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Previous: PRUDENTIAL SECURITIES SECURED FINANCING CORP, 424B5, 1998-08-19 |
Next: PRUDENTIAL SECURITIES SECURED FINANCING CORP, 10-K405, 1998-08-19 |
<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Data of earliest event reported)
January 1, 1998
FIRST SIERRA EQUIPMENT CONTRACT TRUST Series 1997-1
(exact name of Registrant as specified in its charter)
Delaware 33-84918 52-2063065
- ------------------------------- ---------------- -------------------
(State or Other Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
Suite 7050
600 Travis Street
Houston, TX 77002
- -------------------------------- ----------
(Address of Principal Executive) (Zip Code)
Registrant's telephone number, including area code: 713-221-8822
<PAGE> 2
Item 1. Business
The Registrant is a Delaware Business Trust formed solely for the purpose of
acquiring from First Sierra Receivables IV, Inc., a bankruptcy remote subsidiary
of First Sierra Financial, Inc., certain leases (the "Leases") and interests in
equipment underlying the leases (together the "Receivables") and securitizing
the Receivables through the issuance of Certificates. The Registrant's
operations are restricted so that (a) it does not engage in business with, or
incur liabilities to, any other entity which may bring bankruptcy proceedings
against the Registrant and 9b) the risk is diminished that it will be
consolidated into the bankruptcy proceedings of any other entity. The Registrant
has no other assets except the Receivables and proceeds thereof.
Item 2. Acquisition or Disposition of Assets
None
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
1.1 Servicing Report for the collection period ended January,
February, March, April, May, June, July 1998.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
First Sierra Receivables IV, Inc.
By: /s/ E. R. Gebhart
------------------------------
Name: E. R. Gebhart
Title: Vice President
2
<PAGE> 4
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
1.1 Servicing Report for the collection period ended January, February,
March, April, May, June, July 1998.
</TABLE>
<PAGE> 1
EXHIBIT 1.1
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,957,372.34
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account -
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account -
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 448,594.87
(b) Servicer Fees from current and prior Collection Period 88,960.58
(c) Servicing Charges inadvertantly deposited in Collection Account -
(iv) Current and unpaid Back-up Servicing Fees 3,348.79
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 22,888.11
Adjustment to prior month premium amount -
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee
Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii)
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 110,034.12
Adjustment to prior month Class A-1 Note Interest -
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 24,469.66
(x) Letter of Credit Bank Fee and unpaid amounts 1,954.73
(xi) Class B-2 Note Interest 22,923.65
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount 4,801,728.21
Class A-2 Principal Distribution Amount -
Class A-3 Principal Distribution Amount -
Class A-4 Principal Distribution Amount -
(xiii) Note Insuer Reimbursement Amount -
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 104,385.40
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 104,385.40
(xvi) Letter of Credit Reimbursement Amount -
(xvii) Class B-3 Note Interest 24,878.38
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 104,385.40
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) -
(xx) Letter of Credit Additional Reimbursement Amount -
(xxi) Other Amounts Due Servicer under Servicing Agreement -
</TABLE>
Page 1
<PAGE> 2
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder 62,425.17
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount 97,994.45
Class A-2 additional Principal Distribution Amount -
Class A-3 additional Principal Distribution Amount -
Class A-4 additional Principal Distribution Amount -
Class B-1 additional Principal Distribution Amount 2,130.31
Class B-2 additional Principal Distribution Amount 2,130.31
Class B-3 additional Principal Distribution Amount 2,130.31
</TABLE>
Reviewed By:
---------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 3
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
--------------- -------------- -------------- ------------ ------------ ------------ -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 20,939,768.50 4,801,728.21 97,994.45 4,899,722.67 16,040,045.83 0.4860915
Class A-2 85,479,000.00 85,479,000.00 - - - 85,479,000.00 1.0000000
Class A-3 51,527,000.00 51,527,000.00 - - - 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 - - - 38,238,000.00 1.0000000
-------------- -------------- ----------- ---------- ------------ -------------- ---------
Total Class A 208,242,000.00 196,183,768.50 4,801,728.21 97,994.45 4,899,722.67 191,284,045.83 0.9185661
Class B-1 4,527,000.00 4,264,864.54 104,385.40 2,130.31 106,515.71 4,158,348.83 0.9185661
Class B-2 4,527,000.00 4,264,864.54 104,385.40 2,130.31 106,515.71 4,158,348.83 0.9185661
Class B-3 4,527,000.00 4,264,864.54 104,385.40 2,130.31 106,515.71 4,158,348.83 0.9185661
-------------- -------------- ----------- ---------- ------------ --------------
Total 221,823,000.00 208,978,362.11 5,114,884.40 104,385.40 5,219,269.80 203,759,092.31
ADCPB at end of Collection Period 208,286,118.17
--------------
Excess of ending ADCPB over ending note balance 4,527,025.86
