<PAGE> 1
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 (Data of earliest event reported)
May 1, 1999
FIRST SIERRA RECEIVABLES III, INC.
----------------------------------
(exact name of Registrant as specified in its charter)
Delaware 333-12199-01 76-0589331
-------- ------------ ----------
(State or Other Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
Suite 7050
600 Travis Street
Houston, TX 77002
- ----------- -----
(Address of Principal Executive) (Zip Code)
Registrant's telephone number, including area code: 713-221-8822
<PAGE> 2
Item 1. Business
The Registrant is a wholly-owned subsidiary of First Sierra Financial, Inc.
formed solely for the purpose of acquiring from First Sierra Financial, Inc.
certain leases (the "Leases") and interests in equipment underlying the leases
(together the "Receivables") and securitizing the Receivables through the
issuance of Certificates. As a bankruptcy remote entity, the Registrant's
operations are restricted so that (a) it does not engage in business with, or
incur liabilities to, any other entity which may bring bankruptcy proceedings
against the Registrant and 9b) the risk is diminished that it will be
consolidated into the bankruptcy proceedings of any other entity. The
Registrant has no other assets except the Receivables and proceeds thereof.
Item 2. Acquisition or Disposition of Assets
None
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
1.1 Servicing Reports for the collection periods ending in May 1,
1999.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
First Sierra Receivables II, Inc.
By: /s/ E. R. Gebhart
-------------------------
Name: E. R. Gebhart
Title: Vice President
2
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description
- ------- -----------
<S> <C>
1.1 Servicing Reports for the collection periods ending in May 1,
1999.
</TABLE>
<PAGE> 1
EXHIBIT 1.1
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Available Amount to Note Holders: 8,315,574.12
Disbursements from Collection Account: Section 3.04(b) of the Indenture
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account --
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 11,000.48
(b) Servicer Fees from current and prior Collection Period 100,007.09
(c) Servicing Charges inadvertantly deposited in Collection Account --
(iv) Premium Amount due on Payment Date and unpaid Premium Amounts 25,664.67
(v) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 416.67
(vi) Reimbursable Trustee Expenses pre 7.07(a)(ii) --
(vii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 186,559.88
Class A-2 Note Interest 246,395.18
Class A-3 Note Interest 238,484.95
Class A-4 Note Interest 331,522.69
(viii) Class B-1 Note Interest 29,251.35
(ix) Class B-2 Note Interest 18,949.61
(x) Class B-3 Note Interest 24,875.60
(xi) Class A Base Principal Distribution Amount plus Class A Overdue Principal
Class A-1 Principal Distribution Amount 6,665,769.71
Class A-2 Principal Distribution Amount --
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xii) Note Issuer Reimbursement Amount --
(xiii) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 144,908.04
(xiv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 72,454.01
(xv) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 144,908.04
(xvi) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) --
(xvii) Other Amounts Due Servicer under Servicing Agreement --
(xviii) Remaining Amount to Residual Holder 74,406.15
</TABLE>
Reviewed By:
--------------------------------------------
E. Roger Gebhart
Senior Vice President & Treasurer
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
- --------- -------------- -------------- ------------ ------------ ------------ -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 70,687,140.00 42,928,448.01 6,665,769.71 -- 6,665,769.71 36,262,678.30 0.5130025
Class A-2 53,856,869.00 53,856,869.00 -- -- -- 53,856,869.00 1.0000000
Class A-3 52,510,447.00 52,510,447.00 -- -- -- 52,510,447.00 1.0000000
Class A-4 70,687,140.00 70,687,140.00 -- -- -- 70,687,140.00 1.0000000
--------------- --------------- --------------- ---------- --------------- --------------- ---------
Total Class A 247,741,596.00 219,982,904.01 6,665,769.71 -- 6,665,769.71 213,317,134.30 0.8610469
Class B-1 5,385,687.00 4,782,237.16 144,908.04 -- 144,908.04 4,637,329.12 0.8610469
Class B-2 2,692,843.00 2,391,118.14 72,454.01 -- 72,454.01 2,318,664.13 0.8610469
Class B-3 5,385,687.00 4,782,237.16 144,908.04 -- 144,908.04 4,637,329.12 0.8610469
--------------- --------------- --------------- ---------- --------------- ---------------
Total 261,205,813.00 231,938,496.46 7,028,039.80 -- 7,028,039.80 224,910,456.66
</TABLE>
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of April 30, 1999 3,216,814.57
Investment earnings on amounts in Collection Account 13,221.86
Payments due Collection Account from last 3 business days of Collection Period 494,093.56
Additional contribution for terminated trade-ups and rebooked leases --
