/01/01 Lockout/36_Defeasance/84 5,700,000 07/01/98
109 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,550,000 12/11/97
110 10/01/01 Lockout/36_Defeasance/81_0%/3 4,950,000 08/03/98
111 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,875,000 07/14/98
112 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 6,480,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
113 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,100,000 04/10/98
114 06/01/01 Lock/36_Defeasance/84 4,900,000 04/21/98
115 09/01/01 Lock/36_Defeasance/81_0%/3 5,200,000 05/21/98
116 07/01/02 Lock/48_>YM or 1%/68_0%/4 Treasury Flat 5,175,000 03/26/98
117 09/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,100,000
- ------------------------------------------------------------------------------------------------------------------------------
117a 1,200,000 05/20/98
117b 3,900,000 06/14/98
118 07/01/06 Lock/96_>YM or 1%/138_0%/6 Treasury Flat 4,930,000 04/01/98
119 08/01/01 Lockout/36_Defeasance/198_0%/6 4,714,000 05/28/98
120 09/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,860,000 04/23/98
- ------------------------------------------------------------------------------------------------------------------------------
121 04/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 5,360,000 10/12/97
122 09/01/01 Lockout/36_Defeasance/81_0%/3 4,630,000 07/31/98
123 09/01/01 Lockout/36_Defeasance/198_0%/6 5,320,000 03/23/98
124 09/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,760,000 04/29/98
125 03/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,500,000 11/13/97
- ------------------------------------------------------------------------------------------------------------------------------
126 08/01/01 Lock/36_Defeasance/201_0%/3 4,900,000 04/02/98
127 09/01/01 Lock/36_Defeasance/203_0%/1 5,250,000 03/18/98
128 04/01/01 Lock/36_Defeasance/78_0%/6 5,400,000 11/12/97
129 11/01/00 Lock/25_Defeasance/89_0%/6 4,775,000
129a 3,200,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
129b 1,575,000 05/01/98
130 11/01/00 Lock/31_Defeasance/83_0%/6 5,000,000 01/12/98
131 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,500,000 11/12/97
132 10/01/01 Lock/36_Defeasance/81_0%/3 5,500,000 07/18/98
133 05/01/02 Lock/48_>YM/66_0%/6 Treasury Flat 4,390,000 01/15/98
- ------------------------------------------------------------------------------------------------------------------------------
134 02/01/02 Lockout/48_>YM or 1%/126_0%/6 Treasury Flat 5,500,000 10/03/97
135 04/01/02 Lock/48_>YM or 1%/67_0%/6 Treasury Flat 4,900,000 11/13/97
136 07/01/01 Lock/48_>YM or 1%/126_0%/6 Treasury Flat 4,750,000 04/07/97
137 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,650,000 03/01/98
138 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,900,000 10/23/97
- ------------------------------------------------------------------------------------------------------------------------------
139 07/01/01 Lock/36_Defeasance/83_0%/1 4,740,000 04/20/98
140 06/01/01 Lock/36_Defeasance/81_0%/3 4,600,000 03/16/98
141 06/01/01 Lock/36_Defeasance/201_0%/3 5,400,000 02/26/98
142 03/01/01 Lock/36_Defeasance/84 5,030,000 11/10/97
143 09/01/01 Lock/36_Defeasance/198_0%/6 4,400,000 07/17/98
- ------------------------------------------------------------------------------------------------------------------------------
144 08/01/04 Lock/84_>YM or 1%/90_0%/6 Treasury Flat 4,150,000 01/31/97
145 09/01/01 Lock/36_Defeasance/81_0%/3 5,150,000 03/13/98
146 01/01/06 Lockout/96_Defeasance/144 4,520,000 11/04/97
147 09/01/05 Lock/84_>YM or 1%/90_0%/6 Treasury Flat 3,900,000 05/19/98
148 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,350,000 01/13/98
- ------------------------------------------------------------------------------------------------------------------------------
149 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,100,000
149a 4,100,000 04/14/98
149b 04/14/98
150 09/01/01 Lock/36_Defeasance/78_0%/6 4,200,000 07/02/98
151 08/01/01 Lock/36_Defeasance/81_0%/3 5,100,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
152 04/01/02 Lock/48_>YM or 1%/67_0%/6 Treasury Flat 3,900,000 12/26/97
153 11/01/00 Lock/31_Defeasance/83_0%/6 3,900,000 02/20/98
154 05/01/02 Lock/48_>YM or 1%/30_0%/6 Treasury Flat 3,900,000 12/15/97
155 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,150,000 02/01/98
156 10/01/01 Lock36_Defeasance81_0%3 6,200,000 07/21/98
- ------------------------------------------------------------------------------------------------------------------------------
157 09/01/02 Lock/48_>YM or 1%/90_0%/6 Treasury Flat 3,975,000 06/26/98
158 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,150,000 03/05/98
159 05/01/01 Lock/36_Defeasance/83_0%/1 4,300,000 04/14/98
160 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,010,000 02/24/98
161 07/01/01 Lock/36_Defeasance/201_0%/3 5,100,000 04/17/98
- ------------------------------------------------------------------------------------------------------------------------------
162 04/01/01 Lock/36_Defeasance /84 4,050,000 08/01/97
163 08/01/01 Lock/36_Defeasance/81_0%/3 4,800,000 02/19/98
164 06/01/01 Lock/36_Defeasance/83_0%/1 3,930,000 03/17/98
165 09/01/01 Lock/36_Defeasance/198_0%/6 3,847,000 07/24/98
166 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 4,000,000 01/01/98
- ------------------------------------------------------------------------------------------------------------------------------
167 06/01/01 Lock/36_Defeasance/78_0%/6 3,600,000 03/10/98
168 04/01/06 Lock/96_Defeasance/24 4,260,000 09/08/97
169 06/01/01 Lock/36_Defeasance/201_0%/3 3,950,000 04/01/98
170 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 5,250,000 06/10/98
171 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,819,000 05/16/98
- ------------------------------------------------------------------------------------------------------------------------------
172 12/01/01 Lock/48_>YM or 1%/186_0%/6 Treasury Flat 3,700,000 01/22/97
173 06/01/03 Lock/60_>YM or 1%/54_0%/6 Treasury Flat 4,125,000
173a 665,000 01/22/98
173b 640,000 01/16/98
173c 665,000 01/16/98
- ------------------------------------------------------------------------------------------------------------------------------
173d 665,000 01/15/98
173e 655,000 01/15/98
173f 835,000 01/21/98
174 09/01/01 Lock/36_Defeasance/78_0%/6 3,400,000 07/08/98
175 09/01/01 Lock/36_Defeasance/201_0%/3 3,600,000 06/04/98
- ------------------------------------------------------------------------------------------------------------------------------
176 05/01/01 Lock/36_Defeasance/42_0%/6 3,600,000 02/09/98
177 10/01/98 Lock/6_>YM or 1%/101_0%/6 Spread to Treasury 13,750,000 05/01/97
178 09/01/05 Lock/84_>YM or 1%/90_0%/6 Treasury Flat 3,325,000 06/24/98
179 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,590,000 03/09/98
180 08/01/01 Lock/36_Defeasance_203/0%_1 4,000,000 04/15/98
- ------------------------------------------------------------------------------------------------------------------------------
181 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,500,000 03/23/98
182 04/01/02 Lock/48_>YM or1%/66_0%/6 Treasury Flat 3,520,000 10/17/97
183 11/01/00 Lock/27_>YM or 1%/92_0%/1 Treasury Flat 5,000,000 05/20/98
184 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,020,000 07/15/98
185 07/01/01 Lock/36_Defeasance/198_0%/6 3,400,000 04/01/98
- ------------------------------------------------------------------------------------------------------------------------------
186 03/01/01 Lock/36_Defeasance/78_0%/6 3,590,000
186a 2,000,000 12/17/97
186b 700,000 12/17/97
186c 890,000 12/18/97
187 09/01/01 Lockout/36_Defeasance/78_0%/6 3,400,000 04/30/98
- ------------------------------------------------------------------------------------------------------------------------------
188 09/01/01 Lock/36_Defeasance/203_0%/1 3,275,000 03/30/98
189 06/01/03 Lock/60_>YM or 1%/54_0%/6 Treasury Flat 3,705,000
189a 640,000 01/22/98
189b 830,000 01/21/98
189c 615,000 01/20/98
- ------------------------------------------------------------------------------------------------------------------------------
189d 880,000 01/21/98
189e 740,000 01/23/98
190 09/01/01 Lock/36_Defeasance/78_0%/6 3,000,000 07/08/98
191 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,470,000
191a 2,200,000 02/28/98
- ------------------------------------------------------------------------------------------------------------------------------
191b 1,270,000 03/07/98
192 03/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,670,000 11/18/97
193 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,300,000
193a 2,450,000 01/07/98
193b 850,000 01/07/98
- ------------------------------------------------------------------------------------------------------------------------------
194 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,300,000 02/25/98
195 05/01/01 Lock/36_Defeasance/81_0%/3 3,150,000 01/30/98
196 10/01/03 Lock/60_>YM or 1%/54_0%/6 Treasury Flat 3,200,000 04/30/98
197 08/01/01 Lock/36_Defeasance/81_0%/3 2,800,000 05/05/98
198 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,200,000 03/31/98
- ------------------------------------------------------------------------------------------------------------------------------
199 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,000,000 10/20/97
200 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,850,000 12/12/97
201 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,400,000 12/31/97
202 07/01/01 Lock/36_Defeasance/81_0%/3 2,950,000 04/07/98
203 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,919,000 02/16/98
- ------------------------------------------------------------------------------------------------------------------------------
204 04/01/02 Lock/48_>YM or 1%/66 0%_6 Treasury Flat 3,250,000 07/01/98
205 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,135,000
205a 680,000 03/17/98
205b 1,460,000 03/17/98
205c 770,000 03/17/98
- ------------------------------------------------------------------------------------------------------------------------------
205d 225,000 03/17/98
206 05/01/01 Lock/36_Defeasance/78_0%/6 2,600,000 02/17/98
207 04/01/01 Lock/36_Defeasance/66_0%/6 3,100,000 12/30/97
208 11/01/00 Lock/31_Defeasance/85_0%/4 2,900,000 12/01/97
209 05/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,735,000 06/18/97
- ------------------------------------------------------------------------------------------------------------------------------
210 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,860,000 05/20/98
211 06/01/01 Lock/36_Defeasance/78_0%/6 3,000,000 02/24/98
212 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,700,000 05/07/98
213 09/01/01 Lock/36_Defeasance/201_0%3 2,900,000 06/10/98
214 08/01/01 Lock/36_Defeasance/78_0%/6 3,100,000 06/02/98
- ------------------------------------------------------------------------------------------------------------------------------
215 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,800,000 12/24/97
216 06/01/01 Lock/36_Defeasance/78_0%/6 3,170,000
216a 1,000,000 03/06/98
216b 1,150,000 03/06/98
216c 1,020,000 03/06/98
- ------------------------------------------------------------------------------------------------------------------------------
217 06/01/01 Lock/36_Defeasance/78_0%/6 3,375,000 03/10/98
218 07/01/01 Lock/36_Defeasance/78_0%/6 2,700,000 12/18/97
219 11/01/00 Lock/28_Defeasance/91_0%/1 2,400,000 03/22/98
220 10/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,100,000 07/21/98
221 09/01/01 Lock/36_Defeasance/203_0%/1 2,850,000 04/16/98
- ------------------------------------------------------------------------------------------------------------------------------
222 09/01/01 Lockout/36_Defeasance/201_0%/3 2,900,000 05/13/98
223 06/01/01 Lock/36_Defeasance/78_0%/6 2,870,000 03/11/97
224 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 3,350,000 04/28/98
225 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,900,000 02/26/98
226 03/01/01 Lock/36_Defeasance/78_0%/6 2,650,000 10/09/97
- ------------------------------------------------------------------------------------------------------------------------------
227 07/01/02 Lock/48_>YM or1%/66_0%/6 Treasury Flat 2,670,000 01/09/98
228 03/01/05 Lockout/84_>YM or 1%/90_0%6 Treasury Flat 4,830,000 01/07/98
229 09/01/01 Lock/36_Defeasance/81_0%/3 3,000,000 06/01/98
230 10/01/01 Lock/36_Defeasance/78_0%/6 2,800,000 03/25/98
231 08/01/01 Lock/36_Defeasance/83_0%/1 2,400,000 05/01/98
- ------------------------------------------------------------------------------------------------------------------------------
232 09/01/01 Lock/36_Defeasance/195_0%/6 2,225,000 07/09/98
233 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,300,000 04/14/98
234 07/01/01 Lock/36_Defeasance/201_0%/3 2,435,000 02/24/98
235 06/01/01 Lock/36_Defeasance/191_0%/3 1,870,000 03/16/98
236 09/01/01 Lockout/36_Defeasance/78_0%/6 2,390,000 03/19/98
- ------------------------------------------------------------------------------------------------------------------------------
237 09/01/01 Lock/36_Defeasance/78_0%/6 2,415,000 05/15/98
238 08/01/01 Lock/36_Defeasance/81_0%/3 2,300,000 06/03/98
239 07/01/01 Lock/36_Defeasance/81_0%/3 2,100,000 04/07/98
240 07/01/01 Lock/36_Defeasance/201_0%/3 2,550,000 02/17/98
241 05/01/01 Lock/36_Defeasance/189_0%/3 1,815,000 03/02/98
- ------------------------------------------------------------------------------------------------------------------------------
242 07/01/01 Lock/36_Defeasance/81_0%/3 2,400,000 04/13/98
243 05/01/02 Lock/48_>1% or YM/66_0%/6 Treasury Flat 2,300,000 02/05/98
244 10/01/02 Lock/48_>YM or 1%/66/_0%/6 Treasury Flat 2,350,000 07/09/98
245 11/01/00 Lock/31_Defeasance/83_0%/6 2,300,000 02/20/98
246 07/01/01 Lock/36_Defeasance/83_0%/1 2,300,000 04/16/98
- ------------------------------------------------------------------------------------------------------------------------------
247 07/01/01 Lock/36_Defeasance/78_0%/6 2,300,000 04/01/98
248 07/01/01 Lock/36_Defeasance/201_0%/3 2,350,000 02/17/98
249 07/01/01 Lock/36_Defeasance/201_0%/3 2,450,000 02/17/98
250 11/01/00 Lock/28_Defeasance/91_0%/1 2,850,000 04/02/98
251 08/01/01 Lock/36_Defeasance/201_0%/3 2,820,000 04/10/98
- ------------------------------------------------------------------------------------------------------------------------------
252 05/01/02 Lock/48_>YM or 1%/162_0%/6 Treasury Flat 2,100,000 01/05/98
253 07/01/01 Lock/36_Defeasance/201_0%/3 2,400,000 02/17/98
254 04/01/02 Lockout/48_>YM or 1%/126_0%/6 Treasury Flat 2,200,000 01/12/98
255 07/01/01 Lockout/36_>YM or 1%/174_0%/6 Treasury Flat 2,250,000 03/17/98
256 08/01/01 Lockout/36_Defeasance/198_0%/6 2,230,000 04/24/98
- ------------------------------------------------------------------------------------------------------------------------------
257 07/01/03 Lockout/60_Defeasance/54_0%/6 2,200,000 03/23/98
258 09/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 2,140,000 05/22/98
259 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,140,000 01/07/98
260 06/01/01 Lock/36_Defeasance/81_0%/3 2,200,000 03/20/98
261 04/01/01 Lock/36_Defeasance/81_0%/3 2,250,000 11/24/97
- ------------------------------------------------------------------------------------------------------------------------------
262 07/01/01 Lock/36_Defeasance/201_0%/3 1,950,000 06/01/98
263 08/01/01 Lock/36_Defeasance/81_0%/3 2,000,000 07/01/98
264 05/01/01 Lock/36_Defeasance/201_0%/3 2,195,000 04/06/98
265 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,145,000 10/24/97
266 09/01/01 Lock/36_Defeasance/81_0%/3 2,400,000 05/11/98
- ------------------------------------------------------------------------------------------------------------------------------
267 07/01/01 Lock/36_Defeasance/81_0%/3 2,100,000 04/20/98
268 06/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,990,000 02/02/98
269 07/01/03 Lock/60_Defeasance/54_0%/6 3,150,000 04/21/98
270 06/01/01 Lock/36_Defeasance/78_%0/6 2,100,000 03/23/98
271 03/01/01 Lock/36_Defeasance/84 2,050,000 12/16/97
- ------------------------------------------------------------------------------------------------------------------------------
272 05/01/01 Lock/36_Defeasance/138_0%/3 1,700,000 03/03/98
273 02/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,000,000 09/10/97
274 09/01/01 Lock/36_Defeasance/78_0%/6 2,165,000 05/20/98
275 08/01/01 Lock/36_>YM or 1%/78_0%/6 Treasury Flat 1,970,000 04/10/98
276 06/01/01 Lockout/36_Defeasance/78_0%/6 2,020,000 01/12/98
- ------------------------------------------------------------------------------------------------------------------------------
277 07/01/01 Lock/36_Defeasance/201_0%/3 1,950,000 04/04/98
278 08/01/01 Lock/36_Defeasance/201_0%/3 1,950,000 04/16/98
279 07/01/01 Lock/36_Defeasance/203_0%/1 1,950,000 04/15/98
280 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 2,000,000 12/10/97
281 10/01/01 Lock/36_Defeance/78_0%/6 1,950,000 07/14/98
- ------------------------------------------------------------------------------------------------------------------------------
282 08/01/01 Lock/36_Defeasance/83_0%/1 1,900,000 06/01/98
283 09/01/01 Lock/36_Defeasance/141_0%/3 3,050,000 04/09/98
284 09/01/08 Lock/120_>YM or 1%/114_0%/6 Treasury Flat 3,000,000 06/05/98
285 11/01/00 Lock/28_Defeasance/91_0%/1 2,500,000 03/25/98
286 08/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,700,000 04/06/98
- ------------------------------------------------------------------------------------------------------------------------------
287 08/01/01 Lockout/36_Defeasance/78_0%/6 1,800,000 02/19/98
288 08/01/01 Lock/36_Defeasance/83_0%/1 1,850,000 04/23/98
289 07/01/01 Lock/36_Defeasance/78_0%/6 2,100,000 01/08/98
290 06/01/01 Lock/36_Defeasance/201_0%/3 2,000,000 03/19/98
291 11/01/00 Lock/31_Defeasance/83_0%/6 1,650,000 02/20/98
- ------------------------------------------------------------------------------------------------------------------------------
292 04/01/01 Lock/36_>YMor1%/78_0%/6 Treasury Flat 1,800,000 11/16/97
293 11/01/00 Lock/31_Defeasance/83_0%/6 1,660,000 03/08/98
294 08/01/01 Lockout/36_Defeasance/78_0%/6 2,050,000 05/20/98
295 09/01/01 Lock/36_Defeasance/201_0%/3 1,925,000 06/10/98
296 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,670,000 03/24/98
- ------------------------------------------------------------------------------------------------------------------------------
297 08/01/01 Lock/36_Defeasance/201_0%/3 1,600,000 04/09/98
298 07/01/01 Lock/36_Defeasance/208_0%/3 1,925,000 05/27/98
299 04/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,600,000 11/03/97
300 06/01/01 Lock/36_Defeasance/105_0%/3 2,025,000 03/19/98
301 07/01/01 Lock/36_Defeasance/141_0%/3 2,400,000 08/10/97
- ------------------------------------------------------------------------------------------------------------------------------
302 09/01/01 Lockout/36_>YM or 1%/78_0%/6 Treasury Flat 1,900,000 07/01/98
303 10/01/01 Lock/36_Defeasance/78_0%/6 1,550,000 03/13/98
304 09/01/02 Lock/48_YM or 1%/66_0%/6 Treasury Flat 1,550,000 03/31/98
305 09/01/05 Lock/84_>YM or 1%/90_0%/6 Treasury Flat 1,825,000 06/24/98
306 09/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,700,000 05/27/98
- ------------------------------------------------------------------------------------------------------------------------------
307 07/01/01 Lock/36_Defeasance/83_0%/1 1,230,000 05/07/98
308 07/01/01 Lock/36_Defeasance/78_0%/6 1,700,000 04/07/98
309 11/01/00 Lock/31_Defeasance/83_0%/6 1,435,000 03/08/98
310 11/01/00 Lock/31_Defeasance/83_0%/6 1,340,000 03/08/98
311 07/01/01 Lock/36_Defeasance/201_0%/3 1,325,000 02/24/98
- ------------------------------------------------------------------------------------------------------------------------------
312 09/01/01 Lockout/36_Defeasance/78_0%/6 1,200,000 05/21/98
313 09/01/05 Lock/84_>YM or 1%/90_0%/6 Treasury Flat 1,290,000 06/24/98
314 07/01/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 1,370,000 04/01/98
315 07/01/01 Lock/36_Defeasance/81_0%/3 1,400,000 04/21/98
316 08/01/01 Lockout/36_Defeasance/198_0%/6 1,150,000 05/05/98
- ------------------------------------------------------------------------------------------------------------------------------
317 04/01/01 Lock/36_Defeasance/81_0%/3 875,000 03/01/98
318 05/01/01 Lock/36_Defeasance/78_0%/6 900,000 01/01/98
319 10/01/01 Lock/36_Defeasance/78_0%/6 985,000 02/20/98
320 04/01/01 Lock/36_Defeasance/81_0%/3 740,000 03/01/98
321 10/01/01 Lock/36_Defeasance/78_0%/6 825,000 03/20/98
- ------------------------------------------------------------------------------------------------------------------------------
322 08/05/02 Lock/48_>YM or 1%/66_0%/6 Treasury Flat 720,000 05/01/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ORIGINATION CUT-OFF ANTICIPATED
CONTROL DATE LTV DATE LTV LTV YEAR (S) YEAR (S) LOCKBOX
NUMBER RATIO RATIO AT MATURITY/ARD BUILT RENOVATED REQUIRED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 57.05% 56.70% 22.45% Yes
1a 1976 1980
1b 1973 1977
1c 1969 UAV
1d 1959 1960,62,64,70,94,96
- -----------------------------------------------------------------------------------------------------------------------------------
1e 1965 1966 and 1968
1f 1973 1978
1g 1969 1971
1h 1962 1973
1i 1976, 1997 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
1j 1979 1980
1k 1975 UAV
1l 1954 1970, 1980
1m 1953 UAV
1n 1958 1971, 1978, 1988
- -----------------------------------------------------------------------------------------------------------------------------------
1o 1967 1970, 1979
1p 1946 1953,57,59,61,67,74
1q 1956 UAV
1r 1978 1981
1s 1964 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
1t 1995 NAP
1u 1967 UAV
1v 1955, 1959, 1969 1986
1w 1963 1967, 1981
1x 1996 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
1y 1985 UAV
1z 1960 1968
1aa 1981 UAV
1bb 1985 UAV
1cc 1952, 1956 1956, 1968, 1979
- -----------------------------------------------------------------------------------------------------------------------------------
2 61.67 61.19 52.19 No
2a 1971 UAV
2b 1967, 1971 UAV
2c 1973 UAV
2d 1970 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
2e 1973 UAV
2f 1977 UAV
2g 1968-1975 UAV
2h 1978 UAV
2i 1970-1974 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
2j 1971 UAV
2k 1974 UAV
2l 1971 UAV
2m 1968 UAV
2n 1971 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
2o 1973 UAV
3 61.80 61.65 52.92 Yes
3a 1995 NAP
3b 1996 NAP
3c 1997 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
3d 1996 NAP
3e 1997 NAP
3f 1997 NAP
3g 1996 NAP
3h 1995 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
4 71.53 71.31 61.42 Yes
4a 1987 NAP
4b 1980 NAP
5 53.76 53.76 42.29 1985 1997 Yes
6 73.33 73.13 64.42 1950, 1973, 1976 1996 No
- -----------------------------------------------------------------------------------------------------------------------------------
7 80.00 79.94 70.48 1994-1996 NAP Yes
69.86 69.65 60.53
8 72.10 71.88 62.47 1924 1997 No
9 79.05 78.81 68.49 1902 UAV No
10 61.59 61.40 53.36 1890-1900 1996 No
- -----------------------------------------------------------------------------------------------------------------------------------
11 72.67 72.45 62.96 1932 UAV Not Applicable
12 56.67 56.49 49.10 1892 1997 No
13 71.43 71.28 57.71 1913, 1959 1990, 1991 Yes
69.51 69.29 60.22
14 76.22 75.99 66.04 1911 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
15 71.49 71.28 61.94 1966 1995 No
16 68.33 68.13 59.20 1953 UAV No
17 60.19 60.00 52.15 1906 UAV No
18 62.22 62.03 53.91 1928 1994 No
19 85.83 85.74 70.93 1974/1979 1993-1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
20 79.04 79.04 68.72 1982, 1985 thru 1987 1998 No
21 61.88 61.76 53.12 1902, 1930-1950 1984-1985 Yes
22 56.76 56.58 51.22 1960's, 1980 1997 Yes
23 59.17 58.23 0.00 1942 1997 No
24 77.42 76.65 71.90 1958 1986 No
- -----------------------------------------------------------------------------------------------------------------------------------
25 79.55 79.29 70.09 1966 1988 Yes
26 64.93 64.85 52.37 No
26a 1993 NAP
26b 1996 NAP
26c 1993 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
26d 1992 NAP
27 52.28 52.28 52.28 NAP NAP Yes
28 71.78 71.73 62.90 1926 Various No
29 80.68 80.57 70.84 1990-1991 NAP Yes
30 62.50 62.36 49.69 1996 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
31 70.74 70.67 58.46 1967 to 1981 1995 - 1997 No
32 60.47 60.26 48.25 1989 NAP No
33 77.58 77.37 68.22 1964 1989-1991 No
34 70.62 70.47 57.34 1926 1990 Yes
35 81.17 80.92 63.77 1964 1994,1997 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
36 70.62 70.38 61.86 No
36a 1979 UAV
36b 1980 UAV
36c 1978 UAV
37 74.06 73.99 63.49 1990 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
38 74.50 74.44 57.04 1998 NAP No
39 79.55 79.40 73.64 1991 1997 Yes
40 73.10 72.58 63.12 Yes
40a 1987 NAP
40b 1989 1997
- -----------------------------------------------------------------------------------------------------------------------------------
41 68.00 67.77 59.61 1972-1978 1995 No
42 54.86 54.76 47.09 1986-1990 UAV Yes
43 65.06 64.92 51.91 1969 1996 Yes
44 79.32 79.20 69.08 1969 UAV No
45 80.86 80.50 70.42 1983 1998 Not Applicable
- -----------------------------------------------------------------------------------------------------------------------------------
46 70.37 70.13 61.72 1974 1991-1997 Yes
47 57.67 57.53 51.20 1996 NAP Yes
48 70.94 70.72 62.67 1980 NAP Yes
49 80.00 78.87 0.00 1994,1996 NAP Yes
50 79.35 79.20 69.73 1994 1995 No
- -----------------------------------------------------------------------------------------------------------------------------------
51 77.45 77.38 67.20 1967 UAV Yes
52 80.93 80.87 71.07 1984 UAV No
53 79.58 78.66 64.53 1996-97 NAP No
54 68.07 67.85 54.92 1992 1997 No
55 49.38 49.38 49.38 1980 1997 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
56 77.36 77.11 68.10 1985 1996 No
57 73.68 73.13 64.01 1985 1993 No
58 72.19 72.11 58.53 1976 1995 No
59 73.58 73.44 60.35 No
59a 1962 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
59b 1972 UAV
59c 1974 1987
59d 1972 UAV
59e 1973 UAV
59f 1971 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
60 72.28 72.10 64.22 Various UAV Yes
61 55.12 54.90 45.10 1958 1996-1997 No
62 73.91 73.66 64.74 Yes
62a 1966 NAP
62b 1973 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
62c 1975 UAV
63 66.00 65.65 57.12 1978 1995/1997 Yes
64 69.30 69.30 0.00 1997 NAP No
65 79.75 79.54 70.28 1988 1997 Yes
66 68.42 68.10 60.16 1959 1980,1995 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
