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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR L5(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
Commission file numbers 333-18877 AND 333-47757
-----------------------
THE MONEY STORE INC.AND CLASSNOTES INC. (AS REPRESENTATIVE UNDER A SECOND
SUPPLEMENTAL SALE AND SERVICING AGREEMENT, DATED AS OF MARCH 17, 1998 PROVIDING
FOR THE ISSUANCE OF CLASSNOTES TRUST 1997-I, SERIES 1998-1).
CLASSNOTES, INC.
----------------
(Exact name of registrant as specified in its charter)
DELAWARE 22-3400682
- ------------------------------------ -------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
707 THIRD STREET, WEST SACRAMENTO, CALIFORNIA 95605
- --------------------------------------------- ---------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (916) 617-1000
--------------
Securities registered pursuant to section 12(b) of the Act:
<PAGE>
TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED
- ------------------- -----------------------------------------
None None
Securities registered pursuant to section 12(g) of the Act:
NONE
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
|X| Yes |_| No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss. 229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.
Not Applicable.
State the aggregate market value of the voting stock held by non-affiliates of
the registrant.
Not Applicable
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of December 31, 1999.
Not Applicable
This annual report on Form 10K is filed pursuant to a request for no-action
letter forwarded to the Office of Chief Counsel, Division of Corporation
Financing, dated February 12, 1996.
PART I
ITEM 1. BUSINESS
Omitted pursuant to the "Request for no-action letter forwarded to the
Office of Chief Counsel Division of Corporation Finance" dated February 12,
1996.
ITEM 2. PROPERTIES
Reference is made to the Annual Compliance Certificate attached hereto as
Exhibit 20.
Reference is made to the Annual Statement attached hereto as Exhibit 13.
ITEM 3. LEGAL PROCEEDINGS
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
None.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
---------------------------------------------------------------------
There is no established trading market for Registrant's securities subject to
this filing.
Number of holders of the NOTES as of March 15, 2000: 20
--
ITEM 6. SELECTED FINANCIAL DATA
Omitted pursuant to the "Request for no-action letter forwarded to the
Office of Chief Counsel Division of Corporation Finance" dated February 12,
1996.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
------------------------------------------------------------------------
Omitted pursuant to the "Request for no-action letter forwarded to the
Office of Chief Counsel Division of Corporation Finance" dated February 12,
1996.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Reference is made to the Annual Compliance certificate attached as Exhibit
20.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
------------------------------------------------------------------------
Omitted pursuant to the "Request for no-action letter forwarded to the
Office of Chief Counsel Division of Corporation Finance" dated February 12,
1996.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
None.
ITEM 11. EXECUTIVE COMPENSATION
Omitted pursuant to the "Request for no-action letter forwarded to the
Office of Chief Counsel Division of Corporation Finance" dated February 12,
1996.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
--------------------------------------------------------------
The following information is furnished as of March 15, 2000 as to each
holder of record of more than 5% of a class of the Trust's securities:
<TABLE>
<CAPTION>
Amount of
Name and Address of Security of
Title of Class Beneficial Owner Beneficial Owner % of Class
<S> <C> <C> <C>
Class Notes Trust 1997-I Boston Safe Deposit and $5,000,000 5.0
Auction Rate, Trust Company
Asset Backed Notes, c/o Mellon Bank N.A.
Series 1998-I, Three Mellon Bank Center,
Class A-7 Room 153-3015
Pittsburgh, PA 15259
Citibank, N.A. $8,000,000 8.0
P.O. Box 30576
Tampa, Fl 33630-3576
Salomon Smith Barney Inc. $69,000,000 69.0
333 W. 34th Street
New York, NY 10001
Suntrust Bank, Atlanta $15,000,000 15.0
303 Peachtree St., 14th Floor MC#3141
Atlanta, GA 30308
Amount of
Name and Address of Security of
Title of Class Beneficial Owner Beneficial Owner % of Class
Class Notes Trust 1997-I The Bank of New York $6,500,000 6.5
Auction Rate, 925 Patterson Plank Rd.
