<PAGE>
Pursuant to Rule 424(b)(5)
File No. 33-96378
PROSPECTUS SUPPLEMENT
(to Prospectus Dated February 23, 1998)
$1,516,147,000 (Approximate)
LB COMMERCIAL MORTGAGE TRUST
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C1
----------------
The Series 1998-C1 Commercial Mortgage Pass-Through Certificates (the
"Certificates") will consist of 18 classes (each, a "Class") of Certificates,
including the eight Classes of Certificates offered hereby (collectively, the
"Offered Certificates"). The Certificates, in the aggregate, will represent the
entire undivided beneficial ownership interest in a trust fund (the "Trust
Fund") to be established by Structured Asset Securities Corporation (the
"Depositor"), that is expected to consist primarily of a segregated pool (the
"Mortgage Pool") of 259 conventional monthly pay, commercial and multifamily,
fixed rate mortgage loans (the "Mortgage Loans") having the characteristics
described herein.
(CONTINUED ON NEXT PAGE)
---------------------
PROSPECTIVE INVESTORS SHOULD CONSIDER THE INFORMATION SET FORTH UNDER "RISK
FACTORS" BEGINNING ON PAGE S-29 OF THIS PROSPECTUS SUPPLEMENT AND ON PAGE 25 OF
THE PROSPECTUS.
-------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
---------------------
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.
<TABLE>
<CAPTION>
INITIAL % OF ASSUMED FINAL
CERTIFICATE INITIAL POOL PASS-THROUGH DISTRIBUTION CUSIP EXPECTED
CLASS BALANCE(1) BALANCE(1) RATE DATE(2) NO. RATING(3)
<S> <C> <C> <C> <C> <C> <C>
CLASS A-1............ $ 267,810,000 15.50% 6.330% NOVEMBER, 2004 501773AZ8 AAA/AAA
CLASS A-2............ $ 308,000,000 17.83% 6.400% AUGUST, 2007 501773BA2 AAA/AAA
CLASS A-3............ $ 642,291,000 37.17% 6.480% JANUARY, 2008 501773BB0 AAA/AAA
CLASS B.............. $ 86,390,000 5.00% 6.590% JANUARY, 2008 501773BC8 AA2/AA
CLASS C.............. $ 86,390,000 5.00% 6.680% FEBRUARY, 2008 501773BD6 A2/A
CLASS D.............. $ 90,710,000 5.25% 6.980% APRIL, 2012 501773BE4 BAA2/BBB
CLASS E.............. $ 34,556,000 2.00% 7.000% NOVEMBER, 2012 501773BF1 BAA3/BBB-
CLASS IO............. N/A(4) N/A(4) N/A(4) FEBRUARY, 2028 501773AY1 AAA/AAA
</TABLE>
(FOOTNOTES ON NEXT PAGE)
The Offered Certificates will be offered by Lehman Brothers Inc. (the
"Underwriter") from time to time in negotiated transactions or otherwise at
varying prices to be determined at the time of sale. Proceeds to the Depositor
from the sale of the Offered Certificates, before deducting expenses payable by
the Depositor, will be approximately $1,633,187,050, which includes accrued
interest. See "Method of Distribution" herein.
The Offered Certificates are offered by the Underwriter when, as and if
issued and delivered to and accepted by the Underwriter, subject to prior sale
and subject to the Underwriter's right to reject orders in whole or in part. It
is expected that the Offered Certificates will be delivered to the Underwriter
in book-entry form through the Same-Day Funds Settlement System of The
Depository Trust Company on or about March 11, 1998.
-------------------------
LEHMAN BROTHERS
FIRST UNION CAPITAL MARKETS CORP.
The date of this Prospectus Supplement is March 9, 1998.
<PAGE>
(FOOTNOTES FROM TABLE ON PRIOR PAGE)
(1) Subject to a permitted variance of plus or minus 5%.
(2) The Assumed Final Distribution Date is defined (and has been determined on
the basis of the assumptions set forth) under "Description of the
Certificates--Assumed Final Distribution Date; Rated Final Distribution
Date" herein. The "Rated Final Distribution Date" is the Distribution Date
in February, 2030, which is the first Distribution Date that follows the
second anniversary of the end of the amortization term for the Mortgage Loan
that, as of the Cut-off Date, has the longest remaining amortization term.
See "Description of the Certificates-- Assumed Final Distribution Date;
Rated Final Distribution Date" and "Ratings" herein.
(3) By each of Moody's Investors Service, Inc. and Duff & Phelps Credit Rating
Co.
(4) The Class IO Certificates will not have a Certificate Balance nor will they
entitle the holders thereof to receive distributions of principal; however,
such Certificates will entitle the holders thereof to receive payments of
the aggregate interest accrued from time to time on the respective notional
amounts of the Class IO Components, as described herein. The aggregate of
such notional amounts will initially equal approximately $1,727,817,629. See
"Description of the Certificates--Certificate Balances and Notional
Amounts", "--Pass-Through Rates" and "--Distributions" herein.
- - ------------------------
(COVER CONTINUED)
On or before the date the Certificates are issued, the Depositor will
acquire the Mortgage Loans from an affiliate thereof and will transfer the
Mortgage Loans, without recourse, to LaSalle National Bank, as trustee of the
Trust Fund (the "Trustee"), in exchange for the Certificates. As of February 1,
1998 (the "Cut-off Date"), the Mortgage Loans had an aggregate principal balance
(the "Initial Pool Balance") of approximately $1,727,817,629, after application
of all payments of principal due on or before such date, whether or not
received. GMAC Commercial Mortgage Corporation as master servicer (in such
capacity, the "Master Servicer") and as special servicer (in such capacity, the
"Special Servicer"), directly or through one or more subservicers, will service
the Mortgage Loans. The Offered Certificates bear the class designations and
have the characteristics set forth in the table on the preceding page.
Simultaneously with the issuance of the Offered Certificates, the Private
Certificates (as defined herein) will be issued. Only the Offered Certificates
are offered hereby.
As and to the extent described herein, the Private Certificates will be
subordinate to the Offered Certificates; the Class B, Class C, Class D and Class
E Certificates will be subordinate to the Class A-1, Class A-2, Class A-3 and
Class IO Certificates; the Class C, Class D and Class E Certificates will be
subordinate to the Class B Certificates; the Class D and Class E Certificates
will be subordinate to the Class C Certificates; and the Class E Certificates
will be subordinate to the Class D Certificates. Distributions of interest on
and principal of the Certificates will be made, to the extent of available
funds, on the 18th day of each month or, if any such 18th day is not a business
day, then on the next succeeding business day, commencing in March 1998 (each, a
"Distribution Date"). As described herein, distributions allocable to interest
in respect of each Class of Offered Certificates (other than the Class IO
Certificates) will be made on each Distribution Date based on the pass-through
rate (the "Pass-Through Rate") applicable to such Class and the principal amount
(the "Certificate Balance") of such Class outstanding immediately prior to such
Distribution Date. The Class IO Certificates will have fourteen components
(collectively, the "Class IO Components"), each with a designation and a
notional amount that corresponds with the designation and Certificate Balance of
a Class of Sequential Pay Certificates (as defined herein). As described herein,
distributions allocable to interest in respect of the Class IO Certificates will
be made on each Distribution Date in an amount equal to the aggregate amount of
interest which has accrued on the notional amount of each of the Class IO
Components. Interest will accrue on the notional amount of each Class IO
Component based on the Pass-Through Rate of such Class IO Component. The
Pass-Through Rate applicable to each Class IO Component will be equal to the
Weighted Average Net Mortgage Rate (as defined herein) minus the Pass-Through
Rate applicable to the corresponding Class of Sequential Pay Certificates. As
described herein, distributions allocable to principal of the Offered
Certificates will be made sequentially to the Class A-1, Class A-2, Class A-3,
Class B, Class C, Class D and Class E Certificates, in that order, until the
respective Classes of Certificates are retired. The Class IO Certificates will
not have a Certificate Balance, nor will they entitle the holders thereof to
distributions of principal. The holders of the Certificates may also receive
portions of any Prepayment Premiums and Yield Maintenance Charges (each as
defined herein) to the extent described herein. The holders of Sequential Pay
Certificates will also be entitled to receive, PRO RATA (based on their
respective initial Certificate Balances), any Additional Interest (as defined
herein) collected on the ARD Loans (as defined herein), net of any Workout Fees
and Liquidation Fees (each as defined herein) payable therefrom. There is no
assurance that any Additional Interest will be collected on the ARD Loans. See
"Description of the Certificates--Distributions" herein.
The yield to maturity on each Class of Offered Certificates will depend on,
among other things, the rate and timing of principal payments (including by
reason of prepayments, defaults and liquidations) on the Mortgage Loans. THE
YIELD TO MATURITY ON THE CLASS IO CERTIFICATES WILL BE HIGHLY SENSITIVE TO THE
RATE AND TIMING OF PRINCIPAL
S-2
<PAGE>
PAYMENTS (INCLUDING BY REASON OF PREPAYMENTS, DEFAULTS AND LIQUIDATIONS) ON THE
MORTGAGE LOANS AND INVESTORS IN THE CLASS IO CERTIFICATES SHOULD FULLY CONSIDER
THE ASSOCIATED RISKS, INCLUDING THE RISK THAT A RAPID RATE OF PREPAYMENT OF THE
MORTGAGE LOANS COULD RESULT IN THE FAILURE OF SUCH INVESTORS TO FULLY RECOUP
THEIR INITIAL INVESTMENTS. The allocation to any Class of Offered Certificates
of any Prepayment Premium or Yield Maintenance Charge may be insufficient to
offset fully the adverse effects on the anticipated yield to maturity resulting
from the corresponding principal prepayment. Any delay in collection of a
Balloon Payment (as defined herein) due at the maturity of a Mortgage Loan will
likely extend the weighted average life of the Class or Classes of Offered
Certificates entitled to distributions in respect of principal as of the date
such Balloon Payment was due. See "Description of the Certificates--Certificate
Balances and Notional Amounts" and "--Distributions," "Yield and Maturity
Considerations" and "Servicing of the Mortgage Loans--Modifications, Waivers and
Amendments" herein, and "Yield and Prepayment Considerations" and "Risk
Factors--Yield and Prepayment Considerations" in the Prospectus.
As described herein, three separate "real estate mortgage investment
conduit" ("REMIC") elections will be made with respect to the Trust Fund for
federal income tax purposes (the REMICs formed thereby, "REMIC I", "REMIC II"
and "REMIC III", respectively). The Offered Certificates will evidence "regular
interests" in the related REMIC. See "Certain Federal Income Tax Consequences"
herein and "Federal Income Tax Considerations" in the Prospectus.
There is currently no secondary market for the Offered Certificates. The
Underwriter currently intends to make a secondary market in the Offered
Certificates, but has no obligation to do so. See "Risk Factors--The
Certificates-- Limited Liquidity" herein.
---------------------
PROCEEDS OF THE ASSETS IN THE TRUST FUND WILL BE THE SOLE SOURCE OF PAYMENTS
ON THE OFFERED CERTIFICATES. THE OFFERED CERTIFICATES WILL NOT REPRESENT AN
INTEREST IN OR OBLIGATION OF THE DEPOSITOR, THE UNDERWRITER, THE MASTER
SERVICER, THE SPECIAL SERVICER, THE TRUSTEE, THE FISCAL AGENT OR ANY OF THEIR
RESPECTIVE AFFILIATES. NEITHER THE OFFERED CERTIFICATES NOR THE MORTGAGE LOANS
WILL BE INSURED OR GUARANTEED BY THE UNITED STATES GOVERNMENT, THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.
THE PROSPECTUS THAT ACCOMPANIES THIS PROSPECTUS SUPPLEMENT CONTAINS
IMPORTANT INFORMATION REGARDING THIS OFFERING THAT IS NOT CONTAINED HEREIN, AND
PROSPECTIVE INVESTORS ARE URGED TO READ BOTH THE PROSPECTUS AND THIS PROSPECTUS
SUPPLEMENT IN FULL TO OBTAIN MATERIAL INFORMATION CONCERNING THE OFFERED
CERTIFICATES. SALES OF THE OFFERED CERTIFICATES MAY NOT BE CONSUMMATED UNLESS
THE PURCHASER HAS RECEIVED A COPY OF BOTH THE PROSPECTUS AND THIS PROSPECTUS
SUPPLEMENT.
THROUGH AND INCLUDING JUNE 9, 1998, ALL DEALERS EFFECTING TRANSACTIONS IN
THE OFFERED CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY
BE REQUIRED TO DELIVER A PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS DELIVERY
REQUIREMENT IS IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A PROSPECTUS
SUPPLEMENT AND PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR
UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
S-3
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
SUMMARY OF PROSPECTUS SUPPLEMENT.......................................................................... S-6
RISK FACTORS.............................................................................................. S-29
The Certificates........................................................................................ S-29
The Mortgage Loans...................................................................................... S-31
DESCRIPTION OF THE MORTGAGE POOL.......................................................................... S-38
General................................................................................................. S-38
Mortgage Loan History................................................................................... S-39
Certain Terms and Conditions of the Mortgage Loans...................................................... S-39
Assessments of Property Condition....................................................................... S-41
Additional Mortgage Loan Information.................................................................... S-42
The Mortgage Loan Seller................................................................................ S-57
Assignment of the Mortgage Loans; Repurchases........................................................... S-57
Representations and Warranties; Repurchases............................................................. S-58
Changes in Mortgage Pool Characteristics................................................................ S-60
SERVICING OF THE MORTGAGE LOANS........................................................................... S-61
General................................................................................................. S-61
The Master Servicer and the Special Servicer............................................................ S-62
Servicing and Other Compensation and Payment of Expenses................................................ S-63
Modifications, Waivers and Amendments................................................................... S-65
Custodial Account....................................................................................... S-66
The Controlling Class Representative.................................................................... S-69
Realization Upon Defaulted Mortgage Loans; Sale of Defaulted
Mortgage Loans and REO Properties..................................................................... S-70
REO Properties.......................................................................................... S-72
Replacement of the Special Servicer..................................................................... S-73
Inspections; Collection of Operating Information........................................................ S-74
Due-on-Sale and Due-on-Encumbrance Provisions........................................................... S-74
Maintenance of Insurance................................................................................ S-75
Evidence as to Compliance............................................................................... S-75
Certain Matters Regarding the Depositor, the Master Servicer and the Special Servicer................... S-76
Events of Default....................................................................................... S-77
Rights Upon Event of Default............................................................................ S-78
DESCRIPTION OF THE CERTIFICATES........................................................................... S-79
General................................................................................................. S-79
Registration and Denominations.......................................................................... S-79
Certificate Balances and Notional Amounts............................................................... S-80
Pass-Through Rates...................................................................................... S-81
Collection Account...................................................................................... S-81
Distributions........................................................................................... S-82
Subordination; Allocation of Losses and Certain Expenses................................................ S-89
P&I Advances............................................................................................ S-92
Appraisal Reductions.................................................................................... S-93
Reports to Certificateholders; Available Information.................................................... S-94
Assumed Final Distribution Date; Rated Final Distribution Date.......................................... S-99
Voting Rights........................................................................................... S-100
</TABLE>
S-4
<PAGE>
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
Termination............................................................................................. S-100
The Trustee............................................................................................. S-101
The Fiscal Agent........................................................................................ S-101
YIELD AND MATURITY CONSIDERATIONS......................................................................... S-102
Yield Considerations.................................................................................... S-102
Price/Yield Tables...................................................................................... S-105
Weighted Average Life................................................................................... S-107
USE OF PROCEEDS........................................................................................... S-111
CERTAIN FEDERAL INCOME TAX CONSEQUENCES................................................................... S-111
General................................................................................................. S-111
Discount and Premium; Prepayment Premiums and Yield Maintenance Charges; Additional Interest............ S-111
Characterization of Investments in Offered Certificates................................................. S-112
Possible Taxes on Income from Foreclosure Property and Other Taxes...................................... S-113
Reporting and other Administrative Matters.............................................................. S-114
ERISA CONSIDERATIONS...................................................................................... S-114
LEGAL INVESTMENT.......................................................................................... S-117
METHOD OF DISTRIBUTION.................................................................................... S-118
LEGAL MATTERS............................................................................................. S-119
RATINGS................................................................................................... S-119
INDEX OF PRINCIPAL DEFINITIONS............................................................................ S-120
ANNEX A--CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS.................................................... A-1
ANNEX B--TERM SHEET....................................................................................... B-1
ANNEX C--FORM OF DISTRIBUTION DATE STATEMENT.............................................................. C-1
ANNEX D--FORM OF DELINQUENT LOAN STATUS REPORT............................................................ D-1
ANNEX E--FORM OF HISTORICAL LOAN MODIFICATION REPORT...................................................... E-1
ANNEX F--FORM OF HISTORICAL LOSS ESTIMATE REPORT.......................................................... F-1
ANNEX G--FORM OF REO STATUS REPORT........................................................................ G-1
ANNEX H--FORM OF WATCH LIST REPORT........................................................................ H-1
ANNEX I--FORM OF OPERATING STATEMENT ANALYSIS............................................................. I-1
ANNEX J--FORM OF NOI ADJUSTMENT WORKSHEET................................................................. J-1
ANNEX K--FORM OF COMPARATIVE FINANCIAL STATUS REPORT...................................................... K-1
</TABLE>
S-5
<PAGE>
SUMMARY OF PROSPECTUS SUPPLEMENT
THE FOLLOWING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE
DETAILED INFORMATION APPEARING ELSEWHERE IN THIS PROSPECTUS SUPPLEMENT AND IN
THE ACCOMPANYING PROSPECTUS. CERTAIN CAPITALIZED TERMS USED IN THIS SUMMARY MAY
BE DEFINED ELSEWHERE IN THIS PROSPECTUS SUPPLEMENT OR IN THE PROSPECTUS. AN
"INDEX OF PRINCIPAL DEFINITIONS" IS INCLUDED AT THE END OF THIS PROSPECTUS
SUPPLEMENT AND A "GLOSSARY" IS INCLUDED AT THE END OF THE PROSPECTUS. TERMS THAT
ARE USED BUT NOT DEFINED IN THIS PROSPECTUS SUPPLEMENT HAVE THE MEANINGS
SPECIFIED IN THE PROSPECTUS. ALL NUMERICAL INFORMATION PROVIDED HEREIN WITH
RESPECT TO THE MORTGAGE LOANS IS PROVIDED ON AN APPROXIMATE BASIS.
<TABLE>
<CAPTION>
INITIAL PERCENT OF WEIGHTED
MOODY'S/DCR CERTIFICATE INITIAL POOL CREDIT PASS-THROUGH AVERAGE LIFE
CLASS RATING BALANCE(1) BALANCE(1) SUPPORT (2) DESCRIPTION RATE (YEARS)(3)
- - ----------- ------------- -------------- ------------- ----------- ------------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 Aaa/AAA $ 267,810,000 15.50% 29.50% Fixed Coupon 6.330% 4.422
Class A-2 Aaa/AAA $ 308,000,000 17.83% 29.50% Fixed Coupon 6.400% 7.753
Class A-3 Aaa/AAA $ 642,291,000 37.17% 29.50% Fixed Coupon 6.480% 9.702
Class B Aa2/AA $ 86,390,000 5.00% 24.50% Fixed Coupon 6.590% 9.853
Class C A2/A $ 86,390,000 5.00% 19.50% Fixed Coupon 6.680% 9.860
Class D Baa2/BBB $ 90,710,000 5.25% 14.25% Fixed Coupon 6.980% 11.881
Class E Baa3/BBB- $ 34,556,000 2.00% 12.25% Fixed Coupon 7.000% 14.482
Class IO Aaa/AAA N/A(4) N/A N/A Variable IO Strip (5) N/A
Class F (6) $ 51,834,000 3.00% 9.25% Fixed Coupon 6.300% 14.765
Class G (6) $ 34,556,000 2.00% 7.25% Fixed Coupon 6.300% 14.853
Class H (6) $ 17,278,000 1.00% 6.25% Fixed Coupon 6.300% 14.853
Class J (6) $ 43,195,000 2.50% 3.75% Fixed Coupon 6.300% 15.301
Class K (6) $ 17,278,000 1.00% 2.75% Fixed Coupon 6.300% 17.714
Class L (6) $ 17,278,000 1.00% 1.75% Fixed Coupon 6.300% 19.221
Class M (6) $ 30,251,629 1.75% -- Fixed Coupon 6.300% 23.321
<CAPTION>
CASH FLOW
OR PRINCIPAL
CLASS WINDOW(3)
- - ----------- -------------
<S> <C>
Class A-1 03/98-11/04
Class A-2 11/04-08/07
Class A-3 08/07-01/08
Class B 01/08-01/08
Class C 01/08-02/08
Class D 02/08-04/12
Class E 04/12-11/12
Class IO 03/98-02/28
Class F 11/12-01/13
Class G 01/13-01/13
Class H 01/13-01/13
Class J 01/13-01/15
Class K 01/15-09/16
Class L 09/16-11/17
Class M 11/17-02/28
</TABLE>
- - ------------------------
(1) Subject to a permitted variance of plus or minus 5.0%.
(2) Represents initial aggregate Certificate Balance of all Classes of
Sequential Pay Certificates that are subordinate to the indicated Class
(expressed as a percentage of the Initial Pool Balance).
(3) Based on 0% CPR (except for the ARD Loans (as defined herein), which are
assumed to pay in full on their respective Anticipated Repayment Dates (also
as defined herein)) and the other assumptions set forth under "Yield and
Maturity Considerations--Weighted Average Life" herein.
(4) The Class IO Certificates will not have a specified Certificate Balance nor
will they entitle the holders thereof to receive distributions of principal.
See "--Description of the Certificates--Certificate Balances and Notional
Amounts" herein.
(5) Holders of the Class IO Certificates will be entitled to receive
distributions of interest in an amount equal to the aggregate interest
accrued on the notional amount of each of the Class IO Components, as
described herein. The Pass-Through Rate for each Class IO Component is
variable and, in general, equals the Weighted Average Net Mortgage Rate (as
defined herein) from time to time minus the Pass-Through Rate for the
corresponding Class of Sequential Pay Certificates. See "--Description of
the Certificates--Pass-Through Rates" herein.
(6) Not offered hereby. Accordingly, any information herein regarding the terms
of such Class of Certificates is provided solely because of its potential
relevance to a prospective purchaser of an Offered Certificate.
S-6
<PAGE>
<TABLE>
<S> <C>
TITLE OF CERTIFICATES.............. LB Commercial Mortgage Trust, Commercial Mortgage
Pass- Through Certificates, Series 1998-C1 (the
"Certificates"), to be issued in 18 classes (each, a
"Class") to be designated as: (i) the Class A-1, Class
A-2 and Class A-3 Certificates (collectively the
"Class A Certificates"); (ii) the Class B, Class C,
Class D, Class E, Class F, Class G, Class H, Class J,
Class K, Class L and Class M Certificates
(collectively with the Class A Certificates, the
"Sequential Pay Certificates"); (iii) the Class IO
Certificates (collectively with the Sequential Pay
Certificates, the "Regular Interest Certificates");
and (iv) the Class R-I, Class R-II and Class R-III
Certificates (collectively, the "Residual Interest
Certificates"). Only the Class A-1, Class A-2, Class
A-3, Class B, Class C, Class D, Class E and Class IO
Certificates (collectively, the "Offered
Certificates") are offered hereby. The Class F, Class
G, Class H, Class J, Class K, Class L, Class M and
Residual Interest Certificates (collectively, the
"Private Certificates") have not been registered under
the Securities Act of 1933, as amended (the
"Securities Act"), and are not offered hereby. The
table on the preceding page sets forth the indicated
characteristics of the Certificates.
DEPOSITOR.......................... Structured Asset Securities Corporation, a Delaware
corporation. The Depositor is a wholly owned
subsidiary of Lehman Commercial Paper Inc., which, in
turn, is a wholly owned subsidiary of the Underwriter.
Neither the Depositor nor any of its affiliates has
insured or guaranteed the Offered Certificates. See
"The Issuer" in the Prospectus.
MASTER SERVICER AND SPECIAL
SERVICER......................... GMAC Commercial Mortgage Corporation ("GMACCM"), a
California corporation. In its capacity as Master
Servicer, GMACCM will be responsible for the servicing
of all the Mortgage Loans that, in general, are not in
default or in imminent danger thereof, and in its
capacity as Special Servicer, will be responsible for
performing certain servicing functions with respect to
the Mortgage Loans that, in general, are in default or
as to which default is imminent, for administering any
REO Property (as defined herein). The Controlling
Class (as defined herein) of Sequential Pay
Certificates will have the right, subject to certain
conditions described herein, to replace the Special
Servicer and to select a representative (the "Con-
trolling Class Representative") from whom the Special
Servicer will seek advice and approval and take
direction under certain circumstances, as described
herein. See "Servicing of the Mortgage Loans--The
Master Servicer and the Special Servicer", "--The
Controlling Class Representative" and "--Servicing and
Other Compensation and Payment of Expenses" herein.
TRUSTEE............................ LaSalle National Bank, a nationally chartered bank and
a wholly owned subsidiary of the Fiscal Agent.
FISCAL AGENT....................... ABN AMRO Bank N.V., a Netherlands banking corporation
and the corporate parent of the Trustee.
</TABLE>
S-7
<PAGE>
<TABLE>
<S> <C>
MORTGAGE LOAN SELLER............... An affiliate of the Underwriter and the Depositor. See
"Description of the Mortgage Pool--The Mortgage Loan
Seller" herein.
CUT-OFF DATE....................... February 1, 1998.
CLOSING DATE....................... On or about March 11, 1998.
RECORD DATE........................ With respect to any Distribution Date other than the
initial Distribution Date, the last business day of
the month immediately preceding the month in which
such Distribution Date occurs, and with respect to the
initial Distribution Date, the Closing Date.
DETERMINATION DATE................. The 10th day of each month, or if such 10th day is not
a business day, the next preceding business day.
DISTRIBUTION DATE.................. The 18th day of each month, or if such 18th day is not
a business day, the next succeeding business day,
commencing in March, 1998.
COLLECTION PERIOD.................. With respect to any Distribution Date, the period
commencing on the day immediately following the
Determination Date in the calendar month preceding the
month in which such Distribution Date occurs (or, in
the case of the initial Distribution Date, commencing
immediately following the Cut-off Date) and ending on
and including the Determination Date in the calendar
month in which such Distribution Date occurs.
INTEREST ACCRUAL PERIOD............ With respect to each Distribution Date, the calendar
month immediately preceding the month in which such
Distribution Date occurs.
REGISTRATION OF THE OFFERED
CERTIFICATES..................... The Offered Certificates of each Class will initially
be represented by one or more global Certificates
registered in the name of Cede & Co., as nominee of
The Depository Trust Company ("DTC"). No person
acquiring an interest in any Offered Certificate (any
such person, a "Certificate Owner") will be entitled
to receive such Certificate in fully registered,
certificated form (a "Definitive Offered
Certificate"), except under the limited circumstances
described under "Description of the
Certificates--Registration and Denominations" herein
and "Description of the Securities--Book-Entry
Registration" in the Prospectus. Instead, DTC will
effect payments and transfers in respect of the
Offered Certificates by means of its electronic
recordkeeping services, acting through certain par-
ticipating organizations ("Participants"). This may
result in certain delays in receipt of payments by an
investor and may restrict an investor's ability to
pledge its Certificates. Unless and until Definitive
Offered Certificates of any Class are issued to the
related Certificate Owners, all references herein to
the rights of holders of such Class of Offered
Certificates are to the rights of those Certificate
Owners as such rights may be
</TABLE>
S-8
<PAGE>
<TABLE>
<S> <C>
exercised through DTC and its participants, except as
otherwise specified herein.
DENOMINATIONS...................... The Offered Certificates of each Class will be issued,
maintained and transferred on the book-entry records
of DTC and its Participants in denominations of
$10,000 actual principal amount (or $100,000 notional
amount with respect to the Class IO Certificates), and
in integral multiples of $1 in excess thereof.
THE MORTGAGE POOL.................. The Mortgage Pool will consist of 259 conventional,
monthly pay Mortgage Loans. The Mortgage Loans have an
aggregate Cut-off Date Balance of $1,727,817,629 (the
"Initial Pool Balance"), subject to a variance of plus
or minus 5.0%. The "Cut-off Date Balance" of each
Mortgage Loan will equal the unpaid principal balance
thereof as of the Cut-off Date, after reduction for
all payments of principal due on or before such date,
whether or not received. For purposes of the numerical
information provided herein, each of the Mortgage
Loans is deemed to be secured by one Mortgaged
Property, whether or not such Mortgaged Property is
comprised of more than one parcel.
Generally, all of the Mortgage Loans are non-recourse
obligations of the related borrowers. No Mortgage Loan
will be insured or guaranteed by any governmental
entity or private insurer.
Each of the Mortgage Loans is secured by a first
mortgage lien on the related borrower's fee simple
estate (or, with respect to 12 Mortgage Loans,
representing 4.4% of the Initial Pool Balance, on the
related borrower's leasehold estate) in income
producing real property (each, a "Mortgaged
Property").
Set forth below are the number of Mortgage Loans, and
the approximate percentage of the Initial Pool Balance
represented by such Mortgage Loans, that are secured
by Mortgaged Properties operated for each indicated
purpose:
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE OF
MORTGAGE INITIAL POOL
PROPERTY TYPE LOANS BALANCE
- - ------------------------------------------ ------------- ---------------
<S> <C> <C>
Retail.................................... 103 46.0%
Multifamily............................... 74 24.6%
Office.................................... 49 15.0%
Hospitality............................... 9 6.5%
Industrial/Warehouse...................... 16 5.7%
Health Care............................... 3 1.3%
Self Storage.............................. 3 0.6%
Mobile Home Park.......................... 1 0.2%
Parking Garage............................ 1 0.1%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
The Mortgaged Properties are located throughout 36
states. Set forth below are the number of Mortgage
Loans, and the
</TABLE>
S-9
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<TABLE>
<S> <C>
approximate percentage of the Initial Pool Balance
represented by such Mortgage Loans, that are secured
by Mortgage Properties located in the states with
concentrations of Mortgage Loans above 5.0% (based on
Cut-off Date Balance):
</TABLE>
NUMBER OF PERCENTAGE OF
MORTGAGE INITIAL POOL
STATE LOANS BALANCE
- - ----------------------------------- --------- -------------
Florida............................ 31 9.7%
Texas.............................. 36 9.6%
New York........................... 19 8.7%
California......................... 21 8.2%
Maryland........................... 7 5.9%
Pennsylvania....................... 9 5.9%
<TABLE>
<CAPTION>
All of the Mortgage Loans bear interest at annualized
rates ("Mortgage Rates") that will remain fixed for
their respective remaining loan terms, except that, as
described below, the ARD Loans will accrue interest
after their respective Anticipated Repayment Dates at
a rate that is generally equal to the greater of (i)
two or more percentage points higher than their
respective Mortgage Rates and (ii) two or more
percentage points higher than the then current
applicable treasury rate. As used herein, the term
"Mortgage Rate" does not include the incremental
increase in the rate at which interest may accrue on
any ARD Loan after such date. No Mortgage Loan permits
negative amortization or (except for the ARD Loans)
the deferral of accrued interest. Scheduled payments
of principal and/or interest on the Mortgage Loans
("Monthly Payments") are due monthly on the first day
of each month. See "Description of the Mortgage
Pool--Certain Terms and Conditions of the Mortgage
Loans--Due Dates" and "--Mortgage Rates; Calculations
of Interest" herein.
<S> <C>
One hundred seventy-five (175) of the Mortgage Loans
(the "Balloon Loans"), representing 61.3% of the
Initial Pool Balance, provide for Monthly Payments
based on amortization schedules significantly longer
than their respective remaining terms to maturity. As
a result, such Mortgage Loans will have substantial
principal amounts due and payable (each such amount,
together with the corresponding payment of interest, a
"Balloon Payment") on their respective scheduled
maturity dates, unless prepaid prior thereto.
Sixty-one (61) of the Mortgage Loans, representing
30.9% of the Initial Pool Balance, are ARD Loans, as
described herein. See "Description of the Mortgage
Pool--Certain Terms and Conditions of the Mortgage
Loans--Hyperamortization" and "--Amortization of
Principal" herein. The remaining 23 Mortgage Loans,
representing 7.8% of the Initial Pool Balance, are
self-amortizing. See "Risk Factors--The Mortgage
Loans--Balloon Payments and Anticipated Repayment
Dates" herein.
</TABLE>
S-10
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<TABLE>
<S> <C>
An "ARD Loan" is a Mortgage Loan that provides that if
it is not paid in full as of a date specified in the
related Mortgage Note (the "Anticipated Repayment
Date"), then (i) interest will accrue thereon at a per
annum rate (the "Revised Rate") that is in excess of
the related Mortgage Rate and (ii) the related
borrower will be required to make payments thereon
each month in an amount that is equal to the greater
of the Monthly Payment and certain net cash flow
generated by the related Mortgaged Property. If the
net cash flow referred to in clause (ii) of the
preceding sentence exceeds the Monthly Payment, the
excess would be applied to repay the particular ARD
Loan.
In general, an ARD Loan will permit the related
borrower to prepay the related Mortgage Loan without
payment of a Prepayment Premium or a Yield Maintenance
Charge beginning three to six months prior to the
related Anticipated Repayment Date. The Anticipated
Repayment Date for any such ARD Loan is set forth in
Annex A. The interest accrued at the excess of the
related Revised Rate over the related Mortgage Rate
(such interest, the "Additional Interest"; and such
difference in rates, the "Additional Interest Rate")
will be deferred until the principal of such Mortgage
Loan is paid in full and, in some cases, may itself
accrue interest at the Revised Rate. All of the ARD
Loans for which a Lockbox Account (as defined herein)
has not been established on or before the Closing Date
provide that a Lockbox Account must be established on
or prior to the applicable Anticipated Repayment Date.
See "Description of the Mortgage Pool--Certain Terms
and Conditions of the Mortgage Loans--ARD Loans"
herein.
As of the Cut-off Date, all of the Mortgage Loans
restrict or prohibit voluntary principal prepayments
in one of the following ways: (i) 258 Mortgage Loans,
representing 98.9% of the Initial Pool Balance,
currently prohibit voluntary prepayments of principal
for a period (a "Lockout Period") ending on a date
specified in the related Mortgage Note (as defined
herein) and, in general, thereafter impose a Yield
Maintenance Charge and/or Prepayment Premium (each as
defined herein) for most of their respective remaining
terms to maturity and, in some cases, with respect to
Defeasance Loans (as defined below), require the
pledging of Defeasance Collateral (also as defined
below); and (ii) one Mortgage Loan, representing 1.1%
of the Initial Pool Balance, currently permits
voluntary principal prepayments provided that the
prepayment is accompanied by a Yield Maintenance
Charge or by a Prepayment Premium for most of their
respective remaining terms to maturity. With respect
to the 69 Mortgage Loans which impose Yield Mainte-
nance Charges (whether currently or following a
Lockout Period), 68 of such Mortgage Loans
(representing 22.2% of the Initial Pool Balance)
provide for the calculation of the Yield
</TABLE>
S-11
<PAGE>
<TABLE>
<S> <C>
Maintenance Charge using a discount rate equal to the
applicable Treasury Rate (as set forth in the related
Mortgage Note), and one of such Mortgage Loans
(representing 0.7% of the Initial Pool Balance)
provides for the calculation of the Yield Maintenance
Charge using a discount rate equal to the applicable
Treasury Rate plus 0.35%. See "Description of the
Mortgage Pool--Certain Terms and Conditions of the
Mortgage Loans--Prepayment Provisions" and
"--Additional Mortgage Loan Information" herein. The
ability of the Master Servicer or the Special Servicer
to waive or modify the terms of any Mortgage Loan
relating to the payment of a Prepayment Premium or
Yield Maintenance Charge is limited as described
herein. See "Servicing of the Mortgage
Loans--Modifications, Waivers and Amendments" herein.
Neither the Depositor nor the Underwriter makes any
representation as to the enforceability of the
provision of any Mortgage Note requiring the payment
of a Prepayment Premium or Yield Maintenance Charge,
or of the collectability of any Prepayment Premium or
Yield Maintenance Charge.
One hundred seventy-eight (178) of the Mortgage Loans
(the "Defeasance Loans"), representing 71.7% of the
Initial Pool Balance, provide that the holder of the
Mortgage, following notice from the borrower that the
borrower intends to prepay the Mortgage Loan as
permitted by the related Mortgage Note, may require
the borrower, in lieu of prepayment, to pledge to such
holder "Defeasance Collateral" and thereupon obtain a
release of the Mortgaged Property from the lien of the
related Mortgage. In general, "Defeasance Collateral"
is required to consist of direct, non-callable United
States Treasury obligations that provide for payments
prior, but as close as possible, to all successive Due
Dates (including the scheduled maturity date), with
each such payment being equal to or greater than (with
any excess to be returned to the borrower) than the
Monthly Payment (including, in the case of the sched-
uled maturity date, any Balloon Payment), due on such
date. The Pooling and Servicing Agreement will require
the Master Servicer or the Special Servicer to require
each borrower under a Defeasance Loan that proposes to
prepay its Mortgage Loan to pledge instead Defeasance
Collateral, but in each case subject to certain
conditions, including confirmation from each Rating
Agency that acceptance of a pledge of the Defeasance
Collateral in lieu of a full prepayment will not
result in a qualification, downgrade or withdrawal of
the rating then assigned by it to any Class of
Certificates.
All of the Mortgage Loans were originated in 1997 or
1998.
Set forth below is certain information regarding the
Mortgage Loans and the Mortgaged Properties as of the
Cut-off Date (all weighted averages set forth below
are based on the Cut-off
</TABLE>
S-12
<PAGE>
<TABLE>
<S> <C>
Date Balances of the respective Mortgage Loans). Such
information is more fully described, and additional
information regarding the Mortgage Loans and the
Mortgaged Properties is set forth, in the tables under
"Description of the Mortgage Pool--Additional Mortgage
Loan Information" herein and in Annex A hereto:
</TABLE>
<TABLE>
<S> <C>
Minimum Cut-off Date Balance.............. $613,738
Maximum Cut-off Date Balance.............. $62,467,513
Average Cut-off Date Balance.............. $6,671,111
Minimum Mortgage Rate..................... 6.970%
Maximum Mortgage Rate..................... 9.170%
Weighted Average Mortgage Rate............ 7.603%
Minimum Remaining Term to Maturity
(months)................................ 58
Maximum Remaining Term to Maturity
(months)................................ 360
Weighted Average Remaining Term to Matur-
ity (months)............................ 131
Minimum Remaining Amortization Term
(months)................................ 189
Maximum Remaining Amortization Term
(months)................................ 360
Weighted Average Remaining Amortization
Term (months)........................... 338
Minimum Cut-off Date DSC Ratio............ 1.19x
Maximum Cut-off Date DSC Ratio............ 2.13x
Weighted Average Cut-off Date DSC Ratio... 1.35x
Minimum Cut-off Date LTV Ratio............ 28.0%
Maximum Cut-off Date LTV Ratio............ 80.0%
Weighted Average Cut-off Date LTV Ratio... 73.0%
Minimum Maturity Date LTV Ratio(1)........ 8.9%
Maximum Maturity Date LTV Ratio(1)........ 75.2%
Weighted Average Maturity Date LTV
Ratio(1)................................ 62.2%
</TABLE>
--------------------------------------------------------------
(1) Applies only to Balloon Loans.
<TABLE>
<S> <C>
The Mortgage Loans will be acquired by the Depositor
from the Mortgage Loan Seller, which either originated
each such Mortgage Loan or acquired it in connection
with its commercial and multifamily mortgage loan
conduit program. See "Description of the Mortgage
Pool" herein.
On or prior to the Closing Date, the Depositor will
cause the Mortgage Loan Seller to assign the Mortgage
Loans, without recourse (except as set forth in the
next sentence), to the Trustee for the benefit of the
holders of the Certificates (the
"Certificateholders"). In connection with such
assignment, the Mortgage Loan Seller will make certain
representations and warranties regarding the
characteristics of its Mortgage Loans
</TABLE>
S-13
<PAGE>
<TABLE>
<S> <C>
and, as more particularly described herein, will agree
to cure any material breach thereof or, in the absence
of such a cure, to repurchase the affected Mortgage
Loan. See "Description of the Mortgage
Pool--Representations and Warranties; Repurchases"
herein.
DESCRIPTION OF THE CERTIFICATES.... The Certificates will be issued pursuant to a Pooling
and Servicing Agreement, to be dated as of February 1,
1998, among the Depositor, the Master Servicer, the
Special Servicer, the Trustee and the Fiscal Agent
(the "Pooling and Servicing Agreement"), and will
represent in the aggregate the entire beneficial
ownership interest in a trust fund (the "Trust Fund")
consisting of the Mortgage Pool and certain related
assets. For purposes of the Prospectus, the Pooling
and Servicing Agreement constitutes, collectively, a
"Trust Agreement", a "Master Servicing Agreement" and
a "Special Servicing Agreement".
A. CERTIFICATE BALANCES AND
NOTIONAL AMOUNTS................. Upon initial issuance, and in each case subject to a
permitted variance of plus or minus 5.0%, the
respective Classes of Sequential Pay Certificates will
have the Certificate Balances set forth in the table
at the beginning of this Summary.
The "Certificate Balance" of any Class of Sequential
Pay Certificates outstanding at any time represents
the maximum amount that the holders thereof are
entitled to receive as distributions allocable to
principal from the cash flow on the Mortgage Loans and
other assets in the Trust Fund. As more particularly
described herein, the Certificate Balance of a Class
of Sequential Pay Certificates will be permanently
reduced on each Distribution Date by any distributions
of principal actually made on such Class of
Certificates on such Distribution Date, and further
permanently reduced by any losses (as more
particularly described herein, "Realized Losses") on
the Mortgage Loans and certain Trust Fund expenses (as
more particularly described herein, "Additional Trust
Fund Expenses") actually allocated to such Class of
Certificates on such Distribution Date.
The Class IO Certificates will not have a Certificate
Balance, but will represent the right to receive
distributions of interest in an amount equal to the
aggregate interest accrued on the notional amount of
each of the Class IO Components, as described herein.
The Class IO Certificates will have fourteen
components (each, a "Class IO Component"), each corre-
sponding to a different Class of Sequential Pay
Certificates. Each Class IO Component will have the
same letter and/or numerical designation as the
corresponding Class of Sequential Pay Certificates.
The notional amount of each Class IO Component will
equal the Certificate Balance of the corresponding
Class of Sequential Pay Certificates outstanding from
time to time. On the Closing Date, the aggregate of
the notional
</TABLE>
S-14
<PAGE>
<TABLE>
<S> <C>
amounts of all the Class IO Components will equal the
Initial Pool Balance. References herein to the
"notional amount" of the Class IO Certificates shall
mean the aggregate of the notional amounts of all the
Class IO Components. See "Description of the
Certificates--Certificate Balances and Notional
Amounts" herein.
The Residual Interest Certificates will not have
Certificate Balances or notional amounts, but will
represent the right to receive certain limited amounts
not otherwise payable on the Regular Interest
Certificates.
B. PASS-THROUGH RATES.............. The Pass-Through Rate applicable to each Class of
Sequential Pay Certificates for each Distribution Date
is fixed at the respective rate per annum set forth
with respect to such Class in the table at the
beginning of this Summary. The Pass-Through Rate
applicable to each Class IO Component for any
Distribution Date will be equal to the Weighted
Average Net Mortgage Rate for such Distribution Date
minus the fixed Pass-Through Rate applicable to the
corresponding Class of Sequential Pay Certificates.
The Residual Interest Certificates will not bear
interest.
The "Weighted Average Net Mortgage Rate" for each
Distribution Date is the weighted average of the Net
Mortgage Rates for the Mortgage Loans as of the
commencement of the related Collection Period,
weighted on the basis of their respective Stated
Principal Balances outstanding immediately prior to
such Distribution Date. The "Net Mortgage Rate" for
each Mortgage Loan will generally equal (x) the
Mortgage Rate in effect for such Mortgage Loan as of
the Cut-off Date, minus (y) the applicable
Administrative Cost Rate (as defined herein) for such
Mortgage Loan; provided that if any Mortgage Loan does
not accrue interest on the basis of a 360-day year
consisting of twelve 30-day months (which is the basis
on which interest accrues in respect of the Regular
Interest Certificates), then, solely for the purposes
of calculating the Weighted Average Net Mortgage Rate,
the Mortgage Rate referred to in clause (x) will, to
the extent appropriate, be adjusted from accrual
period to accrual period to compensate for such
difference. The "Stated Principal Balance" of each
Mortgage Loan outstanding at any time represents the
principal balance of such Mortgage Loan ultimately due
and payable thereon to Certificateholders and will
generally equal the Cut-off Date Balance thereof,
permanently reduced on each Distribution Date (to not
less than zero) by (i) any payments or other
collections (or advances in lieu thereof) of principal
of such Mortgage Loan that are due or received, as the
case may be, during the related Collection Period (as
defined herein) and distributed on the Certificates on
such date and (ii) the principal portion of any
Realized Loss incurred in respect of such Mortgage
Loan during the related Collection Period for such
</TABLE>
S-15
<PAGE>
<TABLE>
<S> <C>
Distribution Date. See "Description of the
Certificates--Pass-Through Rates" herein.
C. DISTRIBUTIONS................... Distributions on the Certificates will be made by the
Trustee, to the extent of available funds, monthly, on
each Distribution Date. The total of all payments or
other collections (or advances in lieu thereof) on or
in respect of the Mortgage Loans (other than
collections of Additional Interest, Prepayment
Premiums and Yield Maintenance Charges, which are
separately distributable in respect of the
Certificates) that are available for distribution to
Certificateholders on any Distribution Date is herein
referred to as the "Available Distribution Amount" for
such date. See "Description of the Certificates--
Distributions--The Available Distribution Amount"
herein.
On each Distribution Date, the Trustee will (except as
otherwise described under "Description of the
Certificates--Termination" herein), after deduction of
the Trustee Fee for such Distribution Date, apply the
Available Distribution Amount for such date for the
following purposes and in the following order of
priority, in each case to the extent of remaining
available funds:
(1) to distributions of interest to the holders of the
Class A-1, Class A-2, Class A-3 and Class IO
Certificates (in each case, so long as any such Class
remains outstanding), pro rata, in accordance with the
respective amounts of Distributable Certificate
Interest (as defined herein) on such Classes of
Certificates on such Distribution Date, in an amount
equal to all Distributable Certificate Interest in
respect of each such Class of Certificates for such
Distribution Date and, to the extent not previously
paid, for all prior Distribution Dates;
(2) to distributions of principal to the holders of
the Class A-1 Certificates in an amount (not to exceed
the then outstanding Certificate Balance of such Class
of Certificates) equal to the Principal Distribution
Amount (as defined herein) for such Distribution Date;
(3) after the Class A-1 Certificates have been
retired, to distributions of principal to the holders
of the Class A-2 Certificates in an amount (not to
exceed the then outstanding Certificate Balance of
such Class of Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less
any portion thereof distributed in respect of the
Class A-1 Certificates;
(4) after the Class A-1 and Class A-2 Certificates
have been retired, to distributions of principal to
the holders of the Class A-3 Certificates in an amount
(not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the
Principal Distribution Amount for such Distribution
Date, less any portion thereof distributed in respect
of the Class A-1 and/or Class A-2 Certificates;
</TABLE>
S-16
<PAGE>
<TABLE>
<S> <C>
(5) to distributions to the holders of the Class A-1,
Class A-2 and Class A-3 Certificates, pro rata, in
accordance with the amount of Realized Losses and
Additional Trust Fund Expenses, if any, previously
allocated to such Classes of Certificates and for
which no reimbursement has previously been received,
to reimburse such holders for such Realized Losses and
Additional Trust Fund Expenses, if any;
(6) to distributions of interest to the holders of the
Class B Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(7) after the Class A-1, Class A-2 and Class A-3
Certificates have been retired, to distributions of
principal to the holders of the Class B Certificates
in an amount (not to exceed the then outstanding
Certificate Balance of such Class of Certificates)
equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2
and/or Class A-3 Certificates;
(8) to distributions to the holders of the Class B
Certificates to reimburse such holders for all
Realized Losses and Additional Trust Fund Expenses, if
any, previously allocated to such Class of
Certificates and for which no reimbursement has
previously been received;
(9) to distributions of interest to the holders of the
Class C Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(10) after the Class A-1, Class A-2, Class A-3 and
Class B Certificates have been retired, to
distributions of principal to the holders of the Class
C Certificates in an amount (not to exceed the then
outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class
A-2, Class A-3 and/or Class B Certificates;
(11) to distributions to the holders of the Class C
Certificates to reimburse such holders for all
Realized Losses and Additional Trust Fund Expenses, if
any, previously allocated to such Class of
Certificates and for which no reimbursement has
previously been received;
(12) to distributions of interest to the holders of
the Class D Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
</TABLE>
S-17
<PAGE>
<TABLE>
<S> <C>
(13) after the Class A-1, Class A-2, Class A-3, Class
B and Class C Certificates have been retired, to
distributions of principal to the holders of the Class
D Certificates in an amount (not to exceed the then
outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class
A-2, Class A-3, Class B and/or Class C Certificates;
(14) to distributions to the holders of the Class D
Certificates to reimburse such holders for all
Realized Losses and Additional Trust Fund Expenses, if
any, previously allocated to such Class of
Certificates and for which no reimbursement has
previously been received;
(15) to distributions of interest to the holders of
the Class E Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(16) after the Class A-1, Class A-2, Class A-3, Class
B, Class C and Class D Certificates have been retired,
to distributions of principal to the holders of the
Class E Certificates in an amount (not to exceed the
then outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class
A-2, Class A-3, Class B, Class C and/or Class D
Certificates;
(17) to distributions to the holders of the Class E
Certificates to reimburse such holders for all
Realized Losses and Additional Trust Fund Expenses, if
any, previously allocated to such Class of
Certificates and for which no reimbursement has
previously been received; and
(18) to distributions to the holders of the respective
Classes of Private Certificates as described herein
(provided that no distributions of principal will be
made in respect of any Class of Private Certificates
until the aggregate Certificate Balance of the Class
A-1, Class A-2, Class A-3, Class B, Class C, Class D
and Class E Certificates has been reduced to zero).
See "Description of the
Certificates--Distributions--Application of the
Available Distribution Amount" herein;
provided that, on each Distribution Date, if any,
after the aggregate of the Certificate Balances of the
Subordinate Certificates (as defined herein) has been
reduced to zero as a result of the allocation of
Realized Losses and Additional Trust Fund Expenses,
and prior to retirement of the Class A Certificates,
the payments of principal to be made as contemplated
by clauses (2), (3) and (4) above with respect to the
Class A Certificates, will be so made to the holders
of the respective Classes of such Certificates, up to
an amount equal to, and pro
</TABLE>
S-18
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<TABLE>
<S> <C>
rata as among such Classes in accordance with, the
respective then outstanding Certificate Balances of
such Classes of Certificates, and without regard to
the Principal Distribution Amount for such date.
The "Distributable Certificate Interest" in respect of
any Class of Sequential Pay Certificates for any
Distribution Date will generally equal one month's
interest at the applicable Pass-Through Rate accrued
during the related Interest Accrual Period on the
Certificate Balance of such Class of Certificates
outstanding immediately prior to such Distribution
Date, reduced (to not less than zero) by such Class'
allocable share (calculated as described herein) of
any Net Aggregate Prepayment Interest Shortfall (as
defined herein) for such Distribution Date. The
"Distributable Certificate Interest" in respect of the
Class IO Certificates for any Distribution Date will
generally equal the aggregate of one month's interest
at the applicable Pass-Through Rate accrued during the
related Interest Accrual Period on the notional amount
of each Class IO Component outstanding immediately
prior to such Distribution Date, reduced (to not less
than zero) by such Class' allocable share (calculated
as described herein) of any Net Aggregate Prepayment
Interest Shortfall for such Distribution Date.
Interest payable on the Regular Interest Certificates
will be calculated on the basis of a 360-day year
consisting of twelve 30-day months. See "Servicing of
the Mortgage Loans--Servicing and Other Compensation
and Payment of Expenses" and "Description of the
Certificates-- Distributions--Distributable
Certificate Interest" herein.
The "Principal Distribution Amount" for any
Distribution Date will generally equal the aggregate
of the following (without duplication): (a) the
aggregate of the principal portions of all Scheduled
Payments (other than Balloon Payments) and the
principal portions of any Assumed Scheduled Payments
(as defined herein) due or deemed due, as the case may
be, on or in respect of the Mortgage Loans for their
respective Due Dates (as defined herein) occurring
during the related Collection Period; (b) the
aggregate of all principal prepayments received on the
Mortgage Loans during the related Collection Period;
(c) with respect to any Mortgage Loan as to which the
related stated maturity date occurred during or prior
to the related Collection Period, any payment of
principal (exclusive of any amounts described in
clause (b) above or clause (d) below) made by or on
behalf of the related borrower during the related
Collection Period (including any Balloon Payment), net
of any portion of such payment that represents a
recovery of the principal portion of any Scheduled
Payment (other than a Balloon Payment) due, or the
principal portion of any Assumed Scheduled Payment
deemed due, in respect of such Mortgage Loan on a Due
Date during or prior to the related
</TABLE>
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<S> <C>
Collection Period and not previously recovered; (d)
the aggregate of all Liquidation Proceeds and
Insurance Proceeds (each, as defined herein) that were
received on or in respect of any of the Mortgage Loans
during the related Collection Period and that were
identified and applied by the Master Servicer as
recoveries of principal, in each case net of any
portion of such amounts that represents a recovery of
the principal portion of any Scheduled Payment (other
than a Balloon Payment) due, or of the principal
portion of any Assumed Scheduled Payment deemed due,
in respect of the related Mortgage Loan on a Due Date
during or prior to the related Collection Period and
not previously recovered; and (e) for each
Distribution Date after the initial Distribution Date,
the excess, if any, of the Principal Distribution
Amount for the immediately preceding Distribution
Date, over the aggregate distributions of principal
made on the Certificates on such immediately preceding
Distribution Date.
The "Scheduled Payment" due on any Mortgage Loan on
any related Due Date is the Monthly Payment (excluding
any amounts representing Additional Interest with
respect to an ARD Loan) that is or would have been, as
the case may be, due thereon on such date, without
regard to any waiver, modification or amendment
granted or agreed to by the Special Servicer or
otherwise resulting from a bankruptcy or similar
proceeding involving the related borrower, and
assuming that the full amount of each prior Scheduled
Payment has been timely made. The "Assumed Scheduled
Payment" is an amount deemed due (i) in respect of a
Balloon Loan that is delinquent in respect of its
Balloon Payment beyond the first Determination Date
(as defined herein) after its stated maturity date and
(ii) in respect of each Mortgage Loan as to which the
related Mortgaged Property has been acquired on behalf
of the Certificateholders through foreclosure, deed in
lieu of foreclosure or otherwise (upon acquisition, an
"REO Property"). The Assumed Scheduled Payment deemed
due on any such Balloon Loan, on its stated maturity
date and on each successive related Due Date that it
remains outstanding and part of the Trust Fund, will
equal the Scheduled Payment that would have been due
thereon on such date if the related Balloon Payment
had not come due but rather such Mortgage Loan had
continued to amortize in accordance with its
amortization schedule in effect as of the Closing
Date. The Assumed Scheduled Payment deemed due on any
Mortgage Loan as to which the related Mortgaged
Property has become an REO Property, on each Due Date
that the related REO Property remains part of the
Trust Fund, will equal the Scheduled Payment that
would have been due in respect of such Mortgage Loan
on such Due Date had it remained outstanding (or, if
such Mortgage Loan was a Balloon Loan and such Due
Date coincides with or follows what had been its
stated maturity date, the Assumed
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Scheduled Payment that would have been deemed due in
respect of such Mortgage Loan on such Due Date had it
remained outstanding). See "Description of the
Certificates-- Distributions--Principal Distribution
Amount" herein.
Reimbursements of previously allocated Realized Losses
and Additional Trust Fund Expenses will not constitute
distributions of principal for any purpose and will
not result in an additional reduction in the
Certificate Balance of the Class of Certificates in
respect of which any such reimbursement is made.
The holders of the Certificates may also receive
portions of any Prepayment Premiums and Yield
Maintenance Charges to the extent described under
"Description of the Certificates--Dis-
tributions--Allocation of Prepayment Premiums and
Yield Maintenance Charges" herein. Such distributions
will be in addition to the distributions made to such
holders from the Available Distribution Amount on each
Distribution Date.
If and to the extent collected, Additional Interest
(net of any Workout Fees and/or Liquidation Fees
payable therefrom) will be distributed, pro rata
(based on their respective initial Certificate
Balances), among all the Classes of Sequential Pay
Certificates. There can be no assurance as to what
extent Additional Interest will be collected on the
ARD Loans, if at all.
P&I ADVANCES....................... Subject to a recoverability determination, as
described herein, and further subject to the reduced
advancing obligations in respect of certain Required
Appraisal Loans (as defined herein) and certain
Mortgage Loans as to which the Monthly Payment has
been reduced as part of a modification or otherwise,
the Master Servicer will be required to make advances
(each, a "P&I Advance") with respect to each
Distribution Date in an amount that is generally equal
to the aggregate of all Scheduled Payments (other than
Balloon Payments) and any Assumed Scheduled Payments,
net of related Master Servicing Fees and, if
applicable, any related Workout Fees (each as defined
herein), due or deemed due, as the case may be, on or
in respect of the Mortgage Loans on their respective
Due Dates during the related Collection Period, in
each case to the extent that such amount was not paid
by or on behalf of the related borrower or otherwise
collected as of the close of business on the last day
of the related Collection Period. Pursuant to the
terms of the Pooling and Servicing Agreement, if the
Master Servicer fails to make a required P&I Advance,
the Trustee shall then be obligated to make such P&I
Advance, and if the Trustee fails to make a required
P&I Advance, the Fiscal Agent will then be obligated
to make such P&I Advance, in each case subject to a
recoverability determination, as described herein. No
default by the Trustee will be deemed to have occurred
if the Fiscal Agent makes such P&I Advance in
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a timely manner, as set forth in the Pooling and
Servicing Agreement.
As more fully described herein, the Master Servicer
(or the Trustee or Fiscal Agent, as applicable) will
be entitled to interest on any P&I Advance made by it,
and each of the Master Servicer, the Special Servicer,
the Trustee and the Fiscal Agent will be entitled to
interest on certain reimbursable servicing expenses
incurred by any of them. Such interest: (a) will
accrue from the date any such P&I Advance is made or
such servicing expense is incurred at a rate per annum
equal to the "prime rate" published in the "Money
Rates" section of The Wall Street Journal, as such
"prime rate" may change from time to time (the
"Reimbursement Rate"); (b) will be compounded
annually; and (c) will be paid (i) at any time, out of
Default Interest (as defined herein) and late payment
charges received on the related Mortgage Loan and (ii)
once such P&I Advance or servicing expense is
reimbursed, out of general collections on the Mortgage
Pool then on deposit in the Custodial Account. See
"Description of the Certificates-- P&I Advances" and
"Servicing of the Mortgage Loans--Custodial Account"
herein.
COMPENSATING INTEREST PAYMENTS..... The Master Servicer is required to make a
non-reimbursable payment (a "Compensating Interest
Payment") with respect to each Distribution Date to
cover any Prepayment Interest Shortfalls incurred
during such Collection Period in an amount equal to
the lesser of (a) the aggregate of all Prepayment
Interest Shortfalls experienced with respect to the
Mortgage Pool during the related Collection Period and
(b) the sum of (i) the aggregate of its Master
Servicing Fees for such Collection Period (but only to
the extent of that portion thereof calculated at a
rate of 0.04% per annum with respect to each and every
Mortgage Loan) and (ii) the aggregate of all
Prepayment Interest Excesses, if any, collected with
respect to the Mortgage Pool during such Collection
Period. A "Prepayment Interest Shortfall" is a
shortfall in the collection of a full month's interest
(net of the related Servicing Fees and, if applicable,
Additional Interest and without regard to any
Prepayment Premium or Yield Maintenance Charge
collected) on any Mortgage Loan by reason of a full or
partial principal prepayment made prior to its Due
Date in any Collection Period. A "Prepayment Interest
Excess" is a payment of interest (net of related
Servicing Fees and, if applicable, Additional Interest
and exclusive of any Prepayment Premium or Yield
Maintenance Charge collected) received in connection
with any full or partial Principal Prepayment in
respect of a Mortgage Loan that is made after its Due
Date in any Collection Period, which payment of
interest is intended to cover the period from and
after such Due Date to, but not including, the date of
prepayment. The "Net Aggregate Prepayment Interest
Shortfall" for any Distribution Date will be the
amount, if any, by which (a)
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the aggregate of any Prepayment Interest Shortfalls
incurred during the related Collection Period exceeds
(b) any Compensating Interest Payment made by the
Master Servicer with respect to such Distribution
Date. See "Servicing of the Mortgage Loans--Servicing
and Other Compensation and Payment of Expenses" and
"Description of the Certificates --Distribu-
tions--Distributable Certificate Interest" herein.
SUBORDINATION; ALLOCATION OF LOSSES
AND CERTAIN EXPENSES............. The rights of holders of the Class B, Class C, Class
D, Class E and Private Certificates (collectively, the
"Subordinate Certificates"), to receive distributions
of amounts collected or advanced on the Mortgage Loans
will, in each case, be subordinated, to the extent
described herein, to the rights of holders of the
Class A and Class IO Certificates (collectively, the
"Senior Certificates") and each other such Class of
Subordinate Certificates, if any, with an earlier
alphabetical Class designation. This subordination is
intended to enhance the likelihood of timely receipt
by the holders of the Senior Certificates of the full
amount of Distributable Certificate Interest payable
in respect of such Classes of Certificates on each
Distribution Date, and the ultimate receipt by the
holders of each Class of the Class A Certificates of
principal equal to the entire related Certificate
Balance. Similarly, but to decreasing degrees, this
subordination is also intended to enhance the
likelihood of timely receipt by the holders of the
Class B, Class C, Class D and Class E Certificates of
the full amount of Distributable Certificate Interest
payable in respect of such Classes of Certificates on
each Distribution Date, and the ultimate receipt by
the holders of the Class B, Class C, Class D and Class
E Certificates of principal equal to the entire
related Certificate Balance. The protection afforded
to the holders of the Offered Certificates by means of
the subordination referred to above will be
accomplished by (i) the application of the Available
Distribution Amount on each Distribution Date in the
order described above in this Summary under
"--Description of the Certificates--Distributions" and
(ii) by the allocation of Realized Losses and
Additional Trust Fund Expenses as described below. No
other form of credit support will be available for the
benefit of the holders of the Offered Certificates.
On each Distribution Date, following all distributions
on the Certificates to be made on such date, the
aggregate of all Realized Losses and Additional Trust
Fund Expenses that have been incurred since the
Cut-off Date through the end of the related Collection
Period and that have not previously been so allocated
will be allocated, subject to the limitations
described herein, first to the Private Certificates
(other than the Residual Interest Certificates) in the
order described herein, and then to the Class E, Class
D, Class C and Class B Certificates, in that order,
until the Certificate Balance of each such Class has
been reduced to zero. Thereafter any additional
Realized Losses
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and Additional Trust Fund Expenses will be allocated,
subject to the limitations described herein, to the
Class A-1, Class A-2 and Class A-3 Certificates, pro
rata, in proportion to their outstanding Certificate
Balances (in each such case, in reduction of the
related Certificate Balance). See "Description of the
Certificates--Subordination; Allocation of Losses and
Certain Expenses" herein.
Any Realized Loss or Additional Trust Fund Expenses
allocated in reduction of the Certificate Balance of
any Class of Sequential Pay Certificates will result
in a corresponding reduction in the notional amount of
the related Class IO Component.
TREATMENT OF REO PROPERTIES........ In the event that a Mortgaged Property is acquired on
behalf of the Certificateholders through foreclosure,
deed in lieu of foreclosure or otherwise (upon
acquisition, an "REO Property"), the related Mortgage
Loan will be treated, for purposes of determining (i)
distributions on the Certificates, (ii) allocations of
Realized Losses and Additional Trust Fund Expenses to
the Certificates and (iii) the amount of fees payable
to the Trustee, the Master Servicer and the Special
Servicer under the Pooling and Servicing Agreement, as
having remained outstanding until such REO Property is
liquidated. In connection therewith, operating
revenues and other proceeds derived from such REO
Property (net of related operating costs, including
certain reimbursements payable to the Master Servicer
or the Special Servicer in connection with the
operation and disposition of such REO Property) will
be "applied" by the Master Servicer as principal,
interest and other amounts that would have been "due"
on such Mortgage Loan, and the Master Servicer (and,
if necessary, the Trustee and Fiscal Agent) will be
required to make P&I Advances in respect of such Mort-
gage Loan, in all cases as if such Mortgage Loan had
remained outstanding.
OPTIONAL TERMINATION............... Each of the Depositor, the Master Servicer, the
Special Servicer, the Underwriter and the Majority
Subordinate Certificateholder (as defined herein) will
have an option to purchase all of the Mortgage Loans
and REO Properties, and thereby effect termination of
the Trust Fund and early retirement of the then
outstanding Certificates, on any Distribution Date on
which the aggregate Stated Principal Balance of the
Mortgage Pool is less than 1% of the Initial Pool
Balance. See "Description of the
Certificates--Termination" herein.
CERTAIN INVESTMENT
CONSIDERATIONS................... The yield to maturity of a Class A-1, Class A-2, Class
A-3, Class B, Class C, Class D or Class E Certificate
purchased at a discount or premium will be affected by
the rate of prepayments and other unscheduled
collections of principal on or in respect of the
Mortgage Loans and the allocation thereof to reduce
the principal balance of such Certificate. An investor
should consider, in the case of any such Certificate
purchased
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at a discount, the risk that a slower than anticipated
rate of prepayments could result in a lower than
anticipated yield and, in the case of any such
Certificate purchased at a premium, the risk that a
faster than anticipated rate of prepayments could
result in a lower than anticipated yield. IN ADDITION,
THE YIELD TO MATURITY OF THE CLASS IO CERTIFICATES
WILL BE HIGHLY SENSITIVE TO THE RATE AND TIMING OF
PRINCIPAL PAYMENTS (INCLUDING BY REASON OF
PREPAYMENTS, DEFAULTS AND LIQUIDATIONS) ON THE
MORTGAGE LOANS, AND INVESTORS IN THE CLASS IO
CERTIFICATES SHOULD FULLY CONSIDER THE ASSOCIATED
RISKS, INCLUDING THE RISK THAT A RAPID RATE OF
PREPAYMENTS AND/OR LIQUIDATIONS IN RESPECT OF THE
MORTGAGE LOANS COULD RESULT IN THE FAILURE OF SUCH
INVESTORS TO FULLY RECOUP THEIR INITIAL INVESTMENTS.
See "Yield and Maturity Considerations" herein and
"Yield and Prepayment Considerations" in the
Prospectus. The allocation to any Class of any
Prepayment Premium or Yield Maintenance Charge may be
insufficient to offset fully any adverse effects on
the anticipated yield to maturity resulting from the
corresponding principal prepayment. See "Description
of Certificates-- Distributions--Allocation of
Prepayment Premiums and Yield Maintenance Charges"
herein.
In addition, insofar as an investor's initial
investment in any Offered Certificate is returned in
the form of payments of principal thereon, there can
be no assurance that such amounts can be reinvested in
comparable alternative investments with comparable
yields. Because borrowers would have an incentive to
prepay their Mortgage Loans when, in any particular
case, prevailing market interest rates are below the
related Mortgage Rate, the rate of prepayments on the
Mortgage Loans is likely to be inversely related to
the level of prevailing market interest rates (and,
presumably, to the yields on comparable alternative
investments).
CERTAIN FEDERAL INCOME TAX
CONSEQUENCES..................... Three separate "real estate mortgage investment
conduit" ("REMIC") elections will be made with respect
to the Trust Fund for federal income tax purposes,
with the resulting REMICs being herein referred to as
"REMIC I," "REMIC II" and "REMIC III". The assets of
REMIC I will consist of the Mortgage Loans, any REO
Properties acquired on behalf of the
Certificateholders and funds deposited from time to
time in the Custodial Account, the Collection Account
and any REO Account (each as defined herein),
exclusive of any Additional Interest on the ARD Loans
(see "Servicing of the Mortgage Loans--Custodial
Account" and "Description of the
Certificates--Collection Account" herein). For federal
income tax purposes, (a) the separate noncertificated
regular interests in REMIC I will be the "regular
interests" in REMIC I and will constitute the assets
of REMIC II, (b) the Class R-I Certificates will be
the sole class of "residual interests" in REMIC I, (c)
the separate noncertificated regular interests in
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REMIC II will be the "regular interests" in REMIC II
and will constitute the assets of REMIC III, (d) the
Class R-II Certificates will be sole class of
"residual interests" in REMIC II, (e) the Regular
Interest Certificates will evidence ownership of the
"regular interests" in REMIC III (with each Class IO
Component constituting a separate "regular interest"),
which generally will be treated as debt instruments of
REMIC III, and (f) the Class R-III Certificates will
be the sole class of "residual interests" in REMIC
III. The Sequential Pay Certificates will also
represent pro rata (based on their respective initial
Certificate Balances) undivided beneficial interests
in the portion of the Trust Fund consisting of any
Additional Interest collected on the ARD Loans, and
such portion will be treated as part of a grantor
trust for federal income tax purposes.
The Class IO Certificates will, and the other Classes
of Offered Certificates will not, be treated as having
been issued with original issue discount for federal
income tax reporting purposes. The prepayment
assumption that will be used for purposes of computing
the accrual of original issue discount, market
discount and premium, if any, for federal income tax
purposes will be that the Mortgage Loans will not
prepay (that is, a CPR of 0%), except that it is
assumed that the ARD Loans pay their respective
outstanding principal balances on their related
Anticipated Repayment Dates. However, no rep-
resentation is made that the Mortgage Loans will
prepay at that rate or at any other rate.
The Offered Certificates will be treated as "real
estate assets" within the meaning of Section
856(c)(5)(A) of the Code. In addition, interest
(including original issue discount) on the Offered
Certificates will be interest described in Section
856(c)(3)(B) of the Code. However, the Offered
Certificates will generally only be considered assets
described in Section 7701(a)(19)(C) of the Code to the
extent that the Mortgage Loans are secured by
residential property and, accordingly, an investment
in the Offered Certificates may not be suitable for
certain thrift institutions.
For further information regarding the federal income
tax consequences of investing in the Offered
Certificates, see "Certain Federal Income Tax
Consequences" herein and "Federal Income Tax
Considerations" in the Prospectus.
ERISA CONSIDERATIONS............... A fiduciary of any employee benefit plan or other
retirement arrangement subject to the Employee
Retirement Income Security Act of 1974, as amended
("ERISA"), or Section 4975 of the Code (a "Plan")
should review carefully with its legal advisors
whether the purchase or holding of Offered Certifi-
cates could give rise to a transaction that is
prohibited or is not otherwise permitted either under
ERISA or Section 4975 of the Code or whether there
exists any statutory or administrative exemption
applicable to an investment therein.
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The Underwriter has received from the U.S. Department
of Labor (the "DOL") an individual exemption,
Prohibited Transaction Exemption 91-14, which
generally exempts from the application of certain of
the prohibited transaction provisions of Sections
406(a) and (b) and 407(a) of ERISA and the excise
taxes imposed on such prohibited transactions by
Section 4975(a) and (b) of the Code, transactions
relating to the purchase, sale and holding of
pass-through certificates underwritten by the
Underwriter provided that certain conditions are
satisfied.
The Depositor expects that the Prohibited Transaction
Exemption will generally apply to the Senior
Certificates, but it will not apply to the other
Classes of Offered Certificates. ACCORDINGLY, EXCEPT
AS DESCRIBED HEREIN, THE CLASS B, CLASS C, CLASS D AND
CLASS E CERTIFICATES SHOULD NOT BE ACQUIRED BY A PLAN
OR ANY INVESTOR HOLDING ASSETS OF A PLAN. PURCHASERS
USING INSURANCE COMPANY GENERAL ACCOUNT FUNDS TO
EFFECT SUCH PURCHASE SHOULD CONSIDER THE AVAILABILITY
OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 (60
FED. REG. 35925, JULY 12, 1995) ISSUED BY THE DOL. See
"ERISA Considerations" herein and in the Prospectus.
RATINGS............................ It is a condition of their issuance that the Offered
Certificates receive the ratings from each of Moody's
Investors Service, Inc. ("Moody's") and Duff & Phelps
Credit Rating Co. ("DCR" and, together with Moody's,
the "Rating Agencies") set forth on the cover page of
this Prospectus Supplement. The ratings on the Offered
Certificates address the likelihood of the timely
receipt by holders thereof of all distributions of
interest to which they are entitled and, except in the
case of the Class IO Certificates, distributions of
principal by the Rated Final Distribution Date set
forth on the cover page of this Prospectus Supplement.
The ratings take into consideration the credit quality
of the Mortgage Pool, structural and legal aspects
associated with the Offered Certificates, and the
extent to which the payment stream from the Mortgage
Pool is adequate to make payments required under the
Offered Certificates. A security rating is not a
recommendation to buy, sell or hold securities and may
be subject to revision or withdrawal at any time by
the assigning rating organization. A security rating
does not represent any assessment of (i) the
likelihood or frequency of principal prepayments or
default interest on the Mortgage Loans, (ii) the
degree to which such prepayments might differ from
those originally anticipated or (iii) whether and to
what extent Additional Interest, Prepayment Premiums
and Yield Maintenance Charges will be received. Also,
a security rating does not represent any assessment of
the yield to maturity that investors may experience or
the possibility that the holders of the Class IO
Certificates might not fully recover their investment
in the event of rapid prepayments of the Mortgage
Loans (including both voluntary and involuntary
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prepayments). Therefore, such security rating
addresses credit risk and not the risk of prepayment.
As described herein, the amounts payable with respect
to the Class IO Certificates consist only of interest.
If the entire Mortgage Pool were to prepay in the
initial month, with the result that the holders of the
Class IO Certificates receive only a single month's
interest and thus suffer a nearly complete loss of
their investment, all amounts "due" to such
Certificateholders will nevertheless have been paid,
and such result is consistent with the ratings
received on the Class IO Certificates. Each Class IO
Component's notional amount upon which interest is
calculated will be permanently reduced by the
allocation of Realized Losses and Additional Trust
Fund Expenses and the distribution of prepayments,
whether voluntary or involuntary, to or in respect of
the corresponding Class of Sequential Pay
Certificates. The rating does not address the timing
or magnitude of reductions of the notional amounts of
the Class IO Components, but only the obligation to
pay interest timely on each such notional amount as
reduced from time to time. Accordingly, the ratings of
the Class IO Certificates should be evaluated
independently from similar ratings on other types of
securities. See "Ratings" herein and "Risk
Factors--Limited Nature of Rating" in the Prospectus.
LEGAL INVESTMENT................... Upon initial issuance, the Class A, Class B and Class
IO Certificates will constitute "mortgage related
securities" pursuant to the Secondary Mortgage Market
Enhancement Act of 1984, as amended ("SMMEA"). All
other Offered Certificates (the "Non-SMMEA
Certificates") will not constitute "mortgage related
securities" for purposes of SMMEA. As a result, the
appropriate characterization of the Non-SMMEA Certifi-
cates under various legal investment restrictions, and
thus the ability of investors subject to these
restrictions to purchase the Non-SMMEA Certificates of
any Class, may be subject to significant
interpretative uncertainties. In addition,
institutions whose investment activities are subject
to review by federal or state regulatory authorities
may be or may become subject to restrictions on the
investment by such institutions in certain forms of
mortgage backed securities. Investors should consult
their own legal advisors to determine whether and to
what extent the Offered Certificates constitute legal
investments for them. See "Legal Investment" herein
and in the Prospectus.
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RISK FACTORS
Prospective purchasers of the Offered Certificates of any Class should
consider, among other things, the following risk factors (as well as the risk
factors set forth under "Risk Factors" in the Prospectus) in connection with an
investment therein.
THE CERTIFICATES
LIMITED LIQUIDITY. There is currently no secondary market for the Offered
Certificates. While the Underwriter currently intends to make a secondary market
in the Offered Certificates, it is not under any obligation to do so.
Accordingly, there can be no assurance that a secondary market for the Offered
Certificates will develop. Moreover, if a secondary market does develop, there
can be no assurance that it will provide holders of the Offered Certificates
with liquidity of investment or that it will continue for the life of the
Offered Certificates. Any such secondary market may provide less liquidity to
investors than any comparable market for securities that evidence, for example,
interests solely in single-family mortgage loans. The Certificates will not be
listed on any securities exchange. See "Risk Factors--Limited Liquidity" in the
Prospectus.
CERTAIN YIELD AND MATURITY CONSIDERATIONS. The yield on the Class IO
Certificates and any other Classes of Offered Certificates that are purchased at
a discount or premium will be affected by the rate and timing of principal
payments applied or otherwise resulting in reduction of the Certificate Balance
of such Class of Certificates (or, in the case of the Class IO Certificates, the
notional amount of any Class IO Component), which in turn will be affected by
(i) the rate and timing of principal payments and collections on the Mortgage
Loans, particularly unscheduled payments or collections in the form of voluntary
prepayments of principal or unscheduled recoveries of principal due to defaults,
casualties or condemnations whether before or after the scheduled maturity date
of the related Mortgage Loans, and (ii) the order of priority of distributions
of principal in respect of the Sequential Pay Certificates. The rate and timing
of unscheduled payments and collections of principal on the Mortgage Loans is
impossible to accurately predict and will be affected by a variety of factors,
including, without limitation, the level of prevailing interest rates,
restrictions on voluntary prepayments contained in the Mortgage Notes, the
availability of mortgage credit and other economic, demographic, geographic, tax
and legal factors. In general, however, if prevailing interest rates fall
significantly below the Mortgage Rates on the Mortgage Loans, borrowers under
the Mortgage Loans will have an increased incentive to prepay. As described
herein, the Principal Distribution Amount for each Distribution Date will be
distributable entirely in reduction of the Certificate Balances of the Class
A-1, Class A-2 and Class A-3 Certificates, in that order (unless the aggregate
Certificate Balance of the Subordinate Certificates has been reduced to zero),
in each such case until the related Certificate Balance thereof is reduced to
zero, and will thereafter be distributable in its entirety in respect of each
remaining Class of Sequential Pay Certificates, sequentially in alphabetical
order of Class designation, until the related Certificate Balance of each such
Class is, in turn, reduced to zero. See "Description of the
Certificates--Distributions--Application of the Available Distribution Amount"
herein. Accordingly, the actual rate of principal payments on the Mortgage Loans
may have different effects on the yields of the respective Classes of Offered
Certificates. Any payment in reduction of the Certificate Balance of a Class of
Sequential Pay Certificates will also result in a corresponding reduction in the
notional amount of the related Class IO Component. Thus, the yield on the Class
IO Certificates will be extremely sensitive to the rate and timing of principal
payments on the Mortgage Loans, and the more rapidly the notional amount of any
Class IO Component is reduced, the greater will be the negative effect on the
yield on such Certificates, to the extent such effect is not offset by
distributions of a portion of any applicable Prepayment Premiums or Yield
Maintenance Charges to the holders thereof, as described under "Description of
the Certificates--Distributions--Allocation of Prepayment Premiums and Yield
Maintenance Charges" herein. In addition, the Mortgage Loans generally do not
require the payment of Prepayment Premiums or Yield Maintenance Charges in the
event of involuntary prepayments resulting from casualty or condemnation.
Furthermore, the enforceability, under the laws of a number of states, of
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provisions of the Mortgage Loans providing for the payment of a Prepayment
Premium or Yield Maintenance Charge is unclear. Thus, in the event of a
liquidation of a Mortgage Loan following a default, the liquidation proceeds may
be insufficient to cover any Prepayment Premium or Yield Maintenance Charge,
together with all principal, interest and other sums that may be due and owing
in respect of such Mortgage Loan, and the obligation to pay such Prepayment
Premium or Yield Maintenance Charge under those circumstances may be
unenforceable. No Prepayment Premium or Yield Maintenance Charge will be payable
in connection with any repurchase of a Mortgage Loan for a material breach of
representation or warranty or the failure to deliver material Mortgage Loan
documents, nor will any Prepayment Premium or Yield Maintenance Charge be
payable in connection with the purchase of all the Mortgage Loans and any REO
Properties by the Depositor, the Underwriter, the Master Servicer, the Special
Servicer or the Majority Subordinate Certificateholder in connection with the
termination of the Trust Fund. See "Description of the Mortgage Pool--Assignment
of the Mortgage Loans; Repurchases" and "--Representations and Warranties;
Repurchases" and "Description of the Certificates--Termination" herein.
ACCORDINGLY, PROSPECTIVE INVESTORS IN THE CLASS IO CERTIFICATES SHOULD CONSIDER
THE ASSOCIATED RISKS, INCLUDING THE RISK THAT A RAPID RATE OF PREPAYMENTS ON THE
MORTGAGE LOANS COULD RESULT IN THE FAILURE OF SUCH INVESTORS TO FULLY RECOUP
THEIR INITIAL INVESTMENTS.
The yield on any Offered Certificate also will be affected by the rate and
timing of losses attributable to defaults on the Mortgage Loans, the severity of
such losses and the extent to which such losses and related expenses are applied
in reduction of the actual or notional principal amount of such Certificate or
otherwise reduce the amount of funds available for distribution to the holder of
such Certificate. To the extent described herein, the Private Certificates are
subordinate in right and time of payment to the Offered Certificates and will
bear shortfalls in collections and losses incurred in respect of the Mortgage
Loans prior to the Offered Certificates; and the Class B, Class C, Class D and
Class E Certificates are subordinate in right and time of payment to the Senior
Certificates and will bear such shortfalls and losses prior to the Senior
Certificates, in reverse alphabetical order of Class designation. The Class A-1,
Class A-2 and Class A-3 Certificates will bear shortfalls in collections and
losses incurred in respect of the Mortgage Loans PRO RATA, in proportion to
their respective outstanding Certificate Balances. However, until the first
Distribution Date after the aggregate of the Certificate Balances of the
Subordinate Certificates has been reduced to zero, (i) the Class A-3
Certificates will receive principal payments only after the Certificate Balances
of the Class A-2 and Class A-1 Certificates have been reduced to zero and (ii)
the Class A-2 Certificates will receive principal payments only after the
Certificate Balance of the Class A-1 Certificates has been reduced to zero. As a
result, the shortfalls and losses allocated to the Class A-1, Class A-2 and
Class A-3 Certificates will, depending on the timing of such shortfalls and
losses, have a greater effect on the Class A-3 Certificates than on the Class
A-1 and Class A-2 Certificates and a greater effect on the Class A-2
Certificates than on the Class A-1 Certificates. Any Realized Loss or Additional
Trust Fund Expenses allocated in reduction of the Certificate Balance of any
Class of Sequential Pay Certificates will result in a corresponding reduction in
the notional amount of the corresponding Class IO Component. See "Description of
the Certificates--Distributions" and "--Subordination; Allocation of Losses and
Certain Expenses" and "Yield and Maturity Considerations" herein and "Yield and
Prepayment Considerations" in the Prospectus.
