SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 15, 1999
(September 30, 1999)
FRANKLIN RECEIVABLES LLC
(FRANKLIN AUTO TRUST 1998-1)
(FRANKLIN AUTO TRUST 1999-1)
(Exact name of registrant as specified in its charter)
.... DELAWARE ................. 333-56869....... 94-3301790
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
47 WEST 200 SOUTH, SUITE 500, SALT LAKE CITY, UTAH ........ 84101...
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code..(801) 238-6700
-------------------------------------------------
(Former name or former address, if changed since last report)
Page 1
<PAGE>
Item 5. Other Events
The Monthly Servicing Report relating to the Franklin Auto Trust 1998-1 for
the Collection Period ended September 30, 1999 and the Franklin Auto Trust
1999-1 for the Collection Period ended September 30, 1999 are attached hereto as
Exhibit 19(a) and 19(b) and are incorporated herein by this reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c)Exhibits
Exhibit 19(a) - Franklin Auto Trust 1998-1 Monthly Servicing Report for the
Collection Period ending September 30, 1999
Exhibit 19(b) - Franklin Auto Trust 1999-1 Monthly Servicing Report for the
Collection Period ending September 30, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the date indicated.
FRANKLIN RECEIVABLES LLC
(Registrant)
By: Franklin Capital Corp.
Date: October [ ], 1999 /s/ Jennifer J. Bolt
JENNIFER J. BOLT
President
Exhibits
Exhibit 19(a) - Franklin Auto Trust 1998-1 Monthly Servicing Report
for the Collection Period ending September 30, 1999.
19(b) - Franklin Auto Trust 1999-1 Monthly Servicing Report
for the Collection Period ending September 30, 1999.
Page 2
Franklin Auto Trust 1998-1
Monthly Servicing Report
Collection Period: September 1999
Distribution Date: October 15, 1999
Number of Days in Distribution Period: 30
<TABLE>
<CAPTION>
Section I. Original Deal Parameters
A. Original Portfolio Principle Weighted Average
Number of Principal Coupon Original Term Remaining Term Seasoning
Contracts Balance (WAC) (Months) (Months) (Months)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime 7,160 78,430,885.03 9.68% 62.45 45.10 17.36
ii. Non-Prime 5,194 45,967,290.63 13.83% 63.18 39.53 23.65
iii. Sub-Prime 924 6,996,314.98 18.77% 58.47 39.66 18.81
iv. Total Portfolio 13,278 131,394,490.64 11.62% 62.49 42.86 19.63
</TABLE>
B. Bonds Issued
Original
Principal Legal Final
Balance Coupon Maturity CUSIP
----------------------------------------------------------
i. Class A-1 Notes 109,000,000.00 5.50% 1/15/02 35242RAA2
ii. Class A-2 Notes 22,394,000.00 5.65% 1/15/06 35242RAB0
C. Spread Account
i. Initial Cash Deposit 1,313,945.00
ii. Spread Account Floor Amount 2,627,890.00
iii. Specified Spread Account Amount 6% of Outstanding Pool Balance
iv. Maximum Spread Account Amount 12% of Outstanding Pool Balance
v. Initial Payment Provider Commitment 6,569,725.00
Page 3
<PAGE>
<TABLE>
<CAPTION>
Section II. Deal Status as of Previous
Distribution Date
A. Portfolio Principle Weighted Average
Number of Principal Coupon Original Term Remaining Term Seasoning
Contracts Balance (WAC) (Months) (Months) (Months)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime Loans 4,993 44,863,562.34 9.73% 63.16 36.87 26.29
ii. Non-Prime Loans 3,456 24,424,622.01 14.34% 63.54 33.55 30.00
iii. Sub-Prime Loans 574 3,636,433.07 19.35% 58.95 34.19 24.76
iv. Total Loans 9,023 72,924,617.42 11.75% 63.08 35.63 27.45
</TABLE>
B. Bonds Outstanding
Principal Unpaid Interest
Balance Shortfall Amount
---------------------------------
i. Class A-1 Notes 50,530,617.42 0.00