67 79.14 78.94 69.90 1985/88 1997 No
68 73.49 73.20 63.26 1959 UAV No
69 75.00 74.92 60.99 1977 1995 No
70 75.99 75.70 65.70 1913 1988 No
71 77.03 75.74 0.00 1997 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
72 69.18 69.10 55.60 No
72a 1974 NAP
72b 1975 NAP
72c 1973,1977,1979 NAP
73 89.88 89.69 78.26 1970 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
74 54.70 54.58 44.05 1990 1997 No
75 60.00 59.94 49.58 1970-1971 1993 No
76 90.00 89.62 73.12 1969, 1990-95 NAP No
77 69.23 68.81 57.68 1991 NAP No
78 67.72 67.58 59.00 1954, 1987-88 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
79 71.89 71.83 62.65 1936 1997 No
80 75.54 75.34 66.56 1988-1991 NAP Yes
81 79.15 78.56 64.92 1992 to 1993 NAP Yes
82 80.00 79.84 69.98 1971 & 1986 1991 Yes
83 80.65 80.42 72.07 1926 & 1930 1997 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
84 60.98 60.73 52.50 1981 1990 No
85 67.57 67.23 59.06 1988 NAP No
86 75.00 74.75 0.00 1994 NAP Yes
87 80.00 79.84 69.87 1992 NAP No
88 71.32 71.32 62.36 1981-1984/1989 1988 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
89 79.34 79.12 69.46 1980 1993-1997 No
90 79.83 79.33 69.66 1971 1996 No
91 76.03 75.91 65.34 1972 1994 No
92 74.19 73.93 58.79 1989-1990 UAV No
93 80.00 79.66 70.08 1979 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
94 74.75 74.69 65.36 1997 NAP Yes
95 78.95 78.83 68.86 Yes
95a 1970 1991 & 1996
95b 1973 1991 & 1996
96 75.00 74.86 66.21 1984 1997 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
97 64.29 64.11 56.31 1990 1993 No
98 55.56 55.39 45.06 1909 1980's - 1990's No
99 72.58 72.17 62.56 1969 1992 No
100 72.58 71.51 34.42 1987 NAP No
101 74.96 74.69 0.00 1994-95 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
102 74.96 74.87 60.77 1976 1995 No
103 53.40 52.96 37.35 Not Applicable
103a 1978 & 1988 NAP
103b 1984 & 1989 NAP
103c 1985 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
103d 1987 & 1988 NAP
103e 1990 & 1992 NAP
103f 1989 NAP
103g 1982, 1990, 1994 NAP
103h 1992 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
103i 1994 NAP
104 75.00 75.00 59.04 1970 1988, 1993, 1995 Yes
105 66.92 66.42 54.15 1903 1976 (see Comments) No
106 64.76 64.38 51.51 No
106a 1862 1970's,1988,1994-96
- -----------------------------------------------------------------------------------------------------------------------------------
106b 1952, 1966 UAV
106c 1930's, 1940's 54,'71,81,'83,'91,94
106d 1955 1998
106e 1959 1985
107 66.67 66.59 54.05 1973 & 1991 UAV Yes
- -----------------------------------------------------------------------------------------------------------------------------------
108 73.68 73.58 64.31 1998 NAP Yes
109 74.59 74.20 64.72 1988 UAV No
110 81.82 81.82 70.60 1997 NAP Not Applicable
111 68.09 68.00 54.65 1966 1985 No
112 61.73 61.59 53.62 1979 1994-95 No
- -----------------------------------------------------------------------------------------------------------------------------------
113 78.43 78.21 68.63 1988 1996 No
114 80.82 80.60 71.07 1986 1997 Yes
115 75.96 75.85 65.94 1969 1992 No
116 74.40 74.02 58.34 1973 1997-1998 No
117 75.00 74.85 61.51 No
- -----------------------------------------------------------------------------------------------------------------------------------
117a 1969 1985
117b 1984 UAV
118 77.08 76.55 0.00 1997 NAP No
119 79.76 79.49 0.00 1984 1992 Yes
120 77.16 77.00 62.78 1982 1992 No
- -----------------------------------------------------------------------------------------------------------------------------------
121 69.78 69.47 61.84 1987 UAV Not Applicable
122 79.91 79.85 70.08 1986 UAV No
123 69.55 69.42 0.00 1993 NAP Yes
124 77.73 77.57 63.22 1985 1998 No
125 67.27 66.82 57.69 1989 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
126 75.00 74.73 0.00 1997 NAP No
127 69.33 69.21 0.00 1986 1992 No
128 67.59 67.20 58.02 1995-1997 NAP No
129 75.39 75.39 65.93 Yes
129a 1986 UAV
- -----------------------------------------------------------------------------------------------------------------------------------
129b 1989 UAV
130 72.00 71.69 63.06 1992-1993 1994 Yes
131 80.00 79.29 62.87 1932 UAV No
132 63.64 63.57 52.59 1989, 1993 1995-1996 No
133 79.73 79.34 68.61 1986 and 1987 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
134 63.64 63.21 48.21 1988/1989 NAP No
135 71.43 70.94 58.47 1993 NAP No
136 74.21 73.06 48.84 1972 and 1974 1990 to 1996 No
137 75.00 74.44 59.07 1950 Early 1990's No
138 70.82 70.64 62.62 1985 and 1986 1993 No
- -----------------------------------------------------------------------------------------------------------------------------------
139 72.81 72.65 63.43 1982 UAV Yes
140 75.00 74.80 65.99 1987 1990 No
141 62.96 62.54 0.00 1973 1997 No
142 67.10 66.77 58.80 1985 1997 Yes
143 73.64 73.49 0.00 1981,1989, 1997 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
144 78.25 77.57 61.23 1979 1997 No
145 62.14 62.06 49.91 1979 UAV No
146 71.90 70.69 0.00 1987/1988 1996 No
147 82.31 81.78 0.00 1953 1998 No
148 73.10 72.68 60.17 1984 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
149 77.00 76.68 62.50 No
149a 1989 NAP
149b 1989 NAP
150 74.45 74.36 60.04 1964, 1976&1978 1992, 1996&1997 Yes
151 60.78 60.66 49.28 1969 1985, 1990 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
152 79.74 79.31 68.87 1991 NAP No
153 79.49 79.15 69.70 1991 NAP Yes
154 78.97 78.62 72.62 1996 NAP No
155 72.89 72.58 63.70 1938 UAV No
156 48.39 48.39 41.23 1965, 1972, 1978 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
157 75.47 75.41 62.48 1989 NAP No
158 72.29 72.10 63.88 1983 1996 No
159 69.77 69.54 61.28 1981 1996 No
160 74.81 74.49 60.56 1975-1979 1997 No
161 58.82 58.52 0.00 1972 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
162 74.07 73.66 61.29 1974 1995/1996/1997 Yes
163 62.19 62.11 55.37 1955 1995-96 No
164 75.06 74.87 66.41 1978/1984 1990 No
165 76.55 76.41 0.00 1985 1997 Yes
166 73.75 73.34 63.61 1986 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
167 80.00 79.79 70.42 1986 NAP Yes
168 66.90 66.43 54.58 1987 1997 No
169 71.52 71.01 0.00 1997 NAP No
170 53.33 53.27 43.25 1995, 1997 NAP No
171 73.32 73.23 58.92 1986 1996-1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
172 75.68 74.26 0.00 1965, 1968 1994-96 No
173 66.67 66.49 59.69 No
173a 1993 NAP
173b 1995 NAP
173c 1997 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
173d 1997 NAP
173e 1997 NAP
173f 1994 NAP
174 80.00 79.93 69.45 1968 1997 Yes
175 75.00 74.86 0.00 1973 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
176 75.00 74.70 69.52 1986 1995 No
177 79.58 78.66 64.53 1996-97 NAP No
178 80.00 79.89 61.33 1980 NAP No
179 73.82 73.50 59.65 1977,1978 and 1980 1996 No
180 65.63 65.40 0.00 1964,1978,1983 1994 - 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
181 74.29 73.90 57.59 1990-1993-1994 1997 No
182 73.86 73.44 63.56 1991 - 1996 UAV No
183 50.40 50.30 41.41 1968 1996 No
184 82.78 82.72 72.80 1896 1997 No
185 73.53 73.15 0.00 1996 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
186 69.64 69.06 57.30 No
186a 1984 NAP
186b 1993 UAV
186c 1989 & 1993 UAV
187 72.35 72.30 63.68 1974 1993 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
188 74.81 74.67 0.00 1982-85-92 1995 No
189 65.45 65.28 58.60 No
189a 1993 NAP
189b 1994 NAP
189c 1995 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
189d 1996 NAP
189e 1994 NAP
190 80.00 79.93 69.45 1974 1996 Yes
191 69.16 68.54 47.13 No
191a 1959 1972-1973
- -----------------------------------------------------------------------------------------------------------------------------------
191b 1960, 1962 & 1978 1995
192 65.40 64.75 51.65 1960 to 1990 UAV No
193 72.27 71.97 63.31 No
193a 1997 NAP
193b 1996 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
194 72.12 71.76 58.82 1972 & 1984 UAV No
195 74.92 74.67 65.84 1986 NAP No
196 71.88 71.79 57.80 cira 1970, 1984 UAV No
197 82.14 82.03 72.03 1997 N/A Not Applicable
198 71.88 71.62 56.88 1989-1990 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
199 76.67 76.33 66.98 1970 1996/1997 No
200 59.74 59.41 48.01 Early 1960s 1995 and 1997 No
201 67.65 67.16 53.61 1923 1988 No
202 77.12 76.97 67.95 1970 1996 No
203 77.08 76.79 68.34 1986/1991 No
- -----------------------------------------------------------------------------------------------------------------------------------
204 69.23 68.84 59.56 1988 1993 No
205 70.18 69.95 56.68 No
205a 1993 NAP
205b 1997 NAP
205c 1974 1997
- -----------------------------------------------------------------------------------------------------------------------------------
205d 1973 1996
206 84.62 84.24 73.71 1983 and 1986 NAP No
207 70.97 70.65 63.79 1989 1997 No
208 75.00 74.69 65.84 1967 1996 Yes
209 78.61 78.28 68.92 1970's & 1996 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
210 74.72 74.58 51.25 1989/1990 NAP No
211 71.17 70.89 58.57 1931 1993 Yes
212 77.78 77.68 62.62 1991 NAP Yes
213 72.41 72.28 0.00 1989 1997 No
214 67.74 67.58 52.75 1971 1995-96 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
215 75.00 74.70 64.72 1970 1997 No
216 66.25 65.70 46.34 No
216a 1995 NA
216b 1996 NA
216c 1995 NAP
- -----------------------------------------------------------------------------------------------------------------------------------
217 61.63 61.33 50.50 1975 1992 No
218 76.85 76.63 62.84 1996 NAP Yes
219 85.00 84.84 74.70 1984 NAP No
220 64.52 64.46 56.49 1969 1995 No
221 70.18 70.05 0.00 1996 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
222 68.97 68.84 0.00 1966 1996 No
223 69.69 69.42 57.29 1979 1985-86,1996-97 Yes
224 59.70 59.38 40.83 1983/1996 NAP No
225 68.28 68.05 58.17 1955 late 1980's Not Applicable
226 75.47 74.35 51.77 1990 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
227 73.41 73.23 65.08 1997 NAP No
228 41.41 40.38 0.00 1958,1964,1968,1972 1995/96 No
229 65.00 64.93 52.95 1973 1996-1997 No
230 68.93 68.93 55.39 1982 UAV Yes
231 80.00 79.89 70.35 1986 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
232 84.27 84.10 0.00 1998 NAP Yes
233 79.57 79.39 69.01 1997 NAP No
234 74.95 74.57 0.00 1983 1997 No
235 97.72 96.91 0.00 1997 NAP Yes
236 75.31 75.26 66.59 1984 1993 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
237 74.53 74.48 65.29 1988 1997 Yes
238 78.26 78.15 68.14 1963-1965 1995-1996 No
239 85.71 85.54 75.13 1970 1995 No
240 70.59 70.23 0.00 1995 NAP No
241 98.12 97.08 0.00 1996/1997 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
242 73.44 73.25 61.22 1987 1995 No
243 76.52 76.20 67.00 1981 to 1983 NAP No
244 74.47 74.37 59.40 1986 NAP No
245 76.09 75.77 66.72 1989 NAP Yes
246 73.91 73.70 60.61 1994 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
247 73.91 73.58 59.47 1988 UAV No
248 72.34 71.98 0.00 1993 NAP No
249 69.39 69.03 0.00 1995 NAP No
250 59.30 59.18 52.10 1975 1996 No
251 59.40 59.19 0.00 1978 1996-97 No
- -----------------------------------------------------------------------------------------------------------------------------------
252 80.00 78.91 0.00 1995 - 1996 NAP No
253 68.75 68.40 0.00 1996 NAP No
254 75.00 74.38 46.57 1995 1996 No
255 73.33 72.72 0.00 1985 1998 No
256 72.87 72.61 0.00 1966 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
257 73.36 72.82 49.68 1960's UAV No
258 74.77 74.61 60.56 1986 UAV No
259 74.77 74.48 64.63 1989 NAP No
260 72.73 72.44 59.74 1990 NAP No
261 71.11 70.80 62.13 1984 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
262 80.88 80.41 0.00 1998 NAP Yes
263 77.50 77.40 68.58 1995-96 NAP No
264 70.62 70.16 0.00 1996 NAP No
265 72.26 71.69 57.97 1974 1997 No
266 63.96 63.88 51.86 1975 1995 No
- -----------------------------------------------------------------------------------------------------------------------------------
267 71.43 71.29 62.76 1984 NAP No
268 75.38 75.08 65.01 1975/1979 NAP No
269 47.62 47.40 33.44 1965, 1972, 1980 1987 Yes
270 71.43 71.06 57.94 1928 & 1995 See Comments No
271 73.17 72.61 58.93 1988-1990 UAV No
- -----------------------------------------------------------------------------------------------------------------------------------
272 88.24 86.77 0.00 1997-1998 NAP Not Applicable
273 75.00 73.74 50.84 1980 1997 Not Applicable
274 68.13 68.08 59.92 1997 NAP Yes
275 74.87 74.65 60.89 1972 1997 No
276 73.02 72.72 59.55 1965 1986 & 1988 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
277 75.00 74.63 0.00 1968, 1974, 1982 1996 Not Applicable
278 74.87 74.61 0.00 1992 NAP No
279 74.36 73.98 0.00 1996 NAP No
280 72.00 71.38 56.86 1990 NAP No
281 71.79 71.71 57.68 1983 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
282 73.68 73.58 64.73 1923 1985 No
283 45.90 45.76 0.00 1994 N/A No
284 46.67 46.50 0.00 1977 - 1978 1991, 1994 No
285 54.80 54.63 44.22 1960 1995 No
286 80.00 79.72 63.74 1984 1997 No
- -----------------------------------------------------------------------------------------------------------------------------------
287 75.00 74.90 66.32 1998 NAP Yes
288 72.97 72.83 59.65 1991 1997 No
289 64.29 64.11 52.83 1996 NAP Yes
290 67.50 67.07 0.00 1994 NAP No
291 80.48 80.14 70.52 1996 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
292 73.61 73.33 65.18 1932 UAV Yes
293 79.82 79.48 69.94 1990 NAP Yes
294 64.39 64.31 56.78 1981 1997 Yes
295 67.53 67.41 0.00 1988 1997 No
296 74.85 74.53 60.55 1978 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
297 75.00 74.74 0.00 1995 NAP No
298 62.34 61.99 0.00 1998 NAP No
299 75.00 74.39 59.74 1983, 1984 NAP No
300 59.26 58.30 0.00 1997 NAP No
301 49.17 48.70 0.00 1998 NAP Yes
- -----------------------------------------------------------------------------------------------------------------------------------
302 60.53 60.46 49.09 1980 1993 No
303 73.87 73.87 59.36 1973 UAV Yes
304 70.97 70.87 62.52 1970 UAV Not Applicable
305 60.27 60.19 46.21 1984 1997 No
306 64.71 64.56 52.12 1986 & 1991 1988 No
- -----------------------------------------------------------------------------------------------------------------------------------
307 86.50 86.34 76.14 1984 1994 Not Applicable
308 61.76 61.61 54.61 1978-1985 NAP No
309 73.17 72.86 64.16 1990 NAP Yes
310 74.63 74.31 65.44 1989 NAP Yes
311 75.47 75.09 0.00 1989 NAP No
- -----------------------------------------------------------------------------------------------------------------------------------
312 80.00 79.94 70.41 1995 NAP Yes
313 69.77 69.67 53.61 1985 UAV No
314 62.04 61.75 49.31 1954,1968,1970 UAV No
315 57.14 57.01 47.94 1974 1994 - 1997 No
316 69.57 69.31 0.00 1971 1997 Yes
- -----------------------------------------------------------------------------------------------------------------------------------
317 79.66 79.25 68.24 1955 UAV No
318 69.44 69.09 56.50 1893 1990, 1995-1996 Yes
319 62.44 62.44 50.17 1975 UAV Yes
320 79.83 79.43 68.39 1979 1996 No
321 67.88 67.88 54.54 1980 UAV Yes
- -----------------------------------------------------------------------------------------------------------------------------------
322 72.92 72.79 64.59 1990 NAP No
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL SF/ SF/ LOAN BALANCE OCCUPANCY
CONTROL LOCKBOX UNITS/ROOMS/ UNITS/ROOMS/ PER SF/UNIT/ OCCUPANCY AS OF
NUMBER TYPE BEDS/SPACES BEDS/SPACES ROOM/BED/SPACE PERCENT DATE
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 In Place 7,183,998 Sq Ft $21
1a 114,222 Sq Ft
1b 336,000 Sq Ft
1c 218,316 Sq Ft
1d 407,217 Sq Ft
- -----------------------------------------------------------------------------------------------------------
1e 194,000 Sq Ft
1f 358,400 Sq Ft
1g 232,500 Sq Ft
1h 106,219 Sq Ft
1i 717,077 Sq Ft
- -----------------------------------------------------------------------------------------------------------
1j 155,811 Sq Ft
1k 168,000 Sq Ft
1l 147,600 Sq Ft
1m 42,143 Sq Ft
1n 196,626 Sq Ft
- -----------------------------------------------------------------------------------------------------------
1o 302,400 Sq Ft
1p 364,000 Sq Ft
1q 806,400 Sq Ft
1r 384,400 Sq Ft
1s 13,951 Sq Ft
- -----------------------------------------------------------------------------------------------------------
1t 251,172 Sq Ft
1u 124,242 Sq Ft
1v 157,966 Sq Ft
1w 498,400 Sq Ft
1x 135,116 Sq Ft
- -----------------------------------------------------------------------------------------------------------
1y 108,400 Sq Ft
1z 140,000 Sq Ft
1aa 40,000 Sq Ft
1bb 185,980 Sq Ft
1cc 277,440 Sq Ft
- -----------------------------------------------------------------------------------------------------------
2 Not Applicable 2,961 Units 36862
2a 418 Units 97 8/28/98
2b 137 Units 97 9/1/98
2c 92 Units 99 8/29/98
2d 144 Units 96 8/28/98
- -----------------------------------------------------------------------------------------------------------
2e 105 Units 92 8/27/98
2f 180 Units 94 8/28/98
2g 278 Units 91 8/31/98
2h 168 Units 99 8/28/98
2i 284 Units 99 8/27/98
- -----------------------------------------------------------------------------------------------------------
2j 246 Units 97 8/31/98
2k 120 Units 97 9/2/98
2l 126 Units 95 8/31/98
2m 303 Units 98 8/31/98
2n 220 Units 96 9/1/98
- -----------------------------------------------------------------------------------------------------------
2o 140 Units 88 8/27/98
3 In Place 834,720 Sq Ft 125
3a 98,175 Sq Ft 100 5/29/98
3b 129,822 Sq Ft 100 6/1/98
3c 136,154 Sq Ft 100 6/1/98
- -----------------------------------------------------------------------------------------------------------
3d 131,534 Sq Ft 100 6/1/98
3e 60,418 Sq Ft 100 6/1/98
3f 96,004 Sq Ft 100 6/3/98
3g 98,261 Sq Ft 100 6/1/98
3h 84,352 Sq Ft 100 6/1/98
- -----------------------------------------------------------------------------------------------------------
4 Springing 728,668 Sq Ft 120
4a 476,582 Sq Ft 100 4/1/98
4b 252,086 Sq Ft 92 4/1/98
5 In Place 415 Rooms 113253 72
6 Not Applicable 624,374 Sq Ft 53 95 6/30/98
- -----------------------------------------------------------------------------------------------------------
7 In Place 241,026 Sq Ft 106 91 7/14/98
87,190 Sq Ft
8 Not Applicable 21,000 Sq Ft 472 100 4/30/98
9 Not Applicable 16,168 Sq Ft 361 100 2/16/98
10 Not Applicable 26,507 Sq Ft 146 93 4/30/98
- -----------------------------------------------------------------------------------------------------------
11 Not Applicable 13 Units 250773 100 12/17/97
12 Not Applicable 15,065 Sq Ft 169 100 4/30/98
13 Springing 287 Rooms 85182 75 5/1/98
80,040 Sq Ft
14 Not Applicable 27,310 Sq Ft 250 100 4/30/98
- -----------------------------------------------------------------------------------------------------------
15 Not Applicable 17,280 Sq Ft 359 100 4/30/98
16 Not Applicable 12,850 Sq Ft 350 100 4/30/98
17 Not Applicable 15,500 Sq Ft 209 100 4/30/98
18 Not Applicable 7,100 Sq Ft 236 100 4/30/98
19 Not Applicable 364 Rooms 59828 65 7/11/98
- -----------------------------------------------------------------------------------------------------------
20 Not Applicable 312,896 Sq Ft 69 86 7/31/98
21 Springing 175 Beds 121761 78 4/9/98
22 In Place 206 Beds 101622 82 2/19/98
23 Not Applicable 2,001,430 Sq Ft 10 95 12/12/97
24 Not Applicable 208,564 Sq Ft 90 95 12/31/97
- -----------------------------------------------------------------------------------------------------------
25 Springing 211,089 Sq Ft 83 100 4/15/98
26 Not Applicable 186 Units 93438 0
26a 54 Units 96 5/6/98
26b 26 Units 82 5/6/98
26c 53 Units 96 5/7/98
- -----------------------------------------------------------------------------------------------------------
26d 53 Units 87 5/6/98
27 Springing Sq Ft
28 Not Applicable 27,500 Sq Ft 527 100 7/1/98
29 Springing 175,235 Sq Ft 81 99 5/26/98
30 In Place 146 Rooms 92253 68 4/30/98
- -----------------------------------------------------------------------------------------------------------
31 Not Applicable 289 Rooms 45973 66 7/23/98
32 Not Applicable 184 Rooms 70413 80 4/3/98
33 Not Applicable 296,735 Sq Ft 43 90 5/6/98
34 In Place 165 Rooms 75600 70 12/31/97
35 Springing 287,004 Sq Ft 43 100 4/3/98
- -----------------------------------------------------------------------------------------------------------
36 Not Applicable 296,080 Sq Ft 42
36a 113,280 Sq Ft 100 3/4/98
36b 92,750 Sq Ft 100 3/4/98
36c 90,050 Sq Ft 100 3/4/98
37 Springing 170 Units 69641 96 8/28/98
- -----------------------------------------------------------------------------------------------------------
38 Not Applicable 431,250 Sq Ft 26 100 6/24/98
39 Springing 49,303 Sq Ft 217 100 6/29/98
40 Springing 246,405 Sq Ft 43
40a 140,503 Sq Ft 91 5/21/98
40b 105,902 Sq Ft 95 5/21/98
- -----------------------------------------------------------------------------------------------------------
41 Not Applicable 251,674 Sq Ft 40 96 4/27/98
42 Springing 88 Beds 115115 90 6/26/98
43 Springing 181 Rooms 55951 74 5/1/98
44 Not Applicable 216 Units 46459 97 7/21/98
45 Not Applicable 342 Units 28527 93 3/25/98
- -----------------------------------------------------------------------------------------------------------
46 Springing 178,285 Sq Ft 53 94 3/1/98
47 Springing 150 Beds 62513 75 7/31/98
48 Springing 160 Units 58566 94 4/30/98
49 Springing 175,396 Sq Ft 53 100 12/15/97
50 Not Applicable 67,735 Sq Ft 130 100 6/1/98
- -----------------------------------------------------------------------------------------------------------
51 Springing 384 Units 22741 99 6/22/98
52 Not Applicable 107,091 Sq Ft 81 95 7/27/98
53 Not Applicable 143,791 Sq Ft 57 88 7/15/98
54 Not Applicable 132 Rooms 61170 85 3/1/98
55 Springing 120,161 Sq Ft 67 100 1/1/98
- -----------------------------------------------------------------------------------------------------------
56 Not Applicable 105,720 Sq Ft 75 99 4/30/98
57 Not Applicable 82,471 Sq Ft 93 91 4/3/98
58 Not Applicable 194 Rooms 39027 64 12/31/97
59 Not Applicable 364 Rooms 20770
59a 60 Rooms 69 12/31/97
- -----------------------------------------------------------------------------------------------------------
59b 48 Rooms 63 5/31/98
59c 102 Rooms 60 12/31/97
59d 48 Rooms 83 12/31/97
59e 53 Rooms 90 12/31/97
59f 53 Rooms 75 12/31/97
- -----------------------------------------------------------------------------------------------------------
60 Springing 141,407 Sq Ft 52 94 5/1/98
61 Not Applicable 100 Beds 69720 96 5/27/98
62 In Place 614 Pads 11037
62a 113 Pads 100 2/28/98
62b 388 Pads 92 2/28/98
- -----------------------------------------------------------------------------------------------------------
62c 113 Pads 94 2/28/98
63 Springing 116,120 Sq Ft 57 98 8/1/98
64 Not Applicable 59,585 Sq Ft 109 100 8/1/98
65 Springing 52,100 Sq Ft 124 89 5/1/98
66 Springing 129,757 Sq Ft 50 100 3/24/98
- -----------------------------------------------------------------------------------------------------------
67 Not Applicable 51,977 Sq Ft 124 87 3/31/98
68 Not Applicable 438,715 Sq Ft 14 100 2/24/98
69 Not Applicable 124 Rooms 46822 79 12/31/97
70 Not Applicable 46,913 Sq Ft 122 90 4/21/98
71 Springing 62,742 Sq Ft 89 94 12/16/97
- -----------------------------------------------------------------------------------------------------------
72 Not Applicable 170,252 Sq Ft 32
72a 65,490 Sq Ft 100 6/30/98
72b 54,100 Sq Ft 97 6/30/98
72c 50,662 Sq Ft 100 6/30/98
73 Not Applicable 348 Units 15721 87 5/31/98
- -----------------------------------------------------------------------------------------------------------
74 Not Applicable 73,498 Sq Ft 74 96 7/17/98
75 Not Applicable 194 Rooms 27806 74 7/11/98
76 Not Applicable 121 Rooms 44441 70 12/31/97
77 Not Applicable 156,585 Sq Ft 34 100 2/5/98
78 Not Applicable 59,144 Sq Ft 90 86 5/13/98
- -----------------------------------------------------------------------------------------------------------
79 Not Applicable 36,843 Sq Ft 144 100 8/14/98
80 Springing 50,570 Sq Ft 104 95 5/19/98
81 Springing 81 Units 63724 100 2/18/98
82 Springing 62,845 Sq Ft 81 100 6/1/98
83 In Place 137 Units 36396 93 2/1/98
- -----------------------------------------------------------------------------------------------------------
84 Not Applicable 89,531 Sq Ft 56 96 3/31/98
85 Not Applicable 42,704 Sq Ft 117 94 1/31/98
86 Springing 112,434 Sq Ft 44 100 7/15/98
87 Not Applicable 77,425 Sq Ft 63 92 6/8/98
88 Springing 175,465 Sq Ft 28 100 7/31/98
- -----------------------------------------------------------------------------------------------------------
89 Not Applicable 135 Units 35455 95 5/20/98
90 Not Applicable 304 Units 15527 91 1/13/98
91 Not Applicable 155 Units 29629 92 7/6/98
92 Not Applicable 63,450 Sq Ft 72 85 3/31/98
93 Not Applicable 292 Units 15550 93 3/1/98
- -----------------------------------------------------------------------------------------------------------
94 Springing 40,173 Sq Ft 112 100 6/1/98
95 Springing 201 Units 22356
95a 92 Units 0 98 6/25/98
95b 109 Units 0 100 4/29/98
96 Springing 120,198 Sq Ft 37 99 1/1/98
- -----------------------------------------------------------------------------------------------------------
97 Not Applicable 70,100 Sq Ft 64 100 5/8/98
98 Not Applicable 147,040 Sq Ft 31 100 6/16/98
99 Not Applicable 127,860 Sq Ft 35 91 1/28/98
100 Not Applicable 820 Spaces 5407 100 2/5/98
101 Springing 49,690 Sq Ft 88 100 7/23/98
- -----------------------------------------------------------------------------------------------------------
102 Not Applicable 126 Rooms 34762 71 12/31/97
103 Not Applicable 65,349 Sq Ft 67
103a 6,777 Sq Ft 100 3/24/98
103b 6,890 Sq Ft 100 3/24/98
103c 5,936 Sq Ft 100 3/24/98
- -----------------------------------------------------------------------------------------------------------
103d 6,730 Sq Ft 100 3/24/98
103e 8,490 Sq Ft 100 3/24/98
103f 6,590 Sq Ft 100 3/24/98
103g 8,358 Sq Ft 100 3/24/98
103h 6,600 Sq Ft 100 3/24/98
- -----------------------------------------------------------------------------------------------------------
103i 8,978 Sq Ft 100 3/24/98
104 Springing 454 Pads 9582 93 8/31/98
105 Not Applicable 160,545 Sq Ft 27 99 1/1/98
106 Not Applicable 69,262 Sq Ft 62
106a 24,400 Sq Ft 39 4/21/98
- -----------------------------------------------------------------------------------------------------------
106b 7,396 Sq Ft 80 4/21/98
106c 13,533 Sq Ft 100 4/21/98
106d 18,325 Sq Ft 84 4/21/98
106e 5,608 Sq Ft 100 4/21/98
107 In Place 169,510 Sq Ft 25 100 8/7/98
- -----------------------------------------------------------------------------------------------------------
108 Springing 53,980 Sq Ft 78 100 6/26/98
109 Not Applicable 34,985 Sq Ft 118 97 2/4/98
110 Not Applicable 44 Units 92045 95 8/31/98
111 Not Applicable 94,059 Sq Ft 42 91 6/3/98
112 Not Applicable 108 Units 36957 98 6/2/98
- -----------------------------------------------------------------------------------------------------------
