<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d) of the
Securities and Exchange Act of 1934
Date of Report: October 26, 1998
- ---------------------------------
(Date of earliest event reported)
NationsLink Funding Corporation
-----------------------------------------------------
(Exact name of registrant as specified in its charter
Delaware 333-57473 56-1950039
- -------------------------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
NationsBank Corporate Center, 100 North Tryon Street, Charlotte, NC 28255
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (704) 386-2400
<PAGE> 2
Item 5. Other Events.
Attached are certain structural and collateral term sheets (the "Term
Sheets") furnished to the Registrant by NationsBanc Montgomery Securities LLC
(the "Underwriter"), the underwriter in respect of the Registrant's proposed
offering of Commercial Mortgage Pass-Through Certificates, Series 1998-2 (the
"Certificates"). The Certificates will be offered pursuant to a Prospectus and
related Prospectus Supplement (together, the "Prospectus"), which will be filed
with the Commission pursuant to Rule 424 under the Securities Act of 1933, as
amended (the "Act"). The Certificates will be registered pursuant to the Act
under the Registrant's Registration Statement on Form S-3 (No. 333-57473) (the
"Registration Statement"). The Registrant hereby incorporates the Term Sheets
by reference in the Registration Statement.
The Term Sheets were prepared solely by the Underwriter, and the
Registrant did not prepare or participate in the preparation of the Collateral
Term Sheets and Structural Term Sheets.
Any statement or information contained in the Term Sheets shall be
modified and superseded for purposes of the Prospectus and the Registration
Statement by statements or information contained in the Prospectus.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 99 Term Sheets
2
<PAGE> 3
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on behalf of the
Registrant by the undersigned thereunto duly authorized.
NATIONSLINK FUNDING CORPORATION
By: /s/ James E. Naumann
---------------------------
Name: James E. Naumann
Title: Senior Vice President
Date: October 26, 1998
3
<PAGE> 4
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Description Page
- -------------- ----------- ----
99 Term Sheets
4
<PAGE> 1
EXHIBIT 99
Term Sheets
<PAGE> 2
- ------------------------------------------------------------------------------
[NationsBanc Montgomery Securities LLC Logo]
CMBS NEW ISSUE TERM SHEET
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
OCTOBER 1998
NATIONSBANC MONTGOMERY SECURITIES LLC
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 3
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
STRUCTURE OVERVIEW
OFFERED CERTIFICATES
<TABLE>
EXPECTED RATINGS ASSUMED FINAL
---------------- APPROX. APPROX. APPROX. AVERAGE PRINCIPAL DISTRIBUTION
CLASS (MOODY'S/S&P) SIZE % OF TOTAL CREDIT SUPPORT LIFE(1) WINDOW(1) DATE(1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 Aaa/AAA $ 429,503,407 27.15% 30.08% 5.49 yrs. 1 - 108 Mos. November 20, 2007
A-2 Aaa/AAA 676,635,062 42.77 30.08 9.43 108 - 116 July 20, 2008
X Aaa/AAAr 1,581,964,668(3) - - 8.86 - May 20, 2023
B Aa2/AA 79,304,366 5.01 25.07 9.64 116 - 116 July 20, 2008
C A2/A 95,165,239 6.02 19.05 9.66 116 - 117 August 20, 2008
D Baa2/BBB 83,269,584 5.26 13.79 9.72 117 - 117 August 20, 2008
E NR/BBB- 35,686,964 2.26 11.53 9.75 117 - 120 November 20, 2008
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
ANTICIPATED PRICE
CLASS COUPON DOLLAR PRICE THOUGHTS
- --------------------------------------------
<S> <C> <C> <C>
A-1 Fixed Rate
A-2 Fixed Rate
X VAR(IO)
B Fixed Rate(2)
C Fixed Rate(2)
D Fixed Rate(2)
E Fixed Rate(2)
- ---------------------------------------------
- ---------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NON-OFFERED CERTIFICATES
EXPECTED RATINGS ASSUMED FINAL
---------------- APPROX. APPROX. APPROX. AVERAGE PRINCIPAL DISTRIBUTION
CLASS (MOODY'S/S&P) SIZE % OF TOTAL CREDIT SUPPORT LIFE(1) WINDOW(1) DATE(1) COUPON
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
F NR/BB $87,234,802 5.51% 6.02% 12.18 yrs. 120 - 170 Mos. January 20, 2013 Fixed Rate
G NR/BB- 11,895,654 0.75 5.26 14.32 170 - 173 April 20, 2013 Fixed Rate
H Not offered 31,721,746 2.01 3.26 14.42 173 - 174 May 20, 2013 Fixed Rate
J Not offered 7,930,436 0.50 2.76 14.47 174 - 174 May 20, 2013 Fixed Rate
K Not offered 43,617,407 2.76 - 15.06 174 - 294 May 20, 2023 Fixed Rate
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
(1) As of the Commencement Date the Average Life, Principal Window and Assumed
Final Distribution Date were calculated assuming 0% CPR, no defaults, no
extensions and no clean-up call (Class X was subject to a clean-up call for
the purpose of calculating the Average Life).
(2) Capped at the weighted average Net Mortgage Rate.
(3) The Class X Certificates will accrue interest on a Notional Amount equal to
100% of the aggregate outstanding balance of the Classes of Sequential Pay
Certificates.
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 4
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
STRUCTURE SCHEMATIC
[CHART]
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 5
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Capitalized terms used but not otherwise defined herein shall have the
meaning ascribed to them in the Preliminary Prospectus Supplement dated October
, 1998.
<TABLE>
<CAPTION>
TRANSACTION TERMS
<S> <C>
ISSUE TYPE Sequential pay REMIC, Class A-1, A-2, B, C, D, E and X Certificates (the
"Offered Certificates") offered publicly. All other Certificates privately
placed to qualified institutional buyers or to accredited investors;
COMMENCEMENT DATE All bond characteristics are based on balances as of the Commencement Date,
November 1, 1998;
CUT-OFF DATE All mortgage loan characteristics are based on balances as of the Cut-off
Date, September 1, 1998;
MORTGAGE POOL The Mortgage Pool consists of 376 conventional, multifamily and
commercial mortgage loans (the "Mortgage Loans"), with an aggregate
Collateral Date Balance of $1,586,087,324 (the "Initial Pool Balance"),
subject to a variance of plus or minus 5%. The Mortgage Loans are secured
by 381 properties (the "Mortgaged Properties") located throughout 34 states
and the District of Columbia;
DEPOSITOR NationsLink Funding Corporation;
LOAN SELLERS NationsBank, N.A. and Bank of America, NT&SA;
UNDERWRITER NationsBanc Montgomery Securities LLC;
TRUSTEE Norwest Bank Minnesota, National Association;
MASTER SERVICER Midland Loan Services, L.P.;
SPECIAL SERVICER Lennar Partners, Inc.;
RATING AGENCIES Standard & Poor's and Moody's Investor Service, Inc.
DENOMINATIONS $10,000 minimum for Class A-1 and A-2 Certificates,
$1,000,000 (notional) minimum for Class X Certificates and
$100,000 minimum for all other Offered Certificates;
DELIVERY DATE November 30, 1998;
SETTLEMENT TERMS Book-entry through DTC for all Offered Certificates;
DISTRIBUTION DATE To be made monthly on the 20th or on the next business day, commencing
December 20, 1998;
INTEREST DISTRIBUTIONS Interest will be distributed on each Distribution Date in sequential order of
Class designations with Classes A-1, A-2, and X ranking pari passu in
entitlement to interest;
PRINCIPAL DISTRIBUTIONS Principal will be distributed on each Distribution Date to the most senior
Class (i.e. the Class with the earliest alphabetical/numerical Class designation) of
Sequential Pay Certificates outstanding, until such Class is
retired. If, due to losses, the Certificate Balances of the Class B through K
Certificates are reduced to zero, payments of principal to the Class A-1
and A-2 Certificates will be made pro rata;
</TABLE>
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 6
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
<TABLE>
<S> <C>
LOSSES To be applied first to Class K, then to the next most subordinate class, etc.;
PREPAYMENT PREMIUMS To be distributed (i) first, to the holders of the Class X Certificates and to
the holders of the Class A, B, C, D and E Certificates then entitled to
principal up to an amount equal to, and pro rata in accordance with, the PV
Yield Loss Amount for each such Class and (ii) to the extent of any
remaining portion, to the holders of the Class X Certificates, pro rata based
on respective notional balances as of the preceding Distribution Date. See
example provided herein;
ADVANCES Subject to certain limitations, including, but not limited to, a recoverability
determination, the Master Servicer will be required to advance certain
principal, interest and servicing expenses. In the event that the Master
Servicer fails to make such advances, the Trustee will be required to do so;
APPRAISAL REDUCTIONS If a Mortgage Loan becomes more than 90 days delinquent or a Mortgage Loan becomes
REO or the Special Servicer materially modifies a Mortgage Loan, the Special
Servicer will obtain an appraisal on the property. Advances of delinquent
interest to the most subordinate class will be reduced to the extent of the
interest on the Appraisal Reduction Amount. The Appraisal Reduction Amount will
be equal to the difference between (a) the scheduled balance of the Mortgage Loan
plus any unpaid advances outstanding and other amounts payable with respect
thereto and (b) an amount equal to 90% of the appraisal value of the property;
OPTIONAL CALL 1.0% clean-up call, at the option of the Master Servicer or the majority holder of
the Controlling Class;
CONTROLLING CLASS The most subordinate Class of Sequential Pay Certificates with an
outstanding Certificate Balance at least equal to 25% of its initial
Certificate Balance (or, if no such Class satisfies such criteria, the
Class of Sequential Pay Certificates with the largest
outstanding Certificate Balance);
ERISA Classes A-1, A-2, and X are ERISA eligible;
SMMEA The Class A and Class B Certificates will be "mortgage-related securities"
for the purposes of SMMEA;
ELECTRONIC REPORTING Information will be provided for modeling on Bloomberg, Trepp, Conquest,
and Intex. Loan-level detail will be available through the Trustee's website;
CONTACT NationsBanc Montgomery Securities LLC
Commercial Mortgage Sales & Trading
Ken Rivkin
Bill Hale
Geordie Walker
(704) 388-1597
</TABLE>
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 7
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Mortgage Pool Characteristics(1)
General Characteristics
<TABLE>
<S> <C>
- ---------------------------------------------------------------------
Initial Pool Balance $1,586,087,324
Number of Mortgage Loans 376
Number of Mortgaged Properties 381
Average Cut-off Date Balance 4,218,317.35
Weighted Average Mortgage Rate 7.245%
Weighted Average Remaining Term to Maturity 120 months
Weighted Average Underwriting DSCI 1.48 x
Weighted Average Cut-off Date LTV Ratio 70.8%
Weighted Average Remaining Lock-out Period 88 months
=====================================================================
</TABLE>
(1) Mortgage Pool as of Cut-off Date.
