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 : September 25, 1997
(Date of earliest event reported)
Commission File No.: 333-22559-06
Salomon Brothers Mortgage Securities VII, Inc.,
Asset-Backed Floating Rate Certificates, Series 1997-AQ1 Trust
New York (governing law of Pooling and Servicing Agreement)
(State of Incorporation)
PENDING
(I.R.S. Employer Identification No.)
c/o Norwest Bank Minnesota, N.A.
11000 Broken Land Parkway
Columbia, Maryland 21044
(Address of principal executive offices) (Zip Code)
(410) 884-2000
Registrant's Full Telephone Number
(Former name, former address and former fiscal year,
if changed since last report)
<PAGE>
ITEM 5. Other Events
On September 25, 1997 a distribution was made to holders of
Salomon Brothers Mortgage Securities VII, Inc.,
Asset-Backed Floating Rate Certificates, Series 1997-AQ1 Trust.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
Item 601(a) of
Regulation S-K
Exhibit Number Description
(EX-99.1) Monthly report distributed to holders of Asset-Backed
Floating Rate Certificates, Series 1997-AQ1 Trust, relating to
the September 25,1997 distribution
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 hereunto duly authorized.
Salomon Brothers Mortgage Securities VII, Inc.,
Asset-Backed Floating Rate Certificates, Series 1997-AQ1 Trust
October 6, 1997 by Norwest Bank Minnesota, N.A., as Trustee
/s/ Sherri J. Sharps, Vice President
INDEX TO EXHIBITS
Exhibit Number Description
(EX-99.1) Monthly report distributed to holders of Asset-Backed Floating
Rate Certificates, Series 1997-AQ1 Trust, relating to the
September 25,1997 distribution.
<TABLE>
<CAPTION>
Salomon Brothers Mortgage Securities VII, Inc.
Mortgage Pass-Through Certificates
Statements to Certificateholders
Record Date: 29-Aug-1997
Distribution Date: 25-Sep-1997
SBMSVII Series 1997-A1
Customer Service
Norwest Bank Minnesota, N.A.
Securities Administration Services
11000 Broken Land Parkway
Columbia, MD 21044
Telephone:(410) 884-2173
Fax:(410) 884-2369
Certificateholder Distribution Summary
Certificate Certificate Beginning Current
Class Pass-Through Certificate Interest Principal Realized
Class CUSIP Description Rate Balance Distribution Distribution Loss
<S> <C> <C> <C> <C> <C> <C> <C>
A 79548KVF2 SEQ 5.84500% 203,576,000.00 1,024,637.59 1,083,689.97 0.00
R-I 79548KVK1 SEQ 5.84500% 100.00 0.50 100.00 0.00
R-II 79548KVL9 SEQ 5.84500% 100.00 0.50 100.00 0.00
R-III 79548KVM7 SEQ 5.84500% 100.00 0.50 100.00 0.00
M-1 79548KVG0 SUB 6.03500% 21,562,000.00 112,053.52 0.00 0.00
M-2 79548KVH8 SUB 6.21500% 17,123,000.00 91,638.97 0.00 0.00
M-3 79548KVJ4 SUB 6.57500% 7,611,000.00 43,092.00 0.00 0.00
CE SAL97A1CE SUB 0.00000% 3,805,408.40 683,152.33 0.40 0.00
</TABLE>
<TABLE>
<CAPTION>
Certificateholder Distribution Summary (continued)
Ending Cumulative
Certificate Total Realized
Class Balance Distribution Losses
<S> <C> <C> <C>
A 202,492,310.04 2,108,327.56 0.00
R-I 0.00 100.50 0.00
R-II 0.00 100.50 0.00
R-III 0.00 100.50 0.00
M-1 21,562,000.00 112,053.52 0.00
M-2 17,123,000.00 91,638.97 0.00
M-3 7,611,000.00 43,092.00 0.00
CE 3,805,408.00 683,152.73 0.00
<FN>
All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator
on behalf of the Trustee.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Distribution Statement
Original Beginning Scheduled Unscheduled Total
Face Certificate Principal Principal Realized Principal