113 Not Applicable 120 Units 33239 97 4/30/98
114 Springing 104 Units 37974 99 5/1/98
115 Not Applicable 100 Units 39440 6/1/98
116 Not Applicable 106 Units 36137 99 4/21/98
117 Not Applicable 162 Rooms 23565
- -----------------------------------------------------------------------------------------------------------
117a 73 Rooms 59 12/31/97
117b 89 Rooms 87 12/31/97
118 Not Applicable 24,812 Sq Ft 152 100 5/11/98
119 Springing 149 Units 25148 92 6/30/98
120 Not Applicable 109 Rooms 34333 72 4/30/98
- -----------------------------------------------------------------------------------------------------------
121 Not Applicable 86,479 Sq Ft 43 100 12/29/97
122 Not Applicable 87,472 Sq Ft 42 100 7/23/98
123 Springing 43,351 Sq Ft 85 97 7/7/98
124 Not Applicable 109 Rooms 33875 67 4/29/98
125 Not Applicable 58,056 Sq Ft 63 78 12/24/97
- -----------------------------------------------------------------------------------------------------------
126 Not Applicable 79 Rooms 46355 70 4/2/98
127 Not Applicable 117 Rooms 31054 74 5/31/98
128 Not Applicable 110,370 Sq Ft 33 100 1/1/98
129 Springing 77,847 Sq Ft 46
129a 47,796 Sq Ft 100 8/26/98
- -----------------------------------------------------------------------------------------------------------
129b 30,051 Sq Ft 100 8/26/98
130 Springing 67,171 Sq Ft 53 98 1/14/98
131 Not Applicable 150 Units 23788 97 2/9/98
132 Not Applicable 132 Rooms 26488 62 7/11/98
133 Not Applicable 50 Units 69659 92 3/1/98
- -----------------------------------------------------------------------------------------------------------
134 Not Applicable 47,794 Sq Ft 73 100 11/20/97
135 Not Applicable 94,841 Sq Ft 37 100 2/13/98
136 Not Applicable 300 Units 11568 97 4/30/97
137 Not Applicable 51,390 Sq Ft 67 80 3/18/98
138 Not Applicable 118,921 Sq Ft 29 96 4/2/98
- -----------------------------------------------------------------------------------------------------------
139 In Place 57,975 Sq Ft 59 100 4/20/98
140 Not Applicable 18,000 Sq Ft 191 100 4/24/98
141 Not Applicable 104 Rooms 32471 62 2/28/98
142 Springing 32,000 Sq Ft 105 100 1/1/98
143 Springing 30,486 Sq Ft 106 100 8/27/98
- -----------------------------------------------------------------------------------------------------------
144 Not Applicable 77,480 Sq Ft 42 98 7/1/98
145 Not Applicable 136,204 Sq Ft 23 100 5/12/98
146 Not Applicable 74,340 Sq Ft 43 97 12/10/97
147 Not Applicable 28,160 Sq Ft 113 100
148 Not Applicable 110 Rooms 28741 76 1/13/98
- -----------------------------------------------------------------------------------------------------------
149 Not Applicable 53,229 Sq Ft 59
149a 32,357 Sq Ft 89 4/30/98
149b 20,872 Sq Ft 100 4/30/98
150 Springing 168 Rooms 18591 48 7/2/98
151 In Place 107 Rooms 28911 64 12/31/97
- -----------------------------------------------------------------------------------------------------------
152 Not Applicable 94,479 Sq Ft 33 100 8/12/97
153 Springing 105 Units 29400 100 4/28/98
154 Not Applicable 31,308 Sq Ft 98 94 2/25/98
155 Not Applicable 6,528 Sq Ft 461 100 2/27/98
156 Not Applicable 370 Pads 8108 100 8/5/98
- -----------------------------------------------------------------------------------------------------------
157 Not Applicable 24 Units 124893 100 7/14/98
158 Not Applicable 50,400 Sq Ft 59 100 4/3/98
159 Not Applicable 128 Units 23360 94 4/14/98
160 Not Applicable 110,000 Sq Ft 27 100 5/14/98
161 Not Applicable 150 Rooms 19897 61 12/31/97
- -----------------------------------------------------------------------------------------------------------
162 Springing 103 Rooms 28963 74 10/31/97
163 Not Applicable 104 Units 28668 91 6/30/98
164 Not Applicable 44,872 Sq Ft 66 83 3/10/98
165 Springing 100 Units 29394 94 7/31/98
166 Not Applicable 49,871 Sq Ft 59 98 1/12/98
- -----------------------------------------------------------------------------------------------------------
167 Springing 54,381 Sq Ft 53 100 2/1/98
168 Not Applicable 82 Rooms 34509 80 11/30/97
169 Not Applicable 62 Rooms 45243 68 4/1/98
170 Not Applicable 95,922 Sq Ft 29 58 7/14/98
171 Not Applicable 60 Rooms 46610 74 3/31/98
- -----------------------------------------------------------------------------------------------------------
172 Not Applicable 322 Units 8533 94 1/22/97
173 Not Applicable 46,075 Sq Ft 60
173a 8,075 Sq Ft 100 5/5/98
173b 7,000 Sq Ft 100 5/5/98
173c 7,000 Sq Ft 100 5/5/98
- -----------------------------------------------------------------------------------------------------------
173d 7,000 Sq Ft 100 5/5/98
173e 7,000 Sq Ft 100 5/5/98
173f 10,000 Sq Ft 100 5/5/98
174 Springing 103 Units 26385 96 6/18/98
175 Not Applicable 112 Rooms 24063 60 6/4/98
- -----------------------------------------------------------------------------------------------------------
176 Not Applicable 41,500 Sq Ft 65 100 1/20/98
177 Not Applicable 143,791 Sq Ft 19 88 7/15/98
178 Not Applicable 120 Units 22135 99 6/30/98
179 Not Applicable 59,580 Sq Ft 44 100 4/23/98
180 Not Applicable 161 Rooms 16248 50 12/31/97
- -----------------------------------------------------------------------------------------------------------
181 Not Applicable 40,050 Sq Ft 65 92 5/7/98
182 Not Applicable 34,962 Sq Ft 74 91 2/18/98
183 Not Applicable 92 Beds 27338 84 5/20/98
184 Not Applicable 50,286 Sq Ft 50 97 7/14/98
185 Not Applicable 63 Rooms 39480 77 12/31/97
- -----------------------------------------------------------------------------------------------------------
186 Not Applicable 52,635 Sq Ft 47
186a 37,135 Sq Ft 100 1/16/98
186b 6,600 Sq Ft 100 1/16/98
186c 8,900 Sq Ft 100 1/16/98
187 Springing 63,692 Sq Ft 39 100 5/6/98
- -----------------------------------------------------------------------------------------------------------
188 Not Applicable 89 Rooms 27476 65 3/31/98
189 Not Applicable 40,150 Sq Ft 60
189a 8,075 Sq Ft 100 3/20/98
189b 10,000 Sq Ft 100 3/20/98
189c 7,000 Sq Ft 100 3/20/98
- -----------------------------------------------------------------------------------------------------------
189d 7,000 Sq Ft 100 3/20/98
189e 8,075 Sq Ft 100 3/20/98
190 Springing 92 Units 26065 98 6/21/98
191 Not Applicable 68 Rooms 34976
191a 24 Rooms 88 2/28/98
- -----------------------------------------------------------------------------------------------------------
191b 44 Rooms 59 12/31/97
192 Not Applicable 73,755 Sq Ft 32 100 1/8/98
193 Not Applicable 25,408 Sq Ft 93
193a 15,862 Sq Ft 100 3/12/98
193b 9,546 Sq Ft 100 3/12/98
- -----------------------------------------------------------------------------------------------------------
194 Not Applicable 103,205 Sq Ft 23 100 3/10/98
195 Not Applicable 41,694 Sq Ft 56 89 4/6/98
196 Not Applicable 64,077 Sq Ft 36 98 4/30/98
197 Not Applicable 20,692 Sq Ft 111 93 5/5/98
198 Not Applicable 41,200 Sq Ft 56 87 5/6/98
- -----------------------------------------------------------------------------------------------------------
199 Not Applicable 112 Units 20447 99 3/4/98
200 Not Applicable 101,174 Sq Ft 23 94 3/31/98
201 Not Applicable 44,166 Sq Ft 52 96 3/4/98
202 Not Applicable 167 Units 13597 95 6/1/98
203 Not Applicable 25,616 Sq Ft 88 95 3/4/98
- -----------------------------------------------------------------------------------------------------------
204 Not Applicable 47,266 Sq Ft 47 76 2/10/98
205 Not Applicable 43,918 Sq Ft 50
205a 2,060 Sq Ft 100 3/24/98
205b 25,860 Sq Ft 100 3/24/98
205c 9,998 Sq Ft 100 3/24/98
- -----------------------------------------------------------------------------------------------------------
205d 6,000 Sq Ft 100 3/24/98
206 Not Applicable 96 Units 22815 93 2/23/98
207 Not Applicable 39,377 Sq Ft 56 100 1/8/98
208 Springing 102,585 Sq Ft 21 100 5/20/98
209 Not Applicable 56 Units 38232 100 2/19/98
- -----------------------------------------------------------------------------------------------------------
210 Not Applicable 16,788 Sq Ft 127 100 8/3/98
211 Springing 17 Rooms 125105 80 5/1/98
212 In Place 23,023 Sq Ft 91 97 8/1/98
213 Not Applicable 81 Rooms 25877 74 6/10/98
214 Springing 101 Rooms 20742 50 6/2/98
- -----------------------------------------------------------------------------------------------------------
215 Not Applicable 37,847 Sq Ft 55 100 2/11/98
216 Not Applicable 26,800 Sq Ft 78
216a 8,900 Sq Ft 100 3/24/98
216b 9,000 Sq Ft 100 3/24/98
216c 8,900 Sq Ft 100 3/24/98
- -----------------------------------------------------------------------------------------------------------
217 Not Applicable 96,269 Sq Ft 22 100 4/16/98
218 Springing 60 Rooms 34483 64 12/31/97
219 Not Applicable 127 Units 16032 94 3/25/98
220 Not Applicable 88,000 Sq Ft 23 100 7/21/98
221 Not Applicable 61 Rooms 32727 73 4/16/98
- -----------------------------------------------------------------------------------------------------------
222 Not Applicable 102 Rooms 19572 56 5/13/98
223 Springing 100 Rooms 19923 67 8/1/97
224 Not Applicable 59,300 Sq Ft 34 100 6/1/98
225 Not Applicable 30,100 Sq Ft 66 100 5/7/98
226 Not Applicable 46,617 Sq Ft 42 91 12/31/97
- -----------------------------------------------------------------------------------------------------------
227 Not Applicable 24,142 Sq Ft 81 100 4/29/98
228 Not Applicable 195,000 Sq Ft 10 100 1/7/98
229 Not Applicable 105 Rooms 18551 52 6/1/98
230 Springing 43,089 Sq Ft 45 95 9/1/98
231 Not Applicable 21,100 Sq Ft 91 100 6/5/98
- -----------------------------------------------------------------------------------------------------------
232 In Place 10,908 Sq Ft 172 100 7/9/98
233 Not Applicable 6,258 Sq Ft 292 100 4/14/98
234 Not Applicable 100 Rooms 18157 52 2/24/98
235 In Place 11,282 Sq Ft 161 100 3/16/98
236 Springing 36,416 Sq Ft 49 100 6/18/98
- -----------------------------------------------------------------------------------------------------------
237 Springing 58,176 Sq Ft 31 100 6/10/98
238 Not Applicable 130 Units 13826 85 7/20/98
239 Not Applicable 116 Units 15486 93 5/18/98
240 Not Applicable 56 Rooms 31982 69 2/17/98
241 In Place 11,282 Sq Ft 156 100 3/2/98
- -----------------------------------------------------------------------------------------------------------
242 Not Applicable 112 Rooms 15697 60 12/31/97
243 Not Applicable 76 Units 23059 93 2/17/98
244 Not Applicable 35,272 Sq Ft 50 97 8/1/98
245 Springing 72 Units 24204 97 4/28/98
246 Not Applicable 67 Rooms 25301 56 4/16/98
- -----------------------------------------------------------------------------------------------------------
247 Not Applicable 85,899 Sq Ft 20 79 4/29/98
248 Not Applicable 55 Rooms 30755 66 2/17/98
249 Not Applicable 60 Rooms 28189 65 5/1/98
250 Not Applicable 78,517 Sq Ft 21 99 4/9/98
251 Not Applicable 132 Rooms 12646 45 4/10/98
- -----------------------------------------------------------------------------------------------------------
252 Not Applicable 42 Units 39456 100 2/9/98
253 Not Applicable 51 Rooms 32187 58 2/17/98
254 Not Applicable 13,400 Sq Ft 122 89 12/22/97
255 Not Applicable 47 Rooms 34812 76 2/28/98
256 Springing 46,150 Sq Ft 35 100 7/8/98
- -----------------------------------------------------------------------------------------------------------
257 Not Applicable 60,000 Sq Ft 27 100 3/4/98
258 Not Applicable 32,545 Sq Ft 49 87 6/9/98
259 Not Applicable 29,325 Sq Ft 54 92 3/24/98
260 Not Applicable 44 Rooms 36222 79 3/20/98
261 Not Applicable 48,015 Sq Ft 33 100 3/31/98
- -----------------------------------------------------------------------------------------------------------
262 In Place 11,180 Sq Ft 140 100 6/3/98
263 Not Applicable 15,642 Sq Ft 99 98 7/28/98
264 Not Applicable 41 Rooms 37560 80 12/31/97
265 Not Applicable 135 Units 11391 92 1/23/98
266 Not Applicable 126 Rooms 12169 52 12/31/97
- -----------------------------------------------------------------------------------------------------------
267 Not Applicable 36,951 Sq Ft 41 100 6/25/98
268 Not Applicable 66 Units 22637 92 3/18/98
269 Springing 22,251 Sq Ft 67 100 4/21/98
270 Not Applicable 6,750 Sq Ft 221 100 3/23/98
271 Not Applicable 27,720 Sq Ft 54 100 1/23/98
- -----------------------------------------------------------------------------------------------------------
272 Not Applicable 10,125 Sq Ft 146 100 4/9/98
273 Not Applicable 30,000 Sq Ft 49 100 12/9/97
274 Springing 18,023 Sq Ft 82 100 7/1/98
275 Not Applicable 29,242 Sq Ft 50 100 6/1/98
276 Springing 59,002 Sq Ft 25 97 2/25/98
- -----------------------------------------------------------------------------------------------------------
277 Not Applicable 103 Rooms 14129 51 4/4/98
278 Not Applicable 51 Rooms 28528 65 4/16/98
279 Not Applicable 43 Rooms 33551 69 4/15/98
280 Not Applicable 18,153 Sq Ft 79 100 1/20/98
281 Not Applicable 25,093 Sq Ft 56 90 8/11/98
- -----------------------------------------------------------------------------------------------------------
282 Not Applicable 8,450 Sq Ft 165 100 6/1/98
283 Not Applicable 58 Rooms 24061 80 4/9/98
284 Not Applicable 22,635 Sq Ft 62 100 6/19/98
285 Not Applicable 64,004 Sq Ft 21 85 4/30/98
286 Not Applicable 23,880 Sq Ft 57 100 6/16/98
- -----------------------------------------------------------------------------------------------------------
287 Springing 13,684 Sq Ft 99 100 6/18/98
288 Not Applicable 48 Rooms 28069 70 4/23/98
289 Springing 18,384 Sq Ft 73 100 6/9/98
290 Not Applicable 48 Rooms 27946 50 3/19/98
291 Springing 38 Units 34800 97 3/1/98
- -----------------------------------------------------------------------------------------------------------
292 Springing 41 Units 32194 100 5/28/98
293 Springing 48 Units 27488 96 2/1/98
294 Springing 37,918 Sq Ft 35 100 5/13/98
295 Not Applicable 48 Rooms 27033 62 6/10/98
296 Not Applicable 27,487 Sq Ft 45 100 4/14/98
- -----------------------------------------------------------------------------------------------------------
297 Not Applicable 41 Rooms 29167 66 4/9/98
298 Not Applicable 10,125 Sq Ft 118 100 6/22/98
299 Not Applicable 27,044 Sq Ft 44 86 2/13/98
300 Not Applicable 52 Rooms 22704 87 2/28/98
301 In Place 23,600 Sq Ft 50 100 8/10/97
- -----------------------------------------------------------------------------------------------------------
302 Not Applicable 21,730 Sq Ft 53 100 8/10/98
303 Springing 65,260 Sq Ft 18 100 9/4/98
304 Not Applicable 20,203 Sq Ft 54 96 6/4/98
305 Not Applicable 106 Units 10362 96 6/30/98
306 Not Applicable 22,980 Sq Ft 48 100 6/22/98
- -----------------------------------------------------------------------------------------------------------
307 Not Applicable 48 Units 22125 94 6/1/98
308 Not Applicable 23,691 Sq Ft 44 100 4/30/98
309 Springing 48 Units 21783 96 4/28/98
310 Springing 39 Units 25534 100 4/28/98
311 Not Applicable 42 Rooms 23689 64 2/24/98
- -----------------------------------------------------------------------------------------------------------
312 Springing 24 Units 39969 96 7/31/98
313 Not Applicable 42 Units 21398 100 6/30/98
314 Not Applicable 20,672 Sq Ft 41 84 5/18/98
315 Not Applicable 122 Rooms 6542 38 4/21/98
316 Springing 23,752 Sq Ft 34 100 7/8/98
- -----------------------------------------------------------------------------------------------------------
317 Not Applicable 25 Units 27739 99 1/20/98
318 Springing 12 Units 51818 100 4/8/98
319 Springing 43,000 Sq Ft 14 100 9/4/98
320 Not Applicable 19 Units 30935 100 1/20/98
321 Springing 13,340 Sq Ft 42 89 9/1/98
- -----------------------------------------------------------------------------------------------------------
322 Not Applicable 3,600 Sq Ft 146 100 5/5/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LARGEST LARGEST LARGEST
CONTROL TENANT TENANT % OF TENANT 1996 1996
NUMBER LARGEST TENANT LEASED SF TOTAL NSF LEASE EXPIRATION NOI NCF
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 - - $ 54,291,075 $ 23,713,048
1a - - 812,033 833,622
1b - - 1,652,237 1,654,753
1c - - 577,705 581,901
1d - - 3,937,780 667,706
- --------------------------------------------------------------------------------------------------------------------------------
1e - - 1,948,372 1,958,143
1f - - 3,771,139 3,724,775
1g - - 2,860,177 2,879,810
1h - - 845,220 847,071
1i - - 1,971,378 (16,807,807)
- --------------------------------------------------------------------------------------------------------------------------------
1j - - 124,295 131,047
1k - - 3,152,860 3,153,055
1l - - 539,016 558,969
1m - - 81,501 81,750
1n - - 2,497,889 2,503,953
- --------------------------------------------------------------------------------------------------------------------------------
1o - - 4,300,248 4,321,142
1p - - 2,327,566 2,329,017
1q - - 239,931 240,239
1r - - 6,033,703 6,039,228
1s - - 301,019 301,019
- --------------------------------------------------------------------------------------------------------------------------------
1t - - 998,371 1,008,971
1u - - 1,002,631 1,033,812
1v - - 1,851,967 1,853,049
1w - - 3,717,465 3,771,361
1x - - 46,378 (8,664,622)
- --------------------------------------------------------------------------------------------------------------------------------
1y - - 1,134,434 1,134,434
1z - - 1,430,591 1,431,732
1aa - - 884,105 887,621
1bb - - 2,331,736 2,335,414
1cc - - 2,919,328 2,921,883
- --------------------------------------------------------------------------------------------------------------------------------
2 - - 12,550,628 9,929,580
2a - - 2,908,022 2,516,604
2b - - 461,027 354,453
2c - - 614,656 550,783
2d - - 502,162 396,015
- --------------------------------------------------------------------------------------------------------------------------------
2e - - 387,033 287,192
2f - - 658,153 421,963
2g - - 859,112 697,771
2h - - 830,885 696,396
2i - - 798,392 569,420
- --------------------------------------------------------------------------------------------------------------------------------
2j - - 1,339,923 1,089,234
2k - - 356,995 295,741
2l - - 571,799 443,029
2m - - 1,452,621 882,870
2n - - 436,221 354,482
- --------------------------------------------------------------------------------------------------------------------------------
2o - - 373,627 373,627
3 - - - -
3a - - - -
3b - - - -
3c - - - -
- --------------------------------------------------------------------------------------------------------------------------------
3d - - - -
3e - - - -
3f - - - -
3g - - - -
3h - - - -
- --------------------------------------------------------------------------------------------------------------------------------
4 - - 9,452,526 8,723,984
4a GSA 248,402 52.12 9/30/09 7,106,938 6,579,249
4b Birch & Davis 25,331 10.05 1/31/00 2,345,588 2,144,735
5 - - - -
6 Amoco Corp. 223,251 35.76 10/31/05 3,151,245 3,151,245
- --------------------------------------------------------------------------------------------------------------------------------
7 G.H. Bass 8,500 3.53 10/31/99 - -
2,668,400 2,647,153
8 No. 604 Fifth Avenue Rest. Inc 21,000 100.00 6/26/05 1,081,770 1,081,770
9 Beach Bum 86 St. Ltd. 2,950 18.25 12/2/02 470,829 461,097
10 Pearls Realty Corp. 5,000 18.86 12/31/01 453,365 443,166
- --------------------------------------------------------------------------------------------------------------------------------
11 802 Lexington Farms 1,600 12.31 2/28/03 347,457 346,141
12 147 K & S Restaurant, Inc. 6,910 45.87 6/30/02 314,979 314,979
13 - - 3,371,114 3,371,114
2,408,039 2,363,197
14 196 Broadway Restaurant Inc. 24,654 90.27 6/26/05 712,781 712,781
- --------------------------------------------------------------------------------------------------------------------------------
15 205 E. Food Corp. 10,580 61.23 5/31/01 681,931 658,747
16 677 Lex Operating Inc. 12,700 98.83 6/26/05 491,048 488,446
17 560 Operating Inc. 5,500 35.48 6/26/05 350,760 348,744
18 Far East Produce Inc. 7,100 100.00 6/30/04 171,519 154,479
19 - - 2,269,421 2,249,996
- --------------------------------------------------------------------------------------------------------------------------------
20 Carter's 14,992 4.79 12/31/00 1,784,373 1,784,373
21 - - 5,666,918 5,915,638
22 - - 3,403,408 3,404,371
23 General Motors - SPO Division 1,475,000 73.70 2/28/00 - -
24 Circuit City 32,958 15.80 1/1/07 1,923,358 1,923,358
- --------------------------------------------------------------------------------------------------------------------------------
25 Puerto Rico Home Mortgage 48,055 22.77 10/31/99 2,335,843 2,256,381
26 - - 1,926,685 1,926,685
26a - - 603,187 603,187
26b - - 13,720 13,720
26c - - 706,421 706,421
- --------------------------------------------------------------------------------------------------------------------------------
26d - - 603,357 603,357
27 - - 1,441,667 1,441,667
28 Taft Friday 50th St Oper LLC 14,096 51.26 8/31/16 1,858,944 1,858,944
29 HomeBase 103,929 59.31 3/31/11 1,529,049 1,529,049
30 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
31 - - 1,296,906 1,265,236
32 - - 2,432,082 2,432,082
33 Travelers Indemnity Svs. Ctr. 97,018 32.70 4/30/03 1,545,759 1,441,479
34 - - 1,387,552 1,387,552
35 K-Mart 137,037 47.75 8/30/20 1,566,091 1,566,091
- --------------------------------------------------------------------------------------------------------------------------------
36 - - 971,943 929,870
36a Cynosure 46,713 41.24 7/31/02 - -
36b Mitchell & Webb Catalog Ven. 45,000 48.52 5/31/99 - -
36c Sky Computers 30,250 33.59 5/31/99 - -
37 - - 1,176,816 1,092,518
- --------------------------------------------------------------------------------------------------------------------------------
38 Michael's Stores, Inc. 431,250 100.00 6/18/13 - -
39 Sharp Healthcare 49,303 100.00 10/31/11 - -
40 - - 997,563 878,111
40a Wal-Mart 65,930 46.92 1/31/09 - -
40b JC Penney 33,630 31.76 2/28/04 - -
- --------------------------------------------------------------------------------------------------------------------------------
41 Lamonts 48,768 19.38 3/1/03 1,644,972 1,632,511
42 - - 4,922,565 5,207,767
43 - - 1,424,009 1,424,009
44 - - 757,326 757,326
45 - - 1,112,297 1,009,938
- --------------------------------------------------------------------------------------------------------------------------------
46 Eagle Research 9,551 5.36 10/1/02 1,310,383 1,304,262
47 - - - -
48 - - 758,284 758,284
49 Kmart Corporation 169,896 96.86 8/28/19 - -
50 Michigan Heart PC (Test/Rehab) 16,191 23.90 3/20/09 1,031,432 1,031,432
- --------------------------------------------------------------------------------------------------------------------------------
51 - - 1,177,379 1,061,165
52 Eckenfelder,Inc. 34,004 31.75 12/31/00 794,703 770,798
53 Petsmart 26,627 18.52 1/31/13 - -
54 - - 1,077,397 1,077,397
55 Metropolitan Life Insurance 60,000 49.93 10/31/01 1,082,316 886,337
- --------------------------------------------------------------------------------------------------------------------------------
56 CDI Engineering 17,519 16.57 10/31/00 630,280 603,754
57 First Reserve 7,468 9.06 2/28/01 1,101,350 1,101,350
58 - - 1,445,047 1,445,047
59 - - 1,200,486 1,166,090
59a - - 311,706 298,940
- --------------------------------------------------------------------------------------------------------------------------------
59b - - 123,651 123,651
59c - - 207,681 193,731
59d - - 154,506 154,506
59e - - 246,954 246,954
59f - - 155,988 148,308
- --------------------------------------------------------------------------------------------------------------------------------
60 Malone & Hyde (Fleming Foods) 28,941 20.47 9/20/11 712,753 712,753
61 - - 45,676 45,676
62 - - 524,268 524,268
62a - - - -
62b - - - -
- --------------------------------------------------------------------------------------------------------------------------------
62c - - - -
63 ESpire 24,829 21.38 6/30/00 (33,122) (33,122)
64 Hanover Consumer Foodstore 35,231 59.13 6/30/17 - -
65 Melodee Music 5,800 11.13 2/28/00 818,744 776,944
66 IRS 79,976 61.64 12/17/05 - -
- --------------------------------------------------------------------------------------------------------------------------------
67 Guarantee Financial 6,125 11.78 3/31/05 841,206 841,206
68 - - 855,144 855,144
69 - - 843,814 843,814
70 Attorney Sack, Spector 4,934 10.52 6/30/98 733,126 733,126
71 Piggly Wiggly 33,218 52.94 9/1/17 - -
- --------------------------------------------------------------------------------------------------------------------------------
72 - - 612,948 612,948
72a - - 233,010 233,010
72b - - 207,991 207,991
72c - - 171,947 171,947
73 - - 471,430 419,230
- --------------------------------------------------------------------------------------------------------------------------------
74 Toyko Wako 6,600 8.98 5/31/11 709,588 674,126
75 - - 784,130 767,812
76 - - 857,844 737,586
77 Alford Refrig. Warehouses, Inc 156,585 100.00 2/5/13 - -
78 Edwin Watts Golf 6,735 11.39 10/31/01 776,500 776,500
- --------------------------------------------------------------------------------------------------------------------------------
79 Medlantic Healthcare Group, I. 7,311 19.84 1/31/07 545,855 545,855
80 Chevy's Mexican Restaurant 7,500 14.83 1/1/12 506,888 506,888
81 - - 434,360 434,360
82 Safeway Stores 22,500 35.80 11/30/01 640,454 617,531
83 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
84 Morganti Group, Inc. 24,850 27.76 3/31/99 556,795 524,656
85 CDI Dynamics, Inc. 4,739 11.10 12/31/00 630,899 630,899
86 Kmart 112,434 100.00 4/30/19 - -
87 Mar Val Market 25,200 32.55 1/31/09 570,956 570,956
88 K-Mart 83,550 47.62 5/30/06 1,106,855 1,017,832
- --------------------------------------------------------------------------------------------------------------------------------
89 - - 435,638 391,698
90 - - 447,840 379,051
91 - - 344,500 344,500
92 - - 517,638 517,638
93 - - 207,157 207,157
- --------------------------------------------------------------------------------------------------------------------------------
94 Concord Management 28,048 69.82 6/1/13 - -
95 - - 570,103 502,030
95a - - - -
95b - - - -
96 K-Mart (see Comments) 82,855 68.93 3/16/08 604,847 604,847
- --------------------------------------------------------------------------------------------------------------------------------
97 Boeing 38,067 54.30 7/31/07 556,590 548,428
98 England Press 16,095 10.95 6/30/00 276,744 110,977
99 Weyman Drug (Revco) 18,891 14.77 10/31/99 542,883 542,883
100 - - 566,912 566,912
101 Shoe Carnival 10,350 20.83 10/25/05 462,908 462,908
- --------------------------------------------------------------------------------------------------------------------------------
102 - - 641,860 641,860
103 - - 906,709 906,709
103a Bright Beginnings 6,777 100.00 - -