Property Type
<TABLE>
<CAPTION>
Weighted
Number of % of Aggregate % of Average Min/Max
Mortgage Mortgage Cut-off Date Initial Pool U/W U/W
Property Type Properties Properties Balance Balance DSCR(2) DSCR(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Multifamily 146 38.3% $ 521,436,965 32.9% 1.47x 1.14/ 2.52 x
Retail 91 23.9 470,433,246 29.7 1.43 1.16/ 2.12
Office 47 12.3 225,938,371 14.2 1.53 1.34/ 3.03
Industrial 42 11.0 190,099,252 12.0 1.42 1.27/ 2.42
Hotel 12 3.1 73,036,065 4.6 1.75 1.51/ 2.77
Mobile Home Park 15 3.9 37,650,331 2.4 1.74 1.29/ 4.86
Health Care 14 3.7 35,288,674 2.2 1.63 1.41/ 1.97
Mini Storage 7 1.8 14,463,826 0.9 1.67 1.41/ 2.31
Franchise Restaurant 6 1.6 12,356,956 0.8 1.21 1.20/ 1.21
Parking Garage 1 0.3 5,383,638 0.3 1.36 1.36/ 1.36
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 381 100.0% 1,586,087,324 100.0% 1.48x 1.14/ 4.86 x
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Weighted
Weighted Min/Max Average
Average COD LTV Mortgage
Property Type COD LTV Ratio(3) Ratio(3) Rate
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Multifamily 73.8% 47.9/ 85.2% 7.099%
Retail 67.1 35.4/ 79.9 7.279
Office 72.0 35.9/ 79.2 7.244
Industrial 75.8 49.7/ 82.8 7.207
Hotel 62.9 38.8/ 69.8 7.433
Mobile Home Park 62.0 20.3/ 74.9 6.960
Health Care 71.8 59.0/ 84.9 8.478
Mini Storage 65.1 46.4/ 74.9 7.453
Franchise Restaurant 68.7 63.4/ 84.1 8.600
Parking Garage 69.9 69.9/ 69.9 7.490
- -------------------------------------------------------------------------------------
Total/Weighted Average 70.8% 20.3/ 85.2% 7.245%
=====================================================================================
</TABLE>
(2) Underwriting ("U/W") DSCR is the ratio of Underwriting Net Operating
Income to annualized debt service.
(3) Cut-off Date ("COD") LTV Ratio is the ratio of Cut-off Date Balance
to Appraisal Value.
<TABLE>
<CAPTION>
Weighted
Average
Unit Loan Balance
Property Type Type Per Unit
- ----------------------------------------------------------------
<S> <C> <C>
Multifamily Units $ 40,384.01
Retail Square Feet 83.62
Office Square Feet 111.70
Industrial Square Feet 40.68
Hotel Rooms 75,489.00 [CHART]
Mobile Home Units 18,481.19
Health Care Beds 32,572.55
Mini Storage Units 2,423.10
Franchise Restaurant Square Feet 476.98
Parking Garage Square Feet 33.28
=================================================================
</TABLE>
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 8
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
PROPERTY LOCATION
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGED CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
LOCATION (STATE/COUNTY) PROPERTIES PROPERTIES BALANCE BALANCE DSCR (1) LTV RATIO (2) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CA 127 33.3% $ 435,659,576 27.5% 1.55x 68.3% 7.136%
Los Angeles 32 8.4 105,088,985.59 6.6 1.45 73.1 7.147
Santa Clara 14 3.7 59,232,757.06 3.7 1.61 64.1 7.138
Alameda 10 2.6 38,446,980.20 2.4 1.62 64.1 7.148
San Diego 9 2.4 30,083,802.66 1.9 1.65 63.5 7.201
San Francisco 5 1.3 24,508,260.21 1.5 1.58 56.5 7.225
Madera 2 0.5 22,496,197.24 1.4 1.41 76.2 7.003
Orange 10 2.6 20,392,382.35 1.3 1.55 68.8 7.316
Riverside 3 0.8 14,157,738.05 0.9 1.36 69.5 6.954
San Mateo 5 1.3 13,771,987.27 0.9 1.68 65.5 7.138
Fresno 5 1.3 13,476,542.50 0.8 1.54 73.6 6.848
Other Counties 32 8.4 94,003,942.90 5.9 1.58 69.3 7.134
NC 10 2.6 153,240,124 9.7 1.42 56.1 7.120
MD 10 2.6 119,168,943 7.5 1.35 78.5 7.268
FL 29 7.6 114,366,151 7.2 1.47 71.5 7.260
NJ 5 1.3 84,038,635 5.3 1.44 74.9 7.062
TX 32 8.4 81,155,037 5.1 1.43 73.6 8.122
WA 16 4.2 73,674,781 4.6 1.54 70.4 7.277
AZ 17 4.5 57,755,509 3.6 1.49 74.2 7.057
VA 9 2.4 57,232,752 3.6 1.54 73.4 7.416
LA 6 1.6 43,788,163 2.8 1.36 78.6 7.326
Other States 120 31.5 366,007,653 23.1 1.49 74.0 7.249
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 381 100.0% $ 1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - The Mortgaged Properties are located throughout 34 states and the District of
Columbia.
[MAP]
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 9
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
CUT-OFF DATE BALANCE
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
CUT-OFF DATE BALANCE LOANS LOANS BALANCE BALANCE DSCR(1) LTV RATIO(2) RATE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$386,353 to $999,999 50 13.3% $ 38,382,785 2.4% 1.67x 65.6% 7.651%
$1,000,000 to $1,999,999 119 31.6 172,592,265 10.9 1.58 69.7 7.411
$2,000,000 to $2,999,999 59 15.7 148,337,730 9.4 1.56 70.3 7.364
$3,000,000 to $3,999,999 55 14.6 193,868,663 12.2 1.52 70.0 7.388
$4,000,000 to $4,999,999 19 5.1 86,426,104 5.4 1.54 70.3 7.371
$5,000,000 to $7,499,999 28 7.4 168,887,343 10.6 1.52 72.3 7.226
$7,500,000 to $9,999,999 17 4.5 143,145,265 9.0 1.43 73.4 7.240
$10,000,000 to $14,999,999 10 2.7 119,772,634 7.6 1.42 74.2 7.172
$15,000,000 to $19,999,999 7 1.9 119,131,728 7.5 1.40 75.5 6.963
$20,000,000 to $29,999,999 8 2.1 207,612,356 13.1 1.40 75.6 7.156
$30,000,000 to $34,999,999 1 0.3 32,887,200 2.1 1.32 78.3 7.160
$35,000,000 to $74,317,972 3 0.8 155,043,252 9.8 1.42 57.0 7.032
- ---------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
===========================================================================================================================
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- The average Cut-off Date Balance is $4,218,317.
UNDERWRITING DEBT SERVICE COVERAGE RATIO
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
DEBT SERVICE COVERAGE RATIO LOANS LOANS BALANCE BALANCE DSCR(1) LTV RATIO(2) RATE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1.14x to 1.19x 3 0.8% $ 15,400,771 1.0% 1.16x 71.8% 8.114%
1.20x to 1.29x 12 3.2 54,511,666 3.4 1.26 72.7 7.832
1.30x to 1.34x 34 9.0 314,956,127 19.9 1.32 76.7 7.183
1.35x to 1.39x 48 12.8 248,958,650 15.7 1.37 76.0 7.170
1.40x to 1.49x 94 25.0 423,647,923 26.7 1.44 67.3 7.212
1.50x to 1.59x 64 17.0 201,019,345 12.7 1.54 72.3 7.167
1.60x to 1.69x 50 13.3 133,562,697 8.4 1.64 69.1 7.486
1.70x to 1.79x 33 8.8 112,466,123 7.1 1.74 65.2 7.202
1.80x to 1.89x 14 3.7 23,320,798 1.5 1.83 61.7 7.344
1.90x to 1.99x 8 2.1 25,408,151 1.6 1.95 60.0 7.137
2.00x to 2.99x 14 3.7 30,488,691 1.9 2.23 51.5 7.098
3.00x to 4.86x 2 0.5 2,346,383 0.1 4.08 26.9 7.150
- ---------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
===========================================================================================================================
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- The weighted average Underwriting Debt Service Coverage Ratio is 1.48x.
================================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 10
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Cut-off Date Loan-to-Value Ratio
<TABLE>
<CAPTION> WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
CUT-OFF DATE LTV RATIO LOANS LOANS BALANCE BALANCE DSCR (1) LTV RATIO (2) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
20.3% to 29.9% 1 0.3% $ 1,348,235 0.1% 4.86x 20.3% 6.861%
30.0% to 49.9% 15 4.0 108,189,752 6.8 1.67 38.3 7.119
50.0% to 59.9% 33 8.8 81,620,873 5.1 1.71 55.5 7.268
60.0% to 64.9% 35 9.3 109,109,524 6.9 1.56 62.8 7.344
65.0% to 69.9% 65 17.3 234,750,855 14.8 1.52 68.2 7.333
70.0% to 74.9% 128 34.0 365,684,266 23.1 1.49 73.5 7.396
75.0% to 79.9% 89 23.7 628,095,603 39.6 1.38 78.3 7.108
80.0% to 85.19% 10 2.7 57,288,216 3.6 1.45 82.7 7.442
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- The weighted average Cut-off Date LTV Ratio is 70.8%.
Maturity Date Loan-to-Value Ratio
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING MATURITY DATE MORTGAGE
MATURITY DATE LTV RATIO LOANS LOANS BALANCE BALANCE DSCR (1) LTV RATIO (2) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
0% to 24.9% 27 7.2% $ 132,486,002 8.4% 1.48x 0.8% 7.184%
25.0% to 49.9% 43 11.4 149,512,656 9.4 1.70 45.2 7.523
50.0% to 59.9% 99 26.3 342,268,648 21.6 1.54 56.0 7.300
60.0% to 64.9% 71 18.9 242,121,685 15.3 1.49 62.2 7.224
65.0% to 69.9% 101 26.9 489,979,835 30.9 1.42 67.5 7.162
70.0% to 74.9% 33 8.8 221,584,978 14.0 1.37 71.6 7.203
75.0% to 75.96% 2 0.5 8,133,520 0.5 1.54 75.8 7.597
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 57.1% 7.245%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Maturity Date Balance to Appraisal
Value.
- The weighted average Maturity Date Loan-to-Value Ratio is 57.1%.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 11
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
MORTGAGE RATE
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
MORTGAGE RATE LOANS LOANS BALANCE BALANCE DSCR (1) LTV RATIO (2) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6.640% TO 6.999% 78 20.7% $ 406,674,496 25.6% 1.51x 72.0% 6.866%
7.000% to 7.249% 121 32.2 702,024,638 44.3 1.46 70.2 7.102
7.250% to 7.499% 66 17.6 202,965,127 12.8 1.53 70.4 7.359
7.500% to 7.749% 44 11.7 107,540,865 6.8 1.50 71.3 7.616
7.750% to 7.999% 28 7.4 58,692,800 3.7 1.46 68.7 7.846
8.000% to 8.499% 13 3.5 37,160,932 2.3 1.50 71.3 8.252
8.500% to 8.999% 11 2.9 42,767,801 2.7 1.26 73.1 8.740
9.000% to 9.499% 14 3.7 26,873,632 1.7 1.56 70.8 9.157
9.500% to 9.830% 1 0.3 1,387,033 0.1 1.40 67.7 9.830
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - The weighted average Mortgage Rate is 7.245%.
- - The weighted average Administrative Fee Rate is 0.139%.
- - The weighted average Net Mortgage Rate is 7.106%.
ORIGINAL TERM TO MATURITY
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
ORIGINAL TERM TO MATURITY LOANS LOANS BALANCE BALANCE DSCR (1) LTV RATIO (2) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
84 Months 17 4.5% $ 169,740,121 10.7% 1.44x 58.7% 7.104%
96 Months 1 0.3 3,994,626 0.3 1.72 55.5 6.769
110 Months 1 0.3 4,030,359 0.3 1.42 69.5 9.100
113 Months 1 0.3 26,009,898 1.6 1.63 68.4 7.430
116 Months 1 0.3 39,751,581 2.5 1.33 79.3 7.100
120 Months 305 81.1 1,103,604,323 69.6 1.51 71.9 7.212
121 Months 1 0.3 2,327,432 0.1 1.38 72.7 7.330
124 Months 1 0.3 4,594,455 0.3 1.42 79.9 7.130
144 Months 3 0.8 36,531,653 2.3 1.34 77.6 7.566
168 Months 1 0.3 5,800,000 0.4 1.18 66.1 7.285
180 Months 39 10.4 175,126,800 11.0 1.41 73.0 7.484
216 Months 1 0.3 5,449,267 0.3 1.27 68.1 7.146
240 Months 3 0.8 7,186,134 0.5 1.35 67.9 7.620
300 Months 1 0.3 1,940,675 0.1 1.31 74.6 7.259
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - The weighted average Original Term To Maturity is 124 months.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 12
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
ORIGINAL AMORTIZATION TERM
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
ORIGINAL AMORTIZATION TERM LOANS LOANS BALANCE BALANCE DSCR(1) LTV RATIO(2) RATE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
84 Months 1 0.3% $ 74,317,972 4.7% 1.47x 35.4% 7.060%
120 Months 3 0.8 4,467,169 0.3 1.70 42.4 7.438
156 Months 1 0.3 5,800,000 0.4 1.18 66.1 7.285
180 Months 16 4.3 31,976,550 2.0 1.46 59.8 7.337
216 Months 1 0.3 5,449,267 0.3 1.27 68.1 7.146
224 Months 1 0.3 1,791,184 0.1 1.20 84.1 8.600
233 Months 1 0.3 26,009,898 1.6 1.63 68.4 7.430
240 Months 15 4.0 41,034,184 2.6 1.50 66.3 7.799
264 Months 1 0.3 18,473,776 1.2 1.33 66.0 6.955
270 Months 2 0.5 1,746,235 0.1 1.34 74.6 7.660
276 Months 1 0.3 7,270,651 0.5 1.45 69.2 7.020
290 Months 1 0.3 4,030,359 0.3 1.42 69.5 9.100
300 Months 88 23.4 225,743,429 14.2 1.62 67.9 7.629
360 Months 244 64.9 1,137,976,650 71.7 1.46 74.5 7.150
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - The weighted average Original Amortization Term is 326 months.