ii. Class A-2 Notes 22,394,000.00 0.00
C. Spread Account
i. Spread Account Cash Balance 2,627,890.00
ii. Payment Provider Commitment 1,747,587.05
D. Shortfall Amounts
i. Base Servicing Fee Shortfall 0.00
ii. Surety Fee Shortfall 0.00
iii.Unreimbursed Surety Draws 0.00
iv. Unreimbursed Insurer Optional Deposit 0.00
v. Excess Servicing Fee Shortfall 0.00
Page 4
<PAGE>
<TABLE>
<CAPTION>
Section II. Deal Status as of Previous
Distribution Date
E. Delinquencies in Period
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
---------------------------------------------------------------------------------------------
Principal Balance
<S> <C> <C> <C> <C> <C> <C>
i. Prime 180,532.63 45,909.41 52,240.55 39,535.82 28,842.10 22,882.68
ii. Non-Prime 415,533.69 151,788.12 62,310.57 23,083.36 74,971.34 97,529.48
iii. Sub-Prime 54,345.10 26,669.16 3,734.11 0.00 23,336.65 13,154.86
iv. Total Portfolio 650,411.42 224,366.69 118,285.23 62,619.18 127,150.09 133,567.02
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
----------------------------------------------------------------------------------------------------
Number of Contracts
i. Prime 25 8 4 3 3 6
ii. Non-Prime 100 25 6 3 9 18
iii. Sub-Prime 18 6 2 0 4 7
iv. Total Portfolio 143 39 12 6 16 31
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
----------------------------------------------------------------------------------------------------
Principal Balance as a
% of End of Month Balance
i. Prime 0.40% 0.10% 0.12% 0.09% 0.06% 0.05%
ii. Non-Prime 1.70% 0.62% 0.26% 0.09% 0.31% 0.40%
iii. Sub-Prime 1.49% 0.73% 0.10% 0.00% 0.64% 0.36%
iv. Total Portfolio 0.89% 0.31% 0.16% 0.09% 0.17% 0.18%
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
----------------------------------------------------------------------------------------------------
Number of Contracts as a
% of Previous Number
i. Prime 0.50% 0.16% 0.08% 0.06% 0.06% 0.12%
ii. Non-Prime 2.89% 0.72% 0.17% 0.09% 0.26% 0.52%
iii. Sub-Prime 3.14% 1.05% 0.35% 0.00% 0.70% 1.22%
iv. Total Portfolio 1.58% 0.43% 0.13% 0.07% 0.18% 0.34%
</TABLE>
Page 5
<PAGE>
<TABLE>
<CAPTION>
Section III. Collection Period Activity and
Current Status
A. Portfolio Principle Weighted Average
Number of Principal Coupon Original Term Remaining Term Seasoning
Contracts Balance (WAC) (Months) (Months) (Months)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime 4,772 42,640,003.75 9.74% 63.21 36.18 27.03
ii. Non-Prime 3,270 23,058,747.81 14.39% 63.57 33.09 30.48
iii. Sub-Prime 529 3,376,130.85 19.40% 58.97 33.62 25.35
iv. Total Portfolio 8,571 69,074,882.41 11.76% 63.12 35.02 28.10
</TABLE>
<TABLE>
<CAPTION>
B. Delinquencies in Period
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
---------------------------------------------------------------------------------------------
Principal Balance
<S> <C> <C> <C> <C> <C> <C>
i. Prime 219,992.68 90,734.50 31,524.65 61,708.81 50,957.62 30,653.87
ii. Non-Prime 537,438.27 125,859.58 133,422.02 35,067.69 229,477.25 44,902.78
iii. Sub-Prime 121,633.20 3,125.15 21,139.51 2,185.66 24,933.45 33,715.37
iv. Total Portfolio 879,064.15 219,719.23 186,086.18 98,962.16 305,368.32 109,272.02
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
---------------------------------------------------------------------------------------------
Number of Contracts
i. Prime 36 10 4 4 5 5
ii. Non-Prime 113 35 10 4 20 14
iii. Sub-Prime 29 3 3 1 3 10
iv. Total Portfolio 178 48 17 9 28 29
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
---------------------------------------------------------------------------------------------
Principal Balance as a
