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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 10, 1999
The CIT Group Securitization Corporation II
The CIT Group, Inc.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
333-34539 22-3328188
333-34539-01 22-3411516
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(Commission File Number) (IRS Employer Identification No.)
650 CIT Drive
Livingston, New Jersey 07039-0491
1211 Avenue of the Americas
New York, New York 10036
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(Address of principal executive offices and zip code)
(973) 740-5000
(212) 536-1950
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Registrants' telephone number, including area code:
N/A
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(Former name or former address, if changed since last report)
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<PAGE>
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following are filed herewith. The exhibit numbers correspond with Item
601(b) of Regulation S-K.
Exhibit No. Description
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99.1 Computational Materials
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each
of the registrants have duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
The CIT Group Securitization Corporation II
By: /s/ FRANK GARCIA
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Name: Frank Garcia
Title: Vice President
The CIT Group, Inc.
By: /s/ FRANK GARCIA
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Name: Frank Garcia
Title: Vice President
Dated: May 12, 1999
$575,694,905
(APPROXIMATE)
CIT RV TRUST 1999-A
THE CIT GROUP SECURITIZATION CORPORATION II
SELLER
THE CIT GROUP/SALES FINANCING, INC.
SERVICER
SUBJECT TO REVISION
TERM SHEET DATED MAY 10, 1999
Credit Suisse First Boston
Banc One Capital Markets, Inc.
Barclays Capital
Salomon Smith Barney
<PAGE>
Proceeds of the assets of the trust and amounts on deposit in the Reserve
Account are the sole sources of payments on the securities. None of the
securities represents an interest in or obligation of, or is insured or
guaranteed by, The CIT Group Securitization Corporation II, The CIT Group/Sales
Financing, Inc. or any of their respective affiliates.
This term sheet contains structural and collateral information with respect to
CIT RV Trust 1999-A. The information contained in this term sheet is preliminary
and will be superseded in its entirety by the information appearing in the
prospectus supplement relating to CIT RV Trust 1999-A and the related
prospectus. The information contained in this term sheet addresses only certain
limited aspects of the securities characteristics and does not purport to
provide a complete assessment thereof. The information contained herein may not
reflect the impact of all structural characteristics of the securities or any
changes made to the structure of the securities after the date hereof.
Additional information will be contained in the prospectus supplement and the
prospectus. You are urged to read both the prospectus supplement and the
prospectus.
Although a registration statement (including a prospectus) relating to the
securities has been filed with the Securities and Exchange Commission and is
effective, the prospectus supplement has not been filed with the SEC. The
prospectus supplement will be so filed within two business days or first use as
required by SEC rules. Sales of the securities may not be consummated unless the
purchaser has received both the prospectus supplement and the prospectus. This
term sheet shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the securities in any state or other
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities or other applicable laws
of any such state or other jurisdiction. The securities have not been approved
or disapproved by the SEC or any state securities commission.
2
<PAGE>
$575,694,905
(APPROXIMATE)
CIT RV TRUST 1999-A
THE CIT GROUP SECURITIZATION CORPORATION II
SELLER
THE CIT GROUP/SALES FINANCING, INC.
SERVICER
SUBJECT TO REVISION
TERM SHEET DATED MAY 10, 1999
o THIS TERM SHEET WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
APPEARING IN THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. YOU MAY OBTAIN A
FINAL PROSPECTUS AND PROSPECTUS SUPPLEMENT BY CONTACTING JAY STEINER AT
(212) 325-4093.
o THIS SUMMARY PROVIDES AN OVERVIEW OF CERTAIN CALCULATIONS, CASH FLOWS AND
OTHER INFORMATION TO AID YOUR UNDERSTANDING. FOR A COMPLETE DESCRIPTION OF
THESE CALCULATIONS, CASH FLOWS AND OTHER INFORMATION, YOU MUST REFER TO THE
PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
OFFERED SECURITIES
CIT RV Trust 1999-A will issue the following securities, offered to you pursuant
to this prospectus supplement and the prospectus:
o Class A-1 ____% Asset-Backed Notes (the "Class A-1 Notes") in the aggregate
principal amount of $189,940,000;
o Class A-2 __% Asset-Backed Notes (the "Class A-2 Notes") in the aggregate
principal amount of $104,360,000;
o Class A-3 __% Asset-Backed Notes (the "Class A-3 Notes") in the aggregate
principal amount of $109,680,000;
o Class A-4 __% Asset-Backed Notes (the "Class A-4 Notes") in the aggregate
principal amount of $86,480,000;
o Class A-5 __% Asset-Backed Notes (the "Class A-5 Notes") in the aggregate
principal amount of $45,220,000;
o Class B __% Asset-Backed Notes (the "Class B Notes") in the aggregate
principal amount of $28,500,000;
o __% Asset-Backed Certificates in the aggregate face amount of $11,514,905.
The trust is offering each class of notes as book-entry securities clearing
through DTC (in the United States) and Cedel or Euroclear (in Europe). The trust
is offering the certificates in fully registered, certificated form.
CLOSING DATE
On or about May 19, 1999.
CUT-OFF DATE
May 1, 1999.
INDENTURE TRUSTEE
FMB Trust Company, N.A.
3
<PAGE>
OWNER TRUSTEE
The Bank of New York.
SELLER
The CIT Group Securitization Corporation II (the "Company" or the "Seller").
SERVICER
The CIT Group/Sales Financing, Inc. ("CITSF" or the "Servicer").
DISTRIBUTION DATES; RECORD DATES
o The trust will make distributions on the securities on the 15th day of each
calendar month (or, if it is not a Business Day, the next Business Day),
beginning on June 15, 1999 (each, a "Distribution Date").
o Prior to the time that Definitive Notes are issued, the trust will make
payments on the notes on each Distribution Date to holders of record at the
close of business on the Business Day preceding the Distribution Date and
the trust will make payments on the certificates on each Distribution Date
to holders of record at the close of business on the last Business Day of
the prior calendar month (each, a "Record Date").
o If Definitive Notes are issued, the Record Date for the notes will be the
close of business on the last Business Day of the prior calendar month.
INTEREST PAYMENTS
The interest rate and pass-through rate for each class of securities is as
specified above. The trust will calculate interest on the securities on the
basis of a 360-day year consisting of twelve 30-day months.
The trust will calculate the amount of interest accrued on the securities and
due on any Distribution Date by reference to the one month period from and
including the prior Distribution Date (or, in the case of the first Distribution
Date, from and including the Closing Date) to but excluding the current
Distribution Date.
On each Distribution Date, the trust will distribute accrued interest to the
noteholders at the applicable Interest Rate on the outstanding principal balance
on each class of notes and to the certificateholders at the Pass-Through Rate on
the outstanding principal balance of the certificates. The trust will not make
interest payments to holders of Class B Notes on any Distribution Date until all
interest due to the holders of Class A Notes on that Distribution Date has been
paid in full. The trust will not make interest payments to certificateholders on
any Distribution Date until all interest and principal (other than additional
principal distributions) due to the noteholders on that Distribution Date have
been paid in full.
PRINCIPAL PAYMENTS
On each Distribution Date the trust will pay principal collections on the
Contracts to the securityholders in an amount generally equal to the decrease in
the Pool Balance during the related Due Period.
Each "Due Period" is the calendar month that ends prior to a Distribution Date.
The initial Due Period will be May 1999.
Principal collections on the Contracts will be paid sequentially as follows:
o to the Class A-1 Notes until the outstanding principal balance of the Class
A-1 Notes has been paid in full;
o then, to the Class A-2 Notes until the outstanding principal balance of the
Class A-2 Notes has been paid in full;
o then, to the Class A-3 Notes until the outstanding principal balance of the
Class A-3 Notes has been paid in full;
o then, to the Class A-4 Notes until the outstanding principal balance of the
Class A-4 Notes has been paid in full;
o then, to the Class A-5 Notes until the outstanding principal balance of the
Class A-5 Notes has been paid in full;
o then, to the Class B Notes until the outstanding principal balance of the
Class B Notes has been paid in full; and
o then, to the certificates until the outstanding principal balance of the
certificates has been paid in full.