REMAINING TERM TO MATURITY
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF % OF AGGREGATE % OF AVERAGE AVERAGE AVERAGE
MORTGAGE MORTGAGE CUT-OFF DATE INITIAL POOL UNDERWRITING CUT-OFF DATE MORTGAGE
REMAINING TERM TO MATURITY LOANS LOANS BALANCE BALANCE DSCR(1) LTV RATIO(2) RATE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
69 months to 83 months 17 4.5% $ 169,740,121 10.7% 1.44x 58.7% 7.104%
84 months to 119 months 310 82.4 1,179,718,218 74.4 1.51 72.1 7.218
120 months to 179 months 44 11.7 222,052,908 14.0 1.39 73.7 7.485
180 months to 296 months 5 1.3 14,576,077 0.9 1.32 68.9 7.395
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVERAGE 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - The weighted average Seasoning is 4 months.
- - The weighted average Remaining Term to Maturity is 120 months.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 13
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Mortgage Loan Originator
<TABLE>
<CAPTION>
Weighted Weighted Weighted
Number of % of Aggregate % of Average Average Average
Mortgage Mortgage Cut-off Date Initial Pool Underwriting Cut-off Date Mortgage
Mortgage Loan Originator Loans Loans Balance Balance DSCR(1) LTV Ratio(2) Rate
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NationsBank, N.A. 104 27.7% $ 670,905,440 42.3% 1.45x 69.8% 7.260%
Bank of America, NT&SA 173 46.0 435,081,774 27.4 1.59 69.0 7.209
Berkshire Mortgage Finance Corporation 20 5.3 164,458,441 10.4 1.43 73.5 7.260
Washington Mortgage Financial Group 17 4.5 73,442,577 4.6 1.42 76.7 7.483
Bankers Mutual Mortgage, Inc. 12 3.2 66,309,496 4.2 1.37 71.1 7.026
Patrician Financial Company 11 2.9 63,566,361 4.0 1.41 74.8 7.447
ARCS Commercial 11 2.9 46,504,981 2.9 1.44 74.2 6.940
First Security Bank, N.A. 13 3.5 34,133,751 2.2 1.53 72.8 7.168
L.J. Melody & Company 15 4.0 31,684,502 2.0 1.46 74.4 7.384
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
====================================================================================================================================
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
Mortgage Loan Sub-Servicer
<TABLE>
<CAPTION>
Weighted Weighted Weighted
Number of % of Aggregate % of Average Average Average
Mortgage Mortgage Cut-off Date Initial Pool Underwriting Cut-off Date Mortgage
Mortgage Loan Sub-Servicer Loans Loans Balance Balance DSCR(1) LTV Ratio(2) Rate
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Midland Loan Services, L.P. 105 27.9% $ 671,898,190 42.4% 1.45x 69.8% 7.261%
Bank of America, NT&SA 173 46.0 435,081,774 27.4 1.59 69.0 7.209
Berkshire Mortgage Finance Corporation 20 5.3 164,458,441 10.4 1.43 73.5 7.260
Washington Mortgage Financial Group 17 4.5 73,442,577 4.6 1.42 76.7 7.483
Bankers Mutual Mortgage, Inc. 11 2.9 65,316,746 4.1 1.37 71.2 7.011
Patrician Financial Company 11 2.9 63,566,361 4.0 1.41 74.8 7.447
ARCS Commercial 11 2.9 46,504,981 2.9 1.44 74.2 6.940
First Security Bank, N.A. 13 3.5 34,133,751 2.2 1.53 72.8 7.168
L.J. Melody & Company 15 4.0 31,684,502 2.0 1.46 74.4 7.384
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 376 100.0% $1,586,087,324 100.0% 1.48x 70.8% 7.245%
====================================================================================================================================
</TABLE>
(1) Underwriting DSCR is the ratio of Underwriting Net Operating Income to
annualized debt service.
(2) Cut-off Date LTV Ratio is the ratio of Cut-off Date Balance to
Appraisal Value.
- - EACH OF THE MORTGAGE LOANS WILL BE SUB-SERVICED BY ITS RESPECTIVE
ORIGINATOR WITH THE EXCEPTION OF THE MORTGAGE LOANS THAT WERE ORIGINATED
BY NATIONSBANK, N.A., WHICH WILL BE SUB-SERVICED BY MIDLAND LOAN SERVICES,
L.P.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 14
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
PREPAYMENT PROVISIONS SUMMARY
<TABLE>
<CAPTION>
ORIGINAL NUMBER OF AGGREGATE % OF
TERM TO MORTGAGE CUT-OFF DATE INITIAL POOL
MATURITY LOANS BALANCE BALANCE PREPAYMENT PROVISION DESCRIPTION
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
84 months 9 $ 109,446,239 6.9% Lockout\Open(1)
84 months 7 57,711,405 3.6 Lockout\Yield Maintenance\Open
84 months 1 2,582,476 0.2 Lockout\Yield Maintenance\Percentage Penalty\Open
96 months 1 3,994,626 0.3 Lockout\Yield Maintenance\Open(1)
110 months 1 4,030,359 0.3 Lockout\Yield Maintenance\Percentage Penalty\Open
113 months 1 26,009,898 1.6 Lockout\Yield Maintenance\Open(1)
116 months 1 39,751,581 2.5 Lockout\Open(1)
120 months 191 658,714,418 41.5 Lockout\Open(1)
120 months 53 154,415,241 9.7 Lockout\Yield Maintenance\Open
120 months 56 266,739,862 16.8 Lockout\Yield Maintenance\Open(1)
120 months 5 23,734,801 1.5 Lockout\Yield Maintenance\Percentage Penalty\Open
121 months 1 2,327,432 0.1 Lockout\Yield Maintenance\Open(1)
124 months 1 4,594,455 0.3 Lockout\Yield Maintenance\Open(1)
144 months 2 8,071,087 0.5 Lockout\Open(1)
144 months 1 28,460,566 1.8 Lockout\Yield Maintenance\Open
168 months 1 5,800,000 0.4 Lockout\Open(1)
180 months 18 101,781,375 6.4 Lockout\Open(1)
180 months 17 37,316,937 2.4 Lockout\Yield Maintenance\Open
180 months 4 36,028,487 2.3 Lockout\Yield Maintenance\Open(1)
216 months 1 5,449,267 0.3 Lockout\Open(1)
240 months 3 7,186,134 0.5 Lockout\Open(1)
300 months 1 1,940,675 0.1 Lockout\Open(1)
- ---------------------------------------------------------------------------------------------------------------------------------
Total 376 $1,586,087,324 100.0%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- Each of the Mortgage Loans is in a Lock-out Period as of the Cut-off
Date.
- The weighted average remaining Lock-out Period is 88 months.
- See Prepayment Premium Allocation herein for a description of allocation of
Prepayment Premiums.
(1) These loans are subject to a Defeasance Option.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 15
NATIONSLINK FUNDING CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-2
CLASS A, B, C, D, E, & X CERTIFICATES
$1,399,564,622 (APPROXIMATE)
PREPAYMENT PROVISION/REMAINING BALANCE ANALYSIS
<TABLE>
<CAPTION>
PERIOD
------------------------------------------------------------------------------------
PREPAYMENT PROVISION 9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Locked Out/Defeasance 100.0% 100.0% 98.3% 92.2% 63.0% 62.8% 62.8% 62.5% 59.5%
Yield Maintenance 0.0 0.0 1.7 7.8 37.0 37.0 32.3 35.5 38.5
3% 0.0 0.0 0.0 0.0 0.0 0.0 1.3 0.7 0.0
2% 0.0 0.0 0.0 0.0 0.0 0.2 0.0 1.4 0.7
1% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1
No Penalty 0.0 0.0 0.0 0.0 0.0 0.0 3.6 0.0 0.2
- ------------------------------------------------------------------------------------------------------------------------
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
- ------------------------------------------------------------------------------------------------------------------------
CERTIFICATES BALANCE $1586.09 $1560.24 $1532.50 $1502.35 $1469.93 $1435.06 $1391.71 $1271.04 $1239.75
%INITIAL POOL BALANCE 100.0% 98.4% 96.6% 94.7% 92.7% 90.5% 87.7% 80.1% 78.2%
- ------------------------------------------------------------------------------------------------------------------------
PERIOD
----------------------------
PREPAYMENT PROVISION 9/07 9/08 9/13
- ------------------------------------------------------
<S> <C> <C> <C>
Locked Out/Defeasance 61.7% 52.0% 100.00%
Yield Maintenance 27.8 45.9 0.00
3% 0.0 0.0 0.00
2% 0.0 0.0 0.00
1% 0.7 0.0 0.00
No Penalty 9.7 2.2 0.00
- --------------------------------------------------------
TOTAL 100.0% 100.0% 100.0%
- --------------------------------------------------------
CERTIFICATES BALANCE $1160.91 $186.50 $5.31
%INITIAL POOL BALANCE 73.2% 11.8% 0.3%
- --------------------------------------------------------
</TABLE>
================================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 16
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
PREPAYMENT PREMIUM ALLOCATION
Any Prepayment Premiums (whether in the form of a yield maintenance
amount or a fixed prepayment premium) actually collected will be
distributed as follows: (i) first, to the holders of the Class X
Certificates and the holders of the respective Class or Classes of the
Class A, B, C, D and E Certificates then entitled to receive principal,
up to an amount equal to the corresponding PV Yield Loss Amount, pro
rata in accordance with their respective entitlement; and (ii) then, to
the extent of any remaining portion of such Prepayment Premiums, to the
holders of the Class X Certificates, pro rata based on the Notional
Amount of each such Class as of the preceding Distribution Date.
----------------------------------------------------------------------
<TABLE>
<CAPTION>
CHARACTERISTICS OF PREPAID MORTGAGE LOAN
<S> <C> <C> <C>
Original Balance $1,895,000 Date of Prepayment 10/1/01
Mortgage Rate 7.91% Balance at Prepayment $1,788,465
Original Term to Maturity 120 Months Remaining Term at Prepayment 72 Months
Original Amortization Term 300 Months Prepayment Premium $341,300
Lock-out Period 48 Months
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION TO CLASSES
Class A-1 Class X
---------------- -------------------
<S> <C> <C>
Prepaid Principal/Aggregate Notional Amount Reduction $1,788,465(1) $1,788,465(1)
Reinvestment Treasury Term(2) 6.00 Years 21.58 Years
Reinvestment Yield 4.219% 4.666%
Annuity Factor(3) 5.20502 13.42253
Pass-Through Rate 5.632% 1.04523%
Lost Coupon Amount(4) $ 25,277 $ 18,694
PV Yield Loss Amount(5) $ 131,567 $ 250,916
Distributed Prepayment Premium (%) 34.4% 65.6%
Distributed Prepayment Premium ($) $ 117,401 $ $223,899
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(1) Aggregate notional balance reduction for Class X Certificates (100% of prepaid principal).