Asset Backed Notes, Secaucus, NJ 07094
Series 1998-I,
Class A-8
Salomon Smith Barney Inc. $85,400,000 85.4
333 W. 34th Street
New York, NY 10001
Amount of Security of
Name and Address of Beneficial Owner
Title of Class Beneficial Owner % of Class
Class Notes Trust 1997-I The Bank of New York $14,650,000 14.7
Auction Rate, 925 Patterson Plank Rd.
Asset Backed Notes, Secaucus, NJ 07094
Series 1998-I,
Class A-9
Bankers Trust Company $10,000,000 10.0
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211
Amount of
Name and Address of Security of
Title of Class Beneficial Owner Beneficial Owner % of Class
Class Notes Trust 1997-I Salomon Smith Barney Inc. $80,400,000 73.1
Auction Rate, 333 W. 34th Street
Asset Backed Notes, New York, NY 10001
Series 1998-I,
Class A-10
The Bank of New York $28,900,000 28.9
925 Patterson Plank Rd.
Secaucus, NJ 07094
State Street Bank and $10,000,000 9.1
Trust Company
Global Corp. Action Dept. JAB5W
P.O. Box 1631
Boston, MA 02105-1631
Suntrust Bank, Atlanta $8,500,000 7.7
303 Peachtree St., 14th Floor MC#3141
Atlanta, GA 30308
Wachovia Bank, N.A. $11,100,000 10.1
100 N. Main Street, NC 37121
Winston-Salem, NC 27150
</TABLE>
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(A) None
(B)-(D) Omitted pursuant to the "Request for no-action letter forwarded to
the Office of Chief Counsel Division of Corporation Finance" dated February
12, 1996.
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
----------------------------------------------------------------
(a)
1. Ambac Assurance Corporation and subsidiaries audited consolidated
financial statements as of December 31, 1999 and 1998 and for each of
the years in the three year period ended December 31, 1999 included in
the Annual Report on Form 10-K of Ambac Financial Group, Inc., which
was filed with the Securities and Exchange Commission on March 30,
2000, are hereby incorporated by reference.
2. Not applicable
3. Exhibits
13. Annual Statement
20. Annual Compliance Certificate
23. Independent Auditors' Consent
(B)-(D) Omitted pursuant to the "Request for no-action letter forwarded to
the Office of Chief Counsel Division of Corporation Finance" dated
February 12, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized as Representative on behalf
of the trust on the 7th day of April, 2000.
CLASSNOTES, INC.
By: /s/ Arthur Q. Lyon
---------------------
Name: Arthur Q. Lyon
Title: Chief Financial Officer
<PAGE>
EXHIBIT INDEX
DESCRIPTION PAGE NUMBER
ANNUAL STATEMENT 7
ANNUAL COMPLIANCE CERTIFICATE 18
INDEPENDENT AUDITORS' CONSENT 19
EXHIBIT 13
ANNUAL YEAR END STATEMENTS
TRANS-WORLD INSURANCE COMPANY
2840 MORRIS AVENUE
UNION, NJ 07083
CLASSNOTES TRUST 1997-I
Aggregate Year End Statement for Series 1998-I
As of December 31 1999
Class A-7
<TABLE>
<CAPTION>
As of Year End:
(i) Amount of Principal paid or distributed in
respect of the Notes
<S> <C>
CLASS A-7 Notes 0
Per $50,000 original principal amount of the Note 0
(ii) Amount of Interest paid or distributed in
respect of the Notes
CLASS A-7 Notes 5,313,500.01
Per $50,000 original principal amount of the Note 2,656.75
(iii) (A) Amount of Noteholders' Auction Rate
Interest Carryover paid or distributed
in respect of the Note
CLASS A-7 Notes 0
Per $50,000 original principal amount of the Note 0
(B) Remaining Amount of Noteholders' Auction Rate Interest
Carryover to be paid or distributed in respect of the Note
CLASS A-7 Notes 0
Per $50,000 original principal amount of the Notes 0
(iv) Outstanding Principal Balance of the Note at Year End 100,000,000.00
(v) Pool Balance at Year End 759,959,481.90
(vi) Outstanding Principal amount of Notes at Year End
CLASSNOTES TRUST 1998-I 410,000,000.00
(vii) Applicable Interest Rate:
(a) In general:
1. Auction Rate for the prior Interest Period:
CLASS A-7 NOTES
PERIOD 1 5.39%
PERIOD 2 5.50%
PERIOD 3 5.53%