% of Current Balance
i. Prime 0.52% 0.21% 0.07% 0.14% 0.12% 0.07%
ii. Non-Prime 2.33% 0.55% 0.58% 0.15% 1.00% 0.19%
iii. Sub-Prime 3.60% 0.09% 0.63% 0.06% 0.74% 1.00%
iv. Total Portfolio 1.27% 0.32% 0.27% 0.14% 0.44% 0.16%
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
---------------------------------------------------------------------------------------------
Number of Contracts as a
% of Current Number
i. Prime 0.75% 0.21% 0.08% 0.08% 0.10% 0.10%
ii. Non-Prime 3.46% 1.07% 0.31% 0.12% 0.61% 0.43%
iii. Sub-Prime 5.48% 0.57% 0.57% 0.19% 0.57% 1.89%
iv. Total Portfolio 2.08% 0.56% 0.20% 0.11% 0.33% 0.34%
</TABLE>
Page 6
<PAGE>
Section III. Collection Period Activity and
Current Status
C. Collections
i. Simple Interest Contracts
a. Interest Collections 425,479.41
b. Principal Collections 2,211,006.34
ii. Rule of 78's Contracts
a. Interest Collections 283,442.66
b. Principal Collections 1,528,448.99
iii. Net Liquidation Proceeds 23,573.05
iv. Post Disposition Recoveries 16,212.95
v. Rebates of Capitalized Insurance Premiums 0.00
vi. Repurchase Amounts
a. Interest 10.15
b. Principal 1,007.66
D. Payaheads
i Beginning Payahead Account Balance 391,204.48
ii. Deposit to Payahead Account
a. Principal & Interest Collections 61,375.89
iii. Withdrawal from Payahead Account
a. Principal & Interest Collections 81,857.64
iv. Net Change in Payahead Account
a. Principal & Interest Collections -20,481.75
v. Ending Payahead Account Balance 370,722.73
E. Total Available
i. Total Interest Collections 708,932.22
ii. Total Principal Collections 3,764,036.04
iii. Collected Funds 4,472,968.26
F. Month End Pool Balance
i. Beginning Pool Balance 72,924,617.42
ii. Principal Collections 3,764,036.04
iii. Realized and Cram-Down Losses 85,698.97
iv. Month End Pool Balance 69,074,882.41
Section IV. Distribution Calculations
A. Servicing Fee
i. Servicing Fee Rate
a. Prime Receivable @ 1.00% 37,386.30
b. Non-prime Receivables @ 1.50% 30,530.78
c. Sub-prime Receivables @ 2.00% 6,060.72
d. Total Servicing Fee 73,977.80
e. Total Receivables @ 1.25% 75,963.14
ii. Base Servicing Fee (less of id. and ie.) 73,977.80
iii. Previous Servicing Fee Shortfall 0.00
iv. Excess Servicing Fee 0.00
v. Previous Excess Servicing Fee Shortfall 0.00
vi. Total Excess Servicing Fee 0.00
vii. Supplemental Servicing Fee 54,624.08
viii.Supplemental Servicing Fee Shortfall 0.00
ix. Total Supplemental Servicing Fee 54,624.08
B. Surety Fee
i. Surety Fee Rate 0.15%
ii. Base Surety Fee 9,115.58
iii. Previous Surety Fee Shortfall 0.00
iv. Total Surety Fee Due 9,115.58
Page 7
<PAGE>
<TABLE>
<CAPTION>
C. Bond Interest
Accrued
Bond Previous Interest on
Interest Number of Days Current Interest Interest Total Bond
Rate in Period Interest Shortfall Shortfall Interest Due
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Class A-1 Notes 5.50% 30 231,598.66 0.00 0.00 231,598.66
ii. Class A-2 Notes 5.65% 30 105,438.42 0.00 0.00 105,438.42
iii. Total 5.55% 30 337,037.08 0.00 0.00 337,037.08
</TABLE>
Section IV. Distribution Calculations
D. Bond Principal
i. Beginning Note Balance 72,924,617.42
ii. Current Pool Balance 69,074,882.41
iii. Principal Distributable Amount 3,849,735.01
E. Total Required Distributions 420,130.46
F. Total Available Funds 4,489,181.21
G. Required Distribution Shortfall 0.00
H. Cash Available in Spread Account 2,627,890.00
I. Reserve Account Draw 0.00
J. Payment Provider Commitment 1,747,587.05
K. Payment Provider Required Payment Amount 0.00
L. Surety Draw 0.00
M. Insurer Optional Deposit 0.00
N. Total Cash Available for Distributions 4,489,181.21
Section V. Waterfall for Distributions