(2) Number of months from related Distribution Date to Assumed Final Distribution Date for each such Class divided by 12.
(3) Annuity Factor is calculated using the following formula:
1-(1+T)n
---------
T
where "n" is the reinvestment treasury term referenced above in (2), and "T" the Reinvestment Yield, as listed in the
above chart.
(4) Lost Coupon Amount is calculated in the following manner:
for the Class A-1 Certificates (or other so entitled Class of Sequential Pay Certificates),
(Pass-Through Rate - Reinvestment Yield) x Prepaid Principal
and, for the Class X Certificates,
Pass-Through Rate x Aggregate Notional Amount Reduction
(5) PV Yield Loss Amount is equal to the product of the Annuity Factor and the Lost Coupon Amount for each such Class.
Note: The previous scenario is intended to demonstrate the effects of simulated prepayments on a hypothetical loan, and
may not be indicative of the actual collateral. In addition, the Pass-Through Rates above are hypothetical rates, and may
differ from the actual Pass-Through Rates.
</TABLE>
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 17
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
SIGNIFICANT MORTGAGE LOANS
International Home Furnishing Center Loan
The Loan: The Mortgage Loan (the "International Home Furnishing Center
Loan"), which is secured by the first deed of trust on a specialty retail center
(the "International Home Furnishing Center") in High Point, North Carolina,
represents approximately 4.7% of the Initial Pool Balance. Originated on July
20, 1998, the International Home Furnishing Center Loan has a principal balance
as of the Collateral Date of $74,317,972. The International Home Furnishing
Center Loan was made to International Home Furnishing Center, Inc. (the
"International Home Furnishing Center Borrower"), a single asset North Carolina
Corporation which is owned by the Bassett Furniture Co. (41%), Jefferson Pilot
Insurance (25%), the Randall B. Terry Investor Group (20%), and Furniture Brands
International (14%).
The International Home Furnishing Center Loan has a remaining term of
83 months and matures on August 1, 2005. The International Home Furnishing
Center Loan may not be prepaid prior to, and including, March 31, 2005. However,
the International Home Furnishing Center Loan is subject to Defeasance with
United States Treasury obligations beginning two years from the Closing Date.
The International Home Furnishing Center Loan may be prepaid without the payment
of a prepayment penalty during the five (5) months preceding the maturity date.
The International Home Furnishing Center Loan is a seven year self-liquidating
loan.
Additional terms and escrows for the International Home Furnishing
Center Loan are set forth in Annex B of the Prospectus.
The Property: The International Home Furnishing Center ("IHFC") is the
largest of the showrooms in High Point, NC, the "Furniture Capital of the
World". With 2,519,415 sf, the subject facility is much larger than the next
largest showroom (approximately 400,000 square feet) and is the major component
of High Point's seven million square feet of showroom space. Bi-annually, IHFC
hosts the International Home Furnishings Market Show which attracts over 70,000
buyers. Constructed in phases, from 1921 through 1994, IHFC is composed of two
buildings connected by an eight story enclosed and elevated walkway with
building heights of ten and eleven stories. The basement area in the Market
Building contains seven loading docks, a shop area, a cafeteria and a Press
Center. The second building is located across Wrenn St. and is made up of five
wings; Wrenn, Green, Commerce, Design Center and Hamilton. On the eleventh floor
of the Green wing there is a large ballroom, a private club/restaurant with bar
facilities and commercial kitchen facilities which are used for industry
functions, weddings and business conventions.
Debt Service Escrow: Tenants generally sign five year leases and pay
their rent in semi-annual installments on May 1 and November 1. A debt service
escrow has been established, funded initially with seven months of debt service,
to mitigate any risk associated with the uneven flow of income.
Property Management: The International Home Furnishing Center ("IHFC")
has a full-time marketing and leasing staff, as well as, a building operations
group which numbers year-round at 48 and increases to over 300 during show
times.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 18
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Operating History:
<TABLE>
<CAPTION>
1995 1996 1997 ORIGINATOR'S
ACTUAL ACTUAL ACTUAL UNDERWRITTEN
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
EGI ........................ $34,553,647 $33,918,360 $35,328,417 $30,910,638
Expenses ................... 11,326,006 10,363,450 10,045,835 10,801,178
----------- ----------- ----------- -----------
NOI ........................ $23,227,641 $23,554,910 $25,282,582 $20,109,460
UW Cash Flow ............... $23,227,641 $23,554,910 $25,282,582 $19,479,596
=========== =========== =========== ===========
Occupancy .................. 100% 100% 100% 90.10%
DSCR Based on NOI........... 1.70x 1.72x 1.85x 1.47x
DSCR based on UW Cash
Flow ....................... 1.70x 1.72x 1.85x 1.43x
</TABLE>
Lease Expiration Schedule:
<TABLE>
<CAPTION>
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- ---------------------- ------------------------------ --------------------------------
<S> <C> <C>
Vacant -- 0.00%
Year 1......... 327,648 13.00%
Year 2......... 1,337,992 53.11%
Year 3......... 229,732 9.12%
Year 4......... 426,657 16.93%
Year 5......... 172,240 6.84%
Year 7......... 11,708 0.46%
</TABLE>
Certain Environmental Conditions. The Phase I environmental assessment
conducted in connection with the origination of the International Home
Furnishings Center Loan recommended that a Phase II study also be conducted with
respect to potential contamination of the related Mortgaged Property resulting
from prior manufactoring activity conducted at the site and certain leaking
underground storage tanks("LUSTs"). Due to the location of the improvements on
the Mortgaged Property, the Phase II study has not been and is not expected to
be conducted. With respect to environmental liabilities arising from prior
manufactoring activities, the related borrower has obtained insurance. There can
be no assurance that the amount of such insurance will be adequate to cover the
liabilities, if any, ultimately associated with such prior activities. With
respect to environmental liabilities arising from soil contamination present on
the Mortgaged Property, no insurance has been obtained. However, the three LUSTs
that were the source of the existing contamination have been removed, and the
affected area of the Mortgaged Property is fully paved. In addition, the
Mortgaged Property is connected to the municipal water supply.
The Gateway Center I and Gateway Center II Loans
The Loans. Gateway Center I and Gateway Center II represent 1.7% and
2.5% of the Initial Pool Balance, respectively. Both loans were originated by
the Seller on June 10, 1998. Gateway Center I has a principal balance as of the
Collateral Date of $27,166,909, and Gateway Center II has a principal balance of
$39,751,581. Both loans are secured by a first deed of trust on bulk warehouse
facilities in Columbia, Maryland. The Gateway Center I loan was made to GCC A-40
Associates and the Gateway Center II was made to Parcel A-74 Associates, LLC.
Both entities are single-asset, Delaware limited liability companies.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 19
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
The Gateway I and II Loans have a remaining term of 118 and 114 months
and mature on July 1, 2008 and March 1, 2008, respectively. The Gateway I and II
Loans may not be prepaid before and including February 29, 2008 and October 31,
2007, respectively. Both loans are subject to Defeasance with U.S. Treasury
obligations beginning two years from the Closing Date. During the final 5 months
of the loan, the loan may be prepaid without consideration.
Additional terms and escrows for the Gateway Center I and Gateway
Center II loans are set forth in Annex B of the Prospectus.
The Properties. Gateway Commerce Center I is composed of 739,153 sf of
bulk warehouse and office space located along the I-95 corridor within the
Baltimore MSA. The majority of net rentable square feet is bulk warehouse with
ceiling clear height of 30' - 60' built upon 24" concrete slab. The remainder of
the space is office space. The building was originally constructed in 1970 and
fully renovated in 1994. Gateway I and II are situated upon a total of 82.1
acres which provides ample room for building expansion, trailer maneuverability,
truck storage, and employee parking. Gateway Commerce Center I has three credit
tenants which generate 58% of underwritten gross potential income and occupy 53%
of net rentable square footage: Revlon ("B" credit rating), Giant Food Inc.
(controlled by AHOLD USA, an "A" rated company), and Public Storage ("A-" credit
rating).
Gateway Commerce Center II includes two buildings, on the total site of
82.1 acres that together provide 1,251,103 sf of bulk warehouse and office
space. Approximately, 1,212,103 sf of the net rentable square footage is bulk
warehouse with ceiling clear height of 50' - 60', built upon 24" concrete slab.
The balance of the space, approximately 39,000 sf, is office space. Gateway
Commerce Center II was originally constructed in 1970 and fully renovated in
1994. The Gateway Commerce Center II Loan matures co-terminous with the Sears'
lease term. Distribution access is achieved via more than 100 dock doors with
levelers. Building Two, totaling 289,450 sf, includes 40,000 sf of freezer space
(Simco/Jack & Jill - ice cream distributor), 39,000 sf of office space and 30
dock doors. Together, Sears (with S&P credit rating of "A-") and the United
States Coast Guard generate 95.0% of underwritten gross potential income and
occupy 90% of Gateway Commerce Center II's net rentable square footage.
Property Management. The property is managed by the Penrose Group, an
entity that is affiliated to the borrowing entity through common ownership and
has over three million square feet under management. The Pritzker family, whose
interests include real estate, Ticketmaster, Royal Caribbean Cruises, Hyatt
retirement centers and New York's Grand Hyatt, will control the Borrower
Principal. The Pritzker family holding company, H Group Holding, generates
annual revenues exceeding $915 million. The Pritzker family's net worth exceeds
$6 billion.
<TABLE>
<CAPTION>
Operating History - Gateway Center I
APPRAISER'S ESTIMATE ORIGINATOR'S UNDERWRITTEN
-------------------------------- --------------------------------
<S> <C> <C>
EGI........................... $3,611,967 $3,480,936
Expenses...................... 596,624 585,605
-------------------------------- --------------------------------
NOI........................... $3,015,343 $2,895,331
Cash Flow..................... $2,709,521 $2,766,775
================================ ================================
Occupancy..................... 98.0% 89.7%
DSCR based on NOI............. 1.37x 1.32x
DSCR based on Cash Flow....... 1.24x 1.26x
</TABLE>
================================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 20
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Note: Due to Gateway Center I's extensive renovations in 1996 and 1997, its
financial history is limited.
Lease Expiration Schedule - Gateway Center I
<TABLE>
<CAPTION>
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- ---------------------------- ----------------------------- --------------------------------
<S> <C> <C>
Vacant.......... 48,000 6.49%
Year 5.......... 366,003 49.52%
Year 9.......... 205,300 27.78%
Year 10......... 119,850 16.21%
</TABLE>
Operating History - Gateway Center II
<TABLE>
<CAPTION>
1995 1996 1997 ORIGINATOR'S
ACTUAL ACTUAL ACTUAL UNDERWRITTEN
------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
EGI............. $4,232,888 $4,221,364 $4,474,287 $5,208,283
Expenses........ 946,269 1,165,184 1,270,918 953,303
------------------- ------------------ ------------------- -------------------
NOI............. $3,286,619 $3,056,180 $3,203,369 $4,254,980
Cash Flow....... $3,286,619 $3,056,180 $3,203,369 $4,067,093
=================== ================== =================== ===================
Occupancy........ 90.0% 100.0% 100.0% 94.8%
DSCR based on NOI...... 1.02x 0.95x 1.00x 1.33x
DSCR based on Cash Flow.. 1.02x 0.95x 1.00x 1.27x
</TABLE>
<TABLE>
<CAPTION>
Lease Expiration Schedule - Gateway Center II
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- ---------------------------- ----------------------------- --------------------------------
<S> <C> <C>
Vacant............ 39,000 3.12%
Year 5............ 170,450 13.62%
Year 10........... 961,653 76.86%
</TABLE>
The Journal Square Plaza II Loan
The Loan. This Mortgage Loan (the "Journal Square Plaza II Loan")
represents approximately 2.6% of the Initial Pool Balance and is secured by a
first mortgage on a nine story, Class A office building (the "Journal Square
Plaza II") located in Jersey City, New Jersey near Manhattan, New York.