The Pass-Through Rate applicable to each Class IO Component will be variable
and will be equal to the Weighted Average Net Mortgage Rate from time to time
minus the Pass-Through Rate on the Class of Sequential Pay Certificates related
to such Class IO Component. Accordingly, the Pass-Through Rate applicable to
each such Class IO Component and, correspondingly, the yield on the Class IO
Certificates will be sensitive to changes in the relative composition of the
Mortgage Pool as a result of scheduled amortization, voluntary prepayments and
liquidations. See "Description of the Certificates--Distributions" and
"--Subordination; Allocation of Losses and Certain Expenses" and "Yield and
Maturity Considerations" herein and "Yield and Prepayment Considerations" in the
Prospectus.
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POTENTIAL CONFLICTS OF INTEREST. Subject to certain conditions described
herein, the Pooling and Servicing Agreement will permit the holder (or holders)
of the majority of the Voting Rights (as defined herein) allocated to the
Controlling Class of Sequential Pay Certificates (that is, the Class of
Sequential Pay Certificates that bears the latest alphabetical Class designation
and that has a Certificate Balance that is greater than 25% of its original
Certificate Balance (or, if no Class of Sequential Pay Certificates has a
Certificate Balance that is greater than 25% of its original Certificate
Balance, the then outstanding Class of Sequential Pay Certificates with the
latest alphabetical Class designation)) to replace the Special Servicer or any
successor thereafter appointed and to select the Controlling Class
Representative from whom the Special Servicer will seek advice and approval and
take direction under certain circumstances, as described herein. The replacement
Special Servicer may be a Certificateholder of such Class or an affiliate of any
such Certificateholder. As described herein, any such Special Servicer will have
considerable latitude in determining to liquidate or modify defaulted Mortgage
Loans. In addition, the Special Servicer will perform certain servicing
functions with respect to the Mortgage Loans, pursuant to the Pooling and
Servicing Agreement. See "Servicing of the Mortgage Loans--Modifications,
Waivers and Amendments" herein. The initial Special Servicer or an affiliate
thereof may purchase some of the Certificates of one or more Classes of Private
Certificates, including the initial Controlling Class of Sequential Pay
Certificates, and the Special Servicer or an affiliate thereof is not prohibited
from purchasing the Certificates of any other Class. Although the Special
Servicer will be obligated to observe the terms of the Pooling and Servicing
Agreement and will be governed by the servicing standard described herein, it
may, especially if it is itself a Certificateholder, have interests when dealing
with defaulted Mortgage Loans that are in conflict with those of holders of
Offered Certificates. For instance, a Special Servicer that is a
Certificateholder could seek to mitigate the potential for loss to its Class
from a troubled Mortgage Loan by deferring enforcement in the hope of maximizing
future proceeds. However, such action could result in less proceeds to the Trust
Fund than would have been realized if earlier action had been taken. In
connection with the servicing of the Specially Serviced Mortgage Loans, the
Special Servicer may, at the direction of the Controlling Class Representative,
take actions with respect to such Specially Serviced Mortgage Loans that could
adversely affect the holders of some or all of the Classes of Offered
Certificates. It is possible that the Controlling Class Representative may
direct the Special Servicer to take actions which conflict with the interests of
the holders of certain Classes of Offered Certificates.
BOOK-ENTRY REGISTRATION. The Offered Certificates of each Class thereof
will be initially represented by one or more Certificates registered in the name
of a nominee for DTC. As a result, unless and until corresponding Definitive
Offered Certificates are issued, the Certificate Owners with respect to each
Class of Offered Certificates will be able to exercise the rights of
Certificateholders only indirectly through DTC and its Participants. In
addition, the access of Certificate Owners to information regarding the Offered
Certificates in which they hold interests may be limited. Conveyance of notices
and other communications by DTC to Participants, and directly and indirectly
through the Participants to Certificate Owners, will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Furthermore, as described herein, Certificate Owners
may suffer delays in the receipt of payments on the Offered Certificates when in
the form of global certificates, and the ability of any Certificate Owner to
pledge or otherwise take actions with respect to its interest in the Offered
Certificates may be limited due to the lack of a physical certificate evidencing
such interest. See "Description of the Certificates--Book-Entry Registration"
herein and "Description of the Securities--Book-Entry Registration" in the
Prospectus.
THE MORTGAGE LOANS
RISKS OF LENDING ON INCOME-PRODUCING PROPERTIES. The Mortgaged Properties
consist entirely of income-producing real estate. Lending on the security of
income-producing real estate is generally viewed as exposing a lender to a
greater risk of loss than lending on the security of single-family residences.
Lending on the security of income-producing property typically involves larger
loans than single-family lending. In addition, and unlike loans made on the
security of single family residences, repayment of loans
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made on the security of income-producing real property depends upon the ability
of the related real estate project (i) to generate income sufficient to pay
operating expenses and leasing commissions, to make necessary repairs, tenant
improvements and capital improvements and to pay debt service and (ii) in the
case of loans that do not fully amortize over their terms, to retain sufficient
value to permit the borrower to pay off the loan at maturity by sale or
refinancing. A number of factors, many beyond the control of the property owner,
can affect the ability of an income-producing real estate project to generate
sufficient net operating income to pay debt service and/or to maintain its
value. Among these factors are economic conditions generally and in the area of
the project, the age, quality and design of the project and the degree to which
it competes with other projects in the area, changes or continued weakness in
specific industry segments, increases in operating costs, the willingness and
ability of the owner to provide capable property management and maintenance and,
in the case of Mortgaged Properties that are retail, industrial/ warehouse or
office properties, the degree to which the project's revenue is dependent upon a
single tenant or user, a small group of tenants, tenants concentrated in a
particular business or industry and the competition to any such tenants. If
leases are not renewed or replaced, if tenants default and/or if rental rates
fall and/or if operating expenses increase, the borrower's ability to repay the
loan may be impaired and the resale value of the property, which is
substantially dependent upon the property's ability to generate income, may
decline. In addition, there are other factors, including changes in zoning or
tax laws, the availability of credit for refinancing, and changes in interest
rate levels that may adversely affect the value of a project (and thus the
borrower's ability to sell or refinance) without necessarily affecting the
ability to generate current income.
In addition, particular types of income properties are exposed to particular
risks. For instance, office properties may require their owners to expend
significant amounts of cash to pay for general capital improvements, tenant
improvements and costs of re-leasing space. Also, office properties that are not
equipped to accommodate the needs of modern businesses may become functionally
obsolete and thus non-competitive. Multifamily projects are part of a market
that, in general, is characterized by low barriers to entry. Thus, a particular
apartment market with historically low vacancies could experience substantial
new construction, and a resultant oversupply of units, in a relatively short
period of time. Since multifamily apartment units are typically leased on a
short-term basis, the tenants who reside in a particular project within such a
market may easily move to alternative projects with more desirable amenities or
locations. Shopping centers, in general, are affected by the health of the
retail industry, which is currently undergoing a consolidation and is
experiencing changes due to the growing market share of "off-price" retailing,
and a particular shopping center may be adversely affected by the bankruptcy or
decline in drawing power of an anchor tenant, a shift in consumer demand due to
demographic changes (for example, population decreases or changes in average age
or income) and/or changes in consumer preference (for example, to discount
retailers). Industrial properties may be adversely affected by reduced demand
for industrial space occasioned by a decline in a particular industry segment
(for example, a decline in defense spending), and a particular industrial
property that suited the needs of its original tenant may be difficult to re-let
to another tenant or may become functionally obsolete relative to newer
properties.
In the case of retail properties, the failure of an anchor tenant to renew
its lease, the termination of an anchor tenant's lease, the bankruptcy or
economic decline of an anchor tenant, or the cessation of the business of an
anchor at its store, notwithstanding its continued payment of rent after "going
dark", can have a particularly negative effect on the economic performance of a
shopping center property given the importance of anchor tenants in attracting
traffic to other stores within the same shopping center. In addition, the
failure of one or more major tenants, such as an anchor tenant, to operate from
its premises may entitle other tenants to rent reductions or the right to
terminate their leases.
Mortgage Loans secured by liens on residential health care facilities pose
risks not associated with loans secured by liens on other types of
income-producing real estate. Providers of long-term nursing care, assisted
living and other medical services are subject to federal and state laws that
relate to the adequacy of medical care, distribution of pharmaceuticals, rate
setting, equipment, personnel, operating policies and
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additions to facilities and services and, to the extent dependent on patients
whose fees are reimbursed by private insurers, to the reimbursement policies of
such insurers. The failure of any of such borrower to maintain or renew any
required license or regulatory approval could prevent it from continuing
operations at a Mortgaged Property (in which case no revenues would be received
from such property or portion thereof requiring licensing) or, if applicable,
bar it from participation in government reimbursement programs. Furthermore, in
the event of foreclosure, there can be no assurance that the Trustee or any
other purchaser at a foreclosure sale would be entitled to the rights under such
licenses and such party may have to apply in its own right for such a license.
There can be no assurance that a new license could be obtained or that the
related Mortgaged Property would be adaptable to other uses. To the extent any
nursing home receives a significant portion of its revenues from government
reimbursement programs, primarily Medicaid and Medicare, such revenue may be
subject to statutory and regulatory changes, retroactive rate adjustments,
administrative rulings, policy interpretations, delays by fiscal intermediaries
and government funding restrictions. Moreover, governmental payors have employed
cost-containment measures that limit payments to health care providers, and
there are currently under consideration various proposals in the United States
Congress that could materially change or curtail those payments. Accordingly,
there can be no assurance that payments under government reimbursement programs
will, in the future, be sufficient to fully reimburse the cost of caring for
program beneficiaries. If not, net operating income of the Mortgaged Properties
that receive substantial revenues from those sources, and consequently the
ability of the related borrowers to meet their Mortgage Loan obligations, could
be adversely affected. Under applicable federal and state laws and regulations,
including those that govern Medicare and Medicaid programs, only the provider
who actually furnished the related medical goods and services may sue for or
enforce its rights to reimbursement. Accordingly, in the event of foreclosure,
none of the Trustee, the Master Servicer, the Special Servicer or a subsequent
lessee or operator of the property would generally be entitled to obtain from
federal or state governments any outstanding reimbursement payments relating to
services furnished at the respective properties prior to such foreclosure.
Various factors, including location, quality and franchise affiliation (or
lack thereof), affect the economic viability of a hotel. Adverse economic
conditions, either local, regional or national, may limit the amount that may be
charged for a room and may result in a reduction in occupancy levels. The
construction of competing hotels or motels can have similar effects. Because
hotel rooms generally are rented for short periods of time, hotel properties
tend to respond more quickly to adverse economic conditions and competition than
do other commercial properties. The successful operation of a hotel with a
franchise affiliation may depend in part upon the strength of the franchisor,
the public perception of the franchise service mark and the continued existence
of any franchise license agreement. The transferability of a franchise license
agreement may be restricted, and a lender or other person that acquires title to
a hotel property as a result of foreclosure may be unable to succeed to the
borrower's rights under any franchise license agreement. Furthermore, the
ability of a hotel to attract customers, and some of such hotel's revenues, may
depend in large part on its having a liquor license. Such a license may not be
transferable (for example, in connection with a foreclosure). See "Risk
Factors--Certain Mortgage Loans and Mortgaged Property; Obligor Default" in the
Prospectus.
RISKS PARTICULAR TO RETAIL PROPERTIES. In addition to risks generally
associated with income-producing real estate, retail properties are also
affected significantly by adverse changes in consumer spending patterns, local
competitive conditions (such as the supply of retail space or the existence or
construction of new competitive shopping centers or shopping malls), alternative
forms of retailing (such as direct mail and video shopping networks which reduce
the need for retail space by retail companies), the quality and philosophy of
management, the attractiveness of the properties to tenants and their customers
or clients, the public perception of the safety of customers at shopping malls
and shopping centers, and the need to make major repairs or improvements to
satisfy the needs of major tenants.
Retail properties also are directly affected by the strength of retail sales
generally. The retailing industry is currently undergoing consolidation due to
many factors, including growth in discount retailing
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and mail order merchandisers. If the sales by tenants in the Mortgaged
Properties that contain retail space were to decline, the rents that are based
on a percentage of revenues may decline and tenants may be unable to pay the
fixed portion of their rents or other occupancy costs. Retail properties may be
adversely affected if a significant tenant ceases operations at such locations
(which may occur on account of a voluntary decision not to renew a lease,
bankruptcy or insolvency of such tenant, such tenant's general cessation of
business activities or for other reasons), notwithstanding its continued payment
of rent after "going dark". Significant tenants at a retail property play an
important part in generating customer traffic and making a retail property a
desirable location for other tenants at such property. In addition, certain
tenants at retail properties may be entitled to terminate their leases if an
anchor tenant fails to renew or terminates its lease, becomes the subject of a
bankruptcy proceeding or ceases operations at such property. In such cases,
there can be no assurance that any such anchor tenants will continue to occupy
space in the related shopping centers. For several Mortgage Loans, the land and
improvements utilized by an anchor or other tenant are not subject to the
related Mortgage.
RISKS PARTICULAR TO MULTIFAMILY PROPERTIES. Adverse economic conditions,
either local, regional or national, may limit the amount of rent that can be
charged for rental units, may adversely affect tenants' ability to pay rent and
may result in a reduction in timely rent payments or a reduction in occupancy
levels without a corresponding decrease in expenses. Occupancy and rent levels
may also be affected by construction of additional housing units, local military
base closings, company relocations and closings and national and local politics,
including current or future rent stabilization and rent control laws and
agreements. Multifamily apartment units are typically leased on a short-term
basis, and consequently, the occupancy rate of a multifamily rental property may
be subject to rapid decline, including for some of the foregoing reasons. In
addition, the level of mortgage interest rates may encourage tenants in
multifamily rental properties to purchase single-family housing rather than
continue to lease housing or the characteristics of the neighborhood in which a
multifamily rental property is located may change over time or in relation to
newer developments. Further, the cost of operating a multifamily rental property
may increase, including the cost of utilities and the costs of required capital
expenditures. Also, multifamily rental properties may be subject to rent control
laws which could impact the future cash flows of such properties.
RISKS PARTICULAR TO OFFICE PROPERTIES. In addition to risks generally
associated with income-producing real estate, mortgage loans secured by office
properties are also affected significantly by adverse changes in population and
employment growth (which generally creates demand for office space), local
competitive conditions (such as the supply of office space or the existence or
construction of new competitive office buildings), the quality and philosophy of
management, the attractiveness of the properties to tenants and their customers
or clients, the attractiveness of the surrounding neighborhood, and the need to
make major repairs or improvements to satisfy the needs of major tenants. Office
properties that are not equipped to accommodate the needs of modern business may
become functionally obsolete and thus noncompetitive. In addition, office
properties may be adversely affected by an economic decline in the businesses
operated by their tenants. Such decline may result in one or more significant
tenants ceasing operations at such locations (which may occur on account of a
voluntary decision not to renew a lease, bankruptcy or insolvency of such
tenants, such tenants' general cessation of business activities or for other
reasons). The risk of such an economic decline is increased if revenue is
dependent on a single tenant or if there is a significant concentration of
tenants in a particular business or industry.
PROPERTY LOCATION AND CONDITION. The location and construction quality of a
particular building may affect the occupancy level, the rents that may be
charged and/or the performance of the occupants' businesses. The characteristics
of an area or neighborhood in which a Mortgaged Property is located may change
over time or in relation to competing facilities. The effects of poor
construction quality will increase over time in the form of increased
maintenance and capital improvements. Even good construction will deteriorate
over time if the management company does not schedule and perform adequate
maintenance in a timely fashion. The borrowers are generally required to keep
the Mortgaged Properties in good repair. In addition, all the Mortgaged
Properties have been inspected within the last 18 months
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and, as of the date of such inspection, show no material maintenance
deficiencies. Although the Master Servicer or the Special Servicer, as
applicable, will be required to inspect the Mortgaged Properties at least once
every year, there can be no assurance that such inspections will detect damage
or prevent a default. See "Description of the Mortgage Pool--Assessments of
Property Condition" herein.
COMPETITION. Other comparable multifamily/commercial properties located in
the same areas compete with the Mortgaged Properties to attract residents,
retail sellers, tenants, customers and/or guests. The leasing of real estate is
highly competitive. The principal means of competition are price, location and
the nature and condition of the facility to be leased. A borrower competes with
all lessors and developers of comparable types of real estate in the area in
which the related Mortgaged Property is located. Such lessors or developers
could have lower rents, lower operating costs, more favorable locations or
better facilities. While a borrower may renovate, refurbish or expand the
related Mortgaged Property to maintain it and remain competitive, such
renovation, refurbishment or expansion may itself entail significant risks.
Increased competition could adversely affect income from and the market value of
the Mortgaged Properties. In addition, the business conducted at each Mortgaged
Property may face competition from other industries and industry segments.
CHANGES IN LAWS. Increases in income, service or other taxes (other than
real estate taxes) in respect of a Mortgaged Property generally are not passed
through to tenants under leases and may adversely affect the related borrower's
funds from operations. Similarly, changes in laws increasing the potential
liability for environmental conditions existing on properties or increasing the
restrictions on discharges or other conditions may result in significant
unanticipated expenditures, which could adversely affect the borrowers' funds
from operations. See "--Environmental Law Considerations" herein.
UNINSURED LOSS; SUFFICIENCY OF INSURANCE. All the borrowers are required to
maintain various types of casualty insurance with respect to the Mortgaged
Properties. See "Servicing of the Mortgage Loans-- Maintenance of Insurance"
herein. Certain types of losses, however, may be either uninsurable or not
economically insurable, such as losses due to riots or acts of war or
earthquakes. Should an uninsured loss occur, a borrower could lose both its
investment in and its anticipated profits and cash flow from its Mortgaged
Property, which would adversely affect the borrower's ability to make payments
under its Mortgage Loan. In addition, there is a possibility of casualty losses
with respect to the Mortgaged Property for which Insurance Proceeds may not be
adequate. There can be no assurance that any loss incurred will not exceed the
limits of policies obtained. In addition, although the Mortgage Loan Seller
required that probable or bounded maximum loss studies be conducted for all of
the 21 Mortgaged Properties located in the State of California, earthquake
insurance is generally not required to be maintained by a borrower, even in
respect of Mortgaged Properties located in California. See "Description of the
Mortgage Pool-- Certain Terms and Conditions of the Mortgage Loans--Earthquake
Analyses" herein.
GEOGRAPHIC CONCENTRATION. Repayments by the borrowers and the market value
of the Mortgaged Properties could be affected by economic conditions in regions
where the Mortgaged Properties are located, conditions in the real estate
markets where the Mortgaged Properties are located, changes in governmental
rules and fiscal policies, acts of nature (which may result in uninsured losses)
and other factors particular to the locales of the respective Mortgaged
Properties.
The Mortgaged Properties are located in 36 states. However, 31 of the
Mortgaged Properties, representing security for 9.7% of the Initial Pool
Balance, are located in Florida; 36 of the Mortgaged Properties, representing
security for 9.6% of the Initial Pool Balance are located in Texas; 19 of the
Mortgaged Properties, representing security for 8.7% of the Initial Pool
Balance, are located in New York; 21 of the Mortgaged Properties, representing
security for 8.2% of the Initial Pool Balance, are located in California; seven
of the Mortgaged Properties, representing security for 5.9% of the Initial Pool
Balance are located in Maryland; and nine of the Mortgaged Properties,
representing security for 5.9% of the Initial Pool Balance, are located in
Pennsylvania.
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The economy of any state or region in which a Mortgaged Property is located
may be adversely affected to a greater degree than that of other areas of the
country by certain developments affecting industries concentrated in such state
or region. To the extent that a decline occurs in general economic or other
relevant conditions in states or regions in which Mortgaged Properties securing
significant portions of the aggregate unpaid principal balance of the Mortgage
Pool are located, resulting in a decrease in the consumer demand for commercial
property and/or housing in the region, the income from and market value of such
Mortgaged Properties may be adversely affected.
HIGHER THAN AVERAGE BALANCES. Certain groups of Cross-Collateralized
Mortgage Loans (as defined herein) and several of the individual Mortgage Loans
have Cut-off Date Balances that are substantially higher than the average
Cut-off Date Balance. See Annex A hereto. In mortgage pools with concentrations
of loans having larger-than-average balances, adverse circumstances relating to
an individual loan or group of cross-collateralized loans (such as a default or
the occurrence of a material casualty event with respect to a related mortgaged
property) having a larger-than-average balance can result in losses that are
more severe, relative to the size of the pool, than would be the case if the
aggregate balance of such pool were more evenly distributed.
RISK OF CHANGES IN CONCENTRATIONS. If and as payments in respect of
principal (including any voluntary principal prepayments and the principal
portion of any Liquidation Proceeds, Condemnation Proceeds and Insurance
Proceeds) are received with respect to the Mortgage Loans, the remaining
Mortgage Loans as a group may exhibit increased concentration with respect to
the type of properties, property characteristics, number of borrowers and
affiliated borrowers and geographic location. Because principal of the
Sequential Pay Certificates is payable in sequential order, such Classes that
have a lower sequential priority are relatively more likely to be exposed to any
risks associated with changes in concentrations of loan or property
characteristics.
ZONING COMPLIANCE. Due to, among other reasons, changes in applicable
building and zoning ordinances and codes ("Zoning Laws") affecting certain of
the Mortgaged Properties which have come into effect after the construction of
improvements on such Mortgaged Properties, certain improvements may not comply
fully with current Zoning Laws, including density, use, parking and set back
requirements, but qualify as permitted non-conforming uses and/or structures.
Such changes may limit the ability of the borrower to rebuild the premises "as
is" in the event of a substantial casualty loss with respect thereto.
NONRECOURSE MORTGAGE LOANS. The Mortgage Loans are not insured or
guaranteed by any governmental entity or private mortgage insurer. The Depositor
has not undertaken any evaluation of the significance of the recourse provisions
of Mortgage Loans that may permit recourse against the related borrower or
another person in the event of a default. Accordingly, investors should consider
all of the Mortgage Loans to be nonrecourse loans as to which recourse in the
case of default will be limited to the related Mortgaged Property.
ENVIRONMENTAL LAW CONSIDERATIONS. Contamination of real property may give
rise to a lien on that property to assure payment of the cost of clean-up or, in
certain circumstances, may result in liability to the lender for that cost. Such
contamination may also reduce the value of a property. A "Phase I" environmental
site assessment was performed at each of the Mortgaged Properties. See
"Description of the Mortgage Pool--Assessments of Property
Condition--Environmental Assessments" herein.
The Pooling and Servicing Agreement requires that the Special Servicer
obtain an environmental site assessment of a Mortgaged Property prior to taking
possession of the property through foreclosure or otherwise or assuming control
of its operation. Such requirement effectively precludes enforcement of the
security for the related Mortgage Note until a satisfactory environmental site
assessment is obtained (or until any required remedial action is thereafter
taken), but will decrease the likelihood that the Trust Fund will become liable
for a material adverse environmental condition at the Mortgaged Property.
However, there can be no assurance that the requirements of the Pooling and
Servicing Agreement will effectively
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insulate the Trust Fund from potential liability for a materially adverse
environmental condition at any Mortgaged Property. See "Servicing of the
Mortgage Loans--Realization Upon Defaulted Mortgage Loans; Sale of Defaulted
Mortgage Loans and REO Properties" herein and "Risk Factors--Environmental
Risks" and "Certain Legal Aspects of Mortgage Loans--Environmental Matters" in
the Prospectus.
BALLOON PAYMENTS AND ANTICIPATED REPAYMENT DATES. One hundred seventy-five
(175) of the Mortgage Loans, representing 61.3% of the Initial Pool Balance,
will have substantial payments (that is, Balloon Payments) due at their
respective stated maturities, in each case unless the Mortgage Loan is
previously prepaid. In addition, 61 of the Mortgage Loans, representing 30.9% of
the Initial Pool Balance, are ARD Loans which will have substantial scheduled
principal balances as of their respective Anticipated Repayment Dates, in each
case unless the Mortgage Loan is previously prepaid. One hundred sixteen (116)
of the Balloon Loans and 36 of the ARD Loans, representing in the aggregate
55.6% of the Initial Pool Balance, will have Balloon Payments due or Anticipated
Repayment Dates scheduled, as the case may be, during the period from July 2007
through January 2008. Mortgage Loans with Balloon Payments involve a greater
risk to the lender than fully amortizing loans, because the ability of a
borrower to make a Balloon Payment typically will depend upon its ability either
to refinance the loan or to sell the related Mortgaged Property at a price
sufficient to permit the borrower to make the Balloon Payment. Similarly, the
ability of a borrower to repay an ARD Loan on the related Anticipated Repayment
Date will depend on its ability to either refinance the Mortgage Loan or to sell
the related Mortgaged Property. The ability of a borrower to accomplish either
of these goals will be affected by a number of factors occurring at the time of
attempted sale or refinancing, including the level of available mortgage rates,
the fair market value of the property, the borrower's equity in the related
property, the financial condition of the borrower and operating history of the
property, tax laws, prevailing economic conditions and the availability of
credit for multifamily or commercial properties, as the case may be. See
"Description of the Mortgage Pool--Certain Terms and Conditions of the Mortgage
Loans" herein.
In order to maximize recoveries on defaulted Mortgage Loans, the Pooling and
Servicing Agreement permits the Special Servicer to extend and modify Mortgage
Loans that are in material default or as to which a payment default (including
the failure to make a Balloon Payment) is imminent; subject, however, to the
limitations described under "Servicing of the Mortgage Loans--Modifications,
Waivers and Amendments" and "--The Controlling Class Representative" herein.
There can be no assurance, however, that any such extension or modification will
increase the present value of recoveries in a given case. Any delay in
collection of a Balloon Payment that would otherwise be distributable in respect
of a Class of Offered Certificates, whether such delay is due to borrower
default or to modification of the related Mortgage Loan, will likely extend the
weighted average life of such Class of Offered Certificates. See "Yield and
Maturity Considerations" herein and in the Prospectus.
RISK OF SUBORDINATED DEBT. To the Depositor's knowledge, only one of the
Mortgaged Properties, representing security for a Mortgage Loan with a Cut-off
Date Balance of $16,166,316, is encumbered by $1,674,675 of subordinated debt.
The existence of subordinated debt encumbering any Mortgaged Property may
increase the difficulty of refinancing the related Mortgage Loan at maturity and
the possibility that reduced cash flow could result in deferred maintenance.
Also, in the event that the holder of the subordinated debt has filed for
bankruptcy or been placed in involuntary receivership, foreclosing on the
Mortgaged Property could be delayed. See "Certain Legal Aspects of Mortgage
Loans--Secondary Financing; Due-On-Encumbrance Provisions" in the Prospectus. In
addition, in several cases, ownership interests in certain borrowers under the
Mortgage Loans have been pledged to secure debt of the related principals.
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DESCRIPTION OF THE MORTGAGE POOL
GENERAL
The Mortgage Pool will consist of 259 Mortgage Loans, with an Initial Pool
Balance of $1,727,817,629, which equals the aggregate Cut-off Date Balance of
such Mortgage Loans. The Cut-off Date Balances of the Mortgage Loans range from
$613,738 to $62,467,513, and the Mortgage Loans have an average Cut-off Date
Balance of $6,671,111. FOR PURPOSES OF CALCULATIONS HEREIN, AS SHOWN ON ANNEX A
HERETO, EACH OF THE MORTGAGE LOANS IS DEEMED TO BE SECURED BY ONE MORTGAGED
PROPERTY, WHETHER OR NOT SUCH MORTGAGED PROPERTY IS COMPRISED OF MORE THAN ONE
PARCEL. IN THE CASE OF MORTGAGE LOANS SECURED BY MULTIPLE MORTGAGED PROPERTIES
LOCATED IN MORE THAN ONE STATE, SUCH MORTGAGED PROPERTIES ARE, FOR PURPOSES OF
CALCULATIONS HEREIN, DEEMED TO BE LOCATED ONLY IN THE STATE OF THE MORTGAGED
PROPERTY OR PROPERTIES HAVING THE HIGHEST APPRAISED VALUE. ALL NUMERICAL
INFORMATION PROVIDED HEREIN WITH RESPECT TO THE MORTGAGE LOANS IS PROVIDED ON AN
APPROXIMATE BASIS. ALL WEIGHTED AVERAGE INFORMATION PROVIDED HEREIN WITH RESPECT
TO THE MORTGAGE LOANS REFLECTS WEIGHTING BY RELATED CUT-OFF DATE BALANCE. ALL
PERCENTAGES OF THE MORTGAGE POOL, OR ANY SPECIFIED SUB-GROUP THEREOF, REFERRED
TO HEREIN WITHOUT FURTHER DESCRIPTION ARE APPROXIMATE PERCENTAGES BY AGGREGATE
CUT-OFF DATE BALANCE.
Each of the Mortgage Loans is evidenced by a promissory note (each a
"Mortgage Note") and secured by a mortgage, deed of trust or other similar
security instrument (a "Mortgage") that creates a first mortgage lien on the
related borrower's fee simple estate (or, in the case of 12 Mortgage Loans,
representing 4.4% of the Initial Pool Balance, on the related borrower's
leasehold estate) in an income-producing real property (each, a "Mortgaged
Property").
Set forth below are the number of Mortgage Loans, and the approximate
percentage of the Initial Pool Balance represented by such Mortgage Loans, that
are secured by Mortgaged Properties operated for each indicated purpose:
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE OF
MORTGAGE INITIAL POOL
PROPERTY TYPE LOANS BALANCE
- - --------------------------------------------------------------- ------------- ---------------
<S> <C> <C>
Retail......................................................... 103 46.0%
Multifamily.................................................... 74 24.6%
Office......................................................... 49 15.0%
Hospitality.................................................... 9 6.5%
Industrial/Warehouse........................................... 16 5.7%
Health Care.................................................... 3 1.3%
Self Storage................................................... 3 0.6%
Mobile Home Park............................................... 1 0.2%
Parking Garage................................................. 1 0.1%
</TABLE>
The Mortgaged Properties are located throughout 36 states. Set forth below
are the number of Mortgage Loans, and the approximate percentage of the Initial
Pool Balance represented by such Mortgage Loans, that are secured by Mortgaged
Properties located in the states with concentrations of Mortgage Loans above
5.0% (based on Cut-off Date Balance):
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE OF
MORTGAGE INITIAL POOL
STATE LOANS BALANCE
- - --------------------------------------------------------------- --------------- ---------------
<S> <C> <C>
Florida........................................................ 31 9.7%
Texas.......................................................... 36 9.6%
New York....................................................... 19 8.7%
California..................................................... 21 8.2%
Maryland....................................................... 7 5.9%
Pennsylvania................................................... 9 5.9%
</TABLE>
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No Mortgage Loan or group of Mortgage Loans to one borrower or group of
affiliated borrowers exceeds 3.62% of the Initial Pool Balance. See
"--Additional Mortgage Loan Information."
In the case of one Mortgage Loan, which represents 3.62% of the Initial Pool
Balance, an affiliate of the Depositor and the Underwriter controls a general
partner of the related borrower. In addition, an affiliate of the Depositor and
the Underwriter is providing $24,500,000 of mezzanine financing to principals of
the Mortgage Loan borrower. Upon a default under the mezzanine loan, the
mezzanine lender could become the managing general partner of the Mortgage Loan
borrower.
MORTGAGE LOAN HISTORY
The Mortgage Loans will be acquired by the Depositor from the Mortgage Loan
Seller, which either originated each Mortgage Loan or acquired it in connection
with its commercial and multifamily mortgage loan conduit program. All of the
Mortgage Loans were originated in 1997 or 1998.
None of the Mortgage Loans was 30 days or more delinquent in respect of any
scheduled payment of principal and interest as of the Cut-off Date, and no
Mortgage Loan has been more than 30 days delinquent in respect of any scheduled
payment of principal and interest during the 12 months preceding the Cut-off
Date.
CERTAIN TERMS AND CONDITIONS OF THE MORTGAGE LOANS
MORTGAGE RATES; CALCULATIONS OF INTEREST. All of the Mortgage Loans bear
interest at Mortgage Rates that will remain fixed for their remaining terms,
except that, after their respective Anticipated Repayment Dates, the ARD Loans
will accrue interest at a higher rate per annum as described below. As used
herein, the term "Mortgage Rate" does not include the incremental increase in
the rate at which interest may accrue on any ARD Loan after its Anticipated
Repayment Date. See "--ARD Loans" below. Sixty-six (66) of the Mortgage Loans,
representing 23.7% of the Initial Pool Balance, accrue interest on the basis of
a 360-day year consisting of twelve 30-day months (a "30/360 basis"), and 193 of
the Mortgage Loans, representing 76.3% of the Initial Pool Balance, accrue
interest on the basis of the actual number of days elapsed over a 360 day year
(an "Actual/360 basis").
DUE DATES. All of the Mortgage Loans have Due Dates (that is, the dates
upon which the related Monthly Payments first become due) that occur on the
first day of each month.
ARD LOANS. Sixty-one (61) of the Mortgage Loans (the "ARD Loans"),
representing 30.9% of the Initial Pool Balance, provide for changes in their
payments and their accrual of interest if, in each such case, the particular
Mortgage Loan is not paid in full by a specified date (the "Anticipated
Repayment Date"). Each ARD Loan will bear interest at its related Mortgage Rate
until its Anticipated Repayment Date. Commencing on the respective Anticipated
Repayment Date, each ARD Loan will bear interest at a fixed per annum rate (the
"Revised Rate") generally equal to the greater of the related Mortgage Rate plus
two or more percentage points and the then current applicable treasury rate plus
two or more percentage points. The interest accrued at the excess of the Revised
Rate over the Mortgage Rate (such interest, the "Additional Interest"; and such
difference in rate, the "Additional Interest Rate") will be deferred until the
principal of such Mortgage Loan is paid in full and, in some cases, may itself
accrue interest at the Revised Rate. Non-payment of such Additional Interest
will not constitute a default under such Mortgage Loan prior to the related
maturity date. Prior to the Anticipated Repayment Date, borrowers under ARD
Loans will be required to enter into a lockbox agreement whereby all revenue
will be deposited directly into a designated account (the "Lockbox Account")
controlled by the Master Servicer. From and after the Anticipated Repayment
Date, in addition to paying interest (at the Mortgage Rate) and principal (based
on the amortization schedule), the related borrower generally will be required
to apply all remaining monthly cash flow from the related Mortgaged Property, if
any, after paying all permitted operating expenses and capital expenditures, to
pay principal on the Mortgage Loan until the Mortgage Loan is paid in full. As
described below, ARD Loans generally permit the related borrower to
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prepay the Mortgage Loan without payment of a Prepayment Premium or Yield
Maintenance Charge beginning three to six months prior to the Anticipated
Repayment Date. The Anticipated Repayment Date for each ARD Loan is listed in
Annex A.
AMORTIZATION OF PRINCIPAL. One hundred seventy-five (175) of the Mortgage
Loans (the "Balloon Loans"), representing 61.3% of the Initial Pool Balance,
provide for Monthly Payments based on amortization schedules significantly
longer than their respective terms to maturity. Sixty-one (61) of the Mortgage
Loans, representing 30.9% of the Initial Pool Balance, are ARD Loans.
Twenty-three (23) of the Mortgage Loans, representing 7.8% of the Initial Pool
Balance, are self-amortizing. See "Risk Factors-- Balloon Payments and
Anticipated Repayment Dates" herein.
PREPAYMENT PROVISIONS. As of the Cut-off Date, all of the Mortgage Loans
restrict or prohibit voluntary principal prepayments in one of the following
ways: (i) 258 Mortgage Loans, representing 98.9% of the Initial Pool Balance,
currently prohibit voluntary prepayments of principal for a period (a "Lockout
Period") ending on a date specified in the related Mortgage Note and thereafter,
in general, require that prepayments made for most of their respective terms to
maturity be accompanied by a Prepayment Premium and/or Yield Maintenance Charge
in excess of the amount prepaid and, in some cases, with respect to Defeasance
Loans (as defined below), require the pledging of Defeasance Collateral (also as
defined below); and (ii) one Mortgage Loan, representing 1.1% of the Initial
Pool Balance, currently permits voluntary principal payments provided that the
prepayment is accompanied by a Yield Maintenance Charge or a Prepayment Premium
for most of their respective terms to maturity. With respect to the 69 Mortgage
Loans which impose Yield Maintenance Charges, 68 of such Mortgage Loans
(representing 22.2% of the Initial Pool Balance) provide for the calculation of
the Yield Maintenance Charge using a discount rate equal to the applicable
Treasury Rate (as set forth in the related Mortgage Note), and one of such
Mortgage Loans (representing 0.7% of the Initial Pool Balance) provides for the
calculation of the Yield Maintenance Charge using a discount rate equal to the
applicable Treasury Rate plus 0.35%. See "-- Additional Mortgage Loan
Information" herein. Prepayment Premiums and Yield Maintenance Charges, if and
to the extent collected, will be distributed to the holders of the Offered
Certificates as and to the extent described herein under "Description of the
Certificates--Distributions--Allocation of Prepayment Premiums and Yield
Maintenance Charges". Neither the Depositor nor the Underwriter makes any
representation as to the enforceability of the provisions of any Mortgage Note
requiring the payment of a Prepayment Premium or Yield Maintenance Charge, or of
the collectability of any Prepayment Premium or Yield Maintenance Charge.
One hundred seventy-eight (178) of the Mortgage Loans (the "Defeasance
Loans"), representing 71.7% of the Initial Pool Balance, provide that the holder
of the Mortgage, following notice from the borrower that the borrower intends to
prepay the Mortgage Loan as permitted by the related Mortgage Note, may require
the borrower, in lieu of prepayment, to pledge to such holder "Defeasance
Collateral" and thereupon obtain a release of the Mortgaged Property from the
lien of the related Mortgage. In general, "Defeasance Collateral" is required to
consist of direct, non-callable United States Treasury obligations that provide
for payments prior, but as close as possible, to all successive Due Dates
(including the scheduled maturity date), with each such payment being equal to
or greater than (with any excess to be returned to the borrower) the Monthly
Payment (including, in the case of the scheduled maturity date, any Balloon
Payment) due on such date. The Pooling and Servicing Agreement will require the
Master Servicer or the Special Servicer to require each borrower under a
Defeasance Loan that proposes to prepay its Mortgage Loan to pledge instead
Defeasance Collateral, but in each case subject to certain conditions, including
(i) that the defeasance would not have an adverse effect on the REMIC status of
any of REMIC I, REMIC II or REMIC III (accordingly, no defeasance would be
required prior to the second anniversary of the Closing Date) and (ii) receipt
of confirmation from each Rating Agency that acceptance of a pledge of the
Defeasance Collateral in lieu of a full prepayment will not result in a
qualification, downgrade or withdrawal of any rating then assigned by it to any
Class of Certificates.
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Neither the Master Servicer nor the Special Servicer will be permitted to
waive or modify the terms of any Mortgage Loan prohibiting voluntary prepayments
during a Lockout Period or requiring the payment of a Prepayment Premium or
Yield Maintenance Charge except under the circumstances described in "Servicing
of the Mortgage Loans--Modifications, Waivers and Amendments" herein.
SECONDARY FINANCING. To the Depositor's knowledge, only one of the
Mortgaged Properties, representing security for a Mortgage Loan with a Cut-off
Date Balance of $16,166,316, is encumbered by subordinated debt in the amount of
$1,674,675. All of the Mortgage Loans either prohibit the related borrower from
encumbering the Mortgaged Property with additional secured debt or require the
lender's consent prior to so encumbering such property. See "--Due-on-Sale and
Due-on-Encumbrance Provisions" below.
NONRECOURSE OBLIGATIONS. The Mortgage Loans are generally nonrecourse
obligations of the related borrowers and, upon any such borrower's default in
the payment of any amount due under the related Mortgage Loan, the holder
thereof may look only to the related Mortgaged Property for satisfaction of the
borrower's obligations. In addition, in those cases where recourse to a borrower
or guarantor is purportedly permitted, the Depositor has not undertaken an
evaluation of the financial condition of any such person, and prospective
investors should thus consider all of the Mortgage Loans to be nonrecourse.
"DUE-ON-SALE" AND "DUE-ON-ENCUMBRANCE" PROVISIONS. All of the Mortgages
contain "due-on-sale" and "due-on-encumbrance" clauses that, in general, permit
the holder of the Mortgage to accelerate the maturity of the related Mortgage
Loan if the borrower sells or otherwise transfers or encumbers the related
Mortgaged Property or prohibit the borrower from doing so without the consent of
the holder of the Mortgage. However, subject to the satisfaction of certain
specified conditions, certain of the Mortgage Loans permit one or more transfers
of the related Mortgaged Property. As provided in the Pooling and Servicing
Agreement, the Master Servicer or the Special Servicer, on behalf of the Trust
Fund, will determine, in a manner consistent with the Servicing Standard (as
defined herein) whether to exercise any right the holder of any Mortgage may
have under any such clause to accelerate payment of the related Mortgage Loan
upon, or to withhold its consent to, any transfer or further encumbrance of the
related Mortgaged Property. See "Risk Factors--Enforceability" in the
Prospectus.
CROSS-DEFAULT AND CROSS-COLLATERALIZATION OF CERTAIN MORTGAGE LOANS. The
Mortgage Pool includes ten separate sets of mortgage loans (the
"Cross-Collateralized Mortgage Loans"), representing 1.3%, 1.1%, 0.8%, 0.8%,
0.6%, 0.3%, 0.3%, 0.3%, 0.1% and 0.1%, respectively, of the Initial Pool
Balance, that are, solely as among the mortgage loans in each such particular
set, cross-collateralized and cross-defaulted with each other as indicated in
Annex A. With respect to any such set of Cross-Collateralized Mortgage Loans,
the mortgage loans therein will be treated as separate "Mortgage Loans" if their
monetary terms differ and as a single "Mortgage Loan" if their monetary terms
are identical. No Mortgage Loans are cross-collateralized or cross-defaulted
with any loans which are not included in the Mortgage Pool. The Master Servicer
or the Special Servicer, as the case may be, will determine whether to enforce
the cross-default and cross-collateralization rights upon a default with respect
to any of such Cross-Collateralized Mortgage Loans. The Certificateholders will
not have any right to participate in or control any such determination. No other
Mortgage Loans are subject to cross-collateralization or cross-default
provisions.
ASSESSMENTS OF PROPERTY CONDITION
PROPERTY INSPECTIONS. All of the Mortgaged Properties were inspected in
connection with the origination or acquisition of the related Mortgage Loans to
assess their general condition. No inspection revealed any patent structural
deficiency or any deferred maintenance considered material and adverse to the
interests of the holders of the Offered Certificates and for which adequate
reserves have not been established.
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<PAGE>
APPRAISALS. All of the Mortgaged Properties were appraised by a state
certified appraiser or an appraiser belonging to the Appraisal Institute. The
primary purpose of each appraisal was to provide an opinion of the fair market
value of the related Mortgaged Property. There can be no assurance that another
appraiser would have arrived at the same opinion of value.
ENVIRONMENTAL ASSESSMENTS. A "Phase I" environmental site assessment was
performed with respect to all the Mortgaged Properties in connection with the
origination of the related Mortgage Loans. In certain cases, additional
environmental testing, as recommended by such "Phase I" assessment, was
performed. In each case where environmental assessments recommended remediation,
the originator determined that the necessary remediation had been undertaken in
a satisfactory manner, was being undertaken in a satisfactory manner or that
such remediation would be adequately addressed post-closing. In some instances,
the originator required that reserves be established to cover the estimated cost
of such remediation. In two cases, such reserves exceeded $100,000.
ENGINEERING ASSESSMENTS. In connection with the origination of each
Mortgage Loan, a licensed engineer inspected the related Mortgaged Property to
assess the structure, exterior walls, roofing, interior structure and mechanical
and electrical systems. The resulting reports indicated certain deferred
maintenance items and/or recommended capital improvements with respect to
certain of the Mortgaged Properties. Generally, with respect to such Mortgaged
Properties, the related borrowers were required to deposit with the lender an
amount equal to at least 125% of the licensed engineer's estimated cost of the
recommended repairs, corrections or replacements to assure their completion.
EARTHQUAKE ANALYSES. An architectural and engineering consultant performed
an analysis on all of the 21 Mortgaged Properties located in the State of
California in order to evaluate the structural and seismic condition of the
property and to assess, based primarily on statistical information, the maximum
probable or bounded loss for the property in an earthquake scenario. The
resulting reports, which were prepared not earlier than March 1997, concluded
that in the event of an earthquake, only one of such Mortgaged Properties is
likely to suffer a maximum probable or bounded loss in excess of 20% of the
amount of the estimated replacement cost of the improvements. Such Mortgaged
Property is covered by earthquake insurance in an amount at least equal to the
outstanding principal balance of the related Mortgage Loan and is required to be
covered by such insurance through the maturity date thereof.
ADDITIONAL MORTGAGE LOAN INFORMATION
THE MORTGAGE POOL. For a detailed presentation of certain of the
characteristics of the Mortgage Loans and the Mortgaged Properties, on an
individual basis, see Annex A hereto. Certain additional information regarding
the Mortgage Loans is contained herein under "--Assignment of the Mortgage
Loans; Repurchases" and "--Representations and Warranties; Repurchases," and in
the Prospectus under "Security for the Bonds and Certificates" and "Certain
Legal Aspects of Mortgage Loans."
Each of the following tables sets forth certain characteristics of the
Mortgage Pool presented, where applicable, as of the Cut-off Date. For purposes
of the tables and Annex A:
(i) References to "DSC Ratio" are references to debt service coverage
ratios. Debt service coverage ratios are used by income property lenders to
measure the ratio of (a) cash currently generated by a property that is
available for debt service (that is, cash that remains after average cost of
non-capital expenses of operation, tenant improvements, leasing commissions
and replacement reserves during the term of the mortgage loan) to (b)
required debt service payments. However, debt service coverage ratios only
measure the current, or recent, ability of a property to service mortgage
debt. The DSC Ratio for any Mortgage Loan is the ratio of "Net Cash Flow"
produced by the related Mortgaged Property to the annualized amount of debt
service that will be payable under that Mortgage Loan commencing after the
origination date. The Net Cash Flow for a Mortgaged Property is the "net
cash flow" of such Mortgaged Property as set forth in, or determined by the
Mortgage
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Loan Seller on the basis of, Mortgaged Property operating statements,
generally unaudited, supplied by the related borrower and, in the case of
multifamily, retail, mobile home park, industrial/ warehouse, self storage
and office properties (each a "Rental Property"), certified rent rolls (as
applicable) supplied by the related borrower. In general, the Mortgage Loan
Seller relied on full year operating statements, rolling 12-month operating
statements and/or applicable year-to-date financial statements, if
available, and on rent rolls (for all Rental Properties) that were current
as of a date not earlier than six months prior to the respective date of
origination in determining Net Cash Flow for the Mortgaged Properties.
References to "Cut-off Date DSC Ratio" are references to the DSC Ratio as of
the Cut-off Date.
In general, "net cash flow" is the revenue derived from the use and
operation of a Mortgaged Property less operating expenses (such as
utilities, administrative expenses, repairs and maintenance, tenant
improvement costs, leasing commissions, management fees and advertising),
fixed expenses (such as insurance, real estate taxes and, if applicable,
ground lease payments) and replacement reserves and an allowance for
vacancies and credit losses. Net cash flow does not reflect interest
expenses and non-cash items such as depreciation and amortization, and
generally does not reflect capital expenditures, but does reflect reserves
for replacements and an allowance for vacancies and credit losses.
In determining the "revenue" component of Net Cash Flow for each Rental
Property, the Mortgage Loan Seller generally relied on the most recent rent
roll (as applicable) supplied and, where the actual vacancy shown thereon
and the market vacancy was less than 5.0%, assumed a 5.0% vacancy in
determining revenue from rents, except that in the case of the Mortgaged
Properties securing certain anchored shopping centers and certain single
tenant properties, space occupied by such anchor or single tenants may have
been disregarded in performing the vacancy adjustment due to the length of
the related leases or creditworthiness of such tenants, in accordance with
the Mortgage Loan Seller's underwriting standards. In determining rental
revenue for multifamily, self storage and mobile home park properties, the
Mortgage Loan Seller either reviewed rental revenue shown on the certified
rolling 12-month operating statements or annualized the rental revenue and
reimbursement of expenses shown on rent rolls or operating statements with
respect to the prior one to twelve month periods. For the other Rental
Properties, the applicable Mortgage Loan Seller generally annualized rental
revenue shown on the most recent certified rent roll (as applicable), after
applying the vacancy factor, without further regard to the terms (including
expiration dates) of the leases shown thereon. In the case of hospitality
properties, gross receipts were determined on the basis of historical
operating levels shown on the borrower-supplied 12-month trailing operating
statements. In the case of residential health care facilities, receipts were
based on historical occupancy levels, historical operating revenues and the
then current occupancy rates (with private occupancy rates within the then
current market ranges and vacancy levels at a minimum of 5%). In general,
any non-recurring items and non-property related revenue were eliminated
from the calculation except in the case of residential health care
facilities.
In determining the "expense" component of Net Cash Flow for each
Mortgaged Property, the Mortgage Loan Seller generally relied on full-year
or year-to-date financial statements, rolling 12-month operating statements
and/or year-to-date financial statements supplied by the related borrower,
except that (a) if tax or insurance expense information more current than
that reflected in the financial statements was available, the newer
information was used, (b) property management fees were generally assumed to
be 4% to 5% of effective gross revenue (except with respect to hospitality
properties, where a minimum of 4% of gross receipts was assumed, and except
with respect to the Mortgaged Properties securing certain single tenant
properties, where fees as low as 2% of effective gross receipts were
assumed), (c) assumptions generally were made with respect to reserves for
leasing commissions, tenant improvement expenses and capital expenditures
and (d) expenses were generally assumed to include annual replacement
reserves equal to (1) in the case of retail, office and industrial/
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warehouse properties, not less than $0.09 and not more than $0.47 per square
foot net rentable commercial area, (2) in the case of multifamily
properties, not less than $150 or more than $403 per residential unit per
year, depending on the condition of the property, (3) in the case of
hospitality properties, generally 4% of the gross revenues received by the
property owner on an ongoing basis, (4) in the case of residential
healthcare facilities, $257 to $350 per bed per year, (5) in the case of the
mobile home parks, $35 per pad per year and (6) in the case of self storage
facilities, not less than $0.10 or more than $0.20 per square foot per year.
In addition, in some instances, the Mortgage Loan Seller recharacterized as
capital expenditures those items reported by borrowers as operating expenses
(thus increasing "net cash flow") where the Mortgage Loan Seller determined
appropriate.
THE BORROWERS' FINANCIAL INFORMATION USED TO DETERMINE NET CASH FLOW WAS
IN MOST CASES UNAUDITED, AND NEITHER THE MORTGAGE LOAN SELLER NOR THE
DEPOSITOR VERIFIED THEIR ACCURACY.
(ii) References to "Cut-off Date LTV Ratio" are references to the ratio,
expressed as a percentage, of the Cut-off Date Balance of a Mortgage Loan to
the appraised value of the related Mortgaged Property as shown on the most
recent third-party appraisal thereof available to the Mortgage Loan Seller.
(iii) References to "Maturity Date LTV Ratio" are references to the
ratio, expressed as a percentage, of the expected balance of a Balloon Loan
on its scheduled maturity date (prior to the payment of any Balloon Payment)
to the appraised value of the Mortgaged Property as shown on the most recent
third-party appraisal thereof available to the related Mortgage Loan Seller
prior to the Cut-off Date.
(iv) References to "Loan per Sq. Ft.," "Unit," "Bed," "Pad" or "Room"
are, for each Mortgage Loan secured by a lien on a multifamily property
(including a mobile home park), hospitality property or healthcare facility,
respectively, references to the Cut-off Date Balance of such Mortgage Loan
divided by the number of dwelling units, pads, guest rooms or beds,
respectively that the related Mortgaged Property comprises, and, for each
Mortgage Loan secured by a lien on a retail, industrial/ warehouse, self
storage or office property, references to the Cut-off Date Balance of such
Mortgage Loan divided by the net rentable square foot area of the related
Mortgaged Property.
(v) References to "Year Built" are references to the year that a
Mortgaged Property was originally constructed or substantially renovated.
With respect to any Mortgaged Property which was constructed in phases, the
"Year Built" refers to the year that the first phase was originally
constructed.
(vi) References to "weighted average" or "wtd. avg."are references to
averages weighted on the basis of the Cut-off Date Balances of the related
Mortgage Loans.
(vii) References to "Underwriting Reserves" represent estimated annual
capital costs, as used by the Mortgage Loan Seller in determining Net Cash
Flow.
(viii) References to "Administrative Cost Rate" for each Mortgage Loan
represent the sum of the Master Servicing Fee Rate for such Mortgage Loan
and the Trustee Fee Rate.
(ix) References to "Original Amortization Term" represent, with respect
to each Mortgage Loan, the number of months from origination to the month in
which such Mortgage Loan would fully amortize in accordance with such loan's
amortization schedule, without regard to any Balloon Payment, if any, due on
such Mortgage Loan and assuming no prepayments of principal and no defaults.
(x) References to "Remaining Amortization Term" represent, with respect
to each Mortgage Loan, the number of months remaining from the Cut-off Date
to the month in which such Mortgage Loan would fully amortize in accordance
with such loan's amortization schedule, without regard to
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any Balloon Payment, if any, due on such Mortgage Loan and assuming no
prepayments of principal and no defaults.
(xi) References to "L(v)" represent, with respect to any Mortgage Loan,
a period of v years during which prepayments of principal are prohibited.
References to "I%(w)" represent, with respect to any Mortgage Loan, a period
of w years during which prepayments of principal are permitted, but must be
accompanied by a Prepayment Premium equal to I% of the principal prepaid.
References to "YM1% (x)" represent, with respect to any Mortgage Loan, a
period of x years during which prepayments of principal are permitted, but
must be accompanied by an amount that constitutes the greater of a Yield
Maintenance Charge and 1.0% of the principal prepaid. References to "YM (y)"
represent, with respect to any Mortgage Loan, a period of y years during
which prepayments of principal are permitted, but must be accompanied by an
amount that constitutes a Yield Maintenance Charge. References to "O(z)"
represent, with respect to any Mortgage Loan, a period of z years during
which prepayments of principal are permitted without the payment of any
Prepayment Premium or Yield Maintenance Charge and no defeasance can be
required. References to "< YMx%" represent, with respect to any Mortgage
Loan, the lesser of (a) an amount that constitutes a Yield Maintenance
Charge and (b) x% of the principal prepaid.
(xii) References to "DEF" represent, with respect to each applicable
Mortgage Loan, the right of the related holder of the Mortgage (i.e. the
Master Servicer on behalf of the Trust Fund for the benefit of the
Certificateholders) to require the related borrower, in lieu of prepayment,
to pledge to such holder Defeasance Collateral during the period in which a
Prepayment Premium or Yield Maintenance Charge is required.
(xiii) References to "Occupancy Percentage" or "Occupancy Rate" are,
with respect to any Mortgaged Property, references to (A) in the case of
multifamily properties and assisted living/ congregate care facilities, the
percentage of units rented, (B) in the case of office and retail properties,
the percentage of the net rentable square footage rented, and (C) in the
case of self-storage facilities, either the percentage of the net rentable
square footage rented or the percentage of units rented (depending on
borrower reporting).
(xiv) References to "Remaining Term to Maturity" are references to the
remaining term to maturity for each Mortgage Loan (or the remaining number
of months to the Anticipated Repayment Date with respect to each ARD Loan).
(xv) References to "Original Term to Maturity" are references to the
term from origination to maturity for each Mortgage Loan (or the term from
origination to the Anticipated Repayment Date with respect to each ARD
Loan).
(xvi) References to "Capital Imp. Reserve" are references to funded
reserves escrowed for repairs, replacements and corrections of issues
outlined in the engineering reports.
(xvii) References to "Replacement Reserve" are references to funded
reserves escrowed for ongoing items such as repairs and replacements,
including, in the case of hospitality properties, reserves for furniture,
fixtures and equipment. In certain cases, however, the subject reserve will
be subject to a maximum amount, and once such maximum amount is reached,
such reserve will not thereafter be funded, except, in some such cases, to
the extent it is drawn upon.
(xviii) References to "TI/LC Reserve" are references to funded reserves
escrowed for tenant improvement allowances and leasing commissions. In
certain cases, however, the subject reserve will be subject to a maximum
amount, and once such maximum amount is reached, such reserve will not
thereafter be funded, except, in some such cases, to the extent it is drawn
upon.
S-45
<PAGE>
(xix) References to "Original Interest-Only Period" are, with respect to
any Mortgage Loan, references to the period following the related
origination date during which Monthly Payments of interest only are
required.
(xx) References to "Remaining Interest-Only Period" are, with respect to
any Mortgage Loan, references to the period following the Cut-off Date
during which Monthly Payments of interest only are required.
The sum in any column of any of the following tables may not equal the
indicated total due to rounding.
S-46
<PAGE>
MORTGAGE LOANS BY STATE
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AGGREGATE % BY AGGREGATE AVERAGE HIGHEST
NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
STATES OF LOANS BALANCE BALANCE BALANCE BALANCE
- - -------------------------------------------- ------------- --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
AL.......................................... 5 $ 21,399,669 1.2% $ 4,279,934 $ 7,991,175
AR.......................................... 2 9,471,056 0.5 4,735,528 6,481,655
AZ.......................................... 11 61,516,077 3.6 5,592,371 10,389,298
CA.......................................... 21 141,750,900 8.2 6,750,043 19,988,861
CO.......................................... 5 18,103,606 1.0 3,620,721 6,569,962
CT.......................................... 11 63,483,908 3.7 5,771,264 18,268,365
DE.......................................... 1 9,483,391 0.5 9,483,391 9,483,391
FL.......................................... 31 167,189,007 9.7 5,393,194 19,962,785
GA.......................................... 9 50,605,849 2.9 5,622,872 13,698,851
IA.......................................... 1 4,075,713 0.2 4,075,713 4,075,713
IL.......................................... 4 50,645,660 2.9 12,661,415 20,360,654
IN.......................................... 7 41,747,745 2.4 5,963,964 12,992,477
KS.......................................... 3 8,747,551 0.5 2,915,850 3,307,992
KY.......................................... 2 7,833,563 0.5 3,916,782 4,095,681
LA.......................................... 1 1,998,192 0.1 1,998,192 1,998,192
MA.......................................... 7 52,710,608 3.1 7,530,087 14,552,151
MD.......................................... 7 101,802,351 5.9 14,543,193 62,467,513
MI.......................................... 1 5,391,781 0.3 5,391,781 5,391,781
MN.......................................... 4 24,274,852 1.4 6,068,713 11,433,232
MO.......................................... 6 36,902,618 2.1 6,150,436 17,767,252
NC.......................................... 4 37,046,126 2.1 9,261,532 11,986,547
NE.......................................... 2 5,235,617 0.3 2,617,809 2,741,584
NJ.......................................... 6 58,367,545 3.4 9,727,924 18,309,365
NV.......................................... 6 70,323,370 4.1 11,720,562 16,086,751
NY.......................................... 19 149,964,407 8.7 7,892,864 22,622,349
OH.......................................... 6 69,858,309 4.0 11,643,051 41,975,309
OK.......................................... 1 4,492,874 0.3 4,492,874 4,492,874
OR.......................................... 2 11,242,128 0.7 5,621,064 6,994,419
PA.......................................... 9 101,156,192 5.9 11,239,577 33,180,421
SC.......................................... 8 25,250,954 1.5 3,156,369 4,444,963
TN.......................................... 8 54,831,685 3.2 6,853,961 18,940,051
TX.......................................... 36 165,355,044 9.6 4,593,196 19,227,633
UT.......................................... 2 30,932,447 1.8 15,466,223 17,944,805
VA.......................................... 5 19,105,712 1.1 3,821,142 7,741,368
WA.......................................... 5 39,527,698 2.3 7,905,540 19,460,119
WV.......................................... 1 5,993,427 0.3 5,993,427 5,993,427
--- --------------- ----- ------------ ------------
Total/Avg/Wtd. Avg./Min/Max:................ 259 $ 1,727,817,629 100.0% $ 6,671,111 $ 62,467,513
--- --------------- ----- ------------ ------------
--- --------------- ----- ------------ ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
STATES LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - -------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
AL.......................................... 74.6% 79.6% 1.35x 1.25x 97.5%
AR.......................................... 59.7 60.9 1.37 1.32 90.9
AZ.......................................... 74.9 80.0 1.31 1.23 98.8
CA.......................................... 73.0 79.9 1.33 1.20 96.8
CO.......................................... 74.4 78.6 1.40 1.26 95.5
CT.......................................... 70.6 76.5 1.31 1.24 91.7
DE.......................................... 77.4 77.4 1.25 1.25 98.4
FL.......................................... 74.2 80.0 1.35 1.20 95.4
GA.......................................... 75.6 79.9 1.32 1.22 97.0
IA.......................................... 74.8 74.8 1.28 1.28 100.0
IL.......................................... 76.0 79.8 1.34 1.23 97.0
IN.......................................... 76.1 79.3 1.33 1.25 96.2
KS.......................................... 72.7 78.0 1.44 1.26 96.0
KY.......................................... 74.8 77.4 1.27 1.24 100.0
LA.......................................... 71.4 71.4 1.36 1.36 84.0
MA.......................................... 72.0 79.5 1.36 1.25 93.9
MD.......................................... 66.9 74.8 1.40 1.31 91.3
MI.......................................... 80.0 80.0 1.35 1.35 99.3
MN.......................................... 70.7 80.0 1.41 1.22 93.6
MO.......................................... 73.8 79.9 1.28 1.22 97.2
NC.......................................... 73.3 74.9 1.28 1.24 93.3
NE.......................................... 73.1 78.8 1.28 1.21 93.9
NJ.......................................... 72.8 80.0 1.31 1.19 97.8
NV.......................................... 78.6 80.0 1.29 1.20 93.2
NY.......................................... 71.4 79.9 1.35 1.23 97.6
OH.......................................... 71.9 79.9 1.32 1.22 98.3
OK.......................................... 66.1 66.1 1.72 1.72 96.3
OR.......................................... 71.1 72.1 1.28 1.26 96.1
PA.......................................... 75.3 80.0 1.27 1.21 95.9
SC.......................................... 70.2 78.8 1.42 1.22 95.8
TN.......................................... 65.4 79.8 1.53 1.20 97.4
TX.......................................... 74.9 79.9 1.37 1.21 94.3
UT.......................................... 72.7 74.8 1.54 1.49 --
VA.......................................... 74.1 79.4 1.34 1.23 95.9
WA.......................................... 73.6 75.0 1.29 1.23 97.4
WV.......................................... 76.8 76.8 1.33 1.33 100.0
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................ 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
WTD.AVG.
MORTGAGE
STATES RATE
- - -------------------------------------------- -----------
AL.......................................... 7.569%
AR.......................................... 7.797
AZ.......................................... 7.711
CA.......................................... 7.696
CO.......................................... 8.204
CT.......................................... 7.947
DE.......................................... 7.650
FL.......................................... 7.530
GA.......................................... 7.621
IA.......................................... 7.440
IL.......................................... 7.514
IN.......................................... 7.388
KS.......................................... 7.387
KY.......................................... 8.232
LA.......................................... 7.990
MA.......................................... 7.475
MD.......................................... 7.692
MI.......................................... 7.390
MN.......................................... 7.522
MO.......................................... 7.505
NC.......................................... 7.456
NE.......................................... 7.926
NJ.......................................... 7.517
NV.......................................... 7.092
NY.......................................... 7.754
OH.......................................... 7.263
OK.......................................... 7.190
OR.......................................... 7.265
PA.......................................... 7.838
SC.......................................... 7.488
TN.......................................... 7.665
TX.......................................... 7.616
UT.......................................... 7.422
VA.......................................... 7.438
WA.......................................... 7.722
WV.......................................... 7.770
-----
Total/Avg/Wtd. Avg./Min/Max:................ 7.603%
-----
-----
</TABLE>
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
S-47
<PAGE>
MORTGAGE LOANS BY PROPERTY TYPE
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AGGREGATE % BY AGGREGATE AVERAGE HIGHEST
NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
PROPERTY TYPE OF LOANS BALANCE BALANCE BALANCE BALANCE
- - ------------------------------------------ ------------- --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retail.................................... 103 $ 794,888,630 46.0% $ 7,717,365 $ 62,467,513
Multifamily............................... 74 424,641,846 24.6 5,738,403 33,180,421
Office.................................... 49 258,522,386 15.0 5,275,967 18,471,844
Hotel..................................... 9 112,298,053 6.5 12,477,561 20,360,654
Industrial/W'hse.......................... 16 97,954,817 5.7 6,122,176 17,735,508
Health Care............................... 3 23,216,532 1.3 7,738,844 9,740,102
Self Storage.............................. 3 11,147,050 0.6 3,715,683 4,656,636
Mobile Home Park.......................... 1 2,900,000 0.2 2,900,000 2,900,000
Parking Garage............................ 1 2,248,317 0.1 2,248,317 2,248,317
--- --------------- ----- ------------ ------------
Total/Avg/Wtd. Avg./Min/Max:.............. 259 $ 1,727,817,629 100.0% $ 6,671,111 $ 62,467,513
--- --------------- ----- ------------ ------------
--- --------------- ----- ------------ ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
PROPERTY TYPE LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - ------------------------------------------ --------------- --------------- --------------- --------------- -------------
<S> <C>
Retail.................................... 73.0% 80.0% 1.33x 1.21x 96.0%
Multifamily............................... 76.8 80.0 1.31 1.19 94.4
Office.................................... 69.5 78.8 1.34 1.24 96.2
Hotel..................................... 71.3 77.4 1.52 1.40 --
Industrial/W'hse.......................... 68.5 80.0 1.39 1.28 98.3
Health Care............................... 75.7 79.6 1.46 1.37 94.2
Self Storage.............................. 66.0 71.8 1.45 1.33 89.4
Mobile Home Park.......................... 75.3 75.3 1.37 1.37 96.0
Parking Garage............................ 72.5 72.5 1.36 1.36 100.0
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:.............. 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
WTD.AVG.
MORTGAGE
PROPERTY TYPE RATE
- - ------------------------------------------ -------------
Retail.................................... 7.683%
Multifamily............................... 7.424
Office.................................... 7.658
Hotel..................................... 7.502
Industrial/W'hse.......................... 7.704
Health Care............................... 7.492
Self Storage.............................. 8.005
Mobile Home Park.......................... 7.110
Parking Garage............................ 7.460
-----
Total/Avg/Wtd. Avg./Min/Max:.............. 7.603%
-----
-----
</TABLE>
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
CUT-OFF DATE DSC RATIOS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
RANGE OF AGGREGATE % BY AGGREGATE AVERAGE HIGHEST
CUT-OFF DATE NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
DSC RATIO (X) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - ------------------------------------------ ------------- --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
1.19-1.24................................. 30 $ 253,348,118 14.7% $ 8,444,937 $ 41,975,309
1.25-1.29................................. 53 426,764,269 24.7 8,052,156 33,180,421
1.30-1.34................................. 65 339,541,702 19.7 5,223,718 22,622,349
1.35-1.39................................. 45 293,148,206 17.0 6,514,405 62,467,513
1.40-1.44................................. 18 116,660,228 6.8 6,481,124 16,451,099
1.45-1.49................................. 20 140,360,211 8.1 7,018,011 20,360,654
1.50-1.54................................. 5 25,479,283 1.5 5,095,857 9,368,860
1.55-1.59................................. 6 45,800,498 2.7 7,633,416 17,944,805
1.60-1.64................................. 3 20,333,977 1.2 6,777,992 10,567,341
1.65-1.69................................. 3 16,709,147 1.0 5,569,716 8,723,040
1.70-1.74................................. 5 13,846,628 0.8 2,769,326 4,492,874
1.80-1.84................................. 2 23,262,611 1.3 11,631,305 18,940,051
1.90-1.94................................. 1 2,696,562 0.2 2,696,562 2,696,562
2.05-2.09................................. 2 8,122,183 0.5 4,061,092 4,625,654
2.10-2.14................................. 1 1,744,007 0.1 1,744,007 1,744,007
--- --------------- ----- ------------ ------------
Total/Avg/Wtd. Avg./Min/Max:.............. 259 $ 1,727,817,629 100.0% $ 6,671,111 $ 62,467,513
--- --------------- ----- ------------ ------------
--- --------------- ----- ------------ ------------
<CAPTION>
RANGE OF WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
DSC RATIO (X) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - ------------------------------------------ --------------- --------------- --------------- --------------- -------------
<S> <C>
1.19-1.24................................. 76.7% 80.0% 1.22x 1.19x 95.8%
1.25-1.29................................. 75.9 80.0 1.27 1.24 96.3
1.30-1.34................................. 71.9 80.0 1.31 1.29 95.4
1.35-1.39................................. 73.6 80.0 1.36 1.34 94.8
1.40-1.44................................. 70.9 79.9 1.41 1.40 97.4
1.45-1.49................................. 72.2 78.7 1.47 1.44 96.1
1.50-1.54................................. 63.9 79.8 1.51 1.49 93.0
1.55-1.59................................. 69.3 74.8 1.57 1.54 95.2
1.60-1.64................................. 65.0 70.0 1.61 1.60 98.1
1.65-1.69................................. 67.1 71.7 1.67 1.67 92.2
1.70-1.74................................. 65.8 68.8 1.72 1.69 94.0
1.80-1.84................................. 51.4 55.4 1.80 1.80 99.2
1.90-1.94................................. 57.4 57.4 1.91 1.91 --
2.05-2.09................................. 43.0 54.4 2.05 2.05 65.0
2.10-2.14................................. 47.8 47.8 2.13 2.13 100.0
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:.............. 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
RANGE OF WTD.AVG.
CUT-OFF DATE MORTGAGE
DSC RATIO (X) RATE
- - ------------------------------------------ -------------
1.19-1.24................................. 7.565%
1.25-1.29................................. 7.497
1.30-1.34................................. 7.767
1.35-1.39................................. 7.583
1.40-1.44................................. 7.551
1.45-1.49................................. 7.571
1.50-1.54................................. 7.961
1.55-1.59................................. 7.618
1.60-1.64................................. 7.463
1.65-1.69................................. 7.816
1.70-1.74................................. 7.342
1.80-1.84................................. 7.908
1.90-1.94................................. 7.970
2.05-2.09................................. 7.567
2.10-2.14................................. 8.200
-----
Total/Avg/Wtd. Avg./Min/Max:.............. 7.603%
-----
-----
</TABLE>
The weighted average Cut-off Date DSCR is 1.35x.
- - ----------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
S-48
<PAGE>
CUT-OFF DATE LTV RATIOS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AVERAGE
RANGE OF AGGREGATE % BY AGGREGATE CUT-OFF HIGHEST
CUT-OFF DATE NUMBER CUT-OFF DATE CUT-OFF DATE DATE CUT-OFF DATE
LTV RATIOS (%) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - --------------------------------------------- ------------- --------------- ----------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
25.01-30.00.................................. 1 $ 3,496,530 0.2% $3,496,530 $ 3,496,530
45.01-50.00.................................. 2 11,112,867 0.6 5,556,434 9,368,860
50.01-55.00.................................. 5 39,677,497 2.3 7,935,499 18,940,051
55.01-60.00.................................. 10 48,476,038 2.8 4,847,604 17,735,508
60.01-65.00.................................. 11 51,313,653 3.0 4,664,878 9,474,950
65.01-70.00.................................. 30 201,412,040 11.7 6,713,735 16,451,099
70.01-75.00.................................. 111 749,274,400 43.4 6,750,220 62,467,513
75.01-80.00.................................. 89 623,054,604 36.1 7,000,614 33,180,421
--- --------------- ----- ----------- ------------
Total/Avg/Wtd. Avg./Min/Max:................. 259 $ 1,727,817,629 100.0% $6,671,111 $ 62,467,513
--- --------------- ----- ----------- ------------
--- --------------- ----- ----------- ------------
<CAPTION>
RANGE OF WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
LTV RATIOS (%) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - --------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
25.01-30.00.................................. 28.0% 28.0% 2.05x 2.05x 65.0%
45.01-50.00.................................. 48.6 48.8 1.61 1.51 96.6
50.01-55.00.................................. 52.5 54.5 1.65 1.32 94.1
55.01-60.00.................................. 58.0 60.0 1.48 1.30 97.4
60.01-65.00.................................. 62.7 64.7 1.43 1.20 95.0
65.01-70.00.................................. 68.1 70.0 1.42 1.24 95.3
70.01-75.00.................................. 73.3 75.0 1.34 1.22 95.7
75.01-80.00.................................. 78.3 80.0 1.29 1.19 95.9
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................. 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
RANGE OF WTD.AVG.
CUT-OFF DATE MORTGAGE
LTV RATIOS (%) RATE
- - --------------------------------------------- -----------
25.01-30.00.................................. 7.220%
45.01-50.00.................................. 8.326
50.01-55.00.................................. 7.806
55.01-60.00.................................. 7.795
60.01-65.00.................................. 7.678
65.01-70.00.................................. 7.808
70.01-75.00.................................. 7.680
75.01-80.00.................................. 7.400
-----
Total/Avg/Wtd. Avg./Min/Max:................. 7.603%
-----
-----
</TABLE>
The weighted average Cut-off Date LTV Ratio is 73.0%.
- - ----------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
MATURITY DATE LTV RATIOS
(ALL BALLOON LOANS)
<TABLE>
<CAPTION>
AVERAGE
RANGE OF AGGREGATE % BY AGGREGATE CUT-OFF HIGHEST
MATURITY DATE NUMBER CUT-OFF DATE CUT-OFF DATE DATE CUT-OFF DATE
LTV RATIOS (%) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - --------------------------------------------- ------------- --------------- ----------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
5.01-10.00................................... 1 $ 1,538,698 0.1% $1,538,698 $ 1,538,698
25.01-30.00.................................. 2 18,365,287 1.7 9,182,643 11,991,271
30.01-35.00.................................. 1 3,657,893 0.3 3,657,893 3,657,893
35.01-40.00.................................. 2 7,130,520 0.7 3,565,260 5,386,513
40.01-45.00.................................. 4 33,579,284 3.2 8,394,821 18,940,051
45.01-50.00.................................. 8 50,872,920 4.8 6,359,115 14,742,098
50.01-55.00.................................. 10 50,061,694 4.7 5,006,169 16,451,099
55.01-60.00.................................. 21 150,198,180 14.2 7,152,294 20,360,654
60.01-65.00.................................. 36 222,296,755 21.0 6,174,910 19,962,785
65.01-70.00.................................. 63 365,178,309 34.5 5,796,481 22,622,349
70.01-75.00.................................. 26 152,392,323 14.4 5,861,243 16,086,751
75.01-80.00.................................. 1 3,268,990 0.3 3,268,990 3,268,990
--- --------------- ----- ----------- ------------
Total/Avg/Wtd. Avg./Min/Max:................. 175 $ 1,058,540,854 100.0% $6,048,805 $ 22,622,349
--- --------------- ----- ----------- ------------
--- --------------- ----- ----------- ------------
<CAPTION>
RANGE OF WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
MATURITY DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
LTV RATIOS (%) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE (1)
- - --------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
5.01-10.00................................... 67.5% 67.5% 1.31x 1.31x 100.0%
25.01-30.00.................................. 74.6 75.0 1.29 1.27 87.9
30.01-35.00.................................. 74.7 74.7 1.30 1.30 100.0
35.01-40.00.................................. 68.2 74.8 1.51 1.31 100.0
40.01-45.00.................................. 51.1 58.2 1.68 1.32 98.3
45.01-50.00.................................. 66.3 74.1 1.41 1.33 93.9
50.01-55.00.................................. 63.8 71.7 1.40 1.31 93.7
55.01-60.00.................................. 71.4 76.5 1.35 1.20 95.3
60.01-65.00.................................. 71.9 79.6 1.40 1.21 94.8
65.01-70.00.................................. 75.0 79.9 1.33 1.20 96.9
70.01-75.00.................................. 79.2 80.0 1.29 1.20 93.8
75.01-80.00.................................. 79.7 79.7 1.32 1.32 97.9
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................. 72.7% 80.0% 1.36x 1.20x 95.5%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
RANGE OF WTD.AVG.
MATURITY DATE MORTGAGE
LTV RATIOS (%) RATE
- - --------------------------------------------- -----------
5.01-10.00................................... 8.080%
25.01-30.00.................................. 7.836
30.01-35.00.................................. 8.040
35.01-40.00.................................. 8.102
40.01-45.00.................................. 8.147
45.01-50.00.................................. 8.150
50.01-55.00.................................. 7.724
55.01-60.00.................................. 7.648
60.01-65.00.................................. 7.711
65.01-70.00.................................. 7.808
70.01-75.00.................................. 7.394
75.01-80.00.................................. 8.280
-----
Total/Avg/Wtd. Avg./Min/Max:................. 7.734%
-----
-----
</TABLE>
- - ----------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
S-49
<PAGE>
MORTGAGE RATES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AGGREGATE % BY AGGREGATE AVERAGE HIGHEST
RANGE OF NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
MORTGAGE RATES (%) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - -------------------------------------------- ------------- --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
6.750-6.999................................. 6 $ 68,106,597 3.9% $ 11,351,099 $ 19,227,633
7.000-7.249................................. 28 232,135,246 13.4 8,290,544 41,975,309
7.250-7.499................................. 73 509,218,174 29.5 6,975,591 20,360,654
7.500-7.749................................. 67 481,472,615 27.9 7,186,158 62,467,513
7.750-7.999................................. 27 132,428,026 7.7 4,904,742 19,460,119
8.000-8.249................................. 35 162,645,152 9.4 4,647,004 22,622,349
8.250-8.499................................. 12 48,560,902 2.8 4,046,742 9,368,860
8.500-8.749................................. 4 37,579,037 2.2 9,394,759 13,325,200
8.750-8.999................................. 4 32,782,533 1.9 8,195,633 16,166,316
9.000-9.249................................. 3 22,889,348 1.3 7,629,783 14,742,098
--- --------------- ----- ------------ ------------
Total/Avg/Wtd. Avg./Min/Max:................ 259 $ 1,727,817,629 100.0% $ 6,671,111 $ 62,467,513
--- --------------- ----- ------------ ------------
--- --------------- ----- ------------ ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
RANGE OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
MORTGAGE RATES (%) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - -------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
6.750-6.999................................. 78.8% 79.9% 1.33x 1.23x 93.2%
7.000-7.249................................. 74.6 80.0 1.30 1.19 96.6
7.250-7.499................................. 74.4 80.0 1.35 1.20 96.3
7.500-7.749................................. 73.6 80.0 1.33 1.20 94.8
7.750-7.999................................. 68.6 77.8 1.39 1.23 94.9
8.000-8.249................................. 68.4 79.4 1.43 1.20 97.1
8.250-8.499................................. 67.8 79.7 1.39 1.24 95.1
8.500-8.749................................. 73.0 75.2 1.27 1.20 97.0
8.750-8.999................................. 71.2 74.7 1.27 1.24 91.5
9.000-9.249................................. 69.1 73.4 1.34 1.30 97.5
--- --- --- --- ---
Total/Avg/Wtd. Avg./Min/Max:................ 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- ---
--- --- --- --- ---
<CAPTION>
WTD.AVG.
RANGE OF MORTGAGE
MORTGAGE RATES (%) RATE
- - -------------------------------------------- -----------
6.750-6.999................................. 6.977%
7.000-7.249................................. 7.171
7.250-7.499................................. 7.368
7.500-7.749................................. 7.600
7.750-7.999................................. 7.870
8.000-8.249................................. 8.096
8.250-8.499................................. 8.347
8.500-8.749................................. 8.563
8.750-8.999................................. 8.913
9.000-9.249................................. 9.053
-----
Total/Avg/Wtd. Avg./Min/Max:................ 7.603%
-----
-----
</TABLE>
The weighted average Mortgage Rate is 7.603%.
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
ORIGINAL TERMS TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
RANGE OF AGGREGATE % BY AGGREGATE AVERAGE HIGHEST
ORIGINAL TERMS NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
TO MATURITY (MONTHS) OF LOANS BALANCE BALANCE BALANCE BALANCE
---------------------- ------------- --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
49-60....................................... 4 $ 75,444,811 4.4% $ 18,861,203 $ 62,467,513
73-84....................................... 35 204,105,711 11.8 5,831,592 19,227,633
85-96....................................... 1 16,166,316 0.9 16,166,316 16,166,316
109-120..................................... 165 1,030,574,516 59.6 6,245,906 33,180,421
133-144..................................... 1 18,940,051 1.1 18,940,051 18,940,051
145-156..................................... 1 18,309,365 1.1 18,309,365 18,309,365
169-180..................................... 26 205,187,266 11.9 7,891,818 41,975,309
217-228..................................... 1 1,245,316 0.1 1,245,316 1,245,316
229-240..................................... 17 99,257,068 5.7 5,838,651 17,735,508
265-276..................................... 1 2,696,562 0.2 2,696,562 2,696,562
289-300..................................... 6 43,890,649 2.5 7,315,108 13,698,851
349-360..................................... 1 12,000,000 0.7 12,000,000 12,000,000
--- --------------- ----- ------------ ------------
Total/Avg/Wtd. Avg./Min/Max:................ 259 $ 1,727,817,629 100.0% $ 6,671,111 $ 62,467,513
--- --------------- ----- ------------ ------------
--- --------------- ----- ------------ ------------
<CAPTION>
RANGE OF WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
ORIGINAL TERMS CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
TO MATURITY (MONTHS) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
---------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
49-60....................................... 68.5% 74.5% 1.37x 1.27x 90.3%
73-84....................................... 74.2 80.0 1.35 1.20 94.2
85-96....................................... 69.4 69.4 1.24 1.24 89.7
109-120..................................... 73.8 80.0 1.34 1.20 96.1
133-144..................................... 50.5 50.5 1.80 1.80 99.0
145-156..................................... 80.0 80.0 1.19 1.19 95.0
169-180..................................... 74.3 79.9 1.30 1.22 96.9
217-228..................................... 71.2 71.2 1.37 1.37 100.0
229-240..................................... 65.7 78.9 1.41 1.20 96.6
265-276..................................... 57.4 57.4 1.91 1.91 --
289-300..................................... 74.5 79.4 1.33 1.23 94.2
349-360..................................... 80.0 80.0 1.21 1.21 100.0
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................ 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
RANGE OF WTD.AVG.