CURRENT RATE (Based on Auction) 6.05%
2. NET LOAN RATE
PERIOD 1 5.81%
PERIOD 2 7.00%
PERIOD 3 7.50%
(viii) (a) Service Fee for related Collection Period (Pro Rata) 56,001.43
Per $50,000 original principal amount of the Notes 26.28316
(b) Service Fee Carryover for related Collection Period
1. Distributed 0
Per $50,000 original principal amount of the Notes 0
2. Remaining Balance 0
Per $50,000 original principal amount of the Notes 0
(ix) Amount of Fees paid for the year
1. Service Fee (Pro Rata) 580,468.29
Per $50,000 original principal amount of the Note 290.234145
2. Administration Fee (Pro Rata) 15,000.00
Per $50,000 original principal amount of the Note 7.5
3. Auction Agent Fee (Pro Rata) 249,666.72
Per $50,000 original principal amount of the Note 124.83336
4. Indenture Trustee Fee (Pro Rata) 2,500.00
Per $50,000 original principal amount of the Note 1.25
5. Eligible Lender Trustee Fee (Pro Rata) 2,877.55
Per $50,000 original principal amount of the Note 1.438775
6. Surety Provider Fee (Pro Rata) 81,111.13
Per $50,000 original principal amount of the Note 40.555565
(x) Amount of payments to the Surety Provider in
reimbursement of prior draws under any Note
Surety Bond or the Certificate Surety Bond 0
(xi) Aggregate amount of Realized losses for the
related Collection period 0
(xii) Aggregate amount received with respect to Financed
Student Loans for which Realized Losses were
allocated previously 0
(xiii)(a) Amount of the distribution attributable to amounts
in the Reserve Account 0
(b) Amount of any other withdrawals from the Reserve
Account for such Distribution Date 0
(c) Amount in the Reserve Account 3,451.09
(xiv) Amount of any draw required to be made under a Note Surety bond
(together with any other information required to make
such draw) 0
(xv) (a) Portion (if any) of the distribution attributable to amounts on
deposit in the Pre-Funding Account 0
(b) Amount in the Pre-Funding Account 256.35
(xvi) Aggregate amount if any paid by the Eligible Lender Trustee for
Additional Financed Student Loans during the preceding collection
period 0
(xvii) Amount in the Pre-Funding Account at the end of the Funding Period to
be distributed as a payment of principal in respect of:
(a) CLASS A-1 NOTES 0
(b) CLASS A-1 NOTES (Only if Class___ Notes
have been paid in full) 0
(xviii) Aggregate amount (if any) paid for Financed Student Loans during
the preceding collection period. 0
(xix) As of the end of 12/31/1999 Collection Period:
(a) Number of Financed Student Loans that are 30 to 60 days
Delinquent 22,005,850.59
(b) Number of Financed Student Loans that are 61 to 90 days
Delinquent 7,507,195.96
(c) Number of Financed Student Loans that are 91 to 180 days
Delinquent 13,135,215.51
(d) Number of Financed Student Loans that are more than 181
days Delinquent 8,689,158.14
(e) Number of Financed Student Loans for which claims have
been filed with the appropriate Guarantor and which are
awaiting payment 4,909,228.79
(xx) Parity Percentage as of 12/31/99 827,666,363.21
Numerator
Denominator 825,362,476.21 100.28%
(xxi) Excess of amounts deposited into the Collection Account with respect
to the sale by the Trust of Serial Loans over the aggregate Purchase
amount of such loans (such excess to be distributed to
Student Holdings) 0
(xxii) Amount of Additional Principal Payments, if any, made on
such Distribution Date 0
</TABLE>
First Union National Bank
By:/s/ Greg Baber
Greg Baber
Corporate Trust Officer
TRANS-WORLD INSURANCE COMPANY
2840 MORRIS AVENUE
UNION, NJ 07083
CLASSNOTES TRUST 1997 - I
Aggregate Year End Statement for Series 1998-I
As of December 31 1999
Class A-8
<TABLE>
<CAPTION>
As of Year End:
(i) Amount of Principal paid or distributed in
respect of the Note
<S> <C>
CLASS A-8 Notes 0
Per $50,000 original principal amount of the Note 0
(ii) Amount of Interest paid or distributed in
