<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)
November 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 (b) 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 November 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 III, Inc.
By: /s/ E. R. Gebhart
-------------------------------
Name: E. R. Gebhart
Title: Vice President
<PAGE> 4
INDEX TO EXHIBITS
Exhibit 1.1 Servicing Reports for the collection periods ending in November 1,
1999.
<PAGE> 1
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1998-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
Available Amount to Note Holders: 7,574,041.02
Disbursements from Collection Account: Section 3.04(b) of the Indenture
(i) Initial Unpaid Amounts inadvertently deposited in Collection Account --
(ii) Indemnity Payments paid inadvertently deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 38,824.93
(b) Servicer Fees from current and prior Collection Period 81,331.08
(c) Servicing Charges inadvertently deposited in Collection Account --
(iv) Premium Amount due on Payment Date and unpaid Premium Amounts 20,704.94
(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 1,870.18
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 23,598.49
(ix) Class B-2 Note Interest 15,287.57
(x) Class B-3 Note Interest 20,068.36
(xi) Class A Base Principal Distribution Amount plus Class A Overdue Principal
Class A-1 Principal Distribution Amount 416,456.71
Class A-2 Principal Distribution Amount 5,801,165.06
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xii) Note Insurer Reimbursement Amount --
(xiii) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 135,165.69
(xiv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 67,582.83
(xv) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 135,165.69
(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 --
</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 NOVEMBER 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 70,687,140.00 416,456.71 416,456.71 -- 416,456.71 -- 0.0000000
Class A-2 53,856,869.00 53,856,869.00 5,801,165.06 -- 5,801,165.06 48,055,703.94 0.8922855
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 247,741,596.00 177,470,912.71 6,217,621.77 -- 6,217,621.77 171,253,290.94 0.6912577
Class B-1 5,385,687.00 3,858,063.41 135,165.69 -- 135,165.69 3,722,897.72 0.6912577
Class B-2 2,692,843.00 1,929,031.35 67,582.83 -- 67,582.83 1,861,448.51 0.6912577
Class B-3 5,385,687.00 3,858,063.42 135,165.69 -- 135,165.69 3,722,897.72 0.6912577
-------------- -------------- ------------ --------- ------------ --------------
Total 261,205,813.00 187,116,070.89 6,555,535.99 -- 6,555,535.99 180,560,534.90
</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 NOVEMBER 1, 1999
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of October 31, 1999 1,775,687.21
Investment earnings on amounts in Collection Account 11,506.27
Payments due Collection Account from last 3 business days of Collection Period 2,348,234.34
Additional contribution for terminated trade-ups and rebooked leases --
Servicer Advance on current Determination Date 3,438,613.20
------------
Available Funds on Payment Date 7,574,041.02
INITIAL UNPAID AMOUNTS INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,574,041.02
INDEMNITY PAYMENTS PAID INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,574,041.02
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 38,824.93
Unreimbursed Servicer Advances paid 38,824.93
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,535,216.09
SERVICER FEES
Servicer Fees due 81,331.08
Servicer Fees paid 81,331.08
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,453,885.01
SERVICER CHARGES INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 7,453,885.01
PREMIUM AMOUNT
Premium Amount due 20,704.94
Premium Amount paid 20,704.94
------------
Premium Amount remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 7,433,180.07
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 7,432,763.40
</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 NOVEMBER 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 7,432,763.40
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 1,870.18
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 818,272.99
--------------
REMAINING AVAILABLE FUNDS 6,614,490.41
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 23,598.49
Class B-1 Note Interest paid 23,598.49
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,590,891.92
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 15,287.57
Class B-2 Note Interest paid 15,287.57
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,575,604.35
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 20,068.36
Class B-3 Note Interest paid 20,068.36
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,555,535.99