4
<PAGE>
On the Closing Date, the aggregate outstanding principal amount of the
securities will equal 101.8% of the Initial Pool Balance. In order to reduce the
securities premium, the trust will pay additional principal on each Distribution
Date to the securityholders to the extent of the remaining funds, if any,
available for distribution after all other payments due on that Distribution
Date have been paid and until the outstanding principal amount of the securities
is less than or equal to the Pool Balance. The "Pool Balance" is the outstanding
principal balance of the Contracts at any time. The "Initial Pool Balance"
equals the Pool Balance as of the Cut-off Date.
The additional principal distribution from the remaining available funds
described above will be distributed to the noteholders in sequential order until
the notes have been paid in full and then to the certificates until the
certificates have been paid in full.
FINAL SCHEDULED DISTRIBUTION DATES
The outstanding principal amount, if any, of each class of securities will be
payable in full on the date specified for each below:
o Class A-1 Notes: December 2005 (the "Class A-1 Note Final Scheduled
Distribution Date").
o Class A-2 Notes: July 2008 (the "Class A-2 Note Final Scheduled
Distribution Date").
o Class A-3 Notes: April 2011 (the "Class A-3 Note Final Scheduled
Distribution Date").
o Class A-4 Notes: June 2013 (the "Class A-4 Note Final Scheduled
Distribution Date").
o Class A-5 Notes: August 2015 (the "Class A-5 Note Final Scheduled
Distribution Date").
o Class B Notes: March 2017 (the "Class B Note Final Scheduled Distribution
Date").
o Certificates: November 2019 (the "Certificate Final Scheduled Distribution
Date").
The actual date on which the aggregate outstanding principal amount of any class
of notes or of the certificates is paid may be earlier than the respective Final
Scheduled Distribution Dates set forth above.
ACCELERATED MATURITY DATE
The notes may be accelerated and subject to immediate payment at par plus
accrued and unpaid interest upon the occurrence of an Event of Default under the
Indenture. So long as the Class A Notes are outstanding, only the holders of the
Class A Notes will have the right to declare an Event of Default under the
Indenture and to accelerate the notes or to require the sale of the Contracts.
So long as the notes are outstanding, the certificateholders will have no right
to require the sale of the Contracts. In the case of the declaration of an Event
of Default, the notes will be immediately due and payable.
OPTIONAL PURCHASE
Under certain circumstances, CITSF may elect to repurchase all of the remaining
Contracts. The repurchase price will be the aggregate Purchase Price for the
Contracts (including defaulted Contracts) plus the appraised value of any other
property held by the trust (less liquidation expenses). This optional repurchase
is known as the "Optional Purchase."
CITSF may exercise the Optional Purchase only after the Pool Balance as of the
last day of any Due Period is less than 10% of the Initial Pool Balance. The
exercise of an Optional Purchase will effect early retirement of the securities
at the unpaid principal amount of the securities plus any accrued and unpaid
interest thereon at the applicable Interest Rate or Pass-Through Rate.
AUCTION CALL
The Indenture Trustee must solicit bids from third parties for the purchase of
the Contracts which remain in the trust after the first Distribution Date that
the Pool Balance is less than 5% of the Initial Pool Balance. This mandatory bid
process and related sale, if any, is known as the "Auction Call." The Indenture
Trustee may accept third party bids to purchase the Contracts pursuant to the
Auction Call only if the bid price is sufficient to pay the Servicer Payment and
the unpaid principal amount of the securities plus any accrued and unpaid
interest thereon at the applicable Interest Rate or Pass-Through Rate. If the
Indenture Trustee does not receive satisfactory bids, the Indenture Trustee is
not required to solicit additional bids, to pursue negotiations or to sell the
Contracts to any party.
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<PAGE>
If the Auction Call results in a sale, the Indenture Trustee must pay from the
sale proceeds the Servicer Payment and all amounts owing to the holders of
securities in the same order as collections received on the Contracts. The
expenses of the Auction Call will be paid by the Servicer.
TRUST PROPERTY
The trust will primarily include the following property:
o a pool of simple interest recreation vehicle retail installment sale
contracts and direct loans (the "Contracts") secured by the motor homes,
fifth wheels, travel trailers, horse trailers and other types of recreation
vehicles which are financed thereby (the "Financed Vehicles");
o all monies received under the Contracts on and after the Cut-off Date,
exclusive of interest due and payable prior to the Cut-off Date;
o an assignment of the security interests in the Financed Vehicles;
o the Collection Account, the Certificate Distribution Account and the Note
Distribution Account in each case together with the proceeds thereof;
o the Reserve Account;
o the right to proceeds from claims under certain insurance policies which
insure individual Financed Vehicles or the related obligors; and
o certain rights under the Purchase Agreement and the Sale and Servicing
Agreement.
THE CONTRACTS
On the Closing Date, the trust will acquire from the Seller Contracts with an
aggregate principal balance of approximately $565,515,624. As of the Cut-off
Date, the Contracts had the following characteristics:
Range of Contract Rates 7.50% to 21.24%
Weighted Average Contract Rate 9.30%
Range of Original Principal Balances $1,952 to $346,889
Average Original Principal Balance $41,639
Range of Remaining Principal Balances $1,277 to $342,675
Average Remaining Principal Balance $40,876
Range of Original Terms to Maturity 24 to 242 months
Weighted Average Original Term to Maturity 179 months
Range of Remaining Terms to Maturity 13 to 240 months
Weighted Average Remaining Term to Maturity 174 months
Percentage of New/Used Recreation Vehicles by 64.77% / 35.23%
Pool Balance as of the Cut-off Date
The obligors may generally prepay their Contracts at any time without premium or
penalty.
CREDIT ENHANCEMENT
RESERVE ACCOUNT
On the Closing Date, the Company will establish an account in the name of the
Indenture Trustee (the "Reserve Account") for the benefit of the
securityholders. If funds in the Collection Account are insufficient to make
required payments of interest and payments of principal due on the securities
(other than additional principal distributions), then the Indenture Trustee will
have the right to use funds in the Reserve Account to make these payments. The
Reserve Account will be funded as follows:
o On the Closing Date one or more affiliates of the Company (the "Lender")
will make a loan (the "Loan") to the trust in the amount of $9,670,317.
o Periodically after the Closing Date the Servicer will deposit Excess
Collections, if any, in the Reserve Account so that it equals the Specified
Reserve Amount for the next Distribution Date.
The Servicer will deposit the amounts collected on the Contracts each month into
the Collection Account. "Excess Collections" are generally the amounts that
remain in the Collection Account on any Distribution Date after the trust has
paid amounts owing to securityholders and the Servicer and has deposited certain
amounts into the Reserve Account with respect to interest on the Loan.
Amounts in the Reserve Account may exceed the Specified Reserve Amount on a
Distribution Date. If this occurs, the trust will use these excess funds to pay
principal and interest due on the Loan or will
6
<PAGE>
release the remaining excess funds to the Affiliated Owner.
The "Specified Reserve Amount" with respect to any Distribution Date is
generally equal to the greater of:
o the lesser of (a) $9,670, 317 and (b) 2.0% of the principal amount of the
Contracts as of the first day of the related Due Period; and
o $5,655,156 (which is equal to 1.0% of the Initial Pool Balance).
Provided that, prior to the first Distribution Date on which the outstanding
principal amount of the securities is less than or equal to the Pool Balance,
the Specified Reserve Amount will be $9,670,317.
SUBORDINATION
The Class B Notes will be subordinated to the Class A Notes as follows:
o the trust will not pay interest on the Class B Notes on any Distribution
Date until all interest owed on the Class A Notes through that Distribution
Date has been paid in full; and
o the trust will not pay principal on the Class B Notes on any Distribution
Date until the Class A Notes have been paid in full.
The certificates will be subordinated to the notes as follows:
o the trust will not pay interest on the certificates on any Distribution
Date until all principal and interest owed on the notes through that
Distribution Date has been paid in full; and
o the trust will not pay principal on the certificates on any Distribution
Date until the notes have been paid in full.
MONTHLY ADVANCES
The amounts received under a Contract may not be sufficient to pay interest due
under the terms of the Contract (referred to as a "Payment Shortfall"). If a
Payment Shortfall occurs, the Servicer may advance funds to the trust to
compensate for the Payment Shortfall (referred to as a "Monthly Advance"). The
Servicer will make a Monthly Advance only if the Servicer expects to be repaid
for the Monthly Advance from future interest collections on the Contract for
which the Servicer made such a Monthly Advance. The trust will use future
interest collections on a Contract to repay a Servicer's Monthly Advance on the
Contract. If the Servicer determines that future interest collections on a
Contract will not be sufficient to repay a Monthly Advance, then the trust will
repay the Monthly Advance from collections on all Contracts.
