<PAGE>
SUPPLEMENT TO PROSPECTUS
OF
SOVEREIGN CREDIT FINANCE I, INC.
Sovereign Credit Finance I, Inc., a Texas corporation (the "Company"),
is hereby supplementing its Prospectus dated January 31, 1997 which offers
the Company's 11% notes due February 15, 2001 (the "Notes"). The information
contained herein is intended to supplement that which is included in the
Prospectus at pages 36 and 37 under the heading "INFORMATION REGARDING THE
SECURITIZATION SUBSIDIARIES". Terms used and not defined herein have the
same meanings as in the Prospectus.
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The date of this Supplement is April 29, 1997.
____________________________________
INFORMATION REGARDING THE SECURITIZATION SUBSIDIARIES
Since October 1993, Sovereign has sponsored a number of entities (the
"Securitization Subsidiaries") which have issued notes to investors and used
the net proceeds thereof to purchase consumer contracts and notes created by
the retail sale and financing of used automobiles and light trucks. As used
herein, the term "Securitization Subsidiaries" does not include the Company.
The following table sets forth certain information regarding the
Securitization Subsidiaries sponsored by Sovereign from June 1, 1993 (the
date SAI began servicing motor vehicle retail installment sales contracts)
through January 31, 1997. There can be no assurance that the future
performance of the Contracts purchased by the Company will be similar to that
set forth in the following table.
<TABLE>
<CAPTION>
Maturity Payoff
Principal Cash Value Balance of Total
Due Collected of Active Active Assets
Name of Investors as Due From 1/1/97 Contracts as Contracts as as of
Program(1) of 1/31/97 Date(2)(3) to 1/31/97 of 1/31/97(4) of 1/31/97(5) 1/31/97(6)
- ---------- ---------- ---------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
SAM 94-1 $ 548,275 07/15/97 $11,225 $ 324,748 $ 267,537 $ 295,088
SAM 94-3 $ 783,142 03/31/98 $20,122 $ 574,050 $ 461,994 $ 490,695
SAM 95-1 $ 657,436 10/15/98 $20,796 $ 488,794 $ 394,912 $ 440,024
SAM 95-2 $ 889,958 03/15/99 $68,171 $1,286,318 $1,035,109 $1,075,784
SA I $ 410,000 05/15/97 $10,996 $ 237,775 $ 187,464 $ 209,064
SA II $ 602,000 07/15/97 $12,180 $ 248,054 $ 205,087 $ 199,754
SA III $ 598,517 08/15/97 $23,154 $ 383,685 $ 323,045 $ 349,937
SA IV $ 685,320 09/15/97 $14,152 $ 403,479 $ 335,530 $ 359,190
SA V $ 614,537 09/30/97 $16,564 $ 437,257 $ 364,828 $ 390,097
SA VI $ 587,000 10/15/97 $19,227 $ 372,429 $ 308,184 $ 332,141
SA VII $ 610,500 11/15/97 $34,754 $ 478,663 $ 392,153 $ 414,790
SA VIII $ 694,100 12/31/97 $13,629 $ 449,633 $ 366,348 $ 388,530
SA IX $ 567,140 01/31/98 $19,792 $ 456,744 $ 378,171 $ 392,617
SA X $ 662,000 01/31/98 $20,177 $ 525,850 $ 427,476 $ 446,890
SA XI $ 579,000 02/28/98 $34,725 $ 402,081 $ 335,272 $ 364,252
SA XII $ 575,000 02/28/98 $26,424 $ 534,556 $ 429,116 $ 406,319
SA XIII $ 650,000 03/31/98 $28,952 $ 542,207 $ 445,650 $ 441,041
SA XIV $ 576,000 03/31/98 $11,488 $ 374,000 $ 310,215 $ 315,586
SA XV $ 612,000 04/30/98 $21,275 $ 424,175 $ 342,355 $ 368,456
SA XVI $ 563,000 04/30/98 $11,945 $ 256,212 $ 215,576 $ 237,437
SA XVII $ 746,000 05/31/98 $33,600 $ 492,881 $ 400,935 $ 448,564
SA XVIII $ 733,053 05/31/98 $37,110 $ 568,014 $ 459,832 $ 480,711
SA XIX $ 523,000 06/30/98 $19,690 $ 272,746 $ 223,309 $ 224,875
SA XX $ 640,250 06/30/98 $22,578 $ 477,395 $ 393,862 $ 421,635
SA XXI $ 606,000 09/15/98 $ 9,736 $ 383,135 $ 308,382 $ 306,750
SA XXII $ 465,000 09/15/98 $10,637 $ 230,555 $ 187,591 $ 191,997
SA XXIII $ 509,000 10/15/98 $19,445 $ 386,952 $ 314,062 $ 328,604