Class Amount Balance Distribution Distribution Accretion Loss (1) Reduction
<S> <C> <C> <C> <C> <C> <C> <C>
A 203,576,000.00 203,576,000.00 172,141.22 911,548.72 0.00 0.00 1,083,689.97
R-I 100.00 100.00 15.88 84.12 0.00 0.00 100.00
R-II 100.00 100.00 15.88 84.12 0.00 0.00 100.00
R-III 100.00 100.00 15.88 84.12 0.00 0.00 100.00
M-1 21,562,000.00 21,562,000.00 0.00 0.00 0.00 0.00 0.00
M-2 17,123,000.00 17,123,000.00 0.00 0.00 0.00 0.00 0.00
M-3 7,611,000.00 7,611,000.00 0.00 0.00 0.00 0.00 0.00
CE 3,805,408.40 3,805,408.40 0.00 0.40 0.00 0.00 0.40
<FN>
(1) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses Unless Otherwise Disclosed. Please Refer
To The Prospectus Supplement For A Full Description.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Principal Distribution Statement (continued)
Ending Ending Total
Certificate Certificate Principal
Class Balance Percentage Distribution
<S> <C> <C> <C>
A 202,492,310.04 0.99467673 1,083,689.97
R-I 0.00 0.00000000 100.00
R-II 0.00 0.00000000 100.00
R-III 0.00 0.00000000 100.00
M-1 21,562,000.00 1.00000000 0.00
M-2 17,123,000.00 1.00000000 0.00
M-3 7,611,000.00 1.00000000 0.00
CE 3,805,408.00 0.99999989 0.40
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Distribution Factors Statement
Original Beginning Scheduled Unscheduled Total
Face Certificate Principal Principal Realized Principal
Class (2) Amount Balance Distribution Distribution Accretion Loss (3) Reduction
<S> <C> <C> <C> <C> <C> <C> <C>
A 203,576,000.00 1000.00000000 0.84558700 4.47768263 0.00000000 0.00000000 5.32326979
R-I 100.00 1000.00000000 158.80000000 841.20000000 0.00000000 0.00000000 1,000.00000000
R-II 100.00 1000.00000000 158.80000000 841.20000000 0.00000000 0.00000000 1,000.00000000
R-III 100.00 1000.00000000 158.80000000 841.20000000 0.00000000 0.00000000 1,000.00000000
M-1 21,562,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-2 17,123,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-3 7,611,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
CE 3,805,408.40 1000.00000000 0.00000000 0.00010511 0.00000000 0.00000000 0.00010511
<FN>
(2) All classes are per $1,000 denomination.
(3) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses Unless Otherwise Disclosed. Please Refer
To The Prospectus Supplement For A Full Description.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Principal Distribution Factors Statement (continued)
Ending Ending Total
Certificate Certificate Principal
Class (4) Balance Percentage Distribution
<S> <C> <C> <C>
A 994.67673026 0.99467673 5.32326979
R-I 0.00000000 0.00000000 1,000.00000000
R-II 0.00000000 0.00000000 1,000.00000000
R-III 0.00000000 0.00000000 1,000.00000000
M-1 1,000.00000000 1.00000000 0.00000000
M-2 1,000.00000000 1.00000000 0.00000000
M-3 1,000.00000000 1.00000000 0.00000000
CE 999.99989489 0.99999989 0.00010511
<FN>
(4) All classes are per $1,000 denomination.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Interest Distribution Statement
Payment of
Beginning Previously
Original Current Certificate/ Current Unpaid Current Non-Supported
Face Certificate Notional Accrued Interest Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall Shortfall
<S> <C> <C> <C> <C> <C> <C> <C>
A 203,576,000.00 5.84500% 203,576,000.00 1,024,637.59 0.00 0.00 0.01
R-I 100.00 5.84500% 100.00 0.50 0.00 0.00 0.00
R-II 100.00 5.84500% 100.00 0.50 0.00 0.00 0.00
R-III 100.00 5.84500% 100.00 0.50 0.00 0.00 0.00