A. Total Available Funds 4,489,181.21
<TABLE>
<CAPTION>
Remaining
Amount Amount Amount
Due Paid Shortfall Available for
Distribution
----------------------------------------------------------------
<S> <C> <C> <C> <C>
B. Servicing Fee 73,977.80 73,977.80 0.00 4,415,203.41
C. Surety Fee 9,115.58 9,115.58 0.00 4,406,087.83
D. Note Interest 337,037.08 337,037.08 0.00 4,069,050.75
E. Principal Distributable Amount 3,849,735.01 3,849,735.01 0.00 219,315.74
F. Interest on Unreimbursed Surety Draws 0.00 0.00 0.00 219,315.74
G. Reimbursement of Previous Surety Draws
and Insurer Optional Deposits 0.00 0.00 0.00 219,315.74
H. Reserve Deposit 0.00 0.00 0.00 219,315.74
I. Payment of Excess Servicing Fee 0.00 0.00 0.00 219,315.74
J. Deposit to Certificate Distribution Account 219,315.74 219,315.74 0.00 0.00
</TABLE>
Page 8
<PAGE>
<TABLE>
<CAPTION>
Section VI. Bond Reconciliation
Beginning Principal Ending Interest Interest Interest
Balance Paid Balance Due Paid Shortfall
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A. Class A-1 Notes 50,530,617.42 3,849,735.01 46,680,882.41 231,598.66 231,598.66 0.00
B. Class A-2 Notes 22,394,000.00 0.00 22,394,000.00 105,438.42 105,438.42 0.00
C. Total 77,924,617.42 3,849,735.01 69,074,882.41 337,037.08 337,037.08 0.00
</TABLE>
Section VII. Spread Account Reconciliation
A. Net Yield Calculations
i. Current Month 3.49%
ii. Previous Month 2.87%
iii.Second Previous Month 4.05%
iv. Three-Month Average 3.48%
v. Previous Three Month Average 3.44%
vi. Second Previous Three Month Average 3.48%
B. Has Net Yield Trigger Event Occurred and
Is It Continuing? NO
C. Has Spread Account Deposit Event Occurred
(clauses (i) through (iv) or (iv)) NO
D. Has Spread Account Deposit Event Occurred
(clause (v))? NO
E. Cash Required to be on Deposit in
Spread Account 2,627,890.00
F. Combined Spread Account and Payment
Provider Commitment Required 4,144,492.94
<TABLE>
<CAPTION>
G. Allocations, Deposits and Reductions of the Spread Cash on Payment
Account and the Payment Provider Commitment Deposit in Provider
Amount Due Amount Paid Spread Account Commitment
------------------------------------------------------------------
<S> <C> <C> <C> <C>
i. Beginning Balance 0.00 0.00 2,627,890.00 1,747,587.05
ii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (i-iv or vi) 0.00 0.00 2,627,890.00 1,747,587.05
iii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (v) 0.00 0.00 2,627,890.00 1,747,587.05
iv. Deposit to Spread Account from Waterfall 0.00 0.00 2,627,890.00 1,747,587.05
v. Deposit to Spread Account from Supplemental Servicing Fee 0.00 0.00 2,627,890.00 1,747,587.05
vi. Deposit to Spread Account from Excess Servicing Fee 0.00 0.00 2,627,890.00 1,747,587.05
vii. Release from Spread Account when Net Yield
Trigger Event Has Not Occurred or Has Been Deemed Cured 0.00 0.00 2,627,890.00 1,747,587.05
viii.Release from Spread Account when Net Yield
Trigger Event Has Occurred and Has Not Been Deemed Cured 0.00 0.00 2,627,890.00 1,747,587.05
ix. Reduction of Payment Provider Commitment when Net Yield
Trigger Event Not Occurred or Deemed Cured 0.00 230,984.10 2,627,890.00 1,516,602.94
x. Withdrawal from Spread Account and/or Payment
Provider Commitment for Insurer Optional Deposit 0.00 0.00 2,627,890.00 1,516,602.94
xi. Reduction of Payment Provider Commitment when Net Yield
Trigger Event Has Occurred and Not Deemed Cured 0.00 0.00 2,627,890.00 1,516,602.94
</TABLE>
Page 9
<PAGE>
Section VIII. Surety Bond Reconciliation
A. Previously Unreimbursed Surety Bond Draws 0.00
B. Interest Rate on Outstanding Draws (PRIME + 1%) 9.25%
