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: November 7, 2000
(Date of earliest event reported)
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)
000-20615 22-3328188
001-01861 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)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
----------------------------------
(c) Exhibits.
The following are filed herewith as exhibits to Registration Statements
Nos. 333-64539 and 333-64539-01, which registration statements are incorporated
by reference in their entirety into Registration Statements Nos. 333-49276 and
333-49276-01. 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/ BARBARA CALLAHAN
-------------------------------
Name: Barbara Callahan
Title: Vice President
The CIT Group, Inc.
BY: /S/ BARBARA CALLAHAN
-------------------------------
Name: Barbara Callahan
Title: Vice President
Dated: November 7, 2000
<PAGE>
$489,698,000
(Approximate)
CIT RV TRUST 2000-A
The CIT Group Securitization Corporation II
Seller
The CIT Group/Sales Financing, Inc.
Servicer
Subject to Revision
Term Sheet Dated November 7, 2000
This Collateral and Structural Term Sheet (the "material"), is for your
private information and Chase Securities Inc. (the "Underwriter") is not
soliciting any action based upon it. This material is not to be construed as an
offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. This material
is based on information that the Underwriter considers reliable, but the
Underwriter does not represent that it is accurate or complete and it should not
be relied upon as such. By accepting this material the recipient agrees that it
will not distribute or provide the material to any other person. The information
contained in this material may pertain to securities that ultimately are not
sold. The information contained in this material may be based on assumptions
regarding market conditions and other matters as reflected herein. The
Underwriter makes no representation regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. The Underwriter and its affiliates, officers, directors,
partners and employees, including persons involved in the preparation or
issuance of this material may, from time to time, have long or short positions
in, and buy and sell, the securities mentioned therein or derivatives thereof
(including options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including all cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such registration
statement. Information contained in this material is current as of the date
appearing on this material only. Information in this material regarding any
assets backing any securities discussed herein supersedes all prior information
regarding such assets. Any information in the material, whether regarding the
assets backing any securities discussed herein or otherwise, will be superseded
by the information contained in any final prospectus for any securities actually
sold to you. The Underwriter is acting as underwriter and not acting as agent
for the issuer in connection with the proposed transaction.
Chase Securities Inc.
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
<PAGE>
$489,698,000
(Approximate)
CIT RV Trust 2000-A
The CIT Group Securitization Corporation II
Seller
The CIT Group/Sales Financing, Inc.
Servicer
SUBJECT TO REVISION
Term Sheet Dated November 7, 2000
This Collateral and Structural Term Sheet (the "material"), is for your
private information and Credit Suisse First Boston (the "Underwriter") is not
soliciting any action based upon it. This material is not to be construed as an
offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. This material
is based on information that the Underwriter considers reliable, but the
Underwriter does not represent that it is accurate or complete and it should not
be relied upon as such. By accepting this material the recipient agrees that it
will not distribute or provide the material to any other person. The information
contained in this material may pertain to securities that ultimately are not
sold. The information contained in this material may be based on assumptions
regarding market conditions and other matters as reflected herein. The
Underwriter makes no representation regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. The Underwriter and its affiliates, officers, directors,
partners and employees, including persons involved in the preparation or
issuance of this material may, from time to time, have long or short positions
in, and buy and sell, the securities mentioned therein or derivatives thereof
(including options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including all cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such registration
statement. Information contained in this material is current as of the date
appearing on this material only. Information in this material regarding any
assets backing any securities discussed herein supersedes all prior information
regarding such assets. Any information in the material, whether regarding the
assets backing any securities discussed herein or otherwise, will be superseded
by the information contained in any final prospectus for any securities actually
sold to you. The Underwriter is acting as underwriter and not acting as agent
for the issuer in connection with the proposed transaction.
Chase Securities Inc.
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
<PAGE>
$489,698,000
(Approximate)
CIT RV Trust 2000-A
The CIT Group Securitization Corporation II
Seller
The CIT Group/Sales Financing, Inc.
Servicer
Subject to Revision
Term Sheet Dated November 7, 2000
This Collateral and Structural Term Sheet (the "material"), is for your
private information and Deutsche Banc Alex. Brown (the "Underwriter") is not
soliciting any action based upon it. This material is not to be construed as an
offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. This material
is based on information that the Underwriter considers reliable, but the
Underwriter does not represent that it is accurate or complete and it should not
be relied upon as such. By accepting this material the recipient agrees that it
will not distribute or provide the material to any other person. The information
contained in this material may pertain to securities that ultimately are not
sold. The information contained in this material may be based on assumptions
regarding market conditions and other matters as reflected herein. The
Underwriter makes no representation regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. The Underwriter and its affiliates, officers, directors,
partners and employees, including persons involved in the preparation or
issuance of this material may, from time to time, have long or short positions
in, and buy and sell, the securities mentioned therein or derivatives thereof
(including options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including all cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such registration
statement. Information contained in this material is current as of the date
appearing on this material only. Information in this material regarding any
assets backing any securities discussed herein supersedes all prior information
regarding such assets. Any information in the material, whether regarding the
assets backing any securities discussed herein or otherwise, will be superseded
by the information contained in any final prospectus for any securities actually
sold to you. The Underwriter is acting as underwriter and not acting as agent
for the issuer in connection with the proposed transaction.
Chase Securities Inc.
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
<PAGE>
$489,698,000
(Approximate)
CIT RV Trust 2000-A
The CIT Group Securitization Corporation II
Seller
The CIT Group/Sales Financing, Inc.
Servicer
Subject to Revision
Term Sheet Dated November 7, 2000
This Collateral and Structural Term Sheet (the "material"), is for your
private information and Merrill Lynch & Co. (the "Underwriter") is not
soliciting any action based upon it. This material is not to be construed as an
offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. This material
is based on information that the Underwriter considers reliable, but the
Underwriter does not represent that it is accurate or complete and it should not
be relied upon as such. By accepting this material the recipient agrees that it
will not distribute or provide the material to any other person. The information
contained in this material may pertain to securities that ultimately are not
sold. The information contained in this material may be based on assumptions
regarding market conditions and other matters as reflected herein. The
Underwriter makes no representation regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. The Underwriter and its affiliates, officers, directors,
partners and employees, including persons involved in the preparation or
issuance of this material may, from time to time, have long or short positions
in, and buy and sell, the securities mentioned therein or derivatives thereof
(including options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including all cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such registration
statement. Information contained in this material is current as of the date
appearing on this material only. Information in this material regarding any
assets backing any securities discussed herein supersedes all prior information
regarding such assets. Any information in the material, whether regarding the
assets backing any securities discussed herein or otherwise, will be superseded
by the information contained in any final prospectus for any securities actually
sold to you. The Underwriter is acting as underwriter and not acting as agent
for the issuer in connection with the proposed transaction.