Originated on July 10, 1998, the Journal Square Plaza II Loan has a principal
balance as of the Collateral Date of $40,973,700. The Journal Square Plaza II
Loan was made to PHM Urban Renewal Associates, L.L.C., a single asset, special
purpose New Jersey limited liability company (the "Journal Square Borrower")
which is controlled by Hartz Mountain Industries, Inc.
The Journal Square Plaza II Loan has a remaining term of 119 months and
matures on August 1, 2008. The Journal Square Plaza II Loan may not be prepaid
prior to, and including, April 1, 2008. However the Journal Square Plaza II Loan
is subject to Defeasance with United States Treasury obligations beginning two
years from the
================================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 21
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
Closing Date. The Journal Square Plaza II Loan may be prepaid
without prepayment penalty from April 2, 2008 until the Maturity Date.
Additional terms and escrows for the Journal Square Plaza II Loan are
set forth in Annex B of the Prospectus.
The Property. Journal Square Plaza II consists of a single, nine-story
office building, and an adjacent multi-level parking garage containing 1,073
parking spaces, located on 2.4 acres in the central business district of Jersey
City, New Jersey near downtown Manhattan. Built in 1987, and consisting of
275,614 net rentable square feet, the property was 100% occupied as of July 14,
1998. The four tenants which occupy the entire building include Automated Data
Processing ("ADP"), Bank of New York, the United States General Services
Administration and the Hudson County Improvement Authority. ADP("A1+" rated)
occupies over 91% of the net rentable area. ADP has also invested approximately
$40 to $50 million in their space on computer, electrical and telecommunications
systems.
ADP Rollover Escrow/Lockbox. The Lender will collect a monthly rollover
reserve of $52,620 beginning February 1, 2003. In the event that ADP gives
notice to vacate their premises at their option renewal notice date, January 1,
2007, which falls twelve months prior to the expiration date of the current
lease term, the Lender shall have the right to implement a springing hard
lockbox and the rollover reserve will increase to include all net cash flow
generated by the property over and above normal operating expenses and debt
service. This cash sweep will be utilized for leasing commissions, tenant
improvements and debt service while the property is retenanted.
Property Management. Journal Square Plaza II is managed by Hartz
Mountain Industries, Inc., which currently has approximately 32 million square
feet under management, and is the controlling member of the Journal Square
Borrower.
Operating History:
<TABLE>
<CAPTION>
1995 1996 1997 ORIGINATOR'S
ACTUAL ACTUAL ACTUAL UNDERWRITTEN
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
EGI............... $6,093,286 $6,315,602 $6,295,913 $7,263,740
Expenses.......... 1,421,704 1,455,527 1,482,372 2,636,845
---------------- ---------------- ---------------- ----------------
NOI............... $4,671,582 $4,860,075 $4,813,541 $4,626,895
UW Cash Flow...... $4,671,582 $4,860,075 $4,813,541 $4,232,451
================ ================ ================ ================
Occupancy........ NAV 100% 100% 91.74%
DSCR Based on
NOI............. 1.44x 1.50x 1.48x 1.43x
DSCR based on Cash
Flow........ 1.44x 1.50x 1.48x 1.30x
</TABLE>
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 22
NATIONSLINK FUNDING CORPORATION
Commercial Mortgage Pass-Through Certificates
Series 1998-2
Class A, B, C, D, E, & X Certificates
$1,399,564,622 (approximate)
<TABLE>
<CAPTION>
Lease Expiration Schedule:
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- ----------------------------------- ------------ --------------------------
<S> <C> <C>
Vacant ............................ -- 0.00%
Year 5 ............................ 23,097 8.38%
Year 10 ........................... 249,704 90.60%
</TABLE>
The Research Tri-Center North A and Research Tri-Center South B Loans
The Loans. Research Tri-Center North A ("North A)" and Research
Tri-Center South B ("South B") represent 1.7% and 0.8% of the Initial Pool
Balance, respectively. Both loans were originated by the Seller on January 30,
1998. North A has a principal balance as of the Collateral Date of $26,617,153,
and South B has a principal balance of $13,288,683. Both loans are secured by a
first deed of trust on light industrial and flex facilities in Durham, North
Carolina. The North A loan was made to Tri-Center (KMWMDLJ), LLC and the South B
loan was made to Tri-Center (No. 4), LLC. Both entities are single-asset,
Virginia limited liability companies. The Research Tri-Center North A and South
B Loans are cross-collateralized and cross-defaulted with each other.
The Tri-Center North A and South B Loans have a remaining term of 77
months and mature on February 1, 2005. Neither may be prepaid prior to January
31, 2001. From February 1, 2001 until July 31, 2004, the loan may be prepaid
upon payment of a prepayment premium in the amount of the greater than 1% or the
premium derived from a yield maintenance calculation. Subsequent to July 31,
2004, the loan may be prepaid without payment of a prepayment premium.
Additional terms and escrows for the North A and South B loans are set
forth in Annex B of the Prospectus.
The Properties. Research Tri-Center North A is a 631,252 sf light
industrial center built in phases between 1988 and 1990. The subject is
comprised of 3 structures, North I, North III/IV and North V. North I is an
158,856 sf of office/flex space with Glaxo Wellcome as it's largest tenant.
North III/IV is a 272,396 sf bulk distribution warehouse that is 100% leased to
IBM. North V is a 200,000 sf light manufacturing facility that is 100% air
conditioned and 100% leased to IBM. With IBM ("A" rated) and Glaxo Wellcome
("AA" rated) occupying 472,396 sf and 26,768 sf, North A, respectively, the
property is 79.1% occupied by credit tenants. The property has excellent
location adjacent to the Research Triangle Park with good access to major
interchanges and I-40.
Research Tri-Center South B is a 379,656 sf light industrial center
located near Research Triangle Park in Durham, NC. The property includes three
buildings, South IV and South VI, completed in 1997, and South VII, completed in
1998. South IV is a 84,600 sf bulk distribution center that is 100% leased to
Road Packaging Systems (a subsidiary of Caliber Systems, "BBB+" rated). South VI
is a 170,754 sf light manufacturing facility that is 100% air conditioned and
68% leased to Bell & Howell("BB" rated). South VII is a 124,302 sf bulk
distribution warehouse that is 81% leased to Medline and Triangle Services.
Property Management. North A and South B are managed by Craig Davis
Properties, a leading management company in the Raleigh area with 3.5 million
square feet under management.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 23
NATIONSLINK FUNDING CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-2
CLASS A, B, C, D, E, & X CERTIFICATES
$1,399,564,622 (APPROXIMATE)
Operating History - North A
<TABLE>
<CAPTION>
1995 1996 1997 ORIGINATOR'S
ACTUAL ACTUAL ACTUAL UNDERWRITTEN
------------------ ------------------ -------------------- -------------------
<S> <C> <C> <C> <C>
EGI............. $3,851,687 $3,509,310 $3,723,902 $3,755,081
Expenses........ 900,679 861,768 884,223 882,320
------------------ ------------------ -------------------- -------------------
NOI............. $2,951,008 $2,647,542 $2,839,679 $2,872,761
Cash Flow....... $2,731,811 $2,088,042 $2,786,316 $2,685,229
================== ================== ==================== ===================
Occupancy....... NAV NAV NAV 90.4%
DSCR based on NOI..... 1.37X 1.23X 1.32X 1.33X
DSCR based on Cash
Flow.................. 1.27X 0.97X 1.29X 1.24X
</TABLE>
Lease Expiration Schedule - North A
<TABLE>
<CAPTION>
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- ------------------------- ------------------------------ ---------------------------------
<S> <C> <C>
Vacant.......... 97,603 15.46%
Year 1.......... 8,717 1.38%
Year 3.......... 52,536 8.32%
Year 4.......... 272,396 43.15%
Year 6.......... 200,000 31.68%
</TABLE>
Operating History - South B
<TABLE>
<CAPTION>
APPRAISER'S ESTIMATE ORIGINATOR'S UNDERWRITTEN
------------------------------ ---------------------------------
<S> <C> <C>
EGI...................... $2,108,904 $1,998,831
Expenses................. 405,701 459,317
------------------------------ ---------------------------------
NOI...................... $1,703,203 $1,539,514
Cash Flow................ $1,621,827 $1,446,814
============================== =================================
Occupancy................... 98.0% 90.3%
DSCR based on NOI... 1.58X 1.43X
DSCR based on Cash Flow.. 1.51X 1.34X
</TABLE>
Note: Due to South B's construction in 1997 and 1998, its financial history is
limited.
Lease Expiration Schedule - South B
<TABLE>
<CAPTION>
YEAR OF SQUARE FEET PERCENTAGE OF NET RENTABLE
LOAN TERM SQUARE FEET
- --------------------- ------------------------------ ---------------------------------
<S> <C> <C>
Vacant........... 23,441 6.17%
Year 1........... 38,925 10.25%
Year 3........... 38,710 10.20%
Year 5........... 62,151 16.37%
Year 6........... 84,600 22.28%
</TABLE>
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 24
NATIONSLINK FUNDING CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-2
CLASS A, B, C, D, E, & X CERTIFICATES
$1,399,564,622 (APPROXIMATE)
Subordinate Financing. There is secondary financing of approximately
$3,817,140 with a junior lien on Research Tri-Center North A. Similarly, there
is secondary financing of approximately $1,908,576 with a junior lien on
Research Tri-Center South B. In both scenarios, an "Agreement Concerning and
Amendment of Additional Indebtedness" was executed by the lender, the borrower,
and the holder of the additional, junior indebtedness. This document prohibits
any payments (principal, interest or otherwise) on the additional, junior
indebtedness except to the extent that operating income exceeds operating
expenses, debt service and required escrows.
===============================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 25
NATIONSLINK FUNDING CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-2
CLASS A, B, C, D, E, & X CERTIFICATES
$1,399,564,622 (APPROXIMATE)
PRICE/YIELD TABLES
The tables set forth hereafter show the corporate bond equivalent
yield, modified duration, weighted average life and the first
Distribution Date and final Distribution Date on which principal or
interest, as applicable, is to be paid with respect to the Classes of
Offered Certificates under various scenarios and for a variety of
purchase prices. Purchase prices are generally expressed in 32nds (i.e.
9-12 means 9 12/32) as a percentage of the related aggregate principal
balance (the "Certificate Balance") of the relevant Class.
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, would cause the discounted present value of such assumed
stream of cash flows as of November 1, 1998 to equal the assumed
purchase prices, plus accrued interest at the applicable pass-through
rate from and including the Commencement Date to but excluding the
Delivery Date, and converting such monthly rates to semi-annual
corporate bond equivalent rates. Assumed cash flows were determined
based on actual loan terms, the coupons set forth in each table, and
the assumptions as to prepayments, extensions and receipts of
prepayment premiums set forth in each table, and to the extent not
inconsistent herewith, based on the Maturity Assumptions as defined in
the preliminary prospectus dated October , 1998 with respect to the
Offered Certificates. 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 Balances of the respective Classes of Offered Certificates
and consequently does not purport to reflect the return on any
investment in such Classes of Certificates when such reinvestment rates
are considered. For purposes of these tables, "modified duration" has
been calculated using Macaulay Duration. The Macaulay Duration is
calculated as the present value weighted average time to receive future
payments of principal and interest. Modified duration is calculated by
dividing the Macaulay Duration by the appropriate semi-annual
compounding factor. The duration of a security may be calculated
according to various methodologies; accordingly, no representation is
made by the Depositor, the Underwriters or any other person that the
"modified duration" approach used herein is appropriate. Duration, like
yield, will be affected by the prepayment rate of the Mortgage Loans
and extensions in respect of Balloon Payments that actually occur
during the life of the Offered Certificates and by the actual
performance of the Mortgage Loans, all of which may differ, and may
differ significantly, from the assumptions used in preparing the tables
below. The modified duration shown in the following tables, in each
case, relates to the yield shown immediately above such modified
duration number.