Servicer Advance on current Determination Date 4,591,444.13
------------
Available Funds on Payment Date 8,315,574.12
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 8,315,574.12
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 8,315,574.12
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 11,000.48
Unreimbursed Servicer Advances paid 11,000.48
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 8,304,573.64
SERVICER FEES
Servicer Fees due 100,007.09
Servicer Fees paid 100,007.09
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 8,204,566.55
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 8,204,566.55
PREMIUM AMOUNT
Premium Amount due 25,664.67
Premium Amount paid 25,664.67
------------
Premium Amount remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 8,178,901.87
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 416.67
Indenture Trustee Fee paid 416.67
------------
Indenture Trustee Fee remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 8,178,485.21
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(A)(II)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 8,178,485.21
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 186,559.88
Class A-2 Note Interest 246,395.18
Class A-3 Note Interest 238,484.95
Class A-4 Note Interest 331,522.69
--------------
Total Class A Interest due 1,002,962.69
--------------
REMAINING AVAILABLE FUNDS 7,175,522.52
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 29,251.35
Class B-1 Note Interest paid 29,251.35
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,146,271.17
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 18,949.61
Class B-2 Note Interest paid 18,949.61
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,127,321.56
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 24,875.60
Class B-3 Note Interest paid 24,875.60
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,102,445.95
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 6,665,769.71
Class A Note Principal Balance as of preceding Payment Date 219,982,904.01
--------------
Class A Base Principal Distribution Amount paid 6,665,769.71
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 42,928,448.01
Class A-1 Base Principal Distribution Amount paid 6,665,769.71
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 36,262,678.30
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 53,856,869.00
Class A-2 Base Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 53,856,869.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance as of preceding Payment Date 52,510,447.00
Class A-3 Base Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 52,510,447.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance as of preceding Payment Date 70,687,140.00
Class A-4 Base Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 70,687,140.00
REMAINING AVAILABLE FUNDS 436,676.24
NOTE INSURER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
-------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 436,676.24
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 4,782,237.16
Class B-1 Base Principal Distribution due 144,908.04
Class B-1 Base Principal Distribution paid 144,908.04
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 4,637,329.12
REMAINING AVAILABLE FUNDS 291,768.20
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 2,391,118.14
Class B-2 Base Principal Distribution due 72,454.01
Class B-2 Base Principal Distribution paid 72,454.01
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 2,318,664.13
REMAINING AVAILABLE FUNDS 219,314.19
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
</TABLE>
Page 5
<PAGE> 6
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Class B-3 Note Principal Balance as of preceding Payment Date 4,782,237.16
Class B-3 Base Principal Distribution due 144,908.04
Class B-3 Base Principal Distribution paid 144,908.04
------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 4,637,329.12
REMAINING AVAILABLE FUNDS 74,406.15
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(A)(II)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 74,406.15
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 74,406.15
AMOUNT PAYABLE TO RESIDUAL HOLDER 74,406.15
</TABLE>
Page 6
<PAGE> 7
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 240,017,026.46
ADCPB, end of Collection Period 232,988,986.66
--------------
Base Principal Amount 7,028,039.80
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 3,244,024.59
Servicing Advances collected during the current Collection Period 3,233,024.11
--------------
Unreimbursed Servicing Advances as of current Determination Date 11,000.48
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
- --------- --------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Class A-1 42,928,448.01 5.2150% 186,559.88 -- 186,559.88
Class A-2 53,856,869.00 5.4900% 246,395.18 -- 246,395.18
Class A-3 52,510,447.00 5.4500% 238,484.95 -- 238,484.95