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 6,217,621.77
Class A Note Principal Balance as of preceding Payment Date 177,470,912.71
--------------
Class A Base Principal Distribution Amount paid 6,217,621.77
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 416,456.71
Class A-1 Base Principal Distribution Amount paid 416,456.71
--------------
Class A-1 Note Principal Balance after distribution on Payment Date --
--------------
Remaining Class A Base Principal Distribution Amount 5,801,165.06
--------------
</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 NOVEMBER 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 5,801,165.06
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 48,055,703.94
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 337,914.22
NOTE INSURER REIMBURSEMENT AMOUNT
Note Insurer Reimbursement Amount due --
Note Insurer Reimbursement Amount paid --
-------------
Note Insurer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 337,914.22
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 3,858,063.41
Class B-1 Base Principal Distribution due 135,165.69
Class B-1 Base Principal Distribution paid 135,165.69
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,722,897.72
REMAINING AVAILABLE FUNDS 202,748.53
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 1,929,031.35
Class B-2 Base Principal Distribution due 67,582.83
Class B-2 Base Principal Distribution paid 67,582.83
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 1,861,448.51
REMAINING AVAILABLE FUNDS 135,165.69
</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 NOVEMBER 1, 1999
<TABLE>
<S> <C>
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 3,858,063.42
Class B-3 Base Principal Distribution due 135,165.70
Class B-3 Base Principal Distribution paid 135,165.69
------------
Class B-3 Base Principal Distribution remaining unpaid 0.00
Class B-3 Note Principal Balance after distribution on Payment Date 3,722,897.72
REMAINING AVAILABLE FUNDS --
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 --
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 --
AMOUNT PAYABLE TO RESIDUAL HOLDER --
</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 NOVEMBER 1, 1999
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 195,194,600.88
ADCPB, end of Collection Period 188,639,064.89
--------------
Base Principal Amount 6,555,535.99
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 3,841,315.02
Servicing Advances collected during the current Collection Period 3,802,490.09
--------------
Unreimbursed Servicing Advances as of current Determination Date 38,824.93
</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-1 416,456.71 5.2150% 1,870.18 -- 1,870.18
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 3,858,063.41 7.3400% 23,598.49 -- 23,598.49
Class B-2 1,929,031.35 9.5100% 15,287.57 -- 15,287.57
Class B-3 3,858,063.42 6.2420% 20,068.36 -- 20,068.36
--------------- --------------- --------------- --------------- ---------------
187,116,070.89 5.6258% 877,227.41 -- 877,227.41
</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% 6,217,621.77 -- 6,217,621.77
Class B-1 2.062% 135,165.69 -- 135,165.69
Class B-2 1.031% 67,582.83 -- 67,582.83
Class B-3 2.062% 135,165.69 0.00 135,165.70
--------------- --------------- ---------------
6,555,535.99 0.00 6,555,535.99
</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 NOVEMBER 1, 1999
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 195,194,600.88
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 81,331.08
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 81,331.08
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 177,470,912.71
Premium Rate 0.140%
One-twelfth 1/12
---------------
Premium Amount due Current Period 20,704.94
Prior Premium Amount arrearage --
---------------
Total Premium Amount due 20,704.94
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 NOVEMBER 1, 1999
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insurer 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
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
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
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
------- ----- ------
<S> <C> <C>
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 NOVEMBER 1, 1999
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 2.11%
Gross Charge Off Ratio Prior Period (0.04)%
Gross Charge Off Ratio Second Prior Period 1.90%
-----
Average of Gross Charge Off Ratio for Three Periods 1.32%
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 607,763.83 276,002.78 331,761.05 188,639,064.89 2.11%
Prior Period 211,495.69 218,750.30 (7,254.61) 195,194,600.88 (0.04)%