================================================================================
THIS MATERIAL IS FOR YOUR PRIVATE INFORMATION AND NATIONSBANC MONTGOMERY
SECURITIES LLC (THE "UNDERWRITER") IS 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 THE
UNDERWRITER CONSIDERS RELIABLE, BUT THE UNDERWRITER DOES 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
PERTAIN TO SECURITIES THAT ULTIMATELY ARE NOT SOLD. THE INFORMATION CONTAINED IN
THIS MATERIAL MAY BE BASED ON ASSUMPTIONS REGARDING MARKET CONDITIONS AND OTHER
MATTERS AS REFLECTED HEREIN. THE UNDERWRITER MAKES NO REPRESENTATION 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. THE UNDERWRITER AND ITS
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 ALL 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. ANY INFORMATION IN THE MATERIAL,
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
SOLELY BY THE UNDERWRITER AND NOT BY THE ISSUER OF THE SECURITIES. THE ISSUER OF
THE SECURITIES HAS NOT PREPARED, REVIEWED OR PARTICIPATED IN THE PREPARATION OF
THIS MATERIAL, IS NOT RESPONSIBLE FOR THE ACCURACY OF THIS MATERIAL AND HAS NOT
AUTHORIZED THE DISSEMINATION OF THIS MATERIAL. THE UNDERWRITER IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE> 26
PRICE / YIELD TABLE - CLASS A-1
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 429,503,407.00
Interest Accrued From 11/1/98 Initial Coupon 5.9180%
Next Pmt Date 12/20/98 Accrued Int 2,047,562.05
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
--------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0% 50.0% 75.0% 100.0%
----- ---- ---- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
98-24 6.204% 6.205% 6.207% 6.210% 6.214% 6.218% 6.226%
98-28 6.176% 6.177% 6.178% 6.181% 6.185% 6.189% 6.196%
99-00 6.147% 6.148% 6.149% 6.152% 6.156% 6.160% 6.166%
99-04 6.119% 6.120% 6.121% 6.123% 6.127% 6.131% 6.137%
99-08 6.090% 6.091% 6.092% 6.095% 6.099% 6.102% 6.107%
Mod Dur 4.42 4.41 4.40 4.38 4.34 4.31 4.23
99-12 6.062% 6.063% 6.064% 6.066% 6.070% 6.073% 6.077%
99-16 6.034% 6.035% 6.035% 6.038% 6.041% 6.044% 6.048%
99-20 6.006% 6.006% 6.007% 6.009% 6.012% 6.015% 6.018%
99-24 5.977% 5.978% 5.979% 5.981% 5.984% 5.986% 5.989%
99-28 5.949% 5.950% 5.950% 5.952% 5.955% 5.957% 5.959%
Mod Dur 4.43 4.42 4.41 4.39 4.36 4.32 4.24
100-00 5.921% 5.922% 5.922% 5.924% 5.926% 5.928% 5.930%
100-04 5.893% 5.894% 5.894% 5.896% 5.898% 5.899% 5.901%
100-08 5.865% 5.866% 5.866% 5.867% 5.869% 5.871% 5.871%
100-12 5.837% 5.838% 5.838% 5.839% 5.841% 5.842% 5.842%
100-16 5.809% 5.810% 5.810% 5.811% 5.813% 5.814% 5.813%
Mod Dur 4.44 4.43 4.42 4.40 4.37 4.33 4.25
100-20 5.781% 5.782% 5.782% 5.783% 5.784% 5.785% 5.784%
100-24 5.754% 5.754% 5.754% 5.755% 5.756% 5.757% 5.755%
100-28 5.726% 5.726% 5.726% 5.727% 5.728% 5.728% 5.726%
101-00 5.698% 5.698% 5.698% 5.699% 5.700% 5.700% 5.697%
101-04 5.670% 5.671% 5.671% 5.671% 5.671% 5.671% 5.668%
Mod Dur 4.45 4.44 4.44 4.41 4.38 4.35 4.26
101-08 5.643% 5.643% 5.643% 5.643% 5.643% 5.643% 5.639%
101-12 5.615% 5.615% 5.615% 5.615% 5.615% 5.615% 5.610%
101-16 5.588% 5.588% 5.588% 5.588% 5.587% 5.587% 5.581%
101-20 5.560% 5.560% 5.560% 5.560% 5.559% 5.559% 5.553%
101-24 5.533% 5.533% 5.533% 5.532% 5.532% 5.530% 5.524%
Mod Dur 4.47 4.46 4.45 4.42 4.39 4.36 4.27
101-28 5.506% 5.505% 5.505% 5.505% 5.504% 5.502% 5.495%
102-00 5.478% 5.478% 5.478% 5.477% 5.476% 5.474% 5.467%
102-04 5.451% 5.451% 5.450% 5.450% 5.448% 5.446% 5.438%
102-08 5.424% 5.423% 5.423% 5.422% 5.421% 5.419% 5.410%
102-12 5.397% 5.396% 5.396% 5.395% 5.393% 5.391% 5.381%
Mod Dur 4.48 4.47 4.46 4.44 4.40 4.37 4.28
WA Life (Yrs) 5.49 5.47 5.46 5.42 5.37 5.32 5.19
First Prin Date 12/20/98 12/20/98 12/20/98 12/20/98 12/20/98 12/20/98 12/20/98
Final Prin Date 11/20/07 11/20/07 10/20/07 9/20/07 9/20/07 9/20/07 6/20/07
% of Prin Returned 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
<CAPTION>
---------------------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ---------------------------------------
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF
- ----------------------------------------------------------------------
NOVEMBER 1, 1998 1/4 3.970%
- ----------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT
PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL
TO THE PV YIELD LOSS AMOUNT FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 27
PRICE / YIELD TABLE - CLASS A-2
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 676,635,062.00
Interest Accrued From 11/1/98 Initial Coupon 6.4530%
Next Pmt Date 12/20/98 Accrued Int 3,517,318.21
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
---------------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0% 50.0% 75.0% 100.0%
----- ---- ---- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
99-24 6.527% 6.527% 6.527% 6.527% 6.527% 6.527% 6.527%
99-28 6.509% 6.509% 6.509% 6.509% 6.509% 6.509% 6.508%
100-00 6.491% 6.491% 6.491% 6.491% 6.491% 6.490% 6.489%
100-04 6.473% 6.473% 6.473% 6.473% 6.472% 6.472% 6.471%
100-08 6.455% 6.455% 6.455% 6.454% 6.454% 6.454% 6.452%
Mod Dur 6.86 6.86 6.86 6.85 6.83 6.80 6.68
100-12 6.437% 6.436% 6.436% 6.436% 6.436% 6.436% 6.434%
100-16 6.418% 6.418% 6.418% 6.418% 6.418% 6.417% 6.415%
100-20 6.400% 6.400% 6.400% 6.400% 6.400% 6.399% 6.397%
100-24 6.383% 6.382% 6.382% 6.382% 6.382% 6.381% 6.378%
100-28 6.365% 6.364% 6.364% 6.364% 6.364% 6.363% 6.360%
Mod Dur 6.87 6.87 6.87 6.86 6.84 6.82 6.69
101-00 6.347% 6.347% 6.346% 6.346% 6.346% 6.345% 6.341%
101-04 6.329% 6.329% 6.329% 6.328% 6.328% 6.327% 6.323%
101-08 6.311% 6.311% 6.311% 6.310% 6.310% 6.309% 6.304%
101-12 6.293% 6.293% 6.293% 6.292% 6.292% 6.291% 6.286%
101-16 6.275% 6.275% 6.275% 6.275% 6.274% 6.273% 6.268%
Mod Dur 6.88 6.88 6.88 6.87 6.85 6.83 6.70
101-20 6.257% 6.257% 6.257% 6.257% 6.256% 6.255% 6.250%
101-24 6.240% 6.240% 6.239% 6.239% 6.238% 6.237% 6.231%
101-28 6.222% 6.222% 6.222% 6.221% 6.220% 6.219% 6.213%
102-00 6.204% 6.204% 6.204% 6.204% 6.203% 6.201% 6.195%
102-04 6.187% 6.186% 6.186% 6.186% 6.185% 6.184% 6.177%
Mod Dur 6.89 6.89 6.89 6.88 6.86 6.84 6.71
102-08 6.169% 6.169% 6.169% 6.168% 6.167% 6.166% 6.159%
102-12 6.151% 6.151% 6.151% 6.150% 6.149% 6.148% 6.140%
102-16 6.134% 6.134% 6.133% 6.133% 6.132% 6.130% 6.122%
102-20 6.116% 6.116% 6.116% 6.115% 6.114% 6.113% 6.104%
102-24 6.099% 6.098% 6.098% 6.098% 6.096% 6.095% 6.086%
Mod Dur 6.91 6.90 6.90 6.89 6.87 6.85 6.72
102-28 6.081% 6.081% 6.081% 6.080% 6.079% 6.077% 6.068%
103-00 6.064% 6.063% 6.063% 6.063% 6.061% 6.060% 6.050%
103-04 6.046% 6.046% 6.046% 6.045% 6.044% 6.042% 6.032%
103-08 6.029% 6.028% 6.028% 6.028% 6.026% 6.024% 6.014%
103-12 6.011% 6.011% 6.011% 6.010% 6.009% 6.007% 5.997%
Mod Dur 6.92 6.91 6.91 6.90 6.88 6.86 6.73
WA Life (Yrs) 9.43 9.42 9.42 9.40 9.37 9.32 9.08
First Prin Date 11/20/07 11/20/07 10/20/07 9/20/07 9/20/07 9/20/07 6/20/07
Final Prin Date 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 6/20/08 4/20/08
% of Prin Returned 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
<CAPTION>
---------------------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ---------------------------------------
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF
- ----------------------------------------------------------------------
NOVEMBER 1, 1998 1/4 3.970%
- ----------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT
PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL
TO THE PV YIELD LOSS AMOUNT FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 28
PRICE / YIELD TABLE - CLASS B
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 79,304,366.00
Interest Accrued From 11/1/98 Initial Coupon 6.6950%
Next Pmt Date 12/20/98 Accrued Int 427,703.87
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
---------------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0% 50.0% 75.0% 100.0%
----- ---- ---- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
99-24 6.771% 6.771% 6.771% 6.771% 6.771% 6.771% 6.770%
99-28 6.753% 6.753% 6.753% 6.753% 6.753% 6.752% 6.752%
100-00 6.735% 6.735% 6.735% 6.735% 6.735% 6.734% 6.733%
100-04 6.717% 6.717% 6.717% 6.717% 6.717% 6.716% 6.715%
100-08 6.699% 6.699% 6.699% 6.699% 6.699% 6.698% 6.697%
Mod Dur 6.89 6.89 6.89 6.89 6.89 6.88 6.79
100-12 6.681% 6.681% 6.681% 6.681% 6.681% 6.680% 6.679%
100-16 6.663% 6.663% 6.663% 6.663% 6.663% 6.662% 6.660%
100-20 6.645% 6.645% 6.645% 6.645% 6.645% 6.644% 6.642%
100-24 6.627% 6.627% 6.627% 6.627% 6.627% 6.626% 6.624%
100-28 6.609% 6.609% 6.609% 6.609% 6.609% 6.608% 6.606%
Mod Dur 6.91 6.91 6.91 6.91 6.91 6.89 6.80
101-00 6.591% 6.591% 6.591% 6.591% 6.591% 6.591% 6.588%
101-04 6.574% 6.574% 6.574% 6.573% 6.573% 6.573% 6.570%
101-08 6.556% 6.556% 6.556% 6.556% 6.555% 6.555% 6.552%
101-12 6.538% 6.538% 6.538% 6.538% 6.538% 6.537% 6.533%