ORIGINAL TERMS MORTGAGE
TO MATURITY (MONTHS) RATE
---------------------- -----------
49-60....................................... 7.493%
73-84....................................... 7.376
85-96....................................... 8.920
109-120..................................... 7.639
133-144..................................... 8.040
145-156..................................... 7.240
169-180..................................... 7.553
217-228..................................... 8.050
229-240..................................... 7.678
265-276..................................... 7.970
289-300..................................... 7.508
349-360..................................... 7.630
-----
Total/Avg/Wtd. Avg./Min/Max:................ 7.603%
-----
-----
</TABLE>
The weighted average original term to maturity is 134 months.
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
S-50
<PAGE>
REMAINING TERMS TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
RANGE OF
REMAINING TERMS AGGREGATE % BY AGGREGATE AVERAGE HIGHEST WTD.AVG.
TO MATURITY NUMBER CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
(MONTHS) OF LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO
- - ------------------------------ -------- -------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
49- 60........................ 4 $ 75,444,811 4.4% $18,861,203 $62,467,513 68.5%
73- 84........................ 36 220,272,026 12.7 6,118,667 19,227,633 73.9
109-120....................... 165 1,030,574,516 59.6 6,245,906 33,180,421 73.8
133-144....................... 1 18,940,051 1.1 18,940,051 18,940,051 50.5
145-156....................... 1 18,309,365 1.1 18,309,365 18,309,365 80.0
169-180....................... 26 205,187,266 11.9 7,891,818 41,975,309 74.3
217-228....................... 1 1,245,316 0.1 1,245,316 1,245,316 71.2
229-240....................... 17 99,257,068 5.7 5,838,651 17,735,508 65.7
265-276....................... 1 2,696,562 0.2 2,696,562 2,696,562 57.4
289-300....................... 6 43,890,649 2.5 7,315,108 13,698,851 74.5
349-360....................... 1 12,000,000 0.7 12,000,000 12,000,000 80.0
--- -------------- ----- ------------ ------------ ---
Total/Avg/Wtd. Avg./Min/Max:.. 259 $1,727,817,629 100.0% $ 6,671,111 $62,467,513 73.0%
--- -------------- ----- ------------ ------------ ---
--- -------------- ----- ------------ ------------ ---
<CAPTION>
RANGE OF
REMAINING TERMS MAXIMUM WTD.AVG. MINIMUM WTD.AVG. WTD.AVG.
TO MATURITY CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
(MONTHS) LTV RATIO DSC RATIO DSC RATIO RATE(1) RATE
- - ------------------------------ ------------ ------------ ------------ --------- --------
<S> <C> <C> <C> <C> <C>
49- 60........................ 74.5% 1.37x 1.27x 90.3% 7.493%
73- 84........................ 80.0 1.34 1.20 93.8 7.489
109-120....................... 80.0 1.34 1.20 96.1 7.639
133-144....................... 50.5 1.80 1.80 99.0 8.040
145-156....................... 80.0 1.19 1.19 95.0 7.240
169-180....................... 79.9 1.30 1.22 96.9 7.553
217-228....................... 71.2 1.37 1.37 100.0 8.050
229-240....................... 78.9 1.41 1.20 96.6 7.678
265-276....................... 57.4 1.91 1.91 -- 7.970
289-300....................... 79.4 1.33 1.23 94.2 7.508
349-360....................... 80.0 1.21 1.21 100.0 7.630
--- --- --- --------- --------
Total/Avg/Wtd. Avg./Min/Max:.. 80.0% 1.35x 1.19x 95.7% 7.603%
--- --- --- --------- --------
--- --- --- --------- --------
</TABLE>
The weighted average remaining term to maturity is 131 months.
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
CUT-OFF DATE BALANCES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AVERAGE HIGHEST
RANGE OF AGGREGATE % BY AGGREGATE CUT-OFF CUT-OFF WTD.AVG.
CUT-OFF DATE NUMBER CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
BALANCES ($) OF LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO
- - --------------------------- ------------- ------------- ----------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
613,737- 2,000,000......... 30 $ 44,170,430 2.6% $1,472,348 $1,998,192 71.6%
2,000,001- 4,000,000....... 72 204,959,251 11.9 2,846,656 3,997,942 72.5
4,000,001- 6,000,000....... 61 300,129,564 17.4 4,920,157 6,000,000 72.6
6,000,001- 8,000,000....... 27 183,552,516 10.6 6,798,241 7,991,175 74.0
8,000,001-10,000,000....... 20 184,885,463 10.7 9,244,273 9,994,322 70.1
10,000,001-12,000,000...... 14 157,527,694 9.1 11,251,978 12,000,000 74.2
12,000,001-14,000,000...... 9 115,600,746 6.7 12,844,527 13,698,851 75.0
14,000,001-16,000,000...... 7 101,604,965 5.9 14,514,995 15,166,062 76.3
16,000,001-18,000,000...... 6 102,151,730 5.9 17,025,288 17,944,805 70.4
18,000,001-20,000,000...... 8 152,629,022 8.8 19,078,628 19,988,861 73.8
20,000,001-22,000,000...... 1 20,360,654 1.2 20,360,654 20,360,654 74.0
22,000,001-24,000,000...... 1 22,622,349 1.3 22,622,349 22,622,349 74.2
32,000,001-34,000,000...... 1 33,180,421 1.9 33,180,421 33,180,421 78.1
40,000,001-42,000,000...... 1 41,975,309 2.4 41,975,309 41,975,309 73.6
62,000,001-64,000,000...... 1 62,467,513 3.6 62,467,513 62,467,513 70.2
--- ------------- ----- ----------- ----------- ---
Total/Avg/Wtd.
Avg./Min/Max:............ 259 $1,727,817,629 100.0% $6,671,111 $62,467,513 73.0%
--- ------------- ----- ----------- ----------- ---
--- ------------- ----- ----------- ----------- ---
<CAPTION>
RANGE OF MAXIMUM WTD.AVG. MINIMUM WTD.AVG. WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
BALANCES ($) LTV RATIO DSC RATIO DSC RATIO RATE(1) RATE
- - --------------------------- --------------- --------------- --------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
613,737- 2,000,000......... 79.9% 1.36x 1.20x 96.3% 7.874%
2,000,001- 4,000,000....... 80.0 1.38 1.21 95.6 7.656
4,000,001- 6,000,000....... 80.0 1.36 1.20 96.5 7.582
6,000,001- 8,000,000....... 80.0 1.36 1.25 95.9 7.728
8,000,001-10,000,000....... 79.9 1.35 1.20 95.1 7.757
10,000,001-12,000,000...... 80.0 1.32 1.21 96.0 7.392
12,000,001-14,000,000...... 79.9 1.30 1.23 94.7 7.562
14,000,001-16,000,000...... 79.8 1.32 1.20 97.2 7.593
16,000,001-18,000,000...... 79.1 1.37 1.24 94.4 7.659
18,000,001-20,000,000...... 80.0 1.35 1.19 95.3 7.527
20,000,001-22,000,000...... 74.0 1.46 1.46 -- 7.360
22,000,001-24,000,000...... 74.2 1.30 1.30 100.0 8.220
32,000,001-34,000,000...... 78.1 1.28 1.28 95.5 7.190
40,000,001-42,000,000...... 73.6 1.22 1.22 100.0 7.200
62,000,001-64,000,000...... 70.2 1.36 1.36 88.3 7.580
--- --- --- ----- -----
Total/Avg/Wtd.
Avg./Min/Max:............ 80.0% 1.35x 1.19x 95.7% 7.603%
--- --- --- ----- -----
--- --- --- ----- -----
</TABLE>
The average Cut-off Date Balance is $6,671,111.
- - ------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
S-51
<PAGE>
REMAINING AMORTIZATION TERMS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AVERAGE
AGGREGATE % BY AGGREGATE CUT-OFF HIGHEST
RANGE OF NUMBER CUT-OFF DATE CUT-OFF DATE DATE CUT-OFF DATE
REMAINING AMORTIZATION TERMS (MONTHS) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - --------------------------------------------- ------------- --------------- ----------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
181-192...................................... 1 $ 1,538,698 0.1% $1,538,698 $ 1,538,698
217-228...................................... 1 1,245,316 0.1 1,245,316 1,245,316
229-240...................................... 20 110,719,856 6.4 5,535,993 17,735,508
265-276...................................... 2 8,689,989 0.5 4,344,994 5,993,427
277-288...................................... 1 4,075,713 0.2 4,075,713 4,075,713
289-300...................................... 45 294,505,698 17.0 6,544,571 20,360,654
313-324...................................... 1 2,198,361 0.1 2,198,361 2,198,361
325-336...................................... 1 5,386,513 0.3 5,386,513 5,386,513
349-360...................................... 187 1,299,457,487 75.2 6,948,971 62,467,513
--- --------------- ----- ----------- ------------
Total/Avg/Wtd. Avg./Min/Max:................. 259 $ 1,727,817,629 100.0% $6,671,111 $ 62,467,513
--- --------------- ----- ----------- ------------
--- --------------- ----- ----------- ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
RANGE OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
REMAINING AMORTIZATION TERMS (MONTHS) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - --------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
181-192...................................... 67.5% 67.5% 1.31x 1.31x 100.0%
217-228...................................... 71.2 71.2 1.37 1.37 100.0
229-240...................................... 65.1 78.9 1.43 1.20 97.3
265-276...................................... 70.8 76.8 1.51 1.33 100.0
277-288...................................... 74.8 74.8 1.28 1.28 100.0
289-300...................................... 70.9 79.6 1.41 1.21 95.3
313-324...................................... 61.9 61.9 1.32 1.32 95.2
325-336...................................... 74.8 74.8 1.31 1.31 100.0
349-360...................................... 74.2 80.0 1.32 1.19 95.5
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................. 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
WTD.AVG.
RANGE OF MORTGAGE
REMAINING AMORTIZATION TERMS (MONTHS) RATE
- - --------------------------------------------- -----------
181-192...................................... 8.080%
217-228...................................... 8.050
229-240...................................... 7.709
265-276...................................... 7.832
277-288...................................... 7.440
289-300...................................... 7.681
313-324...................................... 7.520
325-336...................................... 8.070
349-360...................................... 7.573
-----
Total/Avg/Wtd. Avg./Min/Max:................. 7.603%
-----
-----
</TABLE>
The weighted average remaining amortization term is 338 months.
- - ----------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
AMORTIZATION TYPES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
AVERAGE
AGGREGATE % BY AGGREGATE CUT-OFF HIGHEST
NUMBER CUT-OFF DATE CUT-OFF DATE DATE CUT-OFF DATE
AMORTIZATION TYPES OF LOANS BALANCE BALANCE BALANCE BALANCE
- - --------------------------------------------- ------------- --------------- ----------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Balloon...................................... 173 $ 1,047,910,854 60.6% $6,057,288 $ 22,622,349
ARD Loans.................................... 61 533,938,981 30.9 8,753,098 62,467,513
Interest-Only then Amortizing Balloon(2)..... 2 10,630,000 0.6 5,315,000 5,520,000
Fully Amortizing............................. 23 135,337,795 7.8 5,884,252 17,735,508
--- --------------- ----- ----------- ------------
Total/Avg/Wtd. Avg./Min/Max:................. 259 $ 1,727,817,629 100.0% $6,671,111 $ 62,467,513
--- --------------- ----- ----------- ------------
--- --------------- ----- ----------- ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
AMORTIZATION TYPES LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE(1)
- - --------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
Balloon...................................... 72.8% 80.0% 1.36x 1.20x 95.4%
ARD Loans.................................... 75.0 80.0 1.31 1.19 95.7
Interest-Only then Amortizing Balloon(2)..... 57.2 60.8 1.49 1.40 100.0
Fully Amortizing............................. 68.1 80.0 1.39 1.20 97.3
--- --- --- --- -----
Total/Avg/Wtd. Avg./Min/Max:................. 73.0% 80.0% 1.35x 1.19x 95.7%
--- --- --- --- -----
--- --- --- --- -----
<CAPTION>
WTD.AVG.
MORTGAGE
AMORTIZATION TYPES RATE
- - --------------------------------------------- -----------
Balloon...................................... 7.741%
ARD Loans.................................... 7.347
Interest-Only then Amortizing Balloon(2)..... 7.030
Fully Amortizing............................. 7.591
-----
Total/Avg/Wtd. Avg./Min/Max:................. 7.603%
-----
-----
</TABLE>
- - ----------------------------------
(1) Occupancy Rates were calculated without reference to hospitality properties.
(2) These Mortgage Loans require payments of interest only for a period of 24
months from origination prior to beginning to make payments that amortize
the Mortgage Loans.
OCCUPANCY RATES
(ALL MORTGAGE LOANS OTHER THAN MORTGAGE LOANS SECURED BY HOSPITALITY PROPERTIES)
<TABLE>
<CAPTION>
AVERAGE
AGGREGATE % BY AGGREGATE CUT-OFF HIGHEST
NUMBER CUT-OFF DATE CUT-OFF DATE DATE CUT-OFF DATE
RANGE OF OCCUPANCY RATES (%) OF LOANS BALANCE BALANCE BALANCE BALANCE
- - --------------------------------------------- ------------- --------------- ----------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
60.001- 65.000............................... 1 $ 3,496,530 0.2% $3,496,530 $ 3,496,530
80.001- 85.000............................... 9 46,524,315 2.9 5,169,368 12,342,671
85.001- 90.000............................... 24 220,853,872 13.7 9,202,245 62,467,513
90.001- 95.000............................... 45 278,703,655 17.3 6,193,415 19,988,861
95.001-100.000............................... 171 1,065,941,205 66.0 6,233,574 41,975,309
--- --------------- ----- ----------- ------------
Total/Avg/Wtd. Avg./Min/Max:................. 250 $ 1,615,519,577 100.0% $6,462,078 $ 62,467,513
--- --------------- ----- ----------- ------------
--- --------------- ----- ----------- ------------
<CAPTION>
WTD.AVG. MAXIMUM WTD.AVG. MINIMUM WTD.AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
RANGE OF OCCUPANCY RATES (%) LTV RATIO LTV RATIO DSC RATIO DSC RATIO RATE
- - --------------------------------------------- --------------- --------------- --------------- --------------- -------------
<S> <C>
60.001- 65.000............................... 28.0% 28.0% 2.05x 2.05x 65.0%
80.001- 85.000............................... 70.3 79.8 1.35 1.21 82.6
85.001- 90.000............................... 71.2 79.9 1.34 1.20 88.3
90.001- 95.000............................... 76.2 80.0 1.31 1.19 92.9
95.001-100.000............................... 73.0 80.0 1.34 1.20 98.6
--- --- --- --- ---
Total/Avg/Wtd. Avg./Min/Max:................. 73.1% 80.0% 1.33x 1.19x 95.7%
--- --- --- --- ---
--- --- --- --- ---
<CAPTION>
WTD.AVG.
MORTGAGE
RANGE OF OCCUPANCY RATES (%) RATE
- - --------------------------------------------- -----------
60.001- 65.000............................... 7.220%
80.001- 85.000............................... 7.510
85.001- 90.000............................... 7.707
90.001- 95.000............................... 7.545
95.001-100.000............................... 7.613
-----
Total/Avg/Wtd. Avg./Min/Max:................. 7.610%
-----
-----
</TABLE>
The weighted average occupancy rate, excluding hospitality properties, is 95.7%.
S-52
<PAGE>
RESERVE ACCOUNTS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
INITIAL
DEPOSIT
CONTROL TO CAPITAL
NUMBER PROPERTY NAME PROPERTY TYPE IMP RESERVE
- - --------- -------------------------------------------------------------- ---------------------------------- -----------
<S> <C> <C> <C>
1 The Eastpoint Mall Retail--Anchored $367,375
2 Ohio Valley Plaza Retail--Anchored --
3 Blair Mill Village East Apt. Multifamily--Conventional 11,250
5 Stewart Plaza Retail--Anchored 41,875
6 Northbrook Hilton Hotel Hotel--Full Service 17,320
7 Murrieta Town Center Retail--Anchored --
8 Ramada Plaza Hotel Gateway Hotel--Full Service
9 Tacoma Place Shopping Center Retail--Anchored --
10 Huebner Oaks Commons I & II (Roll-up) Retail--Anchored --
11 The Commons Shopping Center A Retail--Anchored --
12 70 East Sunrise Highway Office 938
13 Lakeview Apartments Multifamily--Conventional 37,500
14 One and Three Long Wharf Drive Office 11,812
15 Embassy Suites Salt Lake City Hotel--Limited Service --
16 Benjamin Plaza Shopping Center Retail--Anchored --
17 Bradley Industrial Park Industrial/Warehouse --
18 Fort Lee Hilton Hotel Hotel--Full Service 27,625
19 Tilghman Square Retail--Anchored 6,250
20 Oasis Trails Apt. Complex Multifamily--Conventional --
22 Covered Bridges of Carol Stream Multifamily--Conventional 117,125
23 Oasis Terrace Apt. Multifamily--Conventional --
24 Rio Vista Shopping Center Retail--Anchored 32,625
25 1 Second St,8 & 10 State St, 205 Wildwood Ave (Roll-up) Industrial/Warehouse 129,494
26 Copper Palms Apartments Multifamily--Conventional --
27 Tri-City Center Retail--Anchored 263
28 Lakeside Centre Retail--Anchored 5,000
29 Chastain Portfolio (Roll-up) Multifamily--Conventional 52,938
30 Parkview Plaza Retail--Anchored --
31 Eastland Place Shopping Center Retail--Anchored 8,625
32 Crystal Inn Hotel--Limited Service 14,375
33 Oasis Orchid Apt. Complex Multifamily--Conventional --
34 Parkway Plaza Shopping Center Retail--Anchored --
35 Perimeter Station Shopping Center Retail--Anchored --
36 TJ Maxx Plaza Retail--Anchored 52,000
37 Dauphin Plaza Shopping Center Retail--Anchored 40,625
38 Shops at Blue Bell Retail--Anchored --
39 Carrefour at Kirby Woods Retail--Anchored 9,781
40 Imperial Palms Apartments Multifamily--Conventional 436,447
41 Mitchell Plaza Office --
42 Garrett Square Apartments Multifamily--Section 42 --
43 The Sony Music Building Office --
44 S.S. Pierce Building Retail--Unanchored 36,813
45 Northcourt Commons Retail--Anchored --
46 Comdisco Office --
47 The Oak Run Apartments Multifamily--Conventional 12,094
48 Hampton Inn--Englewood & Dayton (Roll-up) Hotel--Limited Service --
49 Central Place Phase I & II (Roll-up) Retail--Anchored --
50 Delray Crossings Shopping Center Retail--Anchored 3,750
51 Silver Pines Multifamily--Conventional 30,000
52 Sycamore Square (Phases I & II) Retail--Anchored --
53 One Century Tower Office --
54 Flamingo Bay Club Apartments Multifamily--Conventional 15,188
55 University Business Center Industrial/Warehouse 20,000
56 Whitehall Boca Raton Health Care--Assisted Living/ 4,125
Skilled Nursing
57 Shadowridge Meadows Apartments Multifamily--Conventional 25,000
58 Coral Springs Financial Plaza Office 76,400
59 Newark Shopping Center Retail--Unanchored 3,500
60 103-00 Foster Ave. Industrial/Warehouse --
61 Mercado at Scottsdale Ranch Retail--Anchored --
62 Nicholson Research Center Office --
63 The Plaza Rios Shopping Center Retail--Anchored 9,750
64 WWDC Industrial Park Industrial/Warehouse 12,625
65 Faircrest Apartments Multifamily--Conventional 60,938
66 Garden Walk Apartments Multifamily--Conventional 11,562
67 Shepherd Plaza Shopping Center Retail--Unanchored 49,800
68 Players Club Apartments Multifamily--Conventional 11,250
69 Ralph's Supermarket Retail--Anchored --
70 41 State Street Office --
71 Laguna Village Shopping Center Retail--Unanchored 94,859
72 Hoover Commons Shopping Center Retail--Anchored 32,250
73 Ashley Woods Apartments Multifamily--Conventional 625,940
74 Greenbriar South Shopping Center Retail--Anchored --
<CAPTION>
CURRENT
BALANCE
OF CURRENT ANNUAL AS OF
CAPITAL BALANCE OF DEPOSIT CURRENT DATE OF
CONTROL IMP ANNUAL DEPOSIT TO REPLACEMENT TO TI/LC BALANCE OF RESERVE
NUMBER RESERVE REPLACEMENT RESERVE RESERVE RESERVE TI/LC RESERVE ACCOUNTS
- - --------- --------- ---------------------- ------------ --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
1 $ 367,375 $144,000 $12,000 $96,000 $8,000 2/4/98
2 -- 57,668 -- 86,503 25,516 2/4/98
3 11,250 192,000 32,000 N/A N/A 2/27/98
5 39,938 28,952 16,888 36,000 21,000 2/4/98
6 17,381 4% of Gross Income 45,130 N/A N/A 1/31/98
7 -- 64,984 5,415 160,033 436,941 2/4/98
8 4% of Gross Income 1,505,367 N/A N/A 1/31/98
9 -- 23,740 5,947 26,988 6,761 2/4/98
10 -- -- -- -- -- 2/4/98
11 -- 33,630 14,012 84,000 35,000 2/4/98
12 938 23,265 1,939 120,000 10,000 2/4/98
13 37,500 157,275 13,106 N/A N/A 2/4/98
14 11,812 25,080 3,205 219,876 854 2/4/98
15 -- 4% of Gross Income 78,841 N/A N/A 2/4/98
16 -- 29,666 4,944 120,000 20,000 2/4/98
17 -- -- 111,522 -- 150,000 2/4/98
18 27,625 4% of Gross Income 130,203 N/A N/A 2/3/98
19 -- 35,124 38,108 63,360 42,458 2/4/98
20 -- 54,000 4,500 N/A N/A 2/4/98
22 77,850 94,488 19,940 N/A N/A 2/4/98
23 -- 50,400 4,200 N/A N/A 2/4/98
24 32,687 14,402 9,604 391,502 16,050 2/3/98
25 129,494 35,976 2,998 81,001 6,750 2/4/98
26 -- 40,424 3,369 N/A N/A 1/31/98
27 263 23,034 1,920 33,216 2,768 2/4/98
28 5,000 27,271 4,545 61,217 10,209 2/27/98
29 51,064 134,520 21,726 N/A N/A 2/4/98
30 -- 47,952 39,960 84,000 70,000 2/4/98
31 8,625 27,931 2,328 98,400 8,200 2/5/98
32 14,375 4% of Gross Income 28,751 N/A N/A 2/4/98
33 -- 54,000 -- N/A N/A 2/4/98
34 -- 17,160 1,430 33,000 2,750 2/4/98
35 -- 14,194 2,366 -- -- 2/4/98
36 52,090 38,450 3,039 92,979 7,751 2/29/98
37 40,625 18,437 3,075 50,000 505,725 2/4/98
38 -- 11,044 -- 27,554 -- 1/8/98
39 9,781 13,307 -- -- -- 2/4/98
40 436,447 122,745 -- N/A N/A 2/4/98
41 -- 13,006 1,084 -- 300,709 2/4/98
42 -- 99,800 16,646 N/A N/A 2/4/98
43 -- 7,532 628 48,966 4,081 2/4/98
44 5,563 18,204 4,556 70,000 17,524 2/4/98
45 -- -- -- -- -- 2/4/98
46 -- -- -- -- -- 2/4/98
47 -- 110,460 27,666 N/A N/A 2/4/98
48 -- 4% of Gross Income 12,705 N/A N/A 2/5/98
49 -- 19,308 19,308 34,415 34,415 2/4/98
50 3,750 25,722 4,287 63,000 10,500 2/27/98
51 30,000 65,262 -- N/A N/A 2/4/98
52 -- 40,833 3,403 -- -- 2/5/98
53 -- 23,388 9,759 -- 750,000 2/4/98
54 15,188 45,136 15,045 N/A N/A 2/3/98
55 20,000 65,100 20,726 -- -- 2/4/98
56 4,125 35,748 7,109 N/A N/A 2/28/98
57 25,000 52,992 8,832 N/A N/A 2/3/98
58 7,523 60,000 10,000 153,360 25,560 2/27/98
59 3,510 36,934 12,331 114,495 38,274 2/27/98
60 -- 40,404 13,504 75,000 31,377 2/4/98
61 -- 11,840 100,987 48,211 4,018 2/4/98
62 -- 14,200 4,750 247,661 82,852 2/4/98
63 -- 22,156 22,732 25,000 15,713 2/4/98
64 12,625 91,743 7,645 133,981 11,165 2/6/98
65 62,289 74,328 68,834 N/A N/A 2/1/98
66 11,562 47,520 7,928 N/A N/A 2/4/98
67 49,800 22,572 9,434 30,000 49,910 2/4/98
68 11,250 36,000 -- N/A N/A 2/27/98
69 -- 7,860 -- -- -- 2/4/98
70 -- 23,100 1,925 50,004 4,167 2/4/98
71 564 15,348 7,703 83,004 161,961 2/4/98
72 32,360 37,152 3,094 88,884 7,408 2/27/98
73 627,420 100,672 8,389 N/A N/A 2/4/98
74 -- 19,503 3,251 39,996 6,667 2/5/98
</TABLE>
S-53
<PAGE>
RESERVE ACCOUNTS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
INITIAL
DEPOSIT
CONTROL TO CAPITAL
NUMBER PROPERTY NAME PROPERTY TYPE IMP RESERVE
- - --------- -------------------------------------------------------------- ---------------------------------- -----------
<S> <C> <C> <C>
75 Springs of Napa Health Care--Congregate Care $ 16,875
76 Woodtrail Apartments Multifamily--Conventional 32,270
77 The Park Pineway Shopping Center Retail--Anchored 3,250
78 Stoneridge Apartment Project Multifamily--Conventional 11,875
79 The Shoppes at Fort Wayne Retail--Unanchored --
80 Fred Meyer Superstore Retail--Anchored 12,500
81 Uptown Collection Shopping Center Retail--Unanchored --
82 BJ's Wholesale Club Building Retail--Anchored --
83 Park Inn International Hotel--Limited Service 6,313
84 Harte Haven Shopping Center Retail--Anchored --
85 Northgate Shopping Center Retail--Anchored 136,100
86 Parkwood Square Shopping Center Retail--Anchored 220,231
87 Gateway Plaza Shopping Center Retail--Anchored 21,750
88 The Paragon Building Office --
89 Jefferson Square Shopping Center Retail--Anchored --
90 11000 & 13000 Midlantic Drive Industrial/Warehouse 1,563
91 Clearwater Village Shopping Center Retail--Anchored --
92 Woodbrook Apartments Multifamily--Conventional --
93 90 State Street Office 14,063
94 Ford Centre Office --
95 Northwood Plaza Retail--Anchored 46,250
96 Dogwood Station Shopping Center Retail--Anchored --
97 Los Mares Theater Plaza Retail--Unanchored --
98 Clearwater Shoppes Shopping Center Retail--Anchored 1,875
99 Lindenwood Shopping Center Retail--Anchored 28,770
100 Westvale Plaza Retail--Anchored 281,250
101 Valley Ridge Corporate Center Office 5,175
102 Hoffmann Manor Health Care--Assisted Living 17,250
103 Kendall Plaza Retail--Anchored 3,313
104 Roberts Field Shopping Center Retail--Unanchored 8,750
105 Piedmont Corporate Center (Motorola) Office --
106 Towne Parc Apartments Multifamily--Conventional 639,348
107 Royalton on the Green Multifamily--Conventional 11,250
108 Westgate Plaza Retail--Unanchored --
109 Three Stamford Landing Office 1,875
110 The Woodlawn Commons Medical Center Office 31,875
111 South Seminole Industrial/Warehouse 35,000
112 Orscheln Home & Farm Stores (Roll Up) Retail--Unanchored 3,938
113 The Lauderdale Tower Apartments Multifamily--Conventional 127,220
114 Creekside Business Park Office 688
115 500 & 800 Winding Brook Drive (Roll-up) Office --
116 Carriage Hills East Apartments Multifamily--Conventional --
117 Food For Less Grocery Store Retail--Anchored --
118 Alma Park Center Retail--Anchored --
119 Oak Park Apartments Multifamily--Conventional 103,750
120 Las Colinas Multifamily--Conventional 16,906
121 River Oaks Apartments--Killeen, TX Multifamily--Conventional --
122 Twin Oaks Village Shopping Center Retail--Anchored --
123 Woodmont Plaza Retail--Anchored 38,750
124 Treasury Services Corporation Building Office --
125 Graymere Apartments Multifamily--Conventional 11,375
126 Hart Street Medical Center Office --
127 1301 Guadalupe Street Retail--Anchored 1,250
128 Technologies Applications, Inc. Office --
129 Five Points Plaza Retail--Anchored 46,375
130 195 Bear Hill Road Self Storage 9,875
131 Hampton Inn Hotel Hotel--Limited Service 3,940
132 The Pender Mill Office Building Office --
133 Centre II Office 37,619
134 Plaza De Fiesta Retail--Unanchored 11,750
135 Crossroads Shopping Center Retail--Anchored 12,813
136 South Port Apartments Multifamily--Conventional 282,995
137 Extra Space Center IV, V & VI Self Storage 13,375
138 Two Stamford Landing Office 2,500
139 Metroplex Business Park Office 12,625
140 Atrium Northeast Office Building Office 1,250
141 The Cottages Multifamily--Conventional 17,188
142 Sabal Pointe Plaza Retail--Anchored --
143 Brookside Industrial Center Industrial/Warehouse 1,250
144 Playhouse Square Retail--Unanchored 1,806
145 Kittle's Home Furnishings Plaza Retail--Unanchored --
146 Atrium Northwood Office Building Office --
147 Food For Less Supermarket (Hempfield) Retail--Anchored 5,625
148 Osborn Commons Apartments Multifamily--Conventional --
149 One Dock Street Office 11,000
150 Columbia Station Apartments Multifamily--Conventional 8,250
151 Everett Auto Mall Retail--Unanchored 6,125
152 Coliseum Shoppes Retail--Unanchored --
153 Deerfield Run Apartments Multifamily--Conventional 13,000
<CAPTION>
CURRENT
BALANCE
OF CURRENT ANNUAL AS OF
CAPITAL BALANCE OF DEPOSIT CURRENT DATE OF
CONTROL IMP ANNUAL DEPOSIT TO REPLACEMENT TO TI/LC BALANCE OF RESERVE
NUMBER RESERVE REPLACEMENT RESERVE RESERVE RESERVE TI/LC RESERVE ACCOUNTS
- - --------- --------- ---------------------- ------------ --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
75 $ 16,875 $20,400 $ 3,400 N/A N/A 2/4/98
76 27,760 66,744 5,890 N/A N/A 2/4/98
77 3,250 21,426 1,788 $ 36,000 $ 3,000 2/4/98
78 11,875 51,504 -- N/A N/A 1/31/98
79 -- 13,956 1,164 57,600 4,800 2/5/98
80 12,500 -- -- -- -- 2/4/98
81 -- 3,450 6,900 8,304 16,600 2/4/98
82 -- 10,851 1,811 -- -- 2/4/98
83 6,313 4% of Gross Income 9,319 N/A N/A 2/4/98
84 -- 22,164 -- 37,200 3,100 2/4/98
85 138,313 63,600 21,663 93,636 -- 2/9/98
86 220,231 12,234 1,019 38,333 -- 2/4/98
87 21,750 15,157 200,000 41,160 126,102 2/4/98
88 -- 17,373 1,448 12,000 51,000 2/4/98
89 -- 47,004 47,000 231,048 57,762 2/3/98
90 1,563 13,344 3,441 75,000 268,780 2/4/98
91 -- 2,988 249 24,000 2,000 2/5/98
92 -- 25,200 6,315 N/A N/A 1/31/98
93 14,063 27,791 4,632 80,044 8,998 2/4/98
94 -- 46,530 19,478 123,458 51,680 2/4/98
95 46,250 22,630 5,205 39,828 13,297 2/4/98
96 -- 8,220 4,120 18,900 9,473 2/27/98
97 -- 6,399 1,068 -- 285,224 2/4/98
98 1,875 9,335 778 47,400 3,950 2/5/98
99 28,770 12,908 1,076 28,000 2,333 2/4/98
100 281,250 26,196 2,183 -- -- 2/4/98
101 5,175 16,247 -- 75,000 6,250 2/4/98
102 17,250 50,000 -- N/A N/A 2/4/98
103 3,313 14,140 1,178 -- -- 2/4/98
104 8,755 13,722 3,423 27,443 6,860 2/27/98
105 -- 7,152 1,790 85,860 21,482 2/4/98
106 529,174 84,276 32,093 N/A N/A 2/9/98
107 11,250 60,324 -- N/A N/A 2/4/98
108 -- 15,172 1,264 45,311 103,776 2/4/98
109 1,875 8,742 4,371 55,000 27,500 2/4/98
110 31,875 14,397 -- 25,000 128,266 1/31/98
111 35,282 19,596 3,273 29,595 4,942 2/27/98
112 3,938 37,363 3,114 7,575 631 2/4/98
113 129,288 24,600 73,861 N/A N/A 2/9/98
114 688 103,001 -- 25,000 4,169 2/4/98
115 -- 13,968 9,734 50,000 79,672 (3) 2/4/98
116 -- 57,629 4,802 N/A N/A 2/4/98
117 -- 12,458 -- -- -- 2/4/98
118 -- 13,840 2,309 52,546 8,767 2/4/98
119 103,750 46,800 3,900 N/A N/A 1/31/98
120 13,331 61,680 25,519 N/A N/A 2/4/98
121 -- 60,648 5,054 N/A N/A 1/31/98
122 -- 23,491 1,708 40,000 3,333 2/5/98
123 38,750 13,865 1,155 30,466 2,539 2/4/98
124 -- -- -- 25,000 4,168 2/4/98
125 11,375 32,844 10,972 N/A N/A 2/4/98
126 -- 7,896 51,340 24,996 56,249 2/4/98
127 1,250 -- -- -- -- 2/4/98
128 -- -- 395 -- -- 2/4/98
129 46,375 14,326 2,389 27,000 203,453 2/4/98
130 9,875 18,502 7,733 N/A N/A 2/4/98
131 3,957 4% of Gross Income 16,751 N/A N/A 1/31/98
132 -- 10,581 40,947 26,804 2,234 2/4/98
133 37,618 8,136 678 35,261 2,938 2/4/98
134 11,750 12,000 1,000 -- -- 2/4/98
135 12,813 20,633 1,719 43,082 3,590 2/4/98
136 283,664 73,440 6,120 N/A N/A 2/4/98
137 13,366 19,774 -- N/A N/A 12/31/97
138 2,500 9,210 4,605 54,996 27,500 2/4/98
139 12,625 20,238 3,399 68,472 5,956 2/4/98
140 1,250 8,388 2,098 50,772 8,463 2/4/98
141 17,188 44,832 3,736 N/A N/A 2/4/98
142 -- 7,120 1,781 15,000 3,752 2/4/98
143 1,250 6,042 503 66,660 5,555 2/5/98
144 1,806 4,356 1,092 15,000 2,502 2/4/98
145 -- 9,732 -- -- -- 2/4/98
146 -- 9,108 3,042 66,996 58,592 2/4/98
147 5,625 5,193 433 -- -- 2/4/98
148 -- 43,896 -- N/A N/A 2/4/98
149 11,000 13,500 6,750 80,000 40,000 2/4/98
150 8,250 32,700 -- N/A N/A 2/4/98
151 6,125 7,140 -- 30,000 -- 2/3/98
152 -- 5,322 444 46,200 3,850 2/5/98
153 13,000 41,616 3,218 N/A N/A 2/5/98
</TABLE>
S-54
<PAGE>
RESERVE ACCOUNTS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
INITIAL
DEPOSIT
CONTROL TO CAPITAL
NUMBER PROPERTY NAME PROPERTY TYPE IMP RESERVE
- - --------- -------------------------------------------------------------- ---------------------------------- -----------
<S> <C> <C> <C>
154 Berkshire Center Retail--Unanchored $ 15,000
155 Heritage Place Apartments Multifamily--Conventional 129,415
156 K-Mart Plaza Retail--Anchored --
157 4611-4811 Kimmel Drive Industrial/Warehouse --
158 Flint's Crossing Shopping Center Retail--Anchored 52,750
159 Shaker-Loudon Road Plaza Office 23,063
160 Food For Less Supermarket (Pine) Retail--Anchored 9,375
161 Hitachi Tech Center Office 8,313
162 Bay Harbour Apartments Multifamily--Conventional 2,500
163 East Bridge Landing Annex Multifamily--Conventional 45,500
164 Raymour & Flanigan Retail--Unanchored 1,875
165 20-24 Newbury Street Retail--Unanchored 9,562
166 Tates Creek South Shopping Center Retail--Anchored --
167 Forest Lake II Apartments Multifamily--Conventional 5,938
168 446 Blake St Industrial/Warehouse --
169 The Pavillions and The Verandas (Roll-up) Retail--Unanchored 2,375
170 Deerfield Apartments Multifamily--Conventional 51,250
171 Bay Ridge Apartments Multifamily--Conventional 8,765
172 River Oaks Apartments--Wetumpka, AL Multifamily--Conventional --
173 Lawrence Commons Office 8,813
174 511 Eleventh Avenue South Office Building Office 22,250
175 Causeway Plaza Retail--Anchored --
176 Richwood Shopping Center Retail--Unanchored 171,000
177 Alderwood Target Plaza Retail--Unanchored 1,875
178 Cherokee North Shopping Center Retail--Anchored --
179 Stone Ridge Apartments Multifamily--Conventional --
180 Point West Apartments Multifamily--Conventional 20,875
181 Main Business Center Industrial/Warehouse 20,513
182 Lancers Square Retail Center Retail--Unanchored --
183 Cahokia Village Shopping Center Retail--Anchored --
184 Quarry West Apartments Multifamily--Conventional 15,938
185 Country Way Apartments Multifamily--Conventional 58,500
186 The Victorian Apartments Multifamily--Conventional 64,125
187 Picasso Tower Office 8,125
188 Alafaya Square Retail--Unanchored --
189 Sedgwick Centre Office Building Office --
190 Highland Ridge Apartments Multifamily--Conventional 29,000
191 Mobile One Mobile Home Park Mobile Home Park 33,406
192 Sand Creek Apartments Multifamily--Conventional --
193 Scotch Pines East Apartments Multifamily--Conventional 2,500
194 Oakcreek Apartments Multifamily--Conventional 120,500
195 New Towne West Aptartments Multifamily--Conventional 1,563
196 Stone Hollow Apartments Multifamily--Conventional 81,955
197 Holiday Inn Express Hotel--Limited Service 6,500
198 Village Square East Shopping Center Retail--Unanchored 8,625
199 Willowstream North Garden Apartments Multifamily--Conventional 55,125
200 Duck Creek Shopping Center Retail--Unanchored 65,750
201 470 West Avenue Office 875
202 River One Office Plaza Office 625
203 Lyell-Mt. Read Business Center Industrial/Warehouse 22,500
204 Landmark Woods Apartments Multifamily--Conventional 100,000
205 Mountain Vista Apartments Multifamily--Conventional 29,375
206 Shoppers Fair Shopping Center Retail--Unanchored --
207 Lafayette Place Apartments Multifamily--Conventional 20,185
208 America Plaza Office 1,556
209 Valley View Hacienda Business Park II Industrial/Warehouse 1,094
210 Salem Village Center Retail--Unanchored 10,000
211 Granada/Turnberry Apartments Multifamily--Conventional 11,000
212 The 14614 Falling Creek Office Building Office --
213 One Pavilion Avenue Industrial/Warehouse 143,500
214 Automotive Portfolio (Roll-up) Retail--Unanchored 28,313
215 Mountain Springs Apartments Multifamily--Conventional 173,563
216 The I-Drive Center Shopping Center Retail--Unanchored --
217 9-11 Park Avenue Parking Garage 33,750
218 Tricom Executive Center Office 8,650
219 3550 Biscayne Boulevard Office 71,875
220 Jefferson Park Apartments (I) Multifamily--Section 42 4,113
221 Clinical Associates Building Office 5,250
222 Summit Business Park Office --
223 Wellington Square Shopping Center Retail--Unanchored 16,250
224 Shannon Plaza Apartments Multifamily--Conventional 4,625
225 Bay Island Apartments Multifamily--Conventional 68,875
226 Academy Crossing Shopping Center Retail--Unanchored --
227 Coopersburg Shopping Center Retail--Anchored --
228 1003 London Road Office 2,500
229 Rutgers Plaza Shopping Center Retail--Anchored --
230 Apollo Beach Marina Apartments Multifamily--Conventional 813
231 Jefferson Park Apartments (II) Multifamily--Section 42 3,769
<CAPTION>
CURRENT
BALANCE
OF CURRENT ANNUAL AS OF
CAPITAL BALANCE OF DEPOSIT CURRENT DATE OF
CONTROL IMP ANNUAL DEPOSIT TO REPLACEMENT TO TI/LC BALANCE OF RESERVE
NUMBER RESERVE REPLACEMENT RESERVE RESERVE RESERVE TI/LC RESERVE ACCOUNTS
- - --------- --------- ---------------------- ------------ --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
154 $ 15,000 $31,111 $ 5,185 -- -- 2/4/98
155 129,415 21,000 7,014 N/A N/A 2/4/98
156 -- 35,475 5,917 $ 14,781 $ 2,465 2/4/98
157 -- 30,696 2,558 20,388 1,699 2/4/98
158 52,750 13,166 3,297 32,404 8,114 2/4/98
159 23,063 8,000 -- 75,000 -- 2/4/98
160 9,375 5,020 418 -- -- 2/4/98
161 8,313 13,182 1,099 -- -- 2/4/98
162 2,500 76,500 31,991 N/A N/A 2/4/98
163 45,500 7,500 3,135 7,608 3,170 2/4/98
164 1,875 5,520 922 11,040 1,844 2/4/98
165 9,562 3,225 808 36,000 9,018 2/4/98
166 -- 4,292 2,861 15,616 1,301 2/4/98
167 5,938 18,592 1,299 N/A N/A 2/5/98
168 -- 17,460 1,917 56,400 -- 2/4/98
169 2,375 2,352 -- 36,000 -- 2/5/98
170 51,360 38,484 3,207 N/A N/A 2/4/98
171 8,765 13,204 2,202 N/A N/A 2/4/98
172 -- 14,568 2,428 N/A N/A 1/31/98
173 8,813 8,755 80,971 30,000 102,500 2/4/98
174 22,250 32,938 2,745 -- -- 2/4/98
175 -- 21,329 5,342 35,000 8,766 2/4/98
176 171,000 8,807 734 20,916 100,000 2/4/98
177 1,875 26,340 1,239 70,000 19,375 2/4/98
178 -- 7,847 1,963 27,688 6,927 2/4/98
179 -- 21,730 -- N/A N/A 2/4/98
180 20,875 38,400 13,030 N/A N/A 2/4/98
181 20,513 28,248 4,708 20,000 3,333 2/4/98
182 -- 12,917 2,154 15,000 31,283 2/4/98
183 -- 14,544 2,425 40,000 6,669 2/4/98
184 15,938 27,504 2,293 N/A N/A 2/4/98
185 58,500 39,150 39,150 N/A N/A 2/4/98
186 64,125 38,700 -- N/A N/A 2/4/98
187 8,125 13,036 2,176 -- -- 2/4/98
188 -- 14,376 2,401 31,128 5,198 2/27/98
189 -- 7,368 614 49,118 4,093 2/3/98
190 29,000 38,302 22,164 N/A N/A 2/4/98
191 33,406 4,059 -- N/A N/A 2/5/98
192 -- 16,800 1,400 N/A N/A 2/4/98
193 2,500 19,584 1,632 N/A N/A 2/4/98
194 122,458 30,240 10,658 N/A N/A 2/9/98
195 1,563 33,120 8,286 N/A N/A 2/4/98
196 83,284 35,280 12,439 N/A N/A 2/9/98
197 6,500 4% of Gross Income 5,389 N/A N/A 2/4/98
198 8,625 10,480 1,747 30,000 5,000 2/4/98
199 55,125 12,600 2,101 N/A N/A 2/4/98
200 65,750 -- -- -- -- 2/4/98
201 875 9,000 4,500 38,000 19,000 2/4/98
202 625 5,916 986 26,712 4,456 2/4/98
203 22,500 28,047 4,675 -- -- 2/4/98
204 100,215 17,888 1,491 N/A N/A 2/4/98
205 29,375 38,004 9,501 N/A N/A 1/31/98
206 -- 10,098 4,219 15,000 6,267 2/4/98
207 20,185 69,000 11,500 N/A N/A 2/4/98
208 1,556 4,500 -- -- -- 1/31/98
209 1,094 5,094 -- -- -- 2/4/98
210 10,000 10,495 1,750 -- -- 2/4/98
211 11,000 24,300 2,025 N/A N/A 1/31/98
212 -- -- 100,474 34,915 78,266 2/4/98
213 143,500 39,745 9,952 14,172 3,543 2/4/98
214 17,966 7,200 600 25,008 2,084 1/31/98
215 173,563 29,040 3,051 N/A N/A 1/31/98
216 -- 10,280 -- 23,917 -- 2/4/98
217 33,750 8,116 676 N/A N/A 2/4/98
218 8,650 7,676 1,282 50,000 8,349 2/4/98
219 71,875 7,000 1,170 -- 40,027 2/4/98
220 4,113 20,900 -- N/A N/A 2/4/98
221 5,250 5,245 437 29,721 2,477 1/14/98
222 -- 8,160 680 10,191 849 2/27/98
223 16,250 9,837 4,111 30,000 5,800 2/4/98
224 4,625 21,216 3,540 N/A N/A 2/4/98
225 68,875 27,000 -- N/A N/A 2/4/98
226 -- 14,208 2,368 14,004 3,497 2/6/98
227 -- 13,572 3,404 27,912 5,364 2/6/98
228 2,500 4,997 416 12,370 1,031 2/27/98
229 -- 7,500 625 32,963 2,750 2/4/98
230 813 5,600 1,300 N/A N/A 2/4/98
231 3,769 22,000 -- N/A N/A 2/4/98
</TABLE>
S-55
<PAGE>
RESERVE ACCOUNTS
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
INITIAL
DEPOSIT
CONTROL TO CAPITAL
NUMBER PROPERTY NAME PROPERTY TYPE IMP RESERVE
- - --------- -------------------------------------------------------------- ---------------------------------- -----------
<S> <C> <C> <C>
232 Bert Kouns Self-Storage Self Storage --
233 Sunnyslope Terrace Multifamily--Conventional $ 39,458
234 Mountain View Villas Apartments Multifamily--Conventional 16,938
235 Power Road Medical Center Office 34,724
236 26 East Baseline Road Retail--Unanchored --
237 Country Club Arms Apartments Multifamily--Conventional 34,600
238 Sherman Street Apartments Multifamily--Conventional 25,518
239 Greenbriar Square Shopping Center Retail--Anchored 19,125
240 Woodberry Forest Apartments Multifamily--Conventional 458,065
241 Metro Crest Apartments Multifamily--Conventional 39,375
242 4490 Von Karman Ave. Office --
243 Art Colony Apartments Multifamily--Conventional 5,182
244 N. 10th & Vine Street Building Industrial/Warehouse 8,375
245 3 & 4 Corporate Plaza (Roll-up) qOffice 3,750
246 CVS--H&R Block Center Retail--Anchored --
247 The Crowne Building Office 4,688
248 23193 Sandalfoot Plaza Drive Retail--Unanchored --
249 CVS--St. Andrews Retail--Anchored --
250 Fair Oaks Shopping Center Retail--Unanchored 5,125
251 Windrush Apartments Multifamily--Conventional 143,600
252 Tutor Time Child Care Center Retail--Unanchored --
253 680 Bridgeport Avenue Office 2,500
254 NW 57th Ave & NW 176th Street Industrial/Warehouse --
255 Warwick Apartments Multifamily--Conventional 22,230
256 Grove One Apartments Multifamily--Conventional --
257 2410 West Temple Street Multifamily--Conventional 375
258 NWC Northwest 183rd Street & US 441 Retail--Unanchored --
259 9575 Southern Boulevard Retail--Unanchored --
260 The Outlot Shoppes at Fort Wayne Retail--Unanchored --
261 Twin Oaks Village Office Park Office 6,500
<CAPTION>
CURRENT
BALANCE
OF CURRENT ANNUAL AS OF
CAPITAL BALANCE OF DEPOSIT CURRENT DATE OF
CONTROL IMP ANNUAL DEPOSIT TO REPLACEMENT TO TI/LC BALANCE OF RESERVE
NUMBER RESERVE REPLACEMENT RESERVE RESERVE RESERVE TI/LC RESERVE ACCOUNTS
- - --------- --------- ---------------------- ------------ --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
232 -- $ 946 $ 79 N/A N/A 2/4/98
233 $ 39,458 20,000 3,333 N/A N/A 2/3/98
234 16,938 21,240 7,095 N/A N/A 2/4/98
235 34,724 8,961 15,107 $ 45,200 $ 30,397 2/4/98
236 -- 4,320 1,081 23,520 5,884 2/4/98
237 34,600 24,000 3,004 N/A N/A 2/5/98
238 25,518 22,212 1,851 N/A N/A 2/4/98
239 19,125 -- -- -- -- 2/4/98
240 465,536 21,348 19,744 N/A N/A 2/9/98
241 39,375 35,748 5,958 N/A N/A 2/4/98
242 -- 7,598 2,535 -- -- 2/4/98
243 5,182 11,025 1,838 N/A N/A 1/31/98
244 8,375 -- 16,486 -- 75,000 2/4/98
245 3,750 6,872 1,145 45,369 11,361 2/4/98
246 -- 2,153 718 -- 6,023 2/4/98
247 4,688 7,623 1,271 24,395 4,067 2/4/98
248 -- 1,129 1,129 7,139 -- 2/4/98
249 -- -- -- -- -- 2/4/98
250 5,125 -- -- -- -- 2/4/98
251 143,600 28,213 16,422 N/A N/A 2/4/98
252 -- 2,940 245 -- -- 2/4/98
253 2,500 2,802 1,401 12,000 6,000 2/4/98
254 -- 1,475 1,475 1,632 -- 2/4/98
255 22,230 24,996 10,447 N/A N/A 2/4/98
256 -- 3,500 876 N/A N/A 2/4/98
257 375 5,208 434 N/A N/A 2/4/98
258 -- 1,200 400 3,500 1,169 2/1/98
259 -- 1,662 1,663 2,374 -- 2/4/98
260 -- 591 49 5,100 425 2/5/98
261 6,500 5,506 209 10,540 878 2/5/98
</TABLE>
- - ------------------------
(1) Includes $423,605 tenant specific lease reserve.
(2) Includes $100,000 tenant specific lease reserve.
(3) Includes $57,422 tenant specific lease reserve.
(4) Includes $200,000 tenant specific lease reserve.
S-56
<PAGE>
THE MORTGAGE LOAN SELLER
On or about March 11, 1998 (the "Closing Date"), the Depositor will acquire
the Mortgage Loans from the Mortgage Loan Seller pursuant to a purchase
agreement (the "Mortgage Loan Purchase Agreement"). The Mortgage Loan Seller
acquired or originated the Mortgage Loans as described above under "--Mortgage
Loan History."
The Mortgage Loan Seller is a corporation organized under the laws of the
State of Delaware and an affiliate of both the Depositor and the Underwriter.
The principal offices of the Mortgage Loan Seller are located at 200 Vesey
Street, New York, New York 10285.
ASSIGNMENT OF THE MORTGAGE LOANS; REPURCHASES
On or prior to the Closing Date, the Depositor will transfer the Mortgage
Loans, without recourse, to the Trustee for the benefit of the
Certificateholders. In connection with such transfer, the Depositor will require
the Mortgage Loan Seller to deliver to the Trustee or to a document custodian
appointed by the Trustee (a "Custodian"), among other things, the following
documents with respect to each Mortgage Loan (collectively, as to each Mortgage
Loan, the "Mortgage File"): (i) the original Mortgage Note, endorsed, without
recourse, to the order of the Trustee (or, if the original Mortgage Note has
been lost, an affidavit to such effect from the Mortgage Loan Seller or another
prior holder, together with a copy of the Mortgage Note); (ii) the original or a
copy of the Mortgage and of any and all intervening assignments of the Mortgage,
in each case with evidence of recording indicated thereon; (iii) the original or
a copy of any related assignment of leases (if such item is a document separate
from the Mortgage), and of any and all intervening assignments thereof, in each
case with evidence of recording indicated thereon; (iv) an original assignment
of the Mortgage in favor of the Trustee and in recordable form; (v) an original
assignment of any related assignment of leases (if such item is a document
separate from the Mortgage) in favor of the Trustee and in recordable form; (vi)
originals or copies of all written modification agreements in those instances in
which the terms or provisions of the Mortgage or Mortgage Note have been
modified; (vii) the original or a copy of the policy or certificate of lender's
title insurance issued on the date of the origination of such Mortgage Loan, or,
if such policy has not been issued, an irrevocable, binding commitment to issue
such title insurance policy; (viii) any file copies of any UCC financing
statements and related amendments and continuation statements in the possession
of the Mortgage Loan Seller; (ix) an original assignment in favor of the Trustee
of any financing statement executed and filed in favor of the Mortgage Loan
Seller or any prior mortgagee in the relevant jurisdiction; and (x) an original
or copy of any ground lease relating to such Mortgage Loan.
The Trustee or a Custodian on its behalf will be required to review each
Mortgage File within a specified period following its receipt thereof. If any of
the above-described documents is found during the course of such review to be
missing from any Mortgage File or defective, if such omission or defect
materially and adversely affects the interests of the Certificateholders, and if
the Mortgage Loan Seller cannot deliver the missing document or cure the defect
(other than omissions solely due to a document not having been returned by the
related recording office) within a period of 90 days following its receipt of
notice thereof, then the Mortgage Loan Seller will be obligated pursuant to the
Mortgage Loan Purchase Agreement (the relevant rights under which will be
assigned by the Depositor to the Trustee on or prior to the Closing Date) to
repurchase the affected Mortgage Loan at a price (the "Purchase Price")
generally equal to the sum of (i) the unpaid principal balance of such Mortgage
Loan, (ii) unpaid accrued interest on such Mortgage Loan (calculated at the
Mortgage Rate) to, but not including, the Due Date in the Collection Period in
which the purchase is to occur, and (iii) certain servicing expenses that are
reimbursable to the Master Servicer or the Special Servicer; provided that, with
limited exception, the Mortgage Loan Seller will have an additional 90-day
period to deliver the document or cure the defect, as the case may be, if it is
diligently proceeding to effect such delivery or cure and has delivered to the
Trustee an officer's certificate that describes the reasons that such delivery
or cure was not effected within the first 90-day cure period and the actions it
proposes to take to effect such delivery or cure, and which states that
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<PAGE>
it anticipates such delivery or cure will be effected within the additional
90-day period; and provided further, that, if a document remains undelivered or
a defect remains uncured after the initial and additional 90-day periods due to
the failure of the related recording office to return such document, the
Mortgage Loan Seller will be entitled to continue deferring its cure and
repurchase obligations (but, in no event, however, beyond the second anniversary
of the Closing Date) as long as it certifies to the Trustee every 30 days that
the failure to deliver such document or cure such defect continues solely
because of the continued failure of the related recording office to return such
document and that it is diligently attempting to effect such delivery or cure,
specifying the actions being taken by it. The foregoing repurchase obligation
will constitute the sole remedy available to the Certificateholders and the
Trustee for any uncured failure to deliver, or any uncured defect in, a
constituent Mortgage Loan document. The Mortgage Loan Seller will be solely
responsible for such repurchase obligation, and such obligation will not be the
responsibility of the Depositor or any of its other affiliates.
The Pooling and Servicing Agreement will require the Trustee promptly to
cause each of the assignments described in clauses (iv), (v) and (ix) of the
second preceding paragraph to be submitted for recording or filing, as the case
may be, in the real property records of the jurisdiction in which the related
Mortgaged Property is located or in the appropriate public office for UCC
financing statements, as applicable. See "The Trust Agreement--Assignment of
Mortgage Assets" in the Prospectus.
REPRESENTATIONS AND WARRANTIES; REPURCHASES
In the Mortgage Loan Purchase Agreement, the Mortgage Loan Seller will
represent and warrant with respect to each Mortgage Loan (subject to certain
exceptions specified in the Mortgage Loan Purchase Agreement), as of the Closing
Date, or as of such other date specifically provided in the representation and
warranty, among other things, generally that: (i) the information set forth in
the schedule of Mortgage Loans attached to the Mortgage Loan Purchase Agreement
(which contains certain of the information set forth in Annex A) is true and
correct in all material respects as of the Cut-off Date; (ii) if such Mortgage
Loan was originated by the Mortgage Loan Seller or an affiliate thereof, then,
as of the date of its origination, such Mortgage Loan complied in all material
respects with, or was exempt from, all requirements of federal, state or local
law relating to the origination of such Mortgage Loan and, if such Mortgage Loan
was not originated by the Mortgage Loan Seller or an affiliate thereof, then, to
the best of the Mortgage Loan Seller's knowledge after having performed the type
of due diligence customarily performed by prudent institutional commercial and
multifamily mortgage lenders, as of the date of its origination, such Mortgage
Loan complied in all material respects with, or was exempt from, all
requirements of federal, state or local law relating to the origination of such
Mortgage Loan; (iii) the Mortgage Loan Seller owns the Mortgage Loan, has good
and marketable title thereto, has full right and authority to sell, assign and
transfer the Mortgage Loan and is transferring the Mortgage Loan free and clear
of any and all liens, pledges, charges or security interests; (iv) the proceeds
of such Mortgage Loan have been fully disbursed and there is no requirement for
future advances thereunder; (v) to the actual knowledge of the Mortgage Loan
Seller, each of the related Mortgage Note, related Mortgage, related assignment
of leases, if any, and other agreements executed in connection therewith is the
legal, valid and binding obligation of the maker thereof (subject to any
non-recourse provisions therein and any state anti-deficiency legislation),
enforceable in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally, and by general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law), and a legal opinion generally to such effect
was obtained by the originator of such Mortgage Loan at the time of origination;
(vi) as of the date of its origination, there was no valid offset, defense,
counterclaim or right to rescission with respect to any related Mortgage Note,
Mortgage or other agreement executed in connection with such Mortgage Loan, and,
as of the Cut-off Date, to the actual knowledge of the Mortgage Loan Seller,
there is no valid offset, defense, counterclaim or right of rescission with
respect to any related Mortgage Note, Mortgage or other agreement; (vii) the
assignment of the related Mortgage in favor of the Trustee constitutes the
legal, valid and binding
S-58
<PAGE>
assignment of such Mortgage to the Trustee (subject to customary bankruptcy and
creditors' rights limitations); (viii) the related Mortgage is (or, in the case
of a Cross-Collateralized Mortgage Loan, each of the related Mortgages are) a
valid and enforceable first lien on the related Mortgaged Property, which
Mortgaged Property is free and clear of all encumbrances and liens having
priority over or on a parity with the first lien of such Mortgage, except for
(A) liens for real estate taxes and special assessments not yet due and payable,
(B) covenants, conditions and restrictions, rights of way, easements and other
matters of public record as of the date of recording of such Mortgage, such
exceptions appearing of record being customarily acceptable to mortgage lending
institutions generally or specifically reflected in the appraisal of such
Mortgaged Property made in connection with the origination of such Mortgage
Loan, (C) other matters to which like properties are commonly subject which do
not, individually or in the aggregate, materially interfere with the benefits of
the security intended to be provided by such Mortgage or materially affect the
value or marketability of such Mortgaged Property and (D) any lien securing
another Mortgage Loan in the Trust Fund; (ix) to the actual knowledge of the
Mortgage Loan Seller, all taxes and governmental assessments that prior to the
Cut-off Date became due or owing in respect of, and affect, the related
Mortgaged Property (or, in the case of a Cross-Collateralized Mortgage Loan, the
related primary Mortgaged Property) have been paid, or an escrow of funds in an
amount sufficient to cover such payments has been established; (x) as of the
date of its origination, there was no proceeding pending for the total or
partial condemnation of the related Mortgaged Property (or, in the case of a
Cross-Collateralized Mortgage Loan, the related primary Mortgaged Property) that
materially affects the value thereof, and such Mortgaged Property was free of
material damage; and, as of the Cut-off Date, the Mortgage Loan Seller has not
received any notice of the commencement of any proceeding for the total or
partial condemnation of the related Mortgaged Property (or, in the case of a
Cross-Collateralized Mortgage Loan, the related primary Mortgaged Property) that
materially affects the value thereof, and such Mortgaged Property is free of
material damage; (xi) as of the date of its origination, all insurance required
under the related Mortgage for such Mortgage Loan was in full force and effect
with respect to the related Mortgaged Property (or, in the case of a
Cross-Collateralized Mortgage Loan, the related primary Mortgaged Property);
(xii) as of the Cut-off Date, no Mortgage Loan is, or in the prior 12 months,
has been, 30 days or more past due in respect of any Scheduled Payment; and
(xiii) one or more environmental site assessments were performed with respect to
the related Mortgaged Property (or, in the case of a Cross-Collateralized
Mortgage Loan, the related primary Mortgaged Property) during the 18-month
period preceding the Cut-off Date, and the Seller, having made no independent
inquiry other than to review the report(s) prepared in connection with the
assessment(s) referenced herein, has no knowledge of any material and adverse
environmental condition or circumstance affecting such Mortgaged Property that
was not disclosed in such report(s). For purposes of the foregoing, the "primary
Mortgaged Property" for any Cross-Collateralized Mortgage Loan is the property
or collectively the properties identified on Annex A by loan number as
specifically corresponding thereto.
In the case of a breach of any of the foregoing representations and
warranties that materially and adversely affects the interests of the
Certificateholders, the Mortgage Loan Seller, if it cannot cure such breach
within a period of 90 days following its receipt of notice thereof, will be
obligated pursuant to the Mortgage Loan Purchase Agreement (the relevant rights
under which will be assigned by the Depositor to the Trustee on or prior to the
Closing Date) to repurchase the affected Mortgage Loan at the applicable
Purchase Price; provided that, with limited exception, the Mortgage Loan Seller
will have an additional 90-day period to cure such breach if it is diligently
proceeding with such cure and has delivered to the Trustee an officer's
certificate that describes the reasons that a cure was not effected within the
first 90-day cure period and the actions it proposes to take to effect such cure
and which states that it anticipates such cure will be effected within the
additional 90-day period.
The foregoing repurchase obligation will constitute the sole remedy
available to the Certificateholders and the Trustee for any uncured breach of
the Mortgage Loan Seller's representations and warranties regarding the Mortgage
Loans. The Mortgage Loan Seller will be the sole warranting party in respect of
the Mortgage Loans, and neither the Depositor nor any of its other affiliates
will be obligated to
S-59
<PAGE>
repurchase any affected Mortgage Loan in connection with a breach of the
Mortgage Loan Seller's representations and warranties if the Mortgage Loan
Seller defaults on its obligation to do so. See "The Trust Agreement--Repurchase
of Non-Conforming Loans" in the Prospectus.
CHANGES IN MORTGAGE POOL CHARACTERISTICS
The description in this Prospectus Supplement of the Mortgage Pool and the
Mortgaged Properties is based upon the Mortgage Pool as expected to be
constituted at the time the Offered Certificates are issued. Prior to the
issuance of the Offered Certificates, a Mortgage Loan may be removed from the
Mortgage Pool if the Depositor deems such removal necessary or appropriate or if
it is prepaid. The Depositor believes that the information set forth herein will
be representative of the characteristics of the Mortgage Pool as it will be
constituted at the time the Offered Certificates are issued, although the range
of Mortgage Rates, maturities and certain other characteristics of the Mortgage
Loans in the Mortgage Pool may vary.
A Current Report on Form 8-K (the "Form 8-K") will be available to
purchasers of the Offered Certificates on or shortly after the Closing Date and
will be filed, together with the Pooling and Servicing Agreement, with the
Securities and Exchange Commission within fifteen days after the initial
issuance of the Offered Certificates. If Mortgage Loans are removed from or
added to the Mortgage Pool as described in the preceding paragraph, such removal
or addition will be noted in the Form 8-K.
S-60
<PAGE>
SERVICING OF THE MORTGAGE LOANS
GENERAL
Although the obligations and duties of the Master Servicer and the Special
Servicer with respect to the Mortgage Pool will initially be performed by a
single entity (see "--The Master Servicer and the Special Servicer" below), the
discussion herein is presented so as to reflect an allocation of
responsibilities as if two separate entities were acting as Master Servicer and
Special Servicer. In the event the obligations and duties of the Master Servicer
and the Special Servicer are performed by separate entities, neither entity will
be liable for the actions of the other as Master Servicer or Special Servicer.
The servicing of the Mortgage Loans and any REO Properties will be governed
by the Pooling and Servicing Agreement. The following summaries describe certain
provisions of the Pooling and Servicing Agreement relating to the servicing and
administration of the Mortgage Loans and any REO Properties. The summaries do
not purport to be complete and are subject, and qualified in their entirety by
reference, to the provisions of the Pooling and Servicing Agreement. Reference
is made to the Prospectus for additional information regarding the terms of the
Pooling and Servicing Agreement relating to the servicing and administration of
the Mortgage Loans and any REO Properties and to the rights and obligations of
the Master Servicer and the Special Servicer thereunder, PROVIDED THAT THE
INFORMATION HEREIN SUPERSEDES ANY CONTRARY INFORMATION SET FORTH IN THE
PROSPECTUS. See "Servicing of Mortgage Loans" and "The Trust Agreement" in the
Prospectus. For purposes of the Prospectus, the Pooling and Servicing Agreement
constitutes a Master Servicing Agreement and a Special Servicing Agreement.
The Master Servicer and the Special Servicer, either directly or through
sub-servicers, will be required to service and administer the Mortgage Loans on
behalf of the Trustee for the benefit of the Certificateholders, as determined
in the good faith and reasonable judgement of the Master Servicer or the Special
Servicer, as the case may be, in accordance with applicable law, the terms of
the Pooling and Servicing Agreement and the terms of the respective Mortgage
Loans and, to the extent consistent with the foregoing, in accordance with the
following standards (collectively, the "Servicing Standard"): (i) with the same
care, skill and diligence as is normal and usual in its general mortgage
servicing and asset management activities on behalf of third parties or on
behalf of itself, whichever is higher, with respect to mortgage loans comparable
to the Mortgage Loans; (ii) with a view to the timely collection of all
scheduled payments of principal and interest under the Mortgage Loans, or, if a
Mortgage Loan comes into and continues in default and if, in the good faith and
reasonable judgment of the Special Servicer, no satisfactory arrangements can be
made for the collection of the delinquent payments, the maximization of the
recovery on such Mortgage Loan to the Certificateholders (as a collective whole)
on a present value basis; and (iii) without regard to (A) any known relationship
that the Master Servicer or the Special Servicer, as the case may be, or any
affiliate thereof may have with the related borrower; (B) the ownership of any
Certificate by the Master Servicer or the Special Servicer, as the case may be,
or any affiliate thereof; (C) the Master Servicer's or the Special Servicer's
obligation to make Advances (as defined herein); and (D) the right of the Master
Servicer or the Special Servicer, as the case may be, or any affiliate of either
of them, to receive reimbursement of costs, or the sufficiency of any
compensation payable to it under the Pooling and Servicing Agreement or with
respect to any particular transaction. The Master Servicer and Special Servicer
will each be required to service and administer any group of related Cross-
Collateralized Mortgage Loans as a single Mortgage Loan as and when it deems
necessary and appropriate, consistent with the Servicing Standard.
In general, the Master Servicer will be responsible for the servicing and
administration of all the Mortgage Loans as to which no Servicing Transfer Event
(as defined herein) has occurred and all Corrected Mortgaged Loans (as defined
herein), and the Special Servicer will be obligated to service and administer
each Mortgage Loan (other than a Corrected Mortgage Loan) as to which a
Servicing Transfer Event has occurred (each, a "Specially Serviced Mortgage
Loan"). A "Servicing Transfer Event" with respect to any Mortgage Loan consists
of any of the following events: (a) any Monthly Payment shall be delinquent 60
or more days (or, in the case of a delinquent Balloon Payment, if the Master
Servicer determines that the related borrower has obtained a binding commitment
to refinance, such Balloon Payment shall be delinquent for such longer period of
delinquency (not to exceed 120 days) within which
S-61
<PAGE>
such refinancing is expected to occur); (b) the Master Servicer shall have
determined that (i) a default in making a Monthly Payment is likely to occur
within 30 days, (ii) such default is likely to remain unremedied for at least 60
days and (iii) in the case of a Balloon Payment, the related borrower is not
likely to refinance the subject Mortgage Loan within 120 days of the maturity
date; (c) there shall have occurred a default (other than as described in clause
(a) above) that materially impairs the value of the Mortgaged Property as
security for the Mortgage Loan or otherwise materially adversely affects the
interests of Certificateholders and that continues unremedied for the applicable
grace period under the terms of the Mortgage Loan (or, if no grace period is
specified, for 30 days); (d) a decree or order under any bankruptcy, insolvency
or similar law shall have been entered against the related borrower and such
decree or order shall have remained in force, undischarged or unstayed for a
period of 60 days; (e) the related borrower shall consent to the appointment of
a conservator or receiver or liquidator in any insolvency or similar proceedings
of or relating to such related borrower or of or relating to all or
substantially all of its property; (f) the related borrower shall admit in
writing its inability to pay its debts generally as they become due, file a
petition to take advantage of any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily
suspend payment of its obligations; or (g) the Master Servicer shall have
received notice of the commencement of foreclosure or similar proceedings with
respect to the related Mortgaged Property.
If a Servicing Transfer Event occurs with respect to any Mortgage Loan, the
Master Servicer is required to transfer certain of its servicing
responsibilities with respect thereto to the Special Servicer. Notwithstanding
such transfer, the Master Servicer will continue to receive payments on such
Mortgage Loan (including amounts collected by the Special Servicer), to make
certain calculations with respect to such Mortgage Loan, and to make remittances
(including, if necessary, P&I Advances) and prepare certain reports to the
Trustee with respect to such Mortgage Loan. If title to the related Mortgaged
Property is acquired by the Trust Fund (upon acquisition, an "REO Property"),
whether through foreclosure, deed in lieu of foreclosure or otherwise, the
Special Servicer will continue to be responsible for the operation and
management thereof. Mortgage Loans serviced by the Special Servicer are referred
to herein as "Specially Serviced Mortgage Loans" and, together with any REO
Properties, constitute "Specially Serviced Trust Fund Assets." The Master
Servicer will have no responsibility for the Special Servicer's performance of
its duties under the Pooling and Servicing Agreement.
A Mortgage Loan will cease to be a Specially Serviced Mortgage Loan (and
will become a "Corrected Mortgage Loan" as to which the Master Servicer will
re-assume servicing responsibilities):
(w) with respect to the circumstances described in clause (a) of the
second preceding paragraph, when the related borrower has made three
consecutive full and timely Monthly Payments under the terms of such
Mortgage Loan (as such terms may be changed or modified in connection with a
bankruptcy or similar proceeding involving the related borrower or by reason
of a written modification, waiver or amendment granted or agreed to by the
Special Servicer);
(x) with respect to any of the circumstances described in clauses (b),
(d), (e) and (f) of the second preceding paragraph, when such circumstances
cease to exist in the good faith, reasonable judgment of the Special
Servicer, but, with respect to any bankruptcy or insolvency proceedings
described in clauses (d), (e) and (f), no later than the entry of an order
or decree dismissing such proceeding;
(y) with respect to the circumstances described in clause (c) of the
second preceding paragraph, when such default is cured; and
(z) with respect to the circumstances described in clause (g) of the
second preceding paragraph, when such proceedings are terminated;
so long as at that time no other circumstance identified in such clauses (a)
through (g) then exists.
THE MASTER SERVICER AND THE SPECIAL SERVICER
The duties of both Master Servicer and Special Servicer will be performed by
GMAC Commercial Mortgage Corporation ("GMACCM"). The following information has
been provided by GMACCM. None
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of the Depositor, the Underwriter or any of their affiliates takes any
responsibility therefor or makes any representation or warranty as to the
accuracy or completeness thereof.
GMACCM, a corporation organized under the laws of the State of California,
is a wholly-owned direct subsidiary of GMAC Mortgage Group, Inc., which in turn
is a wholly-owned direct subsidiary of General Motors Acceptance Corporation.
The principal offices of GMACCM are located at 650 Dresher Road, Horsham,
Pennsylvania 19044. Its telephone number is (215) 328-4622. As of December 31,
1997, GMACCM was the servicer of a portfolio of multifamily and commercial
mortgage loans totaling approximately $40 billion in aggregate outstanding
principal amounts.
SERVICING AND OTHER COMPENSATION AND PAYMENT OF EXPENSES
The principal compensation to be paid to the Master Servicer in respect of
its servicing activities will be the Master Servicing Fee for each Mortgage
Loan, including each Specially Serviced Mortgage Loan and each Mortgage Loan as
to which the related Mortgaged Property has become an REO Property (an "REO
Mortgage Loan"). The "Master Servicing Fee" will be payable monthly on a
loan-by-loan basis from amounts received in respect of interest on each Mortgage
Loan, will be calculated on the basis of a 360-day year consisting of twelve
30-day months, will accrue at the related Master Servicing Fee Rate and will be
computed on the basis of the same principal amount respecting which any related
interest payment due on the Mortgage Loan is computed. For each Mortgage Loan,
the "Master Servicing Fee Rate" will be a per annum rate ranging from 0.0933% to
0.1733%. As of the Cut-off Date, the weighted average Master Servicing Fee Rate
is 0.1235% per annum.
If a borrower voluntarily prepays a Mortgage Loan on a date that is prior to
its Due Date in such Collection Period, the amount of interest (net of related
Servicing Fees (as defined herein) and, if applicable Additional Interest) that
accrues on the Mortgage Loan during such Collection Period, without regard to
any Prepayment Premium or Yield Maintenance Charge actually collected, will be
less (such shortfall, a "Prepayment Interest Shortfall") than the amount of
interest (net of related Servicing Fees and, if applicable, Additional Interest)
that would otherwise have accrued on the Mortgage Loan through such Due Date. If
such a principal prepayment occurs during any Collection Period after the Due
Date for such Mortgage Loan in such Collection Period, the amount of interest
(net of related Servicing Fees and, if applicable, Additional Interest) that
accrues and is collected on the Mortgage Loan during such Collection Period,
without regard to any Prepayment Premium or Yield Maintenance Charge actually
collected, will exceed (such excess, a "Prepayment Interest Excess") the amount
of interest (net of related Servicing Fees and, if applicable, Additional
Interest) that would have been collected on the Mortgage Loan during such
Collection Period if the borrower had not prepaid. Any Prepayment Interest
Excesses collected will be paid to the Master Servicer as additional servicing
compensation. However, with respect to each Distribution Date, the Master
Servicer will be required to deposit into the Collection Account (such deposit,
a "Compensating Interest Payment"), without any right of reimbursement therefor,
an amount equal to the lesser of (a) the aggregate of all Prepayment Interest
Shortfalls experienced with respect to the Mortgage Pool during the related
Collection Period and (b) the sum of (i) the aggregate of its Master Servicing
Fees for such Collection Period (but only to the extent of that portion thereof
calculated at a rate of 0.04% per annum with respect to each and every Mortgage
Loan) and (ii) the aggregate of all Prepayment Interest Excesses, if any,
collected with respect to the Mortgage Pool during such Collection Period.
Compensating Interest Payments will not cover shortfalls in Mortgage Loan
interest accruals that result from any liquidation of a defaulted Mortgage Loan,
or of any REO Property acquired in respect thereof, that occurs during a
Collection Period prior to the related Due Date therein.
The principal compensation to be paid to the Special Servicer in respect of
its special servicing activities will be: (i) the Special Servicing Fee
(together with the Master Servicing Fee, the "Servicing Fees") for each
Specially Serviced Mortgage Loan and each REO Mortgage Loan; (ii) the
Liquidation Fee for each Specially Serviced Trust Fund Asset as to which the
Special Servicer receives any full or discounted payoff or any Liquidation
Proceeds (as defined herein); and (iii) the Workout Fee for each Corrected
Mortgage Loan. The "Special Servicing Fee" will be calculated on the basis of a
360-day year consisting of twelve 30-day months, will accrue at a rate (the
"Special Servicing Fee Rate") equal to 0.25%
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per annum and will be computed on the basis of the same principal amount
respecting which any related interest payment on the related Specially Serviced
Mortgage Loan or REO Mortgage Loan is computed. However, earned Special
Servicing Fees will be payable out of general collections on the Mortgage Loans
then on deposit in the Custodial Account. The Special Servicing Fee with respect
to any Specially Serviced Mortgage Loan or REO Mortgage Loan will cease to
accrue if such Mortgage Loan (or the related REO Property) is liquidated or such
Mortgage Loan becomes a Corrected Mortgage Loan. The "Liquidation Fee" with
respect to each Specially Serviced Trust Fund Asset as to which any full or
discounted payoff or any Liquidation Proceeds have been received, will generally
be in an amount equal to 1.0% of such full or discounted payoff or such
Liquidation Proceeds; provided that no Liquidation Fee will be payable in
connection with, or out of Liquidation Proceeds resulting from, the purchase of
any Specially Serviced Trust Fund Asset (i) by the Mortgage Loan Seller (as
described herein under "Description of the Mortgage Pool--Assignment of the
Mortgage Loans; Repurchases" and "--Representations and Warranties;
Repurchases," (ii) by the Depositor, the Master Servicer, the Special Servicer,
the Underwriter or the Majority Subordinate Certificateholder as described
herein under "Description of the Certificates--Termination" or (iii) in certain
other limited circumstances. The "Workout Fee" with respect to each Corrected
Mortgage Loan will generally be an amount equal to 1.0% of all collections of
principal, interest, Prepayment Premiums and/or Yield Maintenance Charges
received in respect of such Corrected Mortgage Loan.
As additional servicing compensation, the Master Servicer and/or the Special
Servicer will be entitled to retain or receive, as the case may be, any
assumption fees, modification fees, extension fees, "Default Interest" (that is,
interest in excess of interest at the related Mortgage Rate (or, if applicable,
the Revised Rate) accrued in respect of any Mortgage Loan as a result of a
default thereunder) and late payment charges payable under the related loan
documents and actually collected on the Mortgage Loans, all such amounts to be
allocated between the Master Servicer and the Special Servicer as provided in
the Pooling and Servicing Agreement; provided that the Master Servicer's and/or
Special Servicer's right to receive Default Interest or late payment charges as
additional servicing compensation will be limited to the portion of such items
that have not been applied to cover interest on Advances in respect of the
related Mortgage Loan. In addition, each of the Master Servicer and the Special
Servicer is authorized to invest or direct the investment of funds held in those
accounts maintained by it that relate to the Mortgage Loans or REO Properties,
as the case may be, in certain short-term United States government securities
and other permitted investment grade obligations ("Permitted Investments"), and
the Master Servicer and the Special Servicer each will be entitled to retain any
interest or other income earned on such funds held in those accounts maintained
by it, but shall be required to cover any losses on investments of funds held in
those accounts maintained by it, from its own funds without any right to
reimbursement.
Each of the Master Servicer and Special Servicer will, in general, be
required to pay all ordinary expenses incurred by it in connection with its
servicing activities under the Pooling and Servicing Agreement, including the
fees of any sub-servicers retained by it, and will not be entitled to
reimbursement therefor except as expressly provided in the Pooling and Servicing
Agreement. In general, customary, reasonable and necessary "out of pocket" costs
and expenses required to be incurred by the Master Servicer or Special Servicer
in connection with the servicing of a Mortgage Loan after a default, delinquency
or other unanticipated event, or in connection with the administration of any
REO Property, will constitute "Servicing Advances" (Servicing Advances and P&I
Advances, collectively, "Advances") and, in all cases, will be reimbursable from
future payments and other collections, including in the form of Insurance
Proceeds, Condemnation Proceeds and Liquidation Proceeds (each as defined
herein), on or in respect of the related Mortgage Loan or REO Property ("Related
Proceeds"). Notwithstanding the foregoing, each of the Master Servicer and
Special Servicer will be permitted to pay certain of such expenses (including
certain expenses incurred as a result of a Mortgage Loan default) directly out
of the Custodial Account and at times without regard to the relationship between
the expense and the funds from which it is being paid. See "--The Custodial
Account" and "Description of the Certificates--Collection Account" herein.
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If the Master Servicer or Special Servicer is required under the Pooling and
Servicing Agreement to make a Servicing Advance, but neither does so within 15
days after such Servicing Advance is required to be made, then the Trustee will,
if it has actual knowledge of such failure, be required to give the defaulting
party notice of such failure and further will, if such failure continues for
three more business days, be required to make such Servicing Advance. The Fiscal
Agent will be required to make any such Servicing Advance that the Trustee was
required, but failed, to make.