C. Current Interest Accrued on Previously Outstanding Draws 0.00
D. Interest Paid on Unreimbursed Surety Draws 0.00
E. New Surety Bond Draws 0.00
F. Reimbursement of Previous Surety Draws 0.00
G. Unreimbursed Surety Draws 0.00
H. Previous Unreimbursed Insurer Optional Deposits 0.00
I. New Insurer Optional Deposit 0.00
J. Reimbursement of Previous Insurer Optional Deposits 0.00
K. Unreimbursed Insurer Optional Deposits 0.00
<TABLE>
<CAPTION>
Section IX. Historical Portfolio Performance
Previous Previous Current
Period Current Period Period Current Period
Cumulative Charge-Offs Cumulative Period Losses Prepayment
Charge Offs Losses Speed
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
i. Prime 438,580.03 30,653.87 217,683.64 29,214.00 1.2315%
ii. Non-Prime 1,067,483.67 44,902.78 645,246.91 17,484.56 1.2274%
iii. Sub-Prime 339,521.33 33,715.37 198,494.41 22,787.46 1.6600%
iv. Total Portfolio 1,845,585.03 109,272.02 1,061,424.96 69,486.02 1.2625%
</TABLE>
/s/ Harold E. Miller, Jr. /s/ Tonya B. Roemer
- ---------------------------------- ----------------------------------
Harold E. Miller, Jr. Tonya B. Roemer
Executive V.P., C.O.O. Securitization Specialist,
Assistant Treasurer
10
Franklin Auto Trust 1999-1
Monthly Servicing Report
Collection Period: September 1999
Distribution Date: October 15, 1999
Number of Days in Distribution Period: 30
<TABLE>
<CAPTION>
Section I. Original Deal Parameters
A. Original Portfolio Principle Weighted Average
Number of Principal Coupon Original Term Remaining Term Seasoning
Contracts Balance (WAC) (Months) (Months) (Months)
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime Loans 3,021 44,026,783.74 9.53% 62.89 58.85 4.04
ii. Non-Prime Loans 3,906 58,089,314.57 14.87% 63.97 59.14 4.82
iii. Sub-Prime Loans 408 4,407,854.65 20.88% 56.79 51.97 4.83
iv. Total Loans 7,335 106,523,952.96 12.91% 63.22 58.73 4.50
</TABLE>
B. Bonds Issue
Original
Principal Legal Final
Balance Coupon Maturity CUSIP
-------------------------------------------------------
i. Class A-1 Notes 66,500,000.00 5.52% 12/15/02 35242RAC8
ii. Class A-2 Notes 40,023,000.00 6.05% 12/15/06 35242RAD6
C. Spread Account
i. Initial Cash Deposit 798,929.65
ii. Spread Account Floor Amount 1,597,859.29
iii. Specified Spread Account Amount 4.5% of Outstanding Pool Balance
iv. Maximum Spread Account Amount 10% of Outstanding Pool Balance
v. Initial Payment Provider Commitment 3,994,648.24
11
<PAGE>
<TABLE>
<CAPTION>
Section II. Deal Status as of Previous
Distribution Date
A. Portfolio
Principal Weighted Average
Number of Principal Original Term Remaining Term Seasoning
Contracts Balance Coupon (WAC) (Months) (Months) (Months)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime Loans 2,833 38,716,748.82 9.55% 63.10 55.12 7.98
ii. Non-Prime Loans 3,666 52,017,540.86 14.87% 64.11 55.54 8.58
iii. Sub-Prime Loans 367 3,779,557.11 20.84% 56.94 48.45 8.49
iv. Total Loans 6,866 94,513,846.79 12.93% 63.41 55.08 8.33
</TABLE>
B. Bonds Outstanding
Principal Unpaid Interest
Balance Shortfall Amount
-----------------------------------
i. Class A-1 Notes 54,490,846.79 0.00
ii. Class A-2 Notes 40,023,000.00 0.00
C. Spread Account
i. Spread Account Cash Balance 1,597,859.30
ii. Payment Provider Commitment 2,655,263.81
D. Shortfall Amounts
i. Base Servicing Fee Shortfall 0.00
ii. Surety Fee Shortfall 0.00
iii. Unreimbursed Surety Draws 0.00
iv. Unreimbursed Insurer Optional Deposit 0.00
v. Excess Servicing Fee Shortfall 0.00
12
<PAGE>
<TABLE>
<CAPTION>
Section II. Deal Status as of Previous
Distribution Date
E. Delinquencies in Period