Class A-4 70,687,140.00 5.6280% 331,522.69 -- 331,522.69
Class B-1 4,782,237.16 7.3400% 29,251.35 -- 29,251.35
Class B-2 2,391,118.14 9.5100% 18,949.61 -- 18,949.61
Class B-3 4,782,237.16 6.2420% 24,875.60 -- 24,875.60
--------------- -------------- ------------ ------------ ------------
231,938,496.46 5.5672% 1,076,039.25 -- 1,076,039.25
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
- --------- ------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Class A 94.845% 6,665,769.71 -- 6,665,769.71
Class B-1 2.062% 144,908.04 -- 144,908.04
Class B-2 1.031% 72,454.01 -- 72,454.01
Class B-3 2.062% 144,908.04 -- 144,908.04
------------ --------- ------------
7,028,039.80 -- 7,028,039.80
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 240,017,026.46
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 100,007.09
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 100,007.09
</TABLE>
Page 7
<PAGE> 8
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 219,982,904.01
Premium Rate 0.140%
One-twelfth 1/12
---------------
Premium Amount due Current Period 25,664.67
Prior Premium Amount arrearage --
---------------
Total Premium Amount due 25,664.67
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 416.67
Prior Indenture Trustee Fee arrearage --
---------------
Total Indenture Trustee Fee due 416.67
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
---------------
Total Indenture Trustee Expenses due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
---------------
Total Other Amounts Due Servicer under Servicing Agreement --
</TABLE>
Page 8
<PAGE> 9
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED MAY 1, 1999
Restricting Event Determination:
<TABLE>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
Yes/No
------
A) Failure to distribute to the Noteholders all or part of any payment of
Interest required to be made under the terms of such Notes or the
Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an
amount equal to the principal due on the Outstanding Notes as of such
Payment Date to the extent that sufficient Available Funds are on
deposit in the Collection Account of (y) on the Class A-1 Maturity Date,
the Class A-2 Maturity Date, the Class A-3 Maturity Date, the Class A-4
Maturity Date, the Class B-1 Maturity Date, the Class B-2 Maturity Date,
or the Class B-3 Maturity Date, as the case may be, on any remaining
principal owed on the outstanding Class A-1 Notes, Class A-2 Notes, Class
A-3 Notes, Class A-4 Notes, Class B-1 Notes, Class B-2 Notes, or Class B-3
Notes, as the case may be. No
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
Section Event Yes/No
------- ----- ------
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Petition under bankruptcy laws against Servicer is not
stayed, withdrawn or dismissed within 60 days No
6.01(vii) Assignment by Servicer to a delegate its rights under
Servicing Agreement No
6.01(viii) Servicer Trigger Event as contained in the Insurance
Agreement has occurred. No
</TABLE>
Page 9
<PAGE> 10
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED MAY 1, 1999
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 1.40%
Gross Charge Off Ratio Prior Period 0.22%
Gross Charge Off Ratio Second Prior Period 0.20%
----
Average of Gross Charge Off Ratio for Three Periods 0.61%
Maximum Allowed 2.50%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less End of Month Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- -------------- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 479,196.02 207,864.18 271,331.84 232,988,986.66 1.40%
Prior Period 337,130.08 293,355.73 43,774.35 240,017,026.46 0.22%
Second Prior Period 96,842.74 54,625.79 42,216.95 247,277,212.15 0.20%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
<S> <C>
Delinquency Trigger Ratio Current Period 2.90%
Delinquency Trigger Ratio Prior Period 3.45%
Delinquency Trigger Ratio Second Prior Period 2.96%
-----
Average of Delinquency Trigger Ratios 3.10%
Maximum Allowed 7.50%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
--- --- ---
ADCPB of ADCPB of
Contract > 30 Days All Contract Delinquency Trigger
Past Due As of Month-End Ratio:
------------ -------------- -----
<S> <C> <C> <C>
Current Period 6,763,254.61 232,988,986.66 2.90%
Prior Period 8,275,627.96 240,017,026.46 3.45%
Second Prior Period 7,308,456.68 247,277,212.15 2.96%
</TABLE>
<TABLE>
<CAPTION>
ADCPB Delinquency Ratio
----------- -----------------
<S> <C> <C>
Current 226,225,732 97.10%
31-60 Days Past Due 3,112,118 1.34%
61-90 Days Past Due 1,557,447 0.67%
91+ Days Past Due 2,093,690 0.90%
----------- ------
TOTAL 232,988,987 100.00%
</TABLE>
Substitution Limits
<TABLE>
<S> <C>
ADCPB as of Cut-Off Date 269,284,343.00
Maximum Substitution (10% of Initial) 26,928,434.30
Prior month Cumulative ADCPB Substituted --
Current month ADCPB Substituted --
--------------
Cumulative ADCPB Substituted --
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
FIRST SIERRA RECEIVABLES III, INC.