Second Prior Period 373,481.97 49,575.43 323,906.54 204,940,294.76 1.90%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Delinquency Trigger Ratio Current Period 5.40%
Delinquency Trigger Ratio Prior Period 4.00%
Delinquency Trigger Ratio Second Prior Period 3.68%
-----
Average of Delinquency Trigger Ratios 4.36%
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 10,338,529.58 191,568,691.09 5.40%
Prior Period 8,048,334.34 201,008,526.95 4.00%
Second Prior Period 7,647,341.34 207,574,497.21 3.68%
</TABLE>
<TABLE>
<CAPTION>
ADCPB Delinquency Ratio
----------- -----------------
<S> <C> <C>
Current 181,230,162 94.60%
31-60 Days Past Due 6,064,633 3.17%
61-90 Days Past Due 2,194,224 1.15%
91+ Days Past Due 2,079,672 1.09%
----------- ------
TOTAL 191,568,691 100.00%
</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 2,165,058.26
Current month ADCPB Substituted --
--------------
Cumulative ADCPB Substituted 2,165,058.26
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
Available Amount to Note Holders: 13,181,478.13
Disbursements from Collection Account: Section 3.04(b) of the Indenture
(i) Initial Unpaid Amounts inadvertently deposited in Collection Account --
(ii) Indemnity Payments paid inadvertently deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 4,137,173.40
(b) Servicer Fees from current and prior Collection Period 99,805.47
(c) Servicing Charges inadvertently deposited in Collection Account --
(iv) Premium Amount due on Payment Date and unpaid Premium Amounts 25,529.11
(v) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 416.67
(vi) Reimbursable Trustee Expenses per 7.07(a)(ii) --
(vii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 125,638.47
Class A-2 Note Interest 260,047.14
Class A-3 Note Interest 221,916.32
Class A-4 Note Interest 401,672.54
(viii) Class B-1 Note Interest 26,203.01
(ix) Class B-2 Note Interest 19,800.92
(x) Class B-3 Note Interest 15,678.20
(xi) Class A Base Principal Distribution Amount plus Class A Overdue Principal
Class A-1 Principal Distribution Amount 7,464,626.05
Class A-2 Principal Distribution Amount --
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xii) Note Insurer Reimbursement Amount --
(xiii) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 162,274.49
(xiv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 81,137.25
(xv) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 101,421.56
(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 38,137.54
</TABLE>
Reviewed By:
----------------------------------------------------------
Sandy B. Ho
Chief Financial Officer
Page 1
<PAGE> 12
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED NOVEMBER 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 29,374,418.40 7,464,626.05 -- 7,464,626.05 21,909,792.34 0.3099463
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 260,135,498.00 218,820,922.40 7,464,626.05 -- 7,464,626.05 211,356,296.34 0.8124854
Class B-1 5,655,120.00 4,756,976.98 162,274.49 -- 162,274.49 4,594,702.48 0.8124854
Class B-2 2,827,560.00 2,378,488.49 81,137.25 -- 81,137.25 2,297,351.24 0.8124854
Class B-3 3,534,450.00 2,973,110.61 101,421.56 -- 101,421.56 2,871,689.05 0.8124854
--------------- --------------- --------------- --------- --------------- ---------------
Total 272,152,628.00 228,929,498.47 7,809,459.35 -- 7,809,459 221,120,039.12
</TABLE>
Page 2
<PAGE> 13
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of October 31, 1999 5,849,655.00
Investment earnings on amounts in Collection Account 19,829.80
Payments due Collection Account from last 3 business days of Collection Period 2,513,318.67
Additional contribution for terminated trade-ups and rebooked leases --
Servicer Advance on current Determination Date 4,798,674.66
-------------
Available Funds on Payment Date 13,181,478.13
INITIAL UNPAID AMOUNTS INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
-------------
REMAINING AVAILABLE FUNDS 13,181,478.13
INDEMNITY PAYMENTS PAID INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
-------------
REMAINING AVAILABLE FUNDS 13,181,478.13
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 4,137,173.40
Unreimbursed Servicer Advances paid 4,137,173.40
-------------
Unreimbursed Servicer Advances remaining unpaid --
-------------
REMAINING AVAILABLE FUNDS 9,044,304.73
SERVICER FEES
Servicer Fees due 99,805.47
Servicer Fees paid 99,805.47
-------------
Servicer Fees remaining unpaid --
-------------
REMAINING AVAILABLE FUNDS 8,944,499.26
SERVICER CHARGES INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
-------------
REMAINING AVAILABLE FUNDS 8,944,499.26
PREMIUM AMOUNT
Premium Amount due 25,529.11
Premium Amount paid 25,529.11
-------------
Premium Amount remaining unpaid --
-------------
REMAINING AVAILABLE FUNDS 8,918,970.15
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 8,918,553.48