The Servicer will not make a Monthly Advance:
o to cover any principal portion of a Contract payment;
o on a Contract which the obligor has prepaid in full; and
o on a Contract which is subject to a Relief Act Reduction.
COLLECTION ACCOUNT; PRIORITY OF DISTRIBUTIONS
On the Closing Date, the Servicer will establish an account in the name of the
Indenture Trustee known as the "Collection Account." On a monthly basis, the
Servicer will deposit all payments which the Servicer has collected on the
Contracts into the Collection Account.
On each Distribution Date, the Indenture Trustee will withdraw funds in the
Collection Account to make the following transfers and payments (to the extent
sufficient funds are available therefor) in the following order of priority:
(1) reimburse the Servicer for amounts then due for Monthly Advances made on
the Contracts and, if the Servicer is not an affiliate of CIT, pay the
Servicing Fee for the related Due Period and all accrued and unpaid
Servicing Fees owed from prior Due Periods;
(2) pay interest on the Class A Notes;
(3) pay interest on the Class B Notes;
(4) pay principal on the Class A Notes equal to the decrease in the Pool
Balance during the related Due Period sequentially to the holders of
each class of the Class A Notes until paid in full;
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<PAGE>
(5) after the Class A Notes have been paid in full, pay principal on the
Class B Notes equal to the decrease in the Pool Balance during the
related Due Period until paid in full;
(6) pay interest on the certificates;
(7) after the notes have been paid in full, pay principal on the
certificates equal to the decrease in the Pool Balance during the
related Due Period until the certificates have been paid in full;
(8) if the Servicer is an affiliate of CIT, pay the Servicing Fee for the
related Due Period and all accrued and unpaid Servicing Fees owed from
prior Due Periods;
(9) deposit into the Reserve Account an amount generally equal to 1.0% per
annum of the average outstanding principal amount of the Loan;
(10) pay principal, to the extent of any remaining funds available,
sequentially to the holders of each class of the Class A Notes, then to
the Class B Notes and then to the certificates until the outstanding
principal amount of the securities is less than or equal to the Pool
Balance; and
(11) deposit Excess Collections, if any, into the Reserve Account.
TAX STATUS
For Federal income tax purposes, the notes will constitute indebtedness and the
trust will not be characterized as an association taxable as a corporation. Each
holder of a note, by the acceptance of a note, will agree to treat the notes as
indebtedness and each holder of a certificate, by the acceptance of a
certificate, will agree to treat the trust as a partnership in which the holders
of the certificates are partners for Federal income tax purposes.
ERISA CONSIDERATIONS
Subject to the considerations discussed under "ERISA Considerations," the notes
are eligible for purchase by employee benefit plans. The certificates are not
eligible for purchase by employee benefit plans.
RATINGS OF THE SECURITIES
The trust will not issue the securities unless they receive at least the
following ratings by Standard & Poor's Rating Services, a division of The
McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service ("Moody's"):
Rating
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S&P Moody's
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Class A Notes AAA Aaa
Class B Notes A A2
Certificates BBB Baa3
A statistical rating agency may lower or withdraw its rating if circumstances so
warrant.
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<PAGE>
THE CONTRACT POOL
GENERAL
CITSF will sell the Contracts to the Company pursuant to a Purchase
Agreement to be dated as of May 1, 1999 (the "Purchase Agreement") and the
Company will sell the Contracts to the Trust pursuant to the Sale and Servicing
Agreement to be dated as of May 1, 1999 (the "Sale and Servicing Agreement"),
among the Seller, the Servicer and the Trust.
CITSF or one of its affiliates purchased the Contracts from Dealers, or
originated the Contracts directly using CITSF's underwriting standards or
acquired the Contracts from unaffiliated third parties (in which event CITSF
reviewed such Contracts to confirm that they conformed to such underwriting
standards).
All of the Contracts are Simple Interest Contracts. A "Simple Interest
Contract" is a Contract as to which interest accrues under the simple interest
method (i.e., the interest portion of each monthly payment equals the interest
on the outstanding principal balance of the related Contract for the number of
days since the most recent payment made on such Contract and the balance, if
any, of such monthly payment is applied to principal).
The Contracts were first entered onto CITSF's servicing system (which,
typically, represents the date on which CITSF or one of its affiliates funds the
purchase of such Contracts from Dealers) between June 1998 and April 1999. All
Contracts are retail installment sale contracts or direct loans each of which is
secured by recreation vehicles originated by a Dealer and purchased by CITSF or
one of its affiliates, originated directly by CITSF or one of its affiliates or
acquired by CITSF or one of its affiliates from unaffiliated third parties.
CHARACTERISTICS OF CONTRACTS
The Contract Pool consists of Contracts having an aggregate unpaid
principal balance as of the Cut-off Date of approximately $565,515,624. For the
purposes of the discussion of the characteristics of the Contracts on the
Cut-off Date contained herein, the principal balance of each Contract is the
unpaid principal balance as of the Cut-off Date.
The Contracts were selected from CITSF's portfolio of recreation vehicle
retail installment sale contracts and direct loans based on several criteria,
including the following:
(1) each Contract was originated in the United States of America;
(2) each Contract has a Contract Rate equal to or greater than 7.50%;
(3) each Contract provides for level monthly payments which include
interest at the related Contract Rate and, if paid in accordance with
its schedule, fully amortizes the amount financed over an original
term of no greater than 242 months;
(4) as of the Cut-off Date, the most recent scheduled payment of principal
and interest, if any, on each Contract was made by or on behalf of the
related Obligor or was not delinquent more than 29 days;
(5) no Financed Vehicle has been repossessed without reinstatement as of
the Cut-off Date;
(6) as of the Cut-off Date, no Obligor on any Contract was the subject of
a bankruptcy proceeding;
(7) as of the Cut-off Date, each Contract has a remaining principal
balance of not less than $1,000 and not more than $350,000; and
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<PAGE>
(8) as of the Cut-off Date, none of the Paid Ahead Simple Interest
Contracts in the Contract Pool were paid ahead more than six monthly
scheduled payments.
As of the Cut-off Date, the Contract Pool had the following
characteristics:
Range of Contract Rates 7.50% to 21.24%
Weighted average Contract Rate 9.30%
Range of original principal balances $1,952 to $346,889
Average original principal balance $41,639
Range of remaining principal balances $1,277 to 342,675
Average remaining principal balance $40,876
Range of original terms to maturity 24 to 242 months
Weighted average original term to maturity 179 months
Range of remaining terms to maturity 13 to 240 months
Weighted average remaining term to maturity 174 months
Percentage of new/used Recreation 64.77%/35.23%
Vehicles at time of origination
(by principal balance)
Allocation by Collateral Type
(by outstanding principal balance):
Motor Homes $456,291,245 80.69%
Fifth Wheels 57,663,174 10.20%
Travel Trailers 42,394,895 7.50%
Other 9,166,310 1.62%
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<PAGE>
Set forth below is a description of certain characteristics of the
Contracts.