respect of the Note
CLASS A-8 Notes 5,309,111.12
Per $50,000 original principal amount of the Note 2,654.56
(iii) (A) Amount of Noteholders' Auction Rate
Interest Carryover paid or distributed
in respect of the Note
CLASS A-8 Notes 0
Per $50,000 original principal amount of the Note 0
(B) Remaining Amount of Noteholders' Auction Rate Interest
Carryover to be paid or distributed in respect of the Note
CLASS A-8 Notes 0
Per $50,000 original principal amount of the Notes 0
(iv) Outstanding Principal Balance of the Note at Year End 100,000,000.00
(v) Pool Balance at Year End 759,959,481.90
(vi) Outstanding Principal amount of Notes at Year End
CLASSNOTES TRUST 1998-I 410,000,000.00
(vii) Applicable Interest Rate:
(a) In general:
1. Auction Rate for the prior Interest Period:
CLASS A-8 NOTES
PERIOD 1 5.45%
PERIOD 2 5.50%
PERIOD 3 5.48%
CURRENT RATE (Based on Auction) 6.00%
2. NET LOAN RATE
PERIOD 1 5.81%
PERIOD 2 7.00%
PERIOD 3 7.50%
(viii) (a) Service Fee for related Collection Period (Pro Rata) 56,001.43
Per $50,000 original principal amount of the Notes 26.28316
(b) Service Fee Carryover for related Collection Period
1. Distributed 0
Per $50,000 original principal amount of the Notes 0
2. Remaining Balance 0
Per $50,000 original principal amount of the Notes 0
(ix) Amount of Fees paid for the year
1. Service Fee (Pro Rata) 580,468.29
Per $50,000 original principal amount of the Note 290.234145
2. Administration Fee (Pro Rata) 15,000.00
Per $50,000 original principal amount of the Note 7.5
3. Auction Agent Fee (Pro Rata) 249,666.72
Per $50,000 original principal amount of the Note 124.83336
4. Indenture Trustee Fee (Pro Rata) 2,500.00
Per $50,000 original principal amount of the Note 1.25
5. Eligible Lender Trustee Fee (Pro Rata) 2,877.55
Per $50,000 original principal amount of the Note 1.438775
6. Surety Provider Fee (Pro Rata) 81,111.13
Per $50,000 original principal amount of the Note 40.555565
(x) Amount of payments to the Surety Provider in
reimbursement of prior draws under any Note
Surety Bond or the Certificate Surety Bond 0
(xi) Aggregate amount of Realized losses for the
related Collection period 0
(xii) Aggregate amount received with respect to Financed
Student Loans for which Realized Losses were
allocated previously 0
(xiii) (a) Amount of the distribution attributable to amounts
in the Reserve Account 0
(b) Amount of any other withdrawals from the Reserve
Account for such Distribution Date 0
(c) Amount in the Reserve Account 3,451.09
(xiv) Amount of any draw required to be made under a Note Surety bond
(together with any other information required to make
such draw) 0
(xv)(a) Portion (if any) of the distribution attributable to amounts on
deposit in the Pre-Funding Account 0
(b) Amount in the Pre-Funding Account 256.35
(xvi) Aggregate amount if any paid by the Eligible Lender Trustee for
Additional Financed Student Loans during the preceding collection
period 0
(xvii) Amount in the Pre-Funding Account at the end of the Funding Period to
be distributed as a payment of principal in respect of:
(a) CLASS A-1 NOTES 0
(b) CLASS A-1 NOTES (Only if Class___ Notes
have been paid in full) 0
(xviii) Aggregate amount (if any) paid for Financed Student Loans during
the preceding collection period. 0
(xix) As of 12/31/1999 Collection Period:
(a) Number of Financed Student Loans that are 30 to 60 days 22,005,850.59
Delinquent
(b) Number of Financed Student Loans that are 61 to 90 days 7,507,195.96
Delinquent
(c) Number of Financed Student Loans that are 91 to 180 days 13,135,215.51
Delinquent
(d) Number of Financed Student Loans that are more than 181 8,689,158.14
days Delinquent
(e) Number of Financed Student Loans for which claims have
been filed with the appropriate Guarantor and which are
awaiting payment 4,909,228.79
(xx) Parity Percentage as of 12/31/99 827,666,363.21