Chase Securities Inc.
Credit Suisse First Boston
Deutsche Banc Alex. Brown
Merrill Lynch & Co.
<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 2000-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 2000-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 of 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>
$489,698,000
(Approximate)
CIT RV Trust 2000-A
The CIT Group Securitization Corporation II
Seller
The CIT Group/Sales Financing, Inc.
Servicer
Subject to Revision
Term Sheet Dated November 7, 2000
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 Chase Securities
Inc., Syndicate Desk at (212) 834-4533.
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 2000-A will issue the following securities, offered to you pursuant
to the prospectus supplement and the prospectus:
o Class A-1 __% Asset-Backed Notes (the "Class A-1 Notes") in the aggregate
principal amount of $232,700,000;
o Class A-2 __% Asset-Backed Notes (the "Class A-2 Notes") in the aggregate
principal amount of $110,200,000;
o Class A-3 __% Asset-Backed Notes (the "Class A-3 Notes") in the aggregate
principal amount of $78,600,000;
o Class A-4 __% Asset-Backed Notes (the "Class A-4 Notes") in the aggregate
principal amount of $36,760,000;
o Class B __% Asset-Backed Notes (the "Class B Notes") in the aggregate
principal amount of $16,928,000;
o __% Asset-Backed Certificates in the aggregate face amount of $14,510,000.
The trust is offering each class of notes as book-entry securities clearing
through DTC (in the United States) and Clearstream or Euroclear (in Europe). The
trust is offering the certificates in fully registered, certificated form.
Closing Date
On or about November 16, 2000.
Cut-off Date
November 1, 2000.
Indenture Trustee
Allfirst Bank.
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 December 15, 2000 (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 fifteenth day of each month (or, in the case of the first
Distribution Date, from and including the Closing Date) to but excluding the
fifteenth day of the succeeding month.
On each Distribution Date the trust will distribute accrued interest to the
noteholders at the applicable Interest Rate on the outstanding principal balance
of 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:
o all interest due to the holders of Class A Notes on that Distribution Date
has been paid in full; and
o the First Priority Principal Allocation has been deposited in the Principal
Distribution Account.
The trust will not make interest payments to certificateholders on any
Distribution Date until:
o all interest due to the noteholders on that Distribution Date has been paid
in full; and
o the First Priority Principal Allocation and the Second Priority Principal
Allocation have been deposited in the Principal Distribution Account.
Principal Payments
On the Closing Date, the Company will establish an account (the "Principal
Distribution Account") for the benefit of the securityholders for payments of
principal due on the securities. 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. Principal of the notes will generally be paid on a sequential basis,
first, to the Class A Notes in the numerical order of their class designations,
second, to the Class B Notes and then to the certificates.
Each "Due Period" is the calendar month that ends prior to a Distribution Date.
The initial Due Period will be November 2000.
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;
4
<PAGE>
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 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.
On the Closing Date, the aggregate outstanding principal amount of the
securities will equal approximately 101.25% of the Initial Pool Balance. In
order to reduce this 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 Pool Balance as of the end of the
related Due Period equals or is less than 10% of the Initial 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.
After the Pool Balance as of the end of the related Due Period equals or is less
than 10% of the Initial Pool Balance, additional payments of principal will be
made from amounts, if any, released from the Reserve Account after repayment in
full of a loan that will be made to the Trust to initially fund the Reserve
Account.
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: September 15, 2009 (the "Class A-1 Note Final Scheduled
Distribution Date").
o Class A-2 Notes: December 15, 2012 (the "Class A-2 Note Final Scheduled
Distribution Date").
o Class A-3 Notes: March 15, 2015 (the "Class A-3 Note Final Scheduled
Distribution Date").
o Class A-4 Notes: October 15, 2017 (the "Class A-4 Note Final Scheduled
Distribution Date").
o Class B Notes: February 15, 2019 (the "Class B Note Final Scheduled
Distribution Date").
o Certificates: November 15, 2021 (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 securities 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
5
<PAGE>
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 equal to or 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.
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 Principal Distribution 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 $483,651,837. As of the Cut-off
Date, the Contracts had the following characteristics:
Range of Contract Rates 5.99% to 19.99%
Weighted Average Contract Rate 9.87%
Range of Original Principal Balances $2,460 to
$658,559
Average Original Principal Balance $41,367
Range of Remaining Principal $1,340 to
Balances $581,017
Average Remaining Principal Balance $40,100
Range of Original Terms to Maturity 18 to 243 months
Weighted Average Original Term to 184 months
Maturity
Range of Remaining Terms to Maturity 13 to 240 months
Weighted Average Remaining Term to 175 months
Maturity
Percentage of New/Used Recreation 73.7% / 26.3%
Vehicles by Pool Balance as of the
Cut-off Date
The obligors may generally prepay their Contracts at any time without premium or
penalty.
6
<PAGE>
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 $9,673,037.
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.
The Indenture Trustee will make distributions from the Reserve Account as
follows:
(1) For as long as the Pool Balance as of the end of the related Due Period is
greater than 10% of the Initial Pool Balance, the Indenture Trustee shall
distribute any excess in the Reserve Account over the Specified Reserve Amount,
in the following order of priority:
o to pay the outstanding principal amount of the Loan in full plus accrued and
unpaid interest on the Loan; and
o to the Affiliated Owner;
(2) If the Pool Balance as of the end of the related Due Period is equal to or
less than 10% of the Initial Pool Balance, the Indenture Trustee shall
distribute any excess in the Reserve Account over the Specified Reserve Amount
in the following order of priority:
o to pay the outstanding principal amount of the Loan in full plus accrued and
unpaid interest on the Loan;
o to the Principal Distribution Account for distribution to the noteholders
until the outstanding principal balance of the notes has been paid in full;
and
o to the Principal Distribution Account for distribution to the
certificateholders until the outstanding principal balance of the
certificates is equal to or less than the amount remaining in the Reserve
Account;
(3) If:
o the Pool Balance as of the end of the related Due Period is equal to or less
than 10% of the Initial Pool Balance;
o the Notes have been paid in full;
o the outstanding principal amount of the Loan and all accrued and unpaid
interest on the Loan have been paid in full; and
o the principal balance of the certificates is equal to or less than the
amount remaining in the Reserve Account;
then the Indenture Trustee shall distribute the amounts in the Reserve Account
to the certificates until the principal balance of the certificates has been
paid in full
The "Specified Reserve Amount" with respect to any Distribution Date is
generally equal to the greater of:
o the lesser of (a) $9,673,037 and (b) 2.5% of the principal amount of the
Contracts as of the first day of the related Due Period; and
o $6,045,648 (which is equal to 1.25% of the Initial Pool Balance).