<TABLE>
GEOGRAPHICAL DISTRIBUTION OF CONTRACTS (1)
<CAPTION>
% OF CONTRACT % OF CONTRACT
NUMBER OF POOL BY NUMBER AGGREGATE PRINCIPAL POOL BY PRINCIPAL
CONTRACTS AS OF OF CONTRACTS AS OF BALANCE OUTSTANDING BALANCE OUTSTANDING
STATE CUT-OFF DATE CUT-OFF DATE AS OF CUT-OFF DATE AS OF CUT-OFF DATE
- ----- ------------ ------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Alabama.................. 195 1.41% $ 11,084,040 1.96%
Alaska................... 22 0.16 1,966,042 0.35
Arizona.................. 649 4.69 25,003,670 4.42
Arkansas................. 304 2.20 10,499,531 1.86
California............... 2,138 15.45 85,098,984 15.05
Colorado................. 365 2.64 17,370,993 3.07
Connecticut.............. 141 1.02 4,413,749 0.78
Delaware................. 19 0.14 1,373,773 0.24
District of Columbia..... 3 0.02 170,451 0.03
Florida.................. 884 6.39 44,683,790 7.90
Georgia.................. 283 2.05 10,609,301 1.88
Hawaii................... 3 0.02 133,941 0.02
Idaho.................... 47 0.34 2,649,458 0.47
Illinois................. 336 2.43 14,707,003 2.60
Indiana.................. 170 1.23 6,769,830 1.20
Iowa..................... 50 0.36 2,252,325 0.40
Kansas................... 287 2.07 8,178,164 1.45
Kentucky................. 53 0.38 2,415,679 0.43
Louisiana................ 132 0.95 6,392,505 1.13
Maine.................... 82 0.59 3,083,867 0.55
Maryland................. 197 1.42 7,281,859 1.29
Massachusetts............ 233 1.68 6,671,164 1.18
Michigan................. 79 0.57 5,187,399 0.92
Minnesota................ 95 0.69 5,342,727 0.94
Mississippi.............. 90 0.65 2,706,156 0.48
Missouri................. 673 4.86 19,335,189 3.42
Montana.................. 40 0.29 1,976,240 0.35
Nebraska................. 41 0.30 1,334,055 0.24
Nevada................... 250 1.81 9,865,500 1.74
New Hampshire............ 108 0.78 3,327,899 0.59
New Jersey............... 201 1.45 7,407,440 1.31
New Mexico............... 103 0.74 4,695,446 0.83
New York................. 434 3.14 19,230,636 3.40
North Carolina........... 281 2.03 9,781,359 1.73
North Dakota............. 8 0.06 330,015 0.06
Ohio..................... 139 1.00 9,515,620 1.68
Oklahoma................. 633 4.58 17,960,711 3.18
Oregon................... 399 2.88 21,802,498 3.86
Pennsylvania............. 228 1.65 10,914,725 1.93
Rhode Island............. 60 0.43 1,567,388 0.28
South Carolina........... 114 0.82 4,264,159 0.75
South Dakota............. 19 0.14 1,067,991 0.19
Tennessee................ 189 1.37 7,358,650 1.30
Texas.................... 2,165 15.65 86,090,305 15.22
Utah..................... 48 0.35 2,760,404 0.49
Vermont.................. 23 0.17 1,240,781 0.22
Virginia................. 129 0.93 6,499,922 1.15
Washington............... 559 4.04 26,158,895 4.63
West Virginia............ 35 0.25 1,155,669 0.20
Wisconsin................ 75 0.54 3,020,703 0.53
Wyoming.................. 24 0.17 807,021 0.14
------ ------ ------------ ------
Total................. 13,835 100.00%(2) $565,515,624 100.00%(2)
</TABLE>
- ------------
(1) In most cases, based on the mailing addresses of the Obligors as of the
Cut-off Date.
(2) May not equal 100% due to rounding.
11
<PAGE>
<TABLE>
RANGE OF CONTRACT RATES
<CAPTION>
% OF CONTRACT % OF CONTRACT
NUMBER OF POOL BY NUMBER AGGREGATE PRINCIPAL POOL BY PRINCIPAL
RANGE OF CONTRACTS AS OF OF CONTRACTS AS OF BALANCE OUTSTANDING BALANCE OUTSTANDING
CONTRACT RATES CUT-OFF DATE CUT-OFF DATE AS OF CUT-OFF DATE AS OF CUT-OFF DATE
-------------- --------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
7.50%-7.99%...................... 734 5.31% $ 81,384,015 14.39%
8.00%-8.99%...................... 3,153 22.79 244,461,443 43.23
9.00%-9.99%...................... 3,273 23.66 121,768,067 21.53
10.00%-10.99%.................... 2,389 17.27 56,799,964 10.04
11.00%-11.99%.................... 1,571 11.36 27,900,749 4.93
12.00%-12.99%.................... 1,156 8.36 16,511,565 2.92
13.00%-13.99%.................... 771 5.57 8,759,001 1.55
14.00%-14.99%.................... 415 3.00 4,292,556 0.76
15.00%-15.99%.................... 187 1.35 1,738,008 0.31
16.00%-16.99%.................... 92 0.66 869,606 0.15
17.00%-17.99%.................... 54 0.39 597,718 0.11
18.00%-18.99%.................... 29 0.21 372,290 0.07
19.00%-19.99%.................... 3 0.02 22,141 0.00
20.00%-20.99%.................... 6 0.04 31,665 0.01
21.00%-21.99%.................... 2 0.01 6,838 0.00
------ ------ ------------ ------
Total........................ 13,835 100.00%(1) $565,515,624 100.00%(1)
</TABLE>
- ------------
(1) May not equal 100% due to rounding.
<TABLE>
RANGE OF REMAINING MATURITIES
<CAPTION>
% OF CONTRACT % OF CONTRACT
NUMBER OF POOL BY NUMBER AGGREGATE PRINCIPAL POOL BY PRINCIPAL
RANGE OF REMAINING CONTRACTS AS OF OF CONTRACTS AS OF BALANCE OUTSTANDING BALANCE OUTSTANDING
MATURITY IN MONTHS CUT-OFF DATE CUT-OFF DATE AS OF CUT-OFF DATE AS OF CUT-OFF DATE
------------------ --------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C>
12-24 .............................. 78 0.56% $ 256,873 0.05%
25-36 .............................. 196 1.42 920,836 0.16
37-48 .............................. 257 1.86 1,807,825 0.32
49-60 .............................. 647 4.68 5,971,186 1.06
61-72 .............................. 251 1.81 2,356,992 0.42
73-84 .............................. 796 5.75 8,486,044 1.50
85-96 .............................. 500 3.61 5,371,647 0.95
97-108 ............................. 73 0.53 1,526,625 0.27
109-120............................. 2,237 16.17 41,279,616 7.30
121-132............................. 60 0.43 1,912,723 0.34
133-144............................. 2,844 20.56 61,772,105 10.92
145-156............................. 37 0.27 2,718,347 0.48
157-168............................. 103 0.74 6,925,346 1.22
169-180............................. 4,781 34.56 299,440,951 52.95
181-192............................. 9 0.07 672,527 0.12
193-204............................. 36 0.26 2,792,407 0.49
205-216............................. 7 0.05 657,687 0.12
217-228............................. 15 0.11 2,291,428 0.41
229-240............................. 908 6.56 118,354,459 20.93
------ ------ ------------ ------
Total........................... 13,835 100.00%(1) $565,515,624 100.00%(1)
</TABLE>
- ------------
(1) May not equal 100% due to rounding.
12
<PAGE>
MATURITY AND PREPAYMENT CONSIDERATIONS
Each Contract is prepayable at any time without any penalty. If prepayments
are received on the Contracts, the actual weighted average life of the Contracts
will be shorter than the scheduled weighted average life, which is based on the
assumption that payments will be made as scheduled and that no prepayments will
be made. For this purpose the term "prepayments" includes, among other items,
voluntary prepayments by Obligors, regular installment payments made in advance
of their scheduled due dates, liquidations due to default, proceeds from
physical damage, credit life and credit disability insurance policies, if any,
and purchases by CITSF or the Servicer of certain Contracts as described herein.
Weighted average life means the average amount of time during which each dollar
of principal on a Contract is outstanding. The rate of prepayments on the
Contracts may be influenced by a variety of economic, social and other factors.
Any reinvestment risk resulting from the rate of prepayment of the Contracts and
the distribution of such prepayments to securityholders will be borne entirely
by the securityholders. In addition, early retirement of the securities may be
effected by (1) the exercise of the option of CITSF to purchase all of the
Contracts remaining in the Trust when the aggregate principal balance of the
Contracts is 10% or less of the Initial Pool Balance, (2) the sale by the
Indenture Trustee (or, if the notes have been paid in full and the Indenture has
been discharged in accordance with its terms, the Owner Trustee) of all of the
Contracts remaining in the Trust when the Pool Balance is 5% or less of the
Initial Pool Balance or (3) an Event of Default and acceleration of the notes.
The rate of principal payments (including prepayments) on pools of
recreation vehicle retail installment sale contracts and direct loans may be
influenced by a variety of economic, geographic, social and other factors. In
general, if prevailing interest rates were to fall significantly below the
Contract Rates on the Contracts, the Contracts could be subject to higher
prepayment rates than if prevailing interest rates were to remain at or above
the Contract Rates on the Contracts. Conversely, if prevailing interest rates
were to rise significantly, the rate of prepayments on the Contracts would
generally be expected to decrease. No assurance can be given as to the influence
of these factors on the actual prepayment experience of the Contracts.