Notwithstanding anything herein to the contrary, the Master Servicer, the
Special Servicer, the Trustee and the Fiscal Agent will be obligated to make
Servicing Advances only to the extent that such Servicing Advances are, in the
reasonable, good faith judgment of the Master Servicer, the Special Servicer,
the Trustee or the Fiscal Agent, as the case may be, ultimately recoverable from
Related Proceeds. With respect to any Servicing Advance, the Trustee and the
Fiscal Agent will be entitled to conclusively rely on the non-recoverability
determination made by the Master Servicer or Special Servicer.
The Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent
will be each entitled to receive interest, at the Reimbursement Rate, on any
Servicing Advances made by it. Such interest will compound annually and will be
paid: (i) at any time, out of Default Interest and late payment charges
collected on the related Mortgage Loan; and (ii) once the related Servicing
Advance has been reimbursed, out of general collections on the Mortgage Loans
then on deposit in the Custodial Account.
MODIFICATIONS, WAIVERS AND AMENDMENTS
The Pooling and Servicing Agreement will permit the Special Servicer to
modify, waive or amend any term of any Mortgage Loan if (a) it determines, in
accordance with the Servicing Standard, that it is appropriate to do so and (b)
except as described in the following paragraph, such modification, waiver or
amendment, will not (i) affect the amount or timing of any scheduled payments of
principal, interest or other amount (including Prepayment Premiums and Yield
Maintenance Charges but excluding Default Interest and other amounts payable as
additional servicing compensation) payable under the Mortgage Loan, (ii) affect
the obligation of the related borrower to pay a Prepayment Premium or Yield
Maintenance Charge or permit a principal prepayment during the applicable
Lockout Period, (iii) except as expressly provided by the related Mortgage or in
connection with a material adverse environmental condition at the related
Mortgaged Property, result in a release of the lien of the related Mortgage on
any material portion of such Mortgaged Property without a corresponding
principal prepayment or (iv) in the reasonable, good faith judgment of the
Special Servicer, materially impair the security for the Mortgage Loan or reduce
the likelihood of timely payment of amounts due thereon.
Notwithstanding clause (b) of the preceding paragraph, subject to the
following sentence and the discussion under "--The Controlling Class
Representative" below, the Special Servicer may (i) reduce the amounts owing
under any Specially Serviced Mortgage Loan by forgiving principal, accrued
interest and/or any Prepayment Premium or Yield Maintenance Charge, (ii) reduce
the amount of the Monthly Payment on any Specially Serviced Mortgage Loan,
including by way of a reduction in the related Mortgage Rate, (iii) forbear in
the enforcement of any right granted under any Mortgage Note or Mortgage
relating to a Specially Serviced Mortgage Loan, (iv) accept a principal
prepayment during any Lockout Period, or (v) extend the date on which any
Balloon Payment is scheduled to be due in respect of a Specially Serviced
Mortgage Loan; provided that (w) the related borrower is in default with respect
to the Specially Serviced Mortgage Loan or, in the reasonable, good faith
judgment of the Special Servicer, such default is reasonably foreseeable, (x) in
the reasonable, good faith judgment of the Special Servicer, such modification,
waiver or amendment would increase the recovery to Certificateholders on a net
present value basis, (y) such modification, waiver or amendment does not result
in a tax being imposed on the Trust Fund or cause any REMIC created pursuant to
the Pooling and Servicing Agreement to fail to qualify as a REMIC at any time
the Certificates are outstanding and (z) in connection with extending the date
on which any Balloon Payment is scheduled to be due in respect of a Specially
Serviced Mortgage Loan, the Special Servicer has obtained an appraisal, in
accordance with the standards of the Appraisal Institute, of the related
Mortgaged Property, performed by an independent appraiser, in connection with
such extension, which appraisal supports the determination of the Special
Servicer contemplated by clause (x) of this
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proviso. In no event, however, will the Special Servicer be permitted to (i)
extend the maturity date of a Mortgage Loan beyond a date that is two years
prior to the Rated Final Distribution Date, (ii) extend the maturity date of any
Mortgage Loan which has a Mortgage Rate below the then prevailing interest rate
for comparable loans, as determined by the Special Servicer, unless such
Mortgage Loan is a Balloon Loan as to which the borrower has failed to make the
Balloon Payment at its scheduled maturity and such Balloon Loan is not a
Specially Serviced Mortgage Loan (other than by reason of failure to make the
Balloon Payment) and has not been delinquent in the preceding 12 months (other
than with respect to the Balloon Payment), in which case the Special Servicer
may make up to three one-year extensions at the existing Mortgage Rate for such
Mortgage Loan (provided that such limitation of extensions made at a below
market rate will not limit the ability of the Special Servicer to extend the
maturity date of any Mortgage Loan at an interest rate at or in excess of the
prevailing rate for comparable loans at the time of such modification), (iii) if
the Mortgage Loan is secured by a ground lease, extend the maturity date of such
Mortgage Loan beyond a date which is less than 10 years prior to the expiration
of the term of such ground lease, (iv) reduce the Mortgage Rate to a rate below
the then prevailing interest rate for comparable loans, as determined by the
Special Servicer or (v) defer interest due on any Mortgage Loan in excess of 10%
of the Stated Principal Balance of such Mortgage Loan or defer the collection of
interest on any Mortgage Loan without accruing interest on such deferred
interest at a rate at least equal to the Mortgage Rate of such Mortgage Loan.
The Special Servicer will be required to notify the Trustee and the Master
Servicer of any modification, waiver or amendment of any term of any Mortgage
Loan, and to deliver to the Trustee or the related Custodian, for deposit in the
related Mortgage File, an original counterpart of the agreement related to such
modification, waiver or amendment, promptly (and in any event within 10 business
days) following the execution thereof. Upon reasonable prior written notice to
the Trustee, copies of each agreement whereby any such modification, waiver or
amendment of any term of any Mortgage Loan is effected are required to be
available for review during normal business hours at the offices of the Trustee.
See "Description of the Certificates--Reports to Certificateholders; Available
Information" herein.
CUSTODIAL ACCOUNT
GENERAL. The Master Servicer will be required to establish and maintain one
or more separate accounts for the collection of payments on the Mortgage Loans
(collectively, the "Custodial Account"), which will be established in such
manner and/or with such a depository as are specified in the Pooling and
Servicing Agreement or, as confirmed in writing by each Rating Agency, as would
not cause a qualification, downgrade or withdrawal of any of the ratings then
assigned by it to any Class of Certificates (and, accordingly, which constitute
an "Eligible Account"). The funds held in the Custodial Account may be held as
cash or invested in Permitted Investments.
Any interest or other income earned on funds in the Custodial Account will
be paid to the Master Servicer as additional compensation subject to the
limitations set forth in the Pooling and Servicing Agreement. See "--Servicing
and Other Compensation and Payment of Expenses" above.
DEPOSITS. The Master Servicer will be required to deposit or cause to be
deposited in the Custodial Account upon receipt (in the case of collections and
payments on the Mortgage Loans) or as otherwise required under the Pooling and
Servicing Agreement, the following payments and collections received or made by
or on behalf of the Master Servicer subsequent to the Closing Date (other than
in respect of scheduled payments of principal and interest due on the Mortgage
Loans on or before the Cut-off Date, which belong to the Mortgage Loan Seller):
(i) all payments on account of principal on the Mortgage Loans,
including principal prepayments;
(ii) all payments on account of interest on the Mortgage Loans,
including Default Interest and Additional Interest;
(iii) all Prepayment Premiums and Yield Maintenance Charges;
(iv) (A) all proceeds received under any hazard, flood, title or other
insurance policy that provides coverage with respect to a Mortgaged Property
or the related Mortgage Loan (collectively
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with any comparable amounts received with respect to an REO Property,
"Insurance Proceeds"), other than any such proceeds applied to the
restoration of the property or otherwise released to the borrower or another
appropriate person, (B) all proceeds received in connection with the
condemnation or the taking by right of eminent domain of a Mortgaged
Property (collectively with any comparable amounts received with respect to
an REO Property, "Condemnation Proceeds"), other than any such proceeds
applied to the restoration of the property or otherwise released to the
borrower or another appropriate person, and (C) all other amounts received
and retained in connection with the liquidation of defaulted Mortgage Loans
by foreclosure or otherwise (collectively with any amounts received in
connection with the sale of an REO Property and the amounts described in
clause (v) below, "Liquidation Proceeds");
(v) all cash proceeds paid in connection with (A) the repurchase of any
Mortgage Loan by the Mortgage Loan Seller as described under "Description of
the Mortgage Pool--Assignment of the Mortgage Loans; Repurchases" or
"--Representations and Warranties; Repurchases" herein, (B) the purchase of
any defaulted Mortgage Loan by any party as described under "--Realization
Upon Defaulted Mortgage Loans; Sale of Defaulted Mortgage Loans and REO
Properties" below and (C) the purchase of all remaining Mortgage Loans and
REO Properties by the Depositor, the Master Servicer, the Special Servicer,
the Underwriter or the Majority Subordinate Certificateholder as described
under "Description of the Certificates--Termination" herein;
(vi) any amounts required to be deposited by the Master Servicer in
connection with losses incurred with respect to Permitted Investments of
funds held in the Custodial Account;
(vii) all payments required to be deposited by the Master Servicer or the
Special Servicer in the Custodial Account with respect to any deductible
clause in any blanket insurance policy described under "--Maintenance of
Insurance" herein;
(viii) any amount required to be transferred from the REO Account (if
established); and
(ix) any other amounts required to be so deposited under the Pooling and
Servicing Agreement.
Upon receipt of any of the amounts described in clauses (i) through (v)
above with respect to any Specially Serviced Mortgage Loan, the Special Servicer
is generally required to promptly remit such amounts to the Master Servicer for
deposit in the Custodial Account.
WITHDRAWALS. The Master Servicer may make withdrawals from the Custodial
Account for any of the following purposes (the order set forth below not
constituting an order of priority for such withdrawals):
(i) to remit to the Trustee on or before the Distribution Date each
month an amount generally equal to that portion of the Available
Distribution Amount (inclusive of any amounts to be paid or reimbursed from
the Collection Account by the Trustee) for the related Distribution Date
then on deposit in the Custodial Account, together with any Prepayment
Premiums and/or Yield Maintenance Charges received during the related
Collection Period and in the case of the final distribution date, any
additional amounts received in connection with a purchase of all remaining
Mortgage Loans and REO Properties by the Depositor, the Master Servicer, the
Special Servicer, the Underwriter or the Majority Subordinate
Certificateholder as described under "Description of the
Certificates--Termination" herein;
(ii) to apply amounts held for future distribution on the Certificates
to make P&I Advances;
(iii) to reimburse the Fiscal Agent, the Trustee or itself (in that
order), as applicable, for unreimbursed P&I Advances (other than P&I
Advances that constitute Nonrecoverable Advances (as defined below), which
are reimbursable as described in clause (viii) below) made thereby (in each
case, with its own funds), such reimbursement to be made out of amounts
received which were identified and applied by the Master Servicer as late
collections of interest and principal (net of related Master Servicing Fees
and any related Workout Fees) on the particular Mortgage Loan (including an
REO Mortgage Loan) as to which each such P&I Advance was made;
(iv) to pay itself earned and unpaid Master Servicing Fees in respect of
each Mortgage Loan (including each Specially Serviced Mortgage Loan and each
REO Mortgage Loan), such payment
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being limited to amounts received on or in respect of such Mortgage Loan
that are allocable as a recovery of interest thereon;
(v) to pay the Special Servicer, out of general collections on the
Mortgage Loans, Special Servicing Fees in respect of each Specially Serviced
Mortgage Loan and each REO Mortgage Loan;
(vi) to pay the Special Servicer earned and unpaid Workout Fees and
Liquidation Fees to which it is entitled as and from the sources described
above under "--Servicing and Other Compensation and Payment of Expenses";
(vii) to reimburse the Fiscal Agent, the Trustee, itself or the Special
Servicer (in that order), as applicable, for any unreimbursed Servicing
Advances made thereby (in each case, with its own funds), such reimbursement
to be made out of Related Proceeds;
(viii) to reimburse the Fiscal Agent, the Trustee, itself or the Special
Servicer (in that order), as applicable, out of general collections on the
Mortgage Loans and REO Properties, for any unreimbursed Advances made
thereby (in each case, with its own funds) that have been determined not to
be ultimately recoverable from Related Proceeds (any such Advance, a
"Nonrecoverable Advance");
(ix) at or following such time as it reimburses the Fiscal Agent, the
Trustee, the Special Servicer or itself, as applicable, for any unreimbursed
Advance as described in clause (iii), (vii) or (viii) above, to pay Fiscal
Agent, the Trustee, the Special Servicer or itself (in that order), as the
case may be, out of general collections on the Mortgage Loans and any REO
Properties, any interest at the Reimbursement Rate accrued and payable on
such Advance;
(x) to pay, out of general collections on the Mortgage Loans and any REO
Properties, for costs and expenses incurred by the Trust Fund in connection
with environmental testing and/or remediation as described in "--Realization
Upon Defaulted Mortgage Loans; Sale of Defaulted Mortgage Loans and REO
Properties";
(xi) to pay itself, as additional servicing compensation, (A) interest
and investment income earned in respect of amounts held in the Custodial
Account, (B) any Prepayment Interest Excesses and (C) Default Interest in
respect of Mortgage Loans that are not Specially Serviced Mortgage Loans or
REO Mortgage Loans, and to pay the Special Servicer as additional servicing
compensation, Default Interest in respect of Specially Serviced Mortgage
Loans and REO Mortgage Loans;
(xii) to pay, out of general collections on the Mortgage Loans and any
REO Properties, for the cost of an independent appraiser or other expert in
real estate matters as required under the Pooling and Servicing Agreement;
(xiii) to pay itself, the Special Servicer, the Depositor, or any of their
respective directors, officers, employees and agents, as the case may be,
out of general collections on the Mortgage Loans and any REO Properties,
amounts payable to any such person as described under "--Certain Matters
Regarding the Depositor, the Master Servicer and the Special Servicer"
below;
(xiv) to pay, out of general collections on the Mortgage Loans and any
REO Properties, for the cost of certain advice of counsel and tax
accountants, the cost of certain opinions of counsel and the cost of
recording the Pooling and Servicing Agreement, all as set forth in the
Pooling and Servicing Agreement;
(xv) with respect to each Mortgage Loan purchased pursuant to or as
contemplated by the Pooling and Servicing Agreement, to pay to the purchaser
thereof all amounts received thereon subsequent to the date of purchase;
(xvi) to pay certain servicing expenses that would, if advanced,
constitute Nonrecoverable Advances, but the payment of which is determined
nonetheless to be in the best interests of the Certificateholders; and
(xvii) to clear and terminate the Custodial Account upon the termination
of the Pooling and Servicing Agreement.
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THE CONTROLLING CLASS REPRESENTATIVE
SELECTION. The Pooling and Servicing Agreement permits the holder (or
holders) of the majority of the Voting Rights allocated to the Controlling Class
of Sequential Pay Certificates to replace the Special Servicer and to select a
representative (the "Controlling Class Representative") from whom the Special
Servicer will seek advice and approval and take direction under certain
circumstances; provided that, if the Controlling Class of Certificates is held
in book-entry form and confirmation of the identities of the related Certificate
Owners has been provided to the Trustee, such Certificate Owners entitled to a
majority of the Voting Rights allocated to the Controlling Class will be
entitled to directly replace the Special Servicer and/or select a Controlling
Class Representative. The "Controlling Class" of Sequential Pay Certificates is
the Class of Sequential Pay Certificates with the latest alphabetical Class
designation that has a Certificate Balance that is greater than 25% of its
original Certificate Balance; provided that if no Class of Sequential Pay
Certificates has a Certificate Balance that is greater than 25% of its original
Certificate Balance, the then outstanding Class of Sequential Pay Certificates
with the latest alphabetical Class designation will be the "Controlling Class"
of Sequential Pay Certificates. The Class A-1, Class A-2 and Class A-3
Certificates will be treated as one Class for determining the Controlling Class
of Sequential Pay Certificates.
CERTAIN RIGHTS AND POWERS. The Controlling Class Representative will be
entitled to advise the Special Servicer with respect to the following actions of
the Special Servicer, and subject to the discussion in the second following
paragraph, the Special Servicer will not be permitted to take any of the
following actions as to which the Controlling Class Representative has objected
in writing within 10 business days of having been notified thereof and having
been provided with all reasonably requested information with respect thereto
(provided that if such written objection has not been received by the Special
Servicer within such 10 business day period, then the Controlling Class
Representative's approval will be deemed to have been given):
(i) any foreclosure upon or comparable conversion (which may include
acquisitions of an REO Property) of the ownership of properties securing
such of the Specially Serviced Mortgage Loans as come into and continue in
default;
(ii) any modification of a monetary term (including the timing of
payments) or any material non-monetary term of a Mortgage Loan;
(iii) any proposed sale of a defaulted Mortgage Loan or REO Property
(other than in connection with the termination of the Trust Fund as
described under "Description of the Certificates-- Termination" herein) for
less than the applicable Purchase Price;
(iv) any acceptance of a discounted payoff;
(v) any determination to bring an REO Property into compliance with
applicable environmental laws or to otherwise address hazardous materials
located at an REO Property;
(vi) any release of collateral (other than in accordance with the terms
of, or upon satisfaction of, a Mortgage Loan);
(vii) any acceptance of substitute or additional collateral for a
Mortgage Loan;
(viii) any waiver of a "due-on-sale" or "due-on-encumbrance" clause; and
(ix) any acceptance of an assumption agreement releasing a borrower from
liability under a Mortgage Loan.
In addition, subject to the discussion in the following paragraph, the
Controlling Class Representative may direct the Special Servicer to take, or to
refrain from taking, such other actions as the Controlling Class Representative
may deem advisable or as to which provision is otherwise made in the Pooling and
Servicing Agreement.
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The foregoing notwithstanding, no such advice, direction or objection
contemplated by either of the two preceding paragraphs may require or cause the
Special Servicer to violate any provision of the Pooling and Servicing
Agreement, including the Special Servicer's obligation to act in accordance with
the Servicing Standard.
LIMITATION ON LIABILITY OF CONTROLLING CLASS REPRESENTATIVE. The
Controlling Class Representative will have no liability to the
Certificateholders for any action taken, or for refraining from the taking of
any action, in good faith pursuant to the Pooling and Servicing Agreement, or
for errors in judgment; provided, however, that the Controlling Class
Representative will not be protected against any liability which would otherwise
be imposed by reason of willfull misfeasance, bad faith or negligence in the
performance of duties or by reason of reckless disregard of obligations or
duties. Each Certificateholder acknowledges and agrees, by its acceptance of its
Certificates, that the Controlling Class Representative may have special
relationships and interests that conflict with those of holders of one or more
Classes of Certificates, that the Controlling Class Representative may act
solely in the interests of the holders of the Controlling Class, that the
Controlling Class Representative does not have any duties to the holders of any
Class of Certificates other than the Controlling Class, that the Controlling
Class Representative may take actions that favor the interests of the holders of
the Controlling Class over the interests of the holders of one or more other
Classes, that the Controlling Class Representative will not be deemed to have
been negligent or reckless, or to have acted in bad faith or engaged in willfull
misconduct by reason of its having acted solely in the interests of the
Controlling Class, and that the Controlling Class Representative will have no
liability whatsoever for having so acted, and no Certificateholder may take any
action whatsoever against the Controlling Class Representative for having so
acted. With limited exception, Special Servicer will be required by the Pooling
and Servicing Agreement to keep confidential all advice, directions,
recommendations and/or objections received from the Controlling Class
Representative.
REALIZATION UPON DEFAULTED MORTGAGE LOANS; SALE OF DEFAULTED MORTGAGE LOANS AND
REO PROPERTIES
A borrower's failure to make required Mortgage Loan payments may mean that
operating income is insufficient to service the mortgage debt, or may reflect
the diversion of that income from the servicing of the mortgage debt. In
addition, a borrower that is unable to make Mortgage Loan payments may also be
unable to make timely payments of taxes and to otherwise maintain and insure the
related Mortgaged Property. In general, the Special Servicer will be required to
monitor any Mortgage Loan that is in default, evaluate whether the causes of the
default can be corrected over a reasonable period without significant impairment
of the value of the related Mortgaged Property, initiate corrective action in
cooperation with the borrower if cure is likely, inspect the related Mortgaged
Property and take such other actions as are consistent with the Servicing
Standard. A significant period of time may elapse before the Special Servicer is
able to assess the success of any such corrective action or the need for
additional initiatives.
The time within which the Special Servicer can make the initial
determination of appropriate action, evaluate the success of corrective action,
develop additional initiatives, institute foreclosure proceedings and actually
foreclose (or accept a deed to a Mortgaged Property in lieu of foreclosure) on
behalf of the Certificateholders may vary considerably depending on the
particular Mortgage Loan, the Mortgaged Property, the borrower, the presence of
an acceptable party to assume the Mortgage Loan and the laws of the jurisdiction
in which the Mortgaged Property is located. If a borrower files a bankruptcy
petition, the Special Servicer may not be permitted to accelerate the maturity
of the related Mortgage Loan or to foreclose on the Mortgaged Property for a
considerable period of time. See "Certain Legal Aspects of Mortgage Loans" in
the Prospectus.
The Pooling and Servicing Agreement grants to the Master Servicer, the
Special Servicer and any holder of Certificates evidencing a majority interest
(or, if no Certificateholder holds a majority interest, the holder of
Certificates evidencing the largest interest) in the Controlling Class (the
"Majority Subordinate Certificateholder") a right to purchase from the Trust
Fund certain defaulted Specially Serviced Mortgage Loans in the priority
described below. If the Special Servicer has determined in good
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faith that any such defaulted Specially Serviced Mortgage Loan will become
subject to foreclosure proceedings, the Special Servicer will be required to
promptly so notify in writing the Trustee and the Master Servicer, and the
Trustee will be required, within ten days after receipt of such notice, to
notify the Majority Subordinate Certificateholder. Such Certificateholder may at
its option purchase from the Trust Fund, at a cash price equal to the applicable
Purchase Price, any such defaulted Specially Serviced Mortgage Loan at any time
prior to liquidation thereof; provided that if such Certificateholder has not
purchased such defaulted Specially Serviced Mortgage Loan within 30 days of its
having received notice in respect thereof, either the Special Servicer or the
Master Servicer, in that order of preference, may at its option also purchase
such Mortgage Loan from the Trust Fund, at a cash price equal to the applicable
Purchase Price. In addition, the Special Servicer may offer to sell any such
defaulted Specially Serviced Mortgage Loan not otherwise purchased as described
in the preceding sentence, if and when the Special Servicer determines,
consistent with the Servicing Standard, that such a sale would be in the best
economic interests of the Trust Fund. Such offer will be required to be made in
a commercially reasonable manner for a period of not less than ten days. Unless
the Special Servicer determines that acceptance of any bid would not be in the
best economic interests of the Certificateholders (as a collective whole) and
subject to any rights that the Controlling Class Representative may have to
object if the winning bid is not at least equal to the applicable Purchase
Price, the Special Servicer will be required to accept the highest cash bid
received from any person that constitutes a "fair price" (determined in
accordance with the Pooling and Servicing Agreement) for the particular Mortgage
Loan. See "--The Controlling Class Representative-- Certain Rights and Powers"
above.
Notwithstanding any of the foregoing, the Special Servicer will not be
obligated to accept the highest cash bid if the Special Servicer determines, in
accordance with the Servicing Standard, that rejection of such bid would be in
the best interests of the Certificateholders (as a collective whole); and
subject to any rights that the Controlling Class Representative may have to
object if the winning bid is not at least equal to the applicable Purchase
Price, the Special Servicer may accept a lower cash bid (from any person or
entity other than itself or an affiliate) if it determines, in accordance with
the Servicing Standard, that acceptance of such bid would be in the best
interests of the Certificateholders (as a collective whole) (for example, if the
prospective buyer making the lower bid is more likely to perform its obligations
or the terms (other than the price) offered by the prospective buyer making the
lower bid are more favorable).
Neither the Trustee, in its individual capacity, nor any of its affiliates
may bid for or purchase any defaulted Specially Serviced Mortgage Loan or any
REO Property.
The Special Servicer will be required to exercise reasonable efforts,
consistent with the Servicing Standard and the discussion under "--The
Controlling Class Representative--Certain Rights and Powers" above, to foreclose
upon or otherwise comparably convert the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments and
which are not sold as described above. Notwithstanding the foregoing, neither
the Master Servicer nor the Special Servicer is permitted, on behalf of the
Trust Fund, to obtain title to a Mortgaged Property by foreclosure, deed in lieu
of foreclosure or otherwise, or take any other action with respect to any
Mortgaged Property, if, as a result of any such action, the Trustee, on behalf
of the Certificateholders, could, in the reasonable, good faith judgment of the
Special Servicer exercised in accordance with the Servicing Standard, be
considered to hold title to, to be a "mortgagee-in-possession" of, or to be an
"owner" or "operator" of such Mortgaged Property within the meaning of CERCLA or
any comparable law, unless:
(i) the Special Servicer has previously determined in accordance with
the Servicing Standard, based on a report prepared by a person who regularly
conducts environmental audits, that the Mortgaged Property is in compliance
with applicable environmental laws and regulations and there are no
circumstances or conditions present at the Mortgaged Property that have
resulted in any contamination for which investigation, testing, monitoring,
containment, clean-up or remediation could be required under any applicable
environmental laws and regulations; or
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(ii) in the event that the determination described in the immediately
preceding clause (i) above cannot be made, (A) the Special Servicer has
previously determined in accordance with the Servicing Standard, on the same
basis as described in the immediately preceding clause (i) above, that it
would maximize the recovery to the Certificateholders on a present value
basis to acquire title to or possession of the Mortgaged Property and to
take such remedial, corrective and/or other further actions as are necessary
to bring the Mortgaged Property into compliance with applicable
environmental laws and regulations and to appropriately address any of the
circumstances and conditions referred to in the immediately preceding clause
(i) above, and (B) the Controlling Class Representative has not properly
objected to the Special Servicer's doing so. See "--The Controlling Class
Representative --Certain Rights and Powers" above and "Certain Legal Aspects
of Mortgage Loans-- Environmental Matters" in the Prospectus.
The cost of any environmental testing, as well as the cost of any remedial,
corrective or other further action contemplated by clause (ii) of the preceding
paragraph, is payable directly out of the Custodial Account.
If neither of the conditions set forth in clauses (i) and (ii) of the second
preceding paragraph has been satisfied with respect to any Mortgaged Property
securing a defaulted Mortgage Loan, the Special Servicer will be required to
take such action as is in accordance with the Servicing Standard (other than
proceeding against the Mortgaged Property) and, at such time as it deems
appropriate, may, on behalf of the Trustee, release all or a portion of such
Mortgaged Property from the lien of the related Mortgage; provided that, if such
Mortgage Loan has a then outstanding principal balance greater than $1 million,
then, prior to effecting such release, (i) the Special Servicer shall have
notified the Rating Agencies, the Trustee and the Master Servicer, (ii) the
Trustee shall have notified the Certificateholders and (iii) the holders of
Certificates entitled to a majority of the Voting Rights (as defined herein)
shall not have objected to such release within 30 days of their having been so
notified thereof.
REO PROPERTIES
If title to any Mortgaged Property is acquired by the Trustee on behalf of
the Certificateholders pursuant to foreclosure proceedings instituted by the
Special Servicer or otherwise, the Special Servicer, on behalf of such holders,
will be required to sell the Mortgaged Property by the end of the third calendar
year following the calendar year of acquisition, unless (i) the Internal Revenue
Service grants an extension of time to sell such property (an "REO Extension")
or (ii) the Special Servicer obtains an opinion of counsel generally to the
effect that the holding of the property for more than three years after the end
of the calendar year in which it was acquired will not result in the imposition
of a tax on the Trust Fund or cause any REMIC created pursuant to the Pooling
and Servicing Agreement to fail to qualify as a REMIC under the Code. Subject to
the foregoing, the Special Servicer will generally be required to solicit bids
for any Mortgaged Property so acquired in such a manner as will be reasonably
likely to realize a fair price for such property. The Special Servicer may
retain an independent contractor to operate and manage any REO Property;
however, the retention of an independent contractor will not relieve the Special
Servicer of its obligations with respect to such REO Property.
In general, the Special Servicer or an independent contractor employed by
the Special Servicer at the expense of the Trust Fund will be obligated to
operate and manage any Mortgaged Property acquired as REO Property in a manner
that (i) maintains its status as "foreclosure property" under the REMIC
Provisions and (ii) would, to the extent commercially reasonable and consistent
with the foregoing clause (i), maximize the Trust Fund's net after-tax proceeds
from such property. After the Special Servicer reviews the operation of such
property and consults with the Trustee (or any person appointed thereby to act
as REMIC administrator) to determine the Trust Fund's federal income tax
reporting position with respect to the income it is anticipated that the Trust
Fund would derive from such property, the Special Servicer could determine
(particularly in the case of an REO Property that is a hospitality or
residential health care facility) that it would not be commercially reasonable
to manage and operate such property in a manner
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that would avoid the imposition of a tax on "net income from foreclosure
property", within the meaning of Section 857(b)(4)(B) of the Code or a tax on
"prohibited transactions" under Section 860F of the Code (either such tax
referred to herein as an "REO Tax"). To the extent that income the Trust Fund
receives from an REO Property is subject to a tax on (i) "net income from
foreclosure property" such income would be subject to federal tax at the highest
marginal corporate tax rate (currently 35%) or (ii) "prohibited transactions,"
such income would be subject to federal tax at a 100% rate. The determination as
to whether income from an REO Property would be subject to an REO Tax will
depend on the specific facts and circumstances relating to the management and
operation of each REO Property. Generally, income from an REO Property that is
directly operated by the Special Servicer would be apportioned and classified as
"service" or "non-service" income. The "service" portion of such income could be
subject to federal tax either at the highest marginal corporate tax rate or at
the 100% rate on "prohibited transactions," and the "non-service" portion of
such income could be subject to federal tax at the highest marginal corporate
tax rate or, although it appears unlikely, at the 100% rate applicable to
"prohibited transactions." Any REO Tax imposed on the Trust Fund's income from
an REO Property would reduce the amount available for distribution to
Certificateholders. Certificateholders are advised to consult their tax advisors
regarding the possible imposition of REO Taxes in connection with the operation
of commercial REO Properties by REMICs. See "Certain Federal Income Tax
Consequences" herein and "Federal Income Tax Considerations" in the Prospectus.
The reasonable "out-of-pocket" costs and expenses of obtaining professional tax
advice in connection with the foregoing will be payable out of the Custodial
Account.
The Special Servicer will be required to segregate and hold all funds
collected and received in connection with any REO Property separate and apart
from its own funds and general assets. If an REO Property is acquired, the
Special Servicer will be required to establish and maintain one or more accounts
(collectively, the "REO Account"), to be held on behalf of the Trustee in trust
for the benefit of the Certificateholders, for the retention of revenues and
other proceeds derived from each REO Property. The REO Account is to be an
Eligible Account. The Special Servicer will be required to deposit, or cause to
be deposited, in the REO Account, upon receipt, all net income, Insurance
Proceeds, Condemnation Proceeds and Liquidation Proceeds received in respect of
an REO Property. The funds held in the REO Account may be held as cash or
invested in Permitted Investments. Any interest or other income earned on funds
in the REO Account will be payable to the Special Servicer, subject to the
limitations set forth in the Pooling and Servicing Agreement.
The Special Servicer will be required to withdraw from the REO Account funds
necessary for the proper operation, management, leasing, maintenance and
disposition of any REO Property, but only to the extent of amounts on deposit in
the REO Account relating to such REO Property. Promptly following the end of
each Collection Period, the Special Servicer will be required to withdraw from
the REO Account and deposit, or deliver to the Master Servicer for deposit, into
the Custodial Account the aggregate of all amounts received in respect of each
REO Property during such Collection Period, net of any withdrawals made out of
such amounts as described in the preceding sentence; provided that the Special
Servicer may, subject to certain limitations set forth in the Pooling and
Servicing Agreement, retain in the REO Account such portion of such proceeds and
collections as may be necessary to maintain a reserve of sufficient funds for
the proper operation, management, leasing, maintenance and disposition of the
related REO Property (including the creation of a reasonable reserve for
repairs, replacements and necessary capital improvements and other related
expenses).
REPLACEMENT OF THE SPECIAL SERVICER
The Pooling and Servicing Agreement will permit the holder (or holders) of
the majority of the Voting Rights allocated to the Controlling Class to
terminate an existing Special Servicer and to appoint a successor thereto. Any
such appointment of a successor Special Servicer will be subject to, among other
things, the Trustee's receipt of (i) written confirmation from each Rating
Agency that the appointment will
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not result in a qualification, downgrade or withdrawal of any of the ratings
then assigned thereby to the respective Classes of Certificates, and (ii) the
written agreement of the proposed Special Servicer to be bound by the terms and
conditions of the Pooling and Servicing Agreement, together with an opinion of
counsel regarding, among other things, the enforceability thereof. Subject to
the foregoing, any Certificateholder or affiliate thereof may be appointed as
Special Servicer.
INSPECTIONS; COLLECTION OF OPERATING INFORMATION
The Special Servicer will be required to perform or cause to be performed a
physical inspection of each REO Property and each Mortgaged Property securing a
Specially Serviced Mortgage Loan, at least once per calendar year. In addition,
the Master Servicer will be required to inspect or cause to be inspected each
other Mortgaged Property at least once per calendar year. The Master Servicer
and the Special Servicer will each be required to promptly prepare or cause to
be prepared (and, in the case of the Special Servicer, to deliver to the Master
Servicer) a written report of each such inspection performed by it that
generally describes the condition of the Mortgaged Property and that specifies
the existence with respect thereto of any sale, transfer or abandonment or any
material change in its condition or value.
The Special Servicer, in the case of any Specially Serviced Mortgage Loans,
and the Master Servicer, in the case of all other Mortgage Loans, will also be
required to use reasonable efforts to collect from the related borrower (and, in
the case of the Special Servicer, to deliver to the Master Servicer) the
quarterly and annual operating statements and rent rolls with respect to each of
the Mortgaged Properties and REO Properties. In connection therewith, with
respect to each Mortgaged Property and REO Property, the Master Servicer will be
required to prepare (based on reports generated by itself and the Special
Servicer) and deliver to the Trustee a Comparative Financial Status Report for,
or as of the end of, the applicable period. See "Description of the
Certificates--Reports to Certificateholders; Available Information" herein. Each
of the Mortgages requires the related borrower to deliver an annual property
operating statement. However, there can be no assurance that any operating
statements required to be delivered will in fact be delivered, nor are the
Master Servicer and the Special Servicer likely to have any practical means of
compelling such delivery in the case of an otherwise performing Mortgage Loan.
If and to the extent reasonably requested by any Certificateholder or any
Certificate Owner identified to the reasonable satisfaction of the Trustee, the
Trustee will be required to request from the Master Servicer and, upon receipt,
make available to the requesting Certificateholder or Certificate Owner, during
normal business hours at the offices of the Trustee, copies of the inspection
reports and operating statements referred to above. See "Description of the
Certificates--Reports to Certificateholders; Available Information" herein.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE PROVISIONS
Substantially all of the Mortgages contain "due-on-sale" and
"due-on-encumbrance" provisions, that, in general, entitle the holder thereof to
accelerate the maturity of the related Mortgage Loan upon any sale or other
transfer of, or upon the creation of any lien or other encumbrance upon, the
related Mortgaged Property or prohibit the borrower from doing so without the
consent of the lender. With respect to each Mortgage Loan, the Special Servicer,
on behalf of the Trustee as the mortgagee of record, will be required under the
Pooling and Servicing Agreement, to the extent permitted by applicable law, to
enforce the restrictions contained in the related Mortgage on transfers or
further encumbrances of the related Mortgaged Property and on transfers of
interests in the related borrower, unless the Special Servicer determines, in
its reasonable, good faith judgment, that waiver of such restrictions is in
accordance with the Servicing Standard and has not been properly objected to by
the Controlling Class Representative. See "--Controlling Class
Representative--Certain Rights and Powers" above. Notwithstanding the foregoing,
the Special Servicer's exercise of any such waiver in respect of a
due-on-encumbrance provision is conditioned upon its receipt of prior written
confirmation from each Rating Agency (in the case of DCR, only if the related
Mortgage Loan represents 2% or more of the then aggregate unpaid
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principal balance of the Mortgage Pool) that such action would not result in a
qualification, downgrade or withdrawal of any of the ratings then assigned to
the Certificates.
MAINTENANCE OF INSURANCE
The Master Servicer (with respect to Mortgage Loans other than Specially
Serviced Mortgaged Loans) and the Special Servicer (with respect to Specially
Serviced Mortgage Loans) are required, consistent with the Servicing Standard,
to cause to be maintained for each Mortgaged Property all insurance coverage as
is required under the related Mortgage; provided that if and to the extent that
any such Mortgage permits the holder thereof any discretion (by way of consent,
approval or otherwise) as to the insurance coverage that the related borrower is
required to maintain, the Master Servicer or the Special Servicer, as the case
may be, is to exercise such discretion in a manner consistent with the Servicing
Standard; and provided further that, if and to the extent that a Mortgage so
permits, the related borrower will be required to exercise its reasonable best
efforts to obtain the required insurance coverage from insurance companies or
security or bonding companies qualified to write the related insurance policy in
the relevant jurisdiction ("Qualified Insurers") that have a "claims paying
ability" rating meeting the requirements of the Pooling and Servicing Agreement.
The Majority Subordinate Certificateholder may request that earthquake insurance
be secured for one or more Mortgaged Properties at its expense.
The Special Servicer is required consistent with the Servicing Standard to
cause to be maintained for each REO Property no less insurance coverage than was
previously required of the borrower under the related Mortgage, all such
insurance to be obtained from Qualified Insurers that have, if they are
providing casualty insurance, a "claims paying ability" rating meeting the
requirements of the Pooling and Servicing Agreement. Such insurance policies are
required to be in the name of the Special Servicer, on behalf of the Trustee.
If either the Master Servicer or the Special Servicer obtains and maintains
a blanket policy insuring against hazard losses on all of the Mortgage Loans
and/or REO Properties that it is required to service and administer, then, to
the extent such policy is obtained from a Qualified Insurer having a
claims-paying rating meeting the requirements of the Pooling and Servicing
Agreement and provides protection equivalent to the individual policies
otherwise required, the Master Servicer or the Special Servicer, as the case may
be, will be deemed to have satisfied its obligation to cause hazard insurance to
be maintained on the related Mortgaged Properties and/or REO Properties. Such
blanket policy may contain a customary deductible clause, in which case the
Master Servicer or the Special Servicer, as appropriate, will, if there shall
not have been maintained on the related Mortgaged Property or REO Property a
hazard insurance policy complying with the requirements described in the
preceding two paragraphs, and there shall have been one or more losses that
would have been covered by such individual policy, promptly deposit into the
Custodial Account from its own funds the amount of such losses that would have
been so covered by an individual policy but are not covered under the blanket
policy because of such deductible clause. The Master Servicer or the Special
Servicer, as appropriate, are required to prepare and present, on behalf of
itself, the Trustee and Certificateholders, claims under any such blanket policy
in a timely fashion in accordance with the terms of such policy.
EVIDENCE AS TO COMPLIANCE
On or before April 15 of each year beginning April 15, 1999, there is to be
furnished by each of the Master Servicer and the Special Servicer to the
Trustee, the Depositor, the Underwriter and to each other, a statement from a
firm of independent certified public accountants to the effect that (i) it has
obtained a letter of representation regarding certain matters from the
management of the Master Servicer or Special Servicer, as applicable, which
includes an assertion that the Master Servicer or Special Servicer, as
applicable, has complied with certain minimum mortgage loan servicing standards
(to the extent applicable to commercial and multifamily mortgage loans),
identified in the Uniform Single Attestation Program for Mortgage Bankers
established by the Mortgage Bankers Association of America, with respect to the
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servicing of commercial and multifamily mortgage loans during the most recently
completed calendar year and (ii) on the basis of an examination conducted by
such firm in accordance with standards established by the American Institute of
Certified Public Accountants, such representation is fairly stated in all
material respects, subject to such exceptions and other qualifications that may
be appropriate. In rendering its report such firm may rely, as to matters
relating to the direct servicing of commercial and multifamily mortgage loans by
sub-servicers, upon comparable reports of firms of independent certified public
accountants rendered on the basis of examinations conducted in accordance with
the same standards (rendered within one year of such report) with respect to
those sub-servicers.
The Pooling and Servicing Agreement also provides for each of the Master
Servicer and the Special Servicer to deliver to the Trustee, the Depositor, the
Underwriter and each other on or before April 15 of each year, beginning April
15, 1999, a certificate signed by one of its officers generally to the effect
that, except as otherwise indicated in such certificate, the Master Servicer or
the Special Servicer, as the case may be, has fulfilled its material obligations
under the Pooling and Servicing Agreement in all material respects throughout
the preceding calendar year and that the Master Servicer or the Special
Servicer, as the case may be, has received no notice regarding the
qualification, or challenging the status of, any of REMIC I, REMIC II or REMIC
III as a REMIC.
Copies of the foregoing annual accountants' statement and officer's
certificate of each of the Master Servicer and the Special Servicer will be made
available to Certificateholders (at their expense) upon written request to the
Trustee.
CERTAIN MATTERS REGARDING THE DEPOSITOR, THE MASTER SERVICER AND THE SPECIAL
SERVICER
Any entity serving as Master Servicer or Special Servicer under the Pooling
and Servicing Agreement may have other normal business relationships with the
Depositor or the Depositor's affiliates. The Pooling and Servicing Agreement
will permit each of the Master Servicer and the Special Servicer to resign from
its obligations thereunder (in such capacity) upon a determination that such
obligations are no longer permissible under applicable law or are in material
conflict by reason of applicable law with any other activities carried on by it;
provided that unless required by applicable law, no such resignation will become
effective until the Trustee or other successor has assumed the obligations and
duties of the resigning Master Servicer or Special Servicer, as the case may be,
under the Pooling and Servicing Agreement. The Master Servicer and the Special
Servicer will each have the right to resign at any other time provided that (i)
a willing successor thereto has been found, (ii) each of the Rating Agencies
confirms in writing that the successor's appointment will not result in a
qualification, downgrade or withdrawal of any rating or ratings then assigned to
any Class of Certificates, (iii) the resigning party pays all costs and expenses
in connection with such transfer, and (iv) the successor accepts appointment
prior to the effectiveness of such resignation. Neither the Master Servicer nor
the Special Servicer will be permitted to resign except as described above. The
Master Servicer and Special Servicer will each be required to maintain a
fidelity bond and errors and omissions policy or their equivalent that provides
coverage against losses that may be sustained as a result of an officer's or
employee's misappropriation of funds or errors and omissions, subject to certain
limitations as to amount of coverage, deductible amounts, conditions, exclusions
and exceptions permitted by the Pooling and Servicing Agreement.
The Pooling and Servicing Agreement will provide that none of the Depositor,
the Master Servicer or the Special Servicer will be under any liability to the
Trust Fund, the Trustee, the Fiscal Agent or Certificateholders for any action
taken, or not taken, in good faith pursuant to the Pooling and Servicing
Agreement or for errors in judgment; provided, however, that no such entity will
be protected against any liability that would otherwise be imposed by reason of
willfull misfeasance, bad faith or negligence in the performance of obligations
or duties thereunder. The Pooling and Servicing Agreement will further provide
that the Depositor, the Master Servicer, the Special Servicer and any director,
officer, employee or agent of any of them will be entitled to indemnification by
the Trust Fund against any loss, liability or reasonable expense incurred in
connection with any legal action that relates to the Pooling and Servicing
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Agreement or the Certificates, other than any loss, liability or expense: (i)
incidental to its duties and obligations thereunder; (ii) specifically required
to be borne by such party without right of reimbursement pursuant to the terms
thereof; (iii) incurred in connection with any breach of a representation,
warranty or covenant made therein; or (iv) incurred by reason of willfull
misfeasance, bad faith or negligence in the performance of obligations or duties
thereunder. In addition, the Pooling and Servicing Agreement will provide that
none of the Depositor, the Master Servicer or the Special Servicer will be under
any obligation to appear in, prosecute or defend any legal action that is not
related to its respective responsibilities under the Pooling and Servicing
Agreement and, unless it is specifically required to bear the costs of such
legal action, that in its opinion may involve it in any expense or liability.
However, each of the Depositor, the Master Servicer and the Special Servicer
will be permitted, in the exercise of its discretion, to undertake any such
action that it may deem necessary or desirable with respect to the enforcement
and/or protection of the rights and duties of the parties to the Pooling and
Servicing Agreement and the interests of the Certificateholders thereunder. In
such event, the legal expenses and costs of such action, and any liability
resulting therefrom, will be expenses, costs and liabilities of the Trust Fund,
and the Depositor, the Master Servicer or the Special Servicer, as the case may
be, will be entitled to charge the Custodial Account therefor.
Any person into which the Depositor, the Master Servicer or the Special
Servicer may be merged or consolidated, or any person resulting from any merger
or consolidation to which the Depositor, the Master Servicer or the Special
Servicer is a party, or any person succeeding to the business of the Depositor,
the Master Servicer or the Special Servicer, will be the successor of the
Depositor, the Master Servicer or the Special Servicer, as the case may be,
under the Pooling and Servicing Agreement; provided, however, that no successor
or surviving person shall succeed to the rights of the Master Servicer or the
Special Servicer unless, among other things, such succession will not result in
any qualification, downgrade or withdrawal of the rating then assigned by any
Rating Agency to any Class of Certificates (as confirmed in writing).
EVENTS OF DEFAULT
"Events of Default" under the Pooling and Servicing Agreement include each
of the following: (i) any failure by the Master Servicer or the Special Servicer
to deposit, or to remit to the appropriate party for deposit, into the Custodial
Account or REO Account, as applicable, any amount required to be so deposited or
any failure by the Master Servicer or the Special Servicer to make any required
Servicing Advances; (ii) any failure by the Master Servicer to remit to the
Trustee for deposit in the Collection Account any amount required to be so
remitted, which continues unremedied as of a specified time on the next
Distribution Date; (iii) any failure by the Master Servicer or the Special
Servicer duly to observe or perform in any material respect any of its other
covenants or obligations under the Pooling and Servicing Agreement, which
failure continues unremedied for 60 days after written notice of such failure
has been given to the Master Servicer or the Special Servicer, as the case may
be, by any other party to the Pooling and Servicing Agreement or to the Master
Servicer or the Special Servicer, as the case may be (with a copy to each other
party to the Pooling and Servicing Agreement), by Certificateholders entitled to
not less than 25% of the Voting Rights; (iv) any breach by the Master Servicer
or the Special Servicer of any of its representations or warranties contained in
the Pooling and Servicing Agreement that materially and adversely affects the
interest of any Class of Certificateholders and that continues unremedied for 60
days after written notice of such breach has been given to the Master Servicer
or the Special Servicer, as the case may be, by any other party to the Pooling
and Servicing Agreement, or to the Master Servicer or the Special Servicer, as
the case may be (with a copy to each other party to the Pooling and Servicing
Agreement), by Certificateholders entitled to not less than 25% of the Voting
Rights; (v) certain events of insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings in respect of or relating to the
Master Servicer or the Special Servicer and certain actions by or on behalf of
the Master Servicer or the Special Servicer indicating its insolvency or
inability to pay its obligations; and (vi) the Trustee shall have received
notice from either of the Rating Agencies that (A) the Master Servicer's or the
Special Servicer's acting in such capacity shall have resulted in one or more
ratings assigned to the
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respective Classes of Certificates being qualified, downgraded or withdrawn, or
(B) the continuation of the Master Servicer or the Special Servicer in such
capacity would result in a qualification, downgrade or withdrawal of any rating
assigned thereby to any Class of Certificates. When a single entity acts as
Master Servicer and Special Servicer, an Event of Default in one such capacity
shall constitute an Event of Default in the other such capacity.
RIGHTS UPON EVENT OF DEFAULT
So long as an Event of Default described in clauses (i)-(v) of under
"--Events of Default" above with respect to the Master Servicer or the Special
Servicer under the Pooling and Servicing Agreement remains unremedied, the
Trustee will be authorized, and at the direction of Certificateholders entitled
to not less than 25% of the Voting Rights, the Trustee will be required, to
terminate all of the rights and obligations of the defaulting party under the
Pooling and Servicing Agreement and in and to the Trust Fund other than any
rights thereof as a Certificateholder. If an Event of Default described in
clause (vi) under "--Events of Default" above occurs with respect to the Master
Servicer or, if applicable, the Special Servicer, the Trustee is required (by
notice in writing to the defaulting party with a copy to each other party hereto
and the Rating Agencies) to terminate all of the rights and obligations of the
defaulting party under the Pooling and Servicing Agreement and in and to the
Trust Fund other than any rights thereof as a Certificateholder. Upon any such
termination, the Trustee will succeed to all of the responsibilities, duties and
liabilities of the Master Servicer or Special Servicer, as the case may be,
under the Pooling and Servicing Agreement and will be entitled to like
compensation arrangements. If the Trustee is unwilling to so act, it may (or, at
the written request of Certificateholders entitled to a majority of the Voting
Rights, or if the Trustee is unable, or is not approved by each Rating Agency,
to act as a master servicer or special servicer, as the case may be, the Trustee
will be required to) appoint, or petition a court of competent jurisdiction to
appoint, an established and qualified institution to act as successor Master
Servicer or Special Servicer (subject in the case of successor Special Servicer,
to the rights of the holders of Certificates evidencing a majority of Voting
Rights in the Controlling Class to designate a successor Special Servicer), as
the case may be, under the Pooling and Servicing Agreement. Pending such
appointment, the Trustee will be obligated to act in such capacity.
The Certificateholders entitled to at least 66-2/3% of the Voting Rights
allocated to each Class of Certificates affected by any Event of Default may
waive such Event of Default; provided, however, that an Event of Default
described in clauses (i), (ii) and (vi) under "--Events of Default" above may be
waived only by all of the Certificateholders of the affected Classes. Upon any
such waiver of an Event of Default, such Event of Default will cease to exist
and will be deemed to have been remedied for every purpose under the Pooling and
Servicing Agreement.
No Certificateholder will have the right under the Pooling and Servicing
Agreement to institute any proceeding with respect thereto unless such holder
previously has given to the Trustee written notice of default and unless (except
in the case of a default by the Trustee) Certificateholders entitled to not less
than 25% of the Voting Rights shall have made written request upon the Trustee
to institute such proceeding in its own name as Trustee thereunder and shall
have offered to the Trustee reasonable indemnity, and the Trustee for 60 days
shall have neglected or refused to institute any such proceeding. The Trustee,
however, will be under no obligation to exercise any of the trusts or powers
vested in it by the Pooling and Servicing Agreement or to make any investigation
of matters arising thereunder or to institute, conduct or defend any litigation
thereunder or in relation thereto at the request, order or direction of any of
the Certificateholders, unless in the Trustee's opinion, such Certificateholders
have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby.
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DESCRIPTION OF THE CERTIFICATES
GENERAL
The LB Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 1998-C1 (the "Certificates") will be issued pursuant to a
Pooling and Servicing Agreement, to be dated as of February 1, 1998, among the
Depositor, the Master Servicer, the Special Servicer, the Trustee and the Fiscal
Agent (the "Pooling and Servicing Agreement"). The Certificates will represent
in the aggregate the entire beneficial ownership interest in a trust fund (the
"Trust Fund") consisting primarily of: (i) the Mortgage Loans and all payments
and other collections in respect of the Mortgage Loans received or applicable to
periods after the Cut-off Date (exclusive of payments of principal and interest
due, and principal prepayments received, on or before the Cut-off Date); (ii)
any REO Property acquired on behalf of the Trust Fund; (iii) such funds or
assets as from time to time are deposited in the Collection Account (See
"--Collection Account" below), the Custodial Account or, if established, the REO
Account; and (iv) certain rights of the Depositor under the Mortgage Loan
Purchase Agreement relating to Mortgage Loan document delivery requirements and
the representations and warranties of the Mortgage Loan Seller regarding the
Mortgage Loans.
The Certificates will consist of 18 classes (each, a "Class") to be
designated as: (i) the Class A-1 Certificates, the Class A-2 Certificates and
the Class A-3 Certificates (collectively, the "Class A Certificates"); (ii) the
Class B Certificates, the Class C Certificates, the Class D Certificates, the
Class E Certificates, the Class F Certificates, the Class G Certificates, the
Class H Certificates, the Class J Certificates, the Class K Certificates, Class
L Certificates and the Class M Certificates (collectively with the Class A
Certificates, the "Sequential Pay Certificates"); (iii) the Class IO
Certificates (collectively with the Sequential Pay Certificates, the "Regular
Interest Certificates"); and (iv) the Class R-I Certificates, the Class R-II
Certificates and the Class R-III Certificates (collectively, the "Residual
Interest Certificates").
Only the Class A-1, Class A-2, Class A-3, Class IO, Class B, Class C, Class
D and Class E Certificates (collectively, the "Offered Certificates") are
offered hereby. The Class F, Class G, Class H, Class J, Class K, Class L, Class
M and the Residual Interest Certificates (collectively, the "Private
Certificates") have not been registered under the Securities Act, and are not
offered hereby. Accordingly, information herein regarding the terms of the
Private Certificates is provided solely because of its potential relevance to a
prospective purchaser of an Offered Certificate.
REGISTRATION AND DENOMINATIONS
The Offered Certificates will be issued in book-entry format through the
facilities of The Depository Trust Company ("DTC"). Each Class of Offered
Certificates will be issued in denominations of not less than $10,000 actual
principal amount (or $100,000 notional amount with respect to the Class IO
Certificates), and in integral multiples of $1 in excess thereof.
Each Class of Offered Certificates will initially be represented by one or
more global Certificates registered in the name of the nominee of DTC. The
Depositor has been informed by DTC that DTC's nominee will be Cede & Co. No
beneficial owner of an Offered Certificate (each, a "Certificate Owner") will be
entitled to receive a fully registered, certificated form of such Certificate (a
"Definitive Offered Certificate"), except under the limited circumstances
described under "Description of the Securities-- Book-Entry Registration" in the
Prospectus. Unless and until Definitive Offered Certificates are issued in
respect of a Class of Offered Certificates, beneficial ownership interests in
such Class will be recorded and transferred on the book-entry records of DTC and
its participating organizations (the "Participants"), and all references herein
to actions by holders of a Class of Offered Certificates will refer to actions
taken by DTC upon instructions received from the related Certificate Owners
through the Participants in accordance with DTC procedures, and all references
herein to payments, notices, reports and statements to the holders of a Class of
Offered Certificates will refer to payments, notices, reports and statements to
DTC or Cede & Co., as the registered holder thereof, for distribution to the
related Certificate Owners through the
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Participants in accordance with DTC procedures. The form of such payments and
transfers may result in certain delays in receipt of payments by an investor and
may restrict an investor's ability to pledge its securities. None of the
Depositor, the Master Servicer, the Special Servicer, the Trustee or the Fiscal
Agent or any of their respective affiliates will have any liability for any
actions taken by DTC or its nominee, including, without limitation, actions for
any aspect of the records relating to or payments made on account of beneficial
ownership interests in Offered Certificates held by Cede & Co., as nominee for
DTC, or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. See "Risk Factors--The Certificates--Book-Entry
Registration" herein and "Description of the Securities-- Book-Entry
Registration" in the Prospectus.
CERTIFICATE BALANCES AND NOTIONAL AMOUNTS
Upon initial issuance, and in each case subject to a permitted variance of
plus or minus 5%, the respective Classes of Sequential Pay Certificates will
have the Certificate Balances set forth in the following table:
<TABLE>
<CAPTION>
PERCENT OF
INITIAL INITIAL
CLASS OF SEQUENTIAL CERTIFICATE POOL
PAY CERTIFICATES BALANCE BALANCE
- - ---------------------------------------------------------------------------------- ----------------- -----------
<S> <C> <C>
Class A-1 Certificates............................................................ $ 267,810,000 15.50%
Class A-2 Certificates............................................................ $ 308,000,000 17.83%
Class A-3 Certificates............................................................ $ 642,291,000 37.17%
Class B Certificates.............................................................. $ 86,390,000 5.00%
Class C Certificates.............................................................. $ 86,390,000 5.00%
Class D Certificates.............................................................. $ 90,710,000 5.25%
Class E Certificates.............................................................. $ 34,556,000 2.00%
Class F Certificates.............................................................. $ 51,834,000 3.00%
Class G Certificates.............................................................. $ 34,556,000 2.00%
Class H Certificates.............................................................. $ 17,278,000 1.00%
Class J Certificates.............................................................. $ 43,195,000 2.50%
Class K Certificates.............................................................. $ 17,278,000 1.00%
Class L Certificates.............................................................. $ 17,278,000 1.00%
Class M Certificates.............................................................. $ 30,251,629 1.75%
</TABLE>
The "Certificate Balance" of any Class of Sequential Pay Certificates
outstanding at any time represents the maximum amount that the holders thereof
are entitled to receive as distributions allocable to principal from the cash
flow on the Mortgage Loans and the other assets in the Trust Fund. The
Certificate Balance of each Class of Sequential Pay Certificates will be
permanently reduced on each Distribution Date by any distributions of principal
actually made on such Class of Certificates on such Distribution Date, and
further permanently reduced by any Realized Losses and Additional Trust Fund
Expenses actually allocated to such Class of Certificates on such Distribution
Date.
The Class IO Certificates will not have a Certificate Balance, but will
represent the right to receive distributions of interest in an amount equal to
the aggregate interest accrued on the notional amount of each of the Class IO
Components, as described herein. The Class IO Certificates will have fourteen
components (each a "Class IO Component"), each corresponding to a different
Class of Sequential Pay Certificates. Each such Class IO Component will have the
same letter and/or numerical designation as a Class of Sequential Pay
Certificates. The notional amount of each such Class IO Component will equal the
Certificate Balance of the corresponding Class of Sequential Pay Certificates
outstanding from time to time. On the Closing Date, the aggregate of the
notional amounts of all the Class IO Components will equal the Initial Pool
Balance. References herein to the "notional amount" of the Class IO Certificates
shall mean the aggregate of the notional amounts of the Class IO Components.
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The Residual Interest Certificates will not have Certificate Balances or
notional amounts, but will represent the right to receive on each Distribution
Date any portion of the Available Distribution Amount (as defined below) for
such date that remains after the required distributions have been made on all
the Regular Interest Certificates.
PASS-THROUGH RATES
The Pass-Through Rate applicable to each Class of Sequential Pay
Certificates for each Distribution Date is fixed at the respective rate per
annum set forth with respect to such Class in the table at the beginning of the
Summary. The Pass-Through Rate applicable to each Class IO Component for any
Distribution Date will be equal to the Weighted Average Net Mortgage Rate for
such Distribution Date minus the fixed Pass-Through Rate applicable to the
corresponding Class of Sequential Pay Certificates. The Residual Interest
Certificates will not bear interest.
The "Weighted Average Net Mortgage Rate" for each Distribution Date is the
weighted average of the Net Mortgage Rates for the Mortgage Loans as of the
commencement of the related Collection Period, weighted on the basis of their
respective Stated Principal Balances outstanding immediately prior to such
Distribution Date. The "Net Mortgage Rate" for each Mortgage Loan will generally
equal (x) the Mortgage Rate in effect for such Mortgage Loan as of the Cut-off
Date, minus (y) the sum of the applicable Master Servicing Fee Rate and the
Trustee Fee Rate (such sum, as to any Mortgage Loan, the "Administrative Cost
Rate"); provided that if any Mortgage Loan does not accrue interest on the basis
of a 360-day year consisting of twelve 30-day months (which is the basis on
which interest accrues in respect of the Regular Interest Certificates), then,
solely for purposes of calculating the Weighted Average Net Mortgage Rate, the
Mortgage Rate referred to in clause (x) will, to the extent appropriate, be
adjusted from accrual period to accrual period to compensate for such
difference. The "Stated Principal Balance" of each Mortgage Loan outstanding at
any time will generally be an amount equal to the Cut-off Date Balance thereof,
permanently reduced on each Distribution Date (to not less than zero) by (i) any
payments or other collections (or advances in lieu thereof) of principal of such
Mortgage Loan that are due or received, as the case may be, during the related
Collection Period and are distributed on the Certificates on such Distribution
Date and (ii) the principal portion of any Realized Loss incurred in respect of
such Mortgage Loan during the related Collection Period. Notwithstanding the
foregoing, if any Mortgage Loan is paid in full, liquidated or otherwise removed
from the Trust Fund, commencing as of the first Distribution Date following the
Collection Period during which such event occurred, the Stated Principal Balance
of such Mortgage Loan will be zero.
The "Collection Period" for each Distribution Date will be the period that
begins immediately following the Determination Date in the month preceding the
month in which such Distribution Date occurs (or, in the case of the initial
Distribution Date, immediately following the Cut-off Date) and ends on and
includes the Determination Date in the same month as such Distribution Date. The
"Determination Date" will be the 10th day of each month (or, if not a business
day, the next preceding business day).
COLLECTION ACCOUNT
GENERAL. The Trustee will be required to establish and maintain one or more
accounts (collectively, the "Collection Account") for the distribution of
payments to the Certificateholders. Each such account is to be an Eligible
Account. The funds held in the Collection Account may be invested at the
direction of the Master Servicer (or as otherwise provided in the Pooling and
Servicing Agreement) in Permitted Investments.
DEPOSITS. On or before the business day prior to each Distribution Date,
the Master Servicer will be required to deliver to the Trustee, for deposit in
the Collection Account, in immediately available funds, the amounts described in
clause (i) under "Servicing of the Mortgage Loans--Custodial Account--
Withdrawals". In addition, the Master Servicer will be required, as and when
provided in the Pooling and
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Servicing Agreement, to deliver to the Trustee for deposit in the Collection
Account, any P&I Advances and/or Compensating Interest Payment with respect to
each Distribution Date.
WITHDRAWALS. The Trustee may, from time to time, make withdrawals from the
Collection Account for any of the following purposes, among others: (i) to make
distributions to the Certificateholders on each Distribution Date; (ii) to pay
itself the Trustee Fee each month; (iii) to reimburse and/or indemnify itself
and certain related persons as described under "--The Trustee" herein and to
make certain comparable reimbursements and/or indemnifications with respect to
the Fiscal Agent; (iv) to pay the Master Servicer, as additional servicing
compensation, interest and other investment income earned in respect of amounts
held in the Collection Account; (v) to pay for the cost of certain opinions of
counsel required under the Pooling and Servicing Agreement; (vi) to pay any
federal, state and local taxes imposed on the Trust Fund, its assets and/or
transactions, together with all incidental costs and expenses, to the extent
required to be borne by the Trust Fund, all as described under "Certain Federal
Income Tax Consequences--Possible Taxes on Income from Foreclosure Property and
Other Taxes" and "Servicing of the Mortgage Loans-- REO Properties" herein and
as provided in the Pooling and Servicing Agreement; and (vii) to clear and
terminate the Collection Account upon termination of the Trust Fund.
DISTRIBUTIONS
GENERAL. Distributions on the Certificates will be made by the Trustee, to
the extent of available funds, on the 18th day of each month or, if any such
18th day is not a business day, then on the next succeeding business day,
commencing in March 1998 (each, a "Distribution Date"). Except as described
below, all such distributions will be made on each Distribution Date to the
persons in whose names the Certificates are registered (the
"Certificateholders") at the close of business on the last business day of the
month preceding the month in which such Distribution Date occurs (or, in the
case of the initial Distribution Date, at the close of business on the Closing
Date) and shall be made by wire transfer of immediately available funds, if such
Certificateholder shall have provided wiring instructions no less than five
business days prior to such record date, or otherwise by check mailed to the
address of such Certificateholder as it appears in the Certificate register. The
final distribution on any Certificate (determined without regard to any possible
future reimbursement of any Realized Loss or Additional Trust Fund Expense
previously allocated to such Certificate) will be made only upon presentation
and surrender of such Certificate at the location that will be specified in a
notice of the pendency of such final distribution. All distributions made with
respect to a Class of Certificates will be allocated PRO RATA among the
outstanding Certificates of such Class based on their respective percentage
interests in such Class.
THE AVAILABLE DISTRIBUTION AMOUNT. The aggregate amount available for
distributions of interest and principal to Certificateholders on each
Distribution Date (the "Available Distribution Amount") will, in general, equal
the sum of the following amounts:
(a) the total amount of all cash received on or in respect of the
Mortgage Loans and any REO Properties by the Master Servicer as of the close
of business on the related Determination Date and not previously distributed
with respect to the Certificates, EXCLUSIVE of any portion thereof that
represents one or more of the following:
(i) any Monthly Payments collected but due on a Due Date after the
related Collection Period,
(ii) any Prepayment Premiums and Yield Maintenance Charges,
(iii) Additional Interest, and
(iv) all amounts that are payable or reimbursable to any person
other than the Certificateholders as described under
"--Collection Account--Withdrawals" above and "Servicing of the
Mortgage Loans--Custodial Account--Withdrawals" and "--REO
Properties" herein;
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(b) all P&I Advances made by the Master Servicer with respect to such
Distribution Date (see "--P&I Advances" below);
(c) any Compensating Interest Payment made by the Master Servicer to
cover the aggregate of any Prepayment Interest Shortfalls experienced during
the related Collection Period (see "Servicing of the Mortgage
Loans--Servicing and Other Compensation and Payment of Expenses" herein).
Any Prepayment Premiums and Yield Maintenance Charges actually collected
will be distributed separately from the Available Distribution Amount. See
"--Distributions--Allocation of Prepayment Premiums and Yield Maintenance
Charges" herein.
APPLICATION OF THE AVAILABLE DISTRIBUTION AMOUNT. On each Distribution
Date, the Trustee will (except as otherwise described under "--Termination"
below), after deduction of the Trustee Fee for such Distribution Date, apply
amounts on deposit in the Collection Account, to the extent of the Available
Distribution Amount, for the following purposes and in the following order of
priority:
(1) to distributions of interest to the holders of the Class A-1, Class
A-2, Class A-3 and Class IO Certificates (in each case, so long as any such
Class remains outstanding), pro rata based on entitlement, in an amount
equal to all Distributable Certificate Interest in respect of each such
Class of Certificates for such Distribution Date and, to the extent not
previously paid, for all prior Distribution Dates;
(2) to distributions of principal to the holders of the Class A-1
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the Principal Distribution
Amount (as defined herein) for such Distribution Date;
(3) after the Class A-1 Certificates have been retired, to distributions
of principal to the holders of the Class A-2 Certificates in an amount (not
to exceed the then outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1 Certificates;
(4) after the Class A-1 and Class A-2 Certificates have been retired, to
distributions of principal to the holders of the Class A-3 Certificates in
an amount (not to exceed the then outstanding Certificate Balance of such
Class of Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1 and/or Class A-2 Certificates;
(5) to distributions to the holders of the Class A-1, Class A-2 and
Class A-3 Certificates, pro rata in accordance with the respective amounts
of Realized Losses and Additional Trust Fund Expenses, if any, previously
allocated to such Classes of Certificates and for which no reimbursement has
previously been received, to reimburse such holders for all such Realized
Losses and Additional Trust Fund Expenses;
(6) to distributions of interest to the holders of the Class B
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(7) after the Class A-1, Class A-2 and Class A-3 Certificates have been
retired, to distributions of principal to the holders of the Class B
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2 and/or Class A-3 Certificates on such
Distribution Date;
(8) to distributions to the holders of the Class B Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
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(9) to distributions of interest to the holders of the Class C
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(10) after the Class A-1, Class A-2, Class A-3 and Class B Certificates
have been retired, to distributions of principal to the holders of the Class
C Certificates in an amount (not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class A-3 and/or Class B Certificates
on such Distribution Date;
(11) to distributions to the holders of the Class C Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(12) to distributions of interest to the holders of the Class D
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(13) after the Class A-1, Class A-2, Class A-3, Class B and Class C
Certificates have been retired, to distributions of principal to the holders
of the Class D Certificates in an amount (not to exceed the then outstanding
Certificate Balance of such Class of Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2, Class A-3, Class B
and/or Class C Certificates on such Distribution Date;
(14) to distributions to the holders of the Class D Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(15) to distributions of interest to the holders of the Class E
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(16) after the Class A-1, Class A-2, Class A-3, Class B, Class C and
Class D Certificates have been retired, to distributions of principal to the
holders of the Class E Certificates in an amount (not to exceed the then
outstanding Certificate Balance of such Class of Certificates) equal to the
Principal Distribution Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class A-2, Class A-3, Class
B, Class C and/or Class D Certificates;
(17) to distributions to the holders of the Class E Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(18) to distributions of interest to the holders of the Class F
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(19) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D and Class E Certificates have been retired, to distributions of principal
to the holders of the Class F Certificates in an amount (not to exceed the
then outstanding Certificate Balance of such Class of Certificates) equal to
the Principal Distribution Amount for such Distribution Date, less any
portion thereof distributed in respect of the Class A-1, Class A-2, Class
A-3, Class B, Class C, Class D and/or Class E Certificates;
(20) to distributions to the holders of the Class F Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
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(21) to distributions of interest to the holders of the Class G
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(22) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E and Class F Certificates have been retired, to distributions of
principal to the holders of the Class G Certificates in an amount (not to
exceed the then outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2, Class A-3, Class B, Class C, Class D, Class E and/or
Class F Certificates;
(23) to distributions to the holders of the Class G Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(24) to distributions of interest to the holders of the Class H
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(25) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E, Class F and Class G Certificates have been retired, to
distributions of principal to the holders of the Class H Certificates in an
amount (not to exceed the then outstanding Certificate Balance of such Class
of Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2, Class A-3, Class B, Class C, Class D, Class E, Class F
and/or Class G Certificates;
(26) to distributions to the holders of the Class H Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(27) to distributions of interest to the holders of the Class J
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(28) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E, Class F, Class G and Class H Certificates have been retired, to
distributions of principal to the holders of the Class J Certificates in an
amount (not to exceed the then outstanding Certificate Balance of such Class
of Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2, Class A-3, Class B, Class C, Class D, Class E, Class
F, Class G and/or Class H Certificates;
(29) to distributions to the holders of the Class J Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(30) to distributions of interest to the holders of the Class K
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(31) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E, Class F, Class G, Class H and Class J Certificates have been
retired, to distributions of principal to the holders of the Class K
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class A-3, Class B, Class C, Class D,
Class E, Class F, Class G, Class H and/or Class J Certificates;
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(32) to distributions to the holders of the Class K Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received;
(33) to distributions of interest to the holders of the Class L
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(34) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E, Class F, Class G, Class H, Class J and Class K Certificates have
been retired, to distributions of principal to the holders of the Class L
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of such Class of Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class A-3, Class B, Class C, Class D,
Class E, Class F, Class G, Class H, Class J and/or Class K Certificates;
(35) to distributions to the holders of the Class L Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received;
(36) to distributions of interest to the holders of the Class M
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(37) after the Class A-1, Class A-2, Class A-3, Class B, Class C, Class
D, Class E, Class F, Class G, Class H, Class J, Class K and Class L
Certificates have been retired, to distributions of principal to the holders
of the Class M Certificates in an amount (not to exceed the then outstanding
Certificate Balance of such Class of Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2, Class A-3, Class B,
Class C, Class D, Class E, Class F, Class G, Class H, Class J, Class K
and/or Class L Certificates;
(38) to distributions to the holders of the Class M Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received; and
(39) to make distributions to the holders of the Residual Interest
Certificates, up to an amount equal to the excess, if any, of (a) the
Available Distribution Amount remaining for such Distribution Date, over (b)
the aggregate distributions made in respect of the Regular Interest
Certificates on such Distribution Date as described in clauses (1) through
(38) above;
provided that, on each Distribution Date, if any, after the aggregate of the
Certificate Balances of the Subordinate Certificates has been reduced to zero as
a result of the allocations of Realized Losses and Additional Trust Fund
Expenses, and prior to retirement of the Class A Certificates, the payments of
principal to be made as contemplated by clauses (2), (3) and (4) above with
respect to the Class A Certificates will be so made to the holders of the
respective Classes of such Certificates, up to an amount equal to, and pro rata
as among such Classes in accordance with, the respective then outstanding
Certificate Balances of such Classes of Certificates, and without regard to the
Principal Distribution Amount for such date.
DISTRIBUTABLE CERTIFICATE INTEREST. The "Distributable Certificate
Interest" in respect of each Class of Regular Interest Certificates for each
Distribution Date will equal the Accrued Certificate Interest in respect of such
Class of Certificates for such Distribution Date, net of such Class's allocable
share (calculated as described below) of the aggregate of any Prepayment
Interest Shortfalls resulting from voluntary principal prepayments made on the
Mortgage Loans during the related Collection Period that are not covered by the
Master Servicer's Compensating Interest Payment for such Distribution Date (the
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aggregate of such Prepayment Interest Shortfalls that are not so covered, as to
any Distribution Date, the "Net Aggregate Prepayment Interest Shortfall").
The "Accrued Certificate Interest" in respect of each Class of Sequential
Pay Certificates for each Distribution Date will equal one month's interest at
the applicable Pass-Through Rate accrued during the related Interest Accrual
Period on the Certificate Balance of such Class of Certificates outstanding
immediately prior to such Distribution Date. The "Accrued Certificate Interest"
in respect of the Class IO Certificates for any Distribution Date will equal the
aggregate of one month's interest at the applicable Pass-Through Rate accrued
during the related Interest Accrual Period on the notional amount of each Class
IO Component outstanding immediately prior to such Distribution Date. Accrued
Certificate Interest will be calculated on a basis of a 360-day year consisting
of twelve 30-day months.
The "Interest Accrual Period" in respect of each Class of Regular Interest
Certificates for each Distribution Date is the calendar month preceding the
month in which such Distribution Date occurs.
The portion of the Net Aggregate Prepayment Interest Shortfall for any
Distribution Date that is allocable to each Class of Regular Interest
Certificates will equal the product of (a) such Net Aggregate Prepayment
Interest Shortfall, multiplied by (b) a fraction, the numerator of which is
equal to the Accrued Certificate Interest in respect of such Class of
Certificates for such Distribution Date, and the denominator of which is equal
to the aggregate Accrued Certificate Interest in respect of all Classes of
Regular Interest Certificates for such Distribution Date.
PRINCIPAL DISTRIBUTION AMOUNT. The "Principal Distribution Amount" for each
Distribution Date will generally equal the aggregate of the following (without
duplication):
(a) the aggregate of the principal portions of all Scheduled Payments
(other than Balloon Payments) due, and the principal portions of any Assumed
Scheduled Payments deemed due, on or in respect of the Mortgage Loans for
their respective Due Dates occurring during the related Collection Period;
(b) the aggregate of all principal prepayments received on the Mortgage
Loans during the related Collection Period;
(c) with respect to any Mortgage Loan as to which the related stated
maturity date occurred during or prior to the related Collection Period, any
payment of principal (exclusive of any amounts described in clause (b) above
or clause (d) below) made by or on behalf of the related borrower during the
related Collection Period (including any Balloon Payment), net of any
portion of such payment that represents a recovery of the principal portion
of any Scheduled Payment (other than a Balloon Payment) due, or the
principal portion of any Assumed Scheduled Payment deemed due, in respect of
such Mortgage Loan on a Due Date during or prior to the related Collection
Period and not previously recovered;
(d) the aggregate of all Liquidation Proceeds, Condemnation Proceeds and
Insurance Proceeds that were received on or in respect of any of the
Mortgage Loans during the related Collection Period and that were identified
and applied by the Master Servicer as recoveries of principal, in each case
net of any portion of such amounts that represents a recovery of the
principal portion of any Scheduled Payment (other than a Balloon Payment)
due, or of the principal portion of any Assumed Scheduled Payment deemed
due, in respect of the related Mortgage Loan on a Due Date during or prior
to the related Collection Period and not previously recovered; and
(e) if such Distribution Date is subsequent to the initial Distribution
Date, the excess, if any, of the Principal Distribution Amount for the
immediately preceding Distribution Date, over the aggregate distributions of
principal made on the Certificates on such immediately preceding
Distribution Date.
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The "Scheduled Payment" due on any Mortgage Loan on any related Due Date is
the Monthly Payment (excluding any amounts representing Additional Interest with
respect to an ARD Loan) that is or would have been, as the case may be, due
thereon on such date, without regard to any waiver, modification or amendment of
such Mortgage Loan granted or agreed to by the Special Servicer or otherwise
resulting from a bankruptcy or similar proceeding involving the related
borrower, and assuming that the full amount of each prior Scheduled Payment has
been made in a timely manner. The "Assumed Scheduled Payment" is an amount
deemed due in respect of any Mortgage Loan that constitutes either (i) a Balloon
Loan that is delinquent in respect of its Balloon Payment beyond the first
Determination Date that follows its stated maturity date or (ii) a Mortgage Loan
as to which the related Mortgaged Property has become an REO Property (an "REO
Mortgage Loan"). The Assumed Scheduled Payment deemed due on any such Balloon
Loan on its stated maturity date and on each successive related Due Date that it
remains outstanding and part of the Trust Fund will equal the Scheduled Payment
that would have been due thereon on such date if the related Balloon Payment had
not come due but rather such Mortgage Loan had continued to amortize in
accordance with its amortization schedule, if any, in effect as of the Closing
Date. The Assumed Scheduled Payment deemed due on any REO Mortgage Loan on each
Due Date that the related REO Property remains part of the Trust Fund will equal
the Scheduled Payment that would have been due in respect of such Mortgage Loan
on such Due Date had it remained outstanding (or, if such Mortgage Loan was a
Balloon Loan and such Due Date coincides with or follows what had been its
stated maturity date, the Assumed Scheduled Payment that would have been deemed
due in respect of such Mortgage Loan on such Due Date had it remained
outstanding).
Distributions of the Principal Distribution Amount will constitute the only
distributions of principal on the Certificates. Reimbursements of previously
allocated Realized Losses and Additional Trust Fund Expenses will not constitute
distributions of principal for any purpose and will not result in an additional
reduction in the Certificate Balance of the Class of Certificates in respect of
which any such reimbursement is made.
TREATMENT OF REO PROPERTIES. Notwithstanding that any Mortgaged Property
may be acquired as part of the Trust Fund through foreclosure, deed in lieu of
foreclosure or otherwise, the related Mortgage Loan will be treated, for
purposes of determining (i) distributions on the Certificates, (ii) allocations
of Realized Losses and Additional Trust Fund Expenses to the Certificates, and
(iii) the amount of Trustee Fees and Servicing Fees payable under the Pooling
and Servicing Agreement, as having remained outstanding until such REO Property
is liquidated. In connection therewith, operating revenues and other proceeds
derived from such REO Property (net of related operating costs) will be
"applied" by the Master Servicer as principal, interest and other amounts that
would have been "due" on such Mortgage Loan, and the Master Servicer will be
required to make P&I Advances in respect of such Mortgage Loan, in all cases as
if such Mortgage Loan had remained outstanding. References to "Mortgage Loan" or
"Mortgage Loans" in the definitions of "Principal Distribution Amount" and
"Weighted Average Net Mortgage Rate" are intended to include any REO Mortgage
Loan.
ALLOCATION OF PREPAYMENT PREMIUMS AND YIELD MAINTENANCE CHARGES. In the
event a borrower is required to pay any Yield Maintenance Charge or any
Prepayment Premium, the amount of such payments actually collected will be
distributed in respect of the Offered Certificates as and to the extent set
forth below. "Yield Maintenance Charges" are fees paid or payable, as the
context requires, as a result of a prepayment of principal on a Mortgage Loan,
which fees have been calculated (based on Scheduled Payments on such Mortgage
Loan) to compensate the holder of the Mortgage for reinvestment losses based on
the value of a discount rate at or near the time of prepayment. Any other fees
paid or payable, as the context requires, as a result of a prepayment of
principal on a Mortgage Loan, which are calculated based upon a specified
percentage (which may decline over time) of the amount prepaid are considered
"Prepayment Premiums."
On each Distribution Date, any Prepayment Premium or Yield Maintenance
Charge collected on a Mortgage Loan during the related Collection Period will be
distributed to Certificateholders as follows.
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The holders of each Class of Sequential Pay Certificates (other than an Excluded
Class thereof) then entitled to distributions of principal on such Distribution
Date will be entitled to an amount equal to (a) the amount of such Prepayment
Premium or Yield Maintenance Charge (net of any portion thereof payable as a
Workout Fee or Liquidation Fee), multiplied by (b) a fraction (which in no event
may be greater than one), the numerator of which is equal to the excess, if any,
of the Pass-Through Rate of such Class of Sequential Pay Certificates, over the
relevant Discount Rate (as defined below), and the denominator of which is equal
to the excess, if any, of the Mortgage Rate of the prepaid Mortgage Loan, over
the relevant Discount Rate, and (c) a fraction, the numerator of which is equal
to the amount of principal distributable on such Class of Sequential Pay
Certificates on such Distribution Date, and the denominator of which is the
Principal Distribution Amount for such Distribution Date. If there is more than
one Class of Sequential Pay Certificates (other than an Excluded Class thereof)
entitled to distributions of principal on any particular Distribution Date on
which a Prepayment Premium or Yield Maintenance Charge is distributable, the
aggregate amount of such Prepayment Premium or Yield Maintenance Charge (net of
any portion thereof payable as a Workout Fee or Liquidation Fee) will be
allocated among all such Classes up to, and on a PRO RATA basis in accordance
with, their respective entitlements thereto calculated as described in the
foregoing sentence. The portion, if any, of the Prepayment Premium or Yield
Maintenance Charge (net of any portion thereof payable as a Workout Fee or
Liquidation Fee) remaining after any such payments to the holders of the
Sequential Pay Certificates will be distributed to the holders of the Class IO
Certificates. For purposes of the foregoing, an "Excluded Class" of Sequential
Pay Certificates is any Class thereof other than the Class A-1, Class A-2, Class
A-3, Class B, Class C, Class D, Class E, Class F and Class G Certificates.
The "Discount Rate" applicable to any Class of Offered Certificates will be
equal to the yield (when compounded monthly) on the U.S. Treasury issue (primary
issue) with a maturity date closest to the maturity date for the prepaid
Mortgage Loan. In the event that there are two such U.S. Treasury issues (a)
with the same coupon, the issue with the lower yield will be utilized, and (b)
with maturity dates equally close to the maturity date for the prepaid Mortgage
Loan, the issue with the earliest maturity date will be utilized.