</TABLE>
Page 3
<PAGE> 14
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 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 8,918,553.48
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 125,638.47
Class A-2 Note Interest 260,047.14
Class A-3 Note Interest 221,916.32
Class A-4 Note Interest 401,672.54
--------------
Total Class A Interest due 1,009,274.46
--------------
REMAINING AVAILABLE FUNDS 7,909,279.03
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 26,203.01
Class B-1 Note Interest paid 26,203.01
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,883,076.01
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 19,800.92
Class B-2 Note Interest paid 19,800.92
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,863,275.09
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 15,678.20
Class B-3 Note Interest paid 15,678.20
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 7,847,596.89
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 7,464,626.05
Class A Note Principal Balance as of preceding Payment Date 218,820,922.40
--------------
Class A Base Principal Distribution Amount paid 7,464,626.05
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 29,374,418.40
Class A-1 Base Principal Distribution Amount paid 7,464,626.05
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 21,909,792.34
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 4
<PAGE> 15
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 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 382,970.84
NOTE INSURER REIMBURSEMENT AMOUNT
Note Insurer Reimbursement Amount due --
Note Insurer Reimbursement Amount paid --
-------------
Note Insurer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 382,970.84
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 4,756,976.98
Class B-1 Base Principal Distribution due 162,274.49
Class B-1 Base Principal Distribution paid 162,274.49
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 4,594,702.48
REMAINING AVAILABLE FUNDS 220,696.35
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 2,378,488.49
Class B-2 Base Principal Distribution due 81,137.25
Class B-2 Base Principal Distribution paid 81,137.25
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 2,297,351.24
REMAINING AVAILABLE FUNDS 139,559.10
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
</TABLE>
Page 5
<PAGE> 16
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
Class B-3 Note Principal Balance as of preceding Payment Date 2,973,110.61
Class B-3 Base Principal Distribution due 101,421.56
Class B-3 Base Principal Distribution paid 101,421.56
------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 2,871,689.05
REMAINING AVAILABLE FUNDS 38,137.54
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 38,137.54
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 38,137.54
AMOUNT PAYABLE TO RESIDUAL HOLDER 38,137.54
</TABLE>
Page 6
<PAGE> 17
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 239,533,136.56
ADCPB, end of Collection Period 231,723,677.21
--------------
Base Principal Amount 7,809,459.35
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 5,440,752.84
Servicing Advances collected during the current Collection Period 1,303,579.44
--------------
Unreimbursed Servicing Advances as of current Determination Date 4,137,173.40
</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 29,374,418.40 4.967 125,638.47 -- 125,638.47
Class A-2 57,258,085.00 5.450 260,047.14 -- 260,047.14
Class A-3 48,068,516.00 5.540 221,916.32 -- 221,916.32
Class A-4 84,119,903.00 5.730 401,672.54 -- 401,672.54
Class B-1 4,756,976.98 6.610 26,203.01 -- 26,203.01
Class B-2 2,378,488.49 9.990 19,800.92 -- 19,800.92
Class B-3 2,973,110.61 6.328 15,678.20 -- 15,678.20
--------------- --------------- --------------- --------------- ---------------
228,929,498.47 5.613 1,070,956.59 -- 1,070,956.59
</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% 7,464,626.05 -- 7,464,626.05
Class B-1 2.078% 162,274.49 -- 162,274.49
Class B-2 1.039% 81,137.25 -- 81,137.25
Class B-3 1.299% 101,421.56 0.00 101,421.56
------------ ----------- ------------
7,809,459.35 0.00 7,809,459.35
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 239,533,136.56
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 99,805.47
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 99,805.47
</TABLE>
Page 7
<PAGE> 18
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 218,820,922.40
Premium Rate 0.140%
One-twelfth 1/12
---------------
Premium Amount due Current Period 25,529.11
Prior Premium Amount arrearage --
---------------
Total Premium Amount due 25,529.11
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> 19
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insurer 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