MBIA INSURANCE AGREEMENT
COVENANT COMPLIANCE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1999
SERVICER TRIGGER EVENT:
<TABLE>
<CAPTION>
(I) TANGIBLE NET WORTH CALCULATION: AS OF 12/31/98 $ MILLION
---------
<S> <C>
a) Is less than $40,000,000 plus 75% of cumulative after-tax income after 9/30/98
1) Actual Net Worth 84.00
2) Goodwill 39.20
3) After-tax income after 9/30/98 --
4) Actual Tangible Net Worth 44.80
5) Required 40.00
(II) RATIO OF TOTAL DEBT TO TANGIBLE NET WORTH: AS OF 12/31/98
1) Required: Thru June 30, 1999: 25 to 1
2) Tangible Net Worth 44.80
3) Total Debt 299.50
4) Off Balance Sheet Debt 564.90
4) Actual Ratio 19.29
(III) AVAILABILITY UNDER CREDIT FACILITIES: AS OF 5/1/99
1) Total Remaining Availability 232.66
2) Required Remaining Availability 50.00
3) Availability In a Facility Other Than Series E 153.53
4) Required Availability in a Facility Other Than Series E 25.00
(IV) BEGINNING DECEMBER 1999: AFTER TAX NET LOSS OF GREATER THAN $100,000: No
(V) FINAL JUDGEMENT GREATER THAN $1,000,000: No
(VI) DEFAULT IN ANY LIABILITY GREATER THAN $1,000,000: No
</TABLE>
CERTIFIED:
- ------------------------
By: E. R. Gebhart
Title: SVP and Treasurer
Date: May 1, 1999
Page 11
<PAGE> 12
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Available Amount to Note Holders: 7,512,675.68
Disbursements from Collection Account: Section 3.04(b) of the Indenture
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account --
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances --
(b) Servicer Fees from current and prior Collection Period 94,251.99
(c) Servicing Charges inadvertantly deposited in Collection Account --
(iv) Premium Amount due on Payment Date and unpaid Premium Amounts 30,349.14
(v) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 416.67
(vi) Reimbursable Trustee Expenses pre 7.07(a)(ii) --
(vii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 204,815.47
Class A-2 Note Interest 182,033.00
Class A-3 Note Interest 155,341.42
Class A-4 Note Interest 281,170.78
(viii) Class B-1 Note Interest 21,805.20
(ix) Class B-2 Note Interest 16,477.61
(x) Class B-3 Note Interest 13,046.83
(xi) Class A Base Principal Distribution Amount plus Class A Overdue Principal
Class A-1 Principal Distribution Amount 5,809,859.63
Class A-2 Principal Distribution Amount --
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xii) Note Insuer Reimbursement Amount --
(xiii) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 126,301.31
(xiv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 63,150.65
(xv) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 78,938.32
(xvi) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) --
(xvii) Other Amounts Due Servicer under Servicing Agreement --
(xviii) Remaining Amount to Residual Holder 434,717.67
</TABLE>
Reviewed By:
------------------------------------------------
Craig Spencer
Senior Vice President
Page 1
<PAGE> 13
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
- --------- ------------- ------------- ------------ ------------ ------------ -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 70,688,994.00 70,688,994.00 5,809,859.63 -- 5,809,859.63 64,879,134.37 0.9178110
Class A-2 57,258,085.00 57,258,085.00 -- -- -- 57,258,085.00 1.0000000
Class A-3 48,068,516.00 48,068,516.00 -- -- -- 48,068,516.00 1.0000000
Class A-4 84,119,903.00 84,119,903.00 -- -- -- 84,119,903.00 1.0000000
-------------- -------------- ------------ ------------ ------------ -------------- ---------
Total Class A 260,135,498.00 260,135,498.00 5,809,859.63 -- 5,809,859.63 254,325,638.37 0.9776660
Class B-1 5,655,120.00 5,655,120.00 126,301.31 -- 126,301.31 5,528,818.69 0.9776660
Class B-2 2,827,560.00 2,827,560.00 63,150.65 -- 63,150.65 2,764,409.35 0.9776660
Class B-3 3,534,450.00 3,534,450.00 78,938.32 -- 78,938.32 3,455,511.68 0.9776660
-------------- -------------- ------------ ------------ ------------ --------------
Total 272,152,628.00 272,152,628.00 6,078,249.91 -- 6,078,249.91 266,074,378.09
</TABLE>
Page 2
<PAGE> 14
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of April 30, 1999 1,216,246.68
Investment earnings on amounts in Collection Account 628.00
Payments due Collection Account from last 3 business days of Collection Period 2,243,588.97
Additional contribution for terminated trade-ups and rebooked leases 240,172.46
Servicer Advance on current Determination Date 3,812,039.57
------------
Available Funds on Payment Date 7,512,675.68
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,512,675.68
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,512,675.68
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due --
Unreimbursed Servicer Advances paid --
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,512,675.68
SERVICER FEES
Servicer Fees due 94,251.99
Servicer Fees paid 94,251.99
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,418,423.69