Floor 4,527,025.86
--------------
Difference -
</TABLE>
Page 3
<PAGE> 4
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of December 31, 1997 4,009,954.77
Investment earnings on amounts in Collection Account 13,265.04
Payments due Collection Account from last 3 business days of Collection Period 336,938.20
Additional contribution for terminated trade-ups and rebooked leases 150,218.46
Servicer Advance on current Determination Date 2,446,995.87
------------
Available Funds on Payment Date 6,957,372.34
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,957,372.34
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,957,372.34
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 448,594.87
Unreimbursed Servicer Advances paid 448,594.87
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,508,777.47
SERVICER FEES
Servicer Fees due 88,960.58
Servicer Fees paid 88,960.58
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,419,816.90
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,419,816.90
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,348.79
Back-up Servicer Fees paid 3,348.79
------------
Back-up Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,416,468.11
PREMIUM AMOUNT
Premium Amount due 22,888.11
Premium Amount paid 22,888.11
------------
Premium Amount remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,393,580.00
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
------------
Indenture Trustee Fee remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 6,393,288.33
</TABLE>
Page 4
<PAGE> 5
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(a)(ii)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07(a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 6,393,288.33
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 110,034.12
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
--------------
Total Class A Interest due 1,037,366.95
--------------
REMAINING AVAILABLE FUNDS 5,355,921.38
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 24,469.66
Class B-1 Note Interest paid 24,469.66
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,331,451.72
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,954.73
Letter of Credit Bank Fee paid 1,954.73
--------------
Letter of Credit Bank Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,329,496.99
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 22,923.65
Class B-2 Note Interest paid 22,923.65
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,306,573.34
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,801,728.21
Class A Note Principal Balance as of preceding Payment Date 196,183,768.50
--------------
Class A Base Principal Distribution Amount paid 4,801,728.21
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 20,939,768.50
Class A-1 Base Principal Distribution Amount paid 4,801,728.21
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 16,138,040.29
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 5
<PAGE> 6
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 85,479,000.00
Class A-2 Base Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 504,845.13
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
-------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 504,845.13
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 4,264,864.54
Class B-1 Base Principal Distribution due 104,385.40
Class B-1 Base Principal Distribution paid 104,385.40
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 4,160,479.14
REMAINING AVAILABLE FUNDS 400,459.73
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 4,264,864.54
Class B-2 Base Principal Distribution due 104,385.40
Class B-2 Base Principal Distribution paid 104,385.40
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 4,160,479.14
REMAINING AVAILABLE FUNDS 296,074.34
</TABLE>
Page 6
<PAGE> 7
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
--------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 296,074.34
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 24,878.38
Class B-3 Note Interest paid 24,878.38
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 271,195.96
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 4,264,864.54
Class B-3 Base Principal Distribution due 104,385.40
Class B-3 Base Principal Distribution paid 104,385.40
--------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 4,160,479.14
REMAINING AVAILABLE FUNDS 166,810.57
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(a)(ii)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
--------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 166,810.57
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
--------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 166,810.57
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
--------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 166,810.57
EXCESS OF ADCPB OVER ENDING NOTE BALANCES 104,385.40
AMOUNT PAYABLE TO RESIDUAL HOLDER 62,425.17
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 104,385.40
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 104,385.40
Adjusted Principal Distribution Sharing Ratio 93.878%
--------------
Additional Principal Distribution to Class A 97,994.45
Class A Note Principal Balance after payment above 191,382,040.29
--------------
Class A additional Principal Distribution Amount paid 97,994.45
--------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above 16,138,040.29
Class A-1 additional Principal Distribution Amount paid 97,994.45
--------------
</TABLE>
Page 7
<PAGE> 8
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date 16,040,045.83
-------------