CITSF is not aware of any publicly available industry statistics that set
forth principal prepayment experience for recreation vehicle retail installment
sale contracts and direct loans similar to the Contracts over an extended period
of time, and its experience with respect to recreation vehicle receivables
included in its portfolio is insufficient to draw any specific conclusions with
respect to the expected prepayment rates on the Contracts.
CERTAIN PAYMENT DATA
Certain statistical information relating to the payment behavior of
recreation vehicle retail installment sale contracts and direct loans originated
by CITSF directly or through Dealers is set forth below. In evaluating the
information contained in this table and its relationship to the expected
prepayment behavior of the Contracts, you should consider that the information
set forth below reflects, with respect to contracts originated in a given year,
all principal payments made in respect of such contracts in a given year,
including regularly scheduled payments, liquidation or insurance proceeds
applied to principal of such contracts, as well as principal prepayments made by
or on behalf of the obligors on the contracts in advance of the date on which
such principal payment was scheduled to be made. The information set forth below
also reflects charge-offs of the contracts during a given year. In addition, the
Company has not performed any statistical analysis to determine whether the
contracts to which the table relates constitute a statistically significant
sample of recreation vehicle retail installment sale contracts and direct loans
for purposes of determining expected payment behavior. Payment rates on the
contracts are influenced by a number of economic, social and other factors.
Certain of the contracts included in the table below were originated with
underwriting criteria that differ from the underwriting criteria under which the
Contracts were originated. Furthermore, no assurance can be given that the
prepayment experience of the Contracts will exhibit payment behavior similar to
the behavior summarized in the following table. In addition to the foregoing,
prospective securityholders should consider that the table set forth below is
limited to the period covered therein and thus cannot reflect the effects, if
any, of aging on the payment behavior of recreation vehicle retail installment
sale contracts and direct loans beyond such periods. As a result, investors
should not draw any conclusions regarding the prepayment
13
<PAGE>
rate of the Contracts from the information presented in the table below. Each
investor must make its own assumptions regarding the prepayment rate of the
Contracts.
The following table sets forth, with respect to all of the recreation
vehicle retail installment sale contracts and direct loans originated by CITSF
directly or through Dealers (excluding contracts purchased in bulk) in each year
since 1993, the aggregate initial principal balance of the contracts originated
in such year, the approximate aggregate principal balance outstanding on the
contracts originated in such year as of the last day of such year and the
approximate aggregate principal balance outstanding on the contracts originated
in such year as of the end of each subsequent year.
<TABLE>
INFORMATION REGARDING PRINCIPAL REDUCTION ON RECREATION VEHICLE RETAIL
INSTALLMENT SALE CONTRACTS AND DIRECT LOANS ORIGINATED BY CITSF
(DOLLARS IN MILLIONS)
<CAPTION>
YEAR OF ORIGINATION
------------------------------------------------------
1993 1994 1995 1996 1997 1998
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Approximate Volume (1)(2) ................. $405.9 $294.5 $417.3 $452.7 $672.1 $792.6
Approximate Aggregate Principal
Balance(3):
December 31, 1993 ......................... 354.4
December 31, 1994 ......................... 274.0 260.7
December 31, 1995 ......................... 213.2 208.2 371.9
December 31, 1996 ......................... 162.3 156.8 271.9 406.1
December 31, 1997 ......................... 120.1 118.6 194.2 306.3 609.7
December 31, 1998 ......................... 87.8 87.1 137.7 221.5 449.1 711.4
</TABLE>
- ----------
(1) Volume represents aggregate initial principal balance of each contract
originated in a particular year.
(2) Includes contracts sold by CITSF in previous securitizations which CITSF is
servicing.
(3) Approximate aggregate principal balance as of any date represents the
approximate aggregate principal balance outstanding at the end of the
indicated year on each contract originated in a particular year.
PAID-AHEAD SIMPLE INTEREST CONTRACTS
If an Obligor, in addition to making his regularly scheduled payment, makes
one or more additional scheduled payments in any Due Period (for example,
because the Obligor intends to be on vacation the following month), the
additional scheduled payments made in such Due Period will be treated as a
principal prepayment and applied to reduce the principal balance of the related
Contract in such Due Period and, unless otherwise requested by the Obligor, the
Obligor will not be required to make any scheduled payment in respect of such
Contract (a "Paid-Ahead Simple Interest Contract") for the number of due dates
corresponding to the number of such additional scheduled payments (the
"Paid-Ahead Period"). During the Paid-Ahead Period, interest will continue to
accrue on the principal balance of the Contract, as reduced by the application
of the additional scheduled payments made in the Due Period in which such
Contract became a Paid-Ahead Simple Interest Contract. The Obligor's Contract
would not be considered delinquent during the Paid-Ahead Period. A Payment
Shortfall with respect to such Contract will exist during each Due Period
occurring during the Paid-Ahead Period and the Servicer may be required to make
a Monthly Advance in respect of such Payment Shortfall; however, no Monthly
Advances will be made in respect of principal in respect of a Paid-Ahead Simple
Interest Contract.
When the Obligor resumes his required payments following the Paid-Ahead
Period, the payments so paid may be insufficient to cover the interest that has
accrued since the last payment by the Obligor. Notwithstanding such
insufficiency, the Obligor's Contract would be considered current. This
situation will continue until the regularly scheduled payments are once again
sufficient to cover all accrued interest and to reduce the principal balance of
the Contract. Depending on the principal balance and Contract Rate of the
related Contract, and on the number of payments that were paid-ahead, there may
be extended periods of time during which Contracts that are current are not
amortizing. During such periods, no distributions in respect of principal will
be made to the securityholders with respect to such Contracts.
14
<PAGE>
Paid-Ahead Simple Interest Contracts will affect the weighted average life
of the securities. The distribution of the paid-ahead amount on the Distribution
Date following the Due Period in which such amount was received will generally
shorten the weighted average life of the securities. However, depending on the
length of time during which a Paid-Ahead Simple Interest Contract is not
amortizing as described above, the weighted average life of the securities may
be extended. In addition, to the extent the Servicer makes Monthly Advances with
respect to a Paid-Ahead Simple Interest Contract which subsequently goes into
default, because Liquidation Proceeds with respect to such Contract will be
applied first to reimburse the Servicer for such Monthly Advances, the loss with
respect to such Contract may be larger than would have been the case had such
Monthly Advances not been made.
As of the Cut-off Date, approximately 12.45% of the number of Contracts in
the Contract Pool were Paid-Ahead Simple Interest Contracts, with at least one
paid-ahead scheduled monthly payment. CITSF's portfolio of recreation vehicle
retail installment sale contracts and direct loans has historically included
contracts which have been paid-ahead by one or more scheduled monthly payments.
There can be no assurance as to the number of Contracts which may become
Paid-Ahead Simple Interest Contracts or the number or the principal amount of
the scheduled payments which may be paid-ahead.
WEIGHTED AVERAGE LIFE OF THE SECURITIES
Prepayments on recreation vehicle retail installment sale contracts and
direct loans can be measured relative to a prepayment standard or model. The
model used in this Prospectus Supplement, the Absolute Prepayment Model ("ABS"),
represents an assumed rate of prepayment each month relative to the original
number of contracts in a pool of contracts. ABS further assumes that all the
Contracts are the same size and amortize at the same rate and that each Contract
in each month of its life will either be paid as scheduled or be prepaid in
full. For example, in a pool of contracts originally containing 10,000
contracts, a 1.0% ABS rate means that 100 contracts prepay each month. ABS does
not purport to be a historical description of prepayment experience or a
prediction of the anticipated rate of prepayment of any pool of contracts
including the Contracts.
As the rate of payments of principal of the notes and in respect of the
Certificate Balance will depend on the rate of payment (including prepayments)
of the principal balance of the Contracts and the rate at which Contracts become
Liquidated Contracts, final payment of each class of the notes could occur
significantly earlier than their respective Note Final Scheduled Distribution
Dates. The final distribution in respect of the certificates also could occur
prior to the Certificate Final Scheduled Distribution Date. Reinvestment risk
associated with early payment of the securities will be borne exclusively by the
securityholders.