Numerator
Denominator 825,362,476.21 100.28%
(xxi) Excess of amounts deposited into the Collection Account with respect
to the sale by the Trust of Serial Loans over the aggregate Purchase
amount of such loans (such excess to be distributed to
Student Holdings) 0
(xxii) Amount of Additional Principal Payments, if any, made on
such Distribution Date 0
</TABLE>
First Union National Bank
By:/s/ Greg Baber
Greg Baber
Corporate Trust Officer
TRANS-WORLD INSURANCE COMPANY
2840 MORRIS AVENUE
UNION, NJ 07083
CLASSNOTES TRUST 1997- I
Aggregate Year End Statement for Series 1998-I
As of December 31 1999
Class A-9
<TABLE>
<CAPTION>
As of Year End:
(i) Amount of Principal paid or distributed in
respect of the Note
<S> <C>
CLASS A-9 Note 0
Per $50,000 original principal amount of the Note 0
(ii) Amount of Interest paid or distributed in
respect of the Note
CLASS A-9 Note 5,246,055.54
Per $50,000 original principal amount of the Note 2,623.03
(iii) (A) Amount of Noteholders' Auction Rate
Interest Carryover paid or distributed
in respect of the Note
CLASS A-9 Note 0
Per $50,000 original principal amount of the Note 0
(B) Remaining Amount of Noteholders' Auction Rate Interest
Carryover to be paid or distributed in respect of the Note
CLASS A-9 Note 0
Per $50,000 original principal amount of the Note 0
(iv) Outstanding Principal Balance of the Note at Year End 100,000,000.00
(v) Pool Balance at Year End 759,959,481.90
(vi) Outstanding Principal amount of Notes at Year End
CLASSNOTES TRUST 1998-I 410,000,000.00
(vii) Applicable Interest Rate:
(a) In general:
1. Auction Rate for the prior Interest Period:
CLASS A-9 NOTES
PERIOD 1 5.29%
PERIOD 2 5.48%
PERIOD 3 5.45%
CURRENT RATE (Based on Auction) 5.47%
2. NET LOAN RATE
PERIOD 1 5.81%
PERIOD 2 7.00%
PERIOD 3 7.50%
(viii) (a) Service Fee for related Collection Period (Pro Rata) 56,001.43
Per $50,000 original principal amount of the Notes 26.28316
(b) Service Fee Carryover for related Collection Period
1. Distributed
Per $50,000 original principal amount of the Notes 0
2. Remaining Balance 0
Per $50,000 original principal amount of the Notes 0
(ix) Amount of Fees paid for the year
1. Service Fee (Pro Rata) 580,468.29
Per $50,000 original principal amount of the Note 290.234145
2. Administration Fee (Pro Rata) 15,000.00
Per $50,000 original principal amount of the Note 7.5
3. Auction Agent Fee (Pro Rata) 249,666.72
Per $50,000 original principal amount of the Note 124.83336
4. Indenture Trustee Fee (Pro Rata) 2,500.00
Per $50,000 original principal amount of the Note 1.25
5. Eligible Lender Trustee Fee (Pro Rata) 2,877.55
Per $50,000 original principal amount of the Note 1.438775
6. Surety Provider Fee (Pro Rata) 81,111.13
Per $50,000 original principal amount of the Note 40.555565
(x) Amount of payments to the Surety Provider in
reimbursement of prior draws under any Note
Surety Bond or the Certificate Surety Bond 0
(xi) Aggregate amount of Realized losses for the
related Collection period 0
(xii) Aggregate amount received with respect to Financed
Student Loans for which Realized Losses were
allocated previously 0
(xiii) (a) Amount of the distribution attributable to amounts
in the Reserve Account 0
(b) Amount of any other withdrawals from the Reserve
Account for such Distribution Date 0
(c) Amount in the Reserve Account 3,451.09
(xiv) Amount of any draw required to be made under a Note Surety bond
(together with any other information required to make
such draw) 0
(xv) (a) Portion (if any) of the distribution attributable to amounts on
deposit in the Pre-Funding Account 0
(b) Amount in the Pre-Funding Account 256.35
(xvi) Aggregate amount if any paid by the Eligible Lender Trustee for
Additional Financed Student Loans during the preceding collection
period 0
(xvii) Amount in the Pre-Funding Account at the end of the Funding Period to