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
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 Notes 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, Class B-2, or Class B-3, as the case
may be. No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
-------- ------ ------
<S> <C>
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 30 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> 20
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-1
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 0.38%
Gross Charge Off Ratio Prior Period 0.14%
Gross Charge Off Ratio Second Prior Period 2.95%
----
Average of Gross Charge Off Ratio for Three Periods 1.16%
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 316,772.51 242,790.69 73,981.82 231,723,677.21 0.38%
Prior Period 152,617.12 125,065.75 27,551.37 239,533,136.56 0.14%
Second Prior Period 660,126.79 54,261.42 605,865.37 246,857,386.02 2.95%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 4.96%
Delinquency Trigger Ratio Prior Period 3.67%
Delinquency Trigger Ratio Second Prior Period 3.97%
----
Average of Delinquency Trigger Ratios 4.20%
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 11,714,036.02 236,271,241.53 4.96%
Prior Period 8,957,773.95 244,282,225.73 3.67%
Second Prior Period 10,004,662.57 252,197,207.71 3.97%
</TABLE>
<TABLE>
<CAPTION>
ADCPB Delinquency Ratio
----- -----------------
<S> <C> <C>
Current 224,557,206 95.04%
31-60 Days Past Due 6,525,651 2.76%
61-90 Days Past Due 2,262,017 0.96%
91+ Days Past Due 2,926,368 1.24%
----------- ------
TOTAL 236,271,242 100.00%
</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 894,477.92
Current month ADCPB Substituted 722,705.57
--------------
Cumulative ADCPB Substituted 1,617,183.49
</TABLE>
Page 10
<PAGE> 21
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
Available Amount to Note Holders: 5,116,673.90
Reserve Account balance, beginning 1,751,034.78
Disbursements from Collection Account: Section 3.05(a) of the Indenture
(i) Initial Unpaid Amounts inadvertently deposited in Collection Account -
(ii) Indemnity Payments paid inadvertently deposited in Collection Account -
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 736,315.75
(b) Servicer Fees from current and prior Collection Period 71,646.32
(c) Servicing Charges inadvertently deposited in Collection Account -
(iv) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 416.67
(v) Reimbursable Trustee Expenses pre 7.07(a)(ii) -
(vi) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 130,908.12
Class A-2 Note Interest 172,031.87
Class A-3 Note Interest 105,098.57
Class A-4 Note Interest 360,555.57
(vii) Class B Note Interest 82,327.82
(viii) Class C Note Interest 61,362.83
(ix) Class D Note Interest 18,732.42
(x) Class A Base Principal Distribution Amount
Class A-1 Principal Distribution Amount 3,281,659.48
Class A-2 Principal Distribution Amount -
Class A-3 Principal Distribution Amount -
Class A-4 Principal Distribution Amount -
(xi) Class B Base Principal Distribution Amount -
(xii) Class C Base Principal Distribution Amount -
(xiii) Class D Base Principal Distribution Amount -
(xv) Class E Note Interest 13,848.50
(xvi) Class E Principal Distribution Amount -
(xviii) Reserve Account Reimbursement/(Withdrawal) -
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) -
(xx) Remaining Amount to Residual Holder 81,769.98
Reserve Account balance, ending 1,751,034.78
Disbursements from Reserve Account:
Interest earned on Reserve Account to Residual Holder 8,341.40
</TABLE>
Reviewed By:
-------------------------------------------------------------
Sandy B. Ho
Chief Financial Officer
<PAGE> 22
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of October 31, 1999 1,862,006.16
Investment earnings on amounts in Collection Account 8,737.90
Payments due Collection Account from last 3 business days of Collection Period 1,074,932.92
Additional contribution for terminated trade-ups and rebooked leases 35,685.31
Servicer Advance on current Determination Date 2,135,311.61
------------
AVAILABLE FUNDS ON PAYMENT DATE 5,116,673.90
Reserve Account balance 1,751,034.78
------------
TOTAL AVAILABLE FUNDS 6,867,708.68
Initial Unpaid Amounts inadvertently deposited in Collection Account --
------------
REMAINING AVAILABLE FUNDS 6,867,708.68
Indemnity Payments paid inadvertently deposited in Collection Account --
------------
REMAINING AVAILABLE FUNDS 6,867,708.68
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 736,315.75
Unreimbursed Servicer Advances paid 736,315.75
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,131,392.93
SERVICER FEES
Servicer Fees due 71,646.32
Servicer Fees paid 71,646.32
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,059,746.61