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Maturity Payoff
Principal Cash Value Balance of Total
Due Collected of Active Active Assets
Name of Investors as Due From 1/1/97 Contracts as Contracts as as of
Program(1) of 1/31/97 Date(2)(3) to 1/31/97 of 1/31/97(4) of 1/31/97(5) 1/31/97(6)
- ---------- ---------- ---------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
SA XXIV $ 615,000 10/15/98 $31,423 $ 548,398 $ 437,642 $ 456,219
SA XXV $ 531,000 11/15/98 $ 9,688 $ 453,046 $ 359,841 $ 380,991
SC I $ 992,000 12/15/98 $24,123 $ 749,985 $ 604,887 $ 651,019
SC II $ 767,350 03/15/99 $32,794 $ 963,610 $ 770,846 $ 608,000
SC III $ 933,121 03/15/99 $37,794 $ 836,827 $ 698,802 $ 926,076
SC IV $ 79,000 04/15/99 $ 5,689 $ 85,501 $ 64,765 $ 69,579
SC V $ 851,051 05/15/99 $71,851 $1,948,318 $1,580,259 $1,740,625
SC VI $1,023,047 06/15/99 $88,199 $1,382,412 $1,093,568 $1,088,359
SC VII $1,148,430 06/15/99 $91,925 $1,683,685 $1,350,143 $1,325,288
SC VIII $ 961,875 07/15/99 $45,005 $1,153,665 $ 966,457 $ 987,179
SC IX $ 632,500 11/15/99 $40,027 $1,021,502 $ 809,087 $ 840,703
SC X $ 766,888 12/31/99 $35,735 $1,084,355 $ 856,964 $ 872,631
SC XI $ 751,400 12/31/99 $67,909 $1,235,449 $ 997,173 $ 908,881
SC XII $ 751,000 03/31/00 $63,451 $1,028,569 $ 834,800 $ 868,349
SC XIV $1,041,311 03/31/00 $73,263 $1,473,234 $1,183,275 $1,132,311
SC XV $ 634,448 04/30/00 $36,154 $1,306,491 $1,009,042 $ 805,263
SC XVI $1,348,889 04/30/00 $67,134 $1,893,515 $1,515,022 $1,526,988
SC XVII $ 340,000 05/31/00 $ 8,419 $ 566,387 $ 432,291 $ 612,853
SC XVIII $ 876,894 06/30/00 $79,357 $1,324,546 $1,033,463 $ 835,353
SC XIX $1,023,381 06/30/00 $ 9,919 $ 590,447 $ 457,065 $ 881,846
SCA I $ 833,000 01/15/99 $29,061 $ 949,230 $ 781,168 $ 794,038
SCA II $ 550,000 03/15/99 $40,081 $ 724,788 $ 603,369 $ 648,211
SCA III $ 481,000 05/15/99 $23,555 $ 589,629 $ 485,760 $ 524,537
</TABLE>
(1) Each program is a limited liability company with the exception of Sovereign
Acceptance I, which is a limited partnership.
(2) Principal on the notes issued by each program is required to be repaid in
six equal monthly installments ending on the due date.
(3) Noteholders in certain of the Securitization Subsidiaries have been or will
be asked to reduce interest rates on such notes from 15% to 12% per
annum, and to extend the due dates of their notes for three years in
order to provide the particular Securitization Subsidiary which issued
their note more time to repay principal. In order to induce such
noteholders to agree to such modifications, Sovereign has agreed to
place its profits interest, after all debt repayment, in other
Securitization Subsidiaries into an asset pool to serve as a possible
source of repayment for any Securitization Subsidiary which cannot
repay its notes on the extended terms. The proceeds of the asset pool
will be distributed on a pro rata basis. In the event noteholders in
certain of these Securitization Subsidiaries do not elect to modify
their notes as asked, such Securitization Subsidiaries may of
necessity go into default as to those notes.
(4) Maturity Value of Active Contracts represents the sum of all future
installments of principal and interest, less amounts owed to dealers at
maturity of the contracts.
(5) Payoff Balance of Active Contracts represents the payoff balance of the
contracts as of the date shown.
(6) Total Assets represents the sum of cash on hand, plus Payoff Balance of
Active Contracts, plus repossessed vehicles in inventory awaiting resale,
valued at dealers' wholesale.
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