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Principal Balance
<S> <C> <C> <C> <C> <C> <C>
i. Prime Loans 78,573.98 29,953.19 16,565.34 0.00 31,184.84 3,734.09
ii. Non-Prime Loans 637,093.35 175,738.17 30,747.27 0.00 305,381.32 207,696.67
iii. Sub-Prime Loans 21,882.21 5,367.70 7,362.74 0.00 7,362.74 60,564.50
iv. Total Loans 737,549.54 211,059.06 54,675.35 0.00 343,928.90 271,995.26
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Number of Contracts
i. Prime Loans 4 2 2 0 3 1
ii. Non-Prime Loans 48 13 2 0 21 15
iii. Sub-Prime Loans 3 1 1 0 1 4
iv. Total Loans 55 16 5 0 25 20
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Principal Balance as a
% of Previous Balance
i. Prime Loans 0.20% 0.08% 0.04% 0.00% 0.08% 0.01%
ii. Non-Prime Loans 1.22% 0.34% 0.06% 0.00% 0.59% 0.40%
iii. Sub-Prime Loans 0.58% 0.14% 0.19% 0.00% 0.19% 1.60%
iv. Total Loans 0.78% 0.22% 0.06% 0.00% 0.36% 0.29%
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Number of Contracts as
% of Previous Number
i. Prime Loans 0.14% 0.07% 0.07% 0.00% 0.11% 0.04%
ii. Non-Prime Loans 1.31% 0.35% 0.05% 0.00% 0.57% 0.41%
iii. Sub-Prime Loans 0.82% 0.27% 0.27% 0.00% 0.27% 1.09%
iv. Total Loans 0.80% 0.23% 0.07% 0.00% 0.36% 0.29%
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Section III. Collection Period Activity
and Current Status
A. Portfolio
Principal Weighted Average
Number of Principal Coupon Original Term Remaining Term Seasoning
Contracts Balance (WAC) (Months) (Months) (Months)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Prime Loans 2,785 37,518,113.35 9.55% 63.18 54.23 8.95
ii. Non-Prime Loans 3,590 50,189,474.96 14.86% 64.13 54.60 9.53
iii. Sub-Prime Loans 359 3,643,790.44 20.85% 56.94 47.53 9.41
iv. Total Loans 6,734 91,351,378.75 12.92% 63.45 54.17 9.29
</TABLE>
<TABLE>
<CAPTION>
B. Delinquencies in Period
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Principal Balance
i. Prime Loans 87,452.26 62,173.28 29,953.19 3,030.80 62,590.10 27,607.39
ii. Non-Prime Loans 599,169.33 154,939.65 105,503.45 17,134.37 209,056.32 234,973.70
iii. Sub-Prime Loans 32,098.29 28,347.95 5,367.70 0.00 0.00 17,691.60
iv. Total Loans 718,719.88 245,460.88 140,824.34 20,165.17 271,646.42 280,272.69
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Number of Contracts
i. Prime Loans 8 3 2 1 5 2
ii. Non-Prime Loans 48 12 8 1 16 17
iii. Sub-Prime Loans 3 3 1 0 0 2
iv. Total Loans 59 18 11 2 21 21
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Principal Balance as a
% of Current Balance
i. Prime Loans 0.23% 0.17% 0.08% 0.01% 0.17% 0.07%
ii. Non-Prime Loans 1.19% 0.31% 0.21% 0.03% 0.42% 0.47%
iii. Sub-Prime Loans 0.88% 0.78% 0.15% 0.00% 0.00% 0.49%
iv. Total Loans 0.79% 0.27% 0.15% 0.02% 0.30% 0.31%
30-59 60-89 90-119 120+ Repo Charge Offs
Days Days Days Days in Inventory in Period
--------------------------------------------------------------------------------------------------------
Number of Contracts as a
% of Current Number
i. Prime Loans 0.29% 0.11% 0.07% 0.04% 0.18% 0.07%
ii. Non-Prime Loans 1.34% 0.33% 0.22% 0.03% 0.45% 0.47%
iii. Sub-Prime Loans 0.84% 0.84% 0.28% 0.00% 0.00% 0.56%
iv. Total Loans 0.88% 0.27% 0.16% 0.03% 0.31% 0.31%
</TABLE>
14
<PAGE>
Section III. Collection Period Activity and
Current Status
C. Collections
i. Simple Interest Contracts
a. Interest Collections 935,058.10
b. Principal Collections 2,677,010.29
ii. Rule of 78's Contracts
a. Interest Collections 77,570.64
b. Principal Collections 205,185.06
iii. Net Liquidation Proceeds 124,266.28
iv. Post Disposition Recoveries 5,142.63
v. Rebates of Capitalized Insurance Premiums 0.00
vi. Repurchase Amounts