The tables captioned "Percent of Initial Note Principal Balance at Various
ABS Percentages" and "Percent of Original Certificate Balance at Various ABS
Percentages" (the "ABS Table") have been prepared on the basis of certain
characteristics of the Contracts. The ABS Table was prepared assuming that (1)
the Contracts prepay in full at the specified constant percentage of ABS
monthly, with no defaults, losses or repurchases, (2) each scheduled monthly
payment on the Contracts is made on the last day of each month and each Contract
accrues to 30 days each month, (3) payments on the notes and distributions on
the certificates are made on each Distribution Date (and each such date is
assumed to be the fifteenth day of each applicable month), (4) the Closing Date
occurs on May 19, 1999 and (5) CITSF exercises its option to purchase the
Contracts as specified under "The Purchase Agreements and The Trust
Documents--Termination" herein and in the Prospectus. The ABS Table indicates
the projected weighted average life of each class of the notes and the
certificates and sets forth the percent of the initial principal amount of each
class of the notes and the percent of the Original Certificate Balance that is
projected to be outstanding after each of the Distribution Dates shown at
various constant ABS percentages.
The ABS Table also assumes that the Contracts have been aggregated into
four hypothetical pools with all of the Contracts within each such pool having
the following characteristics and that the level scheduled monthly payment for
each of the pools (which is based on its aggregate principal balance, weighted
average APR, weighted average original term to maturity and weighted average
remaining term to maturity as of the Cut-off Date) will be such that each pool
will be fully amortized by the end of its remaining term to maturity.
15
<PAGE>
<TABLE>
<CAPTION>
WEIGHTED AVERAGE
AGGREGATE WEIGHTED AVERAGE ORIGINAL TERM WEIGHTED AVERAGE
PRINCIPAL BALANCE CONTRACT RATE TO MATURITY (MONTHS) SEASONING (MONTHS)
----------------- ---------------- -------------------- -----------------
<S> <C> <C> <C> <C>
Pool 1 ........ $67,977,643.41 11.12% 103 6
Pool 2 ........ $63,684,828.33 10.41% 144 5
Pool 3 ........ $309,084,644.05 9.04% 180 6
Pool 4 ........ $124,768,508.19 8.40% 239 5
</TABLE>
The information included in the following tables may constitute
forward-looking statements within the meaning of Section 7A of the Securities
Act of 1933, as amended, and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Contracts to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The actual characteristics and performance of the
Contracts will differ from the assumptions used in constructing the ABS Table.
The assumptions used are hypothetical and have been provided only to give a
general sense of how the principal cash flows might behave under varying
prepayment scenarios. For example, it is very unlikely that the Contracts will
prepay at a constant level of ABS until maturity or that all of the Contracts
will prepay at the same level of ABS. Moreover, the diverse terms of Contracts
within each of the hypothetical pools could produce slower or faster principal
distributions than indicated in the ABS Table at the various constant
percentages of ABS specified, even if the original and remaining terms to
maturity of the Contracts are as assumed. Any difference between such
assumptions and actual characteristics and performance of the Contracts or
actual prepayment experience will affect the percentages of initial balances
outstanding over time and weighted average lives of the notes and the
certificates.
<TABLE>
PERCENT OF INITIAL NOTE PRINCIPAL BALANCE AT VARIOUS ABS PERCENTAGES (1)
CLASS A-1 NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 83% 65% 47% 39% 31% 23% 14% 6%
5/15/01 70% 37% 1% 0% 0% 0% 0% 0%
5/15/02 56% 8% 0% 0% 0% 0% 0% 0%
5/15/03 41% 0% 0% 0% 0% 0% 0% 0%
5/15/04 24% 0% 0% 0% 0% 0% 0% 0%
5/15/05 5% 0% 0% 0% 0% 0% 0% 0%
5/15/06 0% 0% 0% 0% 0% 0% 0% 0%
5/15/07 0% 0% 0% 0% 0% 0% 0% 0%
5/15/08 0% 0% 0% 0% 0% 0% 0% 0%
5/15/09 0% 0% 0% 0% 0% 0% 0% 0%
5/15/10 0% 0% 0% 0% 0% 0% 0% 0%
5/15/11 0% 0% 0% 0% 0% 0% 0% 0%
5/15/12 0% 0% 0% 0% 0% 0% 0% 0%
5/15/13 0% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
--------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 3.3 1.6 1.0 0.9 0.7 0.7 0.6 0.5
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
CLASS A-2 NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 74% 46% 18% 0% 0%
5/15/02 100% 100% 22% 0% 0% 0% 0% 0%
5/15/03 100% 65% 0% 0% 0% 0% 0% 0%
5/15/04 100% 16% 0% 0% 0% 0% 0% 0%
5/15/05 100% 0% 0% 0% 0% 0% 0% 0%
5/15/06 72% 0% 0% 0% 0% 0% 0% 0%
5/15/07 30% 0% 0% 0% 0% 0% 0% 0%
5/15/08 0% 0% 0% 0% 0% 0% 0% 0%
5/15/09 0% 0% 0% 0% 0% 0% 0% 0%
5/15/10 0% 0% 0% 0% 0% 0% 0% 0%
5/15/11 0% 0% 0% 0% 0% 0% 0% 0%
5/15/12 0% 0% 0% 0% 0% 0% 0% 0%
5/15/13 0% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 7.6 4.3 2.7 2.3 2.0 1.8 1.6 1.4
</TABLE>
<TABLE>
<CAPTION>
CLASS A-3 NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 100% 89% 61%
5/15/02 100% 100% 100% 84% 47% 8% 0% 0%
5/15/03 100% 100% 51% 5% 0% 0% 0% 0%
5/15/04 100% 100% 0% 0% 0% 0% 0% 0%
5/15/05 100% 70% 0% 0% 0% 0% 0% 0%
5/15/06 100% 28% 0% 0% 0% 0% 0% 0%
5/15/07 100% 0% 0% 0% 0% 0% 0% 0%
5/15/08 97% 0% 0% 0% 0% 0% 0% 0%
5/15/09 62% 0% 0% 0% 0% 0% 0% 0%
5/15/10 25% 0% 0% 0% 0% 0% 0% 0%
5/15/11 0% 0% 0% 0% 0% 0% 0% 0%
5/15/12 0% 0% 0% 0% 0% 0% 0% 0%
5/15/13 0% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
--------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 10.3 6.5 4.1 3.5 3.0 2.6 2.3 2.1
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
CLASS A-4 NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 100% 100% 100%
5/15/02 100% 100% 100% 100% 100% 100% 60% 9%
5/15/03 100% 100% 100% 100% 46% 0% 0% 0%
5/15/04 100% 100% 83% 15% 0% 0% 0% 0%
5/15/05 100% 100% 10% 0% 0% 0% 0% 0%
5/15/06 100% 100% 0% 0% 0% 0% 0% 0%
5/15/07 100% 85% 0% 0% 0% 0% 0% 0%
5/15/08 100% 44% 0% 0% 0% 0% 0% 0%
5/15/09 100% 8% 0% 0% 0% 0% 0% 0%
5/15/10 100% 0% 0% 0% 0% 0% 0% 0%
5/15/11 84% 0% 0% 0% 0% 0% 0% 0%
5/15/12 39% 0% 0% 0% 0% 0% 0% 0%
5/15/13 0% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
---------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 12.8 8.9 5.5 4.6 4.0 3.5 3.1 2.8
</TABLE>
<TABLE>
<CAPTION>
CLASS A-5 NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 100% 100% 100%
5/15/02 100% 100% 100% 100% 100% 100% 100% 100%
5/15/03 100% 100% 100% 100% 100% 71% 0% 0%
5/15/04 100% 100% 100% 100% 0% 0% 0% 0%
5/15/05 100% 100% 100% 0% 0% 0% 0% 0%
5/15/06 100% 100% 0% 0% 0% 0% 0% 0%
5/15/07 100% 100% 0% 0% 0% 0% 0% 0%
5/15/08 100% 100% 0% 0% 0% 0% 0% 0%
5/15/09 100% 100% 0% 0% 0% 0% 0% 0%
5/15/10 100% 53% 0% 0% 0% 0% 0% 0%
5/15/11 100% 0% 0% 0% 0% 0% 0% 0%
5/15/12 100% 0% 0% 0% 0% 0% 0% 0%
5/15/13 79% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
---------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 14.3 11.0 6.5 5.5 4.7 4.1 3.6 3.2
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
CLASS B NOTES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 100% 100% 100%
5/15/02 100% 100% 100% 100% 100% 100% 100% 100%
5/15/03 100% 100% 100% 100% 100% 100% 0% 0%
5/15/04 100% 100% 100% 100% 0% 0% 0% 0%
5/15/05 100% 100% 100% 0% 0% 0% 0% 0%
5/15/06 100% 100% 0% 0% 0% 0% 0% 0%
5/15/07 100% 100% 0% 0% 0% 0% 0% 0%
5/15/08 100% 100% 0% 0% 0% 0% 0% 0%
5/15/09 100% 100% 0% 0% 0% 0% 0% 0%
5/15/10 100% 100% 0% 0% 0% 0% 0% 0%
5/15/11 100% 0% 0% 0% 0% 0% 0% 0%
5/15/12 100% 0% 0% 0% 0% 0% 0% 0%
5/15/13 100% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
---------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 14.5 11.3 6.7 5.6 4.8 4.2 3.7 3.3
</TABLE>
(1) Assumes the exercise by CITSF of its option to purchase all of the
Contracts on the Distribution Date on which the Pool Balance as of the last
day of the related Due Period is 10% or less of the Initial Pool Balance.