103b Bright Beginnings 6,890 100.00 3/31/10 - -
103c Bright Beginnings 5,936 100.00 - -
- --------------------------------------------------------------------------------------------------------------------------------
103d Bright Beginnings 6,730 100.00 - -
103e Bright Beginnings 8,490 100.00 3/31/10 - -
103f Bright Beginnings 6,590 100.00 - -
103g Bright Beginnings 8,358 100.00 3/31/10 - -
103h Bright Beginnings 6,600 100.00 - -
- --------------------------------------------------------------------------------------------------------------------------------
103i Bright Beginnings 8,978 100.00 3/31/10 - -
104 - - 438,650 438,650
105 Cleveland Works Daycare 10,736 6.69 5/31/03 750,069 750,069
106 - - 559,828 559,828
106a Block Trading 6,100 25.00 2/1/03 - -
- --------------------------------------------------------------------------------------------------------------------------------
106b McDonald's Corp. 1,595 21.57 8/31/01 - -
106c State of Conn. 4,417 32.64 9/30/99 - -
106d Crown Supermarket 10,350 56.48 10/31/05
106e Lloyds Fur Studio Inc. 2,038 36.34 2/28/04 - -
107 Oriental Accent, Inc. 169,510 100.00 9/30/12 - -
- --------------------------------------------------------------------------------------------------------------------------------
108 Goody's Family Clothing, Inc. 20,000 37.05 10/31/07 - -
109 Mr. Eddie 5,507 15.74 12/31/98 521,912 484,318
110 - - - -
111 Safeway 45,243 48.10 12/31/00 173,469 173,469
112 - - 636,106 636,106
- --------------------------------------------------------------------------------------------------------------------------------
113 - - 141,324 141,324
114 - - 403,386 403,386
115 Pluckers, Inc. 1,770 2.69 5/31/01 - -
116 - - - -
117 - - 664,193 664,193
- --------------------------------------------------------------------------------------------------------------------------------
117a - - - -
117b - - - -
118 Bond Drug 13,905 56.04 2/28/18 - -
119 - - 500,050 448,502
120 - - 744,340 693,841
- --------------------------------------------------------------------------------------------------------------------------------
121 K-Mart 86,479 100.00 11/30/13 486,250 486,250
122 Three Star Warehouse Intl. 10,187 11.65 10/31/98 389,914 381,972
123 Ol' Lodge Outfitters, Inc. 12,127 27.97 5/31/02 354,913 354,913
124 - - 686,531 640,065
125 County of Los Angeles 31,832 54.83 6/9/07 153,712 153,712
- --------------------------------------------------------------------------------------------------------------------------------
126 - - - -
127 - - 808,361 808,361
128 Leisure Arts 28,800 26.09 9/1/98 337,522 337,522
129 - - - -
129a Advanced Financial Systems 28,367 59.35 8/31/08 - -
- --------------------------------------------------------------------------------------------------------------------------------
129b Advanced Financial Ser., Inc. 24,051 80.03 8/31/08 - -
130 Atkinsons' Market 28,000 41.68 3/16/13 424,933 409,433
131 Shirley Court Pharmacy 1,000 1.24 12/31/98 492,982 491,949
132 - - 492,784 463,568
133 - - 443,449 443,449
- --------------------------------------------------------------------------------------------------------------------------------
134 Thrifty Drugs 9,996 20.91 5/31/07 516,613 516,613
135 K-Mart 94,841 100.00 11/30/18 481,783 481,783
136 - - 357,500 357,500
137 Quality Markets 41,910 81.55 7/31/08 380,450 380,450
138 K-Mart 86,459 72.70 11/30/10 588,570 588,570
- --------------------------------------------------------------------------------------------------------------------------------
139 Creative Learning 34,090 58.80 10/31/02 510,061 510,061
140 Van Dyke 5,420 30.11 4/30/00 444,583 444,583
141 - - 605,970 605,970
142 Gene/Networks, Inc. 32,000 100.00 12/31/02 - -
143 Palmbrook Inc. 4,000 13.12 8/31/03 295,907 293,850
- --------------------------------------------------------------------------------------------------------------------------------
144 Food Lion 36,076 46.56 9/30/16 300,439 219,729
145 K-Mart 68,337 50.17 11/30/19 578,760 578,760
146 Food Lion 31,864 42.86 9/30/17 356,106 356,106
147 U.S. Postal Service 22,810 81.00 2/28/13 333,735 333,735
148 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
149 - - 305,971 305,971
149a - - - -
149b Bode Technology 10,527 50.44 2/28/05 - -
150 - - 489,626 99,334
151 - - 515,537 515,537
- --------------------------------------------------------------------------------------------------------------------------------
152 K-Mart Corporation 86,479 91.53 4/30/16 376,300 376,300
153 - - 357,048 322,012
154 Moonlight Chinese Rest 3,900 12.46 11/30/01 11,141 11,141
155 Gymboree Store 1,630 24.97 1/31/09 356,930 356,930
156 - - 600,146 600,146
- --------------------------------------------------------------------------------------------------------------------------------
157 - - 302,961 302,961
158 Josephthal Lyon Ross 6,214 12.33 12/31/02 385,191 385,191
159 - - - -
160 Marson Creative Fasteners 110,000 100.00 7/31/03 - -
161 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
162 - - 530,502 474,516
163 - - 313,205 235,546
164 Goodwill Industries 13,000 28.97 5/31/08 406,344 406,344
165 - - 385,753 326,892
166 James R Hill 6,795 13.63 5/31/00 314,595 298,264
- --------------------------------------------------------------------------------------------------------------------------------
167 HIDTA - Prince George's County 27,073 49.78 2/28/00 293,984 293,984
168 - - 440,650 382,589
169 - - - -
170 - - 197,773 195,948
171 - - 548,094 548,094
- --------------------------------------------------------------------------------------------------------------------------------
172 - - 301,124 230,539
173 - - 194,202 194,202
173a 103 E. Ft. Williams St 8,075 100.00 12/31/03 - -
173b 1200 Highway 21 Bypass 7,000 100.00 4/30/05
173c 1031 Mineral Wells 7,000 100.00 6/30/06
- --------------------------------------------------------------------------------------------------------------------------------
173d Airways & Lerner 7,000 100.00 12/31/05
173e Broadway Street 7,000 100.00 12/31/07 - -
173f U.S. Hwy 280 Bypass 10,000 100.00 12/31/04 - -
174 - - 242,502 209,873
175 - - 410,254 410,254
- --------------------------------------------------------------------------------------------------------------------------------
176 California School Professional 41,500 100.00 6/30/06 174,300 174,300
177 PetsMart 26,627 18.52 1/31/13 - -
178 - - 234,181 234,181
179 Denver Fabrics/Cisco 26,162 43.91 12/31/06 76,319 76,319
180 - - 463,375 463,375
- --------------------------------------------------------------------------------------------------------------------------------
181 D'Arcangelo 4,106 10.25 10/31/98 337,974 311,026
182 General Services Adm. 5,752 16.45 1/31/06 355,456 355,456
183 - - 87,000 87,000
184 Milwaukee Ale House 9,459 18.81 10/16/02 - -
185 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
186 - - 391,854 391,854
186a Bright Start (Eubank) 22,298 60.05 3/31/10 - -
186b Bright Start (Santa Fe) 6,600 100.00 3/31/10
186c Bright Start (Homestead) 8,900 100.00 3/31/10 - -
187 Benchmark Adventures, Inc. 20,000 31.40 10/31/06 342,734 342,734
- --------------------------------------------------------------------------------------------------------------------------------
188 - - 200,102 200,102
189 - - 333,344 333,344
189a Advance Auto Parts - Anniston 8,075 100.00 12/31/03 - -
189b Advance Auto Parts - Opelika 10,000 100.00 12/31/04 - -
189c Advance Auto Parts-Albertville 7,000 100.00 12/31/04 - -
- --------------------------------------------------------------------------------------------------------------------------------
189d Advance Auto Parts-Birmingham 7,000 100.00 12/31/05 - -
189e Advance Auto Parts-Newan, GA 8,075 100.00 12/31/03 - -
190 - - 280,126 228,579
191 - - 397,442 397,442
191a - - - -
- --------------------------------------------------------------------------------------------------------------------------------
191b - - - -
192 Harris Moran Seed 21,080 28.58 10/31/03 328,025 328,025
193 - - - -
193a Veterans Administration 8,962 56.50 9/30/02 - -
193b Counseling Associates 2,500 26.19 5/31/01
- --------------------------------------------------------------------------------------------------------------------------------
194 Hills 90,000 87.21 1/31/03 394,947 394,947
195 ReMax Realty Unlimited 5,916 14.19 10/31/99 384,432 354,415
196 Earle's Moving and Storage Co. 23,000 35.89 5/31/99 315,494 315,494
197 Henry S. Miller Co. 5,357 25.89 2/28/02 - -
198 - - 231,995 231,995
- --------------------------------------------------------------------------------------------------------------------------------
199 - - (157,186) (157,186)
200 Tops 53,880 53.25 6/30/05 424,817 422,969
201 Gold's Gym 17,188 38.92 8/31/99 422,224 422,224
202 - - (81,132) (1,031,097)
203 Frugatti's Wood Fried Pizza 5,550 21.67 5/31/00 319,103 319,103
- --------------------------------------------------------------------------------------------------------------------------------
204 Office Depot 25,000 52.89 11/30/09 281,288 281,288
205 - - 135,476 133,729
205a Loma, Inc. 2,060 100.00 6/13/13 - -
205b Koala Tee Screen Printing Inc. 11,760 45.48 10/31/02 - -
205c Moy Marketing 2,000 20.00 12/31/00 - -
- --------------------------------------------------------------------------------------------------------------------------------
205d Heartland Brokerage 4,000 66.67 7/1/99 - -
206 - - 250,409 234,620
207 John Tyler Community College 27,701 70.35 6/30/05 332,353 332,353
208 Ames 70,000 68.24 9/30/15 275,005 275,005
209 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
210 Stop N Shop 3,855 22.96 5/31/13 167,499 167,499
211 - - 326,311 326,311
212 GSA,DEA 5,245 22.78 12/31/02 169,300 169,300
213 - - 396,954 396,954
214 - - 246,655 246,655
- --------------------------------------------------------------------------------------------------------------------------------
215 School Board of Dade Co. 37,847 100.00 2/28/03 (22,258) (22,258)
216 - - 354,436 354,436
216a Bright Beginnings 8,900 100.00 3/31/10 - -
216b Mountain View Academy 9,000 100.00 11/30/10 - -
216c Bright Beginnings 8,900 100.00 3/31/10 - -
- --------------------------------------------------------------------------------------------------------------------------------
217 S. S. Kresge Co. (K-Mart) 96,268 100.00 11/30/00 350,877 350,877
218 - - 202,758 202,758
219 - - 259,278 259,278
220 U.S. Can Company/Phoenix Cont. 88,000 100.00 4/30/00 330,850 330,850
221 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
222 - - - -
223 - - 314,474 314,474
224 Czarnowski 53,300 89.88 12/31/00 356,757 356,757
225 Bally's Fitness Center 20,000 66.45 1/31/05 - -
226 Food Lion 25,000 53.63 6/30/10 314,364 300,013
- --------------------------------------------------------------------------------------------------------------------------------
227 Staples 24,142 100.00 2/28/12 - -
228 Comprehensive Auto. Rec. Ser. 195,000 100.00 2/29/16 277,005 277,005
229 - - - -
230 Billiard City 7,500 17.41 10/31/00 310,177 290,021
231 T.R.M.G., Inc. 21,100 100.00 1/11/03 - -
- --------------------------------------------------------------------------------------------------------------------------------
232 Eckerd Corporation 10,908 100.00 6/24/18 - -
233 Great Clips 1,120 17.90 11/30/01 - -
234 - - 394,268 394,268
235 Rite Aid 11,282 100.00 7/1/17 - -
236 Best Buy Co., Inc. 36,416 100.00 8/31/08 199,740 199,740
- --------------------------------------------------------------------------------------------------------------------------------
237 Gallus, Inc. 29,000 49.85 7/31/07 - -
238 - - 201,856 201,856
239 - - 165,916 165,916
240 - - 320,612 320,612
241 Rite Aid 11,282 100.00 7/1/17 - -
- --------------------------------------------------------------------------------------------------------------------------------
242 - - 331,254 331,254
243 - - 224,363 224,363
244 El Torito Sports Pub & Cantina 5,130 14.54 8/31/02 224,887 224,887
245 - - 218,767 218,767
246 - - 296,506 296,506
- --------------------------------------------------------------------------------------------------------------------------------
247 Lacks Furniture 50,000 58.21 1/31/06 127,081 127,081
248 - - 221,978 221,978
249 - - 260,381 260,381
250 Trinity Church 24,995 31.83 7/31/01 196,252 196,252
251 - - 347,407 347,407
- --------------------------------------------------------------------------------------------------------------------------------
252 - - 246,585 246,585
253 - - - -
254 Boot Country, USA 4,995 37.28 12/31/05 132,093 132,093
255 - - 380,916 380,916
256 Piggly Wiggly Carolina Co. 32,800 71.07 5/31/18 280,736 280,736
- --------------------------------------------------------------------------------------------------------------------------------
257 Plastics Technologies 60,000 100.00 11/30/06 217,773 157,177
258 Calvary Chapel of Boynton 7,320 22.49 1/31/00 92,819 92,819
259 Clough Harbour 4,030 13.74 6/30/99 172,819 172,819
260 - - 282,901 282,901
261 Vitro Packaging Inc. 12,964 27.00 2/28/02 175,666 173,747
- --------------------------------------------------------------------------------------------------------------------------------
262 Rite Aid 11,180 100.00 5/31/18 - -
263 Goyner 576 3.68 194,927 190,548
264 - - 324,901 324,901
265 - - 185,472 185,472
266 - - 250,632 250,632
- --------------------------------------------------------------------------------------------------------------------------------
267 Muse Technologies Inc. 8,787 23.78 11/30/99 173,695 173,695
268 - - 174,745 174,745
269 Sangera Autohaus 19,731 88.67 12/31/13 - -
270 Cliff Phelps 3,000 44.44 5/31/05 109,750 109,750
271 Catolog Clothing 10,000 36.08 9/30/00 125,461 125,461
- --------------------------------------------------------------------------------------------------------------------------------
272 CVS Drug Store 10,125 100.00 1/31/13 - -
273 U.S. Customs 15,000 50.00 9/30/02 277,249 277,249
274 Movie Gallery 5,294 29.37 9/30/07 - -
275 Weichert Co. of Virginia 4,558 15.59 10/31/00 214,309 209,779
276 Geyer's Supermarket 20,550 34.83 4/3/99 234,032 234,032
- --------------------------------------------------------------------------------------------------------------------------------
277 - - 417,283 417,283
278 - - - -
279 - - - -
280 Arhaus Furniture 10,760 59.27 11/30/03 211,647 211,647
281 Sinai Hospital of Detroit 3,315 13.21 12/31/98 194,506 194,506
- --------------------------------------------------------------------------------------------------------------------------------
282 Noah's Bagels 2,400 28.40 11/30/06 208,675 208,675
283 - - 382,879 382,879
284 Rothwells 7,071 31.24 12/31/01 233,076 185,750
285 Neighborhood Thrifty 14,100 22.03 4/30/03 158,384 158,384
286 Ferguson Enterprises, Inc. 9,300 38.94 6/30/03 187,441 186,661
- --------------------------------------------------------------------------------------------------------------------------------
287 New England Life Insurance Co. 11,132 81.35 3/1/08 - -
288 - - 150,914 150,914
289 Erudite Software, Inc. 14,084 76.61 10/31/01 - -
290 - - 248,321 248,321
291 - - - -
- --------------------------------------------------------------------------------------------------------------------------------
292 - - 116,146 116,146
293 - - 140,758 131,510
294 Texas Worker's Comp.Commission 24,546 64.73 12/31/01 163,006 163,006
295 - - 185,072 185,072
296 Dr. Bodden 3,928 14.29 6/30/00 55,696 55,696
- --------------------------------------------------------------------------------------------------------------------------------
297 - - 118,860 118,860
298 CVS Drug Store 10,125 100.00 5/31/18 - -
299 Quick Stop 5,119 18.93 5/31/01 157,776 147,379
300 - - - -
301 Office Max 23,600 100.00 2/28/13 - -
- --------------------------------------------------------------------------------------------------------------------------------
302 FBD Consulting, Inc. 12,855 59.16 6/30/02 158,531 138,924
303 Vintage Sport Plaques 28,600 43.82 11/1/00 171,572 171,572
304 Hospice Home Foundation, Inc. 4,200 20.79 4/15/03 122,145 105,675
305 - - 162,119 162,119
306 Hart Hotels 7,450 32.42 12/31/09 177,818 174,797
- --------------------------------------------------------------------------------------------------------------------------------
307 - - 122,584 122,584
308 Wm. Michaels Ltd. 3,015 12.73 10/31/00 147,791 147,791
309 - - 124,524 116,907
310 - - 123,013 116,581
311 - - 216,827 216,827
- --------------------------------------------------------------------------------------------------------------------------------
312 - - 130,030 130,030
313 - - 89,969 89,969
314 LaStrada Rest. 3,575 17.29 4/30/04 158,044 158,044
315 - - 123,529 64,397
316 Piggly Wiggly Carolina Co. 23,752 100.00 5/31/18 - -
- --------------------------------------------------------------------------------------------------------------------------------
317 - - 89,137 89,137
318 - - 58,679 58,679
319 Tribocor Technology 6,400 14.88 1/31/00 70,993 70,993
320 - - (76,900) (130,716)
321 National Convience Stores 2,600 19.49 6/11/00 69,680 46,589
- --------------------------------------------------------------------------------------------------------------------------------
322 Pizza Hut of America 1,200 33.33 7/31/99 81,072 81,072
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONTROL 1997 1997 U/W U/W U/W GROUND
NUMBER NOI NCF NOI NCF DSCR LEASE FEE OR LEASEHOLD
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 $ 57,848,709 $ 57,983,543 $ 63,739,072 $ 48,889,853 1.94x Both Fee/Lease
1a 884,635 884,622 717,769 462,849 -
1b 1,384,863 1,384,838 1,572,949 1,088,267 -
1c 730,566 730,553 920,654 606,267 -
1d 5,261,012 5,260,102 5,732,398 4,653,746 -
- -------------------------------------------------------------------------------------------------------------------
1e 2,081,156 2,082,353 2,232,830 1,783,553 -
1f 3,293,369 3,293,331 3,790,690 3,016,924 -
1g 2,714,770 2,717,717 2,987,507 2,368,940 -
1h 924,420 924,632 977,138 714,605 -
1i 1,341,662 1,341,624 3,668,373 2,139,954 -
- -------------------------------------------------------------------------------------------------------------------
1j 463,410 463,397 517,481 346,861 -
1k 3,321,676 3,322,013 3,408,998 2,739,870 -
1l 820,331 820,318 981,173 685,951 -
1m 88,981 89,193 104,724 67,936 -
1n 2,499,018 2,499,005 2,636,161 2,131,188 -
- -------------------------------------------------------------------------------------------------------------------
1o 4,010,611 4,133,316 4,438,522 3,561,526 -
1p 2,401,336 2,398,989 960,199 680,270 -
1q 231,910 231,511 258,675 186,202 -
1r 5,747,472 5,747,447 6,377,451 5,024,753 -
1s 305,070 305,070 210,676 164,781 -
- -------------------------------------------------------------------------------------------------------------------
1t 3,286,192 3,286,179 3,609,453 2,872,681 -
1u 1,159,763 1,159,738 1,449,970 1,064,918 -
1v 1,596,394 1,596,553 1,776,277 1,321,472 -
1w 4,108,791 4,109,811 4,267,672 3,364,696 -
1x (24,576) (24,576) 706,346 352,282 -
- -------------------------------------------------------------------------------------------------------------------
1y 1,606,218 1,606,218 1,234,151 942,005 -
1z 1,114,807 1,123,794 1,187,033 973,992 -
1aa 1,009,678 1,010,375 1,072,988 833,766 -
1bb 2,341,673 2,341,799 2,576,989 2,001,777 -
1cc 3,143,501 3,143,621 3,363,825 2,737,821 -
- -------------------------------------------------------------------------------------------------------------------
2 15,480,852 11,496,771 15,451,370 14,695,605 1.39 Fee
2a 4,170,028 3,778,820 4,458,232 4,353,732 -
2b 562,334 483,381 558,191 523,941 -
2c 744,003 690,240 722,023 696,815 -
2d 501,175 177,262 476,107 440,107 -
- -------------------------------------------------------------------------------------------------------------------
2e 414,440 187,200 408,374 380,549 -
2f 917,613 467,337 909,990 864,990 -
2g 935,147 778,907 839,024 757,292 -
2h 1,035,715 621,960 1,010,936 968,936 -
2i 893,689 699,113 887,008 816,008 -
- -------------------------------------------------------------------------------------------------------------------
2j 1,742,941 1,052,329 1,823,092 1,761,592 -
2k 380,834 290,537 383,310 353,310 -
2l 631,712 102,542 629,565 598,065 -
2m 1,639,352 1,494,605 1,650,446 1,575,196 -
2n 454,763 372,762 291,604 236,604 -
- -------------------------------------------------------------------------------------------------------------------
2o 457,106 299,776 403,468 368,468 -
3 - - 17,083,500 17,000,030 2.06 Both Fee/Lease
3a - - 1,953,000 1,943,183 -
3b - - 2,992,500 2,979,518 -
3c - - 2,772,000 2,758,385 -
- -------------------------------------------------------------------------------------------------------------------
3d - - 2,656,500 2,643,347 -
3e - - 1,869,000 1,862,958 -
3f - - 1,774,500 1,764,900 -
3g - - 1,354,500 1,344,674 -
3h - - 1,711,500 1,703,065 -
- -------------------------------------------------------------------------------------------------------------------
4 11,028,179 9,923,035 10,860,380 9,951,015 1.40 Fee
4a 7,869,814 7,452,802 7,477,587 6,888,130 -
4b 3,158,365 2,470,233 3,382,792 3,062,885 -
5 - - 6,398,365 5,000,365 1.55 Fee
6 3,605,232 3,605,232 4,029,777 3,780,131 1.40 Fee
- -------------------------------------------------------------------------------------------------------------------
7 2,288,626 2,229,392 2,953,433 2,810,897 1.32 Fee
2,952,621 2,941,169 2,802,818 2,707,201 1.28 Fee
8 1,174,359 1,174,359 1,062,041 1,036,003 1.25
9 696,113 690,961 654,475 635,197 1.30
10 414,554 408,860 431,053 413,263 1.28
- -------------------------------------------------------------------------------------------------------------------
11 384,385 383,779 365,754 349,870 1.29
12 283,210 283,210 289,495 272,868 1.29
13 3,859,092 3,859,092 3,812,825 3,233,420 1.51 Fee
2,622,241 2,600,517 2,580,261 2,504,126 1.34 Fee
14 695,127 695,127 756,276 735,911 1.29
- -------------------------------------------------------------------------------------------------------------------
15 768,170 756,578 784,837 775,764 1.50
16 585,679 583,075 492,836 478,097 1.27
17 353,646 352,638 359,460 337,003 1.25
18 219,619 213,099 186,852 177,351 1.27
19 2,392,288 2,331,865 2,979,914 2,545,470 1.25 Fee
- -------------------------------------------------------------------------------------------------------------------
20 2,572,543 2,074,241 3,078,042 2,605,088 1.54 Possible Fee
21 6,537,803 6,734,803 6,415,096 6,361,096 2.85 Fee
22 3,428,041 3,631,692 3,210,041 3,458,241 1.81 Yes Both Fee/Lease
23 3,304,768 3,304,768 3,718,392 2,678,376 1.38 Fee
24 2,037,807 2,037,807 2,136,580 2,011,729 1.17 Yes Leasehold
- -------------------------------------------------------------------------------------------------------------------
25 2,013,355 1,948,582 2,157,583 2,033,932 1.40 Fee
26 2,158,697 2,158,697 2,369,957 2,314,157 1.53 Yes Both Fee/Lease
26a 663,426 663,426 698,266 682,066 - Yes
26b 226,358 226,358 273,068 265,268 - Yes
26c 781,689 781,689 795,153 779,253 - Yes
- -------------------------------------------------------------------------------------------------------------------
26d 487,224 487,224 603,470 587,570 - Yes
27 1,491,667 1,491,667 1,550,000 1,550,000 1.45 Fee
28 1,858,378 1,858,378 1,651,857 1,588,282 1.35 Yes Both Fee/Lease
29 1,570,410 1,547,033 1,687,855 1,556,746 1.34 Fee
30 1,918,589 1,918,589 1,893,734 1,722,093 1.45 Fee
- -------------------------------------------------------------------------------------------------------------------
31 1,764,469 1,726,542 1,845,152 1,550,857 1.25 Fee
32 2,442,189 2,442,189 2,364,433 2,131,092 1.95 Yes Leasehold
33 1,331,531 1,162,349 1,606,915 1,393,459 1.32 Fee
34 1,881,944 1,731,286 1,742,766 1,593,943 1.44 Fee
35 1,575,337 1,575,337 1,326,500 1,248,850 1.18 Fee
- -------------------------------------------------------------------------------------------------------------------
36 1,141,998 359,437 1,652,620 1,320,583 1.30 Fee
36a - - - - -
36b - - - - -
36c - - - - -
37 1,227,262 1,154,761 1,311,939 1,259,836 1.42 Fee
- -------------------------------------------------------------------------------------------------------------------
38 - - 1,311,431 1,182,084 1.31 Fee
39 9,646 9,646 1,130,059 1,109,060 1.26 Fee
40 1,081,583 1,002,943 1,182,555 1,050,628 1.21 Fee
40a - - - - -
40b - - - - -
- -------------------------------------------------------------------------------------------------------------------
41 1,740,153 1,661,799 1,589,133 1,320,264 1.59 Yes Both Fee/Lease
42 3,942,816 4,216,816 2,339,460 2,401,460 2.26 Fee
43 2,063,826 2,063,826 1,753,196 1,531,553 1.70 Fee
44 1,012,186 1,012,186 1,096,299 1,042,299 1.31 Fee
45 1,204,943 1,043,057 1,232,905 1,152,535 1.48 Fee
- -------------------------------------------------------------------------------------------------------------------
46 1,405,509 1,380,265 1,477,768 1,218,992 1.58 Fee
47 2,669,072 2,669,072 1,871,633 1,837,883 2.29 Fee
48 821,720 821,720 975,265 918,305 1.17 Fee
49 - - 1,172,354 1,140,481 1.32 Fee
50 1,264,287 1,264,287 1,071,002 1,019,962 1.41 Yes Leasehold
- -------------------------------------------------------------------------------------------------------------------
51 1,283,582 1,163,738 1,256,447 1,133,567 1.66 Fee
52 714,366 701,395 898,586 799,553 1.13 Yes Both Fee/Lease
53 1,268,686 1,268,686 1,462,907 1,399,474 1.34 Fee
54 1,342,723 1,173,523 1,226,448 993,605 1.41 Fee
55 1,555,843 1,555,843 1,494,909 1,279,737 2.14 Fee
- -------------------------------------------------------------------------------------------------------------------
56 1,022,181 988,992 1,045,299 928,470 1.40 Fee
57 1,423,295 1,382,128 958,703 879,087 1.36 Fee
58 1,263,996 1,263,996 1,216,371 1,064,516 1.59 Fee
59 1,316,704 1,259,629 1,139,853 976,164 1.41 Fee
59a 313,346 277,065 295,448 259,913 -
- -------------------------------------------------------------------------------------------------------------------
59b 140,083 119,289 137,051 117,444 -
59c 203,583 203,583 193,743 159,260 -
59d 152,676 152,676 152,603 130,669 -
59e 308,681 308,681 217,925 189,928 -
59f 198,335 198,335 143,083 118,950 -
- -------------------------------------------------------------------------------------------------------------------
60 930,536 930,536 946,558 878,620 1.40 Fee
61 321,795 321,795 1,013,990 988,990 1.56 Fee
62 668,321 668,321 841,373 810,673 1.47 Fee
62a - - - - -
62b - - - - -
- -------------------------------------------------------------------------------------------------------------------
62c - - - - -
63 482,468 424,468 1,145,522 956,689 1.76 Fee
64 816,272 816,272 777,039 739,290 1.29 Fee