M-1 21,562,000.00 6.03500% 21,562,000.00 112,053.52 0.00 0.00 0.00
M-2 17,123,000.00 6.21500% 17,123,000.00 91,638.97 0.00 0.00 0.00
M-3 7,611,000.00 6.57500% 7,611,000.00 43,092.00 0.00 0.00 0.00
CE 3,805,408.40 0.00000% 3,805,408.40 0.00 0.00 0.00 0.00
</TABLE>
<TABLE>
<CAPTION>
Interest Distribution Statement (continued)
Remaining
Cumulative Ending
Total Unpaid Certificate/
Realized Interest Interest Notional
Class Losses (5) Distribution Shortfall Balance
<S> <C> <C> <C> <C>
A 0.00 1,024,637.59 0.00 202,492,310.04
R-I 0.00 0.50 0.00 0.00
R-II 0.00 0.50 0.00 0.00
R-III 0.00 0.50 0.00 0.00
M-1 0.00 112,053.52 0.00 21,562,000.00
M-2 0.00 91,638.97 0.00 17,123,000.00
M-3 0.00 43,092.00 0.00 7,611,000.00
CE 0.00 683,152.33 0.00 3,805,408.00
<FN>
(5) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses Unless Otherwise Disclosed. Please Refer
To The Prospectus Supplement For A Full Description.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Interest Distribution Factors Statement
Payment of
Beginning Previously
Original Current Certificate/ Current Unpaid Current Non-Supported
Face Certificate Notional Accrued Interest Interest Interest
Class (6) Amount Rate Balance Interest Shortfall Shortfall Shortfall
<S> <C> <C> <C> <C> <C> <C> <C>
A 203,576,000.00 5.84500% 1000.00000000 5.03319443 0.00000000 0.00000000 0.00000005
R-I 100.00 5.84500% 1000.00000000 5.00000000 0.00000000 0.00000000 0.00000000
R-II 100.00 5.84500% 1000.00000000 5.00000000 0.00000000 0.00000000 0.00000000
R-III 100.00 5.84500% 1000.00000000 5.00000000 0.00000000 0.00000000 0.00000000
M-1 21,562,000.00 6.03500% 1000.00000000 5.19680549 0.00000000 0.00000000 0.00000000
M-2 17,123,000.00 6.21500% 1000.00000000 5.35180576 0.00000000 0.00000000 0.00000000
M-3 7,611,000.00 6.57500% 1000.00000000 5.66180528 0.00000000 0.00000000 0.00000000
CE 3,805,408.40 0.00000% 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
<FN>
(6) All classes are per $1000 denomination.
An Entire Interest.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Interest Distribution Factors Statement (continued)
Remaining
Cumulative Ending
Total Unpaid Certificate/
Realized Interest Interest Notional
Class Losses (7) Distribution Shortfall Balance
<S> <C> <C> <C> <C>
A 0.00000000 5.03319443 0.00000000 994.67673026
R-I 0.00000000 5.00000000 0.00000000 0.00000000
R-II 0.00000000 5.00000000 0.00000000 0.00000000
R-III 0.00000000 5.00000000 0.00000000 0.00000000
M-1 0.00000000 5.19680549 0.00000000 1000.00000000
M-2 0.00000000 5.35180576 0.00000000 1000.00000000
M-3 0.00000000 5.66180528 0.00000000 1000.00000000
CE 0.00000000 179.52142272 0.00000000 999.99989489
<FN>
(7) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses Unless Otherwise Disclosed. Please Refer
To The Prospectus Supplement For A Full Description.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 3,145,745.08
Liquidations, Insurance Proceeds, Reserve Funds 0.00
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 0.00
Realized Losses 0.00
__________________
Total Deposits 3,145,745.08
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 107,178.83
Payment of Interest and Principal 3,038,566.25
__________________
Total Withdrawals (Pool Distribution Amount) 3,145,745.08
Ending Balance 0.00
__________________
__________________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SERVICER ADVANCES
<S> <C>
Beginning Balance 0.00
Current Period Advances By Servicer 0.00