(2) The weighted average life of a note is determined by (a) multiplying the
amount of each principal payment of the note by the number of years from
the date of the issuance of the note to the related Distribution Date, (b)
adding the results and (c) dividing the sum by the related initial
principal amount of the note.
THE COMPANY PREPARED THE FOREGOING TABLES BASED ON THE ASSUMPTIONS
DESCRIBED ABOVE (INCLUDING THE ASSUMPTIONS REGARDING THE CHARACTERISTICS AND
PERFORMANCE OF THE CONTRACTS WHICH WILL DIFFER FROM THE ACTUAL CHARACTERISTICS
AND PERFORMANCE). REMEMBER THESE ASSUMPTIONS WHEN YOU REVIEW THESE TABLES.
19
<PAGE>
<TABLE>
<CAPTION>
PERCENT OF ORIGINAL CERTIFICATE BALANCE AT VARIOUS ABS PERCENTAGES(1)
CERTIFICATES
Distribution Date 0.0% 0.5% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Initial Percentage 100% 100% 100% 100% 100% 100% 100% 100%
5/15/00 100% 100% 100% 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 100% 100% 100%
5/15/02 100% 100% 100% 100% 100% 100% 100% 100%
5/15/03 100% 100% 100% 100% 100% 100% 0% 0%
5/15/04 100% 100% 100% 100% 0% 0% 0% 0%
5/15/05 100% 100% 100% 0% 0% 0% 0% 0%
5/15/06 100% 100% 0% 0% 0% 0% 0% 0%
5/15/07 100% 100% 0% 0% 0% 0% 0% 0%
5/15/08 100% 100% 0% 0% 0% 0% 0% 0%
5/15/09 100% 100% 0% 0% 0% 0% 0% 0%
5/15/10 100% 100% 0% 0% 0% 0% 0% 0%
5/15/11 100% 0% 0% 0% 0% 0% 0% 0%
5/15/12 100% 0% 0% 0% 0% 0% 0% 0%
5/15/13 100% 0% 0% 0% 0% 0% 0% 0%
5/15/14 0% 0% 0% 0% 0% 0% 0% 0%
--------------------------------------------------------------------------------------------
Weighted Average Life (years) (2) 14.5 11.3 6.7 5.6 4.8 4.2 3.7 3.3
</TABLE>
- ----------------
(1) Assumes the exercise by CITSF of its option to purchase all of the
Contracts on the Distribution Date on which the Pool Balance as of the last
day of the related Due Period is 10% or less of the Initial Pool Balance.
(2) The weighted average life of a certificate is determined by (a) multiplying
in the amount of each principal payment on the certificate by the number of
years from the date of the issuance of the certificate to the related
Distribution Date, (b) adding the results and (c) dividing the sum by the
related initial face amount of the certificate.
THE COMPANY PREPARED THE FOREGOING TABLE BASED ON THE ASSUMPTIONS DESCRIBED
ABOVE (INCLUDING THE ASSUMPTIONS REGARDING THE CHARACTERISTICS AND PERFORMANCE
OF THE CONTRACTS WHICH WILL DIFFER FROM THE ACTUAL CHARACTERISTICS AND
PERFORMANCE). REMEMBER THESE ASSUMPTIONS WHEN YOU REVIEW THIS TABLE.
YIELD AND PREPAYMENT CONSIDERATIONS
Thirty days of interest will be paid to the noteholders on each
Distribution Date (except the first Distribution Date) to the extent of the
remaining Available Amount and the remaining Available Reserve Amount, in an
amount equal to one-twelfth of the product of the applicable Interest Rate and
the outstanding principal balance of each class of the notes as of the preceding
Distribution Date (after giving effect to any distributions of principal to be
made on such Distribution Date). Thirty days of interest will be passed through
to certificateholders on each Distribution Date (except the first Distribution
Date) to the extent of the remaining Available Amount and the remaining
Available Reserve Amount, in an amount equal to one-twelfth of the product of
the Pass-Through Rate and the Certificate Balance immediately preceding such
Distribution Date. The "Certificate Balance" means the Original Certificate
Balance reduced by all distributions allocable to principal actually made to
certificateholders. Payment Shortfalls, to the extent not covered by Monthly
Advances and amounts on deposit in the Collection Account, will adversely affect
the yield on the securities.
If an Event of Default occurs and the notes are accelerated, payments of
interest on and principal of the Class B Notes will not be paid until the Class
A Notes have been paid in full.
Generally, the excess of the amount of interest at the Contract Rate over
the amount of interest payable under such Contract and allocable to pay such
Contract's share of interest on the securities and the Servicing Fee would be
available to reduce the amount, if any, by which the outstanding principal
amount of the securities exceeds
20
<PAGE>
the principal balance of the Contracts, to cover losses on Liquidated Contracts
or to fund the Reserve Account. The Trust will not receive a full month's
interest at the Contract Rate on any Contract which is prepaid in full or which
is subject to a Relief Act Reduction, nor will the Servicer make Monthly
Advances for any Payment Shortfall which results from a Relief Act Reduction or
a prepayment in full of a Contract. The Servicer will not make Non-Reimbursable
Payments. As a result, there will be less interest available to the Trust to pay
interest on the securities, to cover losses on the Liquidated Contracts and to
fund the Reserve Account.
THE CIT GROUP/SALES FINANCING, INC., SERVICER
GENERAL
As of December 31, 1998, CITSF serviced or subserviced for itself and
others approximately 285,000 contracts (consisting primarily of recreation
vehicle, home equity, recreational boat and manufactured housing contracts),
representing an outstanding balance of approximately $8.8 billion. Of this
portfolio, approximately 96,000 contracts (representing approximately $2.5
billion outstanding balance) consisted of recreation vehicle retail installment
sale contracts and direct loans. CITSF entered into agreements in 1996, 1997 and
1998 to service additional manufactured housing, recreation vehicle,
recreational boat and automobile finance contracts for third parties, which
increased substantially the total number of contracts serviced by CITSF.
SERVICING
The following table shows the composition of CITSF's servicing portfolio,
including recreation vehicle retail installment sale contracts and direct loans
serviced or subserviced by CITSF on the dates indicated:
<TABLE>
THE CIT GROUP/SALES FINANCING, INC.