65 851,280 851,280 878,761 806,731 1.50 Fee
66 923,213 866,019 787,155 708,340 1.33 Fee
- -------------------------------------------------------------------------------------------------------------------
67 759,055 742,267 726,517 684,429 1.27 Fee
68 865,988 865,988 836,777 672,944 1.36 Fee
69 973,089 973,089 898,779 781,692 1.51 Yes Leasehold
70 873,084 873,084 665,312 599,049 1.27 Fee
71 - - 684,404 655,706 1.23 Fee
- -------------------------------------------------------------------------------------------------------------------
72 668,782 668,782 777,325 735,142 1.55 Fee
72a 227,661 227,661 284,846 269,082 -
72b 233,814 233,814 276,532 261,742 -
72c 207,307 207,307 215,947 204,318 -
73 683,518 631,318 799,935 712,935 1.64 Fee
- -------------------------------------------------------------------------------------------------------------------
74 935,660 897,520 804,078 730,037 1.54 Fee
75 601,382 572,048 830,394 645,024 1.28 Fee
76 723,724 607,664 705,377 557,903 1.17 Fee
77 - - 871,970 801,194 1.55 Fee
78 798,837 798,837 720,691 626,447 1.47 Yes Both Fee/Lease
- -------------------------------------------------------------------------------------------------------------------
79 644,154 624,736 601,186 544,400 1.29 Yes Both Fee/Lease
80 747,646 716,399 700,939 662,818 1.52 Fee
81 629,572 629,572 598,268 567,731 1.32 Yes Leasehold
82 664,433 644,618 627,130 599,367 1.45 Fee
83 802,387 802,387 681,589 640,489 1.46 Fee
- -------------------------------------------------------------------------------------------------------------------
84 889,090 846,322 680,417 532,628 1.32 Fee
85 679,521 679,521 634,410 601,335 1.50 Fee
86 - - 633,724 608,773 1.31 Fee
87 647,702 647,702 604,642 579,656 1.48 Fee
88 881,344 670,443 859,084 718,087 1.84 Fee
- -------------------------------------------------------------------------------------------------------------------
89 540,005 540,005 529,055 493,550 1.27 Fee
90 580,056 545,316 558,232 482,232 1.27 Fee
91 444,302 444,302 481,981 443,231 1.20 Fee
92 557,536 557,536 572,242 563,437 1.41 Fee
93 452,558 452,558 622,483 549,483 1.49 Fee
- -------------------------------------------------------------------------------------------------------------------
94 - - 556,378 529,163 1.46 Fee
95 640,979 487,399 625,717 556,372 1.55 Fee
95a - - - - -
95b - - - - -
96 662,845 357,464 625,958 568,559 1.51 Fee
- -------------------------------------------------------------------------------------------------------------------
97 779,030 585,451 601,963 491,358 1.35 Fee
98 514,940 362,508 853,898 656,664 1.65 Fee
99 581,083 581,083 593,374 495,526 1.35 Fee
100 605,540 605,540 574,666 562,166 1.13 Yes Leasehold
101 557,785 557,785 548,183 514,731 1.23 Fee
- -------------------------------------------------------------------------------------------------------------------
102 764,003 764,003 727,159 635,565 1.64 Fee
103 927,993 927,993 856,925 856,925 1.98 Fee
103a - - - - -
103b - - - - -
103c - - - - -
- -------------------------------------------------------------------------------------------------------------------
103d - - - - -
103e - - - - -
103f - - - - -
103g - - - - -
103h - - - - -
- -------------------------------------------------------------------------------------------------------------------
103i - - - - -
104 520,244 520,244 545,181 522,481 1.48 Fee
105 782,266 782,266 663,393 532,531 1.40 Fee
106 709,845 709,845 576,539 500,282 1.32 Fee
106a - - - - -
- -------------------------------------------------------------------------------------------------------------------
106b - - - - -
106c - - - - -
106d -
106e - - - - -
107 - - 557,463 506,531 1.37 Fee
- -------------------------------------------------------------------------------------------------------------------
108 - - 475,768 435,594 1.30 Fee
109 501,295 488,314 506,398 455,075 1.31 Fee
110 346,129 346,129 398,608 387,608 1.25 Fee
111 195,543 195,543 489,136 436,117 1.27 Fee
112 687,922 687,922 600,616 568,071 1.81 Fee
- -------------------------------------------------------------------------------------------------------------------
113 415,960 415,960 436,006 412,006 1.27 Fee
114 369,350 369,350 474,431 449,055 1.38 Fee
115 400,378 400,378 439,517 407,917 1.32 Fee
116 266,844 266,844 468,377 441,877 1.37 Fee
117 695,190 695,190 629,136 543,449 1.56 Yes Both Fee/Lease
- -------------------------------------------------------------------------------------------------------------------
117a - - - - - Yes
117b - - - - - Yes
118 - - 442,329 435,709 1.19 Fee
119 505,895 461,555 490,902 436,815 1.21 Fee
120 660,436 612,152 580,526 500,052 1.50 Fee
- -------------------------------------------------------------------------------------------------------------------
121 434,507 434,507 464,988 442,503 1.40 Fee
122 376,464 368,129 436,683 402,811 1.34 Fee
123 584,483 584,483 499,853 447,195 1.28 Fee
124 726,925 675,734 643,184 557,866 1.69 Fee
125 308,808 308,808 539,563 481,508 1.64 Fee
- -------------------------------------------------------------------------------------------------------------------
126 641,849 641,849 633,936 559,083 1.56 Fee
127 664,550 664,550 592,360 511,298 1.43 Fee
128 558,572 558,572 504,535 467,499 1.60 Fee
129 215,739 215,739 474,385 434,129 1.50 Fee
129a - - - - -
- -------------------------------------------------------------------------------------------------------------------
129b - - - - -
130 440,632 440,632 440,579 418,557 1.43 Fee
131 499,474 483,191 464,621 426,871 1.40 Fee
132 448,143 366,143 488,094 433,633 1.33 Fee
133 433,839 433,839 406,856 394,356 1.39 Fee
- -------------------------------------------------------------------------------------------------------------------
134 578,624 576,916 491,632 438,468 1.48 Fee
135 465,871 465,871 459,019 444,793 1.39 Fee
136 338,441 101,731 490,260 430,260 1.23 Fee
137 406,134 405,511 389,327 378,358 1.27 Fee
138 457,184 457,184 435,443 403,174 1.38 Fee
- -------------------------------------------------------------------------------------------------------------------
139 485,960 485,960 489,197 420,173 1.53 Fee
140 474,163 474,163 443,555 393,061 1.38 Fee
141 659,876 659,876 626,578 544,684 1.59 Fee
142 518,400 518,400 456,914 406,738 1.48 Fee
143 445,574 439,696 435,544 402,038 1.35 Fee
- -------------------------------------------------------------------------------------------------------------------
144 - - 385,925 356,875 1.18 Fee
145 605,707 605,707 395,682 352,605 1.28 Fee
146 - - 417,925 379,740 1.21 Fee
147 332,304 332,304 383,698 377,666 1.10 Fee
148 641,131 641,131 459,705 396,853 1.35 Fee
- -------------------------------------------------------------------------------------------------------------------
149 283,353 260,204 384,433 355,086 1.27 Fee
149a - - - - -
149b - - - - -
150 510,429 477,338 527,947 402,608 1.48 Yes Both Fee/Lease
151 525,220 525,220 523,608 422,983 1.55 Fee
- -------------------------------------------------------------------------------------------------------------------
152 376,391 376,391 352,379 345,576 1.34 Fee
153 367,458 367,458 369,073 345,238 1.37 Fee
154 249,128 249,128 334,590 312,616 1.28 Fee
155 345,462 311,483 353,049 340,713 1.40 Fee
156 594,035 594,035 587,678 552,528 2.52 Fee
- -------------------------------------------------------------------------------------------------------------------
157 295,203 295,203 306,874 300,586 1.28 Fee
158 471,222 457,866 422,326 354,500 1.41 Fee
159 374,367 368,734 396,982 368,822 1.50 Fee
160 467,053 467,053 379,990 346,490 1.32 Fee
161 648,683 592,025 639,189 567,906 1.92 Fee
- -------------------------------------------------------------------------------------------------------------------
162 657,773 601,635 466,909 397,891 1.42 Fee
163 642,704 458,912 508,001 482,001 1.87 Fee
164 384,725 297,882 398,579 379,561 1.53 Fee
165 396,778 368,106 388,637 362,637 1.32 Fee
166 351,183 339,183 421,523 365,786 1.52 Fee
- -------------------------------------------------------------------------------------------------------------------
167 372,434 372,434 398,966 334,058 1.40 Fee
168 501,437 375,223 409,483 344,425 1.35 Fee
169 565,227 565,227 456,688 405,225 1.46 Fee
170 189,287 187,869 358,135 342,576 1.39 Fee
171 606,830 606,830 536,901 476,259 1.98 Fee
- -------------------------------------------------------------------------------------------------------------------
172 345,493 279,764 453,893 373,393 1.30 Fee
173 223,426 223,426 342,124 320,908 1.32 Fee
173a - - - - -
173b -
173c -
- -------------------------------------------------------------------------------------------------------------------
173d -
173e - - - - -
173f - - - - -
174 250,251 195,512 325,465 297,140 1.39 Yes Both Fee/Lease
175 516,073 447,169 551,299 478,555 1.79 Fee
- -------------------------------------------------------------------------------------------------------------------
176 348,600 348,600 323,117 296,972 1.32 Yes Leasehold
177 1,268,686 1,268,686 1,462,907 1,399,474 1.34 Fee
178 317,153 317,153 317,796 287,796 1.35 Fee
179 343,864 343,864 378,880 331,265 1.43 Fee
180 533,800 533,800 445,248 382,335 1.47 Fee
- -------------------------------------------------------------------------------------------------------------------
181 366,911 338,382 352,034 309,852 1.34 Fee
182 383,296 378,179 345,565 317,149 1.51 Fee
183 300,772 300,772 341,209 318,209 1.38 Fee
184 - - 333,461 290,006 1.41 Fee
185 472,588 472,588 460,300 410,613 1.66 Fee
- -------------------------------------------------------------------------------------------------------------------
186 397,765 397,765 345,506 311,270 1.35 Fee
186a - - - - -
186b -
186c - - - - -
187 414,102 414,102 372,426 335,023 1.65 Fee
- -------------------------------------------------------------------------------------------------------------------
188 471,084 471,084 433,744 380,763 1.61 Fee
189 333,976 333,976 308,965 290,477 1.36 Fee
189a - - - - -
189b - - - - -
189c - - - - -
- -------------------------------------------------------------------------------------------------------------------
189d - - - - -
189e - - - - -
190 266,432 220,990 302,879 274,079 1.46 Fee
191 440,495 440,495 376,085 336,249 1.44 Fee
191a - - - - -
- -------------------------------------------------------------------------------------------------------------------
191b - - - - -
192 351,086 351,086 326,764 278,869 1.35 Fee
193 308,808 289,435 282,972 258,711 1.34 Fee
193a - - - - -
193b -
- -------------------------------------------------------------------------------------------------------------------
194 387,079 387,079 313,080 279,708 1.31 Fee
195 333,576 330,107 341,662 298,296 1.54 Fee
196 347,867 347,867 338,160 327,267 1.65 Fee
197 - - 262,757 239,686 1.28 Fee
198 257,246 257,246 278,313 272,133 1.37 Fee
- -------------------------------------------------------------------------------------------------------------------
199 (81,750) (81,750) 266,258 249,458 1.35 Fee
200 404,050 401,664 295,173 250,911 1.27 Fee
201 409,672 409,672 341,854 277,118 1.39 Yes Both Fee/Lease
202 222,150 222,150 286,251 248,676 1.32 Fee
203 310,353 310,353 277,075 257,863 1.35 Fee
- -------------------------------------------------------------------------------------------------------------------
204 223,405 61,686 275,679 262,742 1.45 Fee
205 228,219 163,219 269,473 241,036 1.26 Fee
205a - - - - -
205b - - - - -
205c - - - - -
- -------------------------------------------------------------------------------------------------------------------
205d - - - - -
206 262,517 222,745 255,015 231,015 1.32 Fee
207 323,227 323,227 290,631 239,168 1.30 Fee
208 272,517 257,903 283,266 248,326 1.40 Fee
209 260,043 260,043 258,037 237,653 1.36 Fee
- -------------------------------------------------------------------------------------------------------------------
210 171,202 171,202 285,504 265,378 1.31 Fee
211 373,232 373,232 382,611 329,116 1.67 Fee
212 203,600 203,600 251,600 235,700 1.30 Fee
213 435,917 388,408 403,382 355,873 1.74 Fee
214 340,064 340,064 369,434 294,801 1.50 Fee
- -------------------------------------------------------------------------------------------------------------------
215 (65,292) (65,292) 226,518 214,285 1.25 Fee
216 363,767 363,767 332,898 332,898 1.61 Fee
216a - - - - -
216b - - - - -
216c - - - - -
- -------------------------------------------------------------------------------------------------------------------
217 353,452 353,452 313,388 256,265 1.36 Fee
218 397,856 397,856 279,931 241,681 1.29 Fee
219 285,722 285,722 268,036 231,587 1.38 Fee
220 320,910 320,910 281,924 213,161 1.32 Fee
221 350,548 320,728 323,394 285,956 1.44 Fee
- -------------------------------------------------------------------------------------------------------------------
222 391,812 391,812 321,513 261,274 1.33 Fee
223 458,948 458,948 374,836 290,108 1.58 Fee
224 444,156 444,156 379,752 320,461 1.71 Fee
225 210,633 210,633 244,516 225,797 1.28 Fee
226 309,525 309,525 250,767 233,916 1.24 Fee
- -------------------------------------------------------------------------------------------------------------------
227 - - 220,687 217,066 1.30 Fee
228 378,742 378,742 388,200 368,700 1.66 Fee
229 336,678 336,678 337,162 293,069 1.68 Fee
230 312,200 297,533 308,178 274,628 1.66 Fee
231 268,620 268,620 245,711 233,315 1.48 Fee
- -------------------------------------------------------------------------------------------------------------------
232 - - 182,588 182,588 1.06 Fee
233 226,323 226,323 201,679 195,886 1.28 Fee
234 372,949 372,949 335,001 300,888 1.66 Fee
235 - - 177,993 174,608 1.00 Fee
236 201,958 201,958 223,212 200,648 1.32 Fee
- -------------------------------------------------------------------------------------------------------------------
237 257,922 257,922 232,232 205,193 1.40 Fee
238 145,546 145,546 215,799 183,299 1.28 Fee
239 179,095 179,095 216,132 187,132 1.28 Fee
240 342,043 342,043 308,780 275,206 1.53 Fee
241 - - 172,304 170,612 1.00 Fee
- -------------------------------------------------------------------------------------------------------------------
242 384,507 384,507 355,300 310,028 1.84 Fee
243 236,569 236,569 248,814 231,334 1.62 Fee
244 227,563 227,563 226,672 195,730 1.33 Fee
245 202,400 202,400 232,455 215,535 1.51 Fee
246 269,079 269,079 260,680 224,495 1.45 Fee
- -------------------------------------------------------------------------------------------------------------------
247 182,293 182,293 238,970 199,590 1.36 Fee
248 262,277 262,277 261,051 230,153 1.35 Fee
249 345,286 345,286 314,333 280,627 1.67 Fee
250 239,234 179,847 246,261 196,010 1.41 Fee
251 439,822 439,822 430,243 385,541 2.31 Fee
- -------------------------------------------------------------------------------------------------------------------
252 244,918 244,918 206,988 196,488 1.20 Fee
253 395,602 395,602 324,771 294,681 1.81 Fee
254 217,275 217,275 203,548 195,679 1.34 Fee
255 431,152 431,152 310,096 264,612 1.53 Fee
256 261,899 256,574 239,427 214,001 1.41 Fee
- -------------------------------------------------------------------------------------------------------------------
257 244,536 244,536 191,269 178,727 1.15 Fee
258 129,087 128,087 202,038 173,630 1.23 Fee
259 298,039 298,039 208,650 173,074 1.31 Fee
260 300,986 300,986 275,352 246,896 1.68 Fee
261 176,784 176,784 218,404 184,642 1.44 Yes Leasehold
- -------------------------------------------------------------------------------------------------------------------
262 - - 167,844 165,608 1.12 Fee
263 203,960 194,729 188,174 185,671 1.42 Fee
264 384,218 384,218 285,333 285,333 1.84 Fee
265 217,279 217,279 232,612 197,917 1.49 Fee
266 283,334 283,334 262,624 196,860 1.45 Fee
- -------------------------------------------------------------------------------------------------------------------
267 200,839 183,202 199,318 166,897 1.36 Fee
268 178,196 174,449 186,811 165,691 1.35 Fee
269 288,000 288,000 262,599 253,921 1.62 Fee
270 178,994 178,994 175,727 167,401 1.27 Fee
271 153,337 151,565 209,477 175,907 1.28 Fee
- -------------------------------------------------------------------------------------------------------------------
272 - - 165,038 162,507 1.00 Yes Leasehold
273 - - 190,591 184,174 1.27 Fee
274 247,311 247,311 192,961 181,840 1.50 Fee
275 212,205 130,412 208,749 166,315 1.27 Fee
276 244,734 244,734 237,918 202,056 1.53 Fee
- -------------------------------------------------------------------------------------------------------------------
277 295,444 295,444 303,142 259,705 1.76 Fee
278 278,432 256,372 259,023 231,322 1.60 Fee
279 325,030 325,030 275,904 249,304 1.73 Fee
280 207,951 207,951 178,243 164,436 1.33 Fee
281 219,961 219,961 214,632 180,758 1.50 Fee
- -------------------------------------------------------------------------------------------------------------------
282 182,883 182,883 176,018 157,719 1.37 Fee
283 460,314 460,314 413,197 369,528 2.41 Fee
284 305,886 291,274 241,621 217,897 1.62 Fee
285 203,076 203,076 252,896 202,264 1.70 Fee
286 194,554 193,593 167,833 151,389 1.26 Fee
- -------------------------------------------------------------------------------------------------------------------
287 - - 165,907 154,330 1.36 Fee
288 256,117 256,117 231,309 206,501 1.69 Fee
289 215,997 215,997 214,955 194,199 1.57 Fee
290 260,819 260,819 237,559 212,034 1.56 Fee
291 219,231 219,231 153,361 144,811 1.34 Fee
- -------------------------------------------------------------------------------------------------------------------
292 154,700 154,700 159,783 150,558 1.34 Fee
293 140,842 125,389 151,225 140,425 1.31 Fee
294 159,140 159,140 176,599 153,407 1.40 Fee
295 223,980 223,980 220,138 195,119 1.54 Fee
296 179,543 178,854 188,590 161,324 1.47 Fee
- -------------------------------------------------------------------------------------------------------------------
297 195,199 195,199 188,440 166,914 1.41 Fee
298 - - 182,250 177,896 1.61 Fee
299 151,770 98,920 209,280 171,166 1.61 Fee
300 362,396 362,396 293,191 264,042 1.68 Fee
301 - - 230,305 226,765 1.78 Fee
- -------------------------------------------------------------------------------------------------------------------
302 234,526 226,816 183,310 156,102 1.54 Fee
303 191,582 171,543 184,788 158,115 1.61 Fee
304 137,033 123,687 148,830 133,699 1.47 Fee
305 168,726 168,726 184,982 158,482 1.80 Fee
306 228,066 228,066 140,224 125,674 1.32 Fee
- -------------------------------------------------------------------------------------------------------------------
307 121,501 97,506 136,792 123,544 1.41 Fee
308 189,104 139,525 173,017 134,005 1.52 Fee
309 115,823 68,540 132,922 122,122 1.43 Fee
310 120,677 116,494 128,774 119,999 1.47 Fee
311 211,604 211,604 191,230 171,606 1.72 Fee
- -------------------------------------------------------------------------------------------------------------------
312 116,926 116,926 124,346 118,418 1.49 Fee
313 123,586 123,586 131,566 121,066 1.67 Fee
314 138,898 138,898 116,958 98,095 1.31 Fee
315 217,730 162,822 205,094 173,481 2.22 Fee
316 104,159 104,159 122,994 109,493 1.46 Fee
- -------------------------------------------------------------------------------------------------------------------
317 98,508 92,258 99,392 94,767 1.72 Fee
318 64,595 63,395 91,931 88,919 1.60 Fee
319 96,922 91,891 90,053 78,536 1.49 Fee
320 44,292 (9,428) 80,311 75,886 1.62 Fee
321 83,258 68,172 86,749 76,299 1.59 Fee
- -------------------------------------------------------------------------------------------------------------------
322 76,002 76,002 64,547 61,192 1.38 Fee
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CERTAIN CHARACTERISTICS OF THE MULTIFAMILY MORTGAGED PROPERTIES
CONTROL GROUP LOAN CUT-OFF UTILITIES PAID
NUMBER NUMBER NUMBER PROPERTY NAME DATE BALANCE COUNTY BY TENANT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <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 San Mateo Electric only
2b 2 AIM-1B AIMCO-The Bluffs Apartments 3,746,170 Clackamas Electric only
2c 2 AIM-1C AIMCO-Buena Vista Apartments 4,983,690 Los Angeles Electric only
2d 2 AIM-1D AIMCO-Casa De Monterey 4,126,447 Los Angeles Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
2e 2 AIM-1E AIMCO-Chappelle Le Grande 3,228,160 Lake Electric only
2f 2 AIM-1F AIMCO-Crosswood Park Apartments 5,601,533 Sacramento Electric only
2g 2 AIM-1G AIMCO-Forest Ridge Apartments 5,935,726 Coconino Electric only
2h 2 AIM-1H AIMCO-Mountain View Apartments 7,200,564 Los Angeles Electric only
2i 2 AIM-1I AIMCO-North Park Apartments 6,290,057 Vanderburgh Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
2j 2 AIM-1J AIMCO-Pathfinder Village 13,543,952 Alemeda Electric only
2k 2 AIM-1K AIMCO-Shadowood Apartments 2,265,209 Quachita Parish Electric only
2l 2 AIM-1L AIMCO-Terrace Gardens Apartments 4,466,847 Douglas Electric only
2m 2 AIM-1M AIMCO-Towers of Westchester 12,191,075 Prince George's County No utilities
2n 2 AIM-1N AIMCO-Vista Village Apartments 3,341,728 El Paso No utilities
- ------------------------------------------------------------------------------------------------------------------------------------
2o 2 AIM-1O AIMCO-Watergate Apartments 2,915,638 Pulaski Electric only
37 2 M0514 Hobbits Grove Apartments 11,839,014 Howard Electricity/Gas
44 2 09-0001123 Springdale Villa Apartments 10,035,229 Orange Electric only
45 2 09-0001042 Briarwood Village Apartments 9,756,251 Harris Electric only
48 2 M0171 Fremont Garden Apartments 9,370,479 Alameda Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
51 2 M0462 Cottonwood Cabanas Apartments 8,732,563 Shelby Electricity/Gas
73 2 09-0001082 Canterbury Village Apartments 5,470,880 Dallas No utilities
81 2 400029139 Redstone Apartments 5,161,627 Chittenden Electric only
89 2 400029257 Indian Lookout Apartments 4,786,473 Hamilton County Electric only
90 2 400029169 Braden Creek Apartments 4,720,294 Tulsa Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
91 2 400031048 Palm Springs Village Apartments 4,592,526 Riverside Electric only
93 2 400029202 Villa Acapulco Apartments 4,540,699 Harris Electric only
95 2 M0330 Acadian/Willow Bend Roll-up 4,493,481
95a 2 M0330A Acadian House Apartments 0 Lafayette Parish Electric only
95b 2 M0330B Willow Bend Apartments 0 Lafayette Parish Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
110 1 09-0001160 Plaza at River Oaks Apartments 4,050,000 Harris All utilities
112 2 400029299 Ogden Manor Apartments 3,991,324 Dupage Electricity/Gas
113 2 400029232 Riverside Village Apartments 3,988,673 Pierce No utilities
114 2 M0415 Northridge Villa Apartments 3,949,299 Monterey Water/Electricity
115 2 400029306 University Gardens Apartments 3,944,024 Travis County Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
116 2 400029252 Cimarron Apartments 3,830,519 Broward All utilities
119 1 M0429 The Seasons Apartments
and Townhouses 3,746,987 Ouachita All utilities
131 2 400029137 Shirley Court Apartments 3,568,243 Delaware No utilities
133 2 400029178 422 Mystic Avenue 3,482,939 Middlesex Electric only
136 1 400028210 Royal Village Apartments 3,470,313 Dallas Electricity/Gas
- ------------------------------------------------------------------------------------------------------------------------------------
16 1 400029227 800 - 802 Lexington Avenue 3,260,044 New York Electric Only
153 2 M0263 Country Acres Apartments 3,087,007 Benton No utilities
157 1 400031128 Chateau Hilgard 2,997,437 Los Angeles Electricity/Gas
159 2 09-0001045 Westbury Park Apartments 2,990,018 Cobb Water/Electricity
163 2 09-0001107 Southgate Suites & Apartments 2,981,475 Muscogee No utilities
- ------------------------------------------------------------------------------------------------------------------------------------
165 1 M0487 II Frances Place Apartments 2,939,401 Ouachita Parish Electric only
172 1 400027560 Concord House/Concord Terrace 2,747,662 Tarrant No utilities
174 2 M0537 Cedar Shores Apartments 2,717,695 Duval Water/Electricity
178 1 400030868 The Cascade Apartments 2,656,184 Tarrant Electric only
190 2 M0443 Tree House Apartments 2,397,966 Clay Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
199 2 400029183 Fairlawn Gardens Apartments 2,290,025 Berkeley Electric only
202 2 09-0001084 Westwood Apartments 2,270,721 Tarrant Electric only
206 2 400029208 Summit Apartments 2,190,202 Tulsa Electric only
209 2 400028269 Westmoor Apartments 2,140,966 Hancock Electricity/Gas
219 2 09-0001051 Town View Apartments 2,036,058 Dallas Electric only
- ------------------------------------------------------------------------------------------------------------------------------------
238 2 400031123 Whitewood Oaks Apartments 1,797,348 Bexar Electricity/Gas
239 2 09-0001070 Sierra Trails Apartments 1,796,427 Tarrant County No utilities
243 2 400029185 Spring Heights Fourplexes 1,752,514 Brazos Electric only
245 2 M0264 Executive East Apartments 1,742,665 Benton No utilities
252 1 400029188 Lillian Cove Duplexes 1,657,162 Faulkner All utilities
- ------------------------------------------------------------------------------------------------------------------------------------
265 2 400029168 The Eagle Crest Townhome Apts. 1,537,778 Bexar Electric only
268 2 400029182 Chatham Street Apartments 1,494,043 Essex Electric only
291 2 M0262 Oakwood Heights Apartments 1,322,392 Benton No utilities
292 2 M0220 121 Seaman Avenue 1,319,950 New York Electric only
293 2 M0290 Geneva Apartments 1,319,405 Benton No utilities
- ------------------------------------------------------------------------------------------------------------------------------------
305 1 400030869 The Park Square Apartments 1,098,422 Tarrant Electric only
307 2 09-0001075 Shadow Glen Apartments 1,061,977 Dallas Electric only
309 2 M0288 Southview Apartments 1,045,599 Benton No utilities
310 2 M0289 The Crossings Apartments 995,809 Benton No utilities
312 2 M0364 Riverchase Apartments 959,266 Tunica Electricity/Gas
- ------------------------------------------------------------------------------------------------------------------------------------
313 1 400030870 Park Ridge Apartments 898,725 Tarrant Electric only
317 2 09-0001035 The Mason Apartments 693,474 Dallas No utilities
318 2 M0172 Roxbury Crossing Apartments 621,814 Suffolk Electricity/Gas
320 2 09-0001036 McKinney Avenue Apartments 587,761 Dallas No utilities
</TABLE>
<TABLE>
<CAPTION>
STUDIOS 1 BEDROOM 2 BEDROOM 3 BEDROOM 4 BEDROOM
------- --------- --------- --------- ---------
WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG.
