SUPPLEMENT
(To Prospectus Dated June 24, 1999 and Prospectus Supplement Dated June
24, 1999)
ACE SECURITIES CORP.
Home Equity Loan Trust 1999-LB1
Home Equity Loan Pass-Through Certificates
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Capitalized terms used but not defined herein have the meanings assigned
to them in the Prospectus Supplement dated June 24, 1999 (the "Prospectus
Supplement").
The Depositor is in the process of soliciting the consent of holders of
the Class B Certificates to amendment of the Pooling and Servicing Agreement.
If the amendment is approved by each Class B Certificateholder, the definition
of "Targeted Overcollateralization Amount" on page S-31 of the Prospectus
Supplement will be deleted and replaced with the following:
The "Targeted Overcollateralization Amount" for any Distribution Date
will be
(a) before the Stepdown Date, the greater of
(1) the product of 4.30% and the Cut-off Date Balance, and
(2) 125% of the product of (x) the Three Month Delinquency Rate
and (y) the Total Loan Balance minus theClass Principal Amount of the
Class B Certificates before giving effect to distributions of
principal thereon on the related Distribution Date or application of
any Applied Loss Amount on that Distribution Date; and
(b) on and after the Stepdown Date, the greatest of
(1) the product of 8.60% and the Total Loan Balance for the
related Distribution Date,
(2) the amount calculated in accordance with clause (a)(2)
above,
(3) the product of 0.75% and the Cut-Off Date Balance,
(4) the sum of the three largest outstanding principal balances
of the Mortgage Loans, and
(5) the total outstanding principal balance of all Mortgage
Loans 270 or more days delinquent, all Mortgage Loans in foreclosure
and all REO Properties as of the last day of the related Due Period.
The Underwriter, as holder of $9,216,554 in initial Certificate Principal
Amount of Class B Certificates, has consented to the amendment. Any purchaser
of Class B Certificates from the Underwriter will be bound by that consent and
The date of this Supplement is January 25, 2000
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will not be entitled to withdraw it. MBIA has advised the Depositor that it
will consent to the proposed amendment on its own behalf and on behalf of the
holders of Senior Certificates.
If the proposed amendment is approved, the Targeted Overcollateralization
Amount as calculated pursuant to clause (a)(2) will be less likely to exceed
the amount calculated pursuant to clause (a)(1) than would be the case if the
proposed amendment is not adopted. Therefore, under certain circumstances the
Targeted Overcollateralization Amount will be lower, prior to the Stepdown
Date, if the proposed amendment is approved than would be the case if the
proposed amendment is not adopted.
Prospective investors in Class B Certificates should make their
investment decision on the basis of an expectation that the amendment will be
adopted.