Reimbursement of Advances 0.00
Ending Cumulative Advances 0.00
</TABLE>
<TABLE>
<CAPTION>
PREPAYMENT/CURTAILMENT INTEREST SHORTFALL
<S> <C>
Total Prepayment/Curtailment Interest Shortfall 0.00
Servicing Fee Support 0.00
__________________
Non-Supported Prepayment/Curtailment Interest Shortfall 0.00
__________________
__________________
</TABLE>
<TABLE>
<CAPTION>
SERVICING FEES
<S> <C>
Gross Servicing Fee 105,699.04
Trustee Fee 1,479.79
Supported Prepayment/Curtailment Interest Shortfall 0.00
__________________
Net Servicing Fee 107,178.83
__________________
__________________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DELINQUENCY STATUS
Percentage Delinquent
Based On
Current Unpaid
Number Of Principal Number Unpaid
Loans Balance Of Loans Balance
<S> <C> <C> <C> <C>
30 Days 71 5,550,834.24 2.34% 2.20%
60 Days 11 844,405.54 0.36% 0.33%
90+ Days 0 0.00 0.00% 0.00%
Bankruptcy 3 283,012.39 0.10% 0.11%
Foreclosure 0 0.00 0.00% 0.00%
REO 0 0.00 0.00% 0.00%
Totals 85 6,678,252.17 2.80% 2.64%
</TABLE>
<TABLE>
<CAPTION>
COLLATERAL STATEMENT
<S> <C>
Collateral Description 6 Month LIBOR ARM
Weighted Average Gross Coupon 9.752951%
Weighted Average Net Coupon 9.245951%
Weighted Average Maturity (Stepdown Calculation) 338 Months
Beginning Scheduled Collateral Loan Count 3,041
Number of Loans Paid in Full 6
Ending Scheduled Collateral Loan Count 3,035
Overcollateralization Amount 3,805,408.00
Targeted Overcollateralization Amount 3,805,408.00
Monthly P&I Constant 2,233,944.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CREDIT ENHANCEMENT
Loss Description Original $ Original % Current $ Current %
<S> <C> <C> <C> <C>
Bankruptcy 100,000.00 0.03942010% 100,000.00 0.03958927%
Fraud 7,610,332.00 3.00000029% 7,610,332.00 3.01287451%
Special Hazard 2,536,778.00 1.00000036% 2,538,778.00 1.00429180%
<FN>
Limit of Subordination's Exposure for 100% of Certain Types of Losses.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUBORDINATION LEVEL
Class Original $ Original % Current $ Current %
<S> <C> <C> <C> <C>
A 50,101,408.40 60.24985770% 50,101,408.00 19.83477986%
M-1 28,539,408.40 8.49976142% 28,539,408.00 11.29854225%
M-2 11,416,408.40 6.74590330% 11,416,408.00 4.51967217%
M-3 3,805,408.40 3.00026362% 3,805,408.00 1.50653311%
CE 0.00 1.50009570% 0.00 0.00000000%
<FN>
Please refer to the Prospectus Supplement For A Full Description Of Loss Exposure.
</FN>
</TABLE>
<TABLE>
<CAPTION>
CATEGORY 30-59 DAYS DELINQUENT 60-90 DAYS DELINQUENT
Balance Loan # Percentage Balance Loan # Percentage
<S> <C> <C> <C> <C> <C> <C>
No Status 5,550,834.24 71 2.1975% 844,405.54 11 0.3343%
Foreclosure 0.00 0 0.0000% 0.00 0 0.0000%
Bankruptcy 54,940.21 1 0.0218% 228,072.18 2 0.0903%
REO 0.00 0 0.0000% 0.00 0 0.0000%
TOTALS 5,605,774.45 72 2.2193% 1,072,477.72 13 0.4246%
</TABLE>
<TABLE>
<CAPTION>
CATEGORY
90+ DAYS DELINQUENCY TOTALS
Balance Loan # Percentage Balance Loan # Percentage
<S> <C> <C> <C> <C> <C> <C>
No Status 0.00 0 0.0000% 6,395,239.78 82 2.5318%
Foreclosure 0.00 0 0.0000% 0.00 0 0.0000%
Bankruptcy 0.00 0 0.0000% 283,012.39 3 0.1120%
REO 0.00 0 0.0000% 0.00 0 0.0000%
TOTALS 0.00 0 1.0000% 6,678,252.17 85 2.6439%
<FN>
All Percentages are calculated by dividing the respective Delinquency
Balance by the ending Collateral Balance.
Current Period Realized Loss - Includes Interest Shortfall 0.00
Cumulative Realized Losses - Includes Interest Shortfall 0.00
</FN>
</TABLE>