SERVICER CHARGES INADVERTENTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,059,746.61
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 6,059,329.94
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 6,059,329.94
</TABLE>
Page 2
<PAGE> 23
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 130,908.12
Class A-2 Note Interest 172,031.87
Class A-3 Note Interest 105,098.57
Class A-4 Note Interest 360,555.57
Total Class A Interest due 768,594.13
--------------
REMAINING AVAILABLE FUNDS 5,290,735.81
CLASS B NOTE INTEREST
Class B Note Interest due 82,327.82
Class B Note Interest paid 82,327.82
--------------
Class B Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,208,407.99
CLASS C NOTE INTEREST
Class C Note Interest due 61,362.83
Class C Note Interest paid 61,362.83
--------------
Class C Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,147,045.16
CLASS D NOTE INTEREST
Class D Note Interest due 18,732.42
Class D Note Interest paid 18,732.42
--------------
Class D Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,128,312.74
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 3,205,002.44
Class A Note Principal Balance as of preceding Payment Date 140,520,169.84
--------------
Class A Base Principal Distribution Amount paid 3,205,002.44
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 27,753,529.84
Class A-1 Base Principal Distribution Amount paid 3,205,002.44
--------------
Class A-1 Note Principal Balance after distribution 24,548,527.40
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-2 Note Principal Balance as of preceding Payment Date 31,956,385.00
Class A-2 Base Principal Distribution Amount paid --
--------------
Class A-2 Note Principal Balance after distribution 31,956,385.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance as of preceding Payment Date 18,823,624.00
Class A-3 Base Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution 18,823,624.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance as of preceding Payment Date 61,986,631.00
Class A-4 Base Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution 61,986,631.00
REMAINING AVAILABLE FUNDS 1,923,310.30
</TABLE>
Page 3
<PAGE> 24
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CLASS B BASE PRINCIPAL DISTRIBUTION
Class B Note Principal Balance as of preceding Payment Date 13,570,520.00
Class B Base Principal Distribution due --
Class B Base Principal Distribution paid --
-------------
Class B Base Principal Distribution remaining unpaid --
Class B Note Principal Balance after distribution on Payment Date 13,570,520.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS C BASE PRINCIPAL DISTRIBUTION
Class C Note Principal Balance as of preceding Payment Date 9,192,933.00
Class C Base Principal Distribution due --
Class C Base Principal Distribution paid --
-------------
Class C Base Principal Distribution remaining unpaid --
Class C Note Principal Balance after distribution on Payment Date 9,192,933.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS D BASE PRINCIPAL DISTRIBUTION
Class D Note Principal Balance as of preceding Payment Date 2,188,793.00
Class D Base Principal Distribution due --
Class D Base Principal Distribution paid --
-------------
Class D Base Principal Distribution remaining unpaid --
Class D Note Principal Balance after distribution on Payment Date 2,188,793.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS A REALLOCATED PRINCIPAL DISTRIBUTION
Class A-1 Note Principal Balance after Base Principal 24,548,527.40
Class A-1 Reallocated Principal Distribution --
-------------
Class A-1 Note Principal Balance after Reallocation 24,548,527.40
Remaining Available Funds 1,923,310.30
-------------
Class A-2 Note Principal Balance after Base Principal 31,956,385.00
Class A-2 Reallocated Principal Distribution --
-------------
Class A-2 Note Principal Balance after Reallocation 31,956,385.00
Remaining Available Funds 1,923,310.30
-------------
Class A-3 Note Principal Balance after Base Principal 18,823,624.00
Class A-3 Reallocated Principal Distribution --
-------------
Class A-3 Note Principal Balance after Reallocation 18,823,624.00
Remaining Available Funds 1,923,310.30
-------------
Class A-4 Note Principal Balance after Base Principal 61,986,631.00
Class A-4 Reallocated Principal Distribution --
-------------
Class A-4 Note Principal Balance after Reallocation 61,986,631.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS B REALLOCATED PRINCIPAL DISTRIBUTION
Class B Note Principal Balance after Base Principal 13,570,520.00
Class B Reallocated Principal Distribution paid --
-------------
Class B Note Principal Balance after Reallocation 13,570,520.00
REMAINING AVAILABLE FUNDS 1,923,310.30
</TABLE>
Page 4
<PAGE> 25