# UNITS RENT/MONTH # UNITS RENT/MONTH # UNITS RENT/MONTH # UNITS RENT/MONTH # UNITS RENT/MONTH ELEVATORS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- - - - - - - - - -
- - 290 1,211 127 1,617 1 1,800 - - Yes
19 475 64 520 48 634 6 750 - - No
- - 51 999 35 1,174 6 1,375 - - Yes
- - 112 636 32 840 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 34 626 59 726 12 957 - - No
- - 66 660 93 838 21 1,000 - - No
88 523 80 610 96 727 14 890 - - No
- - - - 124 876 44 1,020 - - No
- - 136 446 148 590 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - - - 142 1,132 104 1,343 - - No
- - 64 485 52 601 4 725 - - No
- - - - 63 748 63 799 - - No
30 723 123 840 103 1,046 45 1,245 - - Yes
10 445 75 496 135 586 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 28 477 70 586 42 737 - - No
- - 48 905 74 1,035 48 1,208 - - No
22 608 150 680 44 855 - - - - Yes
- - 254 524 88 645 - - - - No
24 800 52 935 84 1,118 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 80 395 304 435 - - - - No
- - 120 440 160 575 68 691 - - No
- - 8 700 46 897 8 1,200 19 1,435 No
- - 75 535 60 680 - - - - No
24 275 184 331 96 421 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 107 515 48 623 - - - - Yes
- - 240 360 40 465 12 550 - - No
- - - - - - - - - -
- - 24 413 60 505 8 625 - - No
1 (1) 48 420 60 515 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 30 765 14 1,900 - - - - No
- - 80 770 19 880 9 959 - - Yes
- - 48 488 56 572 16 690 - - No
- - 52 609 52 711 - - - - Yes
- - 100 666 - - - - - - Yes
- ------------------------------------------------------------------------------------------------------------------------------
- - 4 575 86 668 16 846 - - No
- - 42 385 107 475 - - - - No
6 435 126 531 18 626 - - - - Yes
- - - - 42 994 8 1,206 - - Yes
92 402 96 480 80 594 32 725 - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 13 665 - - - - - - No
- - 41 423 51 508 13 620 - - Yes
- - 20 1,491 4 1,919 - - - - Yes
- - 44 495 84 594 - - - - No
- - 1 380 102 583 1 660 - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 24 453 76 520 - - - - No
9 295 133 380 168 466 12 590 - - No
- - 30 473 62 541 11 638 - - No
2 380 73 449 45 579 - - - - No
8 415 40 495 24 595 20 705 - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 29 464 72 514 11 631 - - No
- - 54 353 112 466 1 640 - - No
- - 20 389 52 468 24 575 - - No
- - 8 400 40 632 8 550 - - No
6 255 89 404 32 535 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
34 347 30 417 60 512 6 575 - - No
1 350 64 352 51 490 - - - - No
- - 20 415 56 511 - - - - No
- - 18 400 36 480 18 600 - - No
- - - - 42 559 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 105 335 30 435 - - - - No
1 450 30 550 35 650 - - - - No
- - 10 440 28 549 - - - - Yes
- - 39 574 2 761 - - - - Yes
- - 2 395 34 465 12 585 - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - 76 345 30 425 - - - - No
- - - - 48 588 - - - - No
- - 11 390 34 460 3 575 - - No
1 300 17 410 18 510 3 600 - - No
- - - - 24 597 - - - - No
- ------------------------------------------------------------------------------------------------------------------------------
- - - - 20 495 22 595 - - No
5 550 20 659 - - - - - - No
- - - - 1 930 8 945 3 1,165 No
4 475 10 587 5 880 - - - - No
(1) Studio is occupied by building superintendent and therefore has no monthly rent.
</TABLE>
A-13
<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>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
NUMBER OF % OF NUMBER OF CUT-OFF CUT-OFF AVERAGE CUT-OFF AVERAGE
RANGE OF MORTGAGE MORTGAGE MORTGAGED DATE DATE UNDERWRITTEN DATE MORTGAGE
CUT-OFF DATE BALANCES LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------------- ---------- --------- ---------- -------------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - $ 999,999 13 4.04% 13 $ 9,892,085 0.53% 1.60x 70.8% 7.38%
$ 1,000,000 - $ 1,999,999 91 28.26 91 141,179,673 7.58 1.46 71.1 7.44
$ 2,000,000 - $ 2,999,999 64 19.88 82 159,553,894 8.57 1.44 71.8 7.43
$ 3,000,000 - $ 3,999,999 49 15.22 52 171,065,279 9.19 1.41 71.9 7.34
$ 4,000,000 - $ 4,999,999 29 9.01 42 131,320,516 7.05 1.42 72.0 7.23
$ 5,000,000 - $ 5,999,999 15 4.66 17 81,623,716 4.38 1.41 74.0 7.34
$ 6,000,000 - $ 6,999,999 10 3.11 12 65,329,158 3.51 1.43 70.9 7.26
$ 7,000,000 - $ 7,999,999 5 1.55 10 38,036,492 2.04 1.43 73.6 7.58
$ 8,000,000 - $ 8,999,999 6 1.86 6 50,376,162 2.71 1.51 72.5 7.37
$ 9,000,000 - $ 9,999,999 6 1.86 6 57,198,374 3.07 1.51 71.7 7.33
$10,000,000 - $ 11,999,999 8 2.48 9 84,741,317 4.55 1.50 71.0 7.35
$12,000,000 - $ 13,999,999 7 2.17 9 89,869,426 4.83 1.41 70.2 7.40
$14,000,000 - $ 16,999,999 3 0.93 3 43,669,186 2.35 1.38 67.9 7.11
$17,000,000 - $ 19,999,999 4 1.24 7 73,285,333 3.94 1.37 69.5 7.65
$20,000,000 - $ 24,999,999 5 1.55 5 109,967,084 5.91 1.78 71.0 7.99
$25,000,000 - $ 49,999,999 3 0.93 3 105,490,514 5.67 1.45 66.2 7.07
$50,000,000 - $147,597,677 4 1.24 54 448,919,618 24.12 1.73 61.8 7.29
---------- --------- ---------- -------------- ---------- ---------- ---------- ---------
Total/Weighted Avg. 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
========== ========= ========== ============== ========== ========== ========== =========
</TABLE>
DISTRIBUTION OF CUT-OFF DATE BALANCES
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
NUMBER OF % OF NUMBER OF CUT-OFF CUT-OFF AVERAGE CUT-OFF AVERAGE
RANGE OF MORTGAGE MORTGAGE MORTGAGED DATE DATE UNDERWRITTEN DATE MORTGAGE
CUT-OFF DATE BALANCES LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- ---------------------------- --------- ---------- ---------- ------------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - $ 999,999 .. 5 2.69% 5 $ 4,334,893 0.36% 1.67x 67.0% 7.59%
$ 1,000,000 - $ 1,999,999 .. 59 31.72 59 93,733,457 7.74 1.47 70.7 7.51
$ 2,000,000 - $ 2,999,999 .. 36 19.35 45 91,145,037 7.52 1.45 71.0 7.48
$ 3,000,000 - $ 3,999,999 .. 27 14.52 28 93,364,646 7.71 1.40 71.2 7.45
$ 4,000,000 - $ 4,999,999 .. 15 8.06 27 66,915,463 5.52 1.41 70.2 7.30
$ 5,000,000 - $ 5,999,999 .. 5 2.69 7 28,002,421 2.31 1.38 74.2 7.25
$ 6,000,000 - $ 6,999,999 .. 6 3.23 8 40,004,703 3.30 1.37 70.0 7.22
$ 7,000,000 - $ 7,999,999 .. 4 2.15 9 30,394,811 2.51 1.45 73.8 7.59
$ 8,000,000 - $ 8,999,999 .. 3 1.61 3 24,990,341 2.06 1.39 75.4 7.66
$ 9,000,000 - $ 9,999,999 .. 3 1.61 3 28,603,746 2.36 1.61 69.5 7.46
$10,000,000 - $ 11,999,999 .. 4 2.15 5 42,022,120 3.47 1.61 66.9 7.77
$12,000,000 - $ 13,999,999 .. 5 2.69 7 63,817,796 5.27 1.47 68.7 7.28
$14,000,000 - $ 16,999,999 .. 1 0.54 1 15,000,000 1.24 1.45 52.3 6.91
$17,000,000 - $ 19,999,999 .. 4 2.15 7 73,285,333 6.05 1.37 69.5 7.65
$20,000,000 - $ 24,999,999 .. 3 1.61 3 66,689,673 5.51 2.03 63.6 8.32
$25,000,000 - $ 49,999,999 .. 3 1.61 3 109,222,740 9.02 1.46 61.6 7.38
$50,000,000 - $147,597,677 .. 3 1.61 39 339,770,015 28.05 1.84 62.0 6.90
--------- ---------- ---------- -------------- ---------- ---------- --------- ----------
Total/Weighted Avg.......... 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
========= ========== ========== ============== ========== ========== ========= ==========
</TABLE>
A-14
<PAGE>
DISTRIBUTION OF CUT-OFF DATE BALANCES
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
RANGE OF NUMBER OF % OF NUMBER OF CUT-OFF CUT-OFF AVERAGE CUT-OFF AVERAGE
CUT-OFF DATE MORTGAGE MORTGAGE MORTGAGED DATE DATE UNDERWRITTEN DATE MORTGAGE
BALANCES LOANS LOANS PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE
- -------------------------- ---------- --------- ---------- ----------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - $ 999,999.... 8 5.84% 8 $ 5,557,192 0.85% 1.54x 73.8% 7.23%
$ 1,000,000 - $ 1,999,999 ... 32 23.36 32 47,446,216 7.30 1.45 71.8 7.30
$ 2,000,000 - $ 2,999,999 ... 28 20.44 37 68,408,857 10.52 1.42 72.8 7.37
$ 3,000,000 - $ 3,999,999 ... 22 16.06 24 77,700,632 11.95 1.42 72.8 7.21
$ 4,000,000 - $ 4,999,999 .. 14 10.22 15 64,405,053 9.91 1.43 73.8 7.16
$ 5,000,000 - $ 5,999,999 .. 10 7.30 10 53,621,295 8.25 1.42 73.9 7.39
$ 6,000,000 - $ 6,999,999 .. 4 2.92 4 25,324,455 3.89 1.53 72.4 7.32
$ 7,000,000 - $ 7,999,999 .. 1 0.73 1 7,641,681 1.18 1.36 73.1 7.54
$ 8,000,000 - $ 8,999,999 .. 3 2.19 3 25,385,821 3.90 1.63 69.7 7.09
$ 9,000,000 - $ 9,999,999 .. 3 2.19 3 28,594,628 4.40 1.41 73.9 7.20
$10,000,000 - $ 11,999,999 .. 4 2.92 4 42,719,197 6.57 1.39 75.1 6.94
$12,000,000 - $ 13,999,999 .. 2 1.46 2 26,051,630 4.01 1.28 74.0 7.71
$14,000,000 - $ 16,999,999 .. 2 1.46 2 28,669,186 4.41 1.35 76.1 7.21
$20,000,000 - $ 24,999,999 .. 2 1.46 2 43,277,411 6.66 1.39 82.4 7.49
$25,000,000 - $ 49,999,999 .. 1 0.73 1 25,580,579 3.93 1.32 79.9 7.39
$50,000,000 - $147,597,677 . 1 0.73 14 79,836,798 12.28 1.39 61.2 8.50
---------- -------- ---------- ------------ ---------- ---------- ---------- ---------
Total/Weighted Avg........ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
========== ======== ========== ============ ========== ========== ========== =========
</TABLE>
A-15
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
NUMBER OF CUT-OFF CURRENT AVERAGE CUT-OFF AVERAGE WEIGHTED WEIGHTED
MORTGAGED DATE PRINCIPAL UNDERWRITTEN DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE OCCUPANCY UNITS
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RETAIL:
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
Anchored Retail......... 46 $ 242,124,573 13.01% 1.33x 74.9% 7.43% 95.29% 153,201.9
Unanchored Retail....... 65 196,771,060 10.57 1.39 72.5 7.28 94.96 65,514.9
CTL/Retail.............. 6 9,681,825 0.52 1.11 85.9 6.96 100.00 10,874.3
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................... 117 448,577,458 24.1 1.35 74.1 7.36 95.25 111,665.6
LODGING:
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
Limited Svc. Hotel...... 58 125,475,461 6.74 1.56 70.7 7.72 67.83 93.2
Luxury Hotel............ 5 99,517,029 5.35 1.52 61.7 7.08 72.12 307.3
Full Service Hotel...... 10 86,808,748 4.66 1.49 72.4 7.62 70.22 232.4
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................... 73 311,801,239 16.75 1.53 68.3 7.49 69.86 200.3
Office................... 52 301,139,444 16.18 1.42 71.7 7.22 97.26 238,609.2
Multifamily.............. 72 294,076,829 15.80 1.39 71.2 7.61 94.63 199.40
Industrial............... 56 244,082,727 13.11 1.72 61.2 7.07 39.09 412,256.3
Movie Theatre............ 8 104,748,392 5.63 2.06 61.7 6.77 100.00 109,485.4
HEALTH CARE:
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
Hospital................ 3 52,372,423 2.81 2.32 58.3 9.01 81.92 170.6
Assisted Living
Facility............... 5 22,365,612 1.20 1.51 68.3 7.42 91.67 68.7
Nursing Home, Skilled .. 3 18,864,109 1.01 1.90 55.6 7.74 83.96 123.8
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL:.................. 11 93,602,144 5.03 2.04 60.2 8.37 84.66 136.8
Self-Storage............. 8 19,034,594 1.02 1.46 69.2 7.26 87.22 61,352.9
OTHER
Underlying Fee.......... 1 15,000,000 0.81 1.45 52.3 6.91 NAP NAP
Mobile Home Park........ 5 14,126,724 0.76 1.70 68.7 6.74 95.19 354.3
Child Care.............. 14 7,544,728 0.41 1.79 58.8 7.78 100.00 7,911.3
Parking Garage.......... 1 4,433,463 0.24 1.13 71.5 7.41 100.00 820.0
Mixed Use............... 2 1,856,989 0.10 1.33 69.3 7.79 100.00 28,150.1
Auto Dealership......... 1 1,493,092 0.08 1.62 47.4 8.44 100.00 22,251.0
======================== ========== ============== ========== ========== ========== ========== ========== ==========
Total/Weighted Avg....... 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37% 82.78%
========== ============== ========== ========== ========== ========== ==========
</TABLE>
A-16
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
NUMBER OF CUT-OFF CURRENT AVERAGE CUT-OFF AVERAGE WEIGHTED WEIGHTED
MORTGAGED DATE PRINCIPAL UNDERWRITTEN DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE OCCUPANCY UNITS
- ------------------------ ---------- ------------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LODGING:
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
Limited Svc. Hotel...... 52 $ 103,146,984 8.52% 1.62x 70.5% 7.70% 67.09% 85.6
Luxury Hotel............ 5 99,517,029 8.22 1.52 61.7 7.08 72.12 307.3
Full Service Hotel...... 8 51,745,119 4.27 1.65 67.2 7.31 73.51 162.5
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................... 65 254,409,133 21.00 1.58 66.4 7.38 70.36 188
RETAIL:
- ------------------------------------ -------------- --------------------------------------------------------------
Anchored Retail......... 27 129,047,069 10.65 1.28 73.9 7.56 95.52 136,250.7
Unanchored Retail....... 34 86,186,418 7.12 1.28 72.3 7.36 97.11 26,069.0
CTL/Retail.............. 6 9,681,825 0.80 1.11 85.9 6.96 100.00 10,874.3
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................... 67 224,915,312 18.57 1.27 73.8 7.46 96.32 88,632.6
Office................... 29 215,113,405 17.76 1.39 72.5 7.20 97.62 302,011.7
Industrial............... 42 207,659,656 17.14 1.77 59.5 7.02 28.45 459,738.6
Movie Theatre............ 8 104,748,392 8.65 2.06 61.7 6.77 100.00 109,485.4
HEALTH CARE:
- ------------------------------------ -------------- -------------------------------------------------------------
Hospital................ 3 52,372,423 4.32 2.32 58.3 9.01 81.92 170.6
Assisted Living
Facility............... 5 22,365,612 1.85 1.51 68.3 7.42 91.67 68.7
Nursing Home, Skilled .. 2 16,348,976 1.35 1.98 56.4 7.71 83.96 128.7
- ------------------------ ---------- -------------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................... 10 91,087,010 7.52 2.06 60.4 8.39 84.68 138
Multifamily.............. 12 58,835,141 4.86 1.35 68.6 7.93 96.77 269.7
Self-Storage............. 7 17,462,734 1.44 1.48 68.5 7.25 87.06 63,962.9
OTHER
Underlying Fee.......... 1 15,000,000 1.24 1.45 52.3 6.91 NAP NAP
Mobile Home Park........ 5 14,126,724 1.17 1.70 68.7 6.74 95.19 354.3
Child Care.............. 12 6,446,598 0.53 1.86 57.1 7.75 100.00 7,915.4
Auto Dealership......... 1 1,493,092 0.12 1.62 47.4 8.44 100.00 22,251.0
======================== ========== ============== ========== ========== ========== ========== ========== ==========
Total/Weighted Avg....... 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34% 77.61%
========== ============== ========== ========== ========== ========== ==========
</TABLE>
A-17
<PAGE>
DISTRIBUTION OF PROPERTY TYPES
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE
OF WEIGHTED
AGGREGATE AGGREGATE WEIGHTED AVERAGE WEIGHTED
NUMBER OF CUT-OFF CURRENT AVERAGE CUT-OFF AVERAGE WEIGHTED WEIGHTED
MORTGAGED DATE PRINCIPAL UNDERWRITTEN DATE MORTGAGE AVERAGE AVERAGE
PROPERTY TYPE PROPERTIES BALANCE BALANCE DSCR LTV RATIO RATE OCCUPANCY UNITS
- --------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily........... 60 $235,241,688 36.18% 1.41x 71.8% 7.53% 94.09% 181.8
RETAIL:
Unanchored Retail ... 31 110,584,642 17.01 1.47 72.6 7.22 93.28 96,257.9
Anchored Retail...... 19 113,077,504 17.39 1.40 76.1 7.29 95.03 172,547.0
- --------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................ 50 223,662,146 34.40 1.44 74.4 7.26 94.17 134,827.6
Office................ 23 86,026,039 13.23 1.50 69.6 7.27 96.36 80,067.3
LODGING:
- -----------------------------------------------------------------------------------------------------------------
Full Service Hotel .. 2 35,063,629 5.39 1.25 80.0 8.09 65.38 335.6
Limited Svc. Hotel .. 6 22,328,477 3.43 1.28 71.8 7.83 71.27 128.2
- --------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................ 8 57,392,106 8.83 1.26 76.8 7.99 67.67 254.9
Industrial............ 14 36,423,071 5.60 1.45 70.8 7.34 99.75 141,544.3
Parking Garage........ 1 4,433,463 0.68 1.13 71.5 7.41 100.00 820
HEALTHCARE:
- -----------------------------------------------------------------------------------------------------------------
Nursing Home,
Skilled............. 1 2,515,134 0.39 1.38 50.3 7.88 84.00 92
- --------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL................ 1 2,515,134 0.39 1.38 50.3 7.88 84.00 92
OTHER
Mixed Use............ 2 1,856,989 0.29 1.33 69.3 7.79 100.00 28,150.1
Self-Storage......... 1 1,571,860 0.24 1.27 76.7 7.47 89.00 32,357.0
Child Care........... 2 1,098,131 0.17 1.35 69.1 7.96 100.00 7,887.4
===================== ========== ========== ========== ========== ========== ========== ========== ==========
Total/Weighted Avg. .. 162 $650,220,628 100.00% 1.42x 72.7% 7.43% 92.42%
========== ========== ========== ========== ========== ========== ==========
</TABLE>
A-18
<PAGE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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>
1.00x -1.10x .. 5 1.55% 5 $ 10,109,784 0.54% 1.04x 88.3% 6.89%
1.11x -1.20x .. 12 3.73 12 75,489,362 4.06 1.17 77.8 7.68
1.21x -1.30x .. 56 17.39 63 243,577,366 13.08 1.27 74.2 7.41
1.31x -1.40x .. 92 28.57 123 604,416,910 32.47 1.37 70.9 7.51
1.41x -1.50x .. 58 18.01 67 229,829,840 12.35 1.45 71.5 7.24
1.51x -1.60x .. 38 11.80 45 230,133,557 12.36 1.55 66.9 7.22
1.61x -1.70x .. 30 9.32 32 78,939,807 4.24 1.66 69.7 7.36
1.71x -1.80x .. 10 3.11 10 20,199,498 1.09 1.75 67.8 7.42
1.81x -1.90x .. 7 2.17 7 37,696,554 2.03 1.82 61.3 7.92
1.91x -2.00x .. 5 1.55 41 170,698,662 9.17 1.94 57.2 6.93
2.01x -2.10x .. 1 0.31 8 104,748,392 5.63 2.06 61.7 6.77
2.11x -2.20x .. 1 0.31 1 8,000,000 0.43 2.14 49.4 7.22
2.21x -2.30x .. 3 0.93 3 20,305,133 1.09 2.27 56.1 8.62
2.31x -2.40x .. 1 0.31 1 1,669,271 0.09 2.31 59.2 7.79
2.41x -2.50x .. 1 0.31 1 1,395,552 0.07 2.41 45.8 7.13
2.51x -2.85x .. 2 0.62 2 24,308,138 1.31 2.81 60.1 9.06
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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>
1.00x -1.10x . 5 2.69% 5 $ 10,109,784 0.83% 1.04x 88.3% 6.89%
1.11x -1.20x .. 7 3.76 7 43,062,222 3.56 1.17 78.0 7.92
1.21x -1.30x .. 38 20.43 41 149,159,558 12.31 1.27 72.6 7.28
1.31x -1.40x .. 48 25.81 59 336,487,424 27.78 1.37 70.6 7.40
1.41x -1.50x .. 28 15.05 36 128,249,471 10.59 1.44 69.1 7.37
1.51x -1.60x .. 17 9.14 23 138,132,686 11.40 1.54 63.5 7.22
1.61x -1.70x .. 19 10.22 21 46,145,771 3.81 1.66 67.2 7.56
1.71x -1.80x .. 7 3.76 7 10,951,378 0.90 1.76 70.0 7.56
1.81x -1.90x .. 4 2.15 4 25,873,755 2.14 1.81 59.3 8.26
1.91x -2.00x .. 5 2.69 41 170,698,662 14.09 1.94 57.2 6.93
2.01x -2.10x .. 1 0.54 8 104,748,392 8.65 2.06 61.7 6.77
2.21x -2.30x .. 3 1.61 3 20,305,133 1.68 2.27 56.1 8.62
2.31x -2.40x .. 1 0.54 1 1,669,271 0.14 2.31 59.2 7.79
2.41x -2.50x .. 1 0.54 1 1,395,552 0.12 2.41 45.8 7.13
2.51x -2.85x .. 2 1.08 2 24,308,138 2.01 2.81 60.1 9.06
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ........ 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-19
<PAGE>
DISTRIBUTION OF UNDERWRITTEN DEBT SERVICE COVERAGE RATIOS
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.26 76.7 7.62
1.31x -1.40x .. 45 32.85 64 267,929,486 41.21 1.36 71.4 7.65
1.41x -1.50x .. 30 21.90 31 101,580,369 15.62 1.47 74.6 7.07
1.51x -1.60x .. 21 15.33 22 92,000,870 14.15 1.55 72.2 7.23
1.61x -1.70x .. 11 8.03 11 32,794,036 5.04 1.65 73.2 7.07
1.71x -1.80x .. 3 2.19 3 9,248,120 1.42 1.75 65.3 7.25
1.81x -1.90x .. 3 2.19 3 11,822,799 1.82 1.84 65.7 7.19
2.11x -2.20x .. 1 0.73 1 8,000,000 1.23 2.14 49.4 7.22
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF MORTGAGE INTEREST RATES
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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>
6.0001% -6.2500% . 2 0.62% 2 $ 9,514,000 0.51% 1.68x 62.7% 6.17%
6.2501% -6.5000% . 2 0.62 2 16,189,014 0.87 1.44 74.3 6.40
6.5001% -6.7500% . 2 0.62 2 51,050,000 2.74 1.53 56.0 6.74
6.7501% -7.0000% . 34 10.56 70 405,382,348 21.78 1.80 64.2 6.87
7.0001% -7.2500% . 89 27.64 98 399,920,819 21.48 1.42 72.1 7.12
7.2501% -7.5000% . 96 29.81 108 490,853,510 26.37 1.39 72.7 7.36
7.5001% -7.7500% . 48 14.91 59 161,061,476 8.65 1.52 68.6 7.62
7.7501% -8.0000% . 26 8.07 34 64,001,571 3.44 1.52 70.2 7.86
8.0001% -8.2500% . 10 3.11 19 56,256,804 3.02 1.30 74.5 8.09
8.2501% -8.5000% . 8 2.48 22 168,362,622 9.04 1.43 63.6 8.45
8.5001% -8.7500% . 2 0.62 2 4,017,112 0.22 1.39 73.5 8.57
8.7501% -9.0000% . 1 0.31 1 3,470,313 0.19 1.23 73.1 8.83
9.2501% -9.5000% . 2 0.62 2 31,438,237 1.69 2.66 59.5 9.47
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ........... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-20
<PAGE>
DISTRIBUTION OF MORTGAGE INTEREST RATES
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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>
6.0001% -6.2500% . 2 1.08% 2 $ 9,514,000 0.79% 1.68x 62.7% 6.17%
6.2501% -6.5000% . 1 0.54 1 4,350,000 0.36 1.48 75.0 6.49
6.5001% -6.7500% . 2 1.08 2 51,050,000 4.21 1.53 56.0 6.74
6.7501% -7.0000% . 15 8.06 50 307,217,854 25.36 1.90 59.9 6.85
7.0001% -7.2500% . 36 19.35 44 200,982,659 16.59 1.38 71.7 7.10
7.2501% -7.5000% . 59 31.72 67 327,735,172 27.06 1.40 71.4 7.36
7.5001% -7.7500% . 33 17.74 44 126,961,153 10.48 1.55 67.5 7.63
7.7501% -8.0000% . 21 11.29 27 51,517,775 4.25 1.52 71.7 7.85
8.0001% -8.2500% . 5 2.69 10 9,883,946 0.82 1.46 68.8 8.08
8.2501% -8.5000% . 7 3.76 7 83,158,975 6.87 1.45 65.7 8.40
8.5001% -8.7500% . 2 1.08 2 4,017,112 0.33 1.39 73.5 8.57
8.7501% -9.0000% . 1 0.54 1 3,470,313 0.29 1.23 73.1 8.83
9.2501% -9.5000% . 2 1.08 2 31,438,237 2.60 2.66 59.5 9.47
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF MORTGAGE INTEREST RATES
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.50 77.5 6.90
7.0001% -7.2500% . 53 38.69 54 198,938,160 30.60 1.46 72.6 7.15
7.2501% -7.5000% . 37 27.01 41 163,118,337 25.09 1.36 75.4 7.37
7.5001% -7.7500% . 15 10.95 15 34,100,323 5.24 1.38 72.6 7.59
7.7501% -8.0000% . 5 3.65 7 12,483,796 1.92 1.50 64.0 7.89
8.0001% -8.2500% . 5 3.65 9 46,372,858 7.13 1.27 75.7 8.09
8.2501% -8.5000% . 2 1.46 15 85,203,646 13.10 1.40 61.7 8.49
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ............ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-21
<PAGE>
DISTRIBUTION OF AMORTIZATION TYPES
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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........... 248 77.02% 308 $1,198,449,586 64.38% 1.45x 70.4% 7.49%
Hyperamortizing .. 19 5.90 58 509,858,596 27.39 1.73 64.5 7.09
Fully Amortizing . 55 17.08 55 153,209,643 8.23 1.43 70.5 7.40
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF AMORTIZATION TYPES
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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........... 116 62.37% 150 $ 583,962,934 48.21% 1.49x 68.4% 7.53%
Hyperamortizing .. 15 8.06 54 474,124,619 39.14 1.76 63.5 7.08
Fully Amortizing . 55 29.57 55 153,209,643 12.65 1.43 70.5 7.40
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF AMORTIZATION TYPES
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.34 78.9 7.31
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ........... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-22
<PAGE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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..... 2 0.62% 2 $ 23,000,000 1.24% 1.69x 51.3% 7.02%
144 - 180 Months . 7 2.17 7 14,793,326 0.79 1.40 65.9 7.22
181 - 240 Months . 54 16.77 65 144,892,457 7.78 1.45 69.5 7.46
241 - 300 Months . 104 32.30 153 626,385,216 33.65 1.63 65.3 7.41
301 - 324 Months . 3 0.93 17 116,284,819 6.25 1.39 62.1 8.42
325 - 360 Months . 152 47.21 177 936,162,007 50.29 1.48 72.3 7.21
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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 0.54% 1 $ 15,000,000 1.24% 1.45x 52.3% 6.91%
144 - 180 Months . 6 3.23 6 10,359,863 0.86 1.51 63.4 7.15
181 - 240 Months . 53 28.49 64 142,903,078 11.80 1.44 69.7 7.46
241 - 300 Months . 69 37.10 112 509,972,358 42.10 1.70 63.8 7.35
301 - 324 Months . 2 1.08 2 31,286,395 2.58 1.38 61.6 8.46
325 - 360 Months . 55 29.57 74 501,775,503 41.42 1.54 69.7 7.24
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34 %
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF ORIGINAL AMORTIZATION TERM
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.13 71.5 7.41
181 - 240 Months . 1 0.73 1 1,989,379 0.31 1.71 59.4 7.12
241 - 300 Months . 35 25.55 41 116,412,858 17.90 1.36 72.1 7.71
301 - 324 Months . 2 1.46 15 84,998,424 13.07 1.39 62.2 8.41
