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): August 25, 1997
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing
Agreement, dated as of June 1, 1997, providing
for the issuance of Asset-Backed Floating Rate Certificates, Series 1997-NC3)
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 August 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 August 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 applica
ble: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Distribution Report dated August 25, 1997.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1997-NC3
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 08/25/97
Beginning
Certificate Principal Interest Realized Certificate
Class Cusip Balance Distribution Distribution Losses Balance
A 79548KVU9 99,382,764.49 1,256,661.88 508,984.69 0.00 98,126,102.61
CE NA 3,363,197.97 0.00 228,984.83 0.00 3,363,197.97
R-II 79548KVW5 0.00 0.00 0.00 0.00 0.00
Total 102,745,962.46 1,256,661.88 737,969.52 0.00 101,489,300.58
AMOUNTS PER $1,000 UNIT
Ending Current
Principal Interest Total Certificate Realized Pass-Through
ClassDistribution DistributionDistribution Balance Losses Interest Rate
A 12.552811 5.084254 17.637065 980.182825 0.000000 5.947500%
CE 0.000000 68.085445 68.085445 1000.00000 0.000000 2.662941%
R-II 0.0000 0.000000 0.000000 0.000000 0.000000 5.947500%
The Class CE Certificates accrue interest on a Notional Balance equal
to the LT1 Uncertificated Balance.
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 42,818.70
TRUSTEE FEES 1,370.21
Section 4.02 (iv.)
GUARANTEED DISTRIBUTIONS
Guaranteed Principal Distribution 0.00
Guaranteed Interest Distribution 508,984.69
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 189,407.78
*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 101,508,917.10
08/25/97 Stated Principal Balance of REO Properties 0.00
Section 4.02 (viii.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 861
Aggregate Principal Balance as of the Due Date 101,508,917.10
Weighted Average Remaining Term to Maturity 356
Weighted Average Mortgage Rate 9.35566%
Unpaid
Section 4.02 (ix.) Principal
DELINQUENCY INFORMATION Number Balance
30-59 days delinquent 6 455,873.00
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 10,107.14
Payments in Full 1,190,808.26
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 98,126,102.61 0.00
Class CE 3,363,197.97 0.00
Total 101,489,300.58 0.00
Section 4.02 (xvi.)
CERTIFICATE FACTOR
Certificate
Factor
Class A 0.98018282
Class CE 0.98082600
Section 4.02 (xvii.)
INTEREST DISTRIBUTION AMOUNTS
Reduction from the Allocation of:
Interest Prepayment
Distribution Realized Basis Risk Interest
Amount Losses Shortfalls Shortfalls
A 508,984.69 0.00 0.00 0.00
CE 228,984.83 0.00 0.00 0.00
TOTAL 737,969.52 0.00 0.00 0.00
Portion Relief Act Remaining
Paid Under Interest Unpaid
Policy Shortfalls Amounts
A 0.00 0.00 0.00
CE 0.00 0.00 0.00
TOTAL 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 3,104,801.94
Bankruptcy Amount 100,000.00
Special Hazard Amount 1,560,000.00
Section 4.02 (xxi.) Required Subordinated Amount 3,363,197.97
Section 4.02 (xxii.) Subordination Increase Amount 0.00
Section 4.02 (xxiii.) Subordination Reduction Amount 0.00
Section 4.02 (xxiv.)
PASS THROUGH RATE Class A Class CE
Current Distribution Period 5.947500% 2.662941%
Next Distribution Period (Estimated) 5.885000% 2.725968%
Section 4.02 (xxv.)
RESERVE FUND Beginning Balance 261.82
Deposits 367.63
Withdrawals 0.00
Ending Balance 629.45
PERFORMANCE MEASURES
Net Monthly Excess Spread 228,008.66
Net Monthly Excess Cash Flow 228,008.66
Spread Squeezed Percentage 2.69595%
Spread Squeeze Subordination
Increase Amount 0.00
Step Up-Step Down-
Current LevelCurrent Level
Step Up and Step Down Triggers Current Level: more than:less than:
Cumulative Loss Test 0.000000% 0.750000% NA
Rolling Delinquency Test 0.000000% 11.000000% 9.000000%
Rolling Loss Test 0.000000% 1.000000% 0.500000%
Step Up Trigger Occurrence NO
Step Down Trigger Occurrence NO
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