7
<PAGE>
All amounts deposited in the Reserve Account after the principal balance of the
certificates has been paid in full will be distributed to the Affiliated Owner.
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 the First Priority Principal Allocation has
been deposited in the Principal Distribution Account; 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 interest owed on the notes through that Distribution Date has been
paid in full and the First Priority Principal Allocation and Second Priority
Principal Allocation have been deposited in the Principal Distribution
Account; 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 reduction of the rate of interest
payable on that Contract under the Soldiers and Sailors Civil Relief Act or
the Military Reservist Relief Act (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) (a) reimburse the Servicer for amounts then due for Monthly Advances made on
the Contracts, and (b) 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) deposit in the Principal Distribution Account an amount (the "First Priority
Principal Allocation"), if any, equal to the excess of (x) the aggregate
principal balance of the Class A Notes over (y) the Pool Balance as of the
end of the related Due Period;
8
<PAGE>
(4) pay interest on the Class B Notes;
(5) deposit in the Principal Distribution Account an amount (the "Second
Priority Principal Allocation"), if any, equal to the excess of (x) the
aggregate principal balance of the notes over(y) the Pool Balance as of the
end of the related Due Period. This amount will be reduced by any amount
deposited in the Principal Distribution Account in accordance with clause
(3) above;
(6) pay interest on the certificates;
(7) deposit in the Principal Distribution Account an amount, if any, equal to
the sum of (x) the decrease in the Pool Balance during the related Due
Period plus (y) amounts payable pursuant to this clause (7) on prior
Distribution Dates that have not been paid. This amount will be reduced by
any amounts deposited in the Principal Distribution Account in accordance
with clauses (3) and (5) above;
(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 one-twelfth of
1.0% of the average outstanding principal amount of the Loan;
(10) for so long as the Pool Balance as of the end of the related Due Period
exceeds 10% of the Initial Pool Balance, deposit any remaining funds
available to the Principal Distribution Account for the payment of principal
on the securities until the outstanding principal amount of the securities
is less than or equal to the Pool Balance as of the end of the related Due
Period; and
(11) deposit Excess Collections, if any, into the Reserve Account.
PRIORITY OF PRINCIPAL DISTRIBUTIONS
The Indenture Trustee will pay amounts deposited in the Principal Distribution
Account 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 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.
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," in the
prospectus supplement, the notes are eligible for purchase by employee benefit
plans. The United States Department of Labor has issued an individual
administrative exemption, Prohibited Transaction Exemption ("PTE") 90-31, as
amended (the
9
<PAGE>
"Exemption"), to Chase Securities, which generally exempts from the application
of the prohibited transaction provisions of Section 406 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), and the excise
taxes imposed on such prohibited transactions pursuant to Section 4975(a) and
(b) of the Code and Section 502(i) of ERISA, certain transactions relating to
the initial purchase, the holding, and the subsequent resale by employee benefit
plans subject to ERISA of securities underwritten by the underwriter. The
Company believes that the Exemption will apply to the acquisition and holding of
notes sold by the underwriters to employee benefit plans and that all conditions
of the Exemption other than those within the control of the investors have been
met.
The Company expects the Exemption to be further amended in a manner that would
permit the Exemption to apply to the acquisition and holding of certificates
sold by the underwriters provided that the conditions of the Exemption within
the control of the investors have been met. If the proposed amendment to the
Exemption is published in the Federal Register in its proposed form prior to the
date of issuance of the notes and certificates, the notes and certificates will
be eligible for purchase by employee benefit plans. If the proposed amendment to
the Exemption is published in the Federal Register after the date of issuance of
the notes and certificates, the notes will be eligible to be purchased by
employee benefit plans provided that the purchaser represents that its purchase
of the notes will not result in a non-exempt prohibited transaction under ERISA
and the Code, and the certificates will be eligible to be purchased by employee
benefit plans only in secondary market transfers. Before making an investment in
the notes or certificates, employee benefit plans should review the discussion
under "ERISA Considerations" in the prospectus supplement.
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
S&P MOODY'S
--- -------
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.
10
<PAGE>
THE CONTRACT POOL
Characteristics of Contracts
The Contract Pool consists of Contracts having an aggregate unpaid principal
balance as of the Cut-off Date of approximately $483,651,837. 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 5.99%;
(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 243 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 $590,000; and
(8) as of the Cut-off Date, none of the Paid Ahead Simple Interest Contracts
in the Contract Pool were paid ahead more than twelve monthly scheduled
payments.
As of the Cut-off Date, the Contract Pool had the following characteristics:
Range of Contract Rates 5.99% to 19.99%
Weighted average Contract Rate 9.87%
Range of original principal balances $2,460 to $658,559
Average original principal balance $41,367
Range of remaining principal balances $1,340 to $581,017
Average remaining principal balance $40,100
Range of original terms to maturity 18 months to 243 months
Weighted average original term to maturity 184 months
Range of remaining terms to maturity 13 to 240 months
Weighted average remaining term to maturity 175 months
Percentage of new/used Recreation 73.7%/26.3%
Vehicles at time of origination
(by principal balance)
11
<PAGE>
Allocation by Collateral Type (by outstanding principal balance):
<TABLE>
<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
COLLATERAL TYPE CUT-OFF DATE CUT-OFF DATE AS OF CUT-OFF DATE AS OF CUT-OFF DATE
--------------- ------------ ------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Motor Homes 5,538 45.92% $366,365,997.23 75.75%
Fifth Wheels 2,365 19.61 57,719,147.36 11.93
Travel Trailers 3,297 27.34 45,508,757.47 9.41
Horse Trailers 480 3.98 10,053,417.82 2.08
OTHER 381 3.16 4,004,516.96 0.83
------ ------ --------------- ------
Total: 12,061 100.00%(1) $483,651,836.84 100.00%(1)
</TABLE>
------------
(1) May not equal 100% due to rounding.