be distributed as a payment of principal in respect of:
(a) CLASS A-1 NOTES 0
(b) CLASS A-1 NOTES (Only if Class___ Notes
have been paid in full) 0
(xviii) Aggregate amount (if any) paid for Financed Student Loans during
the preceding collection period. 0
(xix) As of 12/31/1999 Collection Period:
(a) Number of Financed Student Loans that are 30 to 60 days 22,005,850.59
Delinquent
(b) Number of Financed Student Loans that are 61 to 90 days 7,507,195.96
Delinquent
(c) Number of Financed Student Loans that are 91 to 180 days 13,135,215.51
Delinquent
(d) Number of Financed Student Loans that are more than 181 8,689,158.14
days Delinquent
(e) Number of Financed Student Loans for which claims have
been filed with the appropriate Guarantor and which are
awaiting payment 4,909,228.79
(xx) Parity Percentage as of 12/31/99 827,666,363.21
Numerator
Denominator 825,362,476.21 100.28%
(xxi) Excess of amounts deposited into the Collection Account with respect
to the sale by the Trust of Serial Loans over the aggregate Purchase
amount of such loans (such excess to be distributed to
Student Holdings) 0
(xxii) Amount of Additional Principal Payments, if any, made on
such Distribution Date 0
</TABLE>
First Union National Bank
By:/s/ Greg Baber
Greg Baber
Corporate Trust Officer
TRANS-WORLD INSURANCE COMPANY
2840 MORRIS AVENUE
UNION, NJ 07083
CLASSNOTES TRUST 1997 - I
Aggregate Year End Statement for Series 1998-I
As of December 31, 1999
Class A-10
<TABLE>
<CAPTION>
As of Year End:
(i) Amount of Principal paid or distributed in
respect of the Note
<S> <C>
CLASS A-10 Note 0
Per $50,000 original principal amount of the Note 0
(ii) Amount of Interest paid or distributed in
respect of the Note
CLASS A-10 Note 5,819,488.90
Per $50,000 original principal amount of the Note 2,645.22
(iii) (A) Amount of Noteholders' Auction Rate
Interest Carryover paid or distributed
in respect of the Note
CLASS A-10 Note 0
Per $50,000 original principal amount of the Note 0
(B) Remaining Amount of Noteholders' Auction Rate Interest
Carryover to be paid or distributed in respect of the Note
CLASS A-10 Note 0
Per $50,000 original principal amount of the Note 0
(iv) Outstanding Principal Balance of the Note at Year End 110,000,000.00
(v) Pool Balance at Year End 759,959,481.90
(vi) Outstanding Principal amount of Notes at Year End
CLASSNOTES TRUST 1998-I 410,000,000.00
(vii) Applicable Interest Rate:
(a) In general:
1. Auction Rate for the prior Interest Period:
CLASS A-10 NOTES
PERIOD 1 5.37%
PERIOD 2 5.50%
PERIOD 3 5.45%
CURRENT RATE (Based on 5.60%
Auction)
2. NET LOAN RATE
PERIOD 1 5.81%
PERIOD 2 7.00%
PERIOD 3 7.50%
(viii) (a) Service Fee for related Collection Period (Pro Rata) 61,601.57
Per $50,000 original principal amount of the Notes 26.283159
(b) Service Fee Carryover for related Collection Period
1. Distributed
Per $50,000 original principal amount of the Notes 0
2. Remaining Balance 0
Per $50,000 original principal amount of the Notes 0
(ix) Amount of Fees paid for the year
1. Service Fee (Pro Rata) 638,515.14
Per $50,000 original principal amount of the Note 290.234155
2. Administration Fee (Pro Rata) 16,500.00
Per $50,000 original principal amount of the Note 7.5
3. Auction Agent Fee (Pro Rata) 274,633.32
Per $50,000 original principal amount of the Note 124.833327
4. Indenture Trustee Fee (Pro Rata) 2,500.00
Per $50,000 original principal amount of the Note 1.136364
5. Eligible Lender Trustee Fee (Pro Rata) 3,165.02
Per $50,000 original principal amount of the Note 1.438645
6. Surety Provider Fee (Pro Rata) 89,222.22
Per $50,000 original principal amount of the Note 40.555555
(x) Amount of payments to the Surety Provider in
reimbursement of prior draws under any Note
Surety Bond or the Certificate Surety Bond 0
(xi) Aggregate amount of Realized losses for the