a. Interest 0.00
b. Principal 0.00
D. Payaheads
i. Beginning Payahead Account Balance 34,101.72
ii. Deposit to Payahead Account
a. Principal & Interest Collections 8,400.60
iii. Withdrawal from Payahead Account
a. Principal & Interest Collections 6,034.90
iv. Net Change in Payahead Account
a. Principal & Interest Collections 2,365.70
v. Ending Payahead Account Balance 36,467.42
E. Total Available
i. Total Interest Collections 1,012,628.74
ii. Total Principal Collections 3,006,461.63
iii. Collected Funds 4,019,090.37
F. Month End Pool Balance
i. Beginning Pool Balance 94,513,846.79
ii. Principal Collections 3,006,461.63
iii. Realized and Cram-Down Losses 156,006.41
iv. Month End Pool Balance 91,351,378.75
Section IV. Distribution Calculations
A. Servicing Fee
i. Servicing Fee Rate
a. Prime Receivable @ 1.00% 32,263.96
b. Non-prime Receivables @ 1.50% 65,021.93
c. Sub-prime Receivables @ 2.00% 6,299.26
d. Total Servicing Fee 103,585.15
e. Total Receivables @ 1.25% 98,451.92
ii. Base Servicing Fee (less of id. and ie.) 98,451.92
iii. Previous Servicing Fee Shortfall 0.00
iv. Additional Servicing Fee 5,133.22
v. Previous Additional Servicing Fee Shortfall 0.00
vi. Total Additional Servicing Fee 5,133.22
vii. Supplemental Servicing Fee 36,850.26
viii.Total Supplemental Servicing Fee 36,850.26
B. Surety Fee
i. Surety Fee Rate 0.13%
ii. Base Surety Fee Due 10,239.00
iii. Previous Surety Fee Shortfall 0.00
iv. Total Surety Fee Due 10,239.00
15
<PAGE>
<TABLE>
<CAPTION>
C. Bond Interest
Accrued
Bond Number of Days Previous Interest on Total Bond
Interest in Period Current Interest Interest Interest Due
Rate Interest Shortfall Shortfall
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
i. Class A-1 Notes 5.52% 30 250,657.90 0.00 0.00 250,657.90
ii. Class A-2 Notes 6.05% 30 201,782.63 0.00 0.00 201,782.63
iii. Total 5.74% 30 452,440.52 0.00 0.00 452,440.52
</TABLE>
Section IV. Distribution Calculations
D. Bond Principal
i. Beginning Note Balance 94,513,846.79
ii. Current Pool Balance 91,351,378.75
iii. Principal Distributable Amount 3,162,468.04
E. Total Required Distributions 3,723,599.48
F. Total Available Funds 4,024,233.00
G. Required Distribution Shortfall 0.00
H. Cash Available in Spread Account 1,597,859.30
I. Reserve Account Draw 0.00
J. Payment Provider Commitment 2,655,263.81
K. Payment Provider Required Payment Amount 0.00
L. Surety Draw 0.00
M. Insurer Optional Deposit 0.00
N. Total Cash Available for Distributions 4,024,233.00
Section V. Waterfall for Distributions
A. Total Available Funds 4,024,233.00
16
<PAGE>
<TABLE>
<CAPTION>
Remaining Amount
Amount Due Amount Paid Shortfall Available for
Distribution
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
B. Servicing Fee 98,451.92 98,451.92 0.00 3,925,781.08
C. Surety Fee 10,239.00 10,239.00 0.00 3,915,542.08
D. Note Interest 452,440.52 452,440.52 0.00 3,463,101.56
E. Principal Distributable Amount 3,162,468.04 3,162,468.04 0.00 300,633.52
F. Interest on Unreimbursed Surety Draws 0.00 0.00 0.00 300,633.52
G. Reimbursement of Previous Surety Draws 0.00 0.00 0.00 300,633.52
H. Reimbursement of Insurer Optional Deposits 0.00 0.00 0.00 300,633.52
I. Reserve Deposit 0.00 0.00 0.00 300,633.52
J. Payment of Additional Servicing Fee 5,133.22 5,133.22 0.00 295,500.29
K. Deposit to Certificate Distribution Acct. 295,500.29 295,500.29 0.00 0.00
</TABLE>
<TABLE>
<CAPTION>
Section VI. Bond Reconciliation
Beginning
Balance Principal Paid Ending Balance Interest Due Interest Paid Interest
Shortfall
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A. Class A-1 Notes 54,490,846.79 3,162,468.04 51,328,378.75 250,657.90 250,657.90 0.00