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CLASS C REALLOCATED PRINCIPAL DISTRIBUTION
Class C Note Principal Balance after Base Principal 9,192,933.00
Class C Reallocated Principal Distribution paid --
-------------
Class C Note Principal Balance after Reallocation 9,192,933.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS D REALLOCATED PRINCIPAL DISTRIBUTION
Class D Note Principal Balance after Base Principal 2,188,793.00
Class D Reallocated Principal Distribution paid --
Class D Note Principal Balance after Reallocation 2,188,793.00
REMAINING AVAILABLE FUNDS 1,923,310.30
CLASS E NOTE INTEREST
Class E Note Interest due 13,848.50
Class E Note Interest paid 13,848.50
-------------
Class E Note Interest remaining unpaid --
-------------
REMAINING AVAILABLE FUNDS 1,909,461.80
CLASS E BASE PRINCIPAL DISTRIBUTION
Class E Note Principal Balance as of preceding Payment Date 2,363,897.00
Class E Base Principal Distribution due --
Class E Base Principal Distribution paid --
-------------
Class E Base Principal Distribution remaining unpaid --
Class E Note Principal Balance after distribution on Payment Date 2,363,897.00
REMAINING AVAILABLE FUNDS 1,909,461.80
CLASS E REALLOCATED PRINCIPAL DISTRIBUTION
Class E Note Principal Balance after Base Principal 2,363,897.00
Class E Reallocated Principal Distribution paid --
Class E Note Principal Balance after Reallocation 2,363,897.00
REMAINING AVAILABLE FUNDS 1,909,461.80
CLASS A SUPPLEMENTAL PRINCIPAL DISTRIBUTION
Class A-1 Note Principal Balance after Reallocated Principal 24,548,527.40
Class A-1 Supplemental Principal Distribution 76,657.04
-------------
Class A-1 Note Principal Balance after Supplemental 24,471,870.36
Remaining Available Funds 1,832,804.76
-------------
Class A-2 Note Principal Balance after Reallocated Principal 31,956,385.00
Class A-2 Supplemental Principal Distribution --
-------------
Class A-2 Note Principal Balance after Supplemental 31,956,385.00
Remaining Available Funds 1,832,804.76
-------------
Class A-3 Note Principal Balance after Reallocated Principal 18,823,624.00
Class A-3 Supplemental Principal Distribution --
-------------
Class A-3 Note Principal Balance after Supplemental 18,823,624.00
Remaining Available Funds 1,832,804.76
-------------
Class A-4 Note Principal Balance after Reallocated Principal 61,986,631.00
Class A-4 Supplemental Principal Distribution --
-------------
Class A-4 Note Principal Balance after Supplemental 61,986,631.00
REMAINING AVAILABLE FUNDS 1,832,804.76
</TABLE>
Page 5
<PAGE> 26
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CLASS B SUPPLEMENTAL PRINCIPAL DISTRIBUTION
Class B Note Principal Balance after Reallocated Principal 13,570,520.00
Class B Supplemental Principal Distribution paid --
-------------
Class B Note Principal Balance after Supplemental 13,570,520.00
REMAINING AVAILABLE FUNDS 1,832,804.76
CLASS C SUPPLEMENTAL PRINCIPAL DISTRIBUTION
Class C Note Principal Balance after Reallocated Principal 9,192,933.00
Class C Supplemental Principal Distribution paid --
-------------
Class C Note Principal Balance after Supplemental 9,192,933.00
REMAINING AVAILABLE FUNDS 1,832,804.76
CLASS D SUPPLEMENTAL PRINCIPAL DISTRIBUTION
Class D Note Principal Balance after Reallocated Principal 2,188,793.00
Class D Supplemental Principal Distribution paid --
-------------
Class D Note Principal Balance after Supplemental 2,188,793.00
REMAINING AVAILABLE FUNDS 1,832,804.76
CLASS E SUPPLEMENTAL PRINCIPAL DISTRIBUTION
Class E Note Principal Balance after Reallocated Principal 2,363,897.00
Class E Supplemental Principal Distribution paid --
-------------
Class E Note Principal Balance after Supplemental 2,363,897.00
REMAINING AVAILABLE FUNDS 1,832,804.76
RESERVE FUND
Required Reserve Fund Amount 1,751,034.78
Reserve Account Balance, Ending 1,751,034.78
Reserve Account Deposit/(Withdrawal) 0.00
-------------
REMAINING AVAILABLE FUNDS 81,769.98
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 81,769.98
AMOUNT PAYABLE TO TRUST CERTIFICATE HOLDER 81,769.98
</TABLE>
Page 6
<PAGE> 27
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 171,951,179.84
ADCPB, end of Collection Period 168,757,136.36
---------------
Base Principal Amount 3,194,043.48
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,292,040.01
Servicing Advances collected during the current Collection Period 1,555,724.26
---------------
Unreimbursed Servicing Advances as of current Determination Date 736,315.75
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 171,951,179.84
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 71,646.32
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 71,646.32
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 7
<PAGE> 28
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
INTEREST PAYMENTS TO NOTEHOLDERS