12
<PAGE>
Set forth below is a description of certain characteristics of the
Contracts.
GEOGRAPHICAL DISTRIBUTION OF CONTRACTS (1)
<TABLE>
<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........................ 236 1.96% $10,151,446.23 2.10%
Alaska......................... 23 0.19 1,224,800.61 0.25
Arizona........................ 339 2.81 13,398,472.03 2.77
Arkansas....................... 253 2.10 9,170,964.31 1.90
California..................... 2,359 19.56 89,463,104.64 18.50
Colorado....................... 256 2.12 9,864,569.91 2.04
Connecticut.................... 71 0.59 2,773,320.02 0.57
Delaware....................... 24 0.20 1,159,535.19 0.24
District of Columbia........... 4 0.03 180,918.59 0.04
Florida........................ 951 7.88 42,524,248.92 8.79
Georgia........................ 440 3.65 16,729,283.06 3.46
Hawaii......................... 1 0.01 122,409.99 0.03
Idaho.......................... 42 0.35 2,098,943.56 0.43
Illinois....................... 259 2.15 12,028,876.98 2.49
Indiana........................ 104 0.86 4,857,518.05 1.00
Iowa........................... 32 0.27 1,382,909.90 0.29
Kansas......................... 200 1.66 6,995,183.24 1.45
Kentucky....................... 65 0.54 2,505,296.82 0.52
Louisiana...................... 286 2.37 10,429,792.28 2.16
Maine.......................... 31 0.26 1,373,964.29 0.28
Maryland....................... 186 1.54 6,321,996.61 1.31
Massachusetts.................. 155 1.29 4,821,652.09 1.00
Michigan....................... 55 0.46 3,902,438.55 0.81
Minnesota...................... 138 1.14 5,628,566.34 1.16
Mississippi.................... 221 1.83 7,623,335.94 1.58
Missouri....................... 444 3.68 15,407,701.50 3.19
Montana........................ 34 0.28 1,797,476.81 0.37
Nebraska....................... 27 0.22 627,505.52 0.13
Nevada......................... 258 2.14 9,426,743.79 1.95
New Hampshire.................. 85 0.70 3,149,892.15 0.65
New Jersey..................... 162 1.34 5,890,953.00 1.22
New Mexico..................... 90 0.75 3,888,005.28 0.80
New York....................... 294 2.44 13,994,765.53 2.89
North Carolina................. 286 2.37 9,838,601.25 2.03
North Dakota................... 8 0.07 272,091.60 0.06
Ohio........................... 85 0.70 5,870,120.46 1.21
Oklahoma....................... 324 2.69 11,836,596.16 2.45
Oregon......................... 354 2.94 14,085,487.14 2.91
Pennsylvania................... 161 1.33 8,150,331.08 1.69
Rhode Island................... 25 0.21 986,552.43 0.20
South Carolina................. 99 0.82 3,970,591.83 0.82
South Dakota................... 17 0.14 1,189,332.85 0.25
Tennessee...................... 205 1.70 8,361,939.82 1.73
Texas.......................... 1,790 14.84 74,039,436.79 15.31
Utah........................... 29 0.24 1,368,771.36 0.28
Vermont........................ 24 0.20 707,010.51 0.15
Virginia....................... 101 0.84 3,992,918.44 0.83
Washington..................... 313 2.60 13,105,820.14 2.71
West Virginia.................. 41 0.34 1,400,872.36 0.29
Wisconsin...................... 56 0.46 2,525,562.27 0.52
WYOMING........................ 18 0.15 1,033,208.62 0.21
------ ------ --------------- ------
Total:...................... 12,061 100.00%(2) $483,651,836.84 100.00%(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.
13
<PAGE>
RANGE OF CONTRACT RATES
<TABLE>
<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>
5.99% to 6.99%............... 36 0.30% $3,683,159.73 0.76%
7.00% to 7.99%............... 280 2.32 32,201,098.36 6.66
8.00% to 8.99%............... 1,035 8.58 95,924,101.81 19.83
9.00% to 9.99%............... 3,622 30.03 186,224,855.76 38.50
10.00% to 10.99%............. 3,475 28.81 94,912,748.31 19.62
11.00% to 11.99%............. 1,734 14.38 37,849,569.65 7.83
12.00% to 12.99%............. 960 7.96 19,146,161.14 3.96
13.00% to 13.99%............. 581 4.82 9,337,592.10 1.93
14.00% to 14.99%............. 215 1.78 2,880,229.69 0.60
15.00% to 15.99%............. 74 0.61 874,075.78 0.18
16.00% to 16.99%............. 24 0.20 265,007.97 0.05
17.00% TO 19.99%............. 25 0.21 353,236.54 0.07
------ ------ --------------- ------
Total:.................... 12,061 100.00%(1) $483,651,836.84 100.00%(1)
</TABLE>
------------
(1) May not equal 100% due to rounding.
RANGE OF REMAINING MATURITIES
<TABLE>
<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>
13 to 49.................... 367 3.04% $3,344,168.35 0.69%
50 to 59.................... 293 2.43 3,762,317.84 0.78
60 to 69.................... 141 1.17 1,778,910.10 0.37
70 to 79.................... 212 1.76 2,242,827.75 0.46
80 to 89.................... 460 3.81 5,226,264.47 1.08
90 to 99.................... 381 3.16 5,536,417.97 1.14
100 to 109.................. 384 3.18 9,150,275.67 1.89
110 to 119.................. 1,266 10.50 22,169,361.99 4.58
120 to 129.................. 473 3.92 9,819,032.82 2.03
130 to 139.................. 915 7.59 17,795,212.17 3.68
140 to 149.................. 1,853 15.36 36,725,991.28 7.59
150 to 159.................. 109 0.90 9,653,818.94 2.00
160 to 169.................. 1,095 9.08 75,236,474.52 15.56
170 to 179.................. 2,584 21.42 127,226,345.77 25.31
180 to 189.................. 418 3.47 21,088,567.61 4.36
190 to 199.................. 13 0.11 1,093,038.42 0.23
200 to 209.................. 31 0.26 3,360,614.80 0.69
210 to 219.................. 62 0.51 7,801,107.97 1.61
220 to 229.................. 411 3.41 53,515,541.92 11.06
230 to 239.................. 518 4.29 59,468,622.69 12.30
240......................... 75 0.62 7,656,923.79 1.58
------ ------ --------------- ------
Total:................... 12,061 100.00%(1) $483,651,836.84 100.00%(1)
</TABLE>
------------
(1) May not equal 100% due to rounding.