related Collection period 0
(xii) Aggregate amount received with respect to Financed
Student Loans for which Realized Losses were
allocated previously 0
(xiii) (a) Amount of the distribution attributable to amounts
in the Reserve Account 0
(b) Amount of any other withdrawals from the Reserve
Account for such Distribution Date 0
(c) Amount in the Reserve Account 3,451.09
(xiv) Amount of any draw required to be made under a Note Surety bond
(together with any other information required to make
such draw) 0
(xv)(a) Portion (if any) of the distribution attributable to amounts on
deposit in the Pre-Funding Account 0
(b) Amount in the Pre-Funding Account 256.35
(xvi) Aggregate amount if any paid by the Eligible Lender Trustee for
Additional Financed Student Loans during the preceding collection
period 0
(xvii) Amount in the Pre-Funding Account at the end of the Funding Period to
be distributed as a payment of principal in respect of:
(a) CLASS A-1 NOTES 0
(b) CLASS A-1 NOTES (Only if Class___ Notes
have been paid in full) 0
(xviii) Aggregate amount (if any) paid for Financed Student Loans during
the preceding collection period. 0
(xix) As of 12/31/1999 Collection Period:
(a) Number of Financed Student Loans that are 30 to 60 days 22,005,850.59
Delinquent
(b) Number of Financed Student Loans that are 61 to 90 days 7,507,195.96
Delinquent
(c) Number of Financed Student Loans that are 91 to 180 days 13,135,215.51
Delinquent
(d) Number of Financed Student Loans that are more than 181 8,689,158.14
days Delinquent
(e) Number of Financed Student Loans for which claims have
been filed with the appropriate Guarantor and which are
awaiting payment 4,909,228.79
(xx) Parity Percentage as of 12/31/99 827,666,363.21
Numerator 825,362,476.21 100.28%
Denominator
(xxi) Excess of amounts deposited into the Collection Account with respect
to the sale by the Trust of Serial Loans over the aggregate Purchase
amount of such loans (such excess to be distributed to
Student Holdings) 0
(xxii) Amount of Additional Principal Payments, if any, made on
such Distribution Date 0
</TABLE>
First Union National Bank
By:/s/ Greg Baber
Greg Baber
Corporate Trust Officer
EXHIBIT 20
OFFICERS CERTIFICATE
I, Doris A. Grose, Senior Vice President of ClassNotes Inc., d/b/a Educaid,
a Delaware corporation (the Company"), do hereby certify that:
1. The Company, as Master Servicer and Administrator under the ClassNotes
Trust 1998-I, Asset Backed Notes Series 1998-1, Second Supplemental Sales and
Servicing Agreement dated March 17, 1998, has fulfilled all of its obligations
pursuant to the above-referenced agreements as described in Section 4.8 (Annual
Statement as to Compliance; Notice of Default) for the period of January 1, 1999
through December 31, 1999, and for those transactions which closed in 1999, from
their closing dates through December 31, 1999.
The Company has provided this Officer's Certificate to those parties listed
in Section 4.8 of the respective Sale and Purchase Agreements.
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
March 28, 2000.
By: /S/ DORIS. A. GROSE
------------------------
Doris A. Grose, Senior Vice President
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
Ambac Assurance Corporation:
We consent to the incorporation by reference in the 1999 Form 10-K of the Money
Store Inc. (the "Registrant") on behalf of ClassNotes Trust 1997-I, Series
1997-2, of our report dated January 21, 2000 on the consolidated financial
statements of Ambac Assurance Corporation and subsidiaries as of December 31,
1999 and 1998 and for each of the years in the three year period ended December
31, 1999, which report appears in the Annual Report on Form 10-K of Ambac
Financial Group, Inc., which was filed with the Securities and Exchange
Commission on March 30, 2000.
New York, New York
April 7, 2000
/s/ KPMG