101-16 6.520% 6.520% 6.520% 6.520% 6.520% 6.519% 6.515%
Mod Dur 6.92 6.92 6.92 6.92 6.92 6.90 6.81
101-20 6.503% 6.503% 6.503% 6.502% 6.502% 6.502% 6.497%
101-24 6.485% 6.485% 6.485% 6.485% 6.485% 6.484% 6.480%
101-28 6.467% 6.467% 6.467% 6.467% 6.467% 6.466% 6.462%
102-00 6.450% 6.450% 6.450% 6.450% 6.449% 6.449% 6.444%
102-04 6.432% 6.432% 6.432% 6.432% 6.432% 6.431% 6.426%
Mod Dur 6.93 6.93 6.93 6.93 6.93 6.92 6.82
102-08 6.415% 6.415% 6.415% 6.414% 6.414% 6.413% 6.408%
102-12 6.397% 6.397% 6.397% 6.397% 6.397% 6.396% 6.390%
102-16 6.380% 6.380% 6.379% 6.379% 6.379% 6.378% 6.372%
102-20 6.362% 6.362% 6.362% 6.362% 6.362% 6.361% 6.355%
102-24 6.345% 6.345% 6.345% 6.344% 6.344% 6.343% 6.337%
Mod Dur 6.94 6.94 6.94 6.94 6.94 6.93 6.83
102-28 6.327% 6.327% 6.327% 6.327% 6.327% 6.326% 6.319%
103-00 6.310% 6.310% 6.310% 6.310% 6.309% 6.308% 6.302%
103-04 6.292% 6.292% 6.292% 6.292% 6.292% 6.291% 6.284%
103-08 6.275% 6.275% 6.275% 6.275% 6.275% 6.274% 6.266%
103-12 6.258% 6.258% 6.258% 6.258% 6.257% 6.256% 6.249%
Mod Dur 6.95 6.95 6.95 6.95 6.95 6.94 6.84
WA Life (Yrs) 9.64 9.64 9.64 9.64 9.64 9.61 9.43
First Prin Date 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 6/20/08 4/20/08
Final Prin Date 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 5/20/08
% of Prin Returned 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
<CAPTION>
---------------------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ---------------------------------------
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF
- ----------------------------------------------------------------------
NOVEMBER 1, 1998 1/4 3.970%
- ----------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT
PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL
TO THE PV YIELD LOSS AMOUNT FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 29
PRICE / YIELD TABLE - CLASS C
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 95,165,239.00
Interest Accrued From 11/1/98 Initial Coupon 6.8840%
Next Pmt Date 12/20/98 Accrued Int 527,733.55
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
-------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0% 50.0% 75.0% 100.0%
----- ---- ---- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
99-08 7.024% 7.024% 7.024% 7.024% 7.024% 7.024% 7.025%
99-12 7.006% 7.006% 7.006% 7.006% 7.006% 7.006% 7.006%
99-16 6.988% 6.988% 6.988% 6.988% 6.988% 6.987% 6.988%
99-20 6.970% 6.970% 6.970% 6.969% 6.969% 6.969% 6.969%
99-24 6.951% 6.951% 6.951% 6.951% 6.951% 6.951% 6.950%
Mod Dur 6.84 6.84 6.84 6.83 6.83 6.83 6.74
99-28 6.933% 6.933% 6.933% 6.933% 6.933% 6.933% 6.932%
100-00 6.915% 6.915% 6.915% 6.915% 6.915% 6.914% 6.914%
100-04 6.897% 6.897% 6.897% 6.897% 6.896% 6.896% 6.895%
100-08 6.879% 6.879% 6.879% 6.878% 6.878% 6.878% 6.877%
100-12 6.861% 6.861% 6.861% 6.860% 6.860% 6.860% 6.858%
Mod Dur 6.85 6.85 6.85 6.85 6.84 6.84 6.75
100-16 6.843% 6.843% 6.842% 6.842% 6.842% 6.842% 6.840%
100-20 6.825% 6.824% 6.824% 6.824% 6.824% 6.824% 6.822%
100-24 6.807% 6.806% 6.806% 6.806% 6.806% 6.806% 6.804%
100-28 6.789% 6.788% 6.788% 6.788% 6.788% 6.788% 6.785%
101-00 6.771% 6.771% 6.770% 6.770% 6.770% 6.770% 6.767%
Mod Dur 6.86 6.86 6.86 6.86 6.85 6.85 6.77
101-04 6.753% 6.753% 6.753% 6.752% 6.752% 6.752% 6.749%
101-08 6.735% 6.735% 6.735% 6.734% 6.734% 6.734% 6.731%
101-12 6.717% 6.717% 6.717% 6.717% 6.716% 6.716% 6.713%
101-16 6.699% 6.699% 6.699% 6.699% 6.698% 6.698% 6.695%
101-20 6.681% 6.681% 6.681% 6.681% 6.680% 6.680% 6.677%
Mod Dur 6.88 6.88 6.87 6.87 6.86 6.86 6.78
101-24 6.664% 6.663% 6.663% 6.663% 6.663% 6.662% 6.659%
101-28 6.646% 6.646% 6.646% 6.645% 6.645% 6.645% 6.641%
102-00 6.628% 6.628% 6.628% 6.628% 6.627% 6.627% 6.623%
102-04 6.610% 6.610% 6.610% 6.610% 6.609% 6.609% 6.605%
102-08 6.593% 6.593% 6.592% 6.592% 6.592% 6.591% 6.587%
Mod Dur 6.89 6.89 6.89 6.88 6.88 6.87 6.79
102-12 6.575% 6.575% 6.575% 6.575% 6.574% 6.574% 6.569%
102-16 6.557% 6.557% 6.557% 6.557% 6.556% 6.556% 6.551%
102-20 6.540% 6.540% 6.540% 6.539% 6.539% 6.539% 6.533%
102-24 6.522% 6.522% 6.522% 6.522% 6.521% 6.521% 6.515%
102-28 6.505% 6.505% 6.505% 6.504% 6.504% 6.503% 6.497%
Mod Dur 6.90 6.90 6.90 6.89 6.89 6.89 6.80
WA Life (Yrs) 9.66 9.66 9.66 9.66 9.64 9.64 9.47
First Prin Date 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 7/20/08 5/20/08
Final Prin Date 8/20/08 8/20/08 8/20/08 8/20/08 8/20/08 7/20/08 5/20/08
% of Prin Returned 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
<CAPTION>
---------------------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ---------------------------------------
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF
- ----------------------------------------------------------------------
NOVEMBER 1, 1998 1/4 3.970%
- ----------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT
PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL
TO THE PV YIELD LOSS AMOUNT FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 30
PRICE / YIELD TABLE - CLASS D
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 83,269,584.00
Interest Accrued From 11/1/98 Initial Coupon 7.1050%
Next Pmt Date 12/20/98 Accrued Int 476,591.15
</TABLE>
<TABLE>
<CAPTION>
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
------------------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0% 50.0% 75.0% 100.0%
----- ---- ---- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
96-18 7.633% 7.633% 7.633% 7.633% 7.632% 7.632% 7.636%
96-22 7.614% 7.614% 7.614% 7.614% 7.613% 7.613% 7.616%
96-26 7.595% 7.595% 7.595% 7.595% 7.594% 7.594% 7.597%
96-30 7.576% 7.576% 7.576% 7.576% 7.575% 7.575% 7.578%
97-02 7.557% 7.557% 7.557% 7.557% 7.556% 7.556% 7.559%
Mod Dur 6.75 6.75 6.75 6.75 6.75 6.74 6.67
97-06 7.538% 7.538% 7.538% 7.538% 7.537% 7.537% 7.540%
97-10 7.519% 7.519% 7.519% 7.519% 7.518% 7.518% 7.520%
97-14 7.500% 7.500% 7.500% 7.500% 7.499% 7.499% 7.501%
97-18 7.482% 7.481% 7.481% 7.481% 7.480% 7.480% 7.482%
97-22 7.463% 7.463% 7.462% 7.462% 7.461% 7.461% 7.463%
Mod Dur 6.76 6.76 6.76 6.76 6.76 6.75 6.68
97-26 7.444% 7.444% 7.444% 7.443% 7.442% 7.442% 7.444%
97-30 7.425% 7.425% 7.425% 7.424% 7.424% 7.423% 7.425%
98-02 7.406% 7.406% 7.406% 7.406% 7.405% 7.405% 7.406%
98-06 7.388% 7.388% 7.387% 7.387% 7.386% 7.386% 7.387%
98-10 7.370% 7.370% 7.370% 7.369% 7.369% 7.368% 7.369%
Mod Dur 6.77 6.77 6.77 6.77 6.77 6.77 6.69
98-14 7.350% 7.350% 7.350% 7.350% 7.349% 7.349% 7.349%
98-18 7.332% 7.332% 7.332% 7.331% 7.330% 7.330% 7.331%
98-22 7.313% 7.313% 7.313% 7.313% 7.312% 7.311% 7.312%
98-26 7.295% 7.294% 7.294% 7.294% 7.293% 7.293% 7.293%
98-30 7.276% 7.276% 7.276% 7.275% 7.275% 7.274% 7.274%
Mod Dur 6.79 6.79 6.79 6.79 6.79 6.78 6.70
99-02 7.258% 7.257% 7.257% 7.257% 7.256% 7.256% 7.256%
99-06 7.239% 7.239% 7.239% 7.238% 7.238% 7.237% 7.237%
99-10 7.221% 7.221% 7.220% 7.220% 7.219% 7.219% 7.218%
99-14 7.202% 7.202% 7.202% 7.202% 7.201% 7.200% 7.200%
99-18 7.184% 7.184% 7.184% 7.183% 7.182% 7.182% 7.181%
Mod Dur 6.80 6.80 6.80 6.80 6.80 6.79 6.72
99-22 7.166% 7.165% 7.165% 7.165% 7.164% 7.164% 7.162%
99-26 7.147% 7.147% 7.147% 7.147% 7.146% 7.145% 7.144%
99-30 7.129% 7.129% 7.129% 7.128% 7.128% 7.127% 7.125%
100-02 7.111% 7.111% 7.110% 7.110% 7.109% 7.109% 7.107%
100-06 7.092% 7.092% 7.092% 7.092% 7.091% 7.090% 7.088%
Mod Dur 6.81 6.81 6.81 6.81 6.81 6.80 6.73
WA Life (Yrs) 9.72 9.72 9.72 9.72 9.72 9.71 9.55
First Prin Date 8/20/08 8/20/08 8/20/08 8/20/08 8/20/08 7/20/08 5/20/08
Final Prin Date 8/20/08 8/20/08 8/20/08 8/20/08 8/20/08 8/20/08 6/20/08
% of Prin Returned 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
</TABLE>
<TABLE>
<CAPTION>
----------------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- -----------------------------------------------------------------------------------------------------------------------------------
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ----------------------------------
<S> <C> <C>
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF NOVEMBER 1,1998 1/4 3.970%
- --------------------------------------------------------------------------------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL TO THE
PV YIELD LOSS AMOUNT FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 31
PRICE / YIELD TABLE - CLASS E
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Prin. Bal 35,686,964.00
Interest Accrued From 11/1/98 Initial Coupon 7.1050%
Next Pmt Date 12/20/98 Accrued Int 204,253.35
</TABLE>
<TABLE>
<CAPTION>
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
--------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0%
----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
93-30 8.040% 8.040% 8.040% 8.039%
94-02 8.020% 8.020% 8.020% 8.020%
94-06 8.000% 8.000% 8.000% 8.000%
94-10 7.981% 7.981% 7.981% 7.980%
94-14 7.961% 7.961% 7.961% 7.961%