<TABLE>
<CAPTION>
Beginning
Initial of Period Interest Interest
Class Balance Balance Rate Interest Due Paid
----- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
A-1 30,818,212.00 27,753,529.84 5.855% 130,908.12 130,908.12
A-2 31,956,385.00 31,956,385.00 6.460% 172,031.87 172,031.87
A-3 18,823,624.00 18,823,624.00 6.700% 105,098.57 105,098.57
A-4 61,986,631.00 61,986,631.00 6.980% 360,555.57 360,555.57
-------------- -------------- -------------- -------------- --------------
Class A 143,584,852.00 140,520,169.84 768,594.13 768,594.13
------- -------------- -------------- -------------- -------------- --------------
B 13,570,520.00 13,570,520.00 7.280% 82,327.82 82,327.82
C 9,192,933.00 9,192,933.00 8.010% 61,362.83 61,362.83
D 2,188,793.00 2,188,793.00 10.270% 18,732.42 18,732.42
E 2,363,897.00 2,363,897.00 7.030% 13,848.50 13,848.50
-------------- -------------- -------------- -------------- --------------
Total Notes 170,900,995.00 167,836,312.84 944,865.70 944,865.70
- ----------- -------------- -------------- -------------- -------------- --------------
</TABLE>
PRINCIPAL PAYMENTS TO NOTEHOLDERS
<TABLE>
<CAPTION>
Beginning (Monthly) (Reallocated)(Supplemental) Total End Ending
of Period Principal Principal Principal Principal of Period Certificate
Class Balance Paid Paid Paid Paid Balance Factor
----- -------------- -------------- ---------- ------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 27,753,529.84 3,205,002.44 0.00 76,657.04 3,281,659.48 24,471,870.36 0.7940717
A-2 31,956,385.00 0.00 0.00 0.00 0.00 31,956,385.00 1.0000000
A-3 18,823,624.00 0.00 0.00 0.00 0.00 18,823,624.00 1.0000000
A-4 61,986,631.00 0.00 0.00 0.00 0.00 61,986,631.00 1.0000000
-------------- -------------- ---------- ------------- -------------- --------------
Class A 140,520,169.84 3,205,002.44 0.00 76,657.04 3,281,659.48 137,238,510.36
------- -------------- -------------- ---------- ------------- -------------- --------------
B 13,570,520.00 0.00 0.00 0.00 0.00 13,570,520.00 1.0000000
C 9,192,933.00 0.00 0.00 0.00 0.00 9,192,933.00 1.0000000
D 2,188,793.00 0.00 0.00 0.00 0.00 2,188,793.00 1.0000000
E 2,363,897.00 0.00 0.00 0.00 0.00 2,363,897.00 1.0000000
-------------- -------------- ---------- ------------- -------------- --------------
Total Notes 167,836,312.84 3,205,002.44 0.00 76,657.04 3,281,659.48 164,554,653.36
- ----------- -------------- -------------- ---------- ------------- -------------- --------------
</TABLE>
Page 8
<PAGE> 29
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
PRINCIPAL PAYMENT CALCULATION
<TABLE>
<CAPTION>
Investor Investor Investor Supplemental
(defined) Monthly Reallocated Supplemental Total Percentage
Class Principal Principal Principal Principal of Principal
Class Percentage Amount Amount Amount Amount Allocated
- ----- ------------ ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
A 82.00% 3,205,002.44 0.00 76,657.04 3,281,659.48 84.02%
B 7.75% 0.00 0.00 0.00 0.00 7.94%
C 5.25% 0.00 0.00 0.00 0.00 5.38%
D 1.25% 0.00 0.00 0.00 0.00 1.28%
E 1.35% 0.00 0.00 0.00 0.00 1.38%
------------ ------------ --------- ------------ ------------ ------------
-- 3,205,002.44 0.00 0.00 3,281,659.48 100.00%
</TABLE>
FLOOR CALCULATION
<TABLE>
<CAPTION>
Class Floor Hit? Floored
Class Floors (Y/N) Prin Amount
- --------------------------------------------------------------
<S> <C> <C> <C>
A N/A
B -- No --
C -- No --
D -- No --
E -- No --
- --------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
(Retained) Certificate Balance 4,114,867.00
Initial OC Percentage 2.40%
Overcollateralization Balance (prior) 4,114,867.00
Overcollateralization Balance (current) 4,202,483.00
Cumulative Loss Amount 0.00
Available Funds + Collection Account-Servicing 6,059,329.94
</TABLE>
Page 9
<PAGE> 30
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1999-2
- --------------------------------------------------------------------------------
FIRST SIERRA RECEIVABLES III, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED NOVEMBER 1, 1999
<TABLE>
<CAPTION>
RESTRICTING EVENT DETERMINATION:
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insurer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
</TABLE>
<TABLE>
<CAPTION>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
Yes/No
------
<S> <C>
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 Maturity Date, the Class C Maturity Date, the Class D
Maturity Date, or the Class E 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 Notes, Class C Notes, Class D Notes,
or Class E Notes, as the case may be. No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
------- ----- -------
<S> <C> <C>
6.01(i) Failure to make payment, deposit, transfer, or delivery 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
</TABLE>
Page 10