For an example of the foregoing allocation of Prepayment Premiums and Yield
Maintenance Charges, see Annex B hereto. The Depositor makes no representation
as to the enforceability of the provision of any Mortgage Note requiring the
payment of a Prepayment Premium or Yield Maintenance Charge, or of the
collectability of any Prepayment Premium or Yield Maintenance Charge. See
"Description of the Mortgage Pool--Certain Terms and Conditions of the Mortgage
Loans--Prepayment Provisions" herein.
DISTRIBUTIONS OF ADDITIONAL INTEREST. On each Distribution Date, any
Additional Interest collected on an ARD Loan during the related Collection
Period (net of any portion of such Additional Interest payable as a Workout Fee
or Liquidation Fee) will be distributed among all the Classes of Sequential Pay
Certificates on a PRO RATA basis in accordance with the respective initial
Certificate Balances of such Classes of Certificates. There can be no assurance
as to what extent Additional Interest will be collected on the ARD Loans, if at
all.
SUBORDINATION; ALLOCATION OF LOSSES AND CERTAIN EXPENSES
The rights of holders of the Class B, Class C, Class D and Class E
Certificates and each Class of the Private Certificates (collectively, the
"Subordinate Certificates") to receive distributions of amounts collected or
advanced on the Mortgage Loans will be subordinated, to the extent described
herein, to the rights of holders of the Class A and Class IO Certificates
(collectively, the "Senior Certificates") and each other such Class of
Subordinate Certificates, if any, with an earlier alphabetical Class
designation. This subordination is intended to enhance the likelihood of timely
receipt by the holders of the Senior Certificates of the full amount of
Distributable Certificate Interest payable in respect of such Classes of
Certificates on each Distribution Date, and the ultimate receipt by the holders
of each Class of the Class A Certificates of principal in an amount equal to the
entire related Certificate Balance. Similarly, but to
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decreasing degrees, this subordination is also intended to enhance the
likelihood of timely receipt by the holders of the Class B, the Class C, the
Class D and the Class E Certificates of the full amount of Distributable
Certificate Interest payable in respect of such Classes of Certificates on each
Distribution Date, and the ultimate receipt by the holders of each such Class of
Certificates of principal equal to the entire related Certificate Balance. The
protection afforded to the holders of the Class E Certificates by means of the
subordination of the Private Certificates, to the holders of the Class D
Certificates by means of the subordination of the Class E and the Private
Certificates, to the holders of the Class C Certificates by means of the
subordination of the Class D, the Class E and the Private Certificates, to the
holders of the Class B Certificates by means of the subordination of the Class
C, the Class D, the Class E and the Private Certificates, and to the holders of
the Senior Certificates by means of the subordination of the Subordinate
Certificates, will be accomplished by (i) the application of the Available
Distribution Amount on each Distribution Date in accordance with the order of
priority described under "--Distributions--Application of the Available
Distribution Amount" above and (ii) by the allocation of Realized Losses and
Additional Trust Fund Expenses as described below. Until the first Distribution
Date after the aggregate of the Certificate Balances of the Subordinate
Certificates has been reduced to zero, the Class A-3 Certificates will receive
principal payments only after the Certificate Balances of the Class A-2 and
Class A-1 Certificates have been reduced to zero and the Class A-2 Certificates
will receive principal payments only after the Certificate Balance of the Class
A-1 Certificates has been reduced to zero. However, the Class A-1, Class A-2,
Class A-3 and Class IO Certificates will bear shortfalls in collections and
losses incurred in respect of the Mortgage Loans concurrently. No other form of
credit support will be available for the benefit of the holders of the Offered
Certificates.
On each Distribution Date, following all distributions on the Certificates
to be made on such date, the aggregate of all Realized Losses and Additional
Trust Fund Expenses that have been incurred since the Cut-off Date through the
end of the related Collection Period and that have not previously been allocated
as described below will be allocated among the respective Classes of Sequential
Pay Certificates (in each case in reduction of their respective Certificate
Balances) as follows, but in the aggregate only to the extent that the aggregate
Certificate Balance of all Classes of Sequential Pay Certificates remaining
outstanding after giving effect to the distributions on such Distribution Date
exceeds the aggregate Stated Principal Balance of the Mortgage Pool that will be
outstanding immediately following such Distribution Date: first, to the Class M
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; second, to the Class L Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
third, to the Class K Certificates, until the remaining Certificate Balance of
such Class of Certificates is reduced to zero; fourth, to the Class J
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; fifth, to the Class H Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
sixth, to the Class G Certificates, until the remaining Certificate Balance of
such Class of Certificates is reduced to zero; seventh, to the Class F
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; eighth, to the Class E Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
ninth, to the Class D Certificates, until the remaining Certificate Balance of
such Class of Certificates is reduced to zero; tenth, to the Class C
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; eleventh, to the Class B Certificates, until
the remaining Certificate Balance of such Class of Certificates is reduced to
zero; and, last, to the Class A-1 Certificates, the Class A-2 Certificates and
the Class A-3 Certificates, pro rata, in proportion to their respective
outstanding Certificate Balances, until the remaining Certificate Balances of
such Classes of Certificates are reduced to zero.
Any Realized Loss or Additional Trust Fund Expenses allocated in reduction
of the Certificate Balance of any Class of Sequential Pay Certificates will
result in a corresponding reduction in the notional amount for the Class IO
Component that is related to such Class of Sequential Pay Certificates.
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"Realized Losses" are losses arising from the inability to collect all
amounts due and owing under any Mortgage Loan, including by reason of the fraud
or bankruptcy of the borrower or a casualty of any nature at the related
Mortgaged Property, to the extent not covered by insurance. The Realized Loss in
respect of a liquidated Mortgage Loan (or related REO Property) is an amount
generally equal to the excess, if any, of (a) the outstanding principal balance
of such Mortgage Loan as of the date of liquidation, together with (i) all
unpaid interest accrued thereon to but not including the Due Date in the
Collection Period in which the liquidation occurred (exclusive, however, of any
such accrued and unpaid interest that constitutes Default Interest and/or
Additional Interest) and (ii) related unreimbursed Servicing Advances, over (b)
the aggregate amount of Liquidation Proceeds, if any, recovered in connection
with such liquidation. If any portion of the debt due under a Mortgage Loan is
forgiven, whether in connection with a modification, waiver or amendment granted
or agreed to by the Special Servicer or in connection with the bankruptcy or
similar proceeding involving the related borrower, the amount so forgiven (to
the extent it constitutes principal, interest (other than Default Interest or
Additional Interest) or an amount for which a Servicing Advance has been made)
also will be treated as a Realized Loss.
"Additional Trust Fund Expenses" are any expenses experienced with respect
to the Trust Fund other than Realized Losses, that would result in the holders
of the Regular Interest Certificates receiving less than the full amount of
principal and/or interest to which they are entitled on any Distribution Date,
and include, among other things, (a) any Special Servicing Fees, Liquidation
Fees and/or Work-out Fees paid to the Special Servicer, (b) any interest paid to
the Master Servicer, the Special Servicer, the Trustee and/or the Fiscal Agent
in respect of unreimbursed Advances, and (c) any of certain unanticipated,
non-Mortgage Loan specific expenses of the Trust Fund, including (i) certain
indemnities and reimbursements to the Trustee and the Fiscal Agent of the type
described under "--The Trustee" herein (the Fiscal Agent having the same rights
to indemnity and reimbursement as described with respect to the Trustee), (ii)
certain indemnities and reimbursements to the Depositor, the Master Servicer and
the Special Servicer of the type described under "Servicing of the Mortgage
Loans--Certain Matters Regarding the Depositor, the Master Servicer and the
Special Servicer" herein, (iii) certain federal, state and local taxes, and
certain tax related expenses, payable from the assets of the Trust Fund and
described under "Certain Federal Income Tax Consequences--Possible Taxes on
Income from Foreclosure Property and Other Taxes" and "Servicing of the Mortgage
Loans--REO Properties" herein and (iv) certain servicing and administrative
expenses that have not been the subject of Servicing Advances (including the
costs of certain required opinions of counsel). Additional Trust Fund Expenses
will reduce amounts payable to Certificateholders and, subject to the
distribution priorities described above, may result in a loss on one or more
Classes of Offered Certificates.
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P&I ADVANCES
On or about each Distribution Date, the Master Servicer will be obligated,
subject to the recoverability determination described in the next paragraph, to
make advances (each, a "P&I Advance") out of its own funds or, subject to the
replacement thereof as provided in the Pooling and Servicing Agreement, from
funds held in the Custodial Account that are not required to be distributed to
Certificateholders (or paid to any other person pursuant to the Pooling and
Servicing Agreement) on such Distribution Date, in an amount that is generally
equal to the aggregate of all Scheduled Payments (other than Balloon Payments)
and any Assumed Scheduled Payments, net of related Master Servicing Fees and, if
any, Workout Fees, due or deemed due, as the case may be, in respect of the
Mortgage Loans during the related Collection Period, in each case to the extent
such amount was not paid by or on behalf of the related borrower or otherwise
collected as of the close of business on the related Determination Date. The
Master Servicer's obligations to make P&I Advances in respect of any Mortgage
Loan will continue until liquidation of such Mortgage Loan or disposition of any
REO Property acquired in respect thereof. However, if the Monthly Payment on any
Mortgage Loan has been reduced in connection with a bankruptcy or similar
proceeding or a modification, waiver or amendment granted or agreed to by the
Special Servicer, the Master Servicer will be required to advance only the
amount of the reduced Monthly Payment (net of related Master Servicing Fees and,
if any, Workout Fees) in respect of subsequent delinquencies. In addition, if it
is determined that an Appraisal Reduction Amount (as defined below) exists with
respect to any Required Appraisal Loan (as defined below), then, in the event of
subsequent delinquencies thereon, the interest portion (but only the interest
portion) of each P&I Advance, if any, required to be made in respect of such
Required Appraisal Loan during the period that such Appraisal Reduction Amount
continues to exist, will be reduced to equal the product of (i) the amount of
the interest portion of the subject P&I Advance that would otherwise be required
without regard to this sentence, multiplied by (ii) a fraction, the numerator of
which is equal to the Stated Principal Balance of such Mortgage Loan, net of
such Appraisal Reduction Amount, and the denominator of which is equal to the
Stated Principal Balance of such Mortgage Loan. Pursuant to the terms of the
Pooling and Servicing Agreement, if the Master Servicer fails to make a P&I
Advance required to be made, the Trustee shall then be required to make such P&I
Advance, and if the Trustee fails to make a P&I Advance required to be made, the
Fiscal Agent will then be required to make such P&I Advance, in each case,
subject to the recoverability standard described below. No default on the part
of the Trustee will be deemed to have occurred if the Fiscal Agent makes such
P&I Advance in a timely manner, as set forth in the Pooling and Servicing
Agreement. See "--Appraisal Reductions" below.
The Master Servicer (or the Trustee or Fiscal Agent, as applicable) will be
entitled to recover any P&I Advance made out of its own funds from any amounts
collected in respect of the Mortgage Loan as to which such P&I Advance was made
that constitute late collections of principal and interest (net of related
Master Servicing Fees and Workout Fees), whether such amounts are collected in
the form of late payments, Insurance Proceeds, Condemnation Proceeds or
Liquidation Proceeds, or any other recovery of the related Mortgage Loan or REO
Property. Neither the Master Servicer, the Trustee nor the Fiscal Agent will be
obligated to make any P&I Advance that it determines in accordance with the
Servicing Standard, would, if made, constitute a Nonrecoverable Advance, and the
Master Servicer (or the Trustee or the Fiscal Agent, as applicable) will be
entitled to recover, from general funds on deposit in the Custodial Account, any
P&I Advance made by it out of its own funds that it later determines to be a
Nonrecoverable Advance. See "Servicing of the Mortgage Loans--Custodial Account"
herein.
In connection with the recovery by the Master Servicer, the Trustee or the
Fiscal Agent of any P&I Advance made by it, the Master Servicer, the Trustee or
the Fiscal Agent, as applicable, will be entitled to be paid, out of any amounts
then on deposit in the Custodial Account, interest compounded annually at a per
annum rate (the "Reimbursement Rate") equal to the "prime rate" published in the
"Money Rates" section of THE WALL STREET JOURNAL, as such "prime rate" may
change from time to time, accrued on the amount of such P&I Advance from the
date made to but not including the date of reimbursement. Prior to
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the reimbursement of any P&I Advance made thereby, the Master Servicer, the
Trustee or the Fiscal Agent, as the case may be, will be entitled to the payment
of interest on such P&I Advance out of any Default Interest and/or late payment
charges collected on the related Mortgage Loan. To the extent not offset or
covered by Default Interest, late payment charges or amounts otherwise payable
on the Private Certificates, interest accrued on outstanding Advances will
result in a reduction in amounts payable on the Offered Certificates, subject to
the distribution priorities described herein.
APPRAISAL REDUCTIONS
Upon the earliest of the date (each such date, a "Required Appraisal Date")
that (1) any Mortgage Loan is sixty (60) days delinquent in respect of any
Monthly Payments, (2) the Mortgaged Property securing any Mortgage Loan has
become an REO Property, (3) any Mortgage Loan has been modified by the Special
Servicer to reduce the amount of any Monthly Payment, other than a Balloon
Payment, (4) a receiver is appointed and continues in such capacity in respect
of the Mortgaged Property securing any Mortgage Loan, (5) a borrower with
respect to any Mortgage Loan is subject to any bankruptcy proceeding or (6) a
Balloon Payment with respect to any Mortgage Loan has not been paid within 20
days following its most recent scheduled maturity date (each such Mortgage Loan,
including an REO Mortgage Loan, a "Required Appraisal Loan"), the Special
Servicer will be required to use reasonable efforts to obtain (within 60 days of
the applicable Required Appraisal Date) an appraisal of the related Mortgaged
Property prepared in accordance with 12 CFR Section225.62 and conducted in
accordance with the standards of the Appraisal Institute by a Qualified
Appraiser, unless such an appraisal had previously been obtained within the
prior 12 months (any such appraisal a "Required Appraisal"). A "Qualified
Appraiser" is an independent appraiser that (i) is a member in good standing of
the Appraisal Institute, (ii) if the state in which the subject Mortgaged
Property is located certifies or licenses appraisers, is certified or licensed
in such state, and (iii) has a minimum of five years experience in the subject
property type and market. The cost of such appraisal will be borne by the
Special Servicer, subject to the Special Servicer's right to be reimbursed
therefor out of Related Proceeds or, if not reimbursable therefrom, out of
general funds on deposit in the Custodial Account. As a result of any such
appraisal, it may be determined that an "Appraisal Reduction Amount" exists with
respect to the related Required Appraisal Loan, such determination to be made
upon the later of 30 days after the Required Appraisal Date (if no new appraisal
is required) or after receipt of a new appraisal (if one is required). The
Appraisal Reduction Amount for any Required Appraisal Loan will equal the
excess, if any, of (a) the sum of, without duplication, (i) the Stated Principal
Balance of such Required Appraisal Loan, (ii) to the extent not previously
advanced by or on behalf of the Master Servicer, the Trustee or the Fiscal
Agent, all unpaid interest on the Required Appraisal Loan through the most
recent Due Date prior to the date of calculation (net of related Master
Servicing Fees, and exclusive of any portion of such accrued and unpaid interest
that constitutes Additional Interest and/or Default Interest), (iii) all accrued
but unpaid Servicing Fees and any Additional Trust Fund Expenses in respect of
such Required Appraisal Loan, (iv) all related unreimbursed Advances (plus
accrued interest thereon) made by or on behalf of the Master Servicer, the
Special Servicer, the Trustee or the Fiscal Agent with respect to such Required
Appraisal Loan and (v) all currently due and unpaid real estate taxes and
assessments, insurance premiums and, if applicable, ground rents, and any
unfunded reserves for improvements, in respect of the related Mortgaged Property
(net of any amounts then escrowed for such items), over (b) an amount equal to
90% of the appraised value (net of any prior liens) of the related Mortgaged
Property as determined by the relevant Required Appraisal. If an Appraisal
Reduction Amount exists with respect to any Required Appraisal Loan, the
Controlling Class Representative will be entitled to obtain and deliver to the
Master Servicer and Trustee an appraisal meeting the requirements for a Required
Appraisal and, further, will be entitled to request that the Appraisal Reduction
Amount for such Required Appraisal Loan be recalculated based upon such
appraisal.
With respect to each Required Appraisal Loan (unless such Mortgage Loan has
become a Corrected Mortgage Loan and has remained current for twelve consecutive
Monthly Payments, and no other Servicing Transfer Event has occurred with
respect thereto during such twelve-month period, in which case
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it will cease to be a Required Appraisal Loan), the Special Servicer is
required, within 30 days of each anniversary of such loan's becoming a Required
Appraisal Loan, to order an update of the prior appraisal (the cost of which is
to be covered by, and reimbursable as, a Servicing Advance). Based upon such
appraisal, the Special Servicer will be required to redetermine and report to
the Trustee the then applicable Appraisal Reduction Amount, if any, with respect
to such Required Appraisal Loan.
REPORTS TO CERTIFICATEHOLDERS; AVAILABLE INFORMATION
CERTIFICATEHOLDER REPORTS. Based on information provided in monthly reports
prepared by the Master Servicer or Special Servicer, as applicable, and
delivered to the Trustee, the Trustee will prepare and forward either
electronically or by first class mail on each Distribution Date to, among
others, each Certificateholder, each initial Certificate Owner and (upon written
request made to the Trustee) each subsequent Certificate Owner (as identified to
the reasonable satisfaction of the Trustee):
1. A statement (a "Distribution Date Statement"), substantially in the
form of Annex C hereto, setting forth, among other things, for each
Distribution Date: (i) the amount of the distribution to the holders of each
Class of Sequential Pay Certificates in reduction of the Certificate Balance
thereof; (ii) the amount of the distribution to the holders of each Class of
Regular Interest Certificates allocable to Distributable Certificate
Interest; (iii) the amount of the distribution to the holders of each Class
of Regular Interest Certificates allocable to Prepayment Premiums and Yield
Maintenance Charges; (iv) the amount of the distribution to the holders of
each Class of Sequential Pay Certificates in reimbursement of previously
allocated Realized Losses and Additional Trust Fund Expenses; (v) the
Available Distribution Amount for such Distribution Date; (vi) the aggregate
amount of P&I Advances made in respect of the prior Distribution Date (vii)
(A) the aggregate amount of unreimbursed P&I Advances (and the aggregate
amount of interest accrued and payable thereon) as of the close of business
on the related Determination Date and (B) the aggregate amount of
unreimbursed Servicing Advances (and the aggregate amount of interest
accrued and payable thereon) outstanding as of the close of business on the
related Determination Date; (viii) the aggregate unpaid principal balances
of the Mortgage Pool outstanding immediately prior to, as of the close of
business on, and immediately after, the related Determination Date; (ix) the
number, aggregate unpaid principal balance, weighted average remaining term
to maturity and weighted average Mortgage Rate of the Mortgage Loans (other
than REO Mortgage Loans) as of the close of business on the related
Determination Date; (x) the number, aggregate unpaid principal balance (as
of the close of business on the related Determination Date) and aggregate
Stated Principal Balance (immediately after such Distribution Date) of
Mortgage Loans (A) delinquent one month, (B) delinquent two months, (C)
delinquent three or more months, and (D) as to which foreclosure proceedings
have been commenced; (xi) as to each Mortgage Loan referred to in the
preceding clause (x) above, (A) the loan number thereof, (B) the Stated
Principal Balance thereof immediately following such Distribution Date, (C)
whether the delinquency is in respect of its Balloon Payment, (D) whether a
notice of acceleration has been sent to the borrower and, if so, the date of
such notice, (E) whether a "Phase I" environmental assessment of the related
Mortgaged Property has been performed as contemplated by the Pooling and
Servicing Agreement and (F) a brief description of the status of any
foreclosure proceedings or any workout or loan modification negotiations
with the related borrower; (xii) with respect to any Mortgage Loan as to
which a liquidation event occurred during the related Collection Period
(other than a payment in full), (A) the loan number thereof, (B) the nature
of the liquidation event and, in the case of a determination by the Special
Servicer with respect to any defaulted Mortgage Loan or REO Property that
there has been a recovery of all Insurance Proceeds, Condemnation Proceeds,
Liquidation Proceeds and other payments or recoveries that the Special
Servicer has determined in accordance with the Servicing Standard, will be
ultimately recoverable (a "Final Recovery Determination"), a brief
description of the basis for such Final Recovery Determination, (C) the
aggregate of all Liquidation Proceeds and other amounts received in
connection with such liquidation event (separately identifying the portion
thereof allocable to
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distributions on the Certificates), and (D) the amount of any Realized Loss
in connection with such liquidation event; (xiii) with respect to any REO
Property included in the Trust Fund as of the close of business on the
related Determination Date, the loan number of the related Mortgage Loan,
the book value of such REO Property and the amount of income and other
amounts, if any, received with respect to such REO Property during the
related Collection Period (separately identifying the portion thereof
allocable to distributions on the Certificates); (xiv) with respect to any
Mortgage Loan as to which the related Mortgaged Property became an REO
Property during the related Collection Period, the loan number of such
Mortgage Loan and the Stated Principal Balance of such Mortgage Loan as of
the related acquisition date of such REO Property; (xv) with respect to any
REO Property included in the Trust Fund as to which a Final Recovery
Determination was made during the related Collection Period, (A) the loan
number of the related Mortgage Loan, (B) a brief description of the basis
for the Final Recovery Determination, (C) the aggregate of all Liquidation
Proceeds and other amounts received in connection with such Final Recovery
Determination (separately identifying the portion thereof allocable to
distributions on the Certificates), and (D) the amount of any Realized Loss
in respect of the related REO Property in connection with such Final
Recovery Determination; (xvi) the Accrued Certificate Interest and
Distributable Certificate Interest in respect of each Class of Regular
Interest Certificates for such Distribution Date; (xvii) any unpaid
Distributable Certificate Interest in respect of each Class of Regular
Interest Certificates after giving effect to the distributions made on such
Distribution Date, and if the full amount of the Principal Distribution
Amount was not distributed on such Distribution Date, the portion of the
shortfall affecting each Class of Sequential Pay Certificates; (xviii) the
Pass-Through Rate for each Class of Regular Interest Certificates for such
Distribution Date; (xix) the Principal Distribution Amount for such
Distribution Date, separately identifying the respective components thereof
(and, in the case of any principal prepayment or other unscheduled
collection of principal received during the related Collection Period, the
loan number for the related Mortgage Loan and the amount of such prepayment
or other collection of principal); (xx) the aggregate of all Realized Losses
incurred during the related Collection Period and, aggregated by type, all
Additional Trust Fund Expenses incurred during the related Collection
Period; (xxi) the aggregate of all Realized Losses and Additional Trust Fund
Expenses that remain unallocated immediately following such Distribution
Date; (xxii) the Certificate Balance of each Class of Sequential Pay
Certificates and the notional amount of each Class IO Component immediately
before and immediately after such Distribution Date, separately identifying
any reduction therein due to the allocation of Realized Losses and
Additional Trust Fund Expenses on such Distribution Date; (xxiii) the
certificate factor for each Class of Regular Interest Certificates
immediately following such Distribution Date; (xxiv) the aggregate amount of
interest on Advances paid to the Master Servicer, the Special Servicer, the
Trustee and the Fiscal Agent during the related Collection Period; (xxv) the
loan number for each Required Appraisal Loan and any related Appraisal
Reduction Amount as of the related Determination Date; (xxvi) the original
and then current credit support levels for each Class of Regular Interest
Certificates; (xxvii) the original and then current ratings for each Class
of Regular Interest Certificates; (xxviii) the aggregate amount of
Prepayment Premiums and Yield Maintenance Charges collected (A) during the
related Collection Period and (B) since the Closing Date; and (xxix) (A) the
aggregate amount of servicing compensation (separately identifying the
amount of each category of compensation) paid to the Master Servicer, the
Special Servicer and, if payable directly out of the Trust Fund without a
reduction in the servicing compensation otherwise payable to the Master
Servicer or the Special Servicer, to each sub-servicer, during the related
Collection Period, and (B) such other information as the Trustee is required
by the Code or other applicable law to furnish to enable Certificateholders
to prepare their tax returns.
2. A "CSSA Loan File" and a "CSSA Property File" setting forth certain
information with respect to the Mortgage Loans and the Mortgaged Properties,
respectively.
The Master Servicer or the Special Servicer (as specified in the Pooling and
Servicing Agreement) is required to deliver to the Trustee monthly and the
Trustee is required to deliver to each Certificateholder
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and each other person sent a Distribution Date Statement, on the first
Distribution Date following receipt thereof, the following seven reports (to the
extent received by the Trustee):
(a) A "Delinquent Loan Status Report" containing substantially the
information set forth in Annex D attached hereto, including, among other
things, those Mortgage Loans that were, as of the Determination Date
immediately preceding the preparation of such report, (1) delinquent 30-59
days, (2) delinquent 60-89 days, (3) delinquent 90 days or more, (4) current
but specially serviced, or (5) in foreclosure but not REO Property.
(b) An "Historical Loan Modification Report" containing substantially
the information set forth in Annex E attached hereto, including, among other
things, those Mortgage Loans which, as of the close of business on the
Determination Date immediately preceding the preparation of such report,
have been modified pursuant to the Pooling and Servicing Agreement (i)
during the related Collection Period and (ii) since the Cut-off Date,
showing the original and the revised terms thereof.
(c) An "Historical Loss Estimate Report" containing substantially the
information set forth in Annex F attached hereto, including, among other
things, as of the close of business on the Determination Date immediately
preceding the preparation of such report, (i) the aggregate amount of
Liquidation Proceeds and expenses relating to each Final Recovery
Determination, both during the related Collection Period and historically,
and (ii) the amount of Realized Losses occurring during the related
Collection Period and historically, set forth on a loan-by-loan basis.
(d) An "REO Status Report" containing substantially the information set
forth in Annex G attached hereto, including, with respect to each REO
Property included in the Trust Fund as of the close of business on the
Determination Date immediately preceding the preparation of such report,
among other things, (i) the acquisition date of such REO Property, (ii) the
amount of income collected with respect to such REO Property (net of related
expenses) and other amounts, if any, received on such REO Property during
the related Collection Period and (iii) the value of the REO Property based
on the most recent appraisal or other valuation thereof available to the
Special Servicer as of such Determination Date (including any prepared
internally by the Special Servicer).
(e) A "Watch List Report" containing substantially the information set
forth in Annex H attached hereto, including, among other things, any
Mortgage Loan that, as of the Determination Date immediately preceding the
preparation of such report, had a debt service coverage ratio of less than
1.0x and was in jeopardy of becoming a Specially Serviced Mortgage Loan.
(f) A "Loan Payoff Notification Report" setting forth, among other
things, for each Mortgage Loan where written notice of anticipated payoff
has been received as of the Determination Date immediately preceding the
preparation of such report, the control number, the property name, the
amount of principal expected to be paid, the expected date of payment and
the estimated amount of Yield Maintenance Charge or Prepayment Premium due.
(g) A "Comparative Financial Status Report" containing substantially the
information set forth in Annex K setting forth, among other things, the
occupancy and debt service coverage ratio for each Mortgage Loan or related
Mortgaged Property, as applicable, as of the Determination Date immediately
preceding the preparation of such report and the revenue and net operating
income for each of the following three periods (to the extent such
information is in the Master Servicer's or the Special Servicer's
possession): (i) the most current available year-to-date, (ii) each of the
previous two full fiscal years stated separately; and (iii) the "base year"
(representing the original analysis of information used as of the Cut-off
Date).
In addition, upon the request of any Certificateholder or any Certificate
Owner identified to the reasonable satisfaction of the Trustee, the Trustee will
be required to request from the Master Servicer and, upon receipt, make
available, during normal business hours at the offices of the Trustee, to the
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requesting Certificateholder or Certificate Owner, copies of the following
reports required to be prepared and maintained by the Master Servicer and/or
Special Servicer:
(x) With respect to any Mortgaged Property or REO Property, an
"Operating Statement Analysis" containing substantially the information set
forth in Annex I, together with copies of the subject annual operating
statements for such property attached thereto as an exhibit. See "Servicing
of the Mortgage Loans--Inspections; Collection of Operating Information"
herein.
(y) With respect to any Mortgaged Property or REO Property, an "NOI
Adjustment Worksheet" containing substantially the information set forth in
Annex J (together with copies of the subject annual operating statements
attached thereto as an exhibit), and presenting the computations made in
accordance with the methodology described in the Pooling and Servicing
Agreement to "normalize" the full year net operating income and debt service
coverage numbers used by the Special Servicer in the other reports
referenced above.
The Trustee will also be required to make available monthly to, among
others, Certificateholders and Certificate Owners identified to the Trustee in
writing, an electronic file containing Mortgage Loan information, based on
reports provided to it by the Master Servicer and/or the Special Servicer, in
the "CSSA Loan periodic update file" and the "CSSA Property File" with the
Delinquent Loan Status Report, Historical Loan Modification Report, Historical
Loss Estimate Report, REO Status Report, Loan Payoff Notification Report and
Watch List Report attached (provided that these reports are delivered to the
Trustee in an electronic format acceptable to the Trustee) via the Trustee's
bulletin board. Access to the bulletin board can be obtained by dialing (714)
282-3990. Those who have an account on the bulletin board may retrieve the data
file for each transaction in the directory. An account number may be obtained by
typing "NEW" upon logging into the bulletin board. In order to access
information from the bulletin board the user must have available their assigned
log-on ID. The Trustee may (at its discretion and with the consent of the
Depositor and the Underwriter) make the information that is available via its
bulletin board, also available via the Internet at www.LNBABS.com.
In addition, within a reasonable period of time after the end of each
calendar year, the Trustee is required to send to each person who at any time
during the calendar year was a Certificateholder of record, a report summarizing
on an annual basis (if appropriate) items (i), (ii), (iii) and (iv) of the
monthly Distribution Date Statements and such other information as may be
required to enable such Certificateholders to prepare their federal income tax
returns. Such information is required to include the amount of original issue
discount accrued on each Class of Certificates held by persons other than
Certificateholders and information regarding the expenses of the Trust Fund.
The information that pertains to Specially Serviced Trust Fund Assets
reflected in reports will be based solely upon the reports delivered by the
Special Servicer (directly or through the Master Servicer) to the Trustee prior
to related Distribution Date. Absent manifest error, none of the Master
Servicer, the Special Servicer or the Trustee will be responsible for the
accuracy or completeness of any information supplied to it by a borrower or
third party that is included in any reports, statements, materials or
information prepared or provided by the Master Servicer, the Special Servicer or
the Trustee, as applicable.
OTHER INFORMATION. The Pooling and Servicing Agreement requires that the
Trustee, upon reasonable prior written notice, make available at its offices
primarily responsible for administration of the Trust Fund, during normal
business hours, for review by the Depositor, the Rating Agencies, the
Controlling Class Representative and, subject to the discussion in the following
paragraph, any Certificateholder, Certificate Owner or person identified to the
Trustee as a prospective transferee of a Certificate or an interest therein,
originals and/or copies of the following items: (i) this Prospectus Supplement,
the Prospectus and any other disclosure document relating to the Offered
Certificates and the Private Certificates, in the form most recently provided to
the Trustee by the Depositor or by any person designated by the Depositor; (ii)
the Pooling and Servicing Agreement, each sub-servicing agreement delivered to
the Trustee since the
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Closing Date and any amendments thereto; (iii) all reports delivered to
Certificateholders since the Closing Date as described in "--Certificateholder
Reports" above; (iv) all annual performance certifications delivered by the
Master Servicer and the Special Servicer, respectively, to the Trustee since the
Closing Date as described in "Servicing of the Mortgage Loans--Evidence as to
Compliance" herein; (v) all annual accountants' reports caused to be delivered
by the Master Servicer and the Special servicer, respectively, to the Trustee
since the Closing Date as described in "Servicing of the Mortgage Loans --
Evidence as to Compliance" herein; (vi) the most recent inspection report
prepared by the Master Servicer or Special Servicer, as applicable, and
delivered to the Trustee in respect of each Mortgaged Property as described
under "Servicing of the Mortgage Loans--Inspections; Collection of Operating
Information" herein; (vii) any and all notices and reports delivered to the
Trustee with respect to any Mortgaged Property as to which the environmental
testing described in "Servicing of the Mortgage Loans -- Realization Upon
Defaulted Mortgage Loans; Sale of Defaulted Mortgage Loans and REO Properties"
revealed that both of the conditions set forth therein were not satisfied;
(viii) each of the Mortgage Files, including any and all modifications, waivers
and amendments of the terms of a Mortgage Loan entered into or consented to by
the Special Servicer and delivered to the Trustee; (ix) the most recent
appraisal for each Mortgaged Property and REO Property that has been delivered
to the Trustee by either the Master Servicer or the Special Servicer; and (x)
any and all officer's certificates and other evidence delivered to or by the
Trustee to support its, the Master Servicer's, the Special Servicer's or the
Fiscal Agent's, as the case may be, determination that any Advance was (or, if
made, would be) a Nonrecoverable Advance. Copies of any and all of the foregoing
items will be available from the Trustee upon written request; however, except
with respect to the Rating Agencies, the Trustee will be permitted to require
payment of a sum sufficient to cover the reasonable costs and expenses of
providing such information, including, without limitation, copy charges and
reasonable fees for employee time and for space.
In connection with providing access to or copies of the items described in
the preceding paragraph, the Trustee will require: (a) in the case of
Certificate Owners, a confirmation executed by the requesting person (in a form
reasonably acceptable to the Trustee) generally to the effect that such person
is a beneficial holder of Certificates held in book-entry format and will keep
such information confidential (except that such Certificate Owner may provide
such information to any other person that holds or is contemplating the purchase
of any Certificate or interest therein, provided that such other person confirms
in writing such ownership interest or prospective ownership interest and agrees
to keep such information confidential); and (b) in the case of a prospective
purchaser of a Certificate or an interest therein, confirmation executed by the
requesting person (in a form reasonably acceptable to the Trustee) generally to
the effect that such person is a prospective purchaser of a Certificate or an
interest therein, is requesting the information for use in evaluating a possible
investment in Certificates and will otherwise keep such information
confidential. The holders of the Certificates, by their acceptance thereof, will
be deemed to have agreed to keep such information confidential (except that any
Certificateholder may provide any such information obtained by it to any other
person that holds or is contemplating the purchase of any Certificate or
interest therein, provided that such other person confirms in writing such
ownership interest or prospective ownership interest and agrees to keep such
information confidential).
BOOK-ENTRY CERTIFICATES. Until such time as Definitive Offered Certificates
are issued in respect of any Class of Offered Certificates, the foregoing
information and access will be available to the holders of the Offered
Certificates only to the extent it is forwarded by or otherwise available
through DTC and DTC participants. Any beneficial owner of an Offered Certificate
who does not receive information through DTC or its participants may request
that Certificateholder reports be mailed directly to it by written request to
the Trustee (accompanied by evidence of such beneficial ownership). The manner
in which notices and other communications are conveyed by DTC to its
Participants, and by such Participants to Certificate Owners, will be governed
by arrangements among them, subject to any statutory or regulatory requirements
as may be in effect from time to time. The Master Servicer, the Special
Servicer, the Trustee and the Depositor are required to recognize as
"Certificateholders" only those persons in whose names the Certificates are
registered on the books and records of the Trustee or other registrar for the
Certificates.
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ASSUMED FINAL DISTRIBUTION DATE; RATED FINAL DISTRIBUTION DATE
The "Assumed Final Distribution Date" with respect to any Class of Regular
Interest Certificates is the Distribution Date on which the Certificate Balance
of such Class of Certificates (or, in the case of the Class IO Certificates, the
aggregate of the notional amounts of the respective Class IO Components) would
be reduced to zero based on the assumption that no Mortgage Loan is voluntarily
prepaid prior to its stated maturity date (except for the ARD Loans which are
assumed to be paid in full on their respective Anticipated Repayment Dates) and
otherwise based on the "Table Assumptions" set forth under "Yield and Maturity
Considerations--Weighted Average Life" herein, which Distribution Date shall in
each case be as follows:
<TABLE>
<CAPTION>
ASSUMED FINAL
DISTRIBUTION DATE
----------------------
<S> <C>
Class A-1................................................................................. November 18, 2004
Class A-2................................................................................. August 18, 2007
Class A-3................................................................................. January 18, 2008
Class IO.................................................................................. February 18, 2028
Class B................................................................................... January 18, 2008
Class C................................................................................... February 18, 2008
Class D................................................................................... April 18, 2012
Class E................................................................................... November 18, 2012
Class F................................................................................... January 18, 2013
Class G................................................................................... January 18, 2013
Class H................................................................................... January 18, 2013
Class J................................................................................... January 18, 2015
Class K................................................................................... September 18, 2016
Class L................................................................................... November 18, 2017
Class M................................................................................... February 18, 2028
</TABLE>
The Assumed Final Distribution Dates set forth above were calculated without
regard to any delays in the collection of Balloon Payments and without regard to
a reasonable liquidation time with respect to any Mortgage Loans that may be
delinquent. Accordingly, in the event of defaults on the Mortgage Loans, the
actual final Distribution Date for one or more Classes of the Offered
Certificates may be later, and could be substantially later, than the related
Assumed Final Distribution Date(s).
In addition, the Assumed Final Distribution Dates set forth above were
calculated on the basis of a 0% CPR (as defined herein), except that it is
assumed that the ARD Loans pay their respective outstanding principal balances
on their related Anticipated Repayment Dates. Because the rate of principal
payments (including voluntary prepayments and prepayments resulting from
casualties and/or condemnations at the Mortgaged Properties or liquidations of
defaulted Mortgage Loans) on the Mortgage Loans can be expected to exceed the
scheduled rate of principal payments, and could exceed such scheduled rate by a
substantial amount, the actual final Distribution Date for one or more Classes
of the Offered Certificates may be earlier, and could be substantially earlier,
than the related Assumed Final Distribution Date(s). The rate of principal
payments (including prepayments) on the Mortgage Loans will depend on the
characteristics of the Mortgage Loans, as well as on the prevailing levels of
interest rates and other economic factors, and no assurance can be given as to
actual principal payment experience. See "Yield and Maturity Considerations" and
"Description of the Mortgage Pool" herein and "Yield and Prepayment
Considerations" in the Prospectus.
The "Rated Final Distribution Date" with respect to each Class of Offered
Certificates is the first Distribution Date that follows the second anniversary
of the end of the amortization term for the Mortgage Loan that, as of the
Cut-off Date, has the longest remaining amortization term. The rating assigned
by a Rating Agency to any Class of Offered Certificates entitled to receive
distributions in respect
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of principal reflects an assessment of the likelihood that Certificateholders of
such Class will receive, on or before the Rated Final Distribution Date, all
principal distributions to which they are entitled. See "Ratings" herein.
VOTING RIGHTS
At all times during the term of the Pooling and Servicing Agreement, 100% of
the voting rights for the Certificates (the "Voting Rights") will be allocated
among the respective Classes of Sequential Pay Certificates in proportion to the
Certificate Balances of those Classes. Voting Rights allocated to a Class of
Certificates will be allocated among the related Certificateholders in
proportion to the percentage interests in such Class evidenced by their
respective Certificates. See "The Trust Agreement--Voting Rights" in the
Prospectus.
TERMINATION
The obligations created by the Pooling and Servicing Agreement will, with
limited exception, terminate upon payment (or provision for payment) to the
appropriate persons of all amounts held as part of the Trust Fund following the
earlier of (i) the final payment (or advance in respect thereof) or other
liquidation of the last Mortgage Loan or REO Property subject thereto, and (ii)
the purchase of all of the Mortgage Loans and all of the REO Properties
remaining in the Trust Fund, if any, by (in the following order of priority) the
Depositor, the Underwriter, the Special Servicer, the Majority Subordinate
Certificateholder or the Master Servicer. Written notice of termination of the
Pooling and Servicing Agreement will be given to each Certificateholder, and the
final distribution will be made only upon surrender and cancellation of the
Certificates at the office of the Trustee or other registrar for the
Certificates or at such other location as may be specified in such notice of
termination.
Any such purchase by the Depositor, the Underwriter, the Special Servicer,
the Majority Subordinate Certificateholder or the Master Servicer of all the
Mortgage Loans and any REO Properties remaining in the Trust Fund is required to
be made at a price equal to (1) the greater of (x) the aggregate Purchase Price
of all the Mortgage Loans and any REO Properties then included in the Trust
Fund, and (y) the aggregate fair market value of such Mortgage Loans and REO
Properties then included in the Trust Fund (to be determined as mutually agreed
upon by the Master Servicer, the Special Servicer and the Trustee), minus (2) if
the purchaser is the Master Servicer or the Special Servicer, the aggregate of
amounts payable or reimbursable to such person under the Pooling and Servicing
Agreement. Such purchase will effect early retirement of the then outstanding
Offered Certificates, but the right of the Depositor, the Underwriter, the
Special Servicer, the Majority Subordinate Certificateholder or the Master
Servicer to effect such termination is subject to the requirement that the then
aggregate Stated Principal Balance of the Mortgage Pool be less than 1% of the
Initial Pool Balance.
The purchase price paid in connection with the purchase of all Mortgage
Loans and any REO Properties remaining in the Trust Fund, exclusive of any
portion thereof payable or reimbursable to any person other than the
Certificateholders, will constitute part of the Available Distribution Amount
for the final Distribution Date. The Available Distribution Amount for the final
Distribution Date will be distributed by the Trustee generally as described
herein under "--Distributions--Application of the Available Distribution
Amount", except that the distributions of principal on any Class of Sequential
Pay Certificates described thereunder will be made, subject to available funds
and the distribution priorities described thereunder, in an amount equal to the
entire Certificate Balance of such Class remaining outstanding, and further
except that any distributions of principal on the respective Classes of Class A
Certificates (if more than one is then outstanding) described thereunder will be
made on a pro rata basis in accordance with their respective Certificate
Balances.
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THE TRUSTEE
LaSalle National Bank, a nationally chartered bank, will act as Trustee on
behalf of the Certificateholders. See "The Trust Agreement--The Trustee",
"--Duties of the Trustee" and "--Resignation of the Trustee" in the Prospectus.
As of the Closing Date, the offices of the Trustee primarily responsible for
administration of the Trust Fund (the "Corporate Trust Office") is located at
LaSalle National Bank, 135 South LaSalle Street, Suite 1625, Chicago, Illinois
60674-4107, Attention: Asset Backed Securities Trust Services Group--LB
Commercial Mortgage Trust 1998-C1. As compensation for its services, the Trustee
will be entitled to receive monthly, from general funds on deposit in the
Collection Account, the Trustee Fee. The "Trustee Fee" for each Mortgage Loan
and REO Mortgage Loan for any Distribution Date will equal one month's interest
for the most recently ended calendar month (calculated on the basis of a 360-day
year consisting of twelve 30-day months), accrued at the per annum rate (the
"Trustee Fee Rate") set forth in the Pooling and Servicing Agreement on the
Stated Principal Balance of such Mortgage Loan or REO Mortgage Loan, as the case
may be, outstanding immediately following the prior Distribution Date (or, in
the case of the initial Distribution Date, as of the Closing Date).
The Trustee and any director, officer, employee or agent thereof will be
entitled to indemnification, from amounts held in the Trust Fund, for any loss,
liability or reasonable "out-of-pocket" expense arising in respect of the
Pooling and Servicing Agreement or the Certificates; provided, however, that
such indemnification will not extend to any expense specifically required to be
borne by the Trustee pursuant to the terms of the Pooling and Servicing
Agreement, or to any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence on the part of the Trustee in the
performance of its obligations and duties thereunder.
The Trustee will also have certain duties with respect to REMIC
administration. See "Certain Federal Income Tax Consequences--REMICs--Reporting
and Other Administrative Matters" herein.
THE FISCAL AGENT
ABN AMRO Bank N.V., a banking corporation organized under the laws of The
Netherlands, will act as Fiscal Agent pursuant to the Pooling and Servicing
Agreement. The Fiscal Agent's office is located at 135 South LaSalle Street,
Suite 1625, Chicago, Illinois 60674-4107; Attention: Asset-Backed Securities
Trust Services Group-LB Commercial Mortgage Trust 1998-C1. The Fiscal Agent will
make no representation as to the validity or sufficiency of the Pooling and
Servicing Agreement, the Certificates, the Mortgage Loans, this Prospectus
Supplement (except for the first two sentences of this paragraph) or related
documents. The duties and obligations of the Fiscal Agent consist only of making
P&I Advances as described under "--P&I Advances" above and Servicing Advances as
described under "Servicing of the Mortgage Loans--Servicing and Other
Compensation and Payment of Expenses" herein. The Fiscal Agent will not be
liable except for the performance of such duties and obligations. The Fiscal
Agent will be entitled to reimbursement for each Advance made by it (with
interest thereon at the Reimbursement Rate) in the same manner and to the same
extent as the Trustee and the Master Servicer. The Fiscal Agent will be entitled
to various rights, protections and indemnities similar to those afforded the
Trustee. The Trustee will be responsible for payment of the compensation of the
Fiscal Agent. As of June 30, 1997, the Fiscal Agent had consolidated assets of
approximately $398 billion.
S-101
<PAGE>
YIELD AND MATURITY CONSIDERATIONS
YIELD CONSIDERATIONS
GENERAL. The yield on any Offered Certificate will depend on (a) the price
at which such Certificate is purchased by an investor and (b) the rate, timing
and amount of distributions on such Certificate. The rate, timing and amount of
distributions on any Offered Certificate will in turn depend on, among other
things, (i) the Pass-Through Rate for such Certificate (or, in the case of a
Class IO Certificate, the weighted average of the Pass-Through Rates for the
respective Class IO Components from time to time), (ii) the rate and timing of
principal payments (including principal prepayments) and other principal
collections on the Mortgage Loans and the extent to which such amounts are to be
applied in reduction of the Certificate Balance of the related Class (or, in the
case of a Class IO Certificate, the notional amount of a Class IO Component),
(iii) the rate, timing and severity of Realized Losses and Additional Trust Fund
Expenses and the extent to which such losses and expenses are allocable in
reduction of the Certificate Balance of the related Class (or, in the case of a
Class IO Certificate, the notional amount of a Class IO Component), and (iv) the
timing and severity of any Net Aggregate Prepayment Interest Shortfalls and the
extent to which such shortfalls are allocable in reduction of the Distributable
Certificate Interest payable on the related Class.
RATE AND TIMING OF PRINCIPAL PAYMENT. The yield to holders of the Class IO
Certificates will be extremely sensitive to, and the yield to holders of any
other Offered Certificates purchased at a discount or premium will be affected
by, the rate and timing of principal payments on or in respect of the Mortgage
Loans, which will in turn be affected by the amortization schedules thereof, the
dates on which Balloon Payments are due and the rate and timing of principal
prepayments and other unscheduled collections thereon (including for this
purpose, collections made in connection with liquidations of Mortgage Loans due
to defaults, casualties or condemnations affecting the Mortgaged Properties, or
purchases of Mortgage Loans out of the Trust Fund). Prepayments and, assuming
the respective stated maturity dates therefor have not occurred, liquidations
and purchases of the Mortgage Loans, will result in distributions on the
Certificates of amounts that would otherwise be distributed over the remaining
terms of the Mortgage Loans. Defaults on the Mortgage Loans, particularly at or
near their stated maturity dates, may result in significant delays in payments
of principal on the Mortgage Loans (and, accordingly, on the Offered
Certificates that are Sequential Pay Certificates) while work-outs are
negotiated or foreclosures are completed. See "Servicing of the Mortgage
Loans--Modifications, Waivers and Amendments" and
"--Realization Upon Defaulted Mortgage Loans; Sale of Defaulted Mortgage Loans
and REO Properties" herein and "Certain Legal Aspects of Mortgage
Loans--Foreclosure of Mortgage" in the Prospectus.
The extent to which the yield to maturity of any Class of Offered
Certificates may vary from the anticipated yield will depend upon the degree to
which such Certificates are purchased at a discount or premium and when, and to
what degree, payments of principal on the Mortgage Loans in turn are distributed
or otherwise result in reduction of the Certificate Balance or notional amount,
as the case may be, of such Certificates. An investor should consider, in the
case of any Offered Certificate purchased at a discount, the risk that a slower
than anticipated rate of principal payments on the Mortgage Loans could result
in an actual yield to such investor that is lower than the anticipated yield
and, in the case of a Class IO Certificate or any other Offered Certificate
purchased at a premium, the risk that a faster than anticipated rate of
principal payments could result in an actual yield to such investor that is
lower than the anticipated yield. In general, the earlier a payment of principal
on the Mortgage Loans is distributed or otherwise results in reduction of the
principal balance of an Offered Certificate that is a Sequential Pay Certificate
purchased at a discount or premium, the greater will be the effect on an
investor's yield to maturity. As a result, the effect on an investor's yield of
principal payments on the Mortgage Loans occurring at a rate higher (or lower)
than the rate anticipated by the investor during any particular period would not
be fully offset by a subsequent like reduction (or increase) in the rate of such
principal payments. THE YIELD ON THE CLASS IO CERTIFICATES WILL BE AFFECTED BY
ALL PRINCIPAL PAYMENTS ON THE MORTGAGE
S-102
<PAGE>
LOANS, AND INVESTORS IN SUCH CERTIFICATES SHOULD FULLY CONSIDER THE RISK THAT A
RAPID RATE OF PRINCIPAL PAYMENTS ON THE MORTGAGE LOANS COULD RESULT IN THE
FAILURE OF SUCH INVESTORS TO RECOUP THEIR INITIAL INVESTMENTS. Because the rate
of principal payments on the Mortgage Loans will depend on future events and a
variety of factors (as described more fully below), no assurance can be given as
to such rate or the rate of principal prepayments in particular. The Depositor
is not aware of any relevant publicly available or authoritative statistics with
respect to the historical prepayment experience of a large group of mortgage
loans comparable to the Mortgage Loans.
LOSSES AND SHORTFALLS. The yield to holders of the Offered Certificates
will also depend on the extent to which such holders are required to bear the
effects of any losses or shortfalls on the Mortgage Loans. Losses and other
shortfalls on the Mortgage Loans will, with the exception of any Net Aggregate
Prepayment Interest Shortfalls, generally be borne by the holders of the
respective Classes of Sequential Pay Certificates, to the extent of amounts
otherwise distributable in respect of their Certificates, in reverse
alphabetical order of their Class designations. Realized Losses and Additional
Trust Fund Expenses will be allocated, as and to the extent described herein, to
the respective Classes of Sequential Pay Certificates (in reduction of the
Certificate Balance of each such Class), in reverse alphabetical order of their
Class designations. Any Realized Loss or Additional Trust Fund Expenses
allocated in reduction of the Certificate Balance of any Class of Sequential Pay
Certificates will result in a corresponding reduction in the notional amount of
the related Class IO Component. As more fully described herein under
"Description of the Certificates--Distributions--Distributable Certificate
Interest," Net Aggregate Prepayment Interest Shortfalls will generally be borne
by the respective Classes of Regular Interest Certificates on a PRO RATA basis.
PASS-THROUGH RATES. The Pass-Through Rate applicable to each Class IO
Component will be variable and will be equal to the Weighted Average Net
Mortgage Rate from time to time minus the fixed Pass-Through Rate on the Class
of Sequential Pay Certificates relating to such Class IO Component. Accordingly,
the Pass-Through Rates on the Class IO Components and, correspondingly, the
yield on the Class IO Certificates, will be sensitive to changes in the relative
composition of the Mortgage Pool as a result of scheduled amortization,
voluntary prepayments and liquidations and to changes in the relative sizes of
the Certificate Balances of the respective Classes of Sequential Pay
Certificates.
CERTAIN RELEVANT FACTORS. The rate and timing of principal payments and
defaults and the severity of losses on the Mortgage Loans may be affected by a
number of factors, including, without limitation, prevailing interest rates, the
terms of the Mortgage Loans (for example, Lockout Periods, provisions requiring
the payment of Prepayment Premiums and Yield Maintenance Charges and
amortization terms that require Balloon Payments), the demographics and relative
economic vitality of the areas in which the Mortgaged Properties are located and
the general supply and demand for rental units, hotel/motel guest rooms, health
care facility beds, mobile home park pads or comparable commercial space, as
applicable, in such areas, the quality of management of the Mortgaged
Properties, the servicing of the Mortgage Loans, possible changes in tax laws
and other opportunities for investment. See "Risk Factors--The Mortgage Loans"
and "Description of the Mortgage Pool" herein and "Yield and Prepayment
Considerations" in the Prospectus.
The rate of prepayment on the Mortgage Pool is likely to be affected by
prevailing market interest rates for mortgage loans of a comparable type, term
and risk level. When the prevailing market interest rate is below the Mortgage
Rate (or, in the case of an ARD Loan after its Anticipated Repayment Date, the
Revised Rate) at which a Mortgage Loan accrues interest, the related borrower
may have an increased incentive to refinance its mortgage loan. Conversely, to
the extent prevailing market interest rates exceed the applicable Mortgage Rate
(or, for ARD Loans after their Anticipated Repayment Dates, the Revised Rate)
for any Mortgage Loan, such Mortgage Loan may be less likely to prepay (other
than, in the case of the ARD Loans, out of certain net cash flow from the
related Mortgaged Property). In particular, the Revised Rate for each ARD Loan
generally is the greater of the Mortgage Rate therefor plus two or more
S-103
<PAGE>
percentage points and the then current applicable treasury rate plus two or more
percentage points, and the primary incentive to prepay an ARD Loan on or before
its Anticipated Repayment Date, assuming prevailing market interest rates exceed
such Revised Rate, is to give the borrower access to excess cash flow, all of
which (net of approved property expenses and any required reserves) must be
applied to pay down principal of the Mortgage Loan. Accordingly, there can be no
assurance that any ARD Loan will be prepaid on or before its Anticipated
Repayment Date or on any other date prior to maturity.
As of the Cut-off Date, all of the Mortgage Loans may be prepaid at any time
after the expiration of the applicable Lockout Period and/or any period when the
holder of a Mortgage may require a borrower to pledge Defeasance Collateral in
lieu of prepaying the related Mortgage Loan (a "Required Defeasance Period"),
subject, in most cases, to the payment of a Prepayment Premium or a Yield
Maintenance Charge. A requirement that a prepayment be accompanied by a
Prepayment Premium or Yield Maintenance Charge may not provide a sufficient
economic disincentive to deter a borrower from refinancing at a more favorable
interest rate.
Depending on prevailing market interest rates, the outlook for market
interest rates and economic conditions generally, some borrowers may sell or
refinance Mortgaged Properties in order to realize their equity therein, to meet
cash flow needs or to make other investments. In addition, some borrowers may be
motivated by federal and state tax laws (which are subject to change) to sell
Mortgaged Properties prior to the exhaustion of tax depreciation benefits.
The Depositor makes no representation as to the particular factors that will
affect the rate and timing of prepayments and defaults on the Mortgage Loans, as
to the relative importance of such factors, as to the percentage of the
principal balance of the Mortgage Loans that will be prepaid or as to whether a
default will have occurred as of any date or as to the overall rate of
prepayment or default on the Mortgage Loans.
DELAY IN PAYMENT OF DISTRIBUTIONS. Because monthly distributions will not
be made to Certificateholders until a date that is scheduled to be at least 18
days following the Due Dates for the Mortgage Loans during the related
Collection Period, the effective yield to the holders of the Offered
Certificates will be lower than the yield that would otherwise be produced by
the applicable Pass-Through Rates and purchase prices (assuming such prices did
not account for such delay).
UNPAID DISTRIBUTABLE CERTIFICATE INTEREST. As described under "Description
of the Certificates
- - --Distributions--Application of the Available Distribution Amount" herein, if
the portion of the Available Distribution Amount distributable in respect of
interest on any Class of Offered Certificates on any Distribution Date is less
than the Distributable Certificate Interest then payable for such Class, the
shortfall will be distributable to holders of such Class of Certificates on
subsequent Distribution Dates, to the extent of available funds. Any such
shortfall will not bear interest, however, and will therefore negatively affect
the yield to maturity of such Class of Certificates for so long as it is
outstanding.
YIELD SENSITIVITY OF THE CLASS IO CERTIFICATES. The yield to maturity on
the Class IO Certificates will be extremely sensitive to the rate and timing of
principal payments (including by reason of prepayments, defaults and
liquidations) on the Mortgage Loans. Accordingly, investors in the Class IO
Certificates should fully consider the associated risks, including the risk that
a rapid rate of prepayment of the Mortgage Loans could result in the failure of
such investors to fully recoup their initial investments. The allocation of a
portion of collected Prepayment Premiums and Yield Maintenance Charges to the
Class IO Certificates is intended to reduce those risks; however, such
allocation may be insufficient to offset fully the adverse effects on the yield
on such Class of Certificates that the related prepayments may otherwise have.
S-104
<PAGE>
PRICE/YIELD TABLES
The tables beginning on page B-13 of Annex B hereto (the "Yield Tables")
show the pre-tax corporate bond equivalent ("CBE") yield to maturity, modified
duration (except in the case of the Class IO Certificates), weighted average
life, first Distribution Date on which principal is to be paid ("First Principal
Payment Date") and final Distribution Date on which principal is to be paid
("Last Principal Payment Date") with respect to each Class of Offered
Certificates, prepared using the Table Assumptions (as described below) and,
where applicable, the specified assumed purchase prices (which prices do not
include accrued interest). Assumed purchase prices are expressed in 32nds (i.e.
100.04 means 100 4/32 %) as a percentage of the initial Certificate Balance (or,
in the case of the Class IO Certificates, of the aggregate of the initial
notional amounts of the respective Class IO Components) of each Class of Offered
Certificates. For purposes of the Yield Tables relating to the Class IO
Certificates, the information therein relating to weighted average life, First
Principal Payment Date and Last Principal Payment Date is being calculated in
respect of the aggregate notional amount of the respective Class IO Components
of the Class IO Certificates.
The yields set forth in the Yield Tables were calculated by determining the
monthly discount rates which, when applied to the assumed stream of cash flows
to be paid on each Class of Offered Certificates, would cause the discounted
present value of such assumed stream of cash flows to equal the assumed purchase
prices, plus accrued interest from and including the Cut-off Date to but
excluding the Assumed Settlement Date (as defined below), and by converting such
monthly rates to semi-annual corporate bond equivalent rates. Such calculation
does not take into account variations that may occur in the interest rates at
which investors may be able to reinvest funds received by them as distributions
on the Offered Certificates and consequently does not purport to reflect the
return on any investment in such Classes of Offered Certificates when such
reinvestment rates are considered. For purposes of the Yield Tables (except in
the case of the Class IO Certificates), "modified duration" has been calculated
using the modified Macaulay Duration as specified in the "PSA Standard
Formulas." The Macaulay Duration is calculated as the present value weighted
average time to receive future payments of principal and interest, and the PSA
Standard Formula modified duration is calculated by dividing the Macaulay
Duration by the appropriate semi-annual compounding factor. The duration of a
security may be calculated according to various methodologies; accordingly, no
representation is made by the Depositor or any other person that the "modified
duration" approach used herein is appropriate. Duration, like yield, will be
affected by the prepayment rate of the Mortgage Loans and extensions in respect
of Balloon Payments that actually occur during the life of the Class A, Class B,
Class C, Class D and Class E Certificates and by the actual performance of the
Mortgage Loans, all of which may differ, and may differ significantly, from the
assumptions used in preparing the Yield Tables.
Prepayments on mortgage loans may be measured by a prepayment standard or
model. The model used in this Prospectus Supplement is the "Constant Prepayment
Rate" or "CPR" model. The CPR model represents an assumed constant annual rate
of prepayment each month, expressed as a per annum percentage of the then
scheduled principal balance of one or more mortgage loans.
The Yield Tables were derived from calculations based on the following
assumptions (the "Table Assumptions"): (i) no Mortgage Loan prepays during any
applicable Lockout Period or Required Defeasance Period or during any period
when a Prepayment Premium or a Yield Maintenance Charge could be required in
connection with a voluntary prepayment of principal, each ARD Loan is paid in
full on its respective Anticipated Repayment Date and, otherwise, in the case of
each of the Yield Tables, each Mortgage Loan is assumed to prepay at the
indicated level of CPR, with each prepayment being applied on the first day of
the applicable month in which it is assumed to be received, (ii) the
Pass-Through Rates and initial Certificate Balances of the respective Classes of
Sequential Pay Certificates are as described herein, (iii) there are no
delinquencies or defaults with respect to, and no modifications, waivers or
amendments of the terms of, the Mortgage Loans, (iv) there are no Realized
Losses, Additional Trust Fund Expenses or Appraisal Reduction Amounts with
respect to the Mortgage Loans or the Trust Fund, (v) scheduled
S-105
<PAGE>
interest and principal payments on the Mortgage Loans are timely received, (vi)
all Mortgage Loans have Due Dates on the first day of each month and accrue
interest on the respective basis described herein (i.e., a 30/360 basis or an
actual/360 basis), (vii) all prepayments are accompanied by a full month's
interest and there are no Prepayment Interest Shortfalls, (viii) there are no
breaches of the Mortgage Loan Seller's representations and warranties regarding
the Mortgage Loans, (ix) no Prepayment Premiums or Yield Maintenance Charges are
collected, (x) no party entitled thereto exercises its right of optional
termination of the Trust Fund described herein, (xi) distributions on the
Certificates are made on the 18th day (each assumed to be a business day) of
each month, commencing in March 1998, and (xii) the settlement date for the sale
of the Offered Certificates is March 11, 1998 (the "Assumed Settlement Date").
The characteristics of the Mortgage Loans differ in certain respects from
those assumed in preparing the Yield Tables, and the Yield Tables are presented
for illustrative purposes only. In particular, none of the Mortgage Loans permit
voluntary partial prepayments. Thus neither the Mortgage Pool nor any Mortgage
Loan will prepay at any constant rate, and it is unlikely that the Mortgage
Loans will prepay in a manner consistent with any designated scenario for the
Yield Tables. In addition, there can be no assurance that the Mortgage Loans
will prepay at any particular rate, that the Mortgage Loans will not prepay
(involuntarily or otherwise) during Lockout Periods and/or Required Defeasance
Periods, that the ARD Loans will be paid in full on their respective Anticipated
Repayment Dates, that the actual pre-tax yields on, or any other payment
characteristics of, any Class of Offered Certificates will correspond to any of
the information shown in the Yield Tables, or that the aggregate purchase prices
of the Offered Certificates will be as assumed. Accordingly, investors must make
their own decisions as to the appropriate assumptions (including prepayment
assumptions) to be used in deciding whether to purchase the Offered
Certificates.
S-106
<PAGE>
WEIGHTED AVERAGE LIFE
The weighted average life of any Class A-1, Class A-2, Class A-3, Class B,
Class C, Class D or Class E Certificate refers to the average amount of time
that will elapse from the assumed Closing Date until each dollar allocable to
principal of such Certificate is distributed to the investor. The weighted
average life of any such Offered Certificate will be influenced by, among other
things, the rate at which principal on the Mortgage Loans is paid or otherwise
collected or advanced and applied to pay principal of such Offered Certificate.
As described herein, the Principal Distribution Amount for each Distribution
Date will generally be distributable first in respect of the Class A-1
Certificates until the Certificate Balance thereof is reduced to zero, and will
thereafter generally be distributable entirely in respect of the Class A-2
Certificates, the Class A-3 Certificates, the Class B Certificates, the Class C
Certificates, the Class D Certificates and the Class E Certificates, in that
order, in each case until the Certificate Balance of such Class of Certificates
is reduced to zero.
The following tables indicate the percentage of the initial Certificate
Balance of each Class of Offered Certificates (other than the Class IO
Certificates) that would be outstanding after each of the dates shown and the
corresponding weighted average life of each such Class of Offered Certificates.
The tables have been prepared on the basis of the Table Assumptions. To the
extent that the Mortgage Loans or the Certificates have characteristics that
differ from those assumed in preparing the tables, the Class A-1, Class A-2,
Class A-3, Class B, Class C, Class D and/or Class E Certificates may mature
earlier or later than indicated by the tables. In particular, partial
prepayments on the Mortgage Loans in fact are not permitted. Accordingly, the
Mortgage Loans will not prepay at any constant rate, and it is highly unlikely
that the Mortgage Loans will prepay in a manner consistent with the assumptions
described above. In addition, variations in the actual prepayment experience and
the balance of the Mortgage Loans that prepay may increase or decrease the
percentages of initial Certificate Balances (and shorten or extend the weighted
average lives) shown in the following tables. Investors are urged to conduct
their own analyses of the rates at which the Mortgage Loans may be expected to
prepay.
The tables set forth below were prepared on the basis of the Table
Assumptions and indicate the resulting weighted average lives of each Class of
Offered Certificates (other than the Class IO Certificates) and set forth the
percentages of the initial Certificate Balance of such Class of Offered
Certificates that would be outstanding after each of the dates shown in each
case assuming the indicated level of CPR. For purposes of the following tables,
the weighted average life of an Offered Certificate (other than the Class IO
Certificates) is determined by (i) multiplying the amount of each principal
distribution thereon by the number of years from the Assumed Settlement Date of
such Certificate to the related Distribution Date, (ii) summing the results and
(iii) dividing the sum by the aggregate amount of the reductions in the
principal balance of such Certificate.
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-1 CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 93 93 93 93 93
February 18, 2000.......................................... 86 86 86 86 86
February 18, 2001.......................................... 79 79 79 79 79
February 18, 2002.......................................... 71 71 71 71 71
February 18, 2003.......................................... 35 35 35 35 35
February 18, 2004.......................................... 25 25 25 24 23
February 18, 2005.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 4.4 4.4 4.4 4.4 4.4
</TABLE>
S-107
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-2 CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 48 48 48 48 48
February 18, 2006.......................................... 40 40 40 40 40
February 18, 2007.......................................... 31 30 29 28 26
February 18, 2008.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 7.8 7.7 7.7 7.7 7.7
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-3 CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 100 100 100 100 100
February 18, 2006.......................................... 100 100 100 100 100
February 18, 2007.......................................... 100 100 100 100 100
February 18, 2008.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 9.7 9.7 9.7 9.7 9.6
</TABLE>
S-108
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS B CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 100 100 100 100 100
February 18, 2006.......................................... 100 100 100 100 100
February 18, 2007.......................................... 100 100 100 100 100
February 18, 2008.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 9.9 9.9 9.9 9.9 9.9
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS C CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 100 100 100 100 100
February 18, 2006.......................................... 100 100 100 100 100
February 18, 2007.......................................... 100 100 100 100 100
February 18, 2008.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 9.9 9.9 9.9 9.9 9.9
</TABLE>
S-109
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS D CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 100 100 100 100 100
February 18, 2006.......................................... 100 100 100 100 100
February 18, 2007.......................................... 100 100 100 100 100
February 18, 2008.......................................... 89 89 89 89 89
February 18, 2009.......................................... 77 77 76 76 75
February 18, 2010.......................................... 46 45 44 44 42
February 18, 2011.......................................... 16 15 14 13 12
February 18, 2012.......................................... 2 0 0 0 0
February 18, 2013.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 11.9 11.8 11.8 11.8 11.7
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS E CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, DEFEASANCE, YM OR PP--OTHERWISE AT
INDICATED CPR
---------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ----------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Closing Date............................................... 100% 100% 100% 100% 100%
February 18, 1999.......................................... 100 100 100 100 100
February 18, 2000.......................................... 100 100 100 100 100
February 18, 2001.......................................... 100 100 100 100 100
February 18, 2002.......................................... 100 100 100 100 100
February 18, 2003.......................................... 100 100 100 100 100
February 18, 2004.......................................... 100 100 100 100 100
February 18, 2005.......................................... 100 100 100 100 100
February 18, 2006.......................................... 100 100 100 100 100
February 18, 2007.......................................... 100 100 100 100 100
February 18, 2008.......................................... 100 100 100 100 100
February 18, 2009.......................................... 100 100 100 100 100
February 18, 2010.......................................... 100 100 100 100 100
February 18, 2011.......................................... 100 100 100 100 100
February 18, 2012.......................................... 100 98 93 89 82
February 18, 2013.......................................... 0 0 0 0 0
Weighted Average Life (in years)........................... 14.5 14.4 14.3 14.3 14.2
</TABLE>
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<PAGE>
USE OF PROCEEDS
Substantially all of the proceeds from the sale of the Offered Certificates
will be used by the Depositor to purchase the Mortgage Loans and to pay certain
expenses in connection with the issuance of the Certificates.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
GENERAL
Upon the issuance of the Offered Certificates, Sidley & Austin, counsel to
the Depositor, will deliver its opinion generally to the effect that, assuming
compliance with all provisions of the Pooling and Servicing Agreement, for
federal income tax purposes, the portions of the Trust Fund designated in the
Pooling and Servicing Agreement as "REMIC I," "REMIC II" and "REMIC III,"
respectively, will each qualify as a REMIC under the Code. The assets of REMIC I
will consist of the Mortgage Loans, any REO Properties acquired on behalf of the
Certificateholders and funds deposited from time to time in the Custodial
Account, the Collection Account and any REO Account, exclusive of any Additional
Interest on the ARD Loans (see "Servicing of the Mortgage Loans--Custodial
Account" and "--REO Properties" and "Description of the Certificates--Collection
Account"). For federal income tax purposes, (a) the separate noncertificated
regular interests in REMIC I will be the "regular interests" in REMIC I and will
constitute the assets of REMIC II, (b) the Class R-I Certificates will be the
sole class of "residual interests" in REMIC I, (c) the separate noncertificated
regular interests in REMIC II will be the "regular interests" in REMIC II and
will constitute the assets of REMIC III, (d) the Class R-II Certificates will be
the sole class of "residual interests," in REMIC II, (e) the Regular Interest
Certificates (or, in the case of the Class IO Certificates, the Class IO
Components) evidence the ownership of the "regular interests" in REMIC III,
which generally will be treated as debt instruments of REMIC III, and (f) the
Class R-III Certificates will be the sole class of "residual interests" in REMIC
III. For federal income tax purposes the Class IO Certificates will consist of
fourteen components, each corresponding to one of the Classes of Sequential Pay
Certificates constituting "regular interests" in REMIC III. See "Federal Income
Tax Considerations" in the Prospectus. The Sequential Pay Certificates will
represent PRO RATA (based on their respective initial Certificate Balances)
undivided beneficial interests in the portion of the Trust Fund consisting of
any Additional Interest collected on the ARD Loans, and such portion will be
treated as part of a grantor trust for federal income tax purposes.
DISCOUNT AND PREMIUM; PREPAYMENT PREMIUMS AND YIELD MAINTENANCE CHARGES;
ADDITIONAL INTEREST
The Class A, Class B, Class C, Class D and Class E Certificates will not,
and the Class IO Certificates will, be treated as having been issued with
original issue discount for federal income tax reporting purposes. The
prepayment assumption that will be used in determining the rate of accrual of
original issue discount, market discount and premium, if any, for federal income
tax purposes will be based on the assumption that subsequent to the date of any
determination the Mortgage Loans will prepay at a rate equal to a CPR of 0%,
except that it is assumed that the ARD Loans are paid in full on their
respective Anticipated Repayment Dates. No representation is made as to how the
Mortgage Loans will prepay, if at all. See "Federal Income Tax Considerations"
in the Prospectus.
If the method for computing original issue discount described in the
Prospectus results in a negative amount for any period with respect to a
Certificateholder (in particular, the holder of a Class IO Certificate), the
amount of original issue discount allocable to such period would be zero and
such Certificateholder will be permitted to offset such negative amount only
against future original issue discount (if any) attributable to such
Certificates. Although the matter is not free from doubt, a holder of a Class IO
Certificate may be permitted to deduct a loss to the extent that his or her
respective remaining basis in such Certificate exceeds the maximum amount of
future payments to which such Certificateholder is entitled, assuming no further
prepayments of the Mortgage Loans. Any such loss might be treated as a capital
loss.
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<PAGE>
The Internal Revenue Service (the "IRS") has issued regulations (the "OID
Regulations") under Sections 1271 to 1275 of the Code generally addressing the
treatment of debt instruments issued with original issue discount. The OID
Regulations in some circumstances permit the holder of a debt instrument to
recognize original issue discount under a method that differs from that used by
the issuer. Accordingly, it is possible that the holder of an Offered
Certificate may be able to select a method for recognizing original issue
discount that differs from that used by the Trustee in preparing reports to the
Certificateholders and the IRS. Prospective purchasers of Offered Certificates
are advised to consult their tax advisors concerning the tax treatment of such
Certificates.
Certain Classes of the Offered Certificates may be treated for federal
income tax purposes as having been issued at a premium. Whether any holder of
such a Class of Certificates will be treated as holding a Certificate with
amortizable bond premium will depend on such Certificateholder's purchase price
and the distributions remaining to be made on such Certificate at the time of
its acquisition by such Certificateholder. Holders of such Classes of
Certificates should consult their own tax advisors regarding the possibility of
making an election to amortize such premium. See "Federal Income Tax
Considerations-- Taxation of Regular Interest Securities--Market Discount and
Premium" in the Prospectus.
Prepayment Premiums and Yield Maintenance Charges actually collected will be
distributed to the holders of the Offered Certificates as described herein. It
is not entirely clear under the Code when the amount of a Prepayment Premium or
Yield Maintenance Charge should be taxed to the holder of an Offered
Certificate, but it is not expected, for federal income tax reporting purposes,
that Prepayment Premiums and Yield Maintenance Charges will be treated as giving
rise to any income to the holders of the Offered Certificates prior to the
Master Servicer's actual receipt of a Prepayment Premium or Yield Maintenance
Charge. It appears that Prepayment Premiums and Yield Maintenance Charges, if
any, will be treated as ordinary income rather than capital gain. However, that
is not entirely clear and Certificateholders should consult their own tax
advisors concerning the treatment of Prepayment Premiums and Yield Maintenance
Charges.
Because Additional Interest will arise on the ARD Loans only if (contrary to
the prepayment assumption) they do not prepay on their related Anticipated
Repayment Date, for federal income tax information reporting purposes it will be
assumed that no such Additional Interest will be paid. Consequently, Additional
Interest will not be reported as income in federal income tax information
reports sent to holders of the Sequential Pay Certificates until such Additional
Interest actually accrues. Similarly, no portion of such holders' purchase price
of their Certificates will be treated as allocable to their right to receive
possible distributions of Additional Interest. However, the Internal Revenue
Service may disagree with this treatment and assert that additional income
should be accrued with respect to projected possible payments of Additional
Interest in advance of its actual accrual, that additional original issue
discount income should be accrued with respect to the REMIC regular interests
related to one or more classes of Sequential Pay Certificates, or both. In
either event, to the extent that any such projected possible payments of
Additional Interest were not actually made or were smaller in amount than the
portion of the holder's purchase price allocated thereto, the holder of such a
Certificate would be allowed to claim a loss, but the timing and capital or
ordinary character of such loss are unclear.
CHARACTERIZATION OF INVESTMENTS IN OFFERED CERTIFICATES
In general, except to the extent noted below, the Offered Certificates will
be "real estate assets" within the meaning of Section 856(c)(5)(A) of the Code
in the same proportion that the assets of the Trust Fund would be so treated.
The Offered Certificates will generally only be considered assets described in
Section 7701(a)(19)(C) of the Code to the extent that the Mortgage Loans are
secured by residential property and, accordingly, investment in the Offered
Certificates may not be suitable for certain thrift institutions. Moreover, if
95% or more of the assets of the Trust Fund qualify for any of the foregoing
characterizations at all times during a calendar year, the Offered Certificates
will qualify for the corresponding status in their entirety for that calendar
year. Interest (including original issue discount) on the Offered Certificates
will be interest described in Section 856(c)(3)(B) of the Code to the extent
that such
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<PAGE>
Certificates are treated as "real estate assets" within the meaning of Section
856(c)(5)(A) of the Code. In addition, the Offered Certificates will be
"qualified mortgages" within the meaning of Section 860G(a)(3) of the Code. The
determination as to the percentage of the Trust Fund that constitutes assets
described in the foregoing sections of the Code will be made with respect to
calendar quarter based on the average adjusted basis of each category of the
assets included in the Trust Fund during such calendar quarter.
However, the Trust Fund will include, in addition to the Mortgage Loans,
payments on Mortgage Loans held pending distribution on the Certificates,
certain amounts in reserve accounts and property acquired by foreclosure held
pending sale. It is unclear whether property acquired by foreclosure held
pending sale would be considered to be part of the Mortgage Loans, or whether
such assets (to the extent not invested in assets described in the foregoing
sections of the Code) otherwise would receive the same treatment as the Mortgage
Loans for purposes of all of the foregoing sections of the Code. In addition, to
the extent an Offered Certificate represents ownership of an interest in any
Mortgage Loan which is secured in part by the related borrower's interest in an
account containing a holdback of loan proceeds, a portion of such Certificate
may not represent ownership of assets described in Section 7701(a)(19)(C) of the
Code and "real estate assets" under Section 856(c)(5)(A) of the Code and the
interest thereon may not constitute "interest on obligations secured by
mortgages on real property" within the meaning of Section 856(c)(3)(B) of the
Code. The REMIC Regulations (as defined in the Prospectus) do provide, however,
that cash received from payments on Mortgage Loans held pending distribution are
considered part of the Mortgage Loans for purposes of Section 856(c)(5)(A) of
the Code.
See "Description of the Mortgage Pool" herein.
POSSIBLE TAXES ON INCOME FROM FORECLOSURE PROPERTY AND OTHER TAXES
In general, the Special Servicer will be obligated to operate and manage any
Mortgaged Property acquired as REO Property in a manner that (i) maintains its
status as "foreclosure property" under the REMIC Provisions and (ii) would, to
the extent commercially reasonable and consistent with the foregoing clause (i),
maximize the Trust Fund's net after-tax proceeds from such property. After the
Special Servicer reviews the operation of such property and consults with the
Trustee or other REMIC administrator to determine the Trust Fund's federal
income tax reporting position with respect to income it is anticipated that the
Trust Fund would derive from such property, the Special Servicer could determine
that it would not be commercially reasonable to manage and operate such property
in a manner that would avoid the imposition of a tax on "net income from
foreclosure property" within the meaning of the REMIC Regulations or a tax on
"prohibited transactions" under Section 860F of the Code (either such tax
referred to herein as an "REO Tax"). To the extent that income the Trust Fund
receives from an REO Property is subject to a tax on (i) "net income from
foreclosure property", such income would be subject to federal tax at the
highest marginal corporate tax rate (currently 35%) and (ii) "prohibited
transactions", such income would be subject to federal tax at a 100% rate. The
determination as to whether income from an REO Property would be subject to an
REO Tax will depend on the specific facts and circumstances relating to the
management and operation of each REO Property. Generally, income from an REO
Property that is directly operated by the Special Servicer would be apportioned
and classified as "service" or "non-service" income. The "service" portion of
such income could be subject to federal tax either at the highest marginal
corporate tax rate or at the 100% rate on "prohibited transactions", and the
"non-service" portion of such income could be subject to federal tax at the
highest marginal corporate tax rate or, although it appears unlikely, at the
100% rate applicable to "prohibited transactions". Any REO Tax imposed on the
Trust Fund's income from an REO Property would reduce the amount available for
distribution to Certificateholders. Certificateholders are advised to consult
their own tax advisors regarding the possible imposition of REO Taxes in
connection with the operation of commercial REO Properties by REMICs.
To the extent permitted by then applicable laws, any tax on "prohibited
transactions", tax on non-permitted contributions or tax on "net income from
foreclosure property" that may be imposed on REMIC I, REMIC II or REMIC III will
be borne by the Trustee, the Master Servicer or the Special
S-113
<PAGE>
Servicer, in any case out of its own funds, provided that such person has
sufficient assets to do so, and provided further that such tax arises out of a
breach of such person's obligations under the Pooling and Servicing Agreement.
Any such tax not borne by the Trustee, the Master Servicer or the Special
Servicer will be charged against the Trust Fund resulting in a reduction in
amounts available for distribution to the Certificateholders. See "Federal
Income Tax Considerations--Taxation of the REMIC--Prohibited Transactions and
Contributions Tax" in the Prospectus.
REPORTING AND OTHER ADMINISTRATIVE MATTERS
Reporting of interest income, including any original issue discount, if any,
with respect to Regular Interest Certificates is required annually, and may be
required more frequently under Treasury regulations. These information reports
generally are required to be sent to individual holders of Regular Interest
Certificates and the Internal Revenue Service; holders of Regular Interest
Certificates that are corporations, trusts, securities dealers and certain other
non-individuals will be provided interest and original issue discount income
information and the information set forth in the following paragraph upon
request in accordance with the requirements of the applicable regulations. The
information must be provided by the later of 30 days after the end of the
quarter for which the information was requested, or two weeks after the receipt
of the request. The REMIC must also comply with rules requiring a Regular
Interest Certificate issued with original issue discount to disclose on its face
the amount of original issue discount and the issue date, and requiring such
information to be reported to the Internal Revenue Service.
As applicable, the Regular Interest Certificate information reports will
include a statement of the adjusted issue price of the REMIC Regular Certificate
at the beginning of each accrual period. In addition, the reports will include
information required by regulations with respect to computing the accrual of any
market discount. Because exact computation of the accrual of market discount on
a constant yield method would require information relating to the holder's
purchase price that the REMIC may not have, such regulations only require that
information pertaining to the appropriate proportionate method of accruing
market discount be provided.
The "tax matters person" for each REMIC will be the holder of Residual
Interest Certificates evidencing the largest percentage interest in the
applicable Class of Residual Interest Certificates. All holders of Residual
Interest Certificates will irrevocably designate the Trustee (or other REMIC
administrator appointed by the Trustee) as agent for such "tax matters person"
in all respects.
For further information regarding the federal income tax consequences of
investing in the Offered Certificates, see "Federal Income Tax Considerations"
in the Prospectus.
ERISA CONSIDERATIONS
A fiduciary of any employee benefit plan or other retirement plan or
arrangement, including individual retirement accounts and annuities, Keogh plans
and collective investment funds, separate accounts and general accounts in which
such plans, accounts or arrangements are invested, that is subject to the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
Section 4975 of the Code (each, a "Plan") should carefully review with its legal
advisors whether the purchase or holding of Offered Certificates could give rise
to a transaction that is prohibited or is not otherwise permitted either under
ERISA or Section 4975 of the Code or whether there exists any statutory or
administrative exemption applicable thereto.