14
<PAGE>
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 "Conditional Prepayment Rate"
("CPR"), represents an assumed annualized rate of prepayment relative to the
then outstanding balance on a pool of contracts. The CPR assumes that a fraction
of the outstanding Contract pool is prepaid on each Distribution Date, which
implies that each Contract in the Contract pool is equally likely to prepay.
This fraction, expressed as a percentage, is annualized to arrive at the CPR for
the Contract Pool. The CPR measures prepayments based on the outstanding
principal on the previous Distribution Date. The CPR 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. CPR 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
CPR Percentages" and "Percent of Original Certificate Balance at Various CPR
Percentages" (the "CPR Table") have been prepared on the basis of certain
characteristics of the Contracts. The CPR Table was prepared assuming that (1)
no defaults or delinquencies in the payment of principal or interest on the
Contracts are experienced, (2) no Contract is purchased by CITSF or the Servicer
for breach of any representation or warranty or otherwise, (3) each scheduled
monthly payment on the Contracts is made on the last day of each month
commencing in November 2000, and each Contract accrues to 30 days each month,
(4) 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), commencing December 15, 2000, (5) the Closing Date occurs on
November 16, 2000, (6) the interest rate of the Class A-1 Notes is 6.73%, the
interest rate of the Class A-2 Notes is 6.86%, the interest rate of the Class
A-3 Notes is 7.04%, the interest rate on the Class A-4 Notes is 7.25%, the
interest rate on the Class B Notes is 7.60% and the interest rate on the
Certificates is 8.28%, and (7) CITSF exercises its option to purchase the
Contracts as specified under "The Purchase Agreements and The Trust
Documents--Termination" in the Prospectus. The CPR 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 CPR
percentages.
The CPR Table also assumes that the Contracts have been aggregated into
five 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 CPR, 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.
<TABLE>
<CAPTION>
ORIGINAL TERM
AGGREGATE TO MATURITY WEIGHTED AVERAGE
PRINCIPAL BALANCE CONTRACT RATE (MONTHS) SEASONING (MONTHS)
----------------- ------------- -------- ------------------
<S> <C> <C> <C> <C>
Pool 1......................... $7,524,875.62 11.072% 57 8
Pool 2......................... $49,476,177.86 10.887% 117 12
Pool 3......................... $59,399,642.79 10.894% 145 7
Pool 4......................... $233,873,107.73 9.789% 180 8
Pool 5......................... $133,378,032.84 9.124% 239 10
</TABLE>
15
<PAGE>
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 CPR 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 CPR until maturity or that all of the Contracts
will prepay at the same level of CPR. Moreover, the diverse terms of Contracts
within each of the hypothetical pools could produce slower or faster principal
distributions than indicated in the CPR Table at the various constant
percentages of CPR 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.
16
<PAGE>
PERCENT OF INITIAL NOTE PRINCIPAL BALANCE AT VARIOUS CPR PERCENTAGES (1)
CLASS A-1 NOTES
<TABLE>
<CAPTION>
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 94 80 76 72 70 68 64 61
15-Nov-01 89 63 55 49 45 41 35 29
15-May-02 85 48 37 30 24 19 12 4
15-Nov-02 81 34 21 12 6 0 0 0
15-May-03 76 21 7 0 0 0 0 0
15-Nov-03 71 9 0 0 0 0 0 0
15-May-04 66 0 0 0 0 0 0 0
15-Nov-04 60 0 0 0 0 0 0 0
15-May-05 55 0 0 0 0 0 0 0
15-Nov-05 49 0 0 0 0 0 0 0
15-May-06 43 0 0 0 0 0 0 0
15-Nov-06 37 0 0 0 0 0 0 0
15-May-07 31 0 0 0 0 0 0 0
15-Nov-07 24 0 0 0 0 0 0 0
15-May-08 17 0 0 0 0 0 0 0
15-Nov-08 9 0 0 0 0 0 0 0
15-May-09 1 0 0 0 0 0 0 0
15-Nov-09 0 0 0 0 0 0 0 0
15-May-10 0 0 0 0 0 0 0 0
15-Nov-10 0 0 0 0 0 0 0 0
15-May-11 0 0 0 0 0 0 0 0
15-Nov-11 0 0 0 0 0 0 0 0
15-May-12 0 0 0 0 0 0 0 0
15-Nov-12 0 0 0 0 0 0 0 0
15-May-13 0 0 0 0 0 0 0 0
15-Nov-13 0 0 0 0 0 0 0 0
15-May-14 0 0 0 0 0 0 0 0
15-Nov-14 0 0 0 0 0 0 0 0