325 - 360 Months . 97 70.80 103 434,386,504 66.81 1.43 75.4 7.17
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-23
<PAGE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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..... 3 0.93% 3 $ 70,000,000 3.76% 1.60x 52.9% 6.84%
131 - 150 Months .. 1 0.31 1 1,180,618 0.06 1.68 58.3 8.17
171 - 190 Months .. 6 1.86 6 13,612,708 0.73 1.37 66.5 7.14
191 - 210 Months .. 1 0.31 1 1,657,162 0.09 1.20 78.9 6.97
211 - 230 Months .. 4 1.24 4 7,957,917 0.43 1.21 84.2 7.67
231 - 250 Months .. 51 15.84 62 141,419,063 7.60 1.46 68.7 7.44
251 - 270 Months .. 2 0.62 2 11,303,406 0.61 1.32 77.1 7.33
271 - 290 Months .. 5 1.55 5 18,966,033 1.02 1.34 75.8 8.21
291 - 310 Months .. 94 29.19 143 542,974,093 29.17 1.66 65.7 7.45
311 - 330 Months .. 3 0.93 17 116,284,819 6.25 1.39 62.1 8.42
331 - 360 Months .. 152 47.20 177 936,162,007 50.29 1.48 72.3 7.21
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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...... 2 1.08% 2 $ 62,000,000 5.12% 1.53x 53.4% 6.79%
131 - 150 Months . 1 0.54 1 1,180,618 0.10 1.68 58.3 8.17
171 - 190 Months . 5 2.69 5 9,179,245 0.76 1.49 64.1 7.01
191 - 210 Months . 1 0.54 1 1,657,162 0.14 1.20 78.9 6.97
211 - 230 Months . 4 2.15 4 7,957,917 0.66 1.21 84.2 7.67
231 - 250 Months . 50 26.88 61 139,429,684 11.51 1.46 68.8 7.45
251 - 270 Months . 2 1.08 2 11,303,406 0.93 1.32 77.1 7.33
271 - 290 Months . 5 2.69 5 18,966,033 1.57 1.34 75.8 8.21
291 - 310 Months . 59 31.72 102 426,561,235 35.22 1.74 63.9 7.38
311 - 330 Months . 2 1.08 2 31,286,395 2.58 1.38 61.6 8.46
331 - 360 Months . 55 29.57 74 501,775,503 41.42 1.54 69.7 7.24
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-24
<PAGE>
DISTRIBUTION OF REMAINING AMORTIZATION TERM
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.13 71.5 7.41
231 - 250 Months . 1 0.73 1 1,989,379 0.31 1.71 59.4 7.12
291 - 310 Months . 35 25.55 41 116,412,858 17.90 1.36 72.1 7.71
311 - 330 Months . 2 1.46 15 84,998,424 13.07 1.39 62.2 8.41
331 - 360 Months . 97 70.80 103 434,386,504 66.81 1.43 75.4 7.17
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.............. 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE OF WEIGHTED WEIGHTED WEIGHTED
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 .. 253 78.57% 351 $1,563,178,208 83.97% 1.55x 68.3% 7.38%
121 - 180 Months . 20 6.21 21 155,489,837 8.35 1.38 72.4 7.22
181 - 240 Months . 46 14.29 46 127,401,004 6.84 1.43 70.3 7.45
241 - 260 Months . 3 0.93 3 15,448,776 0.83 1.34 76.2 7.22
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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 . 118 63.44% 190 $ 916,050,656 75.63% 1.65x 65.2% 7.34%
121 - 180 Months . 19 10.22 20 152,396,761 12.58 1.38 72.2 7.22
181 - 240 Months . 46 24.73 46 127,401,004 10.52 1.43 70.3 7.45
241 - 260 Months . 3 1.61 3 15,448,776 1.28 1.34 76.2 7.22
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-25
<PAGE>
DISTRIBUTION OF ORIGINAL TERM TO MATURITY
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.34 79.3 7.36
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF REMAINING TERM TO MATURITY
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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>
51 - 70 Months ... 1 0.31% 1 $ 18,780,204 1.01% 1.17x 76.7% 8.32%
71 - 90 Months ... 3 0.93 3 16,435,134 0.88 1.27 78.5 7.27
91 - 110 Months .. 4 1.24 4 20,645,959 1.11 1.34 75.8 7.93
111 - 130 Months . 249 77.33 348 1,609,291,139 86.45 1.55 68.2 7.35
131 - 150 Months . 2 0.62 2 4,178,056 0.22 1.39 70.6 7.18
151 - 170 Months . 2 0.62 2 6,689,339 0.36 1.21 75.2 8.70
171 - 190 Months . 12 3.73 12 42,648,215 2.29 1.35 73.1 7.25
191 - 210 Months . 1 0.31 1 1,657,162 0.09 1.20 78.9 6.97
211 - 230 Months . 4 1.24 4 7,957,917 0.43 1.21 84.2 7.67
231 - 250 Months . 43 13.35 43 123,927,610 6.66 1.44 69.4 7.42
251 - 270 Months . 1 0.31 1 9,307,092 0.50 1.32 78.9 7.26
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............ 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-26
<PAGE>
DISTRIBUTION OF REMAINING TERM TO MATURITY
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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>
51 - 70 Months.... 1 0.54% 1 $ 18,780,204 1.55% 1.17x 76.7% 8.32%
71 - 90 Months.... 2 1.08 2 5,755,534 0.48 1.30 76.8 7.16
91 - 110 Months . 3 1.61 3 13,004,278 1.07 1.33 77.3 8.16
111 - 120 Months .. 115 61.83 188 977,391,791 80.69 1.64 65.4 7.29
131 - 150 Months .. 2 1.08 2 4,178,056 0.34 1.39 70.6 7.18
151 - 170 Months . 2 1.08 2 6,689,339 0.55 1.21 75.2 8.70
171 - 190 Months . 12 6.45 12 42,648,215 3.52 1.35 73.1 7.25
191 - 210 Months . 1 0.54 1 1,657,162 0.14 1.20 78.9 6.97
211 - 230 Months . 4 2.15 4 7,957,917 0.66 1.21 84.2 7.67
231 - 250 Months . 43 23.12 43 123,927,610 10.23 1.44 69.4 7.42
251 - 270 Months . 1 0.54 1 9,307,092 0.77 1.32 78.9 7.26
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............. 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34 %
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF REMAINING TERM TO MATURITY
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.36 73.1 7.54
111 - 130 Months . 135 98.54 160 631,899,347 97.18 1.42 72.6 7.43
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............ 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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%........ 7 2.17% 7 $ 18,402,755 0.99% 2.07x 47.6% 7.16%
50.1% - 60.0%........ 24 7.45 60 321,451,506 17.27 1.78 56.1 7.22
60.1% - 65.0%........ 33 10.25 61 351,671,704 18.89 1.73 61.9 7.65
65.1% - 70.0%........ 44 13.66 63 145,240,871 7.80 1.46 67.9 7.35
70.1% - 75.0%........ 121 37.58 134 562,464,197 30.22 1.41 72.5 7.32
75.1% - 80.0%........ 70 21.74 73 346,743,839 18.63 1.36 78.3 7.32
80.1% - 85.0%........ 15 4.66 15 75,009,659 4.03 1.29 81.2 7.24
85.1% - 90.0%........ 6 1.86 6 36,959,182 1.99 1.29 86.9 7.72
95.1% - 100.0%....... 2 0.62 2 3,574,111 0.19 1.00 97.0 7.04
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-27
<PAGE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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% .. 6 3.23% 6 $ 10,402,755 0.86% 2.01x 46.2% 7.11%
50.1% - 60.0% .. 16 8.60 52 295,315,847 24.38 1.81 56.0 7.20
60.1% - 65.0% .. 24 12.90 38 252,833,709 20.87 1.85 62.1 7.40
65.1% - 70.0% .. 25 13.44 35 78,709,581 6.50 1.41 68.0 7.35
70.1% - 75.0% .. 78 41.94 91 398,239,293 32.88 1.41 72.5 7.33
75.1% - 80.0% .. 27 14.52 27 140,323,359 11.58 1.32 78.0 7.56
80.1% - 85.0% .. 7 3.76 7 30,423,467 2.51 1.22 81.3 7.33
85.1% - 90.0% .. 1 0.54 1 1,475,074 0.12 1.00 86.8 6.84
95.1% - 100.0% . 2 1.08 2 3,574,111 0.30 1.00 97.0 7.04
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg......... 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF CUT-OFF DATE LTV RATIOS
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.47 56.8 7.52
60.1% - 65.0% .. 10 7.30 23 98,837,995 15.20 1.42 61.5 8.30
65.1% - 70.0% .. 19 13.87 28 66,531,290 10.23 1.53 67.7 7.35
70.1% - 75.0% .. 43 31.39 43 164,224,904 25.26 1.40 72.5 7.28
75.1% - 80.0% .. 43 31.39 46 206,420,479 31.75 1.39 78.4 7.16
80.1% - 85.0% .. 8 5.84 8 44,586,193 6.86 1.34 81.1 7.18
85.1% - 90.0% .. 5 3.65 5 35,484,108 5.46 1.30 86.9 7.75
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-28
<PAGE>
DISTRIBUTION OF YEAR OF ORIGINATION
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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 1.34 66.1 8.17
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 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>
PERCENTAGE 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 1.31 69.0 7.99
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ........ 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>
PERCENTAGE 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 1.39 62.2 8.42
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-29
<PAGE>
DISTRIBUTION OF YEAR OF MATURITY
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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 1.27 78.5 7.27
2007........... 4 1.24 4 20,645,959 1.11 1.34 75.8 7.93
2008........... 249 77.33 348 1,609,291,139 86.45 1.55 68.2 7.35
2010........... 2 0.62 2 4,178,056 0.22 1.39 70.6 7.18
2012........... 2 0.62 2 6,689,339 0.36 1.21 75.2 8.70
2013........... 12 3.73 12 42,648,215 2.29 1.35 73.1 7.25
2016........... 2 0.62 2 3,293,306 0.18 1.36 75.8 7.49
2017........... 4 1.24 4 11,877,104 0.64 1.18 81.8 7.38
2018........... 40 12.42 40 112,230,594 6.03 1.46 68.9 7.45
2019........... 3 0.93 3 15,448,776 0.83 1.34 76.2 7.22
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF YEAR OF MATURITY
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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 1.30 76.8 7.16
2007 .......... 3 1.61 3 13,004,278 1.07 1.33 77.3 8.16
2008 .......... 115 61.83 188 977,391,791 80.69 1.64 65.4 7.29
2010 .......... 2 1.08 2 4,178,056 0.34 1.39 70.6 7.18
2012 .......... 2 1.08 2 6,689,339 0.55 1.21 75.2 8.70
2013 .......... 12 6.45 12 42,648,215 3.52 1.35 73.1 7.25
2016 .......... 2 1.08 2 3,293,306 0.27 1.36 75.8 7.49
2017 .......... 4 2.15 4 11,877,104 0.98 1.18 81.8 7.38
2018 .......... 40 21.51 40 112,230,594 9.27 1.46 68.9 7.45
2019 .......... 3 1.61 3 15,448,776 1.28 1.34 76.2 7.22
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg. ........ 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-30
<PAGE>
DISTRIBUTION OF YEAR OF MATURITY
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.36 73.1 7.54
2008........... 135 98.54 160 631,899,347 97.18 1.42 72.6 7.43
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg........... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF SEASONING
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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.. 276 85.71% 358 $1,532,635,601 82.33% 1.56x 69.3% 7.27%
7 - 12 Months 42 13.04 59 295,279,721 15.86 1.41 65.2 7.77
13 - 16 Months 4 1.24 4 33,602,503 1.81 1.22 76.9 8.43
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 322 100.00% 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF SEASONING
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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 1.63 64.8 7.63
13 - 16 Months . 4 2.15 4 33,602,503 2.77 1.22 76.9 8.43
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg............ 186 100.00% 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
DISTRIBUTION OF SEASONING
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.46 65.4 7.88
----------- ---------- ------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg.......... 137 100.00% 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
=========== ========== ============ ============== =============== ============== ============== ==========
</TABLE>
A-31
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
AGGREGATE
<TABLE>
<CAPTION>
PERCENTAGE 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 $ 294,180,915 15.80% 1.51x 68.5% 7.53%
New York............. 30 163,395,938 8.78 1.59 67.4 7.71
Texas................ 48 157,647,607 8.47 1.65 70.2 7.21
Virginia............. 22 127,968,671 6.87 1.42 72.3 7.20
Ohio................. 19 98,304,399 5.28 1.46 71.4 7.58
Washington........... 13 83,788,247 4.50 1.63 64.3 7.19
Florida.............. 25 67,734,586 3.64 1.41 74.2 7.39
Oregon............... 8 62,941,850 3.38 1.68 63.1 7.21
Maryland............. 14 58,684,345 3.15 1.45 69.3 7.43
District of
Columbia............ 2 52,315,613 2.81 1.52 55.6 6.77
Michigan............. 9 52,148,068 2.80 1.41 70.1 7.64
Pennsylvania......... 5 50,654,823 2.72 1.55 71.0 7.23
Tennessee............ 12 44,497,695 2.39 1.45 72.4 7.28
Wisconsin............ 4 40,135,242 2.16 1.67 71.4 6.93
Oklahoma............. 3 39,820,432 2.14 1.38 74.5 7.23
Puerto Rico.......... 2 38,377,755 2.06 1.62 66.9 7.89
New Mexico........... 23 37,246,054 2.00 1.52 72.2 7.54
Massachusetts........ 13 35,148,109 1.89 1.55 67.0 7.12
Georgia.............. 10 34,245,325 1.84 1.55 70.3 7.34
Louisiana............ 9 33,964,040 1.82 1.46 73.9 7.33
Connecticut.......... 11 28,842,897 1.55 1.54 63.6 7.28
Illinois............. 7 25,801,584 1.39 1.57 66.9 7.08
Arizona.............. 6 22,140,526 1.19 1.36 67.2 7.68
Kentucky............. 9 20,300,455 1.09 1.45 72.4 7.52
Minnesota............ 9 20,025,695 1.08 1.46 72.2 7.28
Idaho................ 3 19,319,783 1.04 1.85 59.5 6.94
Colorado............. 8 19,069,730 1.02 1.50 71.6 7.12
Arkansas............. 5 15,919,238 0.86 1.42 69.5 7.63
Indiana.............. 4 14,654,090 0.79 1.44 65.3 8.14
Missouri............. 2 13,463,766 0.72 1.95 62.7 6.90
Nebraska............. 7 12,777,182 0.69 1.37 66.8 7.64
Utah................. 4 11,606,330 0.62 1.79 60.0 7.16
South Carolina....... 4 10,090,706 0.54 1.44 72.7 7.37
New Hampshire........ 2 8,082,073 0.43 1.26 71.5 6.35
Iowa................. 3 7,384,419 0.40 1.77 61.1 7.09
Nevada............... 3 6,919,163 0.37 1.46 61.6 7.28
Alabama.............. 9 5,949,607 0.32 1.61 62.9 7.74
Rhode Island......... 3 5,765,973 0.31 1.46 75.1 7.15
Vermont.............. 1 5,161,627 0.28 1.32 78.6 7.05
Kansas............... 2 3,978,438 0.21 1.40 64.7 7.58
Mississippi.......... 3 3,334,171 0.18 1.38 74.3 7.21
West Virginia........ 1 2,290,025 0.12 1.35 76.3 7.06
North Carolina....... 1 2,094,922 0.11 1.50 67.6 7.76
New Jersey........... 1 1,998,409 0.11 1.32 64.5 7.15
Delaware............. 1 1,347,306 0.07 1.69 72.8 7.71
------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg................ 421 $1,861,517,825 100.00% 1.53x 68.8% 7.37%
============ ============== =============== ============== ============== ==========
</TABLE>
A-32
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
GROUP 1
<TABLE>
<CAPTION>
PERCENTAGE 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 $ 164,088,536 13.55% 1.61x 66.6% 7.50%
Virginia............. 19 118,342,168 9.77 1.42 71.8 7.18
New York............. 21 109,492,106 9.04 1.71 64.8 7.92
Texas................ 26 101,448,230 8.38 1.74 66.9 7.16
Washington........... 10 68,086,173 5.62 1.66 62.7 7.19
Oregon............... 6 56,680,546 4.68 1.71 63.8 7.09
District of
Columbia............ 2 52,315,613 4.32 1.52 55.6 6.77
Michigan............. 6 46,713,946 3.86 1.41 69.9 7.68
Puerto Rico.......... 2 38,377,755 3.17 1.62 66.9 7.89
Ohio................. 9 37,593,132 3.10 1.72 64.2 7.14
Oklahoma............. 1 32,909,936 2.72 1.40 73.1 7.27
Florida.............. 14 32,479,827 2.68 1.42 74.1 7.47
Massachusetts........ 10 29,549,314 2.44 1.57 65.1 7.10
New Mexico........... 19 29,389,213 2.43 1.60 69.3 7.51
Maryland............. 10 22,979,369 1.90 1.41 69.8 7.51
Tennessee............ 9 21,773,154 1.80 1.49 68.3 7.56
Pennsylvania......... 3 21,506,001 1.78 1.84 59.1 7.08
Illinois............. 5 21,286,193 1.76 1.53 67.8 7.12
Louisiana............ 4 17,863,630 1.47 1.33 74.8 7.30
Georgia.............. 5 17,132,700 1.41 1.49 71.8 7.32
Colorado............. 7 16,431,195 1.36 1.51 71.2 7.08
Kentucky............. 8 16,106,509 1.33 1.49 72.1 7.65
Idaho................ 2 15,735,058 1.30 1.94 56.7 6.89
Arizona.............. 4 15,157,491 1.25 1.34 69.9 7.37
Connecticut.......... 9 15,135,208 1.25 1.33 66.5 7.30
Wisconsin............ 1 13,551,996 1.12 1.94 56.7 6.89
Missouri............. 2 13,463,766 1.11 1.95 62.7 6.90
Utah................. 3 10,260,104 0.85 1.82 59.4 7.06
Arkansas............. 3 9,374,872 0.77 1.36 73.0 7.60
New Hampshire........ 2 8,082,073 0.67 1.26 71.5 6.35
South Carolina....... 3 8,021,714 0.66 1.48 71.7 7.28
Nebraska............. 2 6,117,250 0.51 1.40 69.8 7.14
Iowa................. 2 5,429,304 0.45 1.94 56.7 6.89
Nevada............... 2 4,929,784 0.41 1.36 62.5 7.35
Alabama.............. 5 4,014,193 0.33 1.73 61.7 7.61
Indiana.............. 1 3,662,008 0.30 1.56 74.7 7.53
Mississippi.......... 2 2,374,905 0.20 1.34 72.0 7.16
North Carolina....... 1 2,094,922 0.17 1.50 67.6 7.76
Delaware............. 1 1,347,306 0.11 1.69 72.8 7.71
------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted
Avg................ 259 $1,211,297,197 100.00% 1.59x 66.7% 7.34%
============ ============== =============== ============== ============== ==========
</TABLE>
A-33
<PAGE>
DISTRIBUTION OF MORTGAGED PROPERTIES BY STATE
GROUP 2
<TABLE>
<CAPTION>
PERCENTAGE 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 1.29 75.9 7.85
Texas ............... 22 56,199,377 8.64 1.49 76.1 7.30
New York ............ 9 53,903,832 8.29 1.34 72.5 7.29
Maryland ............ 4 35,704,975 5.49 1.48 68.9 7.38
Florida ............. 11 35,254,758 5.42 1.39 74.3 7.31
Pennsylvania ........ 2 29,148,822 4.48 1.33 79.9 7.34
Wisconsin ........... 3 26,583,246 4.09 1.52 78.8 6.94
Tennessee ........... 3 22,724,540 3.49 1.41 76.4 7.01
Minnesota ........... 9 20,025,695 3.08 1.46 72.2 7.28
Georgia ............. 5 17,112,626 2.63 1.61 68.8 7.36
Louisiana ........... 5 16,100,410 2.48 1.60 73.0 7.37
Washington .......... 3 15,702,074 2.41 1.49 71.4 7.20
Connecticut ......... 2 13,707,689 2.11 1.78 60.3 7.26
Indiana ............. 3 10,992,083 1.69 1.40 62.1 8.34
Virginia ............ 3 9,626,503 1.48 1.42 78.6 7.42
New Mexico .......... 4 7,856,841 1.21 1.23 83.1 7.65
Arizona ............. 2 6,983,035 1.07 1.41 61.3 8.35
Oklahoma ............ 2 6,910,497 1.06 1.29 80.9 7.01
Nebraska ............ 5 6,659,932 1.02 1.35 64.1 8.10
Arkansas ............ 2 6,544,366 1.01 1.51 64.5 7.67
Oregon .............. 2 6,261,304 0.96 1.39 56.8 8.25
Rhode Island ........ 3 5,765,973 0.89 1.46 75.1 7.15
Massachusetts ....... 3 5,598,795 0.86 1.40 77.1 7.19
Michigan ............ 3 5,434,123 0.84 1.42 71.7 7.26
Vermont ............. 1 5,161,627 0.79 1.32 78.6 7.05
Illinois ............ 2 4,515,392 0.69 1.76 62.9 6.93
Kentucky ............ 1 4,193,946 0.65 1.30 73.6 7.02
Kansas .............. 2 3,978,438 0.61 1.40 64.7 7.58
Idaho ............... 1 3,584,725 0.55 1.43 71.7 7.15
Colorado ............ 1 2,638,535 0.41 1.43 73.5 7.32
West Virginia ....... 1 2,290,025 0.35 1.35 76.3 7.06
South Carolina ...... 1 2,068,993 0.32 1.29 76.6 7.71
New Jersey .......... 1 1,998,409 0.31 1.32 64.5 7.15
Nevada .............. 1 1,989,379 0.31 1.71 59.4 7.12
Iowa ................ 1 1,955,115 0.30 1.30 73.2 7.63
Alabama ............. 4 1,935,414 0.30 1.36 65.3 8.03
Utah ................ 1 1,346,225 0.21 1.57 64.1 7.88
Mississippi ......... 1 959,266 0.15 1.49 79.9 7.35
------------ -------------- --------------- -------------- -------------- ----------
Total/Weighted Avg. 162 $650,220,628 100.00% 1.42x 72.7% 7.43%
============ ============== =============== ============== ============== ==========
</TABLE>
A-34
<PAGE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
AGGREGATE
<TABLE>
<CAPTION>
WEIGHTED
WEIGHTED AVERAGE WEIGHTED
PERCENTAGE 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% 28.8 128.3 129.2 2.5
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 Avg. . 322 $1,861,517,825 100.00% 36.0 126.1 126.4 3.9
=========== ============== =============== ============= ============= =============== ==========
</TABLE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
GROUP 1
<TABLE>
<CAPTION>
WEIGHTED
AVERAGE
WEIGHTED ORIGINAL WEIGHTED
PERCENTAGE 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% 27.4 133.5 135.0 2.0
Lockout / Greater of
YM or 1% ............. 69 276,544,950 22.83 40.8 129.2 129.3 5.8
Lockout / 1 Year Open 1 29,312,804 2.42 99.0 111.0 108.0 12.0
----------- -------------- --------------- ------------- ------------- ----------- ----------
Total/Weighted Avg. . 186 $1,211,297,197 100.00% 32.2 132.0 133.0 3.1
=========== ============== =============== ============= ============= =========== ==========
</TABLE>
DISTRIBUTION OF PREPAYMENT RESTRICTIONS
GROUP 2
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
AVERAGE WEIGHTED AVERAGE WEIGHTED
PERCENTAGE 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 Avg. .. 137 $650,220,628 100.00% 43.1 115.2 114.0 5.4
=========== ============== =============== =========== =========== =============== ==========
</TABLE>
A-35
<PAGE>
PREPAYMENT LOCK-OUT/PREPAYMENT PREMIUM ANALYSIS
PERCENTAGE OF MORTGAGE LOANS BY OUTSTANDING PRINCIPAL BALANCE
AGGREGATE
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03 OCT-04 OCT-05 OCT-06 OCT-07
- -------------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <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%
Defeasance........... 0.00% 0.00% 13.51% 68.69% 68.70% 68.87% 69.45% 69.51% 69.70% 66.16%
Greater of YM and 1%. 0.58% 0.58% 1.59% 6.62% 23.32% 23.73% 23.23% 23.91% 24.09% 18.28%
Open................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.32% 0.00% 0.12% 15.50%
TOTAL %.............. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 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
- -------------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OCT-08 OCT-09 OCT-10 OCT-11 OCT-12 OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <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% 0.00%
Defeasance........... 71.54% 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%. 28.46% 28.50% 27.03 26.94% 18.92% 20.33% 19.82% 18.58% 17.39% 3.95% 0.00%
Open................. 0.00% 0.00% 0.00% 0.00% 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% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 137.99 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.35 12.23 1.52
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
</TABLE>
GROUP 1
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03 OCT-04 OCT-05 OCT-06 OCT-07
- -------------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------
<S> <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%
Defeasance........... 0.00% 0.00% 20.79% 74.24% 74.24% 74.48% 75.46% 75.85% 75.89% 74.63%
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
Open................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 0.00% 0.19% 7.37%
TOTAL %.............. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 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
- -------------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OCT-08 OCT-09 OCT-10 OCT-11 OCT-12 OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <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% 0.00%
Defeasance........... 71.54% 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%. 28.46% 28.50% 27.03% 26.94% 18.92% 20.33% 19.82% 18.58% 17.39% 3.95% 0.00%
Open................. 0.00% 0.00% 0.00% 0.00% 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% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 137.99 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.25 12.23 1.52
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
</TABLE>
GROUP 2
<TABLE>
<CAPTION>
OCT-98 OCT-99 OCT-00 OCT-01 OCT-02 OCT-03 OCT-04 OCT-05 OCT-06 OCT-07
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out........... 100% 100% 100% 34.17% 13.85% 13.45% 12.61% 12.79% 12.32% 0.00%
Defeasance........... 0.00% 0.00% 0.00% 58.44% 58.50% 58.57% 58.65% 58.03% 58.56% 51.19%
Greater of YM and 1%. 0.00% 0.00% 0.00% 7.38% 27.64% 27.98% 28.74% 29.18% 29.12% 18.94%
Open................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 29.86%
TOTAL %.............. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 650.22 643.55 636.48 628.78 620.38 611.38 601.79 581.46 570.34 558.34
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OCT-08 OCT-09 OCT-10 OCT-11 OCT-12 OCT-13 OCT-14 OCT-15 OCT-16 OCT-17 OCT-18
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <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% 0.00%
Defeasance........... 0.00% 0.00% 0.00% 0.00% 0.00% 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% 0.00% 0.00% 0.00% 0.00% 0.00%
Open................. 0.00% 0.00% 0.00% 0.00% 0.00% 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% 100.00% 100.00% 100.00% 100.00% 100.00%
Aggregate Bal........ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
</TABLE>
A-36
<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) Except for the Americold Pool Loan, 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
Mortgage 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.