CONTRACTS BEING SERVICED BY PRODUCT LINE
(DOLLAR AMOUNTS IN MILLIONS)
(NUMBER OF ACCOUNTS IN THOUSANDS)
<CAPTION>
AT DECEMBER 31,
-------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998
------------------ ------------------- ----------------- ----------------- -------------------
(NUMBER) (DOLLARS) (NUMBER) (DOLLARS) (NUMBER) (DOLLARS) (NUMBER) (DOLLARS) (NUMBER) (DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RV--Owned ................ 39.5 $ 847.1 30.0 $ 662.5 22.2 $ 477.4 19.5 $ 416.1 23.6 $ 673.1
RV--Bulk Purchases ....... 3.5 50.9 2.6 36.1 2.8 32.7 3.5 82.8 7.7 71.0
RV--Servicing(1) ......... 4.8 118.3 19.5 445.7 32.6 746.8 71.6 1,910.0 65.0 1,711.7
----- -------- ----- -------- ----- -------- ----- -------- ----- --------
Total RV ................. 47.8 1,016.3 52.1 1,144.3 57.6 1,256.9 94.6 2,408.9 96.3 2,455.8
Total MH ................. 39.6 878.2 69.3 1,368.5 96.0 1,748.4 89.3 1,836.5 81.2 1,936.9
Total RB ................. -- -- 6.0 156.9 13.3 328.1 35.7 948.9 42.4 1,226.5
Home Equity .............. 13.5 570.8 27.1 1,039.0 52.6 2,005.5 57.3 2,446.2 57.0 2,851.8
Other(2) ................. 1.3 74.8 0.1 2.1 0.1 3.1 5.1 121.6 8.5 315.2
----- -------- ----- -------- ----- -------- ----- -------- ----- --------
Total Contracts Serviced . 102.2 $2,540.1 154.6 $3,710.8 219.6 $5,342.0 282.0 $7,762.1 285.4 $8,786.2
</TABLE>
- --------
RV = Recreation Vehicle
MH = Manufactured Housing
RB = Recreational Boat
(1) Includes contracts sold by CITSF in previous securitizations which CITSF is
servicing. The 1997 and 1998 amounts also include a third party servicing
arrangement entered into in 1997.
(2) Includes inventory financing receivables.
DELINQUENCY AND LOAN LOSS EXPERIENCE
The following table sets forth the delinquency experience at December 31
for the years 1994 to 1998 of the portfolio of recreation vehicle retail
installment sale contracts and direct loans originated and serviced by CITSF,
excluding contracts acquired by CITSF through portfolio purchases, contracts in
repossession and contracts serviced by CITSF but not originated by CITSF.
Delinquency and loan loss experience for the serviced portfolio was obtained
from the monthly servicer reports for prior securitization trusts.
21
<PAGE>
DELINQUENCY EXPERIENCE
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
AT DECEMBER 31,
--------------------------------------------------------------
1994 1995 1996 1997 1998
------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Number of Contracts (1) (in thousands) ............. 44.3 49.5 54.8 64.6 68.7
Principal Balance of Contracts Serviced (1) ........ $965.4 $1,108.2 $1,224.2 $1,512.6 $1,816.0
Principal Balance of Delinquent Contracts (2):
30-59 Days ......................................... $ 5.0 $ 9.2 $ 14.9 $ 22.2 $ 18.1
60-89 Days ......................................... 2.0 3.1 4.3 8.6 7.4
90 Days or More .................................... 2.8 4.5 6.2 12.3 20.1
------ -------- -------- -------- --------
Total Principal Balance of Delinquent Contracts .... $ 9.8 $ 16.8 $ 25.4 $ 43.1 $ 45.6
Delinquencies as a Percent of Principal Balances (3) 1.01% 1.51% 2.08% 2.85% 2.51%
</TABLE>
- ---------
(1) Includes recreation vehicle retail installment contracts and direct loans
sold by CITSF in previous securitizations which CITSF is servicing.
(2) The period of delinquency is based on the number of days payments are
contractually past due (assuming 30-day months). Consequently, a contract
due on the first day of a month is not 30 days delinquent until the first
day of the next month. A Contract is deemed delinquent only if payments
exceeding $65 are contractually past due 30 days or more.
(3) Based on dollar percent delinquent calculated by dividing Total Principal
Balance of Delinquent Contracts by Principal Balance of Contracts Serviced.
The following table sets forth the loan loss experience for the five years
ended December 31, 1998 of the portfolio of recreation vehicle retail
installment sale contracts and direct loans originated and serviced by CITSF,
excluding contracts acquired by CITSF through portfolio purchases and contracts
serviced by CITSF but not originated by CITSF. "Net Losses" are equal to the
excess of (x) the aggregate principal balance of all defaulted Contracts that
the Servicer has liquidated, disposed of the related financed vehicle or deemed
all amounts due under such contract to be uncollectible during the period over
(y) any liquidation proceeds or recoveries received during the period. Net
Losses include outside collection, repossession and liquidation expenses.
LOAN LOSS/LIQUIDATION EXPERIENCE
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1994 1995 1996 1997 1998
------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Average Principal Balance of Contracts
Serviced(1),(2) .................. $990.3 $1,041.3 $1,166.3 $1,308.8 $1,663.1
Net Losses:
Dollars .............................. $ 4.9 $ 4.8 $ 9.9 $ 13.8 $ 14.3
Percentage(3) ........................ 0.49% 0.46% 0.85% 1.05% 0.86%
</TABLE>
- ---------
(1) Excludes contracts in repossession.
(2) Includes recreation vehicle retail installment sale contracts and direct
loans sold by CITSF in previous securitizations which CITSF is servicing.
(3) As a percentage of the Average Principal Balance of Contracts Serviced.
The data presented in the preceding tables are for illustrative purposes
only. Such data relate to the performance of CITSF's entire portfolio of
recreation vehicle retail installment sale contracts and direct loans originated
and serviced by CITSF and are not historical data regarding the Contracts alone,
since the Contracts constitute only a portion of CITSF's portfolio.
Additionally, the loss and delinquency experience presented in the preceding
tables with respect to recreation vehicle retail installment sale contracts and
direct loans securitized by CITSF prior to May 1996 is calculated using the
method required by the related transaction documents which differs from the
method used by CITSF to calculate losses and delinquencies on the remainder of
its owned or subsequently securitized contracts. The securitizations prior to
May 1996 require a contract to be reflected as a loss in the month it becomes
120 days delinquent, unless it is in repossession. The data presented in the
preceding tables
22
<PAGE>
reflect this calculation method for these securitizations. The loss data
presented in the preceding tables with respect to CITSF's remaining owned or
previously securitized contracts reflects CITSF's general practice of recording
a loss when all amounts CITSF expects to recover either by sale or disposition
of the related financed vehicle or otherwise have been received. As a result,
the data in the preceding tables with respect to contracts securitized prior to
May 1996 reflects higher losses and lower 90 day or more delinquencies than
would have been reported had these contracts not been securitized. The effect on
the data presented in the preceding tables resulting from the difference in the
timing of losses for contracts securitized prior to May 1996 will continue to
diminish (as evidenced by the higher 90 day or more delinquencies at December
31, 1998) as this portfolio continues to pay off.
As described in the prospectus, in August 1994, CITSF initiated an
underwriting program to provide for a broader range of credit scores with the
appropriate pricing intended to compensate for the risk associated with lending
to customers with lower credit scores. The continued runoff of contracts
originated prior to August 1994 and the seasoning of contracts originated under
the underwriting guidelines adopted in 1994 have contributed to the increased
loss and delinquency rates experienced during 1996 and 1997. In addition, the
delinquency and loss performance of the CITSF portfolio has been and will
continue to be influenced by overall economic and other trends including the
increasing propensity of consumers to fail to make timely payments on consumer
credit obligations and their increasing willingness to seek bankruptcy
protection. All of the Contracts were originated under the credit criteria
adopted by CITSF in August 1994. Accordingly, the data presented in the
preceding tables should not necessarily be considered as a basis for assessing
the likelihood, amount or severity of delinquencies or losses on the Contracts
and no assurance can be given that the delinquency and loan loss experience
presented in the preceding tables will be indicative of the experience on the
Contracts.
CITSF has not significantly changed its recreation vehicle underwriting
guidelines since 1994. However, starting in early 1997, marketing efforts have
been shifted toward higher credit quality obligors who tend to finance larger
ticket recreation vehicles. The originations in this target market have resulted
in decreased delinquencies on the overall portfolio as of December 31, 1998.
In August 1997, CITSF entered into an agreement to provide servicing for
approximately 42,000 additional recreation vehicle and recreational boat
contracts for another financial institution. CITSF is servicing these contracts
at its Asset Service Center, but these contracts are not included in the
preceding tables. The addition of these contracts to its servicing portfolio
required CITSF to increase staffing levels and reallocate the existing staff at
the Asset Service Center in order to service these contracts. The integration of
these accounts was a contributing factor to the increased delinquencies
experienced during 1997.
23