The Underwriter received from the Department of Labor (the "DOL") an
individual prohibited transaction exemption, Prohibited Transaction Exemption
91-14 (the "Exemption"), which generally exempts from the application of the
prohibited transaction provisions of Sections 406(a) and (b) and 407(a) of
ERISA, and the excise taxes imposed on such prohibited transactions pursuant to
Sections 4975(a) and (b) of the Code, certain transactions, among others,
relating to the servicing and operation of mortgage pools and the purchase, sale
and holding of mortgage pass-through certificates underwritten or placed by an
Exemption-Favored Party, as hereinafter defined, provided that certain
conditions set forth in
S-114
<PAGE>
the Exemption are satisfied. For purposes of this discussion, the term
"Exemption-Favored Party" shall include (a) the Underwriter, (b) any person
directly or indirectly, through one or more intermediaries, controlling,
controlled by or under common control with the Underwriter, and (c) any member
of the underwriting syndicate or selling group of which the Underwriter or a
person described in (b) is a manager or co-manager with respect to the Offered
Certificates.
The Exemption sets forth six general conditions which must be satisfied for
a transaction involving the purchase, sale and holding of Offered Certificates
to be eligible for exemptive relief thereunder. First, the acquisition of
Offered Certificates by a Plan must be on terms that are at least as favorable
to the Plan as they would be in an arm's-length transaction with an unrelated
party. Second, the Exemption only applies to Offered Certificates evidencing
rights and interests not subordinated to the rights and interests evidenced by
the other Offered Certificates of the same series. Third, the Offered
Certificates at the time of acquisition by the Plan must be rated in one of the
three highest generic rating categories by DCR, Moody's, Standard & Poor's
Ratings Services A Division of the McGraw-Hill Companies, Inc. ("S&P") or
FitchIBCA Inc. ("Fitch"). Fourth, the Trustee cannot be an affiliate of any
other member of the "Restricted Group", which consists of any Exemption-Favored
Party, the Depositor, the Trustee, the Master Servicer, the Special Servicer,
any sub-servicer, the Mortgage Loan Seller, the provider of any credit support,
any mortgagor with respect to Mortgage Loans constituting more than 5% of the
aggregate unamortized principal balance of the Mortgage Loans as of the date of
initial issuance of the Offered Certificates and any affiliates of the foregoing
parties. Fifth, the sum of all payments made to and retained by the
Exemption-Favored Parties in connection with the sale of Certificates must
represent not more than reasonable compensation for underwriting the Offered
Certificates; the sum of all payments made to and retained by the Depositor
pursuant to the assignment of the Mortgage Loans to the Trust Fund must
represent not more than the fair market value of such obligations; and the sum
of all payments made to and retained by the Master Servicer, the Special
Servicer and any sub-servicer must represent not more than reasonable
compensation for such person's services under the Pooling and Servicing
Agreement and reimbursement of such person's reasonable expenses in connection
therewith. Sixth, the investing Plan must be an accredited investor as defined
in Rule 501(a)(1) of Regulation D of the Commission under the Securities Act.
Because the Senior Certificates are not subordinated to any other Class of
Offered Certificates, the second general condition set forth above is satisfied
with respect to such Certificates. It is a condition of their issuance that the
Senior Certificates be rated not lower than "Aaa" by Moody's and "AAA" by DCR.
Accordingly, upon initial issuance, the third general condition set forth above
will be satisfied with respect to the Senior Certificates. As of the Closing
Date, the fourth general condition set forth above will be satisfied with
respect to the Senior Certificates. A fiduciary of a Plan contemplating
purchasing a Senior Certificate in the secondary market must make its own
determination that, at the time of such purchase, such Certificate continues to
satisfy the second, third and fourth general conditions set forth above. In
addition, a fiduciary of a Plan contemplating the purchase of a Senior
Certificate, whether in the initial issuance of such Certificate or in the
secondary market, must make its own determination that the first, fifth and
sixth general conditions set forth above will be satisfied with respect to such
Certificate.
The Exemption also requires that the Trust Fund meet the following
requirements: (i) the Trust Fund must consist solely of assets of the type that
have been included in other investment pools; (ii) certificates in such other
investment pools must have been rated in one of the three highest generic
categories of DCR, Moody's, S&P or Fitch for at least one year prior to the
Plan's acquisition of Senior Certificates; and (iii) certificates in such other
investment pools must have been purchased by investors other than Plans for at
least one year prior to any Plan's acquisition of Senior Certificates.
If the general conditions of the Exemption are satisfied, the Exemption may
provide an exemption from the restrictions imposed by Sections 406(a) and 407(a)
of ERISA (as well as the excise taxes imposed by Sections 4975(a) and (b) of the
Code by reason of Sections 4975(c)(1)(A) through (D) of the Code) in connection
with (i) the direct or indirect sale, exchange or transfer of Senior
Certificates acquired by a Plan upon initial issuance from the Depositor or an
Exemption-Favored Party when the Depositor, the
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<PAGE>
Mortgage Loan Seller, the Master Servicer, the Special Servicer, the Trustee or
any sub-servicer, provider of credit support, Exemption-Favored Party or
mortgagor is a Party in Interest with respect to the investing Plan, (ii) the
direct or indirect acquisition or disposition in the secondary market of Senior
Certificates by a Plan and (iii) the continued holding of Senior Certificates by
a Plan. However, no exemption is provided from the restrictions of Sections
406(a)(1)(E), 406(a)(2) and 407 of ERISA for the acquisition or holding of a
Senior Certificate on behalf of an "Excluded Plan" (as defined in the following
sentence) by any person who has discretionary authority or renders investment
advice with respect to the assets of such Excluded Plan. For purposes hereof, an
Excluded Plan is a Plan sponsored by any member of the Restricted Group.
Moreover, if the general conditions of the Exemption, as well as certain
other conditions set forth in the Exemption, are satisfied, the Exemption may
also provide an exemption from the restrictions imposed by Sections 406(b)(1)
and (b)(2) of ERISA and the taxes imposed by Section 4975(c)(1)(E) of the Code
in connection with (i) the direct or indirect sale, exchange or transfer of
Senior Certificates in the initial issuance of Senior Certificates between the
Depositor or an Exemption-Favored Party and a Plan when the person who has
discretionary authority or renders investment advice with respect to the
investment of Plan assets in such Certificates is (a) a mortgagor with respect
to 5% or less of the fair market value of the Mortgage Loans or (b) an affiliate
of such a person, (ii) the direct or indirect acquisition or disposition in the
secondary market of Senior Certificates by a Plan and (iii) the holding of
Senior Certificates by a Plan.
Further, if the general conditions of the Exemption, as well as certain
other conditions set forth in the Exemption, are satisfied, the Exemption may
provide an exemption from the restrictions imposed by Sections 406(a), 406(b)
and 407(a) of ERISA, and the taxes imposed by Sections 4975(a) and (b) of the
Code by reason of Section 4975(c) of the Code for transactions in connection
with the servicing, management and operation of the Trust Fund.
Lastly, if the general conditions of the Exemption are satisfied, the
Exemption also may provide an exemption from the restrictions imposed by
Sections 406(a) and 407(a) of ERISA, and the taxes imposed by Section 4975(a)
and (b) of the Code by reason of Sections 4975(c)(1)(A) through (D) of the Code
if such restrictions are deemed to otherwise apply merely because a person is
deemed to be a Party in Interest (as defined in the Prospectus) with respect to
an investing Plan by virtue of providing services to the Plan (or by virtue of
having certain specified relationships to such a person) solely as a result of
the Plan's ownership of Senior Certificates.
Before purchasing a Senior Certificate, a fiduciary of a Plan should itself
confirm (i) that the Senior Certificates constitute "certificates" for purposes
of the Exemption and (ii) that the general and other conditions set forth in the
Exemption and the other requirements set forth in the Exemption would be
satisfied at the time of such purchase.
In addition to making its own determination as to the availability of the
exemptive relief provided in the Exemption, the Plan fiduciary considering an
investment in Senior Certificates should consider the availability of any other
prohibited transaction exemptions. See "ERISA Considerations" in the Prospectus.
There can be no assurance that any such class exemptions will apply with respect
to any particular Plan investment in Senior Certificates or, even if it were
deemed to apply, that any exemption would apply to all prohibited transactions
that may occur in connection with such investment. A purchaser of Senior
Certificates should be aware, however, that even if the conditions specified in
one or more exemptions are satisfied, the scope of relief provided by an
exemption may not cover all acts which might be construed as prohibited
transactions.
Because the characteristics of the Class B, Class C, Class D and Class E
Certificates do not meet the requirements of the Exemption, the purchase or
holding of such Certificates by a Plan may result in a prohibited transaction or
the imposition of excise taxes or civil penalties. AS A RESULT, NO TRANSFER OF A
CLASS B, CLASS C, CLASS D OR CLASS E CERTIFICATE OR ANY INTEREST THEREIN MAY BE
MADE TO A PLAN OR TO ANY PERSON WHO IS DIRECTLY OR INDIRECTLY PURCHASING SUCH
CERTIFICATE OR INTEREST THEREIN ON BEHALF OF, AS NAMED FIDUCIARY OF, AS TRUSTEE
OF, OR WITH ASSETS OF A PLAN UNLESS THE PURCHASE AND HOLDING OF SUCH CERTIFICATE
OR
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<PAGE>
INTEREST THEREIN IS EXEMPT FROM THE PROHIBITED TRANSACTION PROVISIONS OF SECTION
406 OF ERISA AND SECTION 4975 OF THE CODE UNDER SECTIONS I AND III OF PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60, WHICH PROVIDES AN EXEMPTION FROM THE
PROHIBITED TRANSACTION RULES FOR CERTAIN TRANSACTIONS INVOLVING AN INSURANCE
COMPANY GENERAL ACCOUNT. ANY PERSON TO WHOM A TRANSFER OF ANY SUCH CERTIFICATE
OR INTEREST THEREIN IS MADE WILL BE DEEMED TO HAVE REPRESENTED TO THE DEPOSITOR,
THE UNDERWRITER, THE MASTER SERVICER, THE SPECIAL SERVICER, THE TRUSTEE, ANY
SUB-SERVICER AND ANY MORTGAGOR WITH RESPECT TO THE MORTGAGE LOANS, THAT EITHER
(I) IT IS NOT A PLAN AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING SUCH
CERTIFICATE OR INTEREST THEREIN ON BEHALF OF, AS NAMED FIDUCIARY OF, AS TRUSTEE
OF, OR WITH ASSETS OF A PLAN OR (II) THE PURCHASE AND HOLDING OF SUCH
CERTIFICATE OR INTEREST THEREIN IS SO EXEMPT ON THE BASIS OF PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60.
Section III of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")
exempts from the application of the prohibited transaction provisions of
Sections 406(a), 406(b) and 407(a) of ERISA and Section 4975 of the Code
transactions in connection with the servicing, management and operation of a
trust (such as the Trust Fund) in which an insurance company general account has
an interest as a result of its acquisition of certificates issued by the trust,
provided that certain conditions are satisfied. If these conditions are met,
insurance company general accounts would be allowed to purchase classes of
Certificates (such as the Class B, Class C, Class D and Class E Certificates)
which do not meet the requirements of the Exemption solely because they (i) are
subordinated to other Classes of Certificates and/or (ii) have not received a
rating at the time of the acquisition in one of the three highest rating
categories from DCR, Moody's, S&P or Fitch. All other conditions of the
Exemption would have to be satisfied in order for PTCE 95-60 to be available.
Before purchasing Class B, Class C, Class D or Class E Certificates, an
insurance company general account seeking to rely on Section III of PTCE 95-60
should itself confirm that all applicable conditions and other requirements have
been satisfied.
LEGAL INVESTMENT
Upon issuance, the Class A, Class IO and Class B Certificates (the "SMMEA
Certificates") will constitute "mortgage related securities" for purposes of the
Secondary Mortgage Market Enhancement Act of 1984, as amended ("SMMEA").
However, in order to remain "mortgage related securities", the SMMEA
Certificates must, among other things, continue to be rated in one of the two
highest rating categories by at least one nationally recognized statistical
rating organization. In addition, the SMMEA Certificates will constitute
"mortgage related securities" in part because they evidence interest in notes
secured by first (or effectively first) mortgage liens on one or more parcels of
real estate upon which is located a residential, commercial or mixed residential
and commercial structure. No representation is made as to the effect on their
status as "mortgage related securities" if any of the mortgagors entitled to do
so elect to defease their respective Mortgage Loans. Such defeasance may not
occur within two years of the Closing Date.
THE CLASS B CERTIFICATES, THE CLASS C CERTIFICATES, THE CLASS D CERTIFICATES
AND THE CLASS E CERTIFICATES WILL NOT BE "MORTGAGE RELATED SECURITIES" FOR
PURPOSES OF SMMEA. As a result, the appropriate characterization of such Offered
Certificates under various legal investment restrictions, and thus the ability
of investors subject to these restrictions to purchase such Offered
Certificates, is subject to significant interpretive uncertainties.
The Depositor makes no representation as to the ability of particular
investors to purchase the Offered Certificates under applicable legal investment
or other restrictions. All institutions whose investment activities are subject
to legal investment laws and regulations, regulatory capital requirements or
review by regulatory authorities should consult with their own legal advisors in
determining whether and to what extent the Offered Certificates constitute legal
investments for them or are subject to investment, capital or other
restrictions.
All depository institutions considering an investment in the Offered
Certificates should review the Federal Financial Institutions Examination
Council's Supervisory Policy Statement on the Selection of
S-117
<PAGE>
Securities Dealers and Unsuitable Investment Practices (to the extent adopted by
their respective regulatory authorities), setting forth, in relevant part,
certain investment practices deemed to be unsuitable for an institution's
investment portfolio, as well as guidelines for investing in certain types of
mortgage related securities.
The foregoing does not take into consideration the applicability of
statutes, rules, regulations, orders, guidelines or agreements generally
governing investments made by a particular investor, including, but not limited
to, "prudent investor" provisions, percentage-of-assets limits and provisions
which may restrict or prohibit investment in securities which are not "interest
bearing" or "income paying".
There may be other restrictions on the ability of certain investors,
including depository institutions, either to purchase Offered Certificates or to
purchase Offered Certificates representing more than a specified percentage of
the investor's assets. Investors should consult their own legal advisors in
determining whether and to what extent the Offered Certificates constitute legal
investments for such investors.
See "Legal Investment" in the Prospectus.
METHOD OF DISTRIBUTION
Subject to the terms and conditions set forth in the underwriting agreement
(the "Underwriting Agreement") between the Depositor and the Underwriter, the
Depositor has agreed to sell to the Underwriter, and the Underwriter has agreed
to purchase, each class of Offered Certificates.
In the Underwriting Agreement, the Underwriter has agreed to purchase all of
the Offered Certificates if any are purchased. Proceeds to the Depositor from
the sale of the Offered Certificates, before deducting expenses payable by the
Depositor, will be approximately $1,633,187,050, which includes accrued
interest.
Distribution of the Offered Certificates will be made by the Underwriter
from time to time in negotiated transactions or otherwise at varying prices to
be determined at the time of sale. The Underwriter may effect such transactions
by selling the Offered Certificates to or through dealers, and the dealers may
receive compensation in the form of underwriting discounts, concessions or
commissions from the Underwriter. In connection with the purchase and sale of
the Offered Certificates, the Underwriter may be deemed to have received
compensation from the Depositor in the form of underwriting discounts. The
Underwriter and any dealers that participate with the Underwriter in the
distribution of the Offered Certificates may be deemed to be underwriters and
any profit on the resale of the Offered Certificates positioned by them may be
deemed to be underwriting discounts and commissions under the Securities Act.
The Underwriter expects to sell a portion of the Offered Certificates to or
through First Union Capital Markets Corp.
Purchasers of the Offered Certificates, including dealers, may, depending on
the facts and circumstances of such purchases, be deemed to be "underwriters"
within the meaning of the Securities Act in connection with reoffers and sales
by them of Offered Certificates. Certificateholders should consult with their
legal advisors in this regard prior to any such reoffer or sale.
The Depositor also has been advised by the Underwriter that it, through one
or more of its affiliates, currently intends to make a market in the Offered
Certificates; however, the Underwriter has no obligation to do so, any market
making may be discontinued at any time and there can be no assurance that an
active public market for the Offered Certificates will develop. See "Risk
Factors--Limited Liquidity" herein and in the Prospectus.
The Depositor has agreed to indemnify the Underwriter and each person, if
any, who controls the Underwriter within the meaning of Section 15 of the
Securities Act against, or to make contributions to the Underwriter and each
such controlling person with respect to, certain liabilities, including
liabilities under the Securities Act.
S-118
<PAGE>
LEGAL MATTERS
Certain legal matters will be passed upon for each of the Depositor and the
Underwriter by Sidley & Austin, New York, New York.
RATINGS
It is a condition of their issuance that each of the Class A-1, Class A-2
and Class A-3 Certificates be rated not lower than "Aaa" by Moody's and "AAA" by
DCR; that the Class IO Certificates be rated not lower than "Aaa" by Moody's and
"AAA" by DCR; that the Class B Certificates be rated not lower than "Aa2" by
Moody's and "AA" by DCR; that the Class C Certificates be rated not lower than
"A2 " by Moody's and "A" by DCR; that the Class D Certificates be rated not
lower than "Baa2" by Moody's and "BBB" by DCR; and that the Class E Certificates
be rated not lower than "Baa3" by Moody's and "BBB-" by DCR.
The ratings on the Offered Certificates address the likelihood of timely
receipt by holders thereof of all distributions of interest to which they are
entitled on each Distribution Date and, except in the case of the Class IO
Certificates, all distributions of principal to which they are entitled by the
Rated Final Distribution Date. The ratings take into consideration the credit
quality of the Mortgage Pool, structural and legal aspects associated with the
Offered Certificates, and the extent to which the payment stream from the
Mortgage Pool is adequate to make payments required under the Offered
Certificates. A security rating does not represent any assessment of (i) the
likelihood or frequency of principal prepayments or default interest on the
Mortgage Loans, (ii) the degree to which such prepayments might differ from
those originally anticipated or (iii) whether and to what extent Additional
Interest, Prepayment Premiums and Yield Maintenance Charges will be received.
Also, a security rating does not represent any assessment of the yield to
maturity that investors may experience or the possibility that the holders of
the Class IO Certificates might not fully recover their investment in the event
of rapid prepayments of the Mortgage Loans (including both voluntary and
involuntary prepayments). Therefore, such security rating addresses credit risk
and not the risk of prepayment. As described herein, the amounts payable with
respect to the Class IO Certificates consist only of interest. If the entire
Mortgage Pool were to prepay in the initial month, with the result that the
holders of the Class IO Certificates receive only a single month's interest and
thus suffer a nearly complete loss of their investment, all amounts "due" to
such Certificateholders will nevertheless have been paid, and such result is
consistent with the ratings received on the Class IO Certificates. The Class IO
Certificates' notional amount upon which interest is calculated is reduced by
the allocation of Realized Losses and Additional Trust Fund Expenses and
distributions of prepayments, whether voluntary or involuntary. The rating does
not address the timing or magnitude of reductions of the notional amounts of the
Class IO Components, but only the obligation to pay interest timely on the
notional amount of any Class IO Component as reduced from time to time.
Accordingly, the ratings of the Class IO Certificates should be evaluated
independently from similar ratings on other types of securities.
There can be no assurance that any rating agency not requested to rate the
Offered Certificates will not nonetheless issue a rating to any or all Classes
thereof and, if so, what such rating or ratings would be. A rating assigned to
any Class of Offered Certificates by a rating agency that has not been requested
by the Depositor to do so may be lower than the rating assigned thereto by
either of the Rating Agencies.
The ratings on the Offered Certificates should be evaluated independently
from similar ratings on other types of securities. A security rating is not a
recommendation to buy, sell or hold securities and may be subject to revision or
withdrawal at any time by the assigning rating agency. See "Risk
Factors--Limited Nature of Rating" in the Prospectus.
S-119
<PAGE>
INDEX OF PRINCIPAL DEFINITIONS
30/360 basis................................................................S-39
Accrued Certificate Interest................................................S-87
Actual/360 basis............................................................S-39
Additional Interest...................................................S-11, S-39
Additional Interest Rate..............................................S-11, S-39
Additional Trust Fund Expenses..............................................S-91
Administrative Cost Rate....................................................S-81
Anticipated Repayment Date............................................S-11, S-39
Appraisal Reduction Amount..................................................S-93
ARD Loan....................................................................S-11
ARD Loans...................................................................S-39
Assumed Final Distribution Date.............................................S-99
Assumed Scheduled Payment.............................................S-20, S-88
Assumed Settlement Date....................................................S-105
Available Distribution Amount.........................................S-16, S-82
Balloon Loans.........................................................S-10, S-40
Balloon Payment.............................................................S-10
CBE........................................................................S-105
Certificate Balance..............................................S-2, S-14, S-80
Certificate Owner......................................................S-8, S-79
Certificateholders..............................................S-13, S-82, S-97
Certificates......................................................S-1, S-7, S-79
Class.............................................................S-1, S-7, S-79
Class A Certificates...................................................S-7, S-79
Class IO Component....................................................S-14, S-80
Class IO Components..........................................................S-2
Closing Date................................................................S-57
Collection Account..........................................................S-81
Collection Period...........................................................S-81
Comparative Financial Status Report.........................................S-96
Compensating Interest Payment.........................................S-22, S-63
Condemnation Proceeds.......................................................S-67
Constant Prepayment Rate...................................................S-105
Controlling Class...........................................................S-69
Controlling Class Representative.......................................S-7, S-69
Corporate Trust Office.....................................................S-101
Corrected Mortgage Loan.....................................................S-62
CPR........................................................................S-105
Cross-Collateralized Mortgage Loans.........................................S-41
CSSA Loan File..............................................................S-95
CSSA Loan periodic update file..............................................S-97
CSSA Property File....................................................S-95, S-97
Custodial Account...........................................................S-66
Custodian...................................................................S-57
Cut-off Date.................................................................S-2
Cut-off Date Balance.........................................................S-9
DCR.........................................................................S-27
Default Interest............................................................S-64
Defeasance Collateral.................................................S-12, S-40
Defeasance Loans......................................................S-12, S-40
Definitive Offered Certificate...............................................S-8
Delinquent Loan Status Report...............................................S-96
Depositor....................................................................S-1
Determination Date..........................................................S-81
Discount Rate...............................................................S-89
Distributable Certificate Interest....................................S-19, S-86
Distribution Date......................................................S-2, S-82
Distribution Date Statement.................................................S-94
DOL..................................................................S-27, S-114
DTC....................................................................S-8, S-79
DCR.........................................................................S-27
Due-on-Encumbrance..........................................................S-41
Due-on-Sale.................................................................S-41
Eligible Account............................................................S-66
ERISA................................................................S-26, S-114
Events of Default...........................................................S-77
Excluded Class..............................................................S-89
Excluded Plan..............................................................S-116
Exemption..................................................................S-114
Exemption-Favored Party....................................................S-115
Final Recovery Determination................................................S-94
First Principal Payment Date...............................................S-105
Fitch......................................................................S-115
Form 8-K....................................................................S-60
GMACCM.................................................................S-7, S-62
Historical Loan Modification Report.........................................S-96
Historical Loss Estimate Report.............................................S-96
Initial Pool Balance....................................................S-2, S-9
Insurance Proceeds..........................................................S-66
Interest Accrual Period.....................................................S-87
IRS........................................................................S-112
Last Principal Payment Date................................................S-105
Liquidation Fee.............................................................S-64
Liquidation Proceeds........................................................S-67
Loan Payoff Notification Report.............................................S-96
Lockbox Account.............................................................S-39
Lockout Period........................................................S-11, S-40
Majority Subordinate Certificateholder......................................S-70
Master Servicer..............................................................S-2
Master Servicing Fee........................................................S-63
Monthly Payments............................................................S-10
Moody's.....................................................................S-27
Mortgage....................................................................S-38
Mortgage File...............................................................S-57
Mortgage Loan Purchase Agreement............................................S-57
Mortgage Loans.........................................................S-1, S-88
Mortgage Note...............................................................S-38
Mortgage Pool................................................................S-1
Mortgage Rate.........................................................S-10, S-39
Mortgage Rates..............................................................S-10
Mortgaged Property.....................................................S-9, S-38
S-120
<PAGE>
Net Aggregate Prepayment
Interest Shortfall..........................................................S-22
Net Mortgage Rate.....................................................S-15, S-81
NOI Adjustment Worksheet....................................................S-97
Non-SMMEA Certificates......................................................S-28
Nonrecoverable Advance......................................................S-68
Occupancy Rate..............................................................S-45
Offered Certificates..............................................S-1, S-7, S-79
OID Regulations............................................................S-112
Operating Statement Analysis................................................S-97
P&I Advance...........................................................S-21, S-92
Participants...........................................................S-8, S-79
Permitted Investments.......................................................S-64
Phase I...............................................................S-42, S-94
Plan.................................................................S-26, S-114
Pooling and Servicing Agreement.......................................S-14, S-79
Prepayment Interest Excess............................................S-22, S-63
Prepayment Interest Shortfall.........................................S-22, S-63
Prepayment Premiums.........................................................S-88
Principal Distribution Amount.........................................S-19, S-87
Private Certificates...................................................S-7, S-79
PTCE 95-60.................................................................S-117
Purchase Price..............................................................S-57
Qualified Appraiser.........................................................S-93
Rated Final Distribution Date..........................................S-2, S-99
Rating Agencies.............................................................S-27
Realized Losses.......................................................S-14, S-90
Regular Interest Certificates..........................................S-7, S-79
Reimbursement Rate....................................................S-22, S-92
Related Proceeds............................................................S-64
REMIC...........................................................S-3, S-25, S-111
REMIC I.........................................................S-3, S-25, S-111
REMIC II........................................................S-3, S-25, S-111
REMIC III.......................................................S-3, S-25, S-111
Rental Property.............................................................S-43
REO Mortgage Loan.....................................................S-63, S-88
REO Property....................................................S-20, S-24, S-62
REO Status Report...........................................................S-96
REO Tax....................................................................S-113
Required Appraisal Date.....................................................S-93
Required Appraisal Loan.....................................................S-93
Required Defeasance Period.................................................S-104
Residual Interest Certificates...............................................S-7
Restricted Group...........................................................S-115
Revised Rate..........................................................S-11, S-39
S&P........................................................................S-115
Scheduled Payment.....................................................S-20, S-88
Senior Certificates...................................................S-23, S-89
Servicing Advances..........................................................S-64
Servicing Fees..............................................................S-63
Servicing Standard..........................................................S-61
SMMEA......................................................................S-117
SMMEA Certificates.........................................................S-117
Special Servicer.............................................................S-2
Specially Serviced Mortgage Loan............................................S-61
Stated Principal Balance..............................................S-15, S-81
Subordinate Certificates..............................................S-23, S-89
Trust Fund.......................................................S-1, S-14, S-79
Trustee......................................................................S-2
Trustee Fee Rate...........................................................S-101
Underwriter..................................................................S-1
Voting Rights..............................................................S-100
Watch List Report...........................................................S-96
Weighted Average Net Mortgage
Rate..................................................................S-15, S-81
Workout Fee.................................................................S-64
Yield Maintenance Charges...................................................S-88
S-121
<PAGE>
LB Commercial Mortgage Trust 1998-C1 Annex A
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Zip
No. Property Name Address City State Code
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 The Eastpoint Mall North Pointe Blvd. & Eastern Ave. Baltimore MD 21224
2 Ohio Valley Plaza I-70 And Mall Road St. Clairsville OH 43950
3 Blair Mill Village East Apt. 3855 Blair Mill Rd Horsham PA 19044
5 Stewart Plaza 650 Stewart Avenue Garden City NY 11530
- - ------------------------------------------------------------------------------------------------------------------------------------
6 Northbrook Hilton Hotel 2855 North Milwaukee Avenue Northbrook IL 60062
7 Murrieta Town Center Murrieta Hot Springs Road Murrieta CA 92563
8 Ramada Plaza Hotel Gateway 7470 Irlo Bronson Highway Kissimmee FL 34747
9 Tacoma Place Shopping Center 1091 72nd Street Tacoma WA 98408
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10 Huebner Oaks Commons I & II (Roll-up) NQH10 and Huebner Oaks San Antonio TX 78230
10a Huebner Oaks Commons I
10b Huebner Oaks Commons II
11 The Commons Shopping Center A NWC Germantown Parkway & IH-40 Memphis TN 38133
- - ------------------------------------------------------------------------------------------------------------------------------------
12 70 East Sunrise Highway 70 East Sunrise Highway Valley Stream NY 11580
13 Lakeview Apartments 590 Lower Landing Road Blackwood NJ 08012
14 One and Three Long Wharf Drive One and Three Long Wharf Drive New Haven CT 06511
15 Embassy Suites 110 West 600 South Salt Lake City UT 84101
16 Benjamin Plaza Shopping Center 8944 Hillcrest Road Kansas City MO 64132
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17 Bradley Industrial Park West Side Route 303 Blauvelt NY 10913
18 Fort Lee Hilton Hotel 2117 Route 4 Eastbound Fort Lee NJ 07024
19 Tilghman Square 4650 Broadway South Whitehall PA 18052
20 Oasis Trails Apt. Complex 4200 S. Valley View Boulevard Las Vegas NV 89115
22 Covered Bridges of Carol Stream 637 Burns Street Carol Stream IL 60188
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23 Oasis Terrace Apt. 3975 N. Nellis Boulevard Las Vegas NV 89115
24 Rio Vista Shopping Center 8310-8740 Rio San Diego Drive San Diego CA 92108
25 One 2nd St, 8 & 10 State St,
205 Wildwood Ave (Roll-up) Various Various MA Various
25a One Second Street One Second Street Peabody MA 01960
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25b 8 State Street 8 State Street Woburn MA 01801
25c 10 State Street 10 State Street Woburn MA 01801
25d 205 Wildwood Avenue 205 Wildwood Avenue Woburn MA 01801
26 Copper Palms Apartments 1150 North Buffalo Drive Las Vegas NV 89128
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27 Tri-City Center 891-900 East Harmon Place San Bernadino CA 92408
28 Lakeside Centre 8122-8238 Glades Road Boca Raton FL 33434
29 Chastain Portfolio (Roll-up) Various Various GA Various
29a Chastain Village Apartments 1901 Old Concord Road Smyma GA 30080
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29b Chastain Woods Apartments 2929 Landrum Dr. Atlanta GA 30311
29c The Chastain Crossing Apartments 2601 Roosevelt Highway College Park GA 30337
29d Chastain Westcove 5271 West Fayetteville Road College Park GA 30349
29e The Chastain Townhomes 2500 Pleasant Hill Road College Park GA 30349
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30 Parkview Plaza 886 Plaza Boulevard Lancaster PA 17601
31 Eastland Place Shopping Center Green River Road Evansville IN 47115
32 Crystal Inn 230 West 500 South Salt Lake City UT 84101
33 Oasis Orchid Apt. Complex 2700 N. Rainbow Boulevard Las Vegas NV 89108
34 Parkway Plaza Shopping Center Vestal Parkway East Vestal NY 13850
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35 Perimeter Station Shopping Center SEC Perimeter Ctr. W. & Perimeter Ctr. Pky. Atlanta GA 30346
36 TJ Maxx Plaza 440 Middlesex Road Tyngsborough MA 01879
37 Dauphin Plaza Shopping Center NWC Union Deposit Rd. & Victoria Ave. Susquehanna Township PA 17110
38 Shops at Blue Bell 1750 DeKalb Pike Blue Bell PA 19422
39 Carrefour at Kirby Woods 6685 Poplar Avenue Germantown TN 38138
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40 Imperial Palms Apartments 200 Keene Road Largo FL 33771
41 Mitchell Plaza 5750 Old Orchard Road Skokie IL 60077
42 Garrett Square Apartments 4216 and 4230 Garrett Road Durham NC 27707
43 The Sony Music Building 605 Lincoln Road Miami FL 33139
44 S.S. Pierce Building 1330 Beacon Street Brookline MA 02146
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45 Northcourt Commons 634 to 784 Highway 10 Blaine MN 55434
46 Comdisco 5851 Westside Avenue North Bergen NJ 07647
47 The Oak Run Apartments 5801 Preston Oaks Dallas TX 75240
48 Hampton Inn - Englewood & Dayton (Roll-up) Various Various OH Various
48a Hampton Inn - Dayton 8099 Old Yankee Street Dayton OH 45458
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48b Hampton Inn - Englewood 20 Rockridge Road Englewood OH 45322
49 Central Place Phase I & II (Roll-up) 336-340 E. Baseline & 7227 South Central Av Phoenix AZ 85040
49a Central Place - Phase II 336-340 East Baseline Road Phoenix AZ 85040
49b Central Place - Phase I 7227 South Central Avenue Phoenix AZ 85040
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50 Delray Crossings Shopping Center 1040-1350 Linton Blvd. Delray Beach FL 33444
51 Silver Pines 801 North Loara Street Anaheim CA 92801
52 Sycamore Square (Phases I & II) 3308 Bragg Boulevard Fayetteville NC 28303
53 One Century Tower 265 Church Street New Haven CT 06510
- - ------------------------------------------------------------------------------------------------------------------------------------
54 Flamingo Bay Club Apartments 5625 West Flamingo Road Las Vegas NV 89103
55 University Business Center 1040-1194 University Avenue Rochester NY 14607
56 Whitehall Boca Raton 7300 Del Prado Circle South Boca Raton FL 33433
57 Shadowridge Meadows Apartments 1515 South Melrose Drive Vista CA 92083
58 Coral Springs Financial Plaza 3300 University Drive Coral Springs FL 33071
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59 Newark Shopping Center 230 East Main Street Newark DE 19711
60 103-00 Foster Ave. 103-00 Foster Avenue Brooklyn NY 11236
61 Mercado at Scottsdale Ranch SEC of Mt. View Rd & Via Linda Way Scottsdale AZ 85258
62 Nicholson Research Center 5510-5516 Nicholson Lane Kensington MD 20895
63 The Plaza Rios Shopping Center 8602-8698 Skillman Street Dallas TX 75243
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64 WWDC Industrial Park Brookville Rd., Manard Dr., and Pittman Dr. Silver Spring MD 20910
65 Faircrest Apartments 10250 Beach Boulevard Stanton CA 90680
66 Garden Walk Apartments 934 Garden Walk Blvd. Atlanta GA 30348
67 Shepherd Plaza Shopping Center 2100 Richmond Avenue Houston TX 77098
68 Players Club Apartments 1526 Charles Boulevard Greenville NC 27858
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69 Ralph's Supermarket 4311 Lincoln Blvd. Marina Del Rey CA 90292
70 41 State Street 41 State Street Albany NY 12207
71 Laguna Village Shopping Center Southeast Corner of Ray & Kyrene Roads Chandler AZ 85224
72 Hoover Commons Shopping Center 1615 New Montgomery Highway Hoover AL 35216
73 Ashley Woods Apartments 2300 Walden Glen Circle Cincinnati OH 45231
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74 Greenbriar South Shopping Center SWC Greenbriar Parkway & Volvo Parkway Chesapeake VA 23320
75 Springs of Napa 3460 Villa Lane Napa CA 94558
76 Woodtrail Apartments 9001 Wurzbach Road San Antonio TX 78240
77 The Park Pineway Shopping Center East Side of Hwy. 260 at Pineway Plaza Dr. Show Low AZ 85901
78 Stoneridge Apartment Project 3800 Southwest 34th Street Gainesville FL 32608
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79 The Shoppes at Fort Wayne NEC of Coldwater Rd & Noble Drive Fort Wayne IN 46804
80 Fred Meyer Superstore 6850 Lombard Street Portland OR 97203
81 Uptown Collection Shopping Center 5365-5395 Westheimer Road Houston TX 77056
82 BJ's Wholesale Club Building 10425 Marlin Road Culter Ridge FL 33157
83 Park Inn International 11410 Rockville Pike Rockville MD 20852
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84 Harte Haven Shopping Center South Side of State Highway 37 Massena NY 13662
85 Northgate Shopping Center 500 U.S. Highway 77 Waxahachie TX 75165
86 Parkwood Square Shopping Center 3000-3220 Custer Road Plano TX 75075
87 Gateway Plaza Shopping Center 1000-1080 South Sable Boulevard Aurora CO 80012
88 The Paragon Building 33325 8th Avenue South Federal Way WA 98003
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89 Jefferson Square Shopping Center Olive Street at 28th Street Pine Bluff AR 71603
90 11000 & 13000 Midlantic Drive 11000 & 13000 Midlantic Drive Mt. Laurel NJ 08054
91 Clearwater Village Shopping Center 4619-4733 East 82nd Street Indianapolis IN 46250
92 Woodbrook Apartments 2529 Woodbrook Lane Monroe NC 28110
93 90 State Street 90 State Street Albany NY 12207
- - ------------------------------------------------------------------------------------------------------------------------------------
94 Ford Centre 420 North Fifth Street Minneapolis MN 55401
95 Northwood Plaza 2900 West Anderson Lane Austin TX 78757
96 Dogwood Station Shopping Center Rolling & Dogwood Roads Cantonsville MD 21244
97 Los Mares Theater Plaza 641 Camino De Los Mares San Clemente CA 92672
98 Clearwater Shoppes Shopping Center 3841-3981 East 82nd Street Indianapolis IN 46250
- - ------------------------------------------------------------------------------------------------------------------------------------
99 Lindenwood Shopping Center 85-17 153rd Avenue Howard Beach NY 11414
100 Westvale Plaza 2102 West Genesee Street Syracuse NY 13219
101 Valley Ridge Corporate Center 4800 S. 188th St. SeaTac WA 98188
102 Hoffmann Manor 274 West Broadway Long Beach NY 11561
103 Kendall Plaza NEC of East Cumberland Road and Marmont Dr. Bluefield WV 24701
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104 Roberts Field Shopping Center E/s MD Route 30 Hampstead MD 21074
105 Piedmont Corporate Center (Motorola) 9801 South 51st Street Phoenix AZ 85044
106 Towne Parc Apartments 2930 SW 23rd Terrace Gainesville FL 32608
107 Royalton on the Green 17300 - 17400 N.W. 68th Ave. Miami FL 33015
108 Westgate Plaza 3724-58 La Sierra Av & 11130-11170 Magnolia Riverside CA 92505
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109 Three Stamford Landing 46 Southfield Ave. Stamford CT 06902
110 The Woodlawn Commons Medical Center NWC of Johnson Ferry Road and Woodlawn Road Marietta GA 30068
111 South Seminole 975, 1075 & 1175 Florida Central Parkway Longwood FL 32750
112 Orscheln Home & Farm Stores (Roll Up) Various Various MO Various
- - ------------------------------------------------------------------------------------------------------------------------------------
112a 818 West College Street 818 West College Street Marshall MO 65340
112b 1720 Crete Drive 1720 Crete Drive Moberly MO 65270
112c 1722 Crete Drive 1722 Crete Drive Moberly MO 65270
112d 2405 South Main Street 2405 South Main Street Maryville MO 64468
112e 904 East South Street 904 East South Street Richmond MO 64085
- - ------------------------------------------------------------------------------------------------------------------------------------
112f Route 1 P.O. Box 66 Route 1 P.O. Box 66 Eldon MO 65026
112g 211 East Main Street 211 East Main Street Parsons KS 67357
112h 5326 Lake Avenue 5326 Lake Avenue St. Joseph MO 64504
113 The Lauderdale Tower Apartments 2900 NE 30th Street Fort Lauderdale FL 33306
- - ------------------------------------------------------------------------------------------------------------------------------------
114 Creekside Business Park 1625-1701 McCarthy Boulevard Milpitas CA 95035
115 500 & 855 Winding Brook Drive (Roll-up) 500 & 855 Winding Brook Drive Glastonbury CT 06033
115a 500 Winding Brook Drive 500 Winding Brook Drive Glastonbury CT 06033
115b 855 Winding Brook Drive 855 Winding Brook Drive Glastonbury CT 06033
- - ------------------------------------------------------------------------------------------------------------------------------------
116 Carriage Hills East Apartments 6080 Carriage Hill Drive E. Lansing MI 48823
117 Food For Less Grocery Store NEC Broadway & Ballantyne Street El Cajon CA 92021
118 Alma Park Center NWC of Alma School & Warner Roads Chandler AZ 85224
119 Oak Park Apartments 4505 Duval Street Austin TX 78751
- - ------------------------------------------------------------------------------------------------------------------------------------
120 Las Colinas 15800 Chase Hill Boulevard San Antonio TX 78256
121 River Oaks Apartments - Killeen, TX 101 Twin Creek Drive Killeen TX 76543
122 Twin Oaks Village Shopping Center Eastern Boulevard & Vaughn Road Montgomery AL 36117
123 Woodmont Plaza 6401-6451 McCart Avenue Ft. Worth TX 76133
124 Treasury Services Corporation Building 604 Arizona Avenue Santa Monica CA 90401
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125 Graymere Apartments 1955 Union Place Columbia TN 38401
126 Hart Street Medical Center 40 Hart Street New Britain CT 06052
127 1301 Guadalupe Street 1301 Guadalupe Street Laredo TX 78040
128 Technologies Applications, Inc. Missouri Research Park St. Charles MO 63304
129 Five Points Plaza 505-595 South Riverside Avenue Rialto CA 92376
- - ------------------------------------------------------------------------------------------------------------------------------------
130 195 Bear Hill Road 195 Bear Hill Road Waltham MA 02154
131 Hampton Inn Hotel 2700 South Perkins Road Memphis TN 38118
132 The Pender Mill Office Building 3930 Pender Drive Fairfax VA 22124
133 Centre II 3101 Bee Cave Road Rollingwood TX 78746
134 Plaza De Fiesta 2726 South Alma School Road Mesa AZ 85210
- - ------------------------------------------------------------------------------------------------------------------------------------
135 Crossroads Shopping Center 300 South M-291 Highway Liberty MO 64068
136 South Port Apartments 6326 S. 107th East Avenue Tulsa OK 74133
137 Extra Space Center IV, V & VI 105 & 601 S.Faulkenberg & 1755 W.Brandon Bl Brandon FL 33619
138 Two Stamford Landing 68 Southfield Avenue Stamford CT 06902
139 Metroplex Business Park 475 Metroplex Drive Nashville TN 37211
- - ------------------------------------------------------------------------------------------------------------------------------------
140 Atrium Northeast Office Building 115 Atrium Way Columbia SC 29223
141 The Cottages 10300 Harwin Drive Houston TX 77036
142 Sabal Pointe Plaza NWC Merritt Isnd Causeway & Sykes Creek Merritt Island FL 32953
143 Brookside Industrial Center 1775 Sherman Drive Indianapolis IN 46201
144 Playhouse Square 380 Washington Street Wellesley MA 02181
- - ------------------------------------------------------------------------------------------------------------------------------------
145 Kittle's Home Furnishings Plaza 5600 Britton Parkway Columbus OH 43216
146 Atrium Northwood Office Building 7301 Rivers Avenue North Charleston SC 29223
147 Food For Less Supermarket (Hempfield) Route 30 Hempfield PA 15601
148 Osborn Commons Apartments 1502 East Osborne Road Phoenix AZ 85014
149 One Dock Street 396 Pacific Street Stamford CT 06902
- - ------------------------------------------------------------------------------------------------------------------------------------
150 Columbia Station Apartments 13410-13458 NE Sandy Boulevard Portland OR 97230
151 Everett Auto Mall 406 Southeast Everett Mall Way Everett WA 98204
152 Coliseum Shoppes 506 East Coliseum Boulevard Fort Wayne IN 46825
153 Deerfield Run Apartments Northwest Side of India Hook Road Rock Hill SC 29732
154 Berkshire Center 5620-5754 North Academy Blvd. Colorado Springs CO 80918
- - ------------------------------------------------------------------------------------------------------------------------------------
155 Heritage Place Apartments 700 Westminster Drive Franklin TN 37064
156 K-Mart Plaza 3069-3099 Dixie Highway Edgewood KY 41018
157 4611-4811 Kimmel Drive 4611-4811 Kimmel Drive Davenport IA 52802
158 Flint's Crossing Shopping Center 1550 Opelika Road Auburn AL 36830
159 Shaker-Loudon Road Plaza 664 Loudon Road Colonie NY 12110
- - ------------------------------------------------------------------------------------------------------------------------------------
160 Food For Less Supermarket (Pine) 10688 Perry Highway Pine PA 15090
161 Hitachi Tech Center 3201 Premier Drive Irving TX 75063
162 Bay Harbour Apartments 2500 East James Road Baytown TX 77520
163 East Bridge Landing Annex 587-593 First Avenue @ East 34th Street New York NY 10016
164 Raymour & Flanigan Mall Ring Road Scranton PA 18508
- - ------------------------------------------------------------------------------------------------------------------------------------
165 20-24 Newbury Street 20-24 Newbury Street Boston MA 02116
166 Tates Creek South Shopping Center 4220 & 4240 Saron Drive Lexington KY 40515
167 Forest Lake II Apartments Brittany Drive North of Cashua Drive Florence SC 29501
168 446 Blake St 446 Blake Street New Haven CT 06510
- - ------------------------------------------------------------------------------------------------------------------------------------
169 The Pavillions and The Verandas (Roll-up) Various Tallahasse FL 32312
169a The Pavillions 1355-1410 Market St. Tallahasse FL 32312
169b The Verandas 1333 & 1335 Market Street Tallahasse FL 32312
170 Deerfield Apartments 2155 Deer Crest Lane Memphis TN 38134
- - ------------------------------------------------------------------------------------------------------------------------------------
171 Bay Ridge Apartments 3010 & 3020 Cowley Way San Diego CA 92117
172 River Oaks Apartments - Wetumpka, AL 200 River Oaks Drive Wetumpka AL 36092
173 Lawrence Commons 3371 Route 1 Lawrence NJ 08648
174 511 Eleventh Avenue South Office Building 511 Eleventh Avenue South Minneapolis MN 55415
175 Causeway Plaza SEQ of Eau Gallie Blvd. & S. Patrick Dr. Melbourne FL 32935
- - ------------------------------------------------------------------------------------------------------------------------------------
176 Richwood Shopping Center 2000 Buckingham Road Richardson TX 75042
177 Alderwood Target Plaza 18205 Alderwood Mall Boulevard Lynwood WA 98037
178 Cherokee North Shopping Center NWQ West 95th St. & Antioch Road Overland Park KS 66212
179 Stone Ridge Apartments 5100 Conser Street Overland Park KS 66202
180 Point West Apartments 2925 West Normandale Fort Worth TX 76116
- - ------------------------------------------------------------------------------------------------------------------------------------
181 Main Business Center 17800 S. Main Street Carson CA 90248
182 Lancers Square Retail Center 3198 West Parker Road Plano TX 75075
183 Cahokia Village Shopping Center 1038 Camp Jackson Road Cahokia IL 62206
184 Quarry West Apartments 560 and 606 S. 10th Ave & 801,811,&901 7th Waite Park MN 56303
185 Country Way Apartments 4153 Logangate Road Youngstown OH 44505
- - ------------------------------------------------------------------------------------------------------------------------------------
186 The Victorian Apartments 9400 Coventry Square Houston TX 77099
187 Picasso Tower 2800 Biscayne Blvd. Miami FL 33137
188 Alafaya Square SWC of East Colonial Dr. & Alafaya Trail Orlando FL 32817
189 Sedgwick Centre Office Building 400 Hardin Road Little Rock AR 72211
190 Highland Ridge Apartments 329-353 Schraffts Drive Waterbury CT 06705
- - ------------------------------------------------------------------------------------------------------------------------------------
191 Mobile One Mobile Home Park East side of Church St. (Route 1310) Fredericksburg VA 22408
192 Sand Creek Apartments 3801 Ashe Road Bakersfield CA 93309
193 Scotch Pines East Apartments 915 East Drake Road Fort Collins CO 80525
194 Oakcreek Apartments 6111 Vance Jackson Road San Antonio TX 78230
195 New Towne West Aptartments 3316 North 102nd Plaza Omaha NE 68134
- - ------------------------------------------------------------------------------------------------------------------------------------
196 Stone Hollow Apartments 2400 Stone Hollow Drive Brenham TX 77833
197 Holiday Inn Express 1943 Savannah Highway Charleston SC 29404
198 Village Square East Shopping Center 8960-8998 East Hampden Avenue Denver CO 80231
199 Willowstream North Garden Apartments South Side of NYS Rt. 31 Clay NY 13090
200 Duck Creek Shopping Center 5006 N. Jupiter Rd. Garland TX 75044
- - ------------------------------------------------------------------------------------------------------------------------------------
201 470 West Avenue 470 West Avenue Stamford CT 06901
202 River One Office Plaza 309 E. Osceola St. Stuart FL 34944
203 Lyell-Mt. Read Business Center 777 Mt. Read Boulevard Rochester NY 14606
204 Landmark Woods Apartments 1400 Cherokee Rd. Florence SC 29501
205 Mountain Vista Apartments 358 East Roeser Road Phoenix AZ 85040
- - ------------------------------------------------------------------------------------------------------------------------------------
206 Shoppers Fair Shopping Center 6800-6810 East P Street Lincoln NE 68510
207 Lafayette Place Apartments 9450 Woodfair Drive Houston TX 76705
208 America Plaza 1070 E. Indiantown Rd. Jupiter FL 33477
209 Valley View Hacienda Business Park II 5375 South Procyon Avenue Las Vegas NV 89118
210 Salem Village Center 4601 South Loop 289 Lubbock TX 79424
- - ------------------------------------------------------------------------------------------------------------------------------------
211 Granada/Turnberry Apartments 4003-4005 Red River & 910-920 E. 40th Sts. Austin TX 78751
212 The 14614 Falling Creek Office Building 14614 Falling Creek Drive Houston TX 77068
213 One Pavilion Avenue One Pavillion Avenue Riverside NJ 08075
214 Automotive Portfolio (Roll-up) Various Various GA Various
- - ------------------------------------------------------------------------------------------------------------------------------------
214a Automotive Portfolio (Snellville) 3120 US Highway 78 Snellville GA 32207
214b Automotive Portfolio (Marietta) 1775 Cobb Parkway Marietta GA 32207
214c Automotive Portfolio (College Park) 5471 Old National Highway College Park GA 30337
214d Automotive Portfolio (Norcross) 4842 Jimmy Carter Boulevard Norcross GA 32207
- - ------------------------------------------------------------------------------------------------------------------------------------
215 Mountain Springs Apartments 854 Sheppard Road Stone Mountain GA 30083
216 The I-Drive Center Shopping Center 5430-5490 International Drive Orlando FL 32819
217 9-11 Park Avenue 9-11 Park Avenue New York NY 10021
218 Tricom Executive Center 2001 West Sample Road Pompano Beach FL 33064
219 3550 Biscayne Boulevard 3550 Biscayne Blvd. Miami FL 33137
- - ------------------------------------------------------------------------------------------------------------------------------------
220 Jefferson Park Apartments (I) 1220 Missouri Court - Phase I Liberty MO 64068
221 Clinical Associates Building 750 Main Street Reisterstown MD 21136
222 Summit Business Park Route 52 Fishkill NY 12524
223 Wellington Square Shopping Center 950 Indian Trail Road Lilburn GA 30247
224 Shannon Plaza Apartments 2100 Heatherwood Lawrence KS 66047
- - ------------------------------------------------------------------------------------------------------------------------------------
225 Bay Island Apartments 6109 Bay Island Road Garland TX 75043
226 Academy Crossing Shopping Center 3200 Academy Avenue Portsmouth VA 23707
227 Coopersburg Shopping Center North Third Street (a.k.a. Rt. 309) Coopersburg PA 18036
228 1003 London Road 1003 London Road Colonie NY 12047
229 Rutgers Plaza Shopping Center 1680 Dunn Ave. Jacksonville FL 32218
- - ------------------------------------------------------------------------------------------------------------------------------------
230 Apollo Beach Marina Apartments North Side of Apollo Boulevard Apollo Beach FL 33572
231 Jefferson Park Apartments (II) 1220 Missouri Court - Phase II Liberty MO 64068
232 Bert Kouns Self-Storage 525 Bert Kouns Industrial Loop Shreveport LA 71106
233 Sunnyslope Terrace 5383 Sunnyslope Road Maple Heights OH 44137
234 Mountain View Villas Apartments 414 Mountain View Road Johnson City TN 37601
- - ------------------------------------------------------------------------------------------------------------------------------------
235 Power Road Medical Center 215 & 217 South Power Road Mesa AZ 85206
236 26 East Baseline Road NEC of Central Avenue & Baseline Road Phoenix AZ 85040
237 Country Club Arms Apartments 1775 Cedar Post Lane Rock Hill SC 29703
238 Sherman Street Apartments 1240, 1250, and 1260 Sherman Street Denver CO 80206
239 Greenbriar Square Shopping Center 1530 Clark Road Duncanville TX 75137
- - ------------------------------------------------------------------------------------------------------------------------------------
240 Woodberry Forest Apartments 914 South Oriole Circle Virginia Beach VA 23451
241 Metro Crest Apartments 1515 Metrocrest Drive Carrollton TX 75006
242 4490 Von Karman Ave. 4490 Von Karman Ave. Newport Beach CA 92660
243 Art Colony Apartments 1122 Crescent Avenue Atlanta GA 30309
244 N. 10th & Vine Street Building 819 North 10th Street Sacramento CA 95614
- - ------------------------------------------------------------------------------------------------------------------------------------
245 3 & 4 Corporate Plaza (Roll-up) 3 & 4 Corporate Plaza Newport Beach CA 92660
245a 3 Corporate Plaza 3 Corporate Plaza Newport Beach CA 92660
245b 4 Corporate Plaza 4 Corporate Plaza Newport Beach CA 92660
- - ------------------------------------------------------------------------------------------------------------------------------------
246 CVS - H&R Block Center 284-286 Winthrop St. Taunton MA 02780
247 The Crowne Building 1870 The Exchange Marietta GA 30339
248 23193 Sandalfoot Plaza Drive 23193 Sandalfoot Plaza Drive Boca Raton FL 33428
249 CVS - St. Andrews 1248 St. Andrews Rd. Columbia SC 29210
250 Fair Oaks Shopping Center 9901 Royal Lane Dallas TX 75231
- - ------------------------------------------------------------------------------------------------------------------------------------
251 Windrush Apartments 2447 Lockhill-Selma Road San Antonio TX 78230
252 Tutor Time Child Care Center 1401 NE Green Oaks Boulevard Arlington TX 76006
253 680 Bridgeport Avenue 680 Bridgeport Avenue Shelton CT 06484
254 NW 57th Ave. & NW 176th St. SWC of NW 57th Ave. & NW 176th St. Miami FL 33169
255 Warwick Apartments 2819 Las Vegas Trail Fort Worth TX 76116
- - ------------------------------------------------------------------------------------------------------------------------------------
256 Grove One Apartments 3052 S.W. 27th Avenue Coconut Grove (Miami) FL 33133
257 2410 West Temple Street 2410 West Temple Street Los Angeles CA 91010
258 NWC Northwest 183rd St. & US 441 NWC Northwest 183rd St. & US 441 Miami FL 33162
259 9575 Southern Boulevard 9575 Southern Boulevard Royal Palm Beach FL 33411
260 The Outlot Shoppes at Fort Wayne NEC of Coldwater Rd & Noble Drive Ft. Wayne IN 46804
- - ------------------------------------------------------------------------------------------------------------------------------------
261 Twin Oaks Village Office Park Eastern Boulevard & Vaughn Road Montgomery AL 36117
<CAPTION>
Cross % of Aggregate
Control Collateralized Original Cut-off Date Cut-off Date
No. Groups Balance ($) Balance ($) Balance
- - -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 62,500,000 62,467,513 3.62%
2 42,000,000 41,975,309 2.43%
3 33,200,000 33,180,421 1.92%
5 22,700,000 22,622,349 1.31%
- - -----------------------------------------------------------------------------------------------
6 20,400,000 20,360,654 1.18%
7 20,000,000 19,988,861 1.16%
8 20,000,000 19,962,785 1.16%
9 19,500,000 19,460,119 1.13%
- - -----------------------------------------------------------------------------------------------
10 Group B 19,252,000 19,227,633 1.11%
10a Group B 18,240,000 18,216,914
10b Group B 1,012,000 1,010,719
11 19,000,000 18,940,051 1.10%
- - -----------------------------------------------------------------------------------------------
12 18,500,000 18,471,844 1.07%
13 18,320,000 18,309,365 1.06%
14 Group C 18,300,000 18,268,365 1.06%
15 18,000,000 17,944,805 1.04%
16 17,800,000 17,767,252 1.03%
- - -----------------------------------------------------------------------------------------------
17 17,800,000 17,735,508 1.03%
18 16,500,000 16,451,099 0.95%
19 16,250,000 16,166,316 0.94%
20 16,100,000 16,086,751 0.93%
22 15,200,000 15,166,062 0.88%
- - -----------------------------------------------------------------------------------------------
23 14,825,000 14,812,800 0.86%
24 14,850,000 14,742,098 0.85%
25
Group D 14,560,000 14,552,151 0.84%
----------------------------------------
25a Group D 6,000,000 5,996,765
- - -----------------------------------------------------------------------------------------------
25b Group D 960,000 959,482
25c Group D 2,640,000 2,638,577
25d Group D 4,960,000 4,957,326
26 14,210,000 14,192,872 0.82%
- - -----------------------------------------------------------------------------------------------
27 14,100,000 14,092,298 0.82%
28 14,062,500 14,046,685 0.81%
29 Group E 13,730,000 13,698,851 0.79%
----------------------------------------
29a Group E 4,320,000 4,310,199
- - -----------------------------------------------------------------------------------------------
29b Group E 2,800,000 2,793,648
29c Group E 2,480,000 2,474,374
29d Group E 2,080,000 2,075,281
29e Group E 2,050,000 2,045,349
- - -----------------------------------------------------------------------------------------------
30 13,400,000 13,325,200 0.77%
31 13,000,000 12,992,477 0.75%
32 13,000,000 12,987,642 0.75%
33 12,865,000 12,854,413 0.74%
34 12,600,000 12,587,339 0.73%
- - -----------------------------------------------------------------------------------------------
35 12,600,000 12,533,296 0.73%
36 12,350,000 12,342,671 0.71%
37 12,300,000 12,278,857 0.71%
38 12,000,000 12,000,000 0.69%
39 12,000,000 11,993,317 0.69%
- - -----------------------------------------------------------------------------------------------
40 12,000,000 11,991,271 0.69%
41 12,000,000 11,986,634 0.69%
42 12,000,000 11,986,547 0.69%
43 11,500,000 11,488,384 0.66%
44 11,500,000 11,477,744 0.66%
- - -----------------------------------------------------------------------------------------------
45 11,440,000 11,433,232 0.66%
46 11,300,000 11,288,060 0.65%
47 10,600,000 10,567,341 0.61%
48 10,500,000 10,480,745 0.61%
----------------------------------------
48a
- - -----------------------------------------------------------------------------------------------
48b
49 Group F 10,400,000 10,389,298 0.60%
----------------------------------------
49a Group F 4,800,000 4,795,061
49b Group F 5,600,000 5,594,237
- - -----------------------------------------------------------------------------------------------
50 10,312,500 10,300,902 0.60%
51 10,150,000 10,144,219 0.59%
52 10,000,000 9,994,322 0.58%
53 10,000,000 9,978,054 0.58%
- - -----------------------------------------------------------------------------------------------
54 10,000,000 9,976,534 0.58%
55 10,000,000 9,938,303 0.58%
56 9,750,000 9,740,102 0.56%
57 9,750,000 9,732,178 0.56%
58 9,600,000 9,590,565 0.56%
- - -----------------------------------------------------------------------------------------------
59 9,500,000 9,483,391 0.55%
60 9,500,000 9,474,950 0.55%
61 9,400,000 9,394,577 0.54%
62 9,400,000 9,368,860 0.54%
63 9,200,000 9,166,844 0.53%
- - -----------------------------------------------------------------------------------------------
64 8,900,000 8,884,568 0.51%
65 8,915,000 8,860,022 0.51%
66 8,760,000 8,750,368 0.51%
67 8,750,000 8,723,040 0.50%
68 8,700,000 8,691,241 0.50%
- - -----------------------------------------------------------------------------------------------
69 8,600,000 8,595,164 0.50%
70 8,475,000 8,465,651 0.49%
71 8,100,000 8,076,727 0.47%
72 8,000,000 7,991,175 0.46%
73 8,000,000 7,987,580 0.46%
- - -----------------------------------------------------------------------------------------------
74 7,750,000 7,741,368 0.45%
75 7,500,000 7,481,807 0.43%
76 7,339,000 7,316,345 0.42%
77 7,200,000 7,196,157 0.42%
78 7,200,000 7,195,767 0.42%
- - -----------------------------------------------------------------------------------------------
79 7,110,000 7,102,758 0.41%
80 7,000,000 6,994,419 0.40%
81 7,000,000 6,992,378 0.40%
82 6,880,000 6,872,237 0.40%
83 6,800,000 6,788,108 0.39%
- - -----------------------------------------------------------------------------------------------
84 6,750,000 6,746,597 0.39%
85 6,793,117 6,742,800 0.39%
86 6,600,000 6,596,217 0.38%
87 6,600,000 6,569,962 0.38%
88 6,525,000 6,513,367 0.38%
- - -----------------------------------------------------------------------------------------------
89 6,500,000 6,481,655 0.38%
90 6,500,000 6,480,775 0.38%
91 6,400,000 6,393,258 0.37%
92 6,400,000 6,374,016 0.37%
93 6,350,000 6,308,373 0.37%
- - -----------------------------------------------------------------------------------------------
94 6,250,000 6,226,970 0.36%
95 6,200,000 6,168,738 0.36%
96 6,150,000 6,129,902 0.35%
97 6,150,000 6,133,279 0.35%
98 6,030,000 6,026,510 0.35%
- - -----------------------------------------------------------------------------------------------
99 6,000,000 6,000,000 0.35%
100 6,000,000 6,000,000 0.35%
101 6,000,000 5,996,495 0.35%
102 6,000,000 5,994,623 0.35%
103 6,000,000 5,993,427 0.35%
- - -----------------------------------------------------------------------------------------------
104 6,000,000 5,981,344 0.35%
105 5,900,000 5,887,502 0.34%
106 5,920,000 5,874,820 0.34%
107 5,800,000 5,789,311 0.34%
108 5,700,000 5,694,370 0.33%
- - -----------------------------------------------------------------------------------------------
109 5,625,000 5,607,617 0.32%
110 5,600,000 5,597,021 0.32%
111 5,600,000 5,590,537 0.32%
112 Group G 5,575,000 5,564,120 0.32%
- - -----------------------------------------------------------------------------------------------
112a Group G
112b Group G
112c Group G
112d Group G
112e Group G
- - -----------------------------------------------------------------------------------------------
112f Group G
112g Group G
112h Group G
113 5,564,188 5,521,723 0.32%
- - -----------------------------------------------------------------------------------------------
114 5,520,000 5,520,000 0.32%
115 Group H 5,475,000 5,459,050 0.32%
----------------------------------------
115a Group H 3,375,000 3,365,168
115b Group H 2,100,000 2,093,882
- - -----------------------------------------------------------------------------------------------
116 5,400,000 5,391,781 0.31%
117 5,400,000 5,386,513 0.31%
118 5,350,000 5,340,620 0.31%
119 5,275,000 5,269,369 0.30%
- - -----------------------------------------------------------------------------------------------
120 5,264,000 5,247,751 0.30%
121 5,200,000 5,190,411 0.30%
122 Group I 5,200,000 5,188,975 0.30%
123 5,135,000 5,132,112 0.30%
124 5,110,000 5,110,000 0.30%
- - -----------------------------------------------------------------------------------------------
125 5,100,000 5,087,754 0.29%
126 5,000,000 4,991,908 0.29%
127 5,000,000 4,984,576 0.29%
128 4,850,000 4,841,273 0.28%
129 4,700,000 4,691,456 0.27%
- - -----------------------------------------------------------------------------------------------
130 4,700,000 4,656,636 0.27%
131 4,650,000 4,625,654 0.27%
132 4,600,000 4,594,676 0.27%
133 4,500,000 4,494,874 0.26%
134 4,500,000 4,493,380 0.26%
- - -----------------------------------------------------------------------------------------------
135 4,500,000 4,493,366 0.26%
136 4,500,000 4,492,874 0.26%
137 4,500,000 4,492,222 0.26%
138 4,500,000 4,486,093 0.26%
139 4,450,000 4,445,234 0.26%
- - -----------------------------------------------------------------------------------------------
140 4,450,000 4,444,963 0.26%
141 4,400,000 4,396,506 0.25%
142 4,400,000 4,395,209 0.25%
143 4,375,000 4,370,869 0.25%
144 4,350,000 4,340,374 0.25%
- - -----------------------------------------------------------------------------------------------
145 4,325,000 4,322,560 0.25%
146 4,330,000 4,320,389 0.25%
147 4,300,000 4,297,787 0.25%
148 4,296,000 4,293,545 0.25%
149 4,300,000 4,286,712 0.25%
- - -----------------------------------------------------------------------------------------------
150 4,250,000 4,247,709 0.25%
151 4,200,000 4,197,691 0.24%
152 4,200,000 4,197,551 0.24%
153 4,200,000 4,195,185 0.24%
154 4,200,000 4,194,723 0.24%
- - -----------------------------------------------------------------------------------------------
155 4,160,000 4,150,011 0.24%
156 4,100,000 4,095,681 0.24%
157 4,080,000 4,075,713 0.24%
158 4,070,000 4,062,396 0.24%
159 4,050,000 4,042,523 0.23%
- - -----------------------------------------------------------------------------------------------
160 4,000,000 3,997,942 0.23%
161 4,000,000 3,997,736 0.23%
162 4,000,000 3,987,652 0.23%
163 3,895,471 3,889,118 0.23%
164 3,800,000 3,793,832 0.22%
- - -----------------------------------------------------------------------------------------------
165 3,750,000 3,743,949 0.22%
166 3,750,000 3,737,883 0.22%
167 3,700,000 3,695,758 0.21%
168 Group C 3,675,000 3,657,893 0.21%
- - -----------------------------------------------------------------------------------------------
169 3,600,000 3,598,066 0.21%
----------------------------------------
169a
169b
170 3,600,000 3,594,466 0.21%
- - -----------------------------------------------------------------------------------------------
171 3,600,000 3,593,163 0.21%
172 3,550,000 3,543,385 0.21%
173 3,500,000 3,496,985 0.20%
174 3,500,000 3,496,530 0.20%
175 3,425,000 3,418,757 0.20%
- - -----------------------------------------------------------------------------------------------
176 3,400,000 3,398,051 0.20%
177 3,375,000 3,360,026 0.19%
178 3,315,000 3,307,992 0.19%
179 3,300,000 3,294,712 0.19%
180 3,280,000 3,268,990 0.19%
- - -----------------------------------------------------------------------------------------------
181 3,200,000 3,188,880 0.18%
182 3,150,000 3,146,748 0.18%
183 3,135,000 3,132,309 0.18%
184 3,120,000 3,118,120 0.18%
185 3,100,000 3,094,365 0.18%
- - -----------------------------------------------------------------------------------------------
186 3,000,000 3,000,000 0.17%
187 3,000,000 2,995,019 0.17%
188 3,000,000 2,994,872 0.17%
189 3,000,000 2,989,401 0.17%
190 3,000,000 2,984,882 0.17%
- - -----------------------------------------------------------------------------------------------
191 2,900,000 2,900,000 0.17%
192 2,800,000 2,798,328 0.16%
193 2,800,000 2,795,696 0.16%
194 2,800,000 2,778,631 0.16%
195 2,750,000 2,741,584 0.16%
- - -----------------------------------------------------------------------------------------------
196 2,720,000 2,699,242 0.16%
197 2,700,000 2,696,562 0.16%
198 2,700,000 2,695,186 0.16%
199 2,700,000 2,693,726 0.16%
200 2,650,000 2,648,457 0.15%
- - -----------------------------------------------------------------------------------------------
201 2,650,000 2,641,811 0.15%
202 2,500,000 2,497,349 0.14%
203 2,500,000 2,496,227 0.14%
204 2,500,000 2,496,119 0.14%
205 2,500,000 2,494,695 0.14%
- - -----------------------------------------------------------------------------------------------
206 2,500,000 2,494,033 0.14%
207 2,500,000 2,474,258 0.14%
208 2,475,000 2,473,635 0.14%
209 2,400,000 2,400,000 0.14%
210 2,400,000 2,394,892 0.14%
- - -----------------------------------------------------------------------------------------------
211 2,350,000 2,347,450 0.14%
212 2,350,000 2,347,297 0.14%
213 2,350,000 2,341,262 0.14%
214 Group J 2,300,000 2,296,071 0.13%
- - -----------------------------------------------------------------------------------------------
214a Group J
214b Group J
214c Group J
214d Group J
- - -----------------------------------------------------------------------------------------------
215 2,300,000 2,294,796 0.13%
216 2,300,000 2,293,733 0.13%
217 2,250,000 2,248,317 0.13%
218 2,250,000 2,244,160 0.13%
219 2,200,000 2,198,361 0.13%
- - -----------------------------------------------------------------------------------------------
220 2,200,000 2,198,239 0.13%
221 2,190,000 2,182,056 0.13%
222 2,150,000 2,150,000 0.12%
223 2,150,000 2,145,871 0.12%
224 2,150,000 2,144,847 0.12%
- - -----------------------------------------------------------------------------------------------
225 2,125,000 2,125,000 0.12%
226 2,125,000 2,123,100 0.12%
227 2,120,000 2,115,837 0.12%
228 2,100,000 2,098,959 0.12%
229 2,100,000 2,098,883 0.12%
- - -----------------------------------------------------------------------------------------------
230 2,100,000 2,098,734 0.12%
231 2,040,000 2,038,367 0.12%
232 2,000,000 1,998,192 0.12%
233 2,000,000 1,997,751 0.12%
234 2,000,000 1,995,198 0.12%
- - -----------------------------------------------------------------------------------------------
235 2,000,000 1,978,512 0.11%
236 1,975,000 1,971,062 0.11%
237 1,950,000 1,946,629 0.11%
238 1,850,000 1,848,038 0.11%
239 1,825,000 1,823,967 0.11%
- - -----------------------------------------------------------------------------------------------
240 1,760,000 1,746,568 0.10%
241 1,750,000 1,745,020 0.10%
242 1,750,000 1,744,007 0.10%
243 1,744,000 1,740,873 0.10%
244 1,675,000 1,670,135 0.10%
- - -----------------------------------------------------------------------------------------------
245 Group K 1,630,000 1,625,150 0.09%
----------------------------------------
245a Group K 955,000 952,158
245b Group K 675,000 672,991
- - -----------------------------------------------------------------------------------------------
246 1,600,000 1,597,083 0.09%
247 1,550,000 1,548,702 0.09%
248 1,550,000 1,538,698 0.09%
249 1,460,000 1,455,349 0.08%
250 1,350,000 1,349,296 0.08%
- - -----------------------------------------------------------------------------------------------
251 1,300,000 1,293,409 0.07%
252 1,250,000 1,245,316 0.07%
253 1,125,000 1,121,523 0.06%
254 1,100,000 1,097,047 0.06%
255 1,070,000 1,066,697 0.06%
- - -----------------------------------------------------------------------------------------------
256 1,000,000 994,654 0.06%
257 960,000 958,972 0.06%
258 950,000 946,804 0.05%
259 850,000 847,718 0.05%
260 665,000 664,323 0.04%
- - -----------------------------------------------------------------------------------------------
261 Group I 615,000 613,738 0.04%
- - -----------------------------------------------------------------------------------------------
1,731,122,776 1,727,817,629 100.00%
<CAPTION>
Cumulative Interest Original Remaining
Control % of Initial Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Pool Balance Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 3.62% 7.5800 0.0933 Act/360 ARD 0 0
2 6.04% 7.2000 0.0933 Act/360 ARD 0 0
3 7.97% 7.1900 0.1533 Act/360 ARD 0 0
5 9.27% 8.2200 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
6 10.45% 7.3600 0.1533 Act/360 Balloon 0 0
7 11.61% 7.3700 0.1183 Act/360 ARD 0 0
8 12.77% 7.5200 0.1533 Act/360 Balloon 0 0
9 13.89% 7.9900 0.1683 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
10 15.00% 6.9700 0.0933 Act/360 ARD 0 0
10a
10b
11 16.10% 8.0400 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
12 17.17% 7.3900 0.0933 30/360 ARD 0 0
13 18.23% 7.2400 0.0933 Act/360 ARD 0 0
14 19.29% 7.6900 0.1433 Act/360 Balloon 0 0
15 20.33% 7.4300 0.1433 Act/360 Balloon 0 0
16 21.35% 7.5700 0.1683 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
17 22.38% 7.5000 0.1433 30/360 Fully Amortizing 0 0
18 23.33% 7.6000 0.1183 Act/360 Balloon 0 0
19 24.27% 8.9200 0.0933 30/360 Balloon 0 0
20 25.20% 6.9800 0.1183 30/360 Balloon 0 0
22 26.08% 7.7000 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
23 26.93% 6.9800 0.1183 30/360 Balloon 0 0
24 27.79% 9.0500 0.1683 30/360 Balloon 0 0
25 28.63% 7.4700 0.1433 Act/360 ARD 0 0
25a
- - ------------------------------------------------------------------------------------------------------------------------------------
25b
25c
25d
26 29.45% 7.1300 0.1133 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
27 30.27% 7.4300 0.1433 Act/360 Balloon 0 0
28 31.08% 7.3500 0.1533 Act/360 Balloon 0 0
29 31.87% 7.5500 0.0933 30/360 Fully Amortizing 0 0
29a
- - ------------------------------------------------------------------------------------------------------------------------------------
29b
29c
29d
29e
- - ------------------------------------------------------------------------------------------------------------------------------------
30 32.64% 8.5240 0.0933 30/360 Balloon 0 0
31 33.40% 7.2500 0.1433 Act/360 ARD 0 0
32 34.15% 7.4100 0.1433 Act/360 ARD 0 0
33 34.89% 6.9800 0.1183 30/360 Balloon 0 0
34 35.62% 7.6900 0.1433 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
35 36.34% 7.7400 0.0933 30/360 Fully Amortizing 0 0
36 37.06% 7.1700 0.1533 Act/360 ARD 0 0
37 37.77% 7.7100 0.0933 Act/360 Balloon 0 0
38 38.46% 7.6300 0.1433 30/360 Fully Amortizing 0 0
39 39.16% 7.3700 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
40 39.85% 7.6000 0.1683 30/360 Balloon 0 0
41 40.55% 7.3800 0.0933 Act/360 ARD 0 0
42 41.24% 7.3600 0.0933 Act/360 Balloon 0 0
43 41.90% 7.1350 0.0933 Act/360 ARD 0 0
44 42.57% 7.2800 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
45 43.23% 7.1800 0.1183 Act/360 ARD 0 0
46 43.88% 7.5410 0.0933 Act/360 ARD 0 0
47 44.50% 7.3600 0.0933 30/360 Balloon 0 0
48 45.10% 7.3750 0.1433 30/360 Fully Amortizing 0 0
48a
- - ------------------------------------------------------------------------------------------------------------------------------------
48b
49 45.70% 7.6200 0.1683 Act/360 Balloon 0 0
49a
49b
- - ------------------------------------------------------------------------------------------------------------------------------------
50 46.30% 7.3500 0.1533 Act/360 Balloon 0 0
51 46.89% 7.3000 0.1683 Act/360 ARD 0 0
52 47.47% 7.3100 0.1433 Act/360 ARD 0 0
53 48.04% 7.7580 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
54 48.62% 7.5300 0.0933 Act/360 Balloon 0 0
55 49.20% 8.0200 0.1433 Act/360 Balloon 0 0
56 49.76% 7.6600 0.0933 Act/360 Balloon 0 0
57 50.32% 7.4900 0.1683 Act/360 Balloon 0 0
58 50.88% 7.2600 0.1533 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
59 51.43% 7.6500 0.1533 Act/360 Balloon 0 0
60 51.97% 8.1200 0.0933 Act/360 Balloon 0 0
61 52.52% 7.2600 0.1683 Act/360 ARD 0 0
62 53.06% 8.3500 0.1433 Act/360 Balloon 0 0
63 53.59% 8.6410 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
64 54.11% 7.8300 0.1433 30/360 Fully Amortizing 0 0
65 54.62% 8.5700 0.0933 30/360 Balloon 0 0
66 55.12% 7.4200 0.0933 Act/360 Balloon 0 0
67 55.63% 8.1200 0.0933 Act/360 Balloon 0 0
68 56.13% 7.1500 0.0933 Act/360 Fully Amortizing 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
69 56.63% 7.3400 0.0933 Act/360 Balloon 0 0
70 57.12% 7.4100 0.1433 Act/360 Balloon 0 0
71 57.59% 8.3500 0.1683 Act/360 Balloon 0 0
72 58.05% 7.4100 0.1533 Act/360 ARD 0 0
73 58.51% 7.2900 0.0933 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
74 58.96% 7.3800 0.1533 Act/360 Balloon 0 0
75 59.39% 7.1300 0.1683 30/360 Balloon 0 0
76 59.82% 7.5500 0.0933 Act/360 Balloon 0 0
77 60.23% 7.5000 0.1683 Act/360 Balloon 0 0
78 60.65% 7.2000 0.1433 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
79 61.06% 7.6500 0.1533 Act/360 Balloon 0 0
80 61.47% 7.1400 0.0933 30/360 Balloon 0 0
81 61.87% 7.4500 0.0933 Act/360 Balloon 0 0
82 62.27% 7.3400 0.1683 Act/360 ARD 0 0
83 62.66% 7.7900 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
84 63.05% 7.6700 0.1433 Act/360 ARD 0 0
85 63.44% 8.1500 0.0933 30/360 Balloon 0 0
86 63.82% 7.2800 0.0933 Act/360 ARD 0 0
87 64.20% 8.9300 0.1683 30/360 Balloon 0 0
88 64.58% 7.5800 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
89 64.96% 7.8400 0.1683 Act/360 Balloon 0 0
90 65.33% 7.6100 0.0933 Act/360 Balloon 0 0
91 65.70% 7.5500 0.1533 Act/360 ARD 0 0
92 66.07% 8.2800 0.1733 30/360 Balloon 0 0
93 66.43% 8.8400 0.1683 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
94 66.80% 8.5200 0.1683 30/360 Balloon 0 0
95 67.15% 9.0230 0.0933 30/360 Balloon 0 0
96 67.51% 7.9200 0.1433 Act/360 Balloon 0 0
97 67.86% 8.0200 0.0933 Act/360 Balloon 0 0
98 68.21% 7.2500 0.1433 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
99 68.56% 7.4200 0.0933 Act/360 Balloon 0 0
100 68.91% 7.2800 0.0933 Act/360 Fully Amortizing 0 0
101 69.25% 7.2200 0.0933 Act/360 Balloon 0 0
102 69.60% 7.6700 0.1433 Act/360 Balloon 0 0
103 69.95% 7.7700 0.0933 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
104 70.29% 7.3600 0.1533 Act/360 Balloon 0 0
105 70.63% 7.7800 0.1683 30/360 Balloon 0 0
106 70.97% 8.0000 0.0933 30/360 Balloon 0 0
107 71.31% 7.4600 0.0933 Act/360 Balloon 0 0
108 71.64% 7.7400 0.1683 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
109 71.96% 8.1100 0.1433 Act/360 Balloon 0 0
110 72.29% 7.5100 0.1733 Act/360 Balloon 0 0
111 72.61% 7.7700 0.1533 Act/360 Balloon 0 0
112 72.93% 7.5300 0.1683 30/360 Fully Amortizing 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
112a
112b
112c
112d
112e
- - ------------------------------------------------------------------------------------------------------------------------------------
112f
112g
112h
113 73.25% 8.0000 0.0933 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
114 73.57% 7.0300 0.0933 Act/360 Interest-only then Amortizing 24 23
115 73.89% 8.3050 0.1433 Act/360 Balloon 0 0
115a
115b
- - ------------------------------------------------------------------------------------------------------------------------------------
116 74.20% 7.3900 0.0933 30/360 Balloon 0 0
117 74.51% 8.0700 0.1683 30/360 Balloon 0 0
118 74.82% 7.6400 0.1683 Act/360 Balloon 0 0
119 75.12% 7.5100 0.1733 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
120 75.43% 7.5500 0.0933 Act/360 Balloon 0 0
121 75.73% 7.5600 0.1733 Act/360 Fully Amortizing 0 0
122 76.03% 7.9700 0.1533 30/360 Balloon 0 0
123 76.33% 7.3400 0.0933 Act/360 ARD 0 0
124 76.62% 7.0300 0.0933 Act/360 Interest-only then Amortizing 24 23
- - ------------------------------------------------------------------------------------------------------------------------------------
125 76.92% 7.4500 0.0933 Act/360 Balloon 0 0
126 77.21% 7.9200 0.1433 Act/360 Balloon 0 0
127 77.49% 7.4000 0.0933 Act/360 Balloon 0 0
128 77.77% 7.5300 0.1683 30/360 Fully Amortizing 0 0
129 78.05% 7.5100 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
130 78.32% 8.1700 0.0933 Act/360 Balloon 0 0
131 78.58% 7.8300 0.1533 30/360 Fully Amortizing 0 0
132 78.85% 7.2600 0.0933 Act/360 Balloon 0 0
133 79.11% 7.3100 0.0933 Act/360 Balloon 0 0
134 79.37% 7.5600 0.1683 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
135 79.63% 7.5500 0.1683 30/360 Balloon 0 0
136 79.89% 7.1900 0.0933 30/360 Balloon 0 0
137 80.15% 7.8400 0.0933 Act/360 Balloon 0 0
138 80.41% 8.1100 0.1433 Act/360 Balloon 0 0
139 80.67% 7.5000 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
140 80.92% 7.3300 0.0933 Act/360 ARD 0 0
141 81.18% 7.1600 0.1683 30/360 ARD 0 0
142 81.43% 7.4500 0.0933 Act/360 Balloon 0 0
143 81.68% 7.4400 0.1433 Act/360 ARD 0 0
144 81.94% 7.7300 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
145 82.19% 7.3300 0.0933 Act/360 ARD 0 0
146 82.44% 7.7200 0.0933 Act/360 Balloon 0 0
147 82.69% 7.6100 0.0933 Act/360 ARD 0 0
148 82.93% 7.2900 0.0933 Act/360 Balloon 0 0
149 83.18% 8.1100 0.1433 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
150 83.43% 7.4700 0.0933 Act/360 Balloon 0 0
151 83.67% 7.4100 0.1433 Act/360 ARD 0 0
152 83.91% 7.2260 0.1433 Act/360 ARD 0 0
153 84.16% 7.2900 0.1533 Act/360 Balloon 0 0
154 84.40% 8.3400 0.1683 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
155 84.64% 7.4500 0.0933 Act/360 Balloon 0 0
156 84.88% 7.5500 0.0933 Act/360 ARD 0 0
157 85.11% 7.4400 0.1683 Act/360 ARD 0 0
158 85.35% 7.4100 0.0933 Act/360 Balloon 0 0
159 85.58% 7.3200 0.0933 30/360 Fully Amortizing 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
160 85.81% 7.6100 0.0933 Act/360 ARD 0 0
161 86.04% 7.3200 0.0933 Act/360 Balloon 0 0
162 86.27% 7.5500 0.0933 Act/360 Balloon 0 0
163 86.50% 7.9574 0.0933 Act/360 Balloon 0 0
164 86.72% 7.9100 0.1433 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
165 86.94% 7.9300 0.1433 Act/360 Balloon 0 0
166 87.15% 8.9800 0.0933 Act/360 Balloon 0 0
167 87.37% 7.2900 0.1533 Act/360 Balloon 0 0
168 87.58% 8.0400 0.1433 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
169 87.79% 7.4800 0.1433 Act/360 ARD 0 0
169a
169b
170 87.99% 7.3400 0.0933 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
171 88.20% 7.3500 0.0933 Act/360 Balloon 0 0
172 88.41% 7.4200 0.1733 Act/360 Balloon 0 0
173 88.61% 8.1200 0.0933 Act/360 Balloon 0 0
174 88.81% 7.2200 0.1683 Act/360 ARD 0 0
175 89.01% 7.5000 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
176 89.21% 7.2800 0.0933 Act/360 ARD 0 0
177 89.40% 7.7300 0.1683 30/360 Balloon 0 0
178 89.59% 7.7900 0.1683 30/360 Balloon 0 0
179 89.78% 7.1300 0.0933 30/360 Balloon 0 0
180 89.97% 8.2800 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
181 90.16% 7.8400 0.1683 30/360 Fully Amortizing 0 0
182 90.34% 7.6100 0.0933 Act/360 ARD 0 0
183 90.52% 8.1300 0.1683 Act/360 ARD 0 0
184 90.70% 7.1200 0.1683 Act/360 ARD 0 0