15-May-15 0 0 0 0 0 0 0 0
15-Nov-15 0 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years)(2) 4.73 1.56 1.26 1.09 1.00 0.92 0.83 0.74
Last Principal Date 15-Jun-09 15-Apr-04 15-Aug-03 15-Apr-03 15-Feb-03 15-Nov-02 15-Sep-02 15-Jul-02
First Principal Date 15-Dec-00 15-Dec-00 15-Dec-00 15-Dec-00 15-Dec-00 15-Dec-00 15-Dec-00 15-Dec-00
</TABLE>
17
<PAGE>
CLASS A-2 NOTES
<TABLE>
<CAPTION>
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 100 100 100 100 100 100 100 100
15-Nov-01 100 100 100 100 100 100 100 100
15-May-02 100 100 100 100 100 100 100 100
15-Nov-02 100 100 100 100 100 100 82 65
15-May-03 100 100 100 92 78 65 46 28
15-Nov-03 100 100 86 63 49 35 16 0
15-May-04 100 95 61 37 23 9 0 0
15-Nov-04 100 73 38 14 0 0 0 0
15-May-05 100 53 18 0 0 0 0 0
15-Nov-05 100 35 0 0 0 0 0 0
15-May-06 100 18 0 0 0 0 0 0
15-Nov-06 100 2 0 0 0 0 0 0
15-May-07 100 0 0 0 0 0 0 0
15-Nov-07 100 0 0 0 0 0 0 0
15-May-08 100 0 0 0 0 0 0 0
15-Nov-08 100 0 0 0 0 0 0 0
15-May-09 100 0 0 0 0 0 0 0
15-Nov-09 87 0 0 0 0 0 0 0
15-May-10 73 0 0 0 0 0 0 0
15-Nov-10 58 0 0 0 0 0 0 0
15-May-11 42 0 0 0 0 0 0 0
15-Nov-11 25 0 0 0 0 0 0 0
15-May-12 8 0 0 0 0 0 0 0
15-Nov-12 0 0 0 0 0 0 0 0
15-May-13 0 0 0 0 0 0 0 0
15-Nov-13 0 0 0 0 0 0 0 0
15-May-14 0 0 0 0 0 0 0 0
15-Nov-14 0 0 0 0 0 0 0 0
15-May-15 0 0 0 0 0 0 0 0
15-Nov-15 0 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years) (2) 10.25 4.67 3.81 3.32 3.05 2.82 2.51 2.26
Last Principal Date 15-Sep-12 15-Dec-06 15-Nov-05 15-Apr-05 15-Dec-04 15-Aug-04 15-Mar-04 15-Nov-03
First Principal Date 15-Jun-09 15-Apr-04 15-Aug-03 15-Apr-03 15-Feb-03 15-Nov-02 15-Sep-02 15-Jul-02
</TABLE>
18
<PAGE>
CLASS A-3 NOTES
<TABLE>
<CAPTION>
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 100 100 100 100 100 100 100 100
15-Nov-01 100 100 100 100 100 100 100 100
15-May-02 100 100 100 100 100 100 100 100
15-Nov-02 100 100 100 100 100 100 100 100
15-May-03 100 100 100 100 100 100 100 100
15-Nov-03 100 100 100 100 100 100 100 97
15-May-04 100 100 100 100 100 100 87 63
15-Nov-04 100 100 100 100 100 82 57 35
15-May-05 100 100 100 93 73 56 32 12
15-Nov-05 100 100 100 68 50 33 11 0
15-May-06 100 100 77 47 29 14 0 0
15-Nov-06 100 100 56 28 12 0 0 0
15-May-07 100 82 38 11 0 0 0 0
15-Nov-07 100 63 21 0 0 0 0 0
15-May-08 100 46 6 0 0 0 0 0
15-Nov-08 100 30 0 0 0 0 0 0
15-May-09 100 15 0 0 0 0 0 0
15-Nov-09 100 1 0 0 0 0 0 0
15-May-10 100 0 0 0 0 0 0 0
15-Nov-10 100 0 0 0 0 0 0 0
15-May-11 100 0 0 0 0 0 0 0
15-Nov-11 100 0 0 0 0 0 0 0
15-May-12 100 0 0 0 0 0 0 0
15-Nov-12 91 0 0 0 0 0 0 0
15-May-13 71 0 0 0 0 0 0 0
15-Nov-13 49 0 0 0 0 0 0 0
15-May-14 26 0 0 0 0 0 0 0
15-Nov-14 2 0 0 0 0 0 0 0
15-May-15 0 0 0 0 0 0 0 0
15-Nov-15 0 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years)(2) 12.99 7.47 6.27 5.52 5.10 4.72 4.23 3.81
Last Principal Date 15-Dec-14 15-Dec-09 15-Aug-08 15-Oct-07 15-Apr-07 15-Nov-06 15-Mar-06 15-Sep-05
First Principal Date 15-Sep-12 15-Dec-06 15-Nov-05 15-Apr-05 15-Dec-04 15-Aug-04 15-Mar-04 15-Nov-03
</TABLE>
19
<PAGE>
CLASS A-4 NOTES
<TABLE>
<CAPTION>
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 100 100 100 100 100 100 100 100
15-Nov-01 100 100 100 100 100 100 100 100
15-May-02 100 100 100 100 100 100 100 100
15-Nov-02 100 100 100 100 100 100 100 100
15-May-03 100 100 100 100 100 100 100 100
15-Nov-03 100 100 100 100 100 100 100 100
15-May-04 100 100 100 100 100 100 100 100
15-Nov-04 100 100 100 100 100 100 100 100
15-May-05 100 100 100 100 100 100 100 100
15-Nov-05 100 100 100 100 100 100 100 84
15-May-06 100 100 100 100 100 100 87 51
15-Nov-06 100 100 100 100 100 95 56 0
15-May-07 100 100 100 100 92 65 0 0
15-Nov-07 100 100 100 93 64 0 0 0
15-May-08 100 100 100 66 0 0 0 0
15-Nov-08 100 100 85 0 0 0 0 0
15-May-09 100 100 60 0 0 0 0 0
15-Nov-09 100 100 0 0 0 0 0 0
15-May-10 100 79 0 0 0 0 0 0
15-Nov-10 100 57 0 0 0 0 0 0
15-May-11 100 0 0 0 0 0 0 0
15-Nov-11 100 0 0 0 0 0 0 0
15-May-12 100 0 0 0 0 0 0 0
15-Nov-12 100 0 0 0 0 0 0 0
15-May-13 100 0 0 0 0 0 0 0
15-Nov-13 100 0 0 0 0 0 0 0
15-May-14 100 0 0 0 0 0 0 0
15-Nov-14 100 0 0 0 0 0 0 0
15-May-15 65 0 0 0 0 0 0 0
15-Nov-15 51 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years)(2) 14.83 9.98 8.53 7.64 7.13 6.64 5.99 5.42