Mod Dur 6.71 6.71 6.71 6.70
94-18 7.942% 7.941% 7.941% 7.941%
94-22 7.922% 7.922% 7.922% 7.922%
94-26 7.902% 7.902% 7.902% 7.902%
94-30 7.883% 7.883% 7.883% 7.882%
95-02 7.863% 7.863% 7.863% 7.863%
Mod Dur 6.72 6.72 6.72 6.72
95-06 7.844% 7.844% 7.844% 7.844%
95-10 7.825% 7.825% 7.824% 7.824%
95-14 7.805% 7.805% 7.805% 7.805%
95-18 7.786% 7.786% 7.786% 7.785%
95-21+ 7.770% 7.770% 7.770% 7.770%
Mod Dur 6.73 6.73 6.73 6.73
95-26 7.747% 7.747% 7.747% 7.747%
95-30 7.728% 7.728% 7.728% 7.728%
96-02 7.709% 7.709% 7.709% 7.708%
96-06 7.690% 7.690% 7.690% 7.689%
96-10 7.671% 7.671% 7.670% 7.670%
Mod Dur 6.75 6.75 6.75 6.74
96-14 7.652% 7.651% 7.651% 7.651%
96-18 7.632% 7.632% 7.632% 7.632%
96-22 7.613% 7.613% 7.613% 7.613%
96-26 7.594% 7.594% 7.594% 7.594%
96-30 7.575% 7.575% 7.575% 7.575%
Mod Dur 6.76 6.76 6.76 6.76
97-02 7.556% 7.556% 7.556% 7.556%
97-06 7.538% 7.537% 7.537% 7.537%
97-10 7.519% 7.519% 7.518% 7.518%
97-14 7.500% 7.500% 7.500% 7.499%
97-18 7.481% 7.481% 7.481% 7.480%
Mod Dur 6.77 6.77 6.77 6.77
WA Life (Yrs) 9.75 9.75 9.75 9.75
First Prin Date 8/20/08 8/20/08 8/20/08 8/20/08
Final Prin Date 11/20/08 11/20/08 11/20/08 11/20/08
% of Prin Returned 100.00% 100.00% 100.00% 100.00%
</TABLE>
<TABLE>
<CAPTION>
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
---------------------------------------------------------------------
Price 50.0% 75.0% 100.0%
----- ----- ----- ------
<S> <C> <C> <C> <C>
93-30 8.039% 8.039% 8.044%
94-02 8.019% 8.019% 8.024%
94-06 7.999% 7.999% 8.004%
94-10 7.980% 7.979% 7.984%
94-14 7.960% 7.960% 7.965%
Mod Dur 6.70 6.70 6.65
94-18 7.941% 7.940% 7.945%
94-22 7.921% 7.921% 7.925%
94-26 7.901% 7.901% 7.905%
94-30 7.882% 7.882% 7.886%
95-02 7.862% 7.862% 7.866%
Mod Dur 6.72 6.71 6.67
95-06 7.843% 7.843% 7.847%
95-10 7.824% 7.823% 7.827%
95-14 7.804% 7.804% 7.807%
95-18 7.785% 7.784% 7.788%
95-21+ 7.769% 7.769% 7.772%
Mod Dur 6.73 6.73 6.68
95-26 7.746% 7.746% 7.749%
95-30 7.727% 7.727% 7.730%
96-02 7.708% 7.707% 7.710%
96-06 7.689% 7.688% 7.691%
96-10 7.669% 7.669% 7.672%
Mod Dur 6.74 6.74 6.69
96-14 7.650% 7.650% 7.652%
96-18 7.631% 7.631% 7.633%
96-22 7.612% 7.612% 7.614%
96-26 7.593% 7.593% 7.595%
96-30 7.574% 7.574% 7.576%
Mod Dur 6.76 6.75 6.71
97-02 7.555% 7.555% 7.557%
97-06 7.536% 7.536% 7.538%
97-10 7.517% 7.517% 7.519%
97-14 7.499% 7.498% 7.500%
97-18 7.480% 7.479% 7.481%
Mod Dur 6.77 6.77 6.72
WA Life (Yrs) 9.74 9.74 9.64
First Prin Date 8/20/08 8/20/08 6/20/08
Final Prin Date 11/20/08 11/20/08 10/20/08
% of Prin Returned 100.00% 100.00% 100.00%
</TABLE>
<TABLE>
<CAPTION>
---------------------------
ASSUMPTIONS TSY CURVE AS OF 10/21/98
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1% CLEANUP CALL IS NOT EXERCISED TERM (YRS) YIELD (BEY)
- -------------------------------- ---------------------------
INITIAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF NOVEMBER 1, 1998 1/4 3.970%
- ---------------------------------------------------------------------------------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL TO THE PV YIELD LOSS AMOUNT
FOR EACH CLASS 2 4.050%
NO EXTENSIONS ON ANY MORTGAGE LOAN 5 4.170%
NO DEFAULTS ON ANY MORTGAGE LOAN 10 4.570%
30 5.060%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
<PAGE> 32
PRICE / YIELD TABLE - CLASS X
(ALL YIELDS EXPRESSED ON A BOND EQUIVALENT BASIS)
<TABLE>
<S> <C> <C> <C>
Security ID NATIONSLINK 1998-2
Settlement Date 11/30/98 Initial Ntl. Bal 1,581,964,667.89
Interest Accrued From 11/1/98 Initial Coupon 0.7625%
Next Pmt Date 12/20/98 Accrued Int 971,715.37
</TABLE>
<TABLE>
<CAPTION>
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
----------------------------------------------------------------------------------------------------
Price 0.0% 5.0% 10.0% 25.0%
----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
4-22 10.624% 10.602% 10.581% 10.521%
4-22+ 10.538% 10.516% 10.496% 10.435%
4-23 10.452% 10.431% 10.410% 10.350%
4-23+ 10.367% 10.346% 10.325% 10.265%
4-24 10.283% 10.262% 10.241% 10.180%
Mod Dur 3.86 3.85 3.85 3.85
4-24+ 10.199% 10.177% 10.157% 10.096%
4-25 10.115% 10.094% 10.073% 10.012%
4-25+ 10.032% 10.011% 9.990% 9.929%
4-26 9.950% 9.928% 9.907% 9.846%
4-26+ 9.867% 9.846% 9.825% 9.764%
Mod Dur 3.90 3.90 3.90 3.89
4-27 9.786% 9.764% 9.743% 9.682%
4-27+ 9.704% 9.683% 9.662% 9.601%
4-28 9.623% 9.602% 9.581% 9.520%
4-28+ 9.543% 9.521% 9.500% 9.439%
4-29 9.479% 9.458% 9.436% 9.375%
Mod Dur 3.94 3.94 3.94 3.93
4-29+ 9.383% 9.362% 9.340% 9.279%
4-30 9.304% 9.282% 9.261% 9.200%
4-30+ 9.225% 9.204% 9.182% 9.121%
4-31 9.147% 9.125% 9.104% 9.043%
4-31+ 9.069% 9.047% 9.026% 8.965%
Mod Dur 3.98 3.98 3.98 3.98
5-00 8.992% 8.970% 8.948% 8.887%
5-00+ 8.914% 8.893% 8.871% 8.810%
5-01 8.838% 8.816% 8.794% 8.733%
5-01+ 8.761% 8.739% 8.718% 8.656%
5-02 8.685% 8.663% 8.642% 8.580%
Mod Dur 4.02 4.02 4.02 4.02
5-02+ 8.610% 8.588% 8.566% 8.504%
5-03 8.534% 8.513% 8.491% 8.429%
5-03+ 8.460% 8.438% 8.416% 8.354%
5-04 8.385% 8.363% 8.342% 8.280%
5-04+ 8.311% 8.289% 8.268% 8.205%
Mod Dur 4.06 4.06 4.06 4.06
WA Life (Yrs) 8.86 8.86 8.85 8.83
First Int Pay Date 12/20/98 12/20/98 12/20/98 12/20/98
Final Int Pay Date 8/20/13 8/20/13 8/20/13 8/20/13
% of Prin Returned #N/A #N/A #N/A #N/A
</TABLE>
<TABLE>
<CAPTION>
(Column Heading)=Prepayment Rate in CPR (Table)=Nominal Yield
---------------------------------------------------------------
Price 50.0% 75.0% 100.0%
----- ----- ----- ------
<S> <C> <C> <C> <C>
4-22 10.425% 10.320% 9.917%
4-22+ 10.339% 10.234% 9.830%
4-23 10.253% 10.148% 9.744%
4-23+ 10.168% 10.063% 9.657%
4-24 10.083% 9.978% 9.572%
Mod Dur 3.84 3.84 3.80
4-24+ 9.999% 9.893% 9.487%
4-25 9.915% 9.809% 9.402%
4-25+ 9.832% 9.726% 9.318%
4-26 9.749% 9.643% 9.234%
4-26+ 9.666% 9.560% 9.151%
Mod Dur 3.89 3.88 3.85
4-27 9.584% 9.478% 9.068%
4-27+ 9.503% 9.396% 8.986%
4-28 9.422% 9.315% 8.904%
4-28+ 9.341% 9.234% 8.822%
4-29 9.277% 9.170% 8.757%
Mod Dur 3.93 3.92 3.89
4-29+ 9.181% 9.074% 8.660%
4-30 9.101% 8.994% 8.580%
4-30+ 9.022% 8.915% 8.500%
4-31 8.944% 8.836% 8.421%
4-31+ 8.866% 8.758% 8.342%
Mod Dur 3.97 3.96 3.93
5-00 8.788% 8.680% 8.263%
5-00+ 8.710% 8.603% 8.185%
5-01 8.634% 8.525% 8.107%
5-01+ 8.557% 8.449% 8.030%
5-02 8.481% 8.372% 7.953%
Mod Dur 4.01 4.00 3.97
5-02+ 8.405% 8.296% 7.876%
5-03 8.329% 8.221% 7.800%
5-03+ 8.254% 8.146% 7.724%
5-04 8.180% 8.071% 7.649%
5-04+ 8.105% 7.996% 7.574%
Mod Dur 4.05 4.05 4.01
WA Life (Yrs) 8.80 8.76 8.56
First Int Pay Date 12/20/98 12/20/98 12/20/98
Final Int Pay Date 8/20/13 8/20/13 4/20/13
% of Prin Returned #N/A #N/A #N/A
</TABLE>
<TABLE>
<CAPTION>
--------------------------
ASSUMPTIONS Tsy Curve As of 10/21/98
- -----------------------------------------------------------------------------------------------------------------------------------
1% CLEANUP CALL IS EXERCISED Term (Yrs) Yield (BEY)
- ---------------------------- --------------------------
<S> <C> <C>
INITIAL NOTIONAL BALANCE IS CALCULATED USING THE UNPAID PRINCIPAL BALANCE AS OF NOVEMBER 1, 1998 1/4 3.970%
- ------------------------------------------------------------------------------------------------
PREPAY RATES ARE A CONSTANT % OF CPR AFTER EXPIRATION OF LOCKOUT AND YLD MAINT PERIODS (IF ANY) 1/2 4.100%
100% OF ALL PREPAYMENT PREMIUMS ARE ASSUMED TO BE COLLECTED 1 4.010%
PREPAYMENT PREMIUMS ARE ALLOCATED TO CLASSES A THROUGH E UP TO AN AMOUNT EQUAL TO THE PV YIELD LOSS AMOUNT 2 4.050%
FOR EACH CLASS 5 4.170%
NO EXTENSIONS ON ANY MORTGAGE LOAN 10 4.570%
NO DEFAULTS ON ANY MORTGAGE LOAN 30 5.060%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCIES DO NOT ADDRESS THE LIKELIHOOD OF RECEIPT OF PREPAYMENT PENALTIES
This material is for your private information and NationsBanc Montgomery
Securities LLC (the "Underwriter") is 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 the
Underwriter considers reliable, but the Underwriter does 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
pertain to securities that ultimately are not sold. The information contained in
this material may be based on assumptions regarding market conditions and other
matters as reflected herein. The Underwriter makes no representation 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. The Underwriter and its
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 all 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. Any information in the material,
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
solely by the Underwriter and not by the issuer of the securities. The issuer of
the securities has not prepared, reviewed or participated in the preparation of
this material, is not responsible for the accuracy of this material and has not
authorized the dissemination of this material. The Underwriter is acting as
underwriter and not acting as agent for the issuer in connection with the
proposed transaction.