185 90.88% 7.5100 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
186 91.05% 6.9800 0.0933 Act/360 ARD 0 0
187 91.23% 8.0100 0.0933 Act/360 Balloon 0 0
188 91.40% 7.7300 0.1533 Act/360 Balloon 0 0
189 91.57% 7.7050 0.1683 30/360 Fully Amortizing 0 0
190 91.75% 8.4300 0.1433 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
191 91.91% 7.1100 0.1533 Act/360 ARD 0 0
192 92.08% 7.1500 0.1683 Act/360 ARD 0 0
193 92.24% 7.3400 0.0933 30/360 Balloon 0 0
194 92.40% 8.0000 0.0933 30/360 Balloon 0 0
195 92.56% 7.4400 0.1683 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
196 92.71% 8.0000 0.0933 30/360 Balloon 0 0
197 92.87% 7.9700 0.0933 30/360 Fully Amortizing 0 0
198 93.03% 7.5800 0.1683 Act/360 Balloon 0 0
199 93.18% 7.4000 0.0933 30/360 Fully Amortizing 0 0
200 93.33% 7.2300 0.0933 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
201 93.49% 8.1100 0.1433 Act/360 Balloon 0 0
202 93.63% 7.5300 0.0933 Act/360 Balloon 0 0
203 93.78% 7.8600 0.1433 Act/360 ARD 0 0
204 93.92% 7.2900 0.0933 30/360 Balloon 0 0
205 94.07% 7.8700 0.1733 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
206 94.21% 8.4600 0.0933 Act/360 Balloon 0 0
207 94.35% 8.4400 0.1433 Act/360 Balloon 0 0
208 94.50% 7.4000 0.1533 Act/360 ARD 0 0
209 94.64% 7.0900 0.1433 Act/360 ARD 0 0
210 94.77% 7.8600 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
211 94.91% 7.4600 0.1733 Act/360 Balloon 0 0
212 95.05% 7.2800 0.0933 Act/360 Balloon 0 0
213 95.18% 7.8180 0.0933 Act/360 Balloon 0 0
214 95.31% 7.8900 0.1533 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
214a
214b
214c
214d
- - ------------------------------------------------------------------------------------------------------------------------------------
215 95.45% 7.4500 0.1733 30/360 Balloon 0 0
216 95.58% 8.0100 0.1433 Act/360 Balloon 0 0
217 95.71% 7.4600 0.0933 30/360 ARD 0 0
218 95.84% 8.2400 0.1433 Act/360 Balloon 0 0
219 95.97% 7.5200 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
220 96.09% 7.1200 0.1683 30/360 Balloon 0 0
221 96.22% 7.4900 0.0933 30/360 Fully Amortizing 0 0
222 96.34% 7.6400 0.1433 Act/360 Balloon 0 0
223 96.47% 8.1900 0.0933 Act/360 Balloon 0 0
224 96.59% 7.1600 0.1683 30/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
225 96.72% 6.9800 0.0933 Act/360 ARD 0 0
226 96.84% 8.0200 0.1433 Act/360 Balloon 0 0
227 96.96% 8.1200 0.1433 Act/360 Balloon 0 0
228 97.08% 7.7200 0.1533 Act/360 ARD 0 0
229 97.20% 7.5100 0.0933 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
230 97.33% 7.1200 0.0933 Act/360 ARD 0 0
231 97.44% 7.1200 0.1683 30/360 Balloon 0 0
232 97.56% 7.9900 0.1433 Act/360 Balloon 0 0
233 97.67% 7.3500 0.1683 Act/360 Balloon 0 0
234 97.79% 7.4500 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
235 97.90% 9.1700 0.1433 Act/360 Fully Amortizing 0 0
236 98.02% 8.0800 0.1683 30/360 Balloon 0 0
237 98.13% 7.6900 0.1533 Act/360 Balloon 0 0
238 98.24% 7.5300 0.1683 Act/360 Balloon 0 0
239 98.34% 7.3200 0.0933 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
240 98.45% 8.0000 0.0933 30/360 Balloon 0 0
241 98.55% 7.8000 0.0933 Act/360 Balloon 0 0
242 98.65% 8.2000 0.0933 Act/360 Balloon 0 0
243 98.75% 7.5600 0.1733 Act/360 Balloon 0 0
244 98.84% 7.7000 0.1683 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
245 98.94% 8.4000 0.0933 30/360 Fully Amortizing 0 0
245a
245b
- - ------------------------------------------------------------------------------------------------------------------------------------
246 99.03% 7.5000 0.0933 Act/360 Balloon 0 0
247 99.12% 7.9600 0.0933 Act/360 ARD 0 0
248 99.21% 8.0800 0.0933 Act/360 Balloon 0 0
249 99.29% 7.5400 0.0933 Act/360 Fully Amortizing 0 0
250 99.37% 7.5700 0.0933 Act/360 ARD 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
251 99.45% 8.4000 0.0933 30/360 Balloon 0 0
252 99.52% 8.0500 0.0933 30/360 Fully Amortizing 0 0
253 99.58% 8.1100 0.1433 Act/360 Balloon 0 0
254 99.65% 8.0800 0.0933 Act/360 Balloon 0 0
255 99.71% 7.5500 0.0933 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
256 99.77% 7.6600 0.0933 30/360 Fully Amortizing 0 0
257 99.82% 7.5000 0.1683 Act/360 Balloon 0 0
258 99.88% 8.2800 0.0933 Act/360 Balloon 0 0
259 99.93% 8.0800 0.0933 Act/360 Balloon 0 0
260 99.96% 7.6500 0.1533 Act/360 Balloon 0 0
- - ------------------------------------------------------------------------------------------------------------------------------------
261 100.00% 8.1700 0.1533 30/360 Balloon 0 0
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($)
- - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 60 59 360 359 12/9/97 1/1/03 59,583,677
2 180 179 360 359 11/20/97 1/1/13 32,410,801
3 120 119 360 359 12/11/97 1/1/08 29,089,679
5 120 113 360 353 6/10/97 7/1/07 20,408,753
- - --------------------------------------------------------------------------------------------------------------------------------
6 120 118 300 298 11/26/97 12/1/07 16,496,955
7 120 119 360 359 12/11/97 1/1/08 17,605,015
8 120 118 300 298 11/21/97 12/1/07 16,251,492
9 120 116 360 356 9/16/97 10/1/07 17,432,691
- - --------------------------------------------------------------------------------------------------------------------------------
10 84 82 360 358 11/25/97 12/1/04 17,709,649
10a 16,778,724
10b 930,924
11 144 138 360 354 7/3/97 8/1/09 16,376,835
- - --------------------------------------------------------------------------------------------------------------------------------
12 120 118 360 358 11/24/97 12/1/07 16,017,925
13 156 155 360 359 12/31/97 1/1/11 15,010,944
14 180 177 360 357 10/3/97 11/1/12 14,430,189
15 120 117 300 297 10/31/97 11/1/07 14,584,828
16 120 118 300 298 11/25/97 12/1/07 14,485,411
- - --------------------------------------------------------------------------------------------------------------------------------
17 240 238 240 238 11/16/97 12/1/17 -
18 120 117 300 297 10/21/97 11/1/07 13,437,458
19 90 81 360 351 4/30/97 11/1/04 15,099,639
20 84 83 360 359 12/8/97 1/1/05 14,670,165
22 120 116 360 356 7/30/97 10/1/07 13,493,463
- - --------------------------------------------------------------------------------------------------------------------------------
23 84 83 360 359 12/8/97 1/1/05 13,508,397
24 180 172 300 292 5/22/97 6/1/12 9,856,867
25 120 119 360 359 11/25/97 1/1/08 12,848,885
25a 5,294,871
- - --------------------------------------------------------------------------------------------------------------------------------
25b 847,181
25c 2,329,740
25d 4,377,094
26 120 118 360 358 11/13/97 12/1/07 12,433,221
- - --------------------------------------------------------------------------------------------------------------------------------
27 180 179 360 359 12/10/97 1/1/13 10,992,295
28 120 118 360 358 11/11/97 12/1/07 12,374,222
29 300 298 300 298 11/25/97 12/1/22 -
29a
- - --------------------------------------------------------------------------------------------------------------------------------
29b
29c
29d
29e
- - --------------------------------------------------------------------------------------------------------------------------------
30 120 111 360 351 4/7/97 5/1/07 11,878,215
31 180 179 360 359 12/31/97 1/1/13 10,054,331
32 180 179 300 299 12/23/97 1/1/13 8,397,268
33 84 83 360 359 12/8/97 1/1/05 11,722,464
34 180 178 360 358 11/17/97 12/1/12 9,938,368
- - --------------------------------------------------------------------------------------------------------------------------------
35 240 237 240 237 10/19/97 11/1/17 -
36 120 119 360 359 12/18/97 1/1/08 10,815,400
37 120 117 360 357 10/10/97 11/1/07 10,919,809
38 360 360 360 360 1/7/97 2/1/28 -
39 120 119 360 359 12/9/97 1/1/08 10,563,008
- - --------------------------------------------------------------------------------------------------------------------------------
40 300 299 360 359 12/11/97 1/1/23 4,218,414
41 120 118 360 358 12/1/97 12/1/07 10,567,407
42 120 118 360 358 11/24/97 12/1/07 10,562,027
43 120 119 300 299 12/19/97 1/1/08 9,234,456
44 84 81 360 357 10/30/97 11/1/04 10,633,657
- - --------------------------------------------------------------------------------------------------------------------------------
45 120 119 360 359 12/1/97 1/1/08 10,021,076
46 120 118 360 358 11/17/97 12/1/07 9,991,445
47 84 80 360 356 9/26/97 10/1/04 9,714,497
48 240 239 240 239 12/23/97 1/1/18 -
48a
- - --------------------------------------------------------------------------------------------------------------------------------
48b
49 120 118 360 358 11/13/97 12/1/07 9,213,767
49a 4,252,508
49b 4,961,259
- - --------------------------------------------------------------------------------------------------------------------------------
50 120 118 360 358 11/11/97 12/1/07 9,074,429
51 120 119 360 359 12/10/97 1/1/08 8,918,608
52 180 179 360 359 12/22/97 1/1/13 7,754,760
53 120 116 360 356 9/30/97 10/1/07 8,889,909
- - --------------------------------------------------------------------------------------------------------------------------------
54 120 116 360 356 9/17/97 10/1/07 8,839,914
55 120 116 240 236 10/1/97 10/1/07 7,056,303
56 120 118 360 358 10/27/97 12/1/07 8,646,457
57 120 117 360 357 10/27/97 11/1/07 8,608,835
58 120 119 300 299 12/2/97 1/1/08 7,738,318
- - --------------------------------------------------------------------------------------------------------------------------------
59 120 117 360 357 10/8/97 11/1/07 8,421,561
60 120 115 360 355 8/18/97 9/1/07 8,517,771
61 120 119 360 359 12/29/97 1/1/08 8,251,126
62 120 116 300 296 9/25/97 10/1/07 7,824,191
63 120 112 360 352 5/14/97 6/1/07 8,349,862
- - --------------------------------------------------------------------------------------------------------------------------------
64 240 239 240 239 12/10/97 1/1/18 -
65 120 110 360 350 3/19/97 4/1/07 7,909,510
66 120 118 360 358 11/6/97 12/1/07 7,722,040
67 120 114 360 354 7/23/97 8/1/07 7,846,850
68 300 299 300 299 12/23/97 1/1/23 483,207
- - --------------------------------------------------------------------------------------------------------------------------------
69 120 119 360 359 12/17/97 1/1/08 7,564,378
70 120 118 360 358 11/25/97 12/1/07 7,468,917
71 120 114 360 354 7/21/97 8/1/07 7,302,896
72 120 118 360 358 11/25/97 12/1/07 7,050,304
73 84 82 360 358 11/24/97 12/1/04 7,324,080
- - --------------------------------------------------------------------------------------------------------------------------------
74 180 178 360 358 11/12/97 12/1/12 6,030,622
75 120 118 300 298 11/26/97 12/1/07 5,918,920
76 120 115 360 355 8/22/97 9/1/07 6,490,021
77 120 119 360 359 12/3/97 1/1/08 6,358,632
78 120 119 360 359 12/30/97 1/1/08 6,310,239
- - --------------------------------------------------------------------------------------------------------------------------------
79 120 118 360 358 11/26/97 12/1/07 6,303,705
80 120 119 360 359 12/5/97 1/1/08 6,026,503
81 120 118 360 358 11/14/97 12/1/07 6,175,260
82 180 178 360 358 11/19/97 12/1/12 5,344,161
83 120 118 300 298 10/31/97 12/1/07 5,569,788
- - --------------------------------------------------------------------------------------------------------------------------------
84 120 119 360 359 12/18/97 1/1/08 5,986,438
85 84 73 360 349 2/24/97 3/1/04 6,294,654
86 120 119 360 359 12/24/97 1/1/08 5,796,320
87 120 112 360 352 5/9/97 6/1/07 5,894,918
88 120 117 360 357 10/20/97 11/1/07 5,774,263
- - --------------------------------------------------------------------------------------------------------------------------------
89 120 117 300 297 10/23/97 11/1/07 5,330,992
90 84 81 300 297 10/9/97 11/1/04 5,758,517
91 180 178 360 358 11/26/97 12/1/12 5,017,462
92 240 236 300 296 9/10/97 10/1/17 2,478,566
93 120 113 300 293 6/18/97 7/1/07 5,234,524
- - --------------------------------------------------------------------------------------------------------------------------------
94 120 114 360 354 7/3/97 8/1/07 5,539,787
95 120 111 360 351 4/9/97 5/1/07 5,546,929
96 120 114 360 354 7/30/97 8/1/07 5,489,042
97 120 117 300 297 9/24/97 11/1/07 5,070,231
98 180 179 360 359 12/31/97 1/1/13 4,663,663
- - --------------------------------------------------------------------------------------------------------------------------------
99 120 120 360 360 1/9/98 2/1/08 5,287,328
100 240 240 240 240 1/13/98 2/1/18 -
101 120 119 360 359 12/24/97 1/1/08 5,261,251
102 180 179 300 299 12/12/97 1/1/13 3,928,362
103 120 119 276 275 12/30/97 1/1/08 4,670,812
- - --------------------------------------------------------------------------------------------------------------------------------
104 180 177 300 297 10/29/97 11/1/12 3,865,912
105 119 116 360 357 9/11/97 10/1/07 5,160,934
106 84 73 360 349 2/24/97 3/1/04 5,474,665
107 120 117 360 357 10/20/97 11/1/07 5,117,292
108 120 118 360 358 11/5/97 12/1/07 5,064,800
- - --------------------------------------------------------------------------------------------------------------------------------
109 120 114 360 354 7/31/97 8/1/07 5,043,216
110 120 119 360 359 12/10/97 1/1/08 4,946,840
111 120 117 360 357 10/16/97 11/1/07 4,978,916
112 230 229 230 229 12/23/97 3/1/17 -
- - --------------------------------------------------------------------------------------------------------------------------------
112a
112b
112c
112d
112e
- - --------------------------------------------------------------------------------------------------------------------------------
112f
112g
112h
113 84 73 360 349 2/24/97 3/1/04 5,145,619
- - --------------------------------------------------------------------------------------------------------------------------------
114 60 59 360 360 12/5/97 1/1/03 5,359,106
115 120 114 360 354 7/10/97 8/1/07 4,931,104
115a
115b
- - --------------------------------------------------------------------------------------------------------------------------------
116 84 82 360 358 11/24/97 12/1/04 4,951,084
117 240 237 330 327 10/8/97 11/1/17 2,746,726
118 120 117 360 357 10/9/97 11/1/07 4,741,497
119 120 118 360 358 11/5/97 12/1/07 4,660,528
- - --------------------------------------------------------------------------------------------------------------------------------
120 120 115 360 355 8/15/97 9/1/07 4,655,058
121 300 298 300 298 11/13/97 12/1/22 335,599
122 120 118 300 298 11/5/97 12/1/07 4,196,486
123 84 83 360 359 12/23/97 1/1/05 4,752,776
124 60 59 360 360 12/5/97 1/1/03 4,961,056
- - --------------------------------------------------------------------------------------------------------------------------------
125 120 116 360 356 9/30/97 10/1/07 4,499,297
126 120 117 360 357 10/29/97 11/1/07 4,461,605
127 120 117 300 297 10/30/97 11/1/07 4,047,684
128 240 239 240 239 12/2/97 1/1/18 -
129 120 117 360 357 9/25/97 11/1/07 4,151,981
- - --------------------------------------------------------------------------------------------------------------------------------
130 120 114 240 234 7/31/97 8/1/07 3,333,826
131 240 237 240 237 10/21/97 11/1/17 -
132 84 82 360 358 11/17/97 12/1/04 4,252,350
133 84 82 360 358 11/24/97 12/1/04 4,163,366
134 120 118 360 358 11/12/97 12/1/07 3,910,919
- - --------------------------------------------------------------------------------------------------------------------------------
135 120 118 360 358 11/19/97 12/1/07 3,910,065
136 84 82 360 358 11/24/97 12/1/04 4,113,608
137 120 118 300 298 11/25/97 12/1/07 3,691,273
138 120 114 360 354 7/31/97 8/1/07 4,034,573
139 120 118 360 358 11/4/97 12/1/07 3,930,644
- - --------------------------------------------------------------------------------------------------------------------------------
140 84 82 360 358 11/24/97 12/1/04 4,118,469
141 120 119 360 359 12/10/97 1/1/08 3,789,835
142 120 118 360 358 11/18/97 12/1/07 3,881,593
143 120 119 300 299 12/30/97 1/1/08 3,545,827
144 180 176 360 356 9/24/97 10/1/12 3,437,324
- - --------------------------------------------------------------------------------------------------------------------------------
145 120 119 360 359 12/17/97 1/1/08 3,803,208
146 84 80 360 356 9/4/97 10/1/04 4,032,803
147 120 119 360 359 12/10/97 1/1/08 3,807,938
148 84 83 360 359 12/12/97 1/1/05 3,972,941
149 120 114 360 354 7/31/97 8/1/07 3,855,259
- - --------------------------------------------------------------------------------------------------------------------------------
150 84 83 360 359 12/18/97 1/1/05 3,942,021
151 120 119 360 359 12/30/97 1/1/08 3,700,804
152 120 119 360 359 12/31/97 1/1/08 3,683,445
153 120 118 360 358 11/10/97 12/1/07 3,690,098
154 120 118 360 358 11/3/97 12/1/07 3,709,743
- - --------------------------------------------------------------------------------------------------------------------------------
155 120 116 360 356 9/30/97 10/1/07 3,670,015
156 84 82 360 358 11/26/97 12/1/04 3,808,181
157 84 83 288 287 12/15/97 1/1/05 3,554,692
158 84 81 360 357 10/10/97 11/1/04 3,771,460
159 240 239 240 239 12/31/97 1/1/18 -
- - --------------------------------------------------------------------------------------------------------------------------------
160 120 119 360 359 12/10/97 1/1/08 3,542,266
161 120 119 360 359 12/3/97 1/1/08 3,516,521
162 120 115 360 355 8/20/97 9/1/07 3,537,280
163 82 79 358 355 10/21/97 9/1/04 3,644,650
164 120 117 360 357 10/31/97 11/1/07 3,390,007
- - --------------------------------------------------------------------------------------------------------------------------------
165 120 117 360 357 10/23/97 11/1/07 3,347,006
166 120 112 360 352 5/14/97 6/1/07 3,428,853
167 120 118 360 358 11/10/97 12/1/07 3,250,801
168 180 177 240 237 10/3/97 11/1/12 1,620,889
- - --------------------------------------------------------------------------------------------------------------------------------
169 180 179 360 359 12/17/97 1/1/13 2,812,706
169a
169b
170 84 82 360 358 11/24/97 12/1/04 3,298,287
- - --------------------------------------------------------------------------------------------------------------------------------
171 180 177 360 357 10/16/97 11/1/12 2,796,878
172 120 117 360 357 10/31/97 11/1/07 3,128,976
173 120 118 360 358 11/17/97 12/1/07 3,138,446
174 120 119 300 299 12/29/97 1/1/08 2,817,821
175 120 117 360 357 10/15/97 11/1/07 3,024,887
- - --------------------------------------------------------------------------------------------------------------------------------
176 120 119 360 359 12/24/97 1/1/08 2,985,983
177 120 116 300 296 9/29/97 10/1/07 2,706,864
178 120 117 360 357 10/21/97 11/1/07 2,895,341
179 84 82 360 358 11/3/97 12/1/04 3,013,896
180 84 77 360 353 6/25/97 7/1/04 3,081,471
- - --------------------------------------------------------------------------------------------------------------------------------
181 240 238 240 238 11/24/97 12/1/17 -
182 120 118 360 358 11/25/97 12/1/07 2,790,016
183 120 118 360 358 11/24/97 12/1/07 2,811,811
184 120 119 360 359 12/2/97 1/1/08 2,728,758
185 120 117 360 357 10/6/97 11/1/07 2,738,541
- - --------------------------------------------------------------------------------------------------------------------------------
186 120 120 360 360 1/7/98 2/1/08 2,613,782
187 120 118 300 298 11/3/97 12/1/07 2,472,983
188 120 117 360 357 10/22/97 11/1/07 2,664,673
189 240 238 240 238 11/7/97 12/1/17 -
190 120 112 360 352 5/12/97 6/1/07 2,654,482
- - --------------------------------------------------------------------------------------------------------------------------------
191 120 120 300 300 1/9/98 2/1/08 2,326,489
192 120 119 360 359 12/1/97 1/1/08 2,450,800
193 84 82 360 358 11/24/97 12/1/04 2,565,335
194 84 73 360 349 2/24/97 3/1/04 2,589,368
195 120 117 300 297 10/16/97 11/1/07 2,228,908
- - --------------------------------------------------------------------------------------------------------------------------------
196 84 73 360 349 2/24/97 3/1/04 2,515,387
197 276 275 276 275 12/11/97 1/1/21 -
198 120 117 360 357 10/24/97 11/1/07 2,389,350
199 300 298 300 298 11/17/97 12/1/22 -
200 180 179 360 359 12/24/97 1/1/13 2,047,709
- - --------------------------------------------------------------------------------------------------------------------------------
201 120 114 360 354 7/31/97 8/1/07 2,375,916
202 120 118 360 358 11/21/97 12/1/07 2,209,888
203 120 119 240 239 12/16/97 1/1/08 1,753,743
204 84 82 360 358 11/24/97 12/1/04 2,288,775
205 180 176 360 356 9/24/97 10/1/12 1,987,368
- - --------------------------------------------------------------------------------------------------------------------------------
206 83 78 360 355 6/7/97 8/1/04 2,356,264
207 120 113 240 233 6/13/97 7/1/07 1,790,197
208 84 83 360 359 12/10/97 1/1/05 2,293,031
209 120 120 360 360 1/8/98 2/1/08 2,097,082
210 120 116 360 356 9/23/97 10/1/07 2,138,874
- - --------------------------------------------------------------------------------------------------------------------------------
211 120 118 360 358 11/4/97 12/1/07 2,073,647
212 60 58 360 358 11/10/97 12/1/02 2,233,076
213 120 116 300 296 9/19/97 10/1/07 1,926,524
214 120 118 300 298 11/6/97 12/1/07 1,889,395
- - --------------------------------------------------------------------------------------------------------------------------------
214a
214b
214c
214d
- - --------------------------------------------------------------------------------------------------------------------------------
215 120 117 360 357 10/29/97 11/1/07 1,994,080
216 120 117 300 297 10/7/97 11/1/07 1,895,641
217 120 119 360 359 12/12/97 1/1/08 1,951,162
218 120 117 300 297 10/30/97 11/1/07 1,866,600
219 120 119 324 323 12/2/97 1/1/08 1,859,195
- - --------------------------------------------------------------------------------------------------------------------------------
220 120 119 360 359 12/19/97 1/1/08 1,893,167
221 240 238 240 238 11/7/97 12/1/17 -
222 120 120 360 360 1/2/98 2/1/08 1,905,043
223 120 116 360 356 9/25/97 10/1/07 1,931,160
224 120 117 360 357 10/14/97 11/1/07 1,851,851
- - --------------------------------------------------------------------------------------------------------------------------------
225 120 120 360 360 1/7/98 2/1/08 1,851,429
226 120 118 360 358 11/11/97 12/1/07 1,900,987
227 120 116 360 356 9/24/97 10/1/07 1,901,091
228 120 119 360 359 12/12/97 1/1/08 1,864,734
229 120 119 360 359 12/31/97 1/1/08 1,855,065
- - --------------------------------------------------------------------------------------------------------------------------------
230 120 119 360 359 12/18/97 1/1/08 1,836,665
231 120 119 360 359 12/19/97 1/1/08 1,755,482
232 120 118 360 358 11/19/97 12/1/07 1,787,887
233 120 118 360 358 11/20/97 12/1/07 1,759,890
234 120 116 360 356 9/30/97 10/1/07 1,764,430
- - --------------------------------------------------------------------------------------------------------------------------------
235 240 232 240 232 5/30/97 6/1/17 120,622
236 120 117 360 357 10/17/97 11/1/07 1,735,406
237 120 117 360 357 10/20/97 11/1/07 1,730,340
238 120 118 360 358 11/10/97 12/1/07 1,635,318
239 180 179 360 359 12/12/97 1/1/13 1,415,869
- - --------------------------------------------------------------------------------------------------------------------------------
240 84 73 360 349 2/24/97 3/1/04 1,627,603
241 120 117 300 297 10/28/97 11/1/07 1,433,596
242 120 116 300 296 9/12/97 10/1/07 1,450,492
243 120 117 360 357 10/7/97 11/1/07 1,542,574
244 120 117 300 297 10/28/97 11/1/07 1,368,141
- - --------------------------------------------------------------------------------------------------------------------------------
245 300 297 300 297 10/24/97 11/1/22 -
245a
245b
- - --------------------------------------------------------------------------------------------------------------------------------
246 120 117 360 357 10/17/97 11/1/07 1,413,087
247 180 179 300 299 12/2/97 1/1/13 1,030,014
248 180 177 192 189 10/6/97 11/1/12 203,802
249 240 238 240 238 11/12/97 12/1/17 55,169
250 180 179 360 359 12/12/97 1/1/13 1,058,915
- - --------------------------------------------------------------------------------------------------------------------------------
251 84 76 360 352 5/15/97 6/1/04 1,208,506
252 228 226 228 226 11/5/97 12/1/16 -
253 120 114 360 354 7/31/97 8/1/07 1,008,644
254 180 177 300 297 10/6/97 11/1/12 735,526
255 120 115 360 355 8/19/97 9/1/07 946,223
- - --------------------------------------------------------------------------------------------------------------------------------
256 240 237 240 237 10/29/97 11/1/17 -
257 120 118 360 358 11/24/97 12/1/07 847,959
258 120 116 300 296 9/17/97 10/1/07 789,191
259 180 177 300 297 10/6/97 11/1/12 568,361
260 120 118 360 358 11/26/97 12/1/07 589,587
- - --------------------------------------------------------------------------------------------------------------------------------
261 120 118 300 298 11/5/97 12/1/07 498,828
<CAPTION>
Annual
Control Debt Net DSCR
No. Property Type Prepayment Provisions Service ($) Cash Flow ($) (x)
- - ------------------------------------------------------------------------------------------------------------------------------------
1 Retail - Anchored L(2.75),YM1%(2),O(.25) or DEF 5,285,255 7,181,459 1.36
2 Retail - Anchored L(10),YM1%(4.5),O(.5) or DEF 3,421,093 4,164,314 1.22
3 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 2,701,596 3,449,564 1.28
5 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 2,040,708 2,644,942 1.30
- - ------------------------------------------------------------------------------------------------------------------------------------
6 Hotel - Full Service L(4),YM1%(5.5),O(.5) or DEF 1,786,817 2,604,489 1.46
7 Retail - Anchored L(3),YM1%(6.75),O(.25) or DEF 1,656,803 2,075,303 1.25
8 Hotel - Full Service L(4),YM1%(5.5),O(.5) or DEF 1,776,702 2,639,898 1.49
9 Retail - Anchored 3(3),2(3),1(3),O(1) 1,715,378 2,110,346 1.23
- - ------------------------------------------------------------------------------------------------------------------------------------
10 Retail - Anchored L(4),YM1%(2.5),O(.5) or DEF 1,532,357 1,968,125 1.28
10a Retail - Anchored
10b Retail - Anchored
11 Retail - Anchored L(7),YM1%(4.5),O(.5) or DEF 1,679,345 3,019,179 1.80
- - ------------------------------------------------------------------------------------------------------------------------------------
12 Office L(4),YM1%(5.75),O(.25) or DEF 1,535,569 1,967,659 1.28
13 Multifamily - Conventional L(3),YM1%(9.5),O(.5) or DEF 1,498,206 1,787,456 1.19
14 Office L(6),YM1%(8.5),O(.5) or DEF 1,564,146 1,973,523 1.26
15 Hotel - Limited Service L(4),3(2),2(2),1(1.5),O(.5) 1,586,399 2,508,183 1.58
16 Retail - Anchored L(4),YM1%(5.5),O(.5) 1,588,224 2,014,210 1.27
- - ------------------------------------------------------------------------------------------------------------------------------------
17 Industrial/Warehouse L(10),YM1%(9.5),O(.5) or DEF 1,720,747 2,248,413 1.31
18 Hotel - Full Service L(4),YM1%(5.5),O(.5) or DEF 1,476,106 2,071,620 1.40
19 Retail - Anchored L(4.417),YM1%(2.583),O(.5) or DEF 1,557,803 1,931,229 1.24
20 Multifamily - Conventional L(4),YM1%(2.5),O(.5) 1,282,770 1,808,257 1.41
22 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 1,300,439 1,596,479 1.23
- - ------------------------------------------------------------------------------------------------------------------------------------
23 Multifamily - Conventional L(4),YM1%(2.5),O(.5) 1,181,185 1,603,334 1.36
24 Retail - Anchored L(10),1(4),O(1) 1,501,554 2,002,312 1.33
25 Industrial/Warehouse L(4),YM1%(5.5),O(.5) or DEF 1,218,080 1,667,331 1.37
25a Industrial/Warehouse
- - ------------------------------------------------------------------------------------------------------------------------------------
25b Industrial/Warehouse
25c Office
25d Industrial/Warehouse
26 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 1,149,400 1,379,280 1.20
- - ------------------------------------------------------------------------------------------------------------------------------------
27 Retail - Anchored L(8),YM1%(6.5),O(.5) 1,174,971 1,531,506 1.30
28 Retail - Anchored L(6),YM1%(3.5),O(.5) 1,162,640 1,651,418 1.42
29 Multifamily - Conventional L(15),YM1%(9.75),O(.25) or DEF 1,222,925 1,558,644 1.27
29a Multifamily - Conventional
- - ------------------------------------------------------------------------------------------------------------------------------------
29b Multifamily - Conventional
29c Multifamily - Conventional
29d Multifamily - Conventional
29e Multifamily - Conventional
- - ------------------------------------------------------------------------------------------------------------------------------------
30 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 1,239,149 1,574,101 1.27
31 Retail - Anchored L(7),YM1%(7.5),O(.5) or DEF 1,064,195 1,328,864 1.25
32 Hotel - Limited Service L(7),YM1%(7.5),O(.5) or DEF 1,143,709 1,703,550 1.49
33 Multifamily - Conventional L(4),YM1%(2.5),O(.5) 1,025,021 1,265,164 1.23
34 Retail - Anchored L(9),YM1%(5.75),O(.25) or DEF 1,076,953 1,361,230 1.26
- - ------------------------------------------------------------------------------------------------------------------------------------
35 Retail - Anchored L(7),YM1%(3),< YM8%(1),< YM7%(1),< YM6%(1),< YM5%(2), 1,240,342 1,688,867 1.36
< YM4%(1),< YM3%(1),< YM2%(1),< YM1%(1.5),O(.5) or DEF
36 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 1,002,956 1,305,746 1.30
37 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 1,053,348 1,362,784 1.29
38 Retail - Anchored L(12),DEF(2),O(16) 1,019,718 1,232,373 1.21
39 Retail - Anchored L(3),YM1%(6.5),O(.5) or DEF 994,082 1,334,993 1.34
- - ------------------------------------------------------------------------------------------------------------------------------------
40 Multifamily - Conventional L(9),YM1%(9),5(1),4(1),3(1),2(1),1(2.5),O(.5) or DEF 1,016,748 1,294,940 1.27
41 Office L(2),YM1%(7.5),O(.5) or DEF 995,063 1,259,716 1.27
42 Multifamily - Section 42 L(4),YM1%(5.5),O(.5) 993,101 1,233,246 1.24
43 Office L(4),YM1%(5.75),O(.25) or DEF 987,272 1,268,573 1.28
44 Retail - Unanchored L(3),YM1%(3.5),O(.5) or DEF 944,213 1,275,488 1.35
- - ------------------------------------------------------------------------------------------------------------------------------------
45 Retail - Anchored L(3),YM1%(6.5),O(.5) 929,982 1,183,120 1.27
46 Office L(4),YM1%(5.5),O(.5) or DEF 951,945 1,245,886 1.31
47 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 877,239 1,430,237 1.63
48 Hotel - Limited Service L(10),YM1%(9.5),O(.5) or DEF 1,005,439 1,469,139 1.46
48a Hotel - Limited Service
- - ------------------------------------------------------------------------------------------------------------------------------------
48b Hotel - Limited Service
49 Retail - Anchored L(4),YM1%(5.5),O(.5) 882,897 1,109,774 1.26
49a Retail - Anchored
49b Retail - Anchored
- - ------------------------------------------------------------------------------------------------------------------------------------
50 Retail - Anchored L(6),YM1%(3.5),O(.5) 852,603 1,184,995 1.39
51 Multifamily - Conventional L(4),YM1%(5.75),O(.25) 835,025 1,012,572 1.21
52 Retail - Anchored L(7),YM1%(7.75),O(.25) or DEF 823,501 1,037,596 1.26
53 Office L(3),YM1%(6.5),O(.5) 860,358 1,152,813 1.34
- - ------------------------------------------------------------------------------------------------------------------------------------
54 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 841,524 1,007,779 1.20
55 Industrial/Warehouse L(5),YM1%(4.5),O(.5) or DEF 1,005,222 1,477,573 1.47
56 Health Care - Assisted Living/
Skilled Nursing L(4),YM1%(5.5),O(.5) or DEF 830,937 1,213,987 1.46
57 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 817,280 1,008,093 1.23
58 Office L(8),YM1%(1.5),O(.5) or DEF 833,416 1,066,426 1.28
- - ------------------------------------------------------------------------------------------------------------------------------------
59 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 808,846 1,013,036 1.25
60 Industrial/Warehouse L(5),5(1),4(1),3(1),2(1.667),O(.33) 846,048 1,182,582 1.40
61 Retail - Anchored L(4),YM1%(5.75),O(.25) 770,260 950,434 1.23
62 Office L(4),YM1%(5.5),O(.5) 896,922 1,351,612 1.51
63 Retail - Anchored L(7),YM1%(2.5),O(.5) 859,937 1,072,726 1.25
- - ------------------------------------------------------------------------------------------------------------------------------------
64 Industrial/Warehouse L(7),YM1%(12.5),O(.5) 882,052 1,372,572 1.56
65 Multifamily - Conventional L(4),YM1%(3),3(1),2(1),1(.5),O(.5) 827,897 992,584 1.20
66 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 729,264 913,124 1.25
67 Retail - Unanchored L(6),YM1%(3.5),O(.5) or DEF 779,255 1,299,457 1.67
68 Multifamily - Conventional L(10),YM1%(14.5),O(.5) or DEF 747,897 989,524 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
69 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 710,317 1,011,875 1.42
70 Office L(5),YM1%(4.5),O(.5) or DEF 704,844 963,350 1.37
71 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 737,076 1,066,409 1.45
72 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 665,340 948,214 1.43
73 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 657,496 948,368 1.44
- - ------------------------------------------------------------------------------------------------------------------------------------
74 Retail - Anchored L(7),YM1%(7.5),O(.5) or DEF 642,645 850,424 1.32
75 Health Care - Congregate Care L(4),YM1%(5.5),O(.5) 643,584 884,531 1.37
76 Multifamily - Conventional L(3),YM1%(6.5),O(.5) 618,802 837,689 1.35
77 Retail - Anchored L(5),5(1),4(1),3(1),2(1),1(.5),O(.5) 604,121 818,555 1.35
78 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 586,473 753,578 1.28
- - ------------------------------------------------------------------------------------------------------------------------------------
79 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 605,358 847,917 1.40
80 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 566,774 712,124 1.26
81 Retail - Unanchored L(5),YM1%(4.5),O(.5) or DEF 584,467 855,782 1.46
82 Retail - Anchored L(8),YM1%(6.5),O(.5) 568,253 711,604 1.25
83 Hotel - Limited Service L(5),5(1),4(1),3(1),2(1),1(.5),O(.5) or DEF 618,493 981,551 1.59
- - ------------------------------------------------------------------------------------------------------------------------------------
84 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 575,822 781,222 1.36
85 Retail - Anchored L(2),YM1%(4.5),O(.5) or DEF 606,692 793,989 1.31
86 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 541,896 689,850 1.27
87 Retail - Anchored L(4),YM1%(5.5),O(.5) 633,276 799,321 1.26
88 Office L(4),YM1%(5.5),O(.5) or DEF 551,781 770,525 1.40
- - ------------------------------------------------------------------------------------------------------------------------------------
89 Retail - Anchored L(4),YM1%(5.5),O(.5) 593,773 786,490 1.32
90 Industrial/Warehouse L(4),YM1%(2.5),O(.5) or DEF 582,006 781,397 1.34
91 Retail - Anchored L(7),YM1%(7.5),O(.5) or DEF 539,629 741,859 1.37
92 Multifamily - Conventional L(3),YM1%(16.5),O(.5) 607,070 797,223 1.31
93 Office L(4),YM1%(5.5),O(.5) or DEF 631,140 826,214 1.31
- - ------------------------------------------------------------------------------------------------------------------------------------
94 Office L(4),YM1%(5.5),O(.5) 577,749 799,488 1.38
95 Retail - Anchored L(4),YM1%(5.5),O(.5) 599,871 820,071 1.37
96 Retail - Anchored L(6),YM1%(3.5),O(.5) or DEF 537,408 703,885 1.31
97 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 570,579 854,195 1.50
98 Retail - Anchored L(7),YM1%(7.5),O(.5) or DEF 493,623 647,526 1.31
- - ------------------------------------------------------------------------------------------------------------------------------------
99 Retail - Anchored L(5),YM1%(4.5),O(.5) or DEF 499,496 688,279 1.38
100 Retail - Anchored L(10),YM1%(9.75),O(.25) or DEF 574,862 834,520 1.45
101 Office L(4),YM1%(5.5),O(.5) or DEF 489,703 650,731 1.33
102 Health Care - Assisted Living L(5),5(1),4(1),3(1),2(1),1(1),O(5) 540,061 848,957 1.57
103 Retail - Anchored L(4),YM1%(5.5),O(.5) 560,614 743,114 1.33
- - ------------------------------------------------------------------------------------------------------------------------------------
104 Retail - Unanchored L(7.5),YM1%(7),O(.5) or DEF 525,534 714,920 1.36
105 Office L(4),YM1%(5.417),O(.5) 508,688 640,148 1.26
106 Multifamily - Conventional L(2),YM1%(4.5),O(.5) or DEF 521,266 623,151 1.20
107 Multifamily - Conventional L(4),YM1%(5.5),O(.5) 484,748 616,817 1.27
108 Retail - Unanchored L(4),YM1%(5.5),O(.5) 489,553 645,278 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
109 Office L(3),5(1),4(1),3(1),2(3),1(.5),O(.5) or DEF 500,477 715,154 1.43
110 Office L(4),YM1%(5.75),O(.25) or DEF 470,332 617,690 1.31
111 Industrial/Warehouse L(4),YM1%(5.5),O(.5) or DEF 482,358 707,793 1.47
112 Retail - Unanchored L(7),YM1%(11.67),O(.5) 550,357 706,590 1.28
- - ------------------------------------------------------------------------------------------------------------------------------------
112a Retail - Unanchored
112b Retail - Unanchored
112c Retail - Unanchored
112d Retail - Unanchored
112e Retail - Unanchored
- - ------------------------------------------------------------------------------------------------------------------------------------
112f Retail - Unanchored
112g Retail - Unanchored
112h Retail - Unanchored
113 Multifamily - Conventional L(2),YM1%(4.5),O(.5) or DEF 489,937 587,754 1.20
- - ------------------------------------------------------------------------------------------------------------------------------------
114 Office L(2.75),YM(1.75),O(.5) or DEF 442,032(1) 617,582 1.40
115 Office L(4),YM1%(5.5),O(.5) or DEF 496,125 669,009 1.35
115a Office
115b Office
- - ------------------------------------------------------------------------------------------------------------------------------------
116 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 448,220 605,398 1.35
117 Retail - Anchored L(7),YM1%(12.5),O(.5) 489,366 639,992 1.31
118 Retail - Anchored L(4),YM1%(5.5),O(.5) 455,066 615,753 1.35
119 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 443,036 651,675 1.47
- - ------------------------------------------------------------------------------------------------------------------------------------
120 Multifamily - Conventional L(3),YM1%(6.5),O(.5) 443,845 573,902 1.29
121 Multifamily - Conventional L(8),YM1%(16.5),O(.5) 463,569 772,703 1.67
122 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 480,374 630,505 1.31
123 Retail - Anchored L(4),YM1%(2.75),O(.25) or DEF 424,125 515,009 1.21
124 Office L(2.75),YM(1.75),O(.5) or DEF 409,200(1) 653,802 1.60
- - ------------------------------------------------------------------------------------------------------------------------------------
125 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 425,826 512,996 1.20
126 Office L(4),YM1%(5.5),O(.5) or DEF 436,917 563,806 1.29
127 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 439,499 575,958 1.31
128 Office L(12),YM1%(7.5),O(.5) 469,923 602,994 1.28
129 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 394,743 523,564 1.33
- - ------------------------------------------------------------------------------------------------------------------------------------
130 Self Storage L(4),YM1%(5.5),O(.5) or DEF 477,737 762,438 1.60
131 Hotel - Limited Service L(4),YM1%(15.5),O(.5) or DEF 460,847 946,766 2.05
132 Office L(4),YM1%(2.5),O(.5) or DEF 376,936 502,562 1.33
133 Office L(4),YM1%(2.5),O(.5) or DEF 370,575 481,753 1.30
134 Retail - Unanchored L(4),5(1),4(1),3(1),2(1),1(1.5),O(.5) 379,797 515,365 1.36
- - ------------------------------------------------------------------------------------------------------------------------------------
135 Retail - Anchored L(4),YM1%(5),O(1) 379,426 508,141 1.34
136 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 366,180 631,256 1.72
137 Self Storage L(4),YM1%(5.5),O(.5) or DEF 411,073 547,018 1.33
138 Office L(3),5(1),4(1),3(1),2(3),1(.5),O(.5) or DEF 400,382 522,309 1.30
139 Office L(4),YM1%(5.5),O(.5) or DEF 373,381 468,517 1.25
- - ------------------------------------------------------------------------------------------------------------------------------------
140 Office L(3),YM1%(3.5),O(.5) or DEF 367,184 457,897 1.25
141 Multifamily - Conventional L(4),YM1%(4),2(1),O(1) 356,972 435,233 1.22
142 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 367,379 478,938 1.30
143 Industrial/Warehouse L(4),YM1%(5.75),O(.25) or DEF 385,924 517,128 1.34
144 Retail - Unanchored L(8),5(1),4(2),3(2),2(1),1(.25),O(.75) 373,246 476,700 1.28
- - ------------------------------------------------------------------------------------------------------------------------------------
145 Retail - Unanchored L(4),YM1%(5.75),O(.25) or DEF 356,870 651,153 1.82
146 Office L(3),YM1%(3.5),O(.5) or DEF 371,171 467,429 1.26
147 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 364,689 453,359 1.24
148 Multifamily - Conventional L(4),YM1%(2.5),O(.5) or DEF 353,075 440,761 1.25
149 Office L(3),5(1),4(1),3(1),2(3),1(.5),O(.5) or DEF 382,587 493,685 1.29
- - ------------------------------------------------------------------------------------------------------------------------------------
150 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 355,552 467,142 1.31
151 Retail - Unanchored L(4),YM1%(5.75),O(.25) or DEF 349,303 463,739 1.33
152 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 342,997 482,674 1.41
153 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 345,185 473,458 1.37
154 Retail - Unanchored L(6),YM1%(3.5),O(.5) 381,832 549,034 1.44
- - ------------------------------------------------------------------------------------------------------------------------------------
155 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 347,340 446,586 1.29
156 Retail - Anchored L(4),YM1%(2.5),O(.5) or DEF 345,700 428,275 1.24
157 Industrial/Warehouse L(3),YM1%(3.75),O(.25) 365,120 467,427 1.28
158 Retail - Anchored L(4),YM1%(2.5),O(.5) 338,492 447,970 1.32
159 Office L(4),YM1%(15.5),O(.5) or DEF 386,187 602,235 1.56
- - ------------------------------------------------------------------------------------------------------------------------------------
160 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 339,246 430,835 1.27
161 Office L(4),YM1%(5.5),O(.5) or DEF 329,727 409,134 1.24
162 Multifamily - Conventional L(3),YM1%(6.5),O(.5) 337,268 517,207 1.53
163 Multifamily - Conventional L(3.83),YM1%(2.5),O(.5) or DEF 342,080 430,402 1.26
164 Retail - Unanchored L(4),YM1%(5.5),O(.5) 331,740 449,107 1.35
- - ------------------------------------------------------------------------------------------------------------------------------------
165 Retail - Unanchored L(2),5(2),4(2),3(1),2(1),1(1.5),O(.5) 328,001 439,098 1.34
166 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 361,433 474,437 1.31
167 Multifamily - Conventional L(3),YM1%(6.75),O(.25) or DEF 304,092 453,387 1.49
168 Industrial/Warehouse L(6),YM1%(8.5),O(.5) or DEF 369,969 479,275 1.30
- - ------------------------------------------------------------------------------------------------------------------------------------
169 Retail - Unanchored L(7),YM1%(7.5),O(.5) or DEF 301,469 416,093 1.38
169a Retail - Unanchored
169b Retail - Unanchored
170 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 297,342 371,554 1.25
- - ------------------------------------------------------------------------------------------------------------------------------------
171 Multifamily - Conventional L(7),YM1%(7.5),O(.5) or DEF 297,636 362,604 1.22
172 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 295,535 370,353 1.25
173 Office L(4),YM1%(5.5),O(.5) or DEF 311,702 419,733 1.35
174 Office L(4),YM1%(5.5),O(.5) 302,768 621,777 2.05
175 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 287,377 379,187 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
176 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 279,159 360,541 1.29
177 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 305,377 410,455 1.34
178 Retail - Anchored L(4),YM1%(5.5),O(.5) 286,089 369,091 1.29
179 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 266,926 458,375 1.72
180 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 296,529 390,855 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
181 Industrial/Warehouse L(8),YM1%(11.5),O(.5) 317,380 415,301 1.31
182 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 267,156 334,063 1.25
183 Retail - Anchored L(4),YM1%(5.5),O(.5) 279,459 399,027 1.43
184 Multifamily - Conventional L(5),YM1%(4.5),O(.5) 252,114 307,006 1.22
185 Multifamily - Conventional L(4),5(1),4(1),3(1),2(1),1(1),O(1) 260,363 344,488 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
186 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 239,026 322,293 1.35
187 Office L(4),YM1%(5.5),O(.5) or DEF 278,092 375,719 1.35
188 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 257,411 348,982 1.36
189 Office L(4),YM1%(15.5),O(.5) or DEF 294,543 431,615 1.47
190 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 275,025 342,191 1.24
- - ------------------------------------------------------------------------------------------------------------------------------------
191 Mobile Home Park L(4),YM1%(5.75),O(.25) or DEF 248,406 341,259 1.37
192 Multifamily - Conventional L(4),YM1%(5.5),O(.5) 226,937 313,170 1.38
193 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 231,266 385,670 1.67
194 Multifamily - Conventional L(2),YM1%(4.5),O(.5) or DEF 246,545 297,106 1.21
195 Multifamily - Conventional L(4),YM1%(5.5),O(.5) 242,581 293,352 1.21
- - ------------------------------------------------------------------------------------------------------------------------------------
196 Multifamily - Conventional L(2),YM1%(4.5),O(.5) or DEF 239,501 315,644 1.32
197 Hotel - Limited Service L(10),YM1%(7),5(1),4(1),3(1),2(1),1(1.5),O(.5) 256,450 491,045 1.91
198 Retail - Unanchored L(4),YM1%(5.5),O(.5) 228,323 331,734 1.45
199 Multifamily - Conventional L(10),YM1%(14.5),O(.5) or DEF 237,330 291,609 1.23
200 Retail - Unanchored L(7),YM1%(7.5),O(.5) or DEF 216,501 284,600 1.31
- - ------------------------------------------------------------------------------------------------------------------------------------
201 Office L(3),5(1),4(1),3(1),2(3),1(.5),O(.5) or DEF 235,780 325,728 1.38
202 Office L(4),YM1%(5.5),O(.5) or DEF 210,381 279,192 1.33
203 Industrial/Warehouse L(4),YM1%(5.75),O(.25) or DEF 248,324 430,844 1.74
204 Multifamily - Conventional L(3),YM1%(3.5),O(.5) or DEF 205,467 351,710 1.71
205 Multifamily - Conventional L(5),YM1%(9.5),O(.5) or DEF 217,417 293,043 1.35
- - ------------------------------------------------------------------------------------------------------------------------------------
206 Retail - Unanchored L(4),YM1%(2.4167),O(.5) or DEF 229,824 314,335 1.37
207 Multifamily - Conventional L(4),YM1%(5.5),O(.5) 259,209 362,796 1.40
208 Office L(4),3(1),2(1),1(.5),O(.5) 205,637 273,322 1.33
209 Industrial/Warehouse L(2),YM1%(7.5),O(.5) or DEF 193,351 250,260 1.29
210 Retail - Unanchored L(5),YM1%(4.5),O(.5) or DEF 208,520 287,607 1.38
- - ------------------------------------------------------------------------------------------------------------------------------------
211 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 196,407 250,578 1.28
212 Office L(2),YM(1),2.5(1),1.5(.5),O(.5) or DEF 192,948 244,099 1.27
213 Industrial/Warehouse L(4),YM1%(5.5),O(.5) or DEF 214,263 288,499 1.35
214 Retail - Unanchored L(5),YM1%(4.5),O(.5) or DEF 211,014 304,738 1.44
- - ------------------------------------------------------------------------------------------------------------------------------------
214a Retail - Unanchored
214b Retail - Unanchored
214c Retail - Unanchored
214d Retail - Unanchored
- - ------------------------------------------------------------------------------------------------------------------------------------
215 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 192,039 266,793 1.39
216 Retail - Unanchored L(5),YM1%(4.75),O(.25) 213,204 325,845 1.53
217 Parking Garage L(4),YM1%(5.5),O(.5) or DEF 188,049 256,532 1.36
218 Office L(2),YM1%(7.5),O(.5) 212,701 276,302 1.30
219 Office L(4),YM1%(5.5),O(.5) or DEF 190,625 251,306 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
220 Multifamily - Section 42 L(4),YM1%(5),O(1) 177,773 216,638 1.22
221 Office L(10),YM1%(9.5),O(.5) or DEF 211,549 281,238 1.33
222 Office L(4),YM1%(5.5),O(.5) or DEF 182,877 238,739 1.31
223 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 192,740 297,359 1.54
224 Multifamily - Conventional L(4),YM1%(5),O(1) 174,429 219,828 1.26
- - ------------------------------------------------------------------------------------------------------------------------------------
225 Multifamily - Conventional L(4),YM1%(5.75),O(.25) 169,310 245,330 1.45
226 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 187,466 272,472 1.45
227 Retail - Anchored L(4),YM1%(5.5),O(.5) or DEF 188,802 270,010 1.43
228 Office L(4),YM1%(5.75),O(.25) or DEF 180,014 245,098 1.36
229 Retail - Anchored L(4),YM1%(5.75),O(.25) or DEF 176,375 258,358 1.46
- - ------------------------------------------------------------------------------------------------------------------------------------
230 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 169,692 226,871 1.34
231 Multifamily - Section 42 L(4),YM1%(5),O(1) 164,844 204,519 1.24
232 Self Storage L(3),YM1%(6.5),O(.5) 175,936 239,959 1.36
233 Multifamily - Conventional L(4),YM1%(5.75),O(.25) or DEF 165,353 218,294 1.32
234 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 166,991 207,354 1.24
- - ------------------------------------------------------------------------------------------------------------------------------------
235 Office L(10),YM1%(9.5),O(.5) 218,565 283,534 1.30
236 Retail - Unanchored L(4),YM1%(5.5),O(.5) 175,226 236,544 1.35
237 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 166,671 203,576 1.22
238 Multifamily - Conventional L(5),5(1),4(1),3(1),2(1),1(.75),O(.25) 155,682 209,545 1.35
239 Retail - Anchored L(7),YM1%(7.5),O(.5) or DEF 150,438 199,058 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
240 Multifamily - Conventional L(2),YM1%(4.5),O(.5) or DEF 154,971 190,242 1.23
241 Multifamily - Conventional L(3.5),5(1),4(1),3(1),2(1),1(2),O(.5) or DEF 159,309 202,456 1.27
242 Office L(5),YM1%(4.5),O(.5) or DEF 164,874 351,913 2.13
243 Multifamily - Conventional L(4),YM1%(5.5),O(.5) or DEF 147,192 180,214 1.22
244 Industrial/Warehouse L(4),YM1%(5.5),O(.5) 151,162 198,976 1.32
- - ------------------------------------------------------------------------------------------------------------------------------------
245 Office L(4),YM1%(20.5),O(.5) or DEF 156,186 207,187 1.33
245a Office
245b Office
- - ------------------------------------------------------------------------------------------------------------------------------------
246 Retail - Anchored L(5),5(2),4(2),3(.75),O(.25) or DEF 134,249 168,446 1.25
247 Office L(4),YM1%(10.75),O(.25) or DEF 143,065 209,662 1.47
248 Retail - Unanchored L(5),< YM2%(9.5),O(.5) 172,910 226,904 1.31
249 Retail - Anchored L(4),YM1%(15.5),O(.5) or DEF 141,569 174,063 1.23
250 Retail - Unanchored L(7),YM1%(7.5),O(.5) or DEF 114,050 164,173 1.44
- - ------------------------------------------------------------------------------------------------------------------------------------
251 Multifamily - Conventional L(1.83),YM1%(4.67),O(.5) or DEF 118,847 156,129 1.31
252 Retail - Unanchored L(4),YM1%(14.5),O(.5) or DEF 128,636 176,072 1.37
253 Office L(3),5(1),4(1),3(1),2(3),1(.5),O(.5) or DEF 100,095 129,509 1.29
254 Industrial/Warehouse L(5),< YM2%(9.5),O(.5) 102,580 148,785 1.45
255 Multifamily - Conventional L(3),YM1%(6.5),O(.5) 90,219 152,489 1.69
- - ------------------------------------------------------------------------------------------------------------------------------------
256 Multifamily - Conventional L(4),YM1%(15.5),O(.5) 97,849 117,453 1.20
257 Multifamily - Conventional L(4),YM1%(5.5),O(.5) 80,550 113,023 1.40
258 Retail - Unanchored L(5),YM1%(4.5),O(.5) 90,112 113,027 1.25
259 Retail - Unanchored L(5),< YM2%(9.5),O(.5) 79,267 112,984 1.43
260 Retail - Unanchored L(4),YM1%(5.5),O(.5) or DEF 56,619 78,336 1.38
- - ------------------------------------------------------------------------------------------------------------------------------------
261 Office L(4),YM1%(5.5),O(.5) or DEF 57,794 76,161 1.32
Sq. Ft.,
Cutoff Units
Control Appraised Appraisal Date Maturity Date Year Year Bed, Pad
No. Value ($) Year LTV Ratio(%) LTV Ratio (%) Built Renovated or Room
- - ------------------------------------------------------------------------------------------------------------------------------------
1 89,000,000 1997 70.2 66.9 1956 1991 866,424 Sq Foot
2 57,000,000 1997 73.6 56.9 1996-1997 N/A 576,639 Sq Foot
3 42,500,000 1997 78.1 68.4 1972-74 1994-97 770 Unit
5 30,500,000 1997 74.2 66.9 1990 N/A 223,011 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
6 27,500,000 1997 74.0 60.0 1973 1988 249 Room
7 25,500,000 1997 78.4 69.0 1988-91 N/A 390,794 Sq Foot
8 25,800,000 1997 77.4 63.0 1973 N/A 500 Room
9 26,000,000 1997 74.9 67.0 1988 N/A 231,686 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
10 24,065,000 1997 79.9 73.6 1997 N/A 175,661 Sq Foot
10a 22,800,000 1997 1997 N/A 175,661 Sq Foot
10b 1,265,000 1997 1997 N/A 175,661 Sq Foot
11 37,500,000 1997 50.5 43.7 1997 N/A 336,297 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
12 24,400,000 1997 75.7 65.6 1985 N/A 155,099 Sq Foot
13 22,900,000 1997 80.0 65.5 1968-72 N/A 699 Unit
14 25,000,000 1997 73.1 57.7 1920 1980's 255,049 Sq Foot
15 24,000,000 1997 74.8 60.8 1986 N/A 241 Room
16 24,500,000 1997 72.5 59.1 1989-90 N/A 291,330 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
17 29,650,000 1997 59.8 0.0 1985-91 N/A 586,960 Sq Foot
18 24,500,000 1997 67.2 54.8 1986 1994 236 Room
19 23,300,000 1997 69.4 64.8 1989 N/A 234,157 Sq Foot
20 20,345,000 1997 79.1 72.1 1990 N/A 360 Unit
22 19,000,000 1997 79.8 71.0 1974 1992 362 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
23 19,270,000 1997 76.9 70.1 1995 N/A 336 Unit
24 21,500,000 1996 68.6 45.8 1995 N/A 144,022 Sq Foot
25 18,300,000 1997 79.5 70.2 1980,85,88 N/A 358,945 Sq Foot
25a 7,600,000 1997 1988 N/A 157,266 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
25b 1,200,000 1997 1980 N/A 24,000 Sq Foot
25c 3,300,000 1997 1985 N/A 45,679 Sq Foot
25d 6,200,000 1997 1988 N/A 132,000 Sq Foot
26 18,100,000 1997 78.4 68.7 1996 N/A 248 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
27 18,500,000 1997 76.2 59.4 1987-90 N/A 153,559 Sq Foot
28 18,750,000 1997 74.9 66.0 1991 N/A 163,410 Sq Foot
29 17,250,000 1997 79.4 0.0 1969,72,73 1990 538 Unit
29a 5,400,000 1997 1969 1990 152 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
29b 3,500,000 1997 1972 N/A 88 Unit
29c 3,100,000 1997 1972 N/A 120 Unit
29d 2,600,000 1997 1973 N/A 92 Unit
29e 2,650,000 1997 1972 N/A 86 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
30 18,700,000 1997 71.3 63.5 1986 N/A 191,776 Sq Foot
31 16,800,000 1997 77.3 59.8 1982 N/A 202,051 Sq Foot
32 18,600,000 1997 69.8 45.1 1994 N/A 175 Room
33 16,285,000 1997 78.9 72.0 1989 N/A 280 Unit
34 15,750,000 1997 79.9 63.1 1997 N/A 164,448 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
35 18,500,000 1997 67.8 0.0 1997 N/A 83,500 Sq Foot
36 16,350,000 1997 75.5 66.1 1985-86 N/A 175,934 Sq Foot
37 16,400,000 1997 74.9 66.6 1989 1995 214,991 Sq Foot
38 15,000,000 1997 80.0 0.0 1995 N/A 92,492 Sq Foot
39 16,000,000 1997 75.0 66.0 1973 1990's 133,067 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
40 16,000,000 1997 75.0 26.4 1969 N/A 638 Unit
41 15,900,000 1997 75.4 66.5 1989 N/A 86,706 Sq Foot
42 16,300,000 1997 73.5 64.8 1966 N/A 499 Unit
43 16,100,000 1997 71.4 57.4 1932 1996 75,322 Sq Foot
44 17,000,000 1997 67.5 62.6 1898 1986 91,018 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
45 14,300,000 1997 80.0 70.1 1989 N/A 129,554 Sq Foot
46 16,500,000 1997 68.4 60.6 1987-89 N/A 163,537 Sq Foot
47 15,100,000 1997 70.0 64.3 1979 1994-96 420 Unit
48 14,800,000 1997 70.8 0.0 Various N/A 260 Room
48a 8,300,000 1997 1989 N/A 130 Room
- - ------------------------------------------------------------------------------------------------------------------------------------
48b 6,500,000 1997 1986 N/A 130 Room
49 13,500,000 1997 77.0 68.3 1990 N/A 193,087 Sq Foot
49a 6,000,000 1997 1990 N/A 95,137 Sq Foot
49b 7,500,000 1997 1990 N/A 97,950 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
50 13,750,000 1997 74.9 66.0 1990-92 N/A 152,611 Sq Foot
51 12,800,000 1997 79.3 69.7 1958-59 1990 264 Unit
52 14,000,000 1997 71.4 55.4 1970's-87 N/A 270,320 Sq Foot
53 18,300,000 1997 54.5 48.6 1990 N/A 155,193 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
54 12,500,000 1997 79.8 70.7 1991 N/A 208 Unit
55 14,700,000 1997 67.6 48.0 1920-1935 1989-92 404,072 Sq Foot
56
13,200,000 1997 73.8 65.5 1982 N/A 155 Bed
57 12,200,000 1997 79.8 70.6 1988 N/A 184 Unit
58 13,250,000 1997 72.4 58.4 1976 N/A 128,992 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
59 12,250,000 1997 77.4 68.7 1950,71 1987 184,670 Sq Foot
60 14,800,000 1997 64.0 57.6 1969 N/A 404,000 Sq Foot
61 12,500,000 1997 75.2 66.0 1988 N/A 118,396 Sq Foot
62 19,200,000 1997 48.8 40.8 1965-74 N/A 141,514 Sq Foot
63 12,600,000 1997 72.8 66.3 1982 N/A 103,358 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
64 16,000,000 1997 55.5 0.0 1960's-80's N/A 334,845 Sq Foot
65 11,775,000 1997 75.2 67.2 1970-71 1990-91 228 Unit
66 10,950,000 1997 79.9 70.5 1990 N/A 240 Unit
67 12,850,000 1997 67.9 61.1 1965-84 N/A 115,238 Sq Foot
68 11,600,000 1997 74.9 4.2 1995 N/A 144 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
69 13,100,000 1997 65.6 57.7 1994 N/A 50,000 Sq Foot
70 11,300,000 1997 74.9 66.1 1970's 1995-96 192,889 Sq Foot
71 11,250,000 1997 71.8 64.9 1989-95 N/A 102,320 Sq Foot
72 10,800,000 1997 74.0 65.3 1974 1990 195,472 Sq Foot
73 11,750,000 1997 68.0 62.3 1970 N/A 352 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
74 10,200,000 1997 75.9 59.1 1988 1990 97,516 Sq Foot
75 9,400,000 1997 79.6 63.0 1985 N/A 100 Bed
76 9,200,000 1997 79.5 70.5 1980 N/A 324 Unit
77 9,600,000 1997 75.0 66.2 1976-89 N/A 143,021 Sq Foot
78 9,000,000 1997 80.0 70.1 1977, 1997 1996 187 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
79 9,650,000 1997 73.6 65.3 1950's 1988 101,542 Sq Foot
80 9,700,000 1997 72.1 62.1 1963 1991 94,586 Sq Foot
81 9,350,000 1997 74.8 66.0 1997 N/A 42,880 Sq Foot
82 8,600,000 1997 79.9 62.1 1997 N/A 108,508 Sq Foot
83 10,200,000 1997 66.6 54.6 1950's 1997 158 Room
- - ------------------------------------------------------------------------------------------------------------------------------------
84 9,000,000 1997 75.0 66.5 1958,94 N/A 214,421 Sq Foot
85 9,400,000 1997 71.7 67.0 1970's 1986 190,696 Sq Foot
86 8,880,000 1997 74.3 65.3 1985 N/A 81,559 Sq Foot
87 8,800,000 1997 74.7 67.0 1985 N/A 101,048 Sq Foot
88 9,450,000 1997 68.9 61.1 1994 N/A 87,261 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
89 10,650,000 1997 60.9 50.1 1967 1990 308,064 Sq Foot
90 8,660,000 1997 74.8 66.5 1986 N/A 133,413 Sq Foot
91 8,060,000 1997 79.3 62.3 1996 N/A 48,374 Sq Foot
92 8,635,000 1997 73.8 28.7 1997 N/A 168 Unit
93 8,750,000 1997 72.1 59.8 1929 N/A 168,049 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
94 8,400,000 1997 74.1 65.9 1913 1993-94 261,088 Sq Foot
95 8,400,000 1997 73.4 66.0 1974 N/A 90,519 Sq Foot
96 8,200,000 1997 74.8 66.9 1991 N/A 82,193 Sq Foot
97 8,500,000 1997 72.2 59.7 1997 N/A 42,657 Sq Foot
98 7,700,000 1997 78.3 60.6 1990 N/A 45,957 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
99 8,000,000 1997 75.0 66.1 1961 N/A 56,020 Sq Foot
100 9,500,000 1997 63.2 0.0 1970 1996-97 198,787 Sq Foot
101 8,100,000 1997 74.0 65.0 1979 1996 75,363 Sq Foot
102 8,100,000 1997 74.0 48.5 1923 1969 190 Bed
103 7,800,000 1997 76.8 59.9 1993 N/A 141,397 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
104 8,400,000 1997 71.2 46.0 1980's-90's N/A 91,477 Sq Foot
105 7,860,000 1997 74.9 65.7 1997 N/A 71,550 Sq Foot
106 7,400,000 1997 79.4 74.0 1973 N/A 280 Unit
107 7,400,000 1997 78.2 69.2 1982 N/A 160 Unit
108 8,000,000 1997 71.2 63.3 1978 N/A 65,994 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
109 7,500,000 1997 74.8 67.2 1989 N/A 55,221 Sq Foot
110 7,100,000 1997 78.8 69.7 1986-87 N/A 49,345 Sq Foot
111 7,650,000 1997 73.1 65.1 1990 N/A 196,728 Sq Foot
112 7,735,000 1997 71.9 0.0 Various N/A 216,950 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
112a 1,150,000 1997 1995 N/A 31,200 Sq Foot
112b 1,250,000 1997 1995 N/A 31,200 Sq Foot
112c 1,200,000 1997 1995 N/A 27,500 Sq Foot
112d 820,000 1997 1993 N/A 22,400 Sq Foot
112e 1,100,000 1997 1995 N/A 30,700 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
112f 1,075,000 1997 1995 N/A 30,700 Sq Foot
112g 540,000 1997 1973 N/A 23,250 Sq Foot
112h 600,000 1997 1990 N/A 20,000 Sq Foot
113 8,600,000 1997 64.2 59.8 1964 N/A 123 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
114 10,250,000 1997 53.9 52.3 1981-82 N/A 81,267 Sq Foot
115 7,300,000 1997 74.8 67.5 1983 1997 93,113 Sq Foot
115a 4,500,000 1997 1983 1997 61,113 Sq Foot
115b 2,800,000 1997 1983 1997 32,000 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
116 6,740,000 1997 80.0 73.5 1972 N/A 143 Unit
117 7,200,000 1997 74.8 38.1 1997 N/A 53,630 Sq Foot
118 7,100,000 1997 75.2 66.8 1985 N/A 69,198 Sq Foot
119 6,700,000 1997 78.7 69.6 1972 N/A 195 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
120 6,700,000 1997 78.3 69.5 1978 1996 232 Unit
121 8,200,000 1997 63.3 4.1 1995 N/A 228 Unit
122 7,300,000 1997 71.1 57.5 1984 N/A 98,790 Sq Foot
123 6,700,000 1997 76.6 70.9 1980 1997 86,665 Sq Foot
124 8,400,000 1997 60.8 59.1 1955 1994-95 42,050 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
125 6,400,000 1997 79.5 70.3 1989 N/A 161 Unit
126 6,800,000 1997 73.4 65.6 1966 1990 52,481 Sq Foot
127 6,720,000 1997 74.2 60.2 1984 N/A 50,912 Sq Foot
128 6,500,000 1997 74.5 0.0 1997 N/A 47,421 Sq Foot
129 6,300,000 1997 74.5 65.9 1984 N/A 91,437 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
130 8,000,000 1997 58.2 41.7 1959 1990 92,511 Sq Foot
131 8,500,000 1997 54.4 0.0 1994 N/A 132 Room
132 6,600,000 1997 69.6 64.4 1984 N/A 66,768 Sq Foot
133 6,000,000 1997 74.9 69.4 1985 N/A 54,248 Sq Foot
134 6,000,000 1997 74.9 65.2 1980 N/A 80,808 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
135 6,000,000 1997 74.9 65.2 1971 N/A 103,165 Sq Foot
136 6,800,000 1997 66.1 60.5 1984 N/A 240 Unit
137 6,260,000 1997 71.8 59.0 1980,85-96 N/A 137,250 Sq Foot
138 6,000,000 1997 74.8 67.2 1988 N/A 61,622 Sq Foot
139 6,100,000 1997 72.9 64.4 1982/83 N/A 119,047 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
140 6,250,000 1997 71.1 65.9 1988 N/A 55,855 Sq Foot
141 5,500,000 1997 79.9 68.9 1977 N/A 252 Unit
142 5,900,000 1997 74.5 65.8 1996-97 N/A 44,348 Sq Foot
143 6,200,000 1997 70.5 57.2 1989 N/A 278,000 Sq Foot
144 5,800,000 1997 74.8 59.3 1920 1980's 29,068 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
145 7,800,000 1997 55.4 48.8 1996 N/A 97,378 Sq Foot
146 6,500,000 1997 66.5 62.0 1991 N/A 56,192 Sq Foot
147 5,400,000 1997 79.6 70.5 1993 N/A 51,926 Sq Foot
148 5,370,000 1997 80.0 74.0 1953 & 1974 N/A 186 Unit
149 6,000,000 1997 71.5 64.3 1900 1983 83,274 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
150 6,115,000 1997 69.5 64.5 1973 N/A 137 Unit
151 5,600,000 1997 75.0 66.1 1988 N/A 47,580 Sq Foot
152 5,620,000 1997 74.7 65.5 1988 N/A 62,028 Sq Foot
153 5,565,000 1997 75.4 66.3 1990 N/A 144 Unit
154 5,700,000 1997 73.6 65.1 1985 N/A 71,280 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
155 5,200,000 1997 79.8 70.6 1982 N/A 105 Unit
156 5,290,000 1997 77.4 72.0 1971 N/A 147,812 Sq Foot
157 5,450,000 1997 74.8 65.2 1978 N/A 306,970 Sq Foot
158 5,125,000 1997 79.3 73.6 1988 N/A 87,775 Sq Foot
159 5,800,000 1997 69.7 0.0 1970 1985 128,572 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
160 5,000,000 1997 80.0 70.8 1993 N/A 50,198 Sq Foot
161 5,100,000 1997 78.4 69.0 1985 N/A 69,377 Sq Foot
162 5,000,000 1997 79.8 70.7 1973 1996 306 Unit
163 5,300,000 1997 73.4 68.8 1910-30 N/A 30 Unit
164 5,075,000 1997 74.8 66.8 1996 N/A 55,200 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
165 6,100,000 1997 61.4 54.9 1920 1991 20,045 Sq Foot
166 5,200,000 1997 71.9 65.9 1992 N/A 42,919 Sq Foot
167 4,920,000 1997 75.1 66.1 1995-96 N/A 112 Unit
168 4,900,000 1997 74.7 33.1 1895-1985 N/A 174,590 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
169 4,900,000 1997 73.4 57.4 1986-87 N/A 65,657 Sq Foot
169a 1997 1986 N/A 40,502 Sq Foot
169b 1997 1987 N/A 25,155 Sq Foot
170 5,000,000 1997 71.9 66.0 1986 N/A 136 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
171 4,700,000 1997 76.5 59.5 1986 N/A 70 Unit
172 4,450,000 1997 79.6 70.3 1995 N/A 80 Unit
173 4,700,000 1997 74.4 66.8 1987 N/A 43,392 Sq Foot
174 12,500,000 1997 28.0 22.5 1981 N/A 219,585 Sq Foot
175 4,600,000 1997 74.3 65.8 1966 1993 106,648 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
176 4,800,000 1997 70.8 62.2 1984 N/A 55,043 Sq Foot
177 4,600,000 1997 73.0 58.8 1988 N/A 33,036 Sq Foot
178 4,250,000 1997 77.8 68.1 1964 1987 52,311 Sq Foot
179 5,150,000 1997 64.0 58.5 1987 N/A 106 Unit
180 4,100,000 1997 79.7 75.2 1985 N/A 192 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
181 4,800,000 1997 66.4 0.0 1988-91 N/A 117,694 Sq Foot
182 4,100,000 1997 76.8 68.0 1979 1995-96 53,820 Sq Foot
183 4,350,000 1997 72.0 64.6 1960 1992 96,958 Sq Foot
184 4,000,000 1997 78.0 68.2 1987-89 N/A 120 Unit
185 3,910,000 1997 79.1 70.0 1971 N/A 175 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
186 3,800,000 1997 79.0 68.8 1985 N/A 172 Unit
187 4,500,000 1997 66.6 55.0 1986 N/A 64,789 Sq Foot
188 4,160,000 1997 72.0 64.1 1986 1996 39,637 Sq Foot
189 5,220,000 1997 57.3 0.0 1995 N/A 49,118 Sq Foot
190 3,900,000 1996 76.5 68.1 1970 N/A 137 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
191 3,850,000 1997 75.3 60.4 1976 N/A 186 Pad
192 3,540,000 1997 79.1 69.2 1984 N/A 112 Unit
193 3,900,000 1997 71.7 65.8 1977 N/A 102 Unit
194 3,500,000 1997 79.4 74.0 1976 1993 140 Unit
195 3,480,000 1997 78.8 64.0 1971 N/A 115 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
196 3,400,000 1997 79.4 74.0 1982 N/A 112 Unit
197 4,700,000 1997 57.4 0.0 1995-96 1996 80 Room
198 3,600,000 1997 74.9 66.4 1971 1987 52,938 Sq Foot
199 3,400,000 1997 79.2 0.0 1996-97 N/A 72 Unit
200 3,550,000 1997 74.6 57.7 1979 1992 57,910 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
201 3,850,000 1997 68.6 61.7 1947 1988 55,222 Sq Foot
202 3,350,000 1997 74.6 66.0 1984 N/A 23,939 Sq Foot
203 3,750,000 1997 66.6 46.8 1938-43 1980's 186,980 Sq Foot
204 3,800,000 1997 65.7 60.2 1973 N/A 104 Unit
205 3,220,000 1997 77.5 61.7 1962 N/A 190 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
206 3,730,000 1997 66.9 63.2 1979 N/A 59,354 Sq Foot
207 3,450,000 1997 71.7 51.9 1979 1996 345 Unit
208 3,300,000 1997 75.0 69.5 1987 N/A 29,912 Sq Foot
209 3,000,000 1997 80.0 69.9 1997 N/A 50,940 Sq Foot
210 3,400,000 1997 70.4 62.9 1984 N/A 56,481 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
211 3,150,000 1997 74.5 65.8 1966-69 N/A 87 Unit
212 3,150,000 1997 74.5 70.9 1981 N/A 56,955 Sq Foot
213 3,350,000 1997 69.9 57.5 1914-94 1990's 119,263 Sq Foot
214 3,070,000 1997 74.8 61.5 1985-86 N/A 39,590 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
214a 810,000 1997 1985 N/A 3,360 Sq Foot
214b 900,000 1997 1985 N/A 1,920 Sq Foot
214c 560,000 1997 1986 N/A 3,300 Sq Foot
214d 800,000 1997 1985 N/A 2,800 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
215 3,100,000 1997 74.0 64.3 1972 N/A 104 Unit
216 3,950,000 1997 58.1 48.0 1984 N/A 33,686 Sq Foot
217 3,100,000 1997 72.5 62.9 1965 N/A 35,286 Sq Foot
218 3,000,000 1997 74.8 62.2 1987 N/A 50,000 Sq Foot
219 3,550,000 1997 61.9 52.4 1972 1997 47,106 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
220 2,750,000 1997 79.9 68.8 1987 N/A 95 Unit
221 3,375,000 1997 64.7 0.0 1992 N/A 33,664 Sq Foot
222 2,900,000 1997 74.1 65.7 1992 N/A 27,378 Sq Foot
223 2,870,000 1997 74.8 67.3 1986 N/A 35,134 Sq Foot
224 2,750,000 1997 78.0 67.3 1986-1988 N/A 82 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
225 2,700,000 1997 78.7 68.6 1972 N/A 120 Unit
226 3,000,000 1997 70.8 63.4 1989 N/A 45,800 Sq Foot
227 3,500,000 1997 60.5 54.3 1973 N/A 90,475 Sq Foot
228 2,900,000 1997 72.4 64.3 1987 N/A 26,296 Sq Foot
229 3,000,000 1997 70.0 61.8 1988 N/A 50,154 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
230 2,735,000 1997 76.7 67.2 1979-83 N/A 78 Unit
231 2,550,000 1997 79.9 68.8 1987 N/A 100 Unit
232 2,800,000 1997 71.4 63.9 1995-96 N/A 90,905 Sq Foot
233 2,500,000 1997 79.9 70.4 1963 1995 80 Unit
234 2,500,000 1997 79.8 70.6 1983 1997 60 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
235 3,300,000 1997 60.0 3.7 1987 N/A 41,411 Sq Foot
236 2,600,000 1997 75.8 66.7 1988 N/A 43,170 Sq Foot
237 2,470,000 1997 78.8 70.1 1974 N/A 80 Unit
238 2,350,000 1997 78.6 69.6 1948 1984 83 Unit
239 2,440,000 1997 74.8 58.0 1981 N/A 57,910 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
240 2,200,000 1997 79.4 74.0 1971 N/A 92 Unit
241 2,300,000 1997 75.9 62.3 1969 1990 143 Unit
242 3,650,000 1997 47.8 39.7 1984 1989 30,390 Sq Foot
243 2,200,000 1997 79.1 70.1 1962 1996 49 Unit
244 2,300,000 1997 72.6 59.5 1960-70's 1991 164,863 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
245 2,890,000 1997 56.2 0.0 1979 N/A 40,423 Sq Foot
245a 1,550,000 1997 1979 N/A 20,269 Sq Foot
245b 1,340,000 1997 1979 N/A 20,154 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
246 2,400,000 1997 66.6 58.9 1987 N/A 14,350 Sq Foot
247 2,200,000 1997 70.4 46.8 1979 N/A 30,504 Sq Foot
248 2,280,000 1997 67.5 8.9 1988 N/A 14,140 Sq Foot
249 2,050,000 1997 71.0 2.7 1997 N/A 10,125 Sq Foot
250 1,735,000 1997 77.8 61.0 1984 N/A 14,957 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
251 2,200,000 1997 58.8 54.9 1973 N/A 89 Unit
252 1,750,000 1997 71.2 0.0 1996 N/A 14,000 Sq Foot
253 1,500,000 1997 74.8 67.2 1986 N/A 15,960 Sq Foot
254 1,480,000 1997 74.1 49.7 1997 N/A 9,816 Sq Foot
255 1,550,000 1997 68.8 61.0 1971 1996 100 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
256 1,260,000 1997 78.9 0.0 1996 N/A 20 Unit
257 1,200,000 1997 79.9 70.7 1992 N/A 29 Unit
258 1,340,000 1997 70.7 58.9 1960 1994 7,000 Sq Foot
259 1,200,000 1997 70.6 47.4 1997 N/A 11,140 Sq Foot
260 900,000 1997 73.8 65.5 1988 N/A 7,000 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
261 1,170,000 1997 52.5 42.6 1984-1991 N/A 14,947 Sq Foot
<CAPTION>
Largest Retail Tenant
Loan per --------------------------------------------------
Sq. Ft., Units Tenant
Control Bed, Pad Occupancy Rent Roll Underwriting Area Leased Lease
No. or Room($) Percentage(%) Date Reserves($) per Tenant Name (Sq. Ft.) Exp Date
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 72.14 88.3 11/14/97 0.15 Sq Foot JC Penny 151,629 8/31/06
2 72.84 100.0 1/9/98 0.15 Sq Foot Lowes Home Improvement 130,497 11/30/16
3 43,116.88 95.5 12/2/97 233.39 Unit
5 101.79 100.0 5/6/97 0.13 Sq Foot Caldor 139,770 1/31/16
- - ------------------------------------------------------------------------------------------------------------------------------------
6 81,927.71 NAV NAV 4% of Gross Income
7 51.18 93.5 12/3/97 0.17 Sq Foot Homebase 115,055 8/31/10
8 40,000.00 NAV NAV 4% of Gross Income
9 84.17 98.0 7/1/97 0.10 Sq Foot HomeBase 103,689 4/30/08
- - ------------------------------------------------------------------------------------------------------------------------------------
10 109.60 95.0 10/31/97 0.09 Sq Foot Bed Bath & Beyond 35,009 1/31/08
10a
10b
11 56.50 99.0 7/1/97 0.10 Sq Foot Service Merchandise 50,000 3/31/17
- - ------------------------------------------------------------------------------------------------------------------------------------
12 119.28 100.0 10/7/97 0.15 Sq Foot
13 26,208.87 95.0 11/7/97 225.00 Unit
14 71.75 86.6 10/1/97 0.10 Sq Foot
15 74,688.80 NAV NAV 4% of Gross Income
16 61.10 95.5 9/15/97 0.10 Sq Foot Burlington Coat Factory 73,173 1/31/99
- - ------------------------------------------------------------------------------------------------------------------------------------
17 30.33 97.1 1/16/98 0.19 Sq Foot
18 69,915.25 NAV NAV 4% of Gross Income
19 69.40 89.7 4/23/97 0.15 Sq Foot Acme 57,733 10/1/09
20 44,722.22 95.0 9/20/97 274.90 Unit
22 41,988.95 95.9 8/27/97 266.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
23 44,122.02 91.4 9/20/97 240.84 Unit
24 103.11 100.0 8/21/97 0.10 Sq Foot Sports Authority 42,752 11/30/15
25 40.56 100.0 6/30/97 0.11 Sq Foot
25a
- - ------------------------------------------------------------------------------------------------------------------------------------
25b
25c
25d
26 57,298.39 97.6 10/13/97 163.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
27 91.82 100.0 10/1/97 0.15 Sq Foot Pace/Wal-Mart 102,516 7/31/06
28 86.06 96.0 9/16/97 0.17 Sq Foot Service Merchandise 41,667 2/28/06
29 25,520.45 95.4 10/21/97 263.44 Unit
29a
- - ------------------------------------------------------------------------------------------------------------------------------------
29b
29c
29d
29e
- - ------------------------------------------------------------------------------------------------------------------------------------
30 69.87 100.0 3/3/97 0.25 Sq Foot Ollies Bargain Outlet 36,416 1/31/05
31 64.34 97.8 12/1/97 0.15 Sq Foot Best Buy 45,051 10/31/09
32 74,285.71 NAV NAV 4% of Gross Income
33 45,946.43 90.4 9/20/97 337.77 Unit
34 76.62 98.1 11/14/97 0.10 Sq Foot Kohl's Department Store 86,821 1/31/19
- - ------------------------------------------------------------------------------------------------------------------------------------
35 150.90 100.0 9/18/97 0.18 Sq Foot Barnes & Noble 27,000 6/30/12
36 70.20 83.3 12/15/97 0.21 Sq Foot General Cinema 39,474 1/31/16
37 57.21 92.4 10/1/97 0.09 Sq Foot Hechinger 60,567 7/31/09
38 129.74 100.0 11/25/97 0.12 Sq Foot Giant Food Stores 56,600 7/31/02
39 90.18 100.0 10/20/97 0.10 Sq Foot Borders 30,000 1/31/16
- - ------------------------------------------------------------------------------------------------------------------------------------
40 18,808.78 87.2 9/28/97 160.33 Unit
41 138.40 98.6 6/30/97 0.15 Sq Foot
42 24,048.10 94.0 10/13/97 200.00 Unit
43 152.68 100.0 12/2/97 0.15 Sq Foot
44 126.35 89.8 11/1/97 0.20 Sq Foot Maxi Drug 17,063 1/31/02
- - ------------------------------------------------------------------------------------------------------------------------------------
45 88.30 99.0 10/8/97 0.10 Sq Foot Office Max 25,496 2/28/09
46 69.10 100.0 9/18/97 0.15 Sq Foot
47 25,238.10 96.3 9/1/97 263.00 Unit
48 40,384.62 NAV NAV 4% of Gross Income
48a
- - ------------------------------------------------------------------------------------------------------------------------------------
48b
49 53.86 98.3 10/1/97 0.09 Sq Foot
49a K-Mart 86,479 10/31/15
49b Mega Foods 52,225 5/31/10
- - ------------------------------------------------------------------------------------------------------------------------------------
50 67.57 88.8 10/9/97 0.17 Sq Foot Circuit City 32,196 1/31/06
51 38,446.97 96.0 10/1/97 247.16 Unit
52 36.99 89.2 12/17/97 0.15 Sq Foot US Postal Service 36,008 7/14/98
53 64.44 81.0 8/6/97 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
54 48,076.92 88.5 9/12/97 217.00 Unit
55 24.75 98.8 8/15/97 0.25 Sq Foot
56 62,903.23 93.0 10/3/97 350.00 Bed
57 52,989.13 96.7 8/29/97 288.00 Unit
58 74.42 100.0 11/3/97 0.47 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
59 51.44 98.4 10/1/97 0.10 Sq Foot Brunswick Lanes 26,345 6/30/04
60 23.51 100.0 8/5/97 0.15 Sq Foot
61 79.39 99.4 7/22/97 0.13 Sq Foot AJ's Fine Foods 30,376 12/8/13
62 66.42 96.0 7/14/97 0.10 Sq Foot
63 89.01 98.0 3/31/97 0.21 Sq Foot Tom Thumb 52,480 2/21/17
- - ------------------------------------------------------------------------------------------------------------------------------------
64 26.58 96.0 6/30/97 0.27 Sq Foot
65 39,100.88 90.4 8/28/97 326.00 Unit
66 36,500.00 93.3 9/18/97 198.00 Unit
67 75.93 89.0 7/1/97 0.20 Sq Foot Blockbuster Music 18,704 12/31/98
68 60,416.67 100.0 12/1/97 250.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
69 172.00 100.0 10/18/93 0.16 Sq Foot Ralph's Supermarket 47,000 9/5/19
70 43.94 96.0 10/9/97 0.12 Sq Foot
71 79.16 100.0 6/3/97 0.15 Sq Foot American Multi-Cinema 36,743 3/31/04
72 40.93 98.0 11/24/97 0.19 Sq Foot Burlington Coat Factory 59,680 1/31/99
73 22,727.27 91.8 10/10/97 300.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
74 79.47 95.4 10/31/97 0.20 Sq Foot Food Lion 32,056 12/31/09
75 75,000.00 100.0 9/1/97 350.00 Bed
76 22,651.23 91.4 3/26/97 206.00 Unit
77 50.34 100.0 9/30/97 0.15 Sq Foot Basha's 46,924 3/31/07
78 38,502.67 100.0 12/31/97 273.53 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
79 70.02 95.2 9/16/97 0.15 Sq Foot Leath Furniture 35,400 6/30/02
80 74.01 100.0 10/22/86 0.10 Sq Foot Fred Meyers 94,586 2/1/07
81 163.25 100.0 10/13/97 0.10 Sq Foot Edwin Watts Golf Shop 9,000 7/31/02
82 63.41 100.0 10/31/96 0.10 Sq Foot BJ's Wholesale Clubs 108,508 7/26/17
83 43,037.97 NAV NAV 4% of Gross Income
- - ------------------------------------------------------------------------------------------------------------------------------------
84 31.48 100.0 12/16/97 0.10 Sq Foot P & C Food Market 63,077 1/31/10
85 35.62 88.7 12/31/97 0.33 Sq Foot J.C. Penny 31,738 11/10/98
86 80.92 100.0 1/14/98 0.15 Sq Foot Planet Pizza 20,351 9/30/05
87 65.32 90.8 7/8/97 0.16 Sq Foot Ross Stores, Inc. 27,720 1/31/02
88 74.78 100.0 10/13/97 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
89 21.10 86.7 8/1/97 0.15 Sq Foot Mega Market 60,723 11/30/03
90 48.72 100.0 12/30/97 0.10 Sq Foot
91 132.30 100.0 9/16/97 0.10 Sq Foot Designer Shoe Warehouse 23,387 11/30/08
92 38,095.24 89.2 9/9/97 150.00 Unit
93 37.79 91.7 5/1/97 0.17 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
94 23.94 98.3 9/26/97 0.18 Sq Foot
95 68.49 90.7 1/31/97 0.27 Sq Foot Steinmart 34,550 9/1/98
96 74.82 100.0 7/31/97 0.10 Sq Foot Mars Supermarket 36,280 12/31/15
97 144.17 92.6 10/1/97 0.00 Sq Foot Krikorian Premier Theaters 23,542 7/1/17
98 131.21 91.7 12/1/97 0.20 Sq Foot Country Friends 7,000 7/31/01
- - ------------------------------------------------------------------------------------------------------------------------------------
99 107.10 100.0 5/1/97 0.23 Sq Foot Waldbaums 25,000 3/1/03
100 30.18 85.2 12/24/97 0.15 Sq Foot P&C Foods 50,195 8/1/12
101 79.61 98.6 12/22/97 0.22 Sq Foot
102 31,578.95 89.0 9/19/97 257.89 Bed
103 42.43 100.0 5/31/97 0.10 Sq Foot K-Mart 112,397 1/31/19
- - ------------------------------------------------------------------------------------------------------------------------------------
104 65.59 97.4 9/1/97 0.20 Sq Foot Weiss Markets 49,200 3/31/11
105 82.46 100.0 6/8/97 0.10 Sq Foot
106 21,142.86 97.5 8/29/97 309.00 Unit
107 36,250.00 96.3 9/5/97 377.00 Unit
108 86.37 95.5 11/1/97 0.23 Sq Foot L.A. Fitness 20,767 12/1/05
- - ------------------------------------------------------------------------------------------------------------------------------------
109 101.86 100.0 5/20/97 0.16 Sq Foot
110 113.49 100.0 9/8/97 0.29 Sq Foot
111 28.47 100.0 9/10/97 0.10 Sq Foot
112 25.70 100.0 3/1/97 0.17 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
112a Orscheln Properties 31,200 2/28/17
112b Orscheln Properties 31,200 2/28/17
112c Stage 12,000 7/31/06
112d Orscheln Properties 22,400 2/28/17
112e Orscheln Properties 30,700 2/28/17
- - ------------------------------------------------------------------------------------------------------------------------------------
112f Orscheln Properties 30,700 2/28/17
112g Orscheln Properties 23,250 2/28/17
112h Orscheln Properties 20,000 2/28/17
113 45,237.30 95.1 7/5/97 324.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
114 67.92 100.0 6/16/97 0.15 Sq Foot
115 58.80 92.6 5/1/97 0.15 Sq Foot
115a
115b
- - ------------------------------------------------------------------------------------------------------------------------------------
116 37,762.24 99.3 10/13/97 403.00 Unit
117 100.69 100.0 10/30/96 0.23 Sq Foot Food For Less 53,630 10/30/16
118 77.31 100.0 7/31/97 0.18 Sq Foot The Kroger Co. 11,868 8/31/05
119 27,051.28 96.4 8/31/97 240.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
120 22,689.66 91.8 6/30/97 265.85 Unit
121 22,807.02 96.0 9/1/97 266.00 Unit
122 52.64 96.8 8/11/97 0.24 Sq Foot T.J. Maxx 36,793 5/30/07
123 59.25 85.0 10/29/97 0.16 Sq Foot Petco 16,854 1/31/07
124 121.52 100.0 6/1/95 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
125 31,677.02 96.3 7/25/97 204.00 Unit
126 95.27 94.0 12/31/97 0.15 Sq Foot
127 98.21 100.0 11/1/84 0.10 Sq Foot H. E. Butt Grocery Company 50,912 10/31/04
128 102.28 100.0 9/1/97 0.10 Sq Foot
129 51.40 94.4 6/1/97 0.15 Sq Foot Max Foods 46,967 8/31/10
- - ------------------------------------------------------------------------------------------------------------------------------------
130 50.80 100.0 6/30/97 0.20 Sq Foot
131 35,227.27 NAV NAV 4% of Gross Income
132 68.90 96.0 8/31/97 0.15 Sq Foot
133 82.95 100.0 8/31/97 0.15 Sq Foot
134 55.69 97.2 10/22/97 0.22 Sq Foot Jungle Jim 28,000 1/1/02
- - ------------------------------------------------------------------------------------------------------------------------------------
135 43.62 100.0 9/23/97 0.20 Sq Foot Loehr's 30,800 4/30/00
136 18,750.00 96.3 10/12/97 325.00 Unit
137 32.79 80.7 11/22/97 0.14 Sq Foot
138 73.03 100.0 9/19/97 0.15 Sq Foot
139 37.38 86.0 9/29/97 0.17 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
140 79.67 100.0 11/20/97 0.15 Sq Foot
141 17,460.32 89.3 10/25/97 177.89 Unit
142 99.22 96.9 6/11/97 0.19 Sq Foot Barnes & Noble 19,956 5/1/12
143 15.74 95.0 10/31/97 0.10 Sq Foot
144 149.65 100.0 9/1/97 0.15 Sq Foot FIC Management Incorporated 6,879 10/31/99
- - ------------------------------------------------------------------------------------------------------------------------------------
145 44.41 100.0 11/16/96 0.15 Sq Foot Kittle's 97,378 11/16/11
146 77.06 92.0 8/1/97 0.15 Sq Foot
147 82.81 100.0 11/1/97 0.10 Sq Foot Fleming Foods of Ohio, Inc. 51,926 11/1/13
148 23,096.77 98.4 10/25/97 236.00 Unit
149 51.64 99.0 5/20/97 0.16 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
150 31,021.90 89.8 11/6/97 238.73 Unit
151 88.27 87.0 7/31/97 0.15 Sq Foot Bandag/Alpine 10,718 12/31/98
152 67.71 94.4 12/1/97 0.10 Sq Foot Wendy's Bridal Shoppes 6,686 1/31/02
153 29,166.67 98.0 8/13/97 289.00 Unit
154 58.92 98.2 10/1/97 0.44 Sq Foot U.S. Swim & Fitness 26,246 7/31/99
- - ------------------------------------------------------------------------------------------------------------------------------------
155 39,619.05 99.0 7/25/97 200.00 Unit
156 27.74 100.0 11/12/97 0.24 Sq Foot K-Mart 114,464 11/30/02
157 13.29 100.0 7/31/97 0.10 Sq Foot
158 46.37 98.4 7/1/97 0.15 Sq Foot Food World 47,875 2/28/08
159 31.50 100.0 8/28/97 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
160 79.68 100.0 11/1/93 0.10 Sq Foot Fleming Foods of Ohio, Inc. 50,198 11/1/13
161 57.66 100.0 9/1/96 0.19 Sq Foot
162 13,071.90 83.0 3/31/97 250.00 Unit
163 129,849.04 97.0 10/13/97 250.00 Unit
164 68.84 100.0 10/1/97 0.10 Sq Foot Raymours Furniture Company 55,200 9/30/12
- - ------------------------------------------------------------------------------------------------------------------------------------
165 187.08 100.0 6/30/97 0.14 Sq Foot GA Boston (G. Armani) 8,173 12/31/00
166 87.37 100.0 4/1/97 0.10 Sq Foot Revco/Hook 22,000 5/31/12
167 33,035.71 100.0 8/13/97 166.00 Unit
168 21.05 100.0 1/22/98 0.10 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
169 54.83 100.0 12/10/97 0.22 Sq Foot
169a Nu Life Fitness Center 9,960 4/1/98
169b The Talbot's, Inc. 4,300 1/31/03
170 26,470.59 92.0 7/8/97 283.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
171 51,428.57 100.0 7/1/97 188.63 Unit
172 44,375.00 96.1 9/8/97 182.00 Unit
173 80.66 100.0 1/25/98 0.19 Sq Foot
174 15.94 65.0 12/9/97 0.15 Sq Foot
175 32.11 99.0 9/30/97 0.15 Sq Foot Publix 45,753 8/18/13
- - ------------------------------------------------------------------------------------------------------------------------------------
176 61.77 82.0 10/30/97 0.16 Sq Foot Blockbuster Entertainment 6,000 3/31/99
177 102.16 100.0 9/12/97 0.15 Sq Foot Cost Plus, Inc. 15,000 1/31/99
178 63.37 97.1 1/1/97 0.15 Sq Foot House of Denmark 14,000 11/30/98
179 31,132.08 96.2 8/9/97 225.00 Unit
180 17,083.33 97.9 11/30/97 200.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
181 27.19 91.0 10/6/97 0.24 Sq Foot
182 58.53 100.0 11/20/97 0.24 Sq Foot B&G Printing 8,416 2/28/02
183 32.33 97.0 1/13/98 0.15 Sq Foot Shop N' Save 34,634 8/23/04
184 26,000.00 96.7 10/1/97 229.26 Unit
185 17,714.29 90.3 8/31/97 223.71 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
186 17,441.86 96.6 11/1/97 225.00 Unit
187 46.30 85.2 7/30/97 0.20 Sq Foot
188 75.69 96.5 10/2/97 0.37 Sq Foot Calico Jacks 8,094 8/31/02
189 61.08 100.0 8/22/97 0.15 Sq Foot
190 21,897.81 93.0 3/13/97 279.58 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
191 15,591.40 96.0 11/10/97 34.95 Pad
192 25,000.00 94.6 9/10/97 150.00 Unit
193 27,450.98 95.1 10/13/97 200.00 Unit
194 20,000.00 97.1 7/7/97 216.00 Unit
195 23,913.04 99.1 7/31/97 288.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
196 24,285.71 83.0 7/6/97 317.00 Unit
197 33,750.00 NAV NAV 4% of Gross Income
198 51.00 100.0 7/31/97 0.20 Sq Foot Hampden St. Antique Market 16,727 2/28/99
199 37,500.00 93.0 11/3/97 175.00 Unit
200 45.76 100.0 1/8/98 0.15 Sq Foot C&S Hardware - 9/30/99
- - ------------------------------------------------------------------------------------------------------------------------------------
201 47.99 100.0 5/20/97 0.16 Sq Foot
202 104.43 100.0 10/1/97 0.25 Sq Foot
203 13.37 98.4 9/15/97 0.16 Sq Foot
204 24,038.46 83.7 10/8/97 250.00 Unit
205 13,157.89 93.2 9/1/97 200.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
206 42.12 88.2 8/27/97 0.17 Sq Foot Northwest Fabrics 30,000 1/31/02
207 7,246.38 90.5 4/30/97 200.00 Unit
208 82.74 100.0 12/4/97 0.15 Sq Foot
209 47.11 100.0 9/8/97 0.10 Sq Foot
210 42.49 100.0 8/1/97 0.19 Sq Foot McDougal Realtors 14,300 4/30/99
- - ------------------------------------------------------------------------------------------------------------------------------------
211 27,011.49 100.0 10/1/97 279.23 Unit
212 41.26 100.0 1/29/98 0.43 Sq Foot
213 19.70 100.0 8/1/97 0.33 Sq Foot
214 58.10 100.0 NAV 0.18 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
214a Snellville Automotive 3,360 4/30/05
214b McNeese Enterprises 1,920 11/30/99
214c ABS Precision, Inc. 3,300 12/31/99
214d Auto Unlimited 2,800 9/30/99
- - ------------------------------------------------------------------------------------------------------------------------------------
215 22,115.38 95.2 8/10/97 279.18 Unit
216 68.28 88.1 9/1/97 0.31 Sq Foot Skips Boots 7,100 10/11/00
217 63.76 100.0 11/12/93 0.23 Sq Foot
218 45.00 94.3 8/1/97 0.20 Sq Foot
219 46.70 95.2 11/1/97 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
220 23,157.89 93.7 9/22/97 217.41 Unit
221 65.05 95.3 7/24/97 0.12 Sq Foot
222 78.53 100.0 1/1/98 0.24 Sq Foot
223 61.19 100.0 8/1/97 0.28 Sq Foot Ladies Workout Express 5,200 3/31/01
224 26,219.51 93.9 9/15/97 258.76 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
225 17,708.33 90.0 11/4/97 225.00 Unit
226 46.40 98.6 8/4/97 0.31 Sq Foot Social Security Administration 6,579 10/17/00
227 23.43 100.0 12/31/96 0.15 Sq Foot Laneco 86,005 2/5/03
228 79.86 100.0 12/1/97 0.16 Sq Foot
229 41.87 91.4 12/11/97 0.15 Sq Foot Dollar General 7,400 11/30/99
- - ------------------------------------------------------------------------------------------------------------------------------------
230 26,923.08 100.0 9/15/97 204.00 Unit
231 20,400.00 95.0 9/22/97 217.41 Unit
232 22.00 84.0 9/21/97 0.10 Sq Foot
233 25,000.00 96.3 10/22/97 250.00 Unit
234 33,333.33 100.0 7/25/97 354.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
235 48.30 100.0 4/9/97 0.22 Sq Foot
236 45.75 92.7 10/1/97 0.10 Sq Foot Greenbacks, Inc. 14,900 1/31/08
237 24,375.00 94.0 6/1/97 300.00 Unit
238 22,289.16 100.0 8/8/97 267.61 Unit
239 31.51 92.6 10/30/97 0.18 Sq Foot Minyard Food Stores - 6/1/07
- - ------------------------------------------------------------------------------------------------------------------------------------
240 19,130.43 94.6 7/7/97 232.00 Unit
241 12,237.76 91.0 9/26/97 250.00 Unit
242 57.58 100.0 12/1/94 0.25 Sq Foot
243 35,591.84 89.8 9/19/97 225.00 Unit
244 10.16 91.8 9/11/97 0.15 Sq Foot
- - ------------------------------------------------------------------------------------------------------------------------------------
245 40.32 100.0 8/1/97 0.17 Sq Foot
245a
245b
- - ------------------------------------------------------------------------------------------------------------------------------------
246 111.50 100.0 9/9/97 0.15 Sq Foot CVS 10,000 1/31/17
247 50.81 100.0 9/1/97 0.25 Sq Foot
248 109.62 100.0 9/25/97 0.18 Sq Foot Tire Kingdom 6,270 8/31/14
249 144.20 100.0 12/11/97 0.10 Sq Foot CVS 10,125 12/31/17
250 90.26 100.0 10/29/97 0.23 Sq Foot Premiere Video 5,402 1/31/01
- - ------------------------------------------------------------------------------------------------------------------------------------
251 14,606.74 96.0 8/28/97 317.00 Unit
252 89.29 100.0 12/1/95 0.21 Sq Foot Tutor Time Child Care 14,000 11/30/15
253 70.49 100.0 9/19/97 0.18 Sq Foot
254 112.06 100.0 9/23/97 0.30 Sq Foot
255 10,700.00 92.0 3/24/97 250.00 Unit
- - ------------------------------------------------------------------------------------------------------------------------------------
256 50,000.00 100.0 9/1/97 175.00 Unit
257 33,103.45 86.2 8/27/97 180.00 Unit
258 135.71 100.0 7/31/97 0.17 Sq Foot Payless Shoes 4,000 1/31/05
259 76.30 100.0 9/23/97 0.15 Sq Foot Brake World 3,984 4/30/07
260 95.00 100.0 9/16/97 0.15 Sq Foot Clark and Mitchell 2,400 0
- - ------------------------------------------------------------------------------------------------------------------------------------
261 41.15 100.0 8/11/97 0.36 Sq Foot
</TABLE>
(1) The Annual Debt Service, hence the DSCR, reflects the annualized monthly
principal and interest during the period in which the loan is amortizing.