(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) Except for 9 Mortgage Loans, representing approximately 2.3% of
the Initial Pool Balance, 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
principal amount of the related Mortgaged Loan and 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. 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 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.)
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(xiv) One or more environmental site assessments (or an update of a
previously conducted assessment) were performed with respect to the
related Mortgaged Property (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 and the AIMCO Multifamily Loan,
such Mortgage Loan is not cross-collateralized with a mortgage loan
outside the Mortgage Pool.
(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 the Americold Pool Loan, and 2 Mortgage Loans,
representing 8.4% 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 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.
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(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 constitute 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 a Hyper-Amortization 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 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.
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(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.
(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 any material
fraud, intentional and material misrepresentation by the related borrower
in connection with such Mortgage Loan or violations of applicable
environmental laws by the borrower.
(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
B-5
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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 provide 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 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;
B-6
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(D) Except for the Americold Pool Loan and 1 Mortgage Loan
representing 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 the Americold Pool Loan and the EPT Pool Loan and
1 Mortgage Loan representing 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 the Americold Pool Loan and 2 Mortgage Loans
representing 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 a 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 the EPT Pool Loan and 3 Mortgage Loans
representing 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 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 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 contain
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 Representing Party and
will inure to the benefit of the Purchaser 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.
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(B) To the best of the Representing 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) Except for 6 Mortgage Loans, representing approximately 0.4%
of the Initial Pool Balance, every obligation associated with
managing, owning, developing and operating the Mortgaged
Property, including, but not limited to, the costs associated
with utilities, taxes, insurance, capital and structural
improvements, maintenance and repairs is an obligation of the
Tenant.
(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.
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(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 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.
(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.
(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.
B-9
<PAGE>
(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 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 an "Healthcare
Operator"), 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, 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) 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; 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.
B-10
<PAGE>
(F) Based on representations by the borrower, 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, no 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, no Healthcare Facility has received a
"Substandard Quality of Care" (or equivalent) violation, and
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 Representing
Party's knowledge received during the last three calendar
years, and to the Representing 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.
B-11
<PAGE>
(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.
(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 of reimbursement for services from
any Medicare, Medicaid or third party payor program.
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.
"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 Custodian.
"Mortgage Loan Schedule" means a schedule of Mortgage Loans delivered to
the Custodian.
"Person" means any individual, partnership, corporation, limited liability
company, joint venture, trust or other entity.
B-12
<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
<PAGE>
ANNEX D
STRUCTURAL AND COLLATERAL TERM SHEET
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 14, 1998
GS MORTGAGE SECURITIES CORPORATION II
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
APPROXIMATE SECURITIES STRUCTURE:
EXPECTED
APPROXIMATE CREDIT EXPECTED EXPECTED
FACE/NOTIONAL SUPPORT WEIGHTED PAYMENT
CLASS EXPECTED RATING AMOUNT (MM) (% OF UPB) AVERAGE LIFE WINDOW(a)
(a)
- --------------------------------------------------------------------------------
PUBLICLY OFFERED CLASSES
X AAA $1,861.5(b) 9.34 11/98-09/19
A1 AAA 207.5 30.5% 5.01 11/98-07/07
A2 AAA 436.0 30.5 9.49 07/07-10/08
A3 AAA 650.2 30.5 8.99 11/98-10/08
B AA 102.4 25.0 9.97 10/08-10/08
C A 102.4 19.5 9.97 10/08-10/08
D BBB (c) 107.0 13.75 9.97 10/08-10/08
E BBB- (c) 32.6 12.0 9.97 10/08-10/08
PRIVATELY OFFERED CLASSES (d)
- --------------------------------------------------------------------------------
F BB 107.0 6.25 10/08-12/10
G B 55.8 3.25 12/10-09/13
H B- 23.3 2.0 09/13-09/15
J UR 37.2 - 09/15-09/19
----
TOTAL SECURITIES: $1,861.5 11/98-09/19
- --------------------------------------------------------------------------------
(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: $5,781,111
WEIGHTED AVERAGE CURRENT MORTGAGE RATE (a): 7.371%
WEIGHTED AVERAGE U/W DSCR (b): 1.53x
WEIGHTED AVERAGE CUT-OFF DATE LTV RATIO: 68.8%
WEIGHTED AVERAGE REMAINING TERM TO MATURITY (c): 126 months
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM: 310 months
WEIGHTED AVERAGE SEASONING: 4 months
BALLOON LOANS AS % OF TOTAL: 64.4%
TEN LARGEST LOANS AS % OF TOTAL: 35.2%
- ------------------------------------------------------------------------
(a) Gross Coupon.
(b) U/W DSCR is the ratio of Underwritten NCF over the annualized debt service
payments.
(c) Anticipated Repayment Date for loans with Hyper-Amortization. All
information presented herein with respect to Hyper-Amortization Loans
assumes that they mature on their respective Anticipated Repayment Dates.
TEN LARGEST LOANS (b)
LOAN BALANCE ($MM) % BY UPB WTD.AVG.DSCR PROP. TYPE
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
(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:
CUT-OFF DATE BALANCE
NUMBER OF (AS OF OCT 1, 1998)
MORTGAGED ----------------------------------------
GEOGRAPHIC DISTRIBUTION PROPERTIES (MM) % BY BALANCE WTD.AVG.DSCR
- --------------------------------------------------------------------------------
CALIFORNIA 41 $ 294.2 15.8% 1.51x
NEW YORK 30 163.4 8.8 1.59
TEXAS 48 157.6 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
- --------------------------------------------------------------------------------
CUT-OFF DATE BALANCE
NUMBER OF (AS OF OCT 1, 1998
MORTGAGED --------------------------------------------
PROPERTY TYPE PROPERTIES (MM) % BY BALANCE WTD. AVG. DSCR
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
PREPAYMENT RESTRICTIONS (AS OF CUT-OFF DATE):
- ---------------------------------------------
PREPAYMENT RESTRICTIONS LOAN GROUP 1 LOAN GROUP 2 AGGREGATE
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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 % 94.5 % 91.8 %
FIVE LARGEST LOANS AS % OF TOTAL: 34.4 % 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 68.8% of
Aggregate.
- ------------------------
TOP FIVE LOANS
- ------------------------
LOAN GROUP ONE
- --------------
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- -------------------------------------------------------------------
Americold Pool $147.6 12.2 % 1.94x Industrial
EPT Pool 104.7 8.7 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
- -------------------------------------------------------------------
LOAN GROUP TWO
- --------------
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- ---------------------------------------------------------------------
AIMCO MF Pool (a) $79.8 12.3 % 1.39x Multifamily
Holiday Inn Pool 44.0 6.8 1.26 Lodging
Factory Stores at Hershey 25.6 3.9 1.32 Retail
The Original Outlet Mall 21.5 3.3 1.54 Retail
761 7th Ave. 14.5 2.2 1.35 Retail
- ---------------------------------------------------------------------
AGGREGATE
- ----------=
% WTD.
BY AVG. PROPERTY
PROPERTY NAME BALANCE (MM) UPB DSCR TYPE
- ----------------------------------------------------------------
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
- ----------------------------------------------------------------
(a) AIMCO Multifamily Pool is split between Loan Group 1 ($29.3MM) and Loan
Group 2 ($79.8MM)
- ------------------------
TOP FIVE STATES
- ------------------------
LOAN GROUP ONE
- --------------
NUMBER OF %
GEOGRAPHIC MORTGAGE BALANCE BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- -----------------------------------------------------------
California 18 $164.1 13.5% 1.61x
Virginia 19 118.3 9.8 1.42
New York 21 109.5 9.0 1.71
Texas 26 101.4 8.4 1.74
Washington 10 68.1 5.6 1.66
- -----------------------------------------------------------
LOAN GROUP TWO
- --------------
NUMBER OF %
GEOGRAPHIC MORTGAGE BALANCE BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- -----------------------------------------------------------
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
- -----------------------------------------------------------
AGGREGATE
- ---------
NUMBER OF %
GEOGRAPHIC MORTGAGE BALANCE BY WTD. AVG.
DISTRIBUTION PROPERTIES (MM) UPB DSCR
- -----------------------------------------------------------
California 41 $294.2 15.8% 1.51x
New York 30 163.4 8.8 1.59
Texas 48 157.6 8.5 1.65
Virginia 22 128.0 6.9 1.42
Ohio 19 98.3 5.3 1.46
- -----------------------------------------------------------
- ------------------------------------
TOP FIVE PROPERTY TYPES
- ------------------------------------
LOAN GROUP ONE
- --------------
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- --------------------------------------------------------------
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
- --------------------------------------------------------------
LOAN GROUP TWO
- --------------
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- --------------------------------------------------------------
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
- --------------------------------------------------------------
AGGREGATE
- ---------
NUMBER OF %
PROPERTY MORTGAGE BALANCE BY WTD. AVG.
TYPE PROPERTIES (MM) UPB DSCR
- --------------------------------------------------------------
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 13.11 1.72
- -----------------------------------------------------------
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
- --------------------------------------------------------------------------------
[ ] For purposes of calculating principal distributions of the Certificates,
the Mortgage Pool will be comprised of two Loan Groups:
Available principal from Group 1 will be allocated sequentially to A1, A2,
A3, B, C, D, E, F, G, H, J
Available principal from Group 2 will be allocated sequentially to A3, A1,
A2, B, C, D, E, F, G, H, J Certificates
In case the principal balance of 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.
[ ] 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.
[ ] 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.
[ ] All classes will pay interest on a 30/360 basis.
Principal Losses will be allocated in reverse alphabetical order to Class
J, H, G, F, E, D, C, B, and then pro rata to Class A1, A2, and A3.
[ ] The Master Servicer will cover net prepayment interest shortfalls, for any
month up to the portion of the Master Servicing Fee equal to 1/12 of 4
basis points per annum on the principal balance of the loans. 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.
[ ] 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:
[ ] 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)
---------------------------------------------------------------------------
[ ] The remaining percentage of such prepayment premiums will be allocated to
the Class X Certificates
[ ] 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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
[ ] AGGREGATE POOL
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT LOCK-OUT/ PREMIUM ANALYSIS
PERCENTAGE OF MORTGAGE POOL BY PREPAYMENT RESTRICTION ASSUMING NO PREPAYMENT (b)
- ------------------------------------------------------------------------------------------------------------------------------------
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% 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 (b) 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 1634.24 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% 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 (b) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.25 12.23 1.52
% of UPB 6.95% 6.32% 5.80% 4.97% 3.03% 2.50% 1.92% 1.30% 0.66% 0.08%
- ------------------------------------------------------------------------------------------------------------------------------------
.
(a) Table calculated using modeling assumptions and assuming no prepayments of
principal.
<CAPTION>
[ ] LOAN GROUP 1
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 99.11% 99.11% 76.75% 19.56% 4.79% 4.11% 3.87% 3.14% 2.62% 0.10% 0.00 %
Defeasance 0.00 0.00 20.79 74.24 74.24 74.48 75.46 75.85 75.89 74.63 71.54
Greater of YM and 1% 0.89 0.89 2.45 6.20 20.97 21.41 20.17 21.01 21.30 17.90 28.46
SUBTOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.50% 100.00% 99.81% 92.63% 100.00%
Open 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 0.19 7.37 0.00
TOTALS (b) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($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
RESTRICTION 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 (b) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPB ($MM) 129.37 117.65 107.88 92.57 56.44 46.47 35.73 24.25 12.23 1.52
% of UPB 10.68% 9.71% 8.91% 7.64% 4.66% 3.84% 2.95% 2.00% 1.01% 0.13%
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
[ ] LOAN GROUP 2
- ------------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER OCTOBER
RESTRICTIONS 199 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out 100.00% 100.00% 100.00% 34.17% 13.85% 13.45% 12.61% 12.79% 12.32% 0.00% 0.00%
Defeasance 0.00 0.00 0.00 58.44 58.50 58.57 58.65 58.03 58.56 51.19 0.00
Greater of YM and 1% 0.00 0.00 0.00 7.38 27.64 27.98 28.74 29.18 29.12 18.94 0.00
SUBTOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 70.14 0.00
Open 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29.86 0.00
TOTALS (b) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%
UPB ($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% 95.42% 94.03% 92.55% 89.42% 87.71% 85.87% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE LIFE TABLE (IN YEARS)
(PREPAYMENTS LOCKED OUT THROUGH LOCK OUT PERIOD,
DEFEASANCE AND YIELD MAINTENANCE PERIOD, THEN RUN AT THE INDICATED CPRS)
- --------------------------------------------------------------------------------
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 ASSUMPTIONS (CPR)
0% CPR 25% CPR 50% CPR 75% CPR 100% PP*
- --------------------------------------------------------------------------------
X 9.34 9.28 9.25 9.22 9.05
A1 5.01 5.00 4.99 4.98 4.93
A2 9.49 9.46 9.43 9.39 9.18
A3 8.99 8.91 8.87 8.81 8.58
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 10.22 10.21 10.21 10.20 10.15
G 14.00 13.98 13.95 13.91 13.73
H 15.78 15.78 15.78 15.78 15.76
J 18.49 18.49 18.48 18.48 18.44
- --------------------------------------------------------------------------------
* "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
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCE
AGGREGATE
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED
AGGREGATE PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
CUT-OFF OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
RANGE OF CURRENT NUMBER OF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
PRINCIPAL BALANCES MORTGAGE LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <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 71.8
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 71.0
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
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCES
LOAN GROUP ONE
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED
AGGREGATE PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
RANGE OF CURRENT MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
PRINCIPAL BALANCES (a) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - 999,999 5 $ 4,334,893 0.36% $ 866,979 1.67 x 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 66.9
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 1.26 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 1.59 X 7.34% 132.0 66.7%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
DISTRIBUTION OF CUT-OFF DATE BALANCES
LOAN GROUP TWO
- --------------------------------------------------------------------------------
WEIGHTED WEIGHTED
AGGREGATE PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF CUT-OFF OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
RANGE OF CURRENT MORTGAGE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
PRINCIPAL BALANCES (a) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 500,000 - 999,999 8 $ 5,557,192 0.85% $ 694,649 1.54 x 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 - 79,836,798 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 1.42 X 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
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE (a)
AGGREGATE
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED
AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF AGGREGATE PERCENTAGE OF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
MORTGAGE CUT-OFF DATE CUT-OFF DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE LTV
STATE PROPERTIES BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California 41 $ 294,180,915 15.80% $ 7,175,144 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 48 157,647,607 8.47 3,284,325 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 98,304,399 5.28 5,173,916 1.46 7.58 117.9 71.4
Washington 13 83,788,247 4.50 6,445,250 1.63 7.19 116.5 64.3
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 13,463,766 0.72 6,731,883 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.]
<TABLE>
<CAPTION>
<S> <C>
WA 4.50%
OR 3.38%
CA 15.80%
ID 1.04%
NV 0.37%
UT 0.62%
AZ 1.19%
CO 1.02%
NM 2.00%
NE 0.69%
KS 0.21%
OK 2.14%
TX 8.47%
MN 1.08%
IA 0.40%
MO 0.72%
AK 0.86%
LA 1.82%
WI 2.16%
IL 1.39%
TN 2.39%
MS 0.18%
MI 2.80%
IN 0.79%
KY 1.09%
AL 0.32%
OH 5.28%
WV 0.12%
VT 0.28%
NY 8.87%
PA 2.72%
WV 0.12%
NH 0.43%
MA 1.89%
RI 0.31%
CT 1.55%
NJ 0.11%
DE 0.07%
MD 3.15%
DC 2.81%
VA 6.87%
NC 0.11%
SC 0.54%
GA 1.84%
FL 3.64%
PR 2.06%
</TABLE>
[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.]
<TABLE>
<CAPTION>
<S> <C>
Florida 3.64%
Washington 4.50%
Ohio 5.28%
Virginia 6.87%
Texas 8.47%
New York 8.78%
California 15.80%
Other 46.66%
</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
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.]
<TABLE>
<CAPTION>
<S> <C>
Healthcare 5.0%
Movie Theatre 5.6%
Industrial 13.1%
Multifamily 15.8%
Office 16.2%
Lodging 16.8%
Retail 24.1%
Other 3.4%
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED
PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE WEIGHTED
NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING AVERAGE
MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO CUT-OFF DATE
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV 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 16.8 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
PERCENTAGE OF WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF AGGREGATE CUT-OFF AVERAGE CUT-OFF AVERAGE AVERAGE REMAINING CUT-OFF
MORTGAGE CUT-OFF DATE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV 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 66.4%
Retail 67 224,915,312 18.6 3,356,945 1.27 7.46 148.7 73.8
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 8.7 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%
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTION OF PROPERTY TYPES
LOAN GROUP TWO
- --------------------------------------------------------------------------------
<CAPTION>
WEIGHTED WEIGHTED
PERCENTAGE OF WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF AGGREGATE CUT-OFF AVERAGE CUT-OFF AVERAGE AVERAGE REMAINING CUT-OFF
MORTGAGE CUT-OFF DATE DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
PROPERTY TYPE PROPS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV 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
- --------------------------------------------------------------------------------
Weighted Average Current Debt Service Coverage Ratio: 1.53x
95% of the Portfolio has Debt Service Coverage Ratio greater than or equal
to 1.20x
<TABLE>
<CAPTION>
REMAINING WEIGHTED
APPROXIMATE PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
RANGE OF CURRENT NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
DEBT SERVICE MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE LTV
COVERAGE RATIOS LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) 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 74.2
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 69.7
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%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Credit tenant loans.
<CAPTION>
- -------------------------------------------------------------------------------
CUT-OFF DATE LOAN TO VALUE RATIO
AGGREGATE
- --------------------------------------------------------------------------------
Weighted Average Cut-off Date Loan to Value Ratio: 68.8%
WEIGHTED WEIGHTED
PERCENTAGE AVERAGE WEIGHTED WEIGHTED AVERAGE AVERAGE
NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE REMAINING CUT-OFF
RANGE OF LOAN MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE TERM TO DATE
TO VALUE RATIOS LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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 70 346,743,839 18.63 4,953,483 1.36 7.32 123.5 78.3
80.1 - 85.0 15 75,009,659 4.03 5,000,644 1.29 7.24 134.7 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>
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
AMORTIZATION MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
TERMS (MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
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 65.7
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%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
(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
- -------------------------------------------------------------------------------
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
RANGE OF NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
RATES LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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>
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
AMORTIZATION MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
DISTRIBUTION OF AMORTIZATION TYPES
LOAN GROUP ONE (a)
- --------------------------------------------------------------------------------
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
AMORTIZATION MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon 116 $ 583,962,934 48.21% $ 5,034,163 1.49 x 7.53% 118.5 68.4%
Hyperamortizing 15 474,124,619 39.14 31,608,308 1.76 7.08 116.3 63.5
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%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
DISTRIBUTION OF AMORTIZATION TYPES
LOAN GROUP TWO (a)
- --------------------------------------------------------------------------------
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
AMORTIZATION MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
TYPE LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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 1.42 X 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>
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
RANGE OF REMAINING NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
TERM TO MARUTITY MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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%
- ------------------------------------------------------------------------------------------------------------------------------------
(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)
- --------------------------------------------------------------------------------
<CAPTION>
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
RANGE OF REMAINING NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
TERM TO MARUTITY MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (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 1.62 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>
PERCENTAGE AVERAGE WEIGHTED WEIGHTED WEIGHTED WEIGHTED
RANGE OF REMAINING NUMBER OF AGGREGATE OF CUT-OFF CUT-OFF DATE AVERAGE AVERAGE AVERAGE AVERAGE
TERM TO MARUTITY MORTGAGE CUT-OFF DATE DATE PRINCIPAL UNDERWRITTEN MORTGAGE REMAINING TERM TO CUT-OFF DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE DSCR RATE MATURITY (MOS) LTV RATIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
71 - 90 1 $ 10,679,600 1.64% $10,679,600 1.26 x 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 1.42 X 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 to
8.894% and 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 the ARD
CUT-OFF DATE LOAN/SF (3): $41
UP-FRONT RESERVES (3): Deferred Maintenance: $1,948,178
ONGOING RESERVES (3): CapEx: $6,534,838/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 INFORMATIOM
- --------------------------------------------------------------------------------
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.]
<TABLE>
<CAPTION>
<S> <C>
Florida 0.55%
Colorado 1.19%
Georgia 2.06%
Iowa 3.68%
Illinois 4.73%
Utah 5.34%
California 6.65%
Massachusetts 8.55%
Wisconsin 9.18%
Idaho 10.66%
Pennsylvania 11.06%
Washington 17.23%
Oregon 19.13%
</TABLE>
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 $295,594,358 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
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR BUILT /
PROPERTY LOCATION PROPERTY TYPE 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 4,655,000
6. Clearfield Clearfield, UT National Distribution 1973/1978 358,400 8,601,600
7. Connell Connell, WA Captive Production 1969/1971 235,500 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 3,067,994
- ------------------------------------------------------------------------------------------------------------------------------------
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 WTD. AVG. UNDERWRITTEN
PROPERTY LOAN AMOUNT APPRAISED VALUE CUT-OFF DATE LTV (1) 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 (2) 56.7% $48,889,853 1.94X
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Assuming a $295,594,358 Cut-Off Date Loan Amount (combined Notes A & B).
(2) March 1, 1998 appraisal date.
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 USA]
WA 5
OR 4
CA 3
ID 2
UT 1
CO 1
IA 2
WI 1
IL 1
MA 5
PA 1
GA 1
FL 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 general
SPONSOR: 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: $30,403,848 (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 INFORMATIOM
- --------------------------------------------------------------------------------
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]
Arkansas 2.67%
Texas 3.06%
Oregon 3.43%
Arizona 5.44%
Nebraska 4.09%
Indiana 8.72%
Maryland 11.17%
Louisiana 2.08%
California 59.34%
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): 78.2%
SENIOR DSCR (3)(4): 1.39x
- -------------------------------------------------------------------------------
(1) October 1, 1998 (after giving effect to the payment due October 1, 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 POOL LOAN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(1) 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 1.39
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 63.3 523,941 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 75.1 380,549 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 $109,146,602 $178,375,000 61.2% $14,695,605 1.39X
- -----------------------------------------------------------------------------------------------------------------------------------
(1) August - September 1998 Appraisal Date
<CAPTION>
PROPERTY DESCRIPTION
- ----------------------------------------------------------------------------------------------------------------------------
9/15/1998 NUMBER AVG. RENTAL RATE / % ONE % TWO % THREE
PROPERTY OCCUPANCY OF UNITS UNIT BEDROOM BEDROOM BEDROOM % OTHER
- ----------------------------------------------------------------------------------------------------------------------------
<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 50.5 34.0 14.9 -
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 60.4 34.5 5.1 -
Crosswood Park Apts. 95.0 180 792 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 60.6 35.0 4.4 -
Vista Village Apts. 96.0 220 549 38.6 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 42.8% 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 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 USA]
OR 1
CA 6
AZ 1
NE 1
TX 1
AR 1
LA 1
IN 2
MD 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 PROPERITES 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 to
the greater of: (i) 8.772%, and (ii) the 20 Yr
UST as of the ARD plus 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: June 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 INFORMATIOM
- --------------------------------------------------------------------------------
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 44.03%
Ohio 7.65%
Missouri 10.95%
Texas 37.37%
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: $17,000,028
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 PROPERITES TRUST POOL LOAN
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(3) PROPERTY DESCRIPTION
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WTD. AVG.
CUT-OFF DATE CUT-OFF UNDERWRITTEN
NUMBER NUMBER OF ALLOCATED LOAN APPRAISED DATE NET
THEATRE COMPLEX LOCATION BUILT OF SCREENS SEATS AMOUNT VALUE LTV CASH FLOW DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AMC Promenade 16 Woodhills, CA 1996 16 2,860 $19,112,420 $31,000,000 61.7% $2,979,518 1.97x
AMC Ontario Mills 30 Ontario, CA 1996 30 5,496 16,954,566 27,500,000 61.7 2,643,347 1.97
AMC Studio 30 Houston, TX 1997 30 6,032 16,029,772 26,000,000 61.7 2,758,385 2.18
AMC Grand 24 Dallas, TX 1995 24 5,067 12,392,246 20,100,000 61.7 1,943,183 1.99
AMC West Olive 16 Creve Coeur, MO 1997 16 2,817 11,467,452 18,600,000 61.7 1,862,958 2.06
AMC Huebner Oaks 24 San Antonio, TX 1997 24 4,400 10,727,616 17,400,000 61.7 1,764,900 2.08
AMC Mission Valley 20 San Diego, CA 1995 20 4,361 10,049,434 16,300,000 61.7 1,703,065 2.15
AMC Lennox 24 Columbus, OH 1996 24 4,412 8,014,886 13,000,000 61.7 1,344,674 2.13
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 184 35,445 $104,748,392 $169,900,000(a) 61.7% $17,000,030 2.06X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CUT-OFF DATE WTD. AVG.
NUMBER OF NUMBER OF ALLOCATED LOAN APPRAISED CUT-OFF UNDERWRITTEN NET
STATE BUILT SCREENS SEATS AMOUNT VALUE DATE LTV CASH FLOW DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California 1995-1996 66 12,717 $ 46,116,420 $ 74,800,000 61.7% $7,325,930 2.01x
Texas 1995-1997 78 15,499 39,149,634 63,500,000 61.7 6,466,468 2.08
Missouri 1997 16 2,817 11,467,452 18,600,000 61.7 1,862,958 2.06
Ohio 1996 24 4,412 8,014,886 13,000,000 61.7 1,344,674 2.13
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 184 35,445 $104,748,392 $169,900,000(a) 61.7% $17,000,030 2.06X
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) 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 USA]
AMC Promenade 16
AMC Ontario Mills 30
AMC Mission Valley 20
AMC Huebner Oaks 24
AMC Studio 30
AMC West Olive 16
AMC Lennox 24
AMC Gravel 24
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 to
the greater of: (i) 9.049%, and (ii) the 20 Yr
UST as of the ARD plus 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 $8,400,000,
(ii) after ARD or (iii) after an event of
default
CROSS-COLLATERALIZATION /
CROSS-DEFAULT: Yes
PARTNER LOANS: None
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATIOM
- --------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Portfolio of two assets
PROPERTY TYPE: Office
LOCATION: Fairfax County, Virginia
YEARS BUILT: 1980 and 1987
OCCUPANCY: 97.3% (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 410,824 SF '99,`02, `09
Science Applications 87,737 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) August 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.
LEASE EXPIRATION SCHEDULE
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
YEAR ENDING DEC. 31 EXPIRING SF % OF TOTAL SF ANNUALIZED TENANT BASE RENT % OF TOTAL BASE RENT (1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MO/MO
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]
I-395 Leesburg Pike (Rte. 7)
One Skyline Tower Three Skyline Place
Seminary Road S. George Mason Drive
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.
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.
The date of this Prospectus is October 14, 1998
<PAGE>
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.
63
<PAGE>
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 Excel(1), 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."
- ------------
(1) Microsoft Excel is a registered trademark of Microsoft Corporation.
Photographs of the following relevant properties omitted:
Ames Business Center, Burnsville, MN;
Bryan Station Shopping Center, Lexington, KY;
Courtyard by Marriott, Dallas, TX;
Sterling Ponds II, Sterling Heights, MI;
Hobbits Grove Apartments, Columbia, MD;
Factory Stores at Hershey, Hershey, PA;
Century Medical Center, Hawthorne, CA;
Sharp Mission Park Medical Center, Vista, CA;
The Rehabilitation Centre of Beverly Hills, Los Angeles, CA;
First Place Tower, Tulsa, OK;
The West Coast Benson Hotel, Portland, OR;
The Saddlery Building, Milwaukee, WI;
Karrington of Bexley, Bexley, OH;
Michigan Heart and Vascular Institute, Ann Arbor, MI;
Redstone Apartments, Burlington, VT;
Lake Natoma Inn, Folsom, CA; and
The Plaza at River Oaks, Houston, TX.
<PAGE>
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 authorized 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-80
Yield, Prepayment and Maturity Considerations ........ S-96
The Pooling Agreement................................. S-113
Use of Proceeds....................................... S-136
Certain Legal Aspects of the Mortgage Loans .......... S-136
Federal Income Tax Consequences....................... S-138
State Tax Considerations.............................. S-139
ERISA Considerations.................................. S-139
Legal Investment...................................... S-141
Underwriting.......................................... S-141
Legal Matters......................................... S-142
Ratings............................................... S-142
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 , 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,
SELLER
Commercial Mortgage Pass-Through
Certificates, Series 1998-C1
<TABLE>
<CAPTION>
<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>
PROSPECTUS SUPPLEMENT
GOLDMAN, SACHS & CO.
