SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 25, 1997
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing
Agreement, dated as of May 1, 1997, providing
for the issuance of Asset-Backed Floating Rate Certificates, Series 1997-NC2)
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-22559 13-3439681
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
Seven World Trade Center
New York, New York 10048
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 783-5659
Item 5. Other Events
On June 25, 1997 a scheduled distribution was made from the Trust to
holders of the Class A Certificates. The Trustee has caused to be filed
with the Commission, the Monthly Report dated June 25, 1997. The
Monthly Report is filed pursuant to and in accordance with
(1) numerous no-action letters (2) current Commission policy in the area.
A. Monthly Report Information:
See Exhibit No.1
B. Have any deficiencies occurred? NO.
Date:
Amount:
C. Item 1: Legal Proceedings: NONE
D. Item 2: Changes in Securities: NONE
E. Item 4: Submission of Matters to a Vote of Certificateholders: NONE
F. Item 5: Other Information - Form 10-Q, Part II - Items 1,2,4,5 if
applicable: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Distribution Report dated June 25, 1997.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1997-NC2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 06/25/97
Beginning
Certificate Principal Interest Realized Certificate
Class Cusip Balance Distribution Distributio Losses Balance
A 79548KVC9 125,113,000.00 452,095.87 562,070.15 0.00 124,660,904.13
CE NA 4,203,388.07 0.00 361,187.28 0.00 4,203,388.07
R-II 79548KVE5 100.00 100.00 0.45 0.00 0.00
Total 129,316,488.07 452,195.87 923,257.88 0.00 128,864,292.20
AMOUNTS PER $1,000 UNIT
Ending Current
Principal Interest Total Realized CertificatePass-Through
ClassDistribution DistributionDistribution Losses Balance Interest Rate
A 3.6135 4.492500 8.106000 0.000000 996.386500 5.990000%
CE 0.0000 85.927655 85.927655 0.000000 1000.00000 3.351661%
R-II 1000.0000 4.500000 1004.500000 0.000000 0.000000 5.990000%
The Class CE Certificates accrue interest on a Notional Balance equal
to the LT1 Uncertificated Balance.
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 49,102.94
TRUSTEE FEES 1,724.49
Section 4.02 (iv.)
GUARANTEED DISTRIBUTIONS
Guaranteed Principal Distribution 0.00
Guaranteed Interest Distribution 562,071.26
Section 4.02 (v.)
INSURANCE PAYMENT 0.00
CERTIFICATE INSURER REIMBURSEMENT 0.00
CUMULATIVE INSURANCE PAYMENTS 0.00
Section 4.02 (vi.)
P&I ADVANCES Total Advances 211,952.31
*Note: P&I Advances are made on Mortgage Loans Delinquent as of the
Determination Date.
Section 4.02 (vii.)
BALANCES AS OF:Stated Principal Balance of Mortgage Loans 128,884,222.26
06/25/97 Stated Principal Balance of REO Properties 0.00
Section 4.02 (viii.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 1068
Aggregate Principal Balance as of the Due Date 128,884,222.26
Weighted Average Remaining Term to Maturity 357
Weighted Average Mortgage Rate 9.30595%
Unpaid
Section 4.02 (ix.) Principal
DELINQUENCY INFORMATION Number Balance
30-59 days delinquent 0 0.00
60-89 days delinquent 0 0.00
90 or more days delinquent 0 0.00
Foreclosure proceedings have commenced 0 0.00
*Note: In accordance with the Master Servicer, the Delinquency Information
relates to the Prepayment Period.
Section 4.02 (x.) Loans that become REO properties in the preceding
calendar month:
REO INFORMATION Unpaid Principal Stated Principal
Loan Number Balance Balance
Section 4.02 (xi.) Total Book Value of REO Properties: 0.00
REO BOOK VALUES
Section 4.02 (xii.) Aggregate Amount of Principal Prepayments:
Curtailments (15,222.09)
Payments in Full 401,041.24
REO Principal Amortization 0.00
Section 4.02 (xiii.)
REALIZED LOSSES Realized Losses that were incurred during the
related Prepayment Period
Total Realized Losses 0.00
Which Include:
Extraordinary Losses 0.00
Fraud Losses 0.00
Special Hazard Losses 0.00
Bankruptcy Losses 0.00
Section 4.02 (xiv.)
EXTRAORDINARY TRUST FUND EXPENSES
Extraordinary Trust Fund Expenses withdrawn from the Collection 0.00
Account or Distribution Account that caused a reduction of the
Available Distribution Amount:
Section 4.02 (xv.)
CERTIFICATE PRINCIPAL BALANCES
Ending
Principal Realized
Balance Losses
Class A 124,660,904.13 0.00
Class CE 4,203,388.07 0.00
Total 128,864,292.20 0.00
Section 4.02 (xvi.)
CERTIFICATE FACTOR
Certificate
Factor
Class A 0.99638650
Class CE 0.99650318
Section 4.02 (xvii.)
INTEREST DISTRIBUTION AMOUNTS
Reduction from the Allocation of:
Interest Prepayment
Distribution Realized Basis Risk Interest
Amount Losses Shortfalls Shortfalls
A 562,070.15 0.00 0.00 0.00
CE 361,187.28 0.00 0.00 0.00
TOTAL 923,257.43 0.00 0.00 0.00
Portion Relief Act Extraordinary Remaining
Paid Under Interest Trust Fund Unpaid
Policy Shortfalls Expenses Amounts
A 0.00 0.00 0.00 0.00
CE 0.00 0.00 0.00 0.00
TOTAL 0.00 0.00 0.00 0.00
Section 4.02 (xviii.)
PREPAYMENT INTEREST Prepayment Interest Shortfalls not 0.00
SHORTFALLS covered by the Servicer:
Section 4.02 (xix.) Relief Act Interest Shortfall 0.00
Section 4.02 (xx.) Fraud Loss Amount 3,880,097.64
Bankruptcy Amount 100,000.00
Special Hazard Amount 1,500,000.00
Section 4.02 (xxi.) Basis Risk Shortfall 0.00
Section 4.02 (xxii.) Unpaid Basis Risk Shortfall 0.00
Section 4.02 (xxiii.) Required Subordinated Amount 4,203,388.07
Section 4.02 (xxiv.) Subordination Increase Amount 0.00
Section 4.02 (xxv.) Subordination Reduction Amount 0.00
Section 4.02 (xxvi.)
PASS THROUGH RATE Class A Class CE
Current Distribution Period 5.990000% 3.351661%
Next Distribution Period (Estimated) 5.990000% 2.769173%
Section 4.02 (xxvii.)
RESERVE FUND Beginning Balance 0.00
Deposits 189.03
Withdrawals 0.00
Ending Balance 189.03
SIGNATURES
Pursuant to the requirements 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.
SALOMON BROTHERS MORTGAGE
SECURITIES VII, INC.
By: /s/ Eve Kaplan
Name: Eve Kaplan
Title: Vice President
First Trust National Association
Dated: September 30, 1997