<PAGE>
Annex B
LB Commercial Mortgage Trust
Commercial Mortgage Pass-Through Certificates,
Series 1998-C1
$1,516,147,000
(Approximate)
Offered Certificates
[GRAPHIC OMITTED]
% of Mortgage Pool by Cut-Off Date Balance
LEHMAN BROTHERS
First Union Capital Markets Corp.
<PAGE>
LB Commercial Mortgage Trust
Commercial Mortgage Pass-Through Certificates, Series 1998-C1
(LBCMT 1998-C1)
- - --------------------------------------------------------------------------------
% Credit
% of Deal Enhancement
---------------------------------
Class A-1 15.5% 29.50%
Aaa/AAA
--------------------
Class A-2 17.8% 29.50%
Aaa/AAA
--------------------
Class A-3 Class IO 37.2% 29.50%
Aaa/AAA Aaa/AAA
--------------------
Class B 5.0% 24.50%
Aa2/AA
--------------------
Class C 5.0% 19.50%
A2/A
--------------------
Class D 5.2% 14.25%
Baa2/BBB
--------------------
Class E 2.0% 12.25%
Baa3/BBB-
--------------------
Class F 3.0% 9.25%
--------------------
Class G 2.0% 7.25%
--------------------
Class H 1.0% 6.25%
--------------------
Class J 2.5% 3.75%
--------------------
Class K 1.0% 2.75%
--------------------
Class L 1.0% 1.75%
--------------------
Class M 1.8%
---------------------------------
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
===============================================================================================================
Original Avg Principal Legal
Class Face Rating (M/D) Description Coupon Life(1) Window(1) Status
<S> <C> <C> <C> <C> <C> <C> <C>
- - ---------------------------------------------------------------------------------------------------------------
A-1 $267,810,000 Aaa/AAA Fixed 6.330% 4.42 3/98 - 11/04 Public
- - ---------------------------------------------------------------------------------------------------------------
A-2 $308,000,000 Aaa/AAA Fixed 6.400% 7.75 11/04 - 8/07 Public
- - ---------------------------------------------------------------------------------------------------------------
A-3 $642,291,000 Aaa/AAA Fixed 6.480% 9.70 8/07 - 1/08 Public
- - ---------------------------------------------------------------------------------------------------------------
IO $1,727,817,629(2) Aaa/AAA WAC IO N/A 9.62(3) 3/98 - 2/28(3) Public
- - ---------------------------------------------------------------------------------------------------------------
B $86,390,000 Aa2/AA Fixed 6.590% 9.85 1/08 - 1/08 Public
- - ---------------------------------------------------------------------------------------------------------------
C $86,390,000 A2/A Fixed 6.680% 9.86 1/08 - 2/08 Public
- - ---------------------------------------------------------------------------------------------------------------
D $90,710,000 Baa2/BBB Fixed 6.980% 11.88 2/08 - 4/12 Public
- - ---------------------------------------------------------------------------------------------------------------
E $34,556,000 Baa3/BBB- Fixed 7.000% 14.48 4/12 - 11/12 Public
- - ---------------------------------------------------------------------------------------------------------------
F $51,834,000 Not Offered Fixed 6.300% 14.76 11/12 - 1/13 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
G $34,556,000 Not Offered Fixed 6.300% 14.85 1/13 - 1/13 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
H $17,278,000 Not Offered Fixed 6.300% 14.85 1/13 - 1/13 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
J $43,195,000 Not Offered Fixed 6.300% 15.30 1/13 - 1/15 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
K $17,278,000 Not Offered Fixed 6.300% 17.71 1/15 - 9/16 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
L $17,278,000 Not Offered Fixed 6.300% 19.22 9/16 - 11/17 Private, 144A
- - ---------------------------------------------------------------------------------------------------------------
M $30,251,629 Not Offered Fixed 6.300% 23.32 11/17 - 2/28 Private, 144A
===============================================================================================================
Total $l,727,817,629
===============================================================================================================
</TABLE>
(l) Assuming among other things, 0% CPR, no losses and that ARD loans pay off
on their Anticipated Repayment Date Expressed in years.
(2) Represents notional amount on Class IO.
(3) Represents average life of related principal notional amounts on Class IO.
Rating Agencies: Moody's and Duff & Phelp's
Trustee: LaSalle National Bank
Master Servicer: GMAC Commercial Mortgage Corporation
Special Servicer: GMAC Commercial Mortgage Corporation
Closing Date: On or about March 11, 1998 (40 days accrued interest)
B-2
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
Cut-off Date: February 1, 1998.
ERISA: Classes A-1, A-2, A-3 and I0 are expected to be eligible
for Lehman's individual prohibited transaction exemption
with respect to ERISA.
SMMEA: Classes A-1, A-2, A-3, B and I0 are "mortgage related
securities" for purposes of SMMEA.
Payment: Pays on 18th of each month or, if such date is not a
business day, then the following business day,
commencing March 18, 1998.
The Class I0: The Class I0 is comprised of fourteen components, one
relating to each class of Sequential Pay Certificates.
Optional Call: 1% Clean-up Call.
Collateral: The Certificates are backed by 259 mortgage loans
secured by first liens on 281 commercial and multifamily
properties, such mortgage loans having been originated
by an affiliate of Lehman Brothers, or its approved
conduit originators.
Offering Highlights
o Newly Originated Collateral. The collateral consists of 259 Mortgage Loans
with a principal balance (as of February I, 1998) of approximately $1.728
billion.
o Call Protection. 100% of the Mortgage Loans contain call protection
provisions. 99% of the Mortgage Loans provide for initial lockout period
followed by i) defeasance; or ii) yield maintenance; or/and iii)
percentage penalty. The weighted average lockout and defeasance periods
for all loans is 8.9 years. The Mortgage Loans are generally prepayable
without penalty between three to six months from Mortgage Loan maturity.
<TABLE>
<CAPTION>
==========================================================================================================
Type of Call Protection # of Loans % of Balance
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------
Lockout (weighted average 58 months), then Defeasance 178 71.7
- - ----------------------------------------------------------------------------------------------------------
Lockout (weighted average 56 months), then Yield Maintenance("YM")* 66 21.9
- - ----------------------------------------------------------------------------------------------------------
Lockout (weighted average 68 months), then declining penalties 11 4.4
- - ----------------------------------------------------------------------------------------------------------
Lockout (weighted average 60 months), then YM*, then declining penalties 3 0.9
- - ----------------------------------------------------------------------------------------------------------
Declining penalties only 1 1.1
==========================================================================================================
</TABLE>
* 97.1% of such Mortgage Loans provide for yield maintenance prepayment
premiums that are calculated at a discount rate of Treasuries flat.
o No loan delinquent 30 days or more as of the Cut-off Date.
o $6.7 million average loan balance as of the Cut-off Date.
o 1.35x Weighted Average Debt Service Coverage Ratio ("DSCR") as of the
Cut-off Date.
o 73.0% Weighted Average Loan to Value ("LTV") as of the Cut-off Date.
o Property Types. 46.0% Retail (80.8% Anchored and 19.2% Unanchored), 24.6%
Multifamily, 15.0% Office, 65% Hotel, 5.7% Industrial/Warehouse and 1.3%
Health Care.
o Geographic Diversification. Florida (9.7%), Texas (9.6%), New York (8.7%),
California (82%), Maryland (5.9%), Pennsylvania (5.9%); all other states
less than 4.2% each.
o Monthly Investor Reporting. Updated collateral summary information will be
part of the monthly remittance report in addition to detailed P&I payment
and delinquency information. Quarterly NOI and Occupancy to the extent
delivered by borrowers, will be available to Certificateholders.
o Cash Flows will be Modeled on BLOOMBERG.
(Except as otherwise indicated, percentages (%) represent the principal amount
of loan or loans compared to aggregate pool balance, as of the Cut-off Date (the
"Initial Pool Balance."))
B-3
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
Priority and Timing of Cash Flows
[BAR CHART OMITTED]
* Assuming % CPR, no losses. Otherwise based on Table Assumptions.
MORTGAGE LOANS: The collateral consists of an approximately $1,728
billion pool of 259 fixed rate mortgage loans secured by
first liens on commercial and multifamily properties in
36 different states. As of the Cut-off Date, the
Mortgage Loans have a weighted average coupon ("WAC") of
7.603% and a weighted average maturity ("WAM") of 131
months (based upon the anticipated repayment date of ARD
loans).
See the Collateral Summary tables at the end of
this memo for more Mortgage Loan details.
CREDIT ENHANCEMENT: Credit enhancement for each class of Certificates will
be provided by the classes of Certificates which are
subordinate in priority with respect to payments of
interest and principal.
DISTRIBUTIONS: Principal and interest payments will generally be made
to Certificateholders in the following order:
1) Interest to the Senior Classes: Class A-I, Class
A-2, Class A-3 and Class I0, pro rata,
2) Principal to Class A-I until such Class is
retired, *
3) Principal to Class A-2 until such Class is
retired, *
4) Principal to Class A-3 until such Class is
retired, *
5) Interest to Class B, then Principal to Class B
until such Class is retired,
6) Interest to Class C, then Principal to Class C
until such Class is retired,
7) Interest to Class D, then Principal to Class D
until such Class is retired,
8) Interest to Class E, then Principal to Class E
until such Class is retired,
9) Interest and Principal to the Private Classes,
sequentially.
* Pro rata if Classes B through M are retired.
REALIZED LOSSES: Realized Losses from any Mortgage Loan will be allocated
in reverse sequential order (i.e. Classes M, L, K, J, H,
G, F, E, D, C and B, in that order, and then pro-rata to
Classes A-1, A-2, and A-3).
B-4
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
APPRAISAL REDUCTIONS: With respect to certain specially serviced Mortgage
Loans as to which an appraisal is required (including
any Mortgage Loan that becomes 60 days delinquent), an
Appraisal Reduction Amount may be created, generally in
the amount, if any, by which the Stated Principal
Balance of such Mortgage Loan, together with unadvanced
interest, unreimbursed P&I advances and certain other
items, exceeds 90% of the appraised value of the related
Mortgaged Property. The Appraisal Reduction Amount will
reduce proportionately the amount of the interest
portion of any P&I Advance for such loan, which
reduction may result in a shortfall of interest to the
most subordinate class of Principal Balance Certificates
outstanding. The Appraisal Reduction Amount will be
reduced to zero as of the date the related Mortgage Loan
has been brought current for three months, paid in full,
repurchased or otherwise liquidated, and any shortfalls
borne by the subordinate classes may be made whole.
PREPAYMENT PREMIUMS (% represents % of Cut-off Date Balance):
<TABLE>
<CAPTION>
================================================================================================================
Prepayment 2/98 2/99 2/00 2/01 2/02 2/03 2/04 2/05 2/06 2/07 2/08
Premium
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------
Lock-out 98.9% 98.9% 96.0% 80.7% 28.4% 23.6% 19.9% 12.4% 9.5% 8.1% 1.8%
- - ----------------------------------------------------------------------------------------------------------------
Defeasance 2.5% 14.9% 51.9% 50.3% 50.6% 48.7% 49.6% 45.2% 16.3%
- - ----------------------------------------------------------------------------------------------------------------
YM 0.1% 3.1% 16.7% 17.3% 18.9% 17.1% 18.5% 16.1% 3.7%
- - ----------------------------------------------------------------------------------------------------------------
5% 0.2% 0.2% 0.4% 1.4% 0.3%
- - ----------------------------------------------------------------------------------------------------------------
4% 0.2% 0.7% 1.4% 0.3% 0.3%
- - ----------------------------------------------------------------------------------------------------------------
3% 1.l% 1.l% 1.l% 1.2% l.0% 0.7% 1.9%
- - ----------------------------------------------------------------------------------------------------------------
2% 1.1% 1.1% 1.3% 1.0% 1.7% 2.2% 0.5%
- - ----------------------------------------------------------------------------------------------------------------
1% 1.3% 1.1% 2.8% 2.4% 0.9%
- - ----------------------------------------------------------------------------------------------------------------
Open 1.9% 10.3% 0.3%
================================================================================================================
Matured 4.4% 4.4% 17.1% 17.1% 17.1% 76.8%
================================================================================================================
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
================================================================================================================
</TABLE>
* Note that Prepayment Premiums generally end prior to the last three to six
months before the Mortgage Loan's maturity date.
ALLOCATION OF PREPAYMENT PREMIUMS:
All Prepayment Premiums are distributed to
Certificateholders on the Distribution Date following
the one-month collection period in which the prepayment
occurred. All Prepayment Premiums will be allocated to
the Classes A through G, in each case, up to the product
of (i) the Prepayment Premium, (ii) the "Discount Rate
Fraction" and (iii) the percentage of the total
principal distribution to Certificateholders to which
such Class is entitled. Any excess amounts will be
distributed to Class IO.
The Discount Rate Fraction for Classes A through G is
defined as:
(Coupon on Class - Reinvestment Yield) / (Coupon on
Mortgage Loan - Reinvestment Yield)
B-5
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
PREPAYMENT PREMIUM ALLOCATION EXAMPLE:
The Yield Maintenance prepayment premium will generally
be equal to the present value of the reduction in
interest payments as a result of the prepayment through
the maturity of the Mortgage Loan, discounted at the
yield of a Treasury security of similar maturity in most
cases (convened from semi-annual to monthly pay). The
following example reflects that method.
General Yield Maintenance Example:
Assuming the structure presented on pages 3 and 4 of
Ibis memo and the following assumptions:
Mortgage Loan Characteristics of loan being prepaid*:
Balance $10,000,000
Coupon 8.0%
Maturity 10 yrs (February 1, 2008)
Amortization Term 30 yrs
Prepayment Date 3/1/98
Prepayment Premium Type Yield Maintenance
(Treasuries flat)
Certificate Characteristics
Class A-1 Coupon 6.00%
* The Yield Maintenance formula for certain Mortgage Loans may result in a
lower Yield Maintenance prepayment premium than set forth in this example.
<TABLE>
<CAPTION>
===================================================================================================
Mortgage Class A-I Class I0
Loan Certificates Certificates
<S> <C> <C> <C>
===================================================================================================
Amount of Principal Prepayment $10,000,000 $10,000,000 N/A
- - ---------------------------------------------------------------------------------------------------
Maturity Date of the Mortgage Loan 2/01/08
Number of Payments (1) 120
- - ---------------------------------------------------------------------------------------------------
Treasury Note used for Reinvestment Yield (2) 7.875% 11/07
Treasury Yield (CBE) 5.563%
Reinvestment Yield (Mtg) (3) 5.500%
- - ---------------------------------------------------------------------------------------------------
Mortgage Rate 8.00%
Payment Differential ($ per month) (4) $20,833.33
- - ---------------------------------------------------------------------------------------------------
Certificate Pass-Through Rate 6.00%
- - ---------------------------------------------------------------------------------------------------
Total Prepayment Premium $1,919,658
- - ---------------------------------------------------------------------------------------------------
Discount Rate Fraction Calculation (6.00% - 5.500%) / excess
(Class A-1 Coupon - Reinvestment Yield) / (8.00% - 5.500%) = prepayment
(Gross Mortgage Rate - Reinvestment Yield) = 0.5 / 2.5 = premiums
- - ---------------------------------------------------------------------------------------------------
$ Premium allocated to each class $383,931.60 $1,535,726.40
===================================================================================================
</TABLE>
(1) The number of payments to discount for yield maintenance prepayment
premium computation.
(2) The yield on the treasury note with a maturity date closest to the
maturity date of the loan.
(3) The Reinvestment Yield used is the mortgage equivalent of the CBE
treasury yield.
(4) (Mortgage Rate - Reinvestment Yield) x (amount of Principal
Prepayment) / 12 used for 120 payments.
B-6
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
ADVANCING: The Master Servicer will be obligated to make advances
of scheduled principal and interest payments (excluding
balloon payments and Appraisal Reduction Amounts) and
certain servicing expenses ("Advances"), to the extent
that such Advances are deemed to be recoverable. If the
Master Servicer fails to make a required Advance, the
Trustee or Fiscal Agent will be obligated to make such
advances.
CONTROLLING CLASS
REPRESENTATIVE: A Controlling Class Representative will be appointed by
a majority of Certificateholders of the Controlling
Class, which will generally be the most subordinate
class with a Certificate Balance outstanding that is at
least 25% of the initial Certificate Balance of such
Class. The Controlling Class Representative will,
subject to certain limitations, be entitled to direct
the Special Servicer on how to resolve delinquent or
defaulted loans.
SPECIAL SERVICER
FLEXIBILITY: The Pooling and Servicing Agreement will generally
permit the Special Servicer to modify, waive or amend
any term of any Mortgage Loan if (a) it determines, in
accordance with the servicing standard, that it is
appropriate to do so and (b) among other things, such
modification, waiver or amendment will not, subject to
certain exceptions set forth under "Servicing of the
Mortgage Loans -- Modifications, Waivers and Amendments"
in the Prospectus Supplement:
(i) affect the amount or timing of any
scheduled payments of principal, interest or
other amount (including Prepayment Premiums
and Yield Maintenance Charges) payable under
the Mortgage Loan;
(ii) affect the obligation of the related
borrower to pay a Prepayment Premium or
Yield Maintenance Charge or permit a
principal prepayment during the applicable
Lockout Period;
(iii) except as expressly provided by the
related Mortgage or in connection with a
material adverse environmental condition at
the related Mortgaged Property, result in a
release of the lien of the related Mortgage
on any material portion of such Mortgaged
Property without a corresponding principal
prepayment, or;
(iv) in the judgment of the Special
Servicer, materially impair the security for
the Mortgage Loan or reduce the likelihood
of timely payment of amounts due thereon.
SPECIAL AND GMAC COMMERCIAL MORTGAGE CORPORATION ("GMAC")
MASTER SERVICER: As of December 31, 1997, GMAC had a total commercial and
multifamily mortgage loan servicing portfolio (including
loans serviced for its own account and for others) of
approximately $40.2 billion.
B-7
<PAGE>
LBCMT 98-C1 Structural Term Sheet (continued):
MINIMUM DENOMINATIONS:
Minimum Increments
Classes Denomination Thereafter Delivery
- - --------------------------------------------------------------------------------
A-1, A-2, A-3, B, C, D, and E $10,000 $1 DTC
- - --------------------------------------------------------------------------------
IO $100,000 $1 DTC
DETAILED MONTHLY INVESTOR REPORTING:
Updated collateral summary information will be a part of
the monthly remittance report in addition to detailed
P&I payment and delinquency information. Quarterly NOI
and Occupancy data, to the extent delivered by the
borrowers, will be available to Certificateholders
through the Trustee. The following is a list of all the
reports that will be available to Certificateholders:
Name of Report Description (information provided)
- - --------------------------------------------------------------------------------
1 Remittance Report principal and interest
distributions, principal balances
- - --------------------------------------------------------------------------------
2 Mortgage Loan Status Report portfolio stratifications
- - --------------------------------------------------------------------------------
3 Comparative Financial Status Report revenue, NOI, DSCR to the extent
available
- - --------------------------------------------------------------------------------
4 Delinquent Loan Status Report listing of delinquent mortgage loans
- - --------------------------------------------------------------------------------
5 Historical Loan Modification Report information on modified mortgage
loans
- - --------------------------------------------------------------------------------
6 Historical Loss Estimate Report liquidation proceeds, expenses, and
realized losses
- - --------------------------------------------------------------------------------
7 RIO Status Report NOI and value of REO
- - --------------------------------------------------------------------------------
8 Watch List listing of loans in jeopardy of
becoming Specially Serviced
- - --------------------------------------------------------------------------------
9 Loan Payoff Notification Report listing of loans that have given
notice of intent to payoff
B-8
<PAGE>
COLLATERAL OVERVIEW(as of the cut-off date - February 1, 1998):
GENERAL CHARACTERISTICS
================================================================
Characteristics
----------------------------------------------------------------
Initial Pool Balance $1,727,817,629
----------------------------------------------------------------
# of Loans 259
----------------------------------------------------------------
Gross WAC 7.603%
----------------------------------------------------------------
Original WAM 134(mos)
----------------------------------------------------------------
Remaining WAM 131(mos)
----------------------------------------------------------------
Avg. Loan Balance $6,671,111
----------------------------------------------------------------
WA DSCR 1.35x
----------------------------------------------------------------
WA Cut-off Date LTV Ratio 73.0%
----------------------------------------------------------------
Balloon Loans 61.3%
----------------------------------------------------------------
ARD Loans 30.9%
================================================================
PROPERTY TYPES
================================================================
Property % of Initial Pool
Types Balance
----------------------------------------------------------------
Retail 46.0%
----------------------------------------------------------------
Multifamily 24.6%
----------------------------------------------------------------
Office 15.0%
----------------------------------------------------------------
Hotel 6.5%
----------------------------------------------------------------
Industrial/Warehouse 5.7%
----------------------------------------------------------------
Health Care 1.3%
----------------------------------------------------------------
Self Storage 0.6%
----------------------------------------------------------------
Mobile Home Park 0.2%
----------------------------------------------------------------
Parking Garage 0.1%
================================================================
DEAL SUMMARY BY PROPERTY TYPE:
<TABLE>
<CAPTION>
==================================================================================================================================
Aggregate Average Rem. WA WA
# of Cut-off Date % of Cut-off Date Gross WAM LTV WA Occup. % %
Property Type Loans Balance Pool Balance WAC (mos) Ratio DSCR (x) Rate CA Balloon
($) ($) (%) (%) (%)(1)
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Retail 103 794,888,630 46.0 7,717,365 7.68 130 73.0 1.33 96.0 4.6 25.8
- - ----------------------------------------------------------------------------------------------------------------------------------
Anchored 65 642,223,097 37.2 9,880,355 7.67 131 73.3 1.32 95.9 3.9 18.9
- - ----------------------------------------------------------------------------------------------------------------------------------
Unanchored 38 152,665,534 8.8 4,017,514 7.72 127 71.6 1.40 96.1 0.7 6.9
- - ----------------------------------------------------------------------------------------------------------------------------------
Multifamily 74 424,641,846 24.6 5,738,403 7.42 129 76.8 1.31 94.4 2.1 16.9
- - ----------------------------------------------------------------------------------------------------------------------------------
Conventional 71 408,418,692 23.6 5,752,376 7.43 130 76.9 1.31 94.4 2.1 16.0
- - ----------------------------------------------------------------------------------------------------------------------------------
Section 42 3 16,223,153 0.9 5,407,718 7.30 118 75.2 1.24 94.1 - 0.9
- - ----------------------------------------------------------------------------------------------------------------------------------
Office 49 258,522,386 15.0 5,275,967 7.66 125 69.5 1.34 96.2 0.8 9.5
- - ----------------------------------------------------------------------------------------------------------------------------------
Hotel 9 112,298,053 6.5 12,477,561 7.50 145 71.3 1.52 - - 4.7
- - ----------------------------------------------------------------------------------------------------------------------------------
Full Service 3 56,774,538 3.3 18,924,846 7.49 118 73.2 1.45 - - 3.3
- - ----------------------------------------------------------------------------------------------------------------------------------
Limited Service 6 55,523,514 3.2 9,253,919 7.52 172 69.3 1.59 - - 1.4
- - ----------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 16 97,954,817 5.7 6,122,176 7.70 153 68.5 1.39 98.3 0.3 2.3
- - ----------------------------------------------------------------------------------------------------------------------------------
Health Care 3 23,216,532 1.3 7,738,844 7.49 134 75.7 1.46 94.2 0.4 1.3
- - ----------------------------------------------------------------------------------------------------------------------------------
Assisted Living 1 5,994,623 0.3 5,994,623 7.67 179 74.0 1.57 89.0 - 0.3
- - ----------------------------------------------------------------------------------------------------------------------------------
Assisted Living/Skilled 1 9,740,102 0.6 9,740,102 7.66 118 73.8 1.46 93.0 - 0.6
- - ----------------------------------------------------------------------------------------------------------------------------------
Nursing
- - ----------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,481,807 0.4 7,481,807 7.13 118 79.6 1.37 100.0 0.4 0.4
- - ----------------------------------------------------------------------------------------------------------------------------------
Self Storage 3 11,147,050 0.6 3,715,683 8.00 116 66.0 1.45 89.4 - 0.6
- - ----------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 1 2,900,000 0.2 2,900,000 7.11 120 75.3 1.37 96.0 - -
- - ----------------------------------------------------------------------------------------------------------------------------------
Parking Garage 1 2,248,317 0.1 2,248,317 7.46 119 72.5 1.36 100.0 - -
==================================================================================================================================
Total/Avg/Min/Max/ 259 1,727,817,629 100.0 6,671,111 7.60 131 73.0 1.35 95.7 8.2 61.3
Wtd.Avg.:
==================================================================================================================================
</TABLE>
(1) Excluding Hotels.
B-9
<PAGE>
COLLATERAL OVERVIEW (as of the cut-off date - February 1, 1998):
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED):
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Average Minimum
Aggregate % of Cut-off Cut-off Maximum Gross Min Max Min Max WA Min
Property # of Cut-off Date Initial Date Date Cut-off Date WAC WAC WAC WAM WAM DSCR DSCR
Type Loans Balance Pool Balance Balance Balance
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Retail 103 794,888,630 46.0 7,717,365 664,323 62,467,513 7.68 6.97 9.05 59 360 1.33 1.21
- - -----------------------------------------------------------------------------------------------------------------------------------
Anchored 65 642,223,097 37.2 9,880,355 1,455,349 62,467,513 7.67 6.97 9.05 59 360 1.32 1.21
- - -----------------------------------------------------------------------------------------------------------------------------------
Unanchored 38 152,665,534 8.8 4,017,514 664,323 11,477,744 7.72 7.23 8.46 78 229 1.40 1.25
- - -----------------------------------------------------------------------------------------------------------------------------------
Multifamily 74 424,641,846 24.6 5,738,403 958,972 33,180,421 7.42 6.98 8.57 73 299 1.31 1.19
- - -----------------------------------------------------------------------------------------------------------------------------------
Conventional 71 408,418,692 23.6 5,752,376 958,972 33,180,421 7.43 6.98 8.57 73 299 1.31 1.19
- - -----------------------------------------------------------------------------------------------------------------------------------
Section 42 3 16,223,153 0.9 5,407,718 2,038,367 11,986,547 7.30 7.12 7.36 118 119 1.24 1.22
- - -----------------------------------------------------------------------------------------------------------------------------------
Office 49 258,522,386 15.0 5,275,967 613,738 18,471,844 7.66 7.03 9.17 58 297 1.34 1.24
- - -----------------------------------------------------------------------------------------------------------------------------------
Hotel 9 112,298,053 6.5 12,477,561 2,696,562 20,360,654 7.50 7.36 7.97 117 275 1.52 1.40
- - -----------------------------------------------------------------------------------------------------------------------------------
Full Service 3 56,774,538 3.3 18,924,846 16,451,099 20,360,654 7.49 7.36 7.60 117 118 1.45 1.40
- - -----------------------------------------------------------------------------------------------------------------------------------
Limited Service 6 55,523,514 3.2 9,253,919 2,696,562 17,944,805 7.52 7.38 7.97 117 275 1.59 1.46
- - -----------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 16 97,954,817 5.7 6,122,176 1,097,047 17,735,508 7.70 7.09 8.12 81 239 1.39 1.28
- - -----------------------------------------------------------------------------------------------------------------------------------
Health Care 3 23,216,532 1.3 7,738,844 5,994,623 9,740,102 7.49 7.13 7.67 118 179 1.46 1.37
- - -----------------------------------------------------------------------------------------------------------------------------------
Assisted Living 1 5,994,623 0.3 5,994,623 5,994,623 5,994,623 7.67 7.67 7.67 179 179 1.57 1.57
- - -----------------------------------------------------------------------------------------------------------------------------------
Assisted Living/Skilled 1 9,740,102 0.6 9,740,102 9,740,102 9,740,102 7.66 7.66 7.66 118 118 1.46 1.46
- - -----------------------------------------------------------------------------------------------------------------------------------
Nursing
- - -----------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,481,807 0.4 7,481,807 7,481,807 7,481,807 7.13 7.13 7.13 118 118 1.37 1.37
- - -----------------------------------------------------------------------------------------------------------------------------------
Self Storage 3 11,147,050 0.6 3,715,683 1,998,192 4,656,636 8.00 7.84 8.17 114 118 145 1.33
- - -----------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 1 2,900,000 0.2 2,900,000 2,900,000 2,900,000 7.11 7.11 7.11 120 120 1.37 1.37
- - -----------------------------------------------------------------------------------------------------------------------------------
Parking Garage 1 2,248,317 0.1 2,248,317 2,248,317 2,248,317 7.46 7.46 7.46 119 119 1.36 1.36
===================================================================================================================================
Total/Avg/Min/Max/ 259 1,727,817,629 100.0 6,671,111 613,738 62,467,513 7.60 6.97 9.17 58 360 1.35 1.19
Wtd.Avg.:
- - -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- - --------------------------------------------------------
Max WA Min Max
Property DSCR LTV LTV LTV
Type Ratio Ratio Ratio
- - --------------------------------------------------------
Retail 1.82 73.0 50.5 80.0
- - --------------------------------------------------------
Anchored 1.80 73.3 50.5 80.0
- - --------------------------------------------------------
Unanchored 1.82 71.6 55.4 77.8
- - --------------------------------------------------------
Multifamily 1.72 76.8 58.8 80.0
- - --------------------------------------------------------
Conventional 1.72 76.9 58.8 80.0
- - --------------------------------------------------------
Section 42 1.24 75.2 73.5 79.9
- - --------------------------------------------------------
Office 2.13 69.5 28.0 78.8
- - --------------------------------------------------------
Hotel 2.05 71.3 54.4 77.4
- - --------------------------------------------------------
Full Service 1.49 73.2 67.2 77.4
- - --------------------------------------------------------
Limited Service 2.05 69.3 54.4 74.8
- - --------------------------------------------------------
Industrial/W'hse 1.74 68.5 55.5 80.0
- - --------------------------------------------------------
Health Care 1.57 75.7 73.8 79.6
- - --------------------------------------------------------
Assisted Living 1.57 74.0 74.0 74.0
- - --------------------------------------------------------
Assisted Living/Skilled 1.46 73.8 73.8 73.8
- - --------------------------------------------------------
Nursing
- - --------------------------------------------------------
Congregate Care 1.37 79.6 79.6 79.6
- - --------------------------------------------------------
Self Storage 1.60 66.0 58.2 71.8
- - --------------------------------------------------------
Mobile Home Park 1.37 75.3 75.3 75.3
- - --------------------------------------------------------
Parking Garage 1.36 72.5 72.5 72.5
========================================================
Total/Avg/Min/Max/ 2.13 73.0 28.0 80.0
Wtd.Avg.:
- - --------------------------------------------------------
<PAGE>
COLLATERAL OVERVIEW (as of the cut-off date - February 1, 1998):
LOAN SIZE DISTRIBUTION
================================================================================
% of Initial
Balance Ranges ($) # of Loans Pool Balance
- - --------------------------------------------------------------------------------
613,738 - 2,000,000 30 2.6
- - --------------------------------------------------------------------------------
2,000,001 - 4,000,000 72 11.9
- - --------------------------------------------------------------------------------
4,000,001 - 6,000,000 61 17.4
- - --------------------------------------------------------------------------------
6,000,001 - 8,000,000 27 10.6
- - --------------------------------------------------------------------------------
8,000,001 - 10,000,000 20 10.7
- - --------------------------------------------------------------------------------
10,000,001 - 12,000,000 14 9.1
- - --------------------------------------------------------------------------------
12,000,001 - 14,000,000 9 6.7
- - --------------------------------------------------------------------------------
14,000,001 - 16,000,000 7 5.9
- - --------------------------------------------------------------------------------
16,000,001 - 18,000,000 6 5.9
- - --------------------------------------------------------------------------------
18,000,001 - 20,000,000 8 8.8
- - --------------------------------------------------------------------------------
20,000,001 - 22,000,000 1 1.2
- - --------------------------------------------------------------------------------
22,000,001 - 24,000,000 1 1.3
- - --------------------------------------------------------------------------------
32,000,001 - 34,000.000 1 1.9
- - --------------------------------------------------------------------------------
40,000,001 - 42,000,000 1 2.4
- - --------------------------------------------------------------------------------
62,000,001 - 62,467,513 1 3.6
================================================================================
Minimum Balance: $613,738
Maximum Balance: $62,467,513
Average Balance: $6,671,111
GROSS RATE DISTRIBUTION
==============================================
Gross Rate % of Initial
(%) Pool Balance
----------------------------------------------
6.750 - 6.999% 3.9
----------------------------------------------
7.000 - 7.249% 13.4
----------------------------------------------
7.250 - 7.499% 29.5
----------------------------------------------
7.500 - 7.749% 27.9
----------------------------------------------
7.750 - 7.999% 7.7
----------------------------------------------
8.000 - 8.249% 9.4
----------------------------------------------
8.250 - 8.499% 2.8
----------------------------------------------
8.500- 8.749% 2.2
----------------------------------------------
8.750 - 8.999% 1.9
----------------------------------------------
9.000 - 9.170% 1.3
==============================================
Minimum WAC: 6.970%
Maximum WAC. 9.170%
Weighted Avg. WAC: 7.603%
REMAINING TERMS TO MATURITY*
==============================================
% of Initial
Months Pool Balance
----------------------------------------------
49 - 60 4.4
----------------------------------------------
73 - 84 12.7
----------------------------------------------
109 - 120 59.6
----------------------------------------------
133 - 144 1.1
----------------------------------------------
145 - 156 1.1
----------------------------------------------
169 - 180 11.9
----------------------------------------------
217 - 228 0.1
----------------------------------------------
229 - 240 5.7
----------------------------------------------
265 - 276 0.2
----------------------------------------------
289 - 300 2.5
----------------------------------------------
349 - 360 0.7
==============================================
Minimum Remaining
Term to Maturity: 58 months
Maximum Remaining
Term to Maturity: 360 months
Weighted Average
Remaining Term to Maturity: 131 months
REMAINING AMORTIZATION TERM
==============================================
% of Initial
Months Pool Balance
----------------------------------------------
181 - 192 0.1
----------------------------------------------
217 - 228 0.1
----------------------------------------------
229 - 240 6.4
----------------------------------------------
265 - 276 0.5
----------------------------------------------
277 - 288 0.2
----------------------------------------------
289 - 300 17.0
----------------------------------------------
313 - 324 0.1
----------------------------------------------
325 - 336 0.3
----------------------------------------------
349 - 360 75.2
==============================================
Minimum Remaining
Amortization Term: 189 months
Maximum Remaining
Amortization Term: 360 months
Weighted Average
Amortization Term: 338 months
* Assumes ARD Loans mature and pay off on their anticipated repayment date.
B-11
<PAGE>
COLLATERAL OVERVIEW (as of the cut-off date - February 1, 1998):
DEBT SERVICE COVERAGE RATIOS
==============================================
% of Initial
DSCR Ranges (x) Pool Balance
----------------------------------------------
1.19 - 1.24 14.7
----------------------------------------------
1.25 - 1.29 24.7
----------------------------------------------
1.30 - 1.34 19.7
----------------------------------------------
1.35 - 1.39 17.0
----------------------------------------------
1.40 - 1.44 6.8
----------------------------------------------
1.45 - 1.49 8.1
----------------------------------------------
1.50 - 1.54 1.5
----------------------------------------------
1.55 - 1.59 2.7
----------------------------------------------
1.60 - 1.64 1.2
----------------------------------------------
1.65 - 1.69 1.0
----------------------------------------------
1.70 - 1.74 0.8
----------------------------------------------
1.80 - 1.84 1.3
----------------------------------------------
1.90 - 1.94 0.2
----------------------------------------------
2.05 - 2.14 0.6
==============================================
Minimum DSCR: 1.19x
Maximum DSCR: 2.13x
Weighted Average DSCR: 1.35x
LOAN TO VALUE % (LTV)
==============================================
% of Initial
LTV Ranges Pool Balance
----------------------------------------------
25.01 - 30.00 0.2
----------------------------------------------
45.01 - 50.00 0.6
----------------------------------------------
50.01 - 55.00 2.3
----------------------------------------------
55.01 - 60.00 2.8
----------------------------------------------
60.01 - 65.00 3.0
----------------------------------------------
65.01 - 70.00 11.7
----------------------------------------------
70.01 - 75.00 43.4
----------------------------------------------
75.01 - 80.00 36.1
==============================================s
Minimum LTV: 28.0%
Maximum LTV: 80.0%
Weighted Average LTV: 73.0%
STATE DISTRIBUTION
==============================================
% of Initial
State Pool Balance
----------------------------------------------
Florida 9.7
----------------------------------------------
Texas 9.6
----------------------------------------------
New York 8.7
----------------------------------------------
California 8.2
----------------------------------------------
Maryland 5.9
----------------------------------------------
Pennsylvania 5.9
----------------------------------------------
Nevada 4.1
----------------------------------------------
Ohio 4.0
----------------------------------------------
Connecticut 3.7
----------------------------------------------
Arizona 3.6
----------------------------------------------
Other* 36.8
==============================================
* No other state greater than 3.5%.
B-12
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class A1 Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
---------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
100.04 6.299% 3.67 6.299% 3.66 6.299% 3.66 6.299% 3.65 6.298% 3.64
100.06 6.282% 3.67 6.282% 3.66 6.282% 3.66 6.282% 3.65 6.281% 3.65
100.08 6.265% 3.67 6.265% 3.66 6.265% 3.66 6.265% 3.65 6.264% 3.65
100.10 6.248% 3.67 6.248% 3.66 6.248% 3.66 6.248% 3.66 6.247% 3.65
100.12 6.231% 3.67 6.231% 3.66 6.231% 3.66 6.231% 3.66 6.230% 3.65
100.14 6.215% 3.67 6.214% 3.67 6.214% 3.66 6.214% 3.66 6.213% 3.65
100.16 6.198% 3.67 6.197% 3.67 6.197% 3.66 6.197% 3.66 6.197% 3.65
100.18 6.181% 3.67 6.181% 3.67 6.180% 3.66 6.180% 3.66 6.180% 3.65
100.20 6.164% 3.67 6.164% 3.67 6.164% 3.66 6.163% 3.66 6.163% 3.65
100.22 6.147% 3.67 6.147% 3.67 6.147% 3.67 6.146% 3.66 6.146% 3.65
100.24 6.131% 3.67 6.130% 3.67 6.130% 3.67 6.130% 3.66 6.129% 3.65
100.26 6.114% 3.67 6.113% 3.67 6.113% 3.67 6.113% 3.66 6.112% 3.65
100.28 6.097% 3.68 6.097% 3.67 6.096% 3.67 6.096% 3.66 6.095% 3.66
Weighted Average
Life (yrs.) 4.42 4.42 4.41 4.40 4.39
First Principal
Payment Date 18-Mar-98 18-Mar-98 18-Mar-98 18-Mar-98 18-Mar-98
Last Principal
Payment Date 18-Nov-04 18-Oct-04 18-Oct-04 18-Oct-04 18-Sep-04
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class A2 Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
----------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
100.04 6.414% 5.90 6.414% 5.89 6.414% 5.89 6.414% 5.88 6.413% 5.86
100.06 6.403% 5.90 6.403% 5.89 6.403% 5.89 6.403% 5.88 6.403% 5.86
100.08 6.393% 5.90 6.393% 5.89 6.393% 5.89 6.393% 5.88 6.392% 5.86
100.10 6.382% 5.90 6.382% 5.89 6.382% 5.89 6.382% 5.88 6.382% 5.87
100.12 6.372% 5.90 6.372% 5.90 6.372% 5.89 6.372% 5.88 6.371% 5.87
100.14 6.361% 5.90 6.361% 5.90 6.361% 5.89 6.361% 5.88 6.361% 5.87
100.16 6.351% 5.90 6.351% 5.90 6.351% 5.89 6.351% 5.88 6.350% 5.87
100.18 6.341% 5.90 6.340% 5.90 6.340% 5.89 6.340% 5.88 6.340% 5.87
100.20 6.330% 5.91 6.330% 5.90 6.330% 5.89 6.330% 5.89 6.329% 5.87
100.22 6.320% 5.91 6.319% 5.90 6.319% 5.89 6.319% 5.89 6.319% 5.87
100.24 6.309% 5.91 6.309% 5.90 6.309% 5.89 6.309% 5.89 6.308% 5.87
100.26 6.299% 5.91 6.299% 5.90 6.298% 5.90 6.298% 5.89 6.298% 5.87
100.28 6.288% 5.91 6.288% 5.90 6.288% 5.90 6.288% 5.89 6.287% 5.87
Weighted Average
Life (yrs.) 7.75 7.74 7.73 7.72 7.69
First Principal
Payment Date 18-Nov-04 18-Oct-04 18-Oct-04 18-Oct-04 18-Sep-04
Last Principal
Payment Date 18-Aug-07 18-Jul-07 18-Jul-07 18-Jul-07 18-Jun-07
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class A3 Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
---------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
99.24 6.560% 6.97 6.560% 6.96 6.560% 6.96 6.560% 6.95 6.560% 6.94
99.28 6.542% 6.97 6.542% 6.97 6.542% 6.96 6.542% 6.95 6.542% 6.94
100.00 6.524% 6.97 6.524% 6.97 6.524% 6.96 6.524% 6.96 6.524% 6.94
100.04 6.507% 6.98 6.507% 6.97 6.507% 6.97 6.506% 6.96 6.506% 6.94
100.08 6.489% 6.98 6.489% 6.97 6.489% 6.97 6.489% 6.96 6.489% 6.94
100.12 6.471% 6.98 6.471% 6.98 6.471% 6.97 6.471% 6.96 6.471% 6.95
100.16 6.453% 6.98 6.453% 6.98 6.453% 6.97 6.453% 6.97 6.453% 6.95
100.20 6.436% 6.99 6.436% 6.98 6.436% 6.97 6.435% 6.97 6.435% 6.95
100.24 6.418% 6.99 6.418% 6.98 6.418% 6.98 6.418% 6.97 6.417% 6.95
100.28 6.401% 6.99 6.400% 6.99 6.400% 6.98 6.400% 6.97 6.400% 6.96
101.00 6.383% 6.99 6.383% 6.99 6.383% 6.98 6.382% 6.98 6.382% 6.96
101.04 6.365% 7.00 6.365% 6.99 6.365% 6.98 6.365% 6.98 6.364% 6.96
101.08 6.348% 7.00 6.348% 6.99 6.348% 6.99 6.347% 6.98 6.347% 6.96
Weighted Average
Life (yrs.) 9.70 9.69 9.68 9.67 9.64
First Principal
Payment Date 18-Aug-07 18-Jul-07 18-Jul-07 18-Jul-07 18-Jun-07
Last Principal
Payment Date 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class B Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
---------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
99.24 6.672% 7.01 6.672% 7.01 6.672% 7.01 6.672% 7.01 6.672% 7.01
99.28 6.655% 7.01 6.655% 7.01 6.655% 7.01 6.655% 7.01 6.655% 7.01
100.00 6.637% 7.01 6.637% 7.01 6.637% 7.01 6.637% 7.01 6.637% 7.01
100.04 6.619% 7.02 6.619% 7.02 6.619% 7.02 6.619% 7.02 6.619% 7.02
100.08 6.602% 7.02 6.602% 7.02 6.602% 7.02 6.602% 7.02 6.602% 7.02
100.12 6.584% 7.02 6.584% 7.02 6.584% 7.02 6.584% 7.02 6.584% 7.02
100.16 6.566% 7.02 6.566% 7.02 6.566% 7.02 6.566% 7.02 6.566% 7.02
100.20 6.549% 7.03 6.549% 7.03 6.549% 7.03 6.549% 7.03 6.549% 7.03
100.24 6.531% 7.03 6.531% 7.03 6.531% 7.03 6.531% 7.03 6.531% 7.03
100.28 6.514% 7.03 6.514% 7.03 6.514% 7.03 6.514% 7.03 6.514% 7.03
101.00 6.496% 7.03 6.496% 7.03 6.496% 7.03 6.496% 7.03 6.496% 7.03
101.04 6.479% 7.04 6.479% 7.04 6.479% 7.04 6.479% 7.04 6.479% 7.04
101.08 6.461% 7.04 6.461% 7.04 6.461% 7.04 6.461% 7.04 6.461% 7.04
Weighted Average
Life (yrs.) 9.85 9.85 9.85 9.85 9.85
First Principal
Payment Date 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08
Last Principal
Payment Date 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class C Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
---------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
99.16 6.800% 6.98 6.800% 6.98 6.800% 6.98 6.800% 6.98 6.800% 6.98
99.20 6.782% 6.98 6.782% 6.98 6.782% 6.98 6.782% 6.98 6.782% 6.98
99.24 6.764% 6.98 6.764% 6.98 6.764% 6.98 6.764% 6.98 6.764% 6.98
99.28 6.746% 6.98 6.746% 6.98 6.746% 6.98 6.746% 6.98 6.746% 6.98
100.00 6.729% 6.99 6.729% 6.99 6.729% 6.99 6.729% 6.99 6.729% 6.99
100.04 6.711% 6.99 6.711% 6.99 6.711% 6.99 6.711% 6.99 6.711% 6.99
100.08 6.693% 6.99 6.693% 6.99 6.693% 6.99 6.693% 6.99 6.693% 6.99
100.12 6.676% 6.99 6.676% 6.99 6.676% 6.99 6.676% 6.99 6.676% 6.99
100.16 6.658% 7.00 6.658% 7.00 6.658% 7.00 6.658% 7.00 6.658% 7.00
100.20 6.640% 7.00 6.640% 7.00 6.640% 7.00 6.640% 7.00 6.640% 7.00
100.24 6.623% 7.00 6.623% 7.00 6.623% 7.00 6.623% 7.00 6.623% 7.00
100.28 6.605% 7.00 6.605% 7.00 6.605% 7.00 6.605% 7.00 6.605% 7.00
101.00 6.588% 7.01 6.588% 7.01 6.588% 7.01 6.588% 7.01 6.588% 7.01
Weighted Average
Life (yrs.) 9.86 9.86 9.86 9.86 9.86
First Principal
Payment Date 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08 18-Jan-08
Last Principal
Payment Date 18-Feb-08 18-Feb-08 18-Feb-08 18-Feb-08 18-Feb-08
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class D Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
---------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
98.16 7.233% 7.74 7.234% 7.73 7.234% 7.71 7.234% 7.70 7.235% 7.68
98.24 7.201% 7.75 7.201% 7.73 7.201% 7.72 7.202% 7.71 7.202% 7.68
99.00 7.168% 7.76 7.169% 7.74 7.169% 7.72 7.169% 7.71 7.169% 7.69
99.08 7.136% 7.76 7.136% 7.75 7.136% 7.73 7.137% 7.72 7.137% 7.70
99.16 7.104% 7.77 7.104% 7.75 7.104% 7.74 7.104% 7.72 7.104% 7.70
99.24 7.072% 7.78 7.072% 7.76 7.072% 7.74 7.072% 7.73 7.072% 7.71
100.00 7.040% 7.78 7.040% 7.77 7.040% 7.75 7.040% 7.74 7.040% 7.72
100.08 7.008% 7.79 7.008% 7.77 7.008% 7.76 7.008% 7.74 7.008% 7.72
100.16 6.977% 7.80 6.976% 7.78 6.976% 7.76 6.976% 7.75 6.976% 7.73
100.24 6.945% 7.80 6.945% 7.78 6.944% 7.77 6.944% 7.76 6.944% 7.74
101.00 6.913% 7.81 6.913% 7.79 6.913% 7.78 6.912% 7.76 6.912% 7.74
101.08 6.882% 7.82 6.882% 7.80 6.881% 7.78 6.881% 7.77 6.880% 7.75
101.16 6.851% 7.82 6.850% 7.80 6.850% 7.79 6.849% 7.78 6.849% 7.76
Weighted Average
Life (yrs.) 11.88 11.84 11.80 11.77 11.72
First Principal
Payment Date 18-Feb-08 18-Feb-08 18-Feb-08 18-Feb-08 18-Feb-08
Last Principal
Payment Date 18-Apr-12 18-Feb-12 18-Jan-12 18-Dec-11 18-Oct-11
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
Pre-Tax Yield to Maturity and Modified Duration of Class E Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
----------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
95.00 7.650% 8.63 7.651% 8.60 7.653% 8.58 7.654% 8.56 7.656% 8.53
95.08 7.619% 8.63 7.621% 8.61 7.622% 8.59 7.623% 8.57 7.625% 8.54
95.16 7.589% 8.64 7.591% 8.62 7.592% 8.60 7.593% 8.58 7.595% 8.55
95.24 7.559% 8.65 7.561% 8.63 7.562% 8.61 7.563% 8.59 7.564% 8.56
96.00 7.529% 8.66 7.531% 8.64 7.532% 8.62 7.533% 8.60 7.534% 8.57
96.08 7.500% 8.67 7.501% 8.65 7.502% 8.62 7.503% 8.61 7.504% 8.58
96.16 7.470% 8.68 7.471% 8.66 7.472% 8.63 7.473% 8.61 7.474% 8.58
96.24 7.440% 8.69 7.441% 8.66 7.442% 8.64 7.443% 8.62 7.444% 8.59
97.00 7.411% 8.70 7.412% 8.67 7.413% 8.65 7.413% 8.63 7.414% 8.60
97.08 7.382% 8.70 7.382% 8.68 7.383% 8.66 7.384% 8.64 7.385% 8.61
97.16 7.352% 8.71 7.353% 8.69 7.354% 8.67 7.354% 8.65 7.355% 8.62
97.24 7.323% 8.72 7.324% 8.70 7.324% 8.68 7.325% 8.66 7.326% 8.63
98.00 7.294% 8.73 7.295% 8.71 7.295% 8.68 7.296% 8.67 7.296% 8.64
Weighted Average
Life (yrs.) 14.48 14.42 14.35 14.30 14.21
First Principal
Payment Date 18-Apr-12 18-Feb-12 18-Jan-12 18-Dec-11 18-Oct-11
Last Principal
Payment Date 18-Nov-12 18-Nov-12 18-Nov-12 18-Oct-12 18-Sep-12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Weighted Average Life, First Principal Payment Date, Last Principal Payment Date,
and Pre-Tax Yield to Maturity of Class IO Certificates
0% CPR during lockout, defeasance, YM or PP - otherwise at indicated CPR
----------------------------------------------------------------------------------
Price (32nds) 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- - ------------- --------------- --------------- --------------- --------------- ----------------
CBE Modified CBE Modified CBE Modified CBE Modified CBE Modified
Yield Duration Yield Duration Yield Duration Yield Duration Yield Duration
(%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.) (%) (yrs.)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6.12 10.155% 10.127% 10.103% 10.080% 10.034%
6.14 9.916% 9.887% 9.863% 9.840% 9.793%
6.16 9.681% 9.652% 9.627% 9.604% 9.557%
6.18 9.450% 9.420% 9.395% 9.372% 9.324%
6.20 9.222% 9.192% 9.166% 9.143% 9.095%
6.22 8.998% 8.967% 8.942% 8.918% 8.870%
6.24 8.777% 8.746% 8.720% 8.696% 8.648%
6.26 8.560% 8.528% 8.502% 8.478% 8.429%
6.28 8.346% 8.314% 8.287% 8.263% 8.214%
6.30 8.135% 8.103% 8.076% 8.052% 8.002%
7.00 7.928% 7.895% 7.868% 7.843% 7.793%
7.02 7.724% 7.690% 7.663% 7.638% 7.588%
7.04 7.522% 7.488% 7.460% 7.435% 7.385%
Weighted Average
Life (yrs.) 9.62 9.59 9.57 9.55 9.52
First Principal
Payment Date 18-Mar-98 18-Mar-98 18-Mar-98 18-Mar-98 18-Mar-98
Last Principal
Payment Date 18-Feb-28 18-Feb-28 18-Feb-28 18-Feb-28 18-Feb-28
</TABLE>
<PAGE>
(1) "LB98C1.XLS" is a Microsoft Excel*, Version 5.0 spreadsheet that provides in
electronic format certain loan-level information shown in Annex A, as well as
certain Mortgage Loan and Mortgaged Property information shown in the Prospectus
Supplement. This spreadsheet can be put on a user-specified hard drive or
network drive. Open this file as you would normally open any spreadsheet in
Microsoft Excel. After the file is opened, a securities law legend will be
displayed. READ THE LEGEND CAREFULLY. To view the Annex A data, see the
worksheet labeled "Annex A".
(2) "CSSA.XLS" is a Microsoft Excel, Version 5.0 spreadsheet that provides in
electronic format certain loan- and property-level information. This spreadsheet
can be put on a user-specified hard drive or network drive. The information
contained in this file is the CSSA format. As described under "Description of
the Certificates--Reports to Certificateholders; Available Information" in the
Prospectus Supplement, each month the Trustee will make available through its
bulletin board systems an electronic file in the CSSA format updating and
supplementing the information contained in the "CSSA.XLS" file. Open this file
as you would normally open any spreadsheet in Microsoft Excel. After the file is
opened, a securities law legend will be displayed. READ THE LEGEND CAREFULLY. To
view the CSSA loan-level data, see the worksheet labeled "CSSALOAN"; and to view
the CSSA property-level data, see the worksheet labeled "CSSAPROP".
* Microsoft Excel is a registered trademark of Microsoft Corporation.
<PAGE>
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS
SUPPLEMENT OR THE PROSPECTUS AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE
DEPOSITOR OR THE UNDERWRITER. THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS DO
NOT CONSTITUTE AN OFFER OF ANY SECURITIES OTHER THAN THOSE TO WHICH THEY RELATE
OR AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, TO ANY PERSON IN ANY
JURISDICTION WHERE SUCH AN OFFER WOULD BE UNLAWFUL. NEITHER THE DELIVERY OF THIS
PROSPECTUS SUPPLEMENT AND THE PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER
ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN
IS CORRECT AS OF ANY TIME SUBSEQUENT TO THEIR RESPECTIVE DATES.
--------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PROSPECTUS SUPPLEMENT
- - -------------------------------------------------------------------------------------
<S> <C>
PAGE
---------
SUMMARY OF PROSPECTUS SUPPLEMENT.......................................... S-6
RISK FACTORS.............................................................. S-29
DESCRIPTION OF THE MORTGAGE POOL.......................................... S-38
SERVICING OF THE MORTGAGE LOANS........................................... S-61
DESCRIPTION OF THE CERTIFICATES........................................... S-79
YIELD AND MATURITY CONSIDERATIONS......................................... S-102
USE OF PROCEEDS........................................................... S-111
CERTAIN FEDERAL INCOME TAX CONSEQUENCES................................... S-111
ERISA CONSIDERATIONS...................................................... S-114
LEGAL INVESTMENT.......................................................... S-117
METHOD OF DISTRIBUTION.................................................... S-118
LEGAL MATTERS............................................................. S-119
RATINGS................................................................... S-119
INDEX OF PRINCIPAL DEFINITIONS............................................ S-120
ANNEX A - CERTAIN CHARACTERISTICS OF MORTGAGE LOANS....................... A-1
ANNEX B - TERM SHEET...................................................... B-1
ANNEX C - FORM OF DISTRIBUTION DATE STATEMENT............................. C-1
ANNEX D - FORM OF DELINQUENT LOAN STATUS REPORT........................... D-1
ANNEX E - FORM OF HISTORICAL LOAN MODIFICATION REPORT..................... E-1
ANNEX F - FORM OF HISTORICAL LOSS ESTIMATE REPORT......................... F-1
ANNEX G - FORM OF REO STATUS REPORT....................................... G-1
ANNEX H - FORM OF WATCH LIST REPORT....................................... H-1
ANNEX I - FORM OF OPERATING STATEMENT ANALYSIS............................ I-1
ANNEX J - FORM OF NOI ADJUSTMENT WORKSHEET................................ J-1
ANNEX K - FORM OF COMPARATIVE FINANCIAL STATUS REPORT..................... K-1
</TABLE>
<TABLE>
<CAPTION>
PROSPECTUS
- - -------------------------------------------------------------------------------------
<S> <C>
PROSPECTUS SUPPLEMENT..................................................... 5
ADDITIONAL INFORMATION.................................................... 5
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE........................... 6
SUMMARY OF TERMS.......................................................... 7
RISK FACTORS.............................................................. 25
DESCRIPTION OF THE SECURITIES............................................. 31
YIELD AND PREPAYMENT CONSIDERATIONS....................................... 40
SECURITY FOR THE BONDS AND CERTIFICATES................................... 43
SERVICING OF MORTGAGE LOANS............................................... 52
ENHANCEMENT............................................................... 56
DESCRIPTION OF INSURANCE ON THE MORTGAGE LOANS............................ 59
CERTAIN LEGAL ASPECTS OF MORTGAGE LOANS................................... 60
THE INDENTURE............................................................. 74
THE TRUST AGREEMENT....................................................... 79
THE ISSUER................................................................ 86
USE OF PROCEEDS........................................................... 87
LIMITATIONS ON ISSUANCE OF BEARER SECURITIES.............................. 87
FEDERAL INCOME TAX CONSIDERATIONS......................................... 88
STATE AND LOCAL TAX CONSIDERATIONS........................................ 104
ERISA CONSIDERATIONS...................................................... 104
LEGAL INVESTMENT.......................................................... 107
PLAN OF DISTRIBUTION...................................................... 109
LEGAL MATTERS............................................................. 110
GLOSSARY.................................................................. 111
</TABLE>
$1,516,147,000
(APPROXIMATE)
LB COMMERCIAL MORTGAGE TRUST
COMMERCIAL MORTGAGE
PASS-THROUGH CERTIFICATES
SERIES 1998-C1
---------------------
PROSPECTUS SUPPLEMENT
MARCH 9, 1998
------------------------
LEHMAN BROTHERS
FIRST UNION CAPITAL
MARKETS CORP.
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