B. Class A-2 Notes 40,023,000.00 0.00 40,023,000.00 201,782.63 201,782.63 0.00
C. Total 94,513,846.79 3,162,468.04 91,351,378.75 452,440.52 452,440.52 0.00
</TABLE>
Section VII. Spread Account Reconciliation
A. Net Yield Calculations
i. Current Month 3.95%
ii. Previous Month 3.62%
iii. Second Previous Month 6.05%
iv. Three-Month Average 4.56%
v. Previous Three Month Average 5.31%
vi. Second Previous Three Month Average 5.90%
B. Has Net Yield Trigger Event Occurred
and Is It Continuing? NO
C. Has Spread Account Deposit Event Occurred
(clauses (i) through (iv) or (iv))? NO
D. Has Spread Account Deposit Event Occurred
(clause (v))? NO
E. Required Spread Account Parameters:
i. Spread Account Floor Amount 1,597,859.29
ii. Spread Account Specified Amount 4,110,812.04
iii. Spread Account Maximum Amount 9,135,137.88
iv. Spread Account Required Amount 1,597,859.29
17
<PAGE>
<TABLE>
<CAPTION>
F. Allocations, Deposits and Reductions of the Spread Deposit of Change in Cash on Payment
Account and the Payment Provider Commitment Cash in Payment Provider Deposit in Provider
Spread Account Commitment Spread Account Commitment
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
i. Beginning Balance 0.00 0.00 1,597,859.30 2,655,263.81
ii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (i-iv or vi) 0.00 0.00 1,597,859.30 2,655,263.81
iii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (v) 0.00 0.00 1,597,859.30 2,655,263.81
iv. Deposit to Spread Account from Waterfall 0.00 0.00 1,597,859.30 2,655,263.81
v. Release from Spread Account when Net Yield Trigger
Event Has Not Occurred or Has Been Deemed Cured 0.00 0.00 1,597,859.30 2,655,263.81
vi. Release from Spread Account when Net Yield Trigger
Event Has Occurred and Has Not Been Deemed Cured 0.00 0.00 1,597,859.30 2,655,263.81
vii. Reduction of Payment Provider Commitment when Net Yield
Trigger Event Not Occurred or Deemed Cured 0.00 142,311.07 1,597,859.30 2,512,952.74
viii.Withdrawal from Spread Account for Insurer
Optional Deposit 0.00 0.00 1,597,859.30 2,512,952.74
ix. Reduction of Payment Provider Commitment when Net Yield
Trigger Event Has Occurred and Not Deemed Cured 0.00 0.00 1,597,859.30 2,512,952.74
</TABLE>
Section VIII. Surety Bond Reconciliation
A. Previously Unreimbursed Surety Bond Draws 0.00
B. Interest Rate on Outstanding Draws (PRIME + 1%) 9.25%
C. Current Interest Accrued on Previously Outstanding Draws 0.00
D. Interest Paid on Unreimbursed Surety Draws 0.00
E. New Surety Bond Draws 0.00
F. Reimbursement of Previous Surety Draws 0.00
G. Unreimbursed Surety Draws 0.00
H. Previous Unreimbursed Insurer Optional Deposits 0.00
I. New Insurer Optional Deposit 0.00
J. Reimbursement of Previous Insurer Optional Deposits 0.00
K. Unreimbursed Insurer Optional Deposits 0.00
<TABLE>
<CAPTION>
18
<PAGE>
Section IX. Historical Portfolio Performance
Previous Period Current Period Previous Period Current Current
Cumulative Charge Charge-Offs Cumulative Losses Period Losses Period
Offs Prepayment Speed
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
i. Prime Loans 33,099.09 27,607.39 17,081.95 20,548.96 1.3651%
ii. Non-Prime Loans 323,410.18 234,973.70 140,838.93 126,178.71 1.7357%
iii. Sub-Prime Loans 79,494.88 17,691.60 30,161.02 4,136.11 1.7411%
iv. Total Loans 436,004.15 280,272.69 188,081.90 150,863.78 1.5938%
</TABLE>
/s/ Harold E. Miller, Jr. /s/ Tonya B. Roemer
- --------------------------- --------------------------------------------
Harold E. Miller, Jr. Tonya B. Roemer
Executive V.P., C.O.O. Securitization Specialist , Assistant
Treasurer
19