Last Principal Date 15-Feb-16 15-Mar-11 15-Sep-09 15-Oct-08 15-Apr-08 15-Oct-07 15-Feb-07 15-Jul-06
First Principal Date 15-Dec-14 15-Dec-09 15-Aug-08 15-Oct-07 15-Apr-07 15-Nov-06 15-Mar-06 15-Sep-05
</TABLE>
20
<PAGE>
CLASS B NOTES
<TABLE>
<CAPTION>
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 100 100 100 100 100 100 100 100
15-Nov-01 100 100 100 100 100 100 100 100
15-May-02 100 100 100 100 100 100 100 100
15-Nov-02 100 100 100 100 100 100 100 100
15-May-03 100 100 100 100 100 100 100 100
15-Nov-03 100 100 100 100 100 100 100 100
15-May-04 100 100 100 100 100 100 100 100
15-Nov-04 100 100 100 100 100 100 100 100
15-May-05 100 100 100 100 100 100 100 100
15-Nov-05 100 100 100 100 100 100 100 100
15-May-06 100 100 100 100 100 100 100 100
15-Nov-06 100 100 100 100 100 100 100 0
15-May-07 100 100 100 100 100 100 0 0
15-Nov-07 100 100 100 100 100 0 0 0
15-May-08 100 100 100 100 0 0 0 0
15-Nov-08 100 100 100 0 0 0 0 0
15-May-09 100 100 100 0 0 0 0 0
15-Nov-09 100 100 0 0 0 0 0 0
15-May-10 100 100 0 0 0 0 0 0
15-Nov-10 100 100 0 0 0 0 0 0
15-May-11 100 0 0 0 0 0 0 0
15-Nov-11 100 0 0 0 0 0 0 0
15-May-12 100 0 0 0 0 0 0 0
15-Nov-12 100 0 0 0 0 0 0 0
15-May-13 100 0 0 0 0 0 0 0
15-Nov-13 100 0 0 0 0 0 0 0
15-May-14 100 0 0 0 0 0 0 0
15-Nov-14 100 0 0 0 0 0 0 0
15-May-15 100 0 0 0 0 0 0 0
15-Nov-15 100 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years) (2) 15.25 10.33 8.83 7.91 7.41 6.91 6.25 5.66
Last Principal Date 15-Feb-16 15-Mar-11 15-Sep-09 15-Oct-08 15-Apr-08 15-Oct-07 15-Feb-07 15-Jul-06
First Principal Date 15-Feb-16 15-Mar-11 15-Sep-09 15-Oct-08 15-Apr-08 15-Oct-07 15-Feb-07 15-Jul-06
</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.
21
<PAGE>
PERCENT OF ORIGINAL CERTIFICATE BALANCE AT VARIOUS CPR PERCENTAGES(1)
<TABLE>
<CAPTION>
CERTIFICATES
0% 13% 17% 20% 22% 24% 27% 30%
-- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLOSING DATE 100 100 100 100 100 100 100 100
------------
15-May-01 100 100 100 100 100 100 100 100
15-Nov-01 100 100 100 100 100 100 100 100
15-May-02 100 100 100 100 100 100 100 100
15-Nov-02 100 100 100 100 100 100 100 100
15-May-03 100 100 100 100 100 100 100 100
15-Nov-03 100 100 100 100 100 100 100 100
15-May-04 100 100 100 100 100 100 100 100
15-Nov-04 100 100 100 100 100 100 100 100
15-May-05 100 100 100 100 100 100 100 100
15-Nov-05 100 100 100 100 100 100 100 100
15-May-06 100 100 100 100 100 100 100 100
15-Nov-06 100 100 100 100 100 100 100 0
15-May-07 100 100 100 100 100 100 0 0
15-Nov-07 100 100 100 100 100 0 0 0
15-May-08 100 100 100 100 0 0 0 0
15-Nov-08 100 100 100 0 0 0 0 0
15-May-09 100 100 100 0 0 0 0 0
15-Nov-09 100 100 0 0 0 0 0 0
15-May-10 100 100 0 0 0 0 0 0
15-Nov-10 100 100 0 0 0 0 0 0
15-May-11 100 0 0 0 0 0 0 0
15-Nov-11 100 0 0 0 0 0 0 0
15-May-12 100 0 0 0 0 0 0 0
15-Nov-12 100 0 0 0 0 0 0 0
15-May-13 100 0 0 0 0 0 0 0
15-Nov-13 100 0 0 0 0 0 0 0
15-May-14 100 0 0 0 0 0 0 0
15-Nov-14 100 0 0 0 0 0 0 0
15-May-15 100 0 0 0 0 0 0 0
15-Nov-15 100 0 0 0 0 0 0 0
15-May-16 0 0 0 0 0 0 0 0
Weighted Average Life (years)(2) 15.25 10.33 8.83 7.91 7.41 6.91 6.25 5.66
Last Principal Date 15-Feb-16 15-Mar-11 15-Sep-09 15-Oct-08 15-Apr-08 15-Oct-07 15-Feb-07 15-Jul-06
First Principal Date 15-Feb-16 15-Mar-11 15-Sep-09 15-Oct-08 15-Apr-08 15-Oct-07 15-Feb-07 15-Jul-06
</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 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.
22
<PAGE>
THE CIT GROUP/SALES FINANCING, INC., SERVICER
GENERAL
As of June 30, 2000, CITSF serviced or subserviced for itself and others
approximately 230,000 contracts (consisting primarily of recreation vehicle,
home equity, recreational boat and manufactured housing contracts), representing
an outstanding balance of approximately $8.3 billion. Of this portfolio, 71,479
contracts (representing approximately $2.0 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. The total outstanding balance
of contracts serviced for third parties is approximately $1.1 billion at June
30, 2000.
SERVICING
The following tables show 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:
THE CIT GROUP/SALES FINANCING, INC.