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,418,423.69
PREMIUM AMOUNT
Premium Amount due 30,349.14
Premium Amount paid 30,349.14
------------
Premium Amount remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,388,074.55
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 416.67
Indenture Trustee Fee paid 416.67
------------
Indenture Trustee Fee remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,387,657.88
</TABLE>
Page 3
<PAGE> 15
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(a)(II)
<S> <C>
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 7,387,657.88
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 204,815.47
Class A-2 Note Interest 182,033.00
Class A-3 Note Interest 155,341.42
Class A-4 Note Interest 281,170.78
--------------
Total Class A Interest due 823,360.66
--------------
REMAINING AVAILABLE FUNDS 6,564,297.22
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 21,805.20
Class B-1 Note Interest paid 21,805.20
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,542,492.02
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 16,477.61
Class B-2 Note Interest paid 16,477.61
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,526,014.41
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 13,046.83
Class B-3 Note Interest paid 13,046.83
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,512,967.58
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 5,809,859.63
Class A Note Principal Balance as of preceding Payment Date 260,135,498.00
--------------
Class A Base Principal Distribution Amount paid 5,809,859.63
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 70,688,994.00
Class A-1 Base Principal Distribution Amount paid 5,809,859.63
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 64,879,134.37
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 4
<PAGE> 16
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 57,258,085.00
Class A-2 Base Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 57,258,085.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance as of preceding Payment Date 48,068,516.00
Class A-3 Base Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 48,068,516.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance as of preceding Payment Date 84,119,903.00
Class A-4 Base Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 84,119,903.00
REMAINING AVAILABLE FUNDS 703,107.95
NOTE INSURER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
-------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 703,107.95
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 5,655,120.00
Class B-1 Base Principal Distribution due 126,301.31
Class B-1 Base Principal Distribution paid 126,301.31
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 5,528,818.69
REMAINING AVAILABLE FUNDS 576,806.64
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 2,827,560.00
Class B-2 Base Principal Distribution due 63,150.65
Class B-2 Base Principal Distribution paid 63,150.65
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 2,764,409.35
REMAINING AVAILABLE FUNDS 513,655.99
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
</TABLE>
Page 5
<PAGE> 17
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
Class B-3 Note Principal Balance as of preceding Payment Date 3,534,450.00
Class B-3 Base Principal Distribution due 78,938.32
Class B-3 Base Principal Distribution paid 78,938.32
------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 3,455,511.68
REMAINING AVAILABLE FUNDS 434,717.67
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(A)(II)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 434,717.67
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 434,717.67
AMOUNT PAYABLE TO RESIDUAL HOLDER 434,717.67
</TABLE>
Page 6
<PAGE> 18
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PREFUNDING ACCOUNTS
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
PREFUNDING ACCOUNT
Prefunded amount used to purchase Subsequent Contracts 54,430,525.00
Prefunding Earnings transferred to the Capitalized Interest Account 111,534.79
Prefunded amount distributed as Principal, if any --
CAPITALIZED INTEREST ACCOUNT
Prefunding Earnings transferred from the Capitalized Interest Account 111,534.79
Capitalized Interest Requirement, if any, transferred to the Collection Account --
Amount transferred to First Sierra, if any 676,251.59
</TABLE>
Page 7
<PAGE> 19
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 226,204,781.00
ADCPB, end of Collection Period 220,126,531.09
--------------
Base Principal Amount 6,078,249.91
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period --
Servicing Advances collected during the current Collection Period --
--------------
Unreimbursed Servicing Advances as of current Determination Date --
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
- --------- --------------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Class A-1 70,688,994.00 4.9670% 204,815.47 -- 204,815.47
Class A-2 57,258,085.00 5.4500% 182,033.00 -- 182,033.00
Class A-3 48,068,516.00 5.5400% 155,341.42 -- 155,341.42
Class A-4 84,119,903.00 5.7300% 281,170.78 -- 281,170.78
Class B-1 5,655,120.00 6.6100% 21,805.20 -- 21,805.20
Class B-2 2,827,560.00 9.9900% 16,477.61 -- 16,477.61
Class B-3 3,534,450.00 6.3280% 13,046.83 -- 13,046.83
--------------- ------------ ---------- ---------- ----------
272,152,628.00 3.8568% 874,690.30 -- 874,690.30
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
- --------- ------- ------------ ------- ------------
<S> <C> <C> <C> <C>
Class A 95.584% 5,809,859.63 -- 5,809,859.63
Class B-1 2.078% 126,301.31 -- 126,301.31
Class B-2 1.039% 63,150.65 -- 63,150.65
Class B-3 1.299% 78,938.32 -- 78,938.32
------------ ------- ------------
6,078,249.91 -- 6,078,249.91
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 226,204,781.00
Servicer Fee Rate 0.500%
One-twelfth 1/12
----
Servicer Fee due current period 94,251.99
Prior Servicer Fee arrearage --
--
Servicer Fee due 94,251.99
</TABLE>
Page 8
<PAGE> 20
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1999
<TABLE>
<S> <C>
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 260,135,498.00
Premium Rate 0.140%
One-twelfth 1/12
--------------
Premium Amount due Current Period 30,349.14
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 30,349.14
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 416.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 416.67
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
</TABLE>
Page 9
<PAGE> 21
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED MAY 1, 1999
Restricting Event Determination:
<TABLE>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
Events of Default: Section 8.01 of Indenture
Yes/No
------
A) Failure to distribute to the Noteholders all or part of any payment
of Interest required to be made under the terms of such Notes or the
Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date,
an amount equal to the principal due on the Outstanding Notes as of
such Payment Date to the extent that sufficient Available Funds are on
deposit in the Collection Account of (y) on the Class A-1 Maturity
Date, the Class A-2 Maturity Date, the Class A-3 Maturity Date, the
Class A-4 Maturity Date, the Class B-1 Maturity Date, the Class B-2
Maturity Date, or the Class B-3 Maturity Date, as the case may be, on
any remaining principal owed on the outstanding Class A-1 Notes, Class
A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B-1 Notes, Class
B-2 Notes, or Class B-3 Notes, as the case may be. No
Events of Servicer Termination: Section 6.01 of Servicing Agreement
Section Event Yes/No
------- ----- ------
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Petition under bankruptcy laws against Servicer is not
stayed, withdrawn or dismissed within 60 days No
6.01(vii) Assignment by Servicer to a delegate its rights under
Servicing Agreement No
6.01(viii) Servicer Trigger Event as contained in the Insurance
Agreement has occurred. No
</TABLE>
Page 10
<PAGE> 22
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED MAY 1, 1999
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 0.09%
Gross Charge Off Ratio Prior Period 0.00%
Gross Charge Off Ratio Second Prior Period 0.00%
----
Average of Gross Charge Off Ratio for Three Periods 0.03%
Maximum Allowed 2.50%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less End of Month Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
--------- ---------- ----------- -------------- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 30,075.25 12,970.46 17,104.79 220,126,531.09 0.09%
Prior Period 0.00 0.00 0.00 226,204,781.00 0.00%
Second Prior Period 0.00 0.00 0.00 226,204,781.00 0.00%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 2.12%
Delinquency Trigger Ratio Prior Period 0.00%
Delinquency Trigger Ratio Second Prior Period 0.00%
----
Average of Delinquency Trigger Ratios 0.71%
Maximum Allowed 7.50%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
--- --- ---
ADCPB of ADCPB of
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------ -------------- -----
<S> <C> <C> <C>
Current Period 4,663,279.81 220,126,531.09 2.12%
Prior Period -- 226,204,781.00 0.00%
Second Prior Period -- 226,204,781.00 0.00%
</TABLE>
<TABLE>
<CAPTION>
ADCPB Delinquency Ratio
----------- -----------------
<S> <C> <C>
Current 215,463,251 97.88%
31-60 Days Past Due 3,943,236 1.79%
61-90 Days Past Due 720,043 0.33%
91+ Days Past Due 0 0.00%
----------- ------
TOTAL 220,126,531 100.00%
</TABLE>
Substitution Limits
<TABLE>
<S> <C>
ADCPB as of Cut-Off Date 226,204,781.43
Maximum Substitution (10% of Initial) 22,620,478.14
Prior month Cumulative ADCPB Substituted --
Current month ADCPB Substituted --
--------------
Cumulative ADCPB Substituted --
</TABLE>
Page 11