CONTRACTS BEING SERVICED BY PRODUCT LINE
(DOLLAR AMOUNTS IN MILLIONS)
(NUMBER OF ACCOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
AT DECEMBER 31,
----------------------------------------------------------------------------------
1995 1996 1997
----------------------------------------------------------------------------------
(NUMBER) (DOLLARS) (NUMBER) (DOLLARS) (NUMBER) (DOLLARS)
-------- --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
RV--Owned............ 30.0 $662.5 22.2 $477.4 19.5 $416.1
RV--Bulk Purchases... 2.6 36.1 2.8 32.7 3.5 82.8
RV--SERVICING(1)..... 19.5 445.7 32.6 746.8 71.6 1,910.0
----- ------- ----- ------- ----- -------
Total RV............ 52.1 1,144.3 57.6 1,256.9 94.6 2,408.9
Total MH............ 69.3 1,368.5 96.0 1,748.4 89.3 1,836.5
Total RB............ 6.0 156.9 13.3 328.1 35.7 948.9
Home Equity......... 27.1 1,039.0 52.6 2,005.5 57.3 2,446.2
OTHER(2)............ 0.1 2.1 0.1 3.1 5.1 121.6
----- -------- ----- -------- ----- --------
Total Contracts Serviced 154.6 $3,710.8 219.6 $5,342.0 282.0 $7,762.1
</TABLE>
<TABLE>
<CAPTION>
AT DECEMBER 31,
------------------------------------------------------
1998 1999 AT JUNE 30, 2000
----------------------------------------------------------------------------------
(NUMBER) (DOLLARS) (NUMBER) (DOLLARS) (NUMBER) (DOLLARS)
-------- --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
RV--Owned.......... 23.6 $673.1 9.7 $312.6 12.7 $467.6
RV--Bulk Purchases. 7.7 71.0 4.9 48.6 3.8 39.2
RV--SERVICING(1)... 65.0 1,711.7 61.6 1,727.8 54.9 1,522.1
----- -------- ----- -------- ----- --------
Total RV.......... 96.3 2,455.8 76.2 2,089.0 71.4 2,028.9
Total MH.......... 81.2 1,936.9 69.8 2,041.4 59.2 2,017.0
Total RB.......... 42.4 1,226.5 32.2 961.2 26.7 846.2
Home Equity....... 57.0 2,851.8 48.3 2,647.0 47.5 2,884.8
OTHER(2).......... 8.5 315.2 7.7 259.5 25.2 533.7
----- -------- ----- -------- ----- --------
Total Contracts Serviced 285.4 $8,786.2 234.2 $7,998.1 230.0 $8,310.6
</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.
23
<PAGE>
DELINQUENCY AND LOAN LOSS EXPERIENCE
The following tables set forth the delinquency experience 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. Data provided is at December 31, 1995 through December
31, 1999 and at June 30, 1999 and 2000.
DELINQUENCY EXPERIENCE
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
AT DECEMBER 31,
-----------------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Number of Contracts (in thousands) (1)............ 49.5 54.8 64.6 68.7 56.6
Principal Balance of Contracts Serviced (1)....... $1,108.2 $1,224.2 $1,512.6 $ 1,816.0 $ 1,641.0
Principal Balance of Delinquent Contracts (2):
30-59 Days........................................ $9.2 $14.9 $22.2 $18.1 $17.8
60-89 Days........................................ 3.1 4.3 8.6 7.4 6.8
90 Days or More................................... 4.5 6.2 12.3 20.1 20.2
-------- -------- -------- --------- ---------
Total Principal Balance of Delinquent Contracts... $16.8 $25.4 $43.1 $45.6 $44.8
Delinquencies as a Percent of Principal Balances (3) 1.51% 2.08% 2.85% 2.51% 2.73%
</TABLE>
AT JUNE 30,
-----------------
1999 2000
---- ----
Number of Contracts (in thousands) (1)............ 66.9 54.4
Principal Balance of Contracts Serviced (1)....... $1,877.2 $1,641.6
Principal Balance of Delinquent Contracts (2):
30-59 Days........................................ $17.6 $18.7
60-89 Days........................................ 5.0 6.7
90 Days or More................................... 18.1 18.3
Total Principal Balance of Delinquent Contracts... $40.7 $43.7
Delinquencies as a Percent of Principal Balances (3) 2.17% 2.66%
----------
(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 tables set forth the loan loss experience 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 aggregate balance of all contracts which are
determined to be uncollectible in the period less any recoveries and liquidation
proceeds on contracts charged-off in the period or any prior periods. Net Losses
include outside collection, repossession and liquidation expenses. Data provided
is for the years ended December 31, 1995 through December 31, 1999 and the six
month periods ended June 30, 1999 and June 30, 2000.
24
<PAGE>
LOAN LOSS/LIQUIDATION EXPERIENCE
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
Average Principal Balance of Contracts
<S> <C> <C> <C> <C> <C>
Serviced(1),(2)..................... $1,041.3 $1,166.3 $1,308.8 $1,663.1 $1,833.5
Net Losses:
Dollars................................. $4.8 $9.9 $13.8 $14.3 $18.6
Percentage(3)......................... 0.46% 0.85% 1.05% 0.86% 1.01%
</TABLE>
SIX MONTHS ENDED JUNE 30,
-------------------------------
1999 2000
---- ----
Average Principal Balance of Contracts
Serviced(1),(2)..................... $1,846.6 $1,635.7
Net Losses:
Dollars................................. $9.3 $8.3
Percentage(3)(4)........................ 1.01% 1.02%
----------
(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.
(4) Annualized.
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. The
percentages in the tables have not been adjusted to eliminate the effect of the
growth of CITSF's portfolio. Accordingly, the delinquency, loss and liquidation
percentages may be lower than those shown if a group of contracts were isolated
at a period in time and the delinquency and loss data showed the activity only
for that isolated group of contracts over the periods indicated. 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 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.
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 seasoning of contracts originated
under the underwriting guidelines adopted in 1994 contributed to the increased
loss and delinquency rates experienced for the period from December, 1996
through June 2000.
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
25
<PAGE>
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.
Starting in 1998 CITSF shifted its marketing efforts toward higher credit
quality obligors. This has resulted in decreased delinquencies and losses on
contracts originated beginning in 1998 and an overall improvement in credit
quality.
In 1999 CITSF implemented a new custom scorecard developed with Experian
to better match credit scores with the appropriate pricing. In May 2000 in order
to better communicate pricing requirements in various risk bands to the
marketplace, CITSF began to use the scoring system provided by nationally
recognized credit bureaus (Experian, TransUnion, Equifax) and began to publish
credit bureau pricing which correlated to specific credit bureau score bands.
The results of implementing the new scorecard and the subsequent implementation
of credit bureau based pricing have contributed to an increased average credit
bureau score during this period. All of the Contracts were originated under the
credit criteria adopted by CITSF in February 1999 and updated in May 2000.
In 1999 CIT expanded its funding strategy to include RV whole loan sales.
These sales are the primary reason for the reduction in the portfolio balance
from December 1998 to June 2000.
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. In addition, there can be no assurance that the increased average
credit bureau score resulting from the implementation of the new scorecard and
credit bureau based pricing described above will result in lower losses or
delinquencies on the Contracts than have been historically experienced on
CITSF's portfolio. 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.
26