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-2 Note Principal Balance after payment above 85,479,000.00
Class A-2 additional Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 104,385.40
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-1 2,130.31
Class B-1 Note Principal Balance after payment above 4,160,479.14
Class B-1 additional Principal Distribution paid 2,130.31
-------------
Class B-1 Note Principal Balance after distribution on Payment Date 4,158,348.83
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 104,385.40
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-2 2,130.31
Class B-2 Note Principal Balance after payment above 4,160,479.14
Class B-2 additional Principal Distribution paid 2,130.31
-------------
Class B-2 Note Principal Balance after distribution on Payment Date 4,158,348.83
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 104,385.40
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-3 2,130.31
Class B-3 Note Principal Balance after payment above 4,160,479.14
Class B-3 additional Principal Distribution paid 2,130.31
-------------
Class B-3 Note Principal Balance after distribution on Payment Date 4,158,348.83
</TABLE>
Page 8
<PAGE> 9
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 213,505,387.96
ADCPB, end of Collection Period 208,286,118.17
--------------
Base Principal Amount 5,219,269.80
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 1,995,625.59
Servicing Advances collected during the current Collection Period 1,547,030.72
--------------
Unreimbursed Servicing Advances as of current Determination Date 448,594.87
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
----- -------------- ----------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Class A-1 20,939,768.50 5.7325% 110,034.12 -- 110,034.12
Class A-2 85,479,000.00 6.3500% 452,326.38 -- 452,326.38
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 4,264,864.54 6.8850% 24,469.66 -- 24,469.66
Class B-2 4,264,864.54 6.4500% 22,923.65 -- 22,923.65
Class B-3 4,264,864.54 7.0000% 24,878.38 -- 24,878.38
-------------- ----------- --------------- ------------- ------------
208,978,362.11 6.3718% 1,109,638.64 -- 1,109,638.64
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
----- ----------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,801,728.21 -- 4,801,728.21
Class B-1 2.0% 104,385.40 -- 104,385.40
Class B-2 2.0% 104,385.40 -- 104,385.40
Class B-3 2.0% 104,385.40 -- 104,385.40
------------ --------- ------------
5,114,884.40 -- 5,114,884.40
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 213,505,387.96
Servicer Fee Rate 0.500%
One-twelfth 1/12
--------------
Servicer Fee due current period 88,960.58
Prior Servicer Fee arrearage --
--------------
Servicer Fee due 88,960.58
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 213,505,387.96
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
--------------
Back-up Servicer Fee due Current Period 3,558.42
less overpayment from prior period (209.64)
Prior Back-up Servicer Fee Arrearage --
--------------
Back-up Servicer Fee due 3,348.79
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 196,183,768.50
Premium Rate 0.140%
One-twelfth 1/12
--------------
</TABLE>
Page 9
<PAGE> 10
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED JANUARY 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 22,888.11
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 22,888.11
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as of Deter. Date) 4,264,864.54
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
--------------
Letter of Credit Bank Fee due Current Period 1,954.73
Letter of Credit Bank Fee arrearage --
--------------
Total Letter of Credit Bank Fee arrearage due 1,954.73
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
--------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
--------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
--------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 208,286,118.17
Aggregate Note Balances prior to any payment on current Payment Date 208,978,362.11
Payments on payment date prior to application of Floor Amount, if any
Class A 4,801,728.21
Class B-1 104,385.40
Class B-2 104,385.40
Class B-3 104,385.40
--------------
Total Base Principal Amount distributions on current payment date 5,114,884.40
--------------
Aggregate Note Balance after payment of Base Principal Amount 203,863,477.71
--------------
Excess of ADCPB over Ending Note Balances 4,422,640.46
Excess of ADCPB over Ending Note Balances 104,385.40
</TABLE>
Page 10
<PAGE> 11
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED JANUARY 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest required
to be made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an
amount equal to the principal duNoon the Outstanding Notes as of such Payment
Date to the extent that sufficient Available Funds are on deposit in the
Collection Account of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
---------- ------ ------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn or dismissed No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 12
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED JANUARY 1, 1998
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 1.43%
Gross Charge Off Ratio Prior Period -0.02%
Gross Charge Off Ratio Second Prior Period 0.02%
----
Average of Gross Charge Off Ratio for Three Periods 0.47%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
-------------- ---------- ----------- ----- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 518,690.07 270,979.53 247,710.54 208,286,118.17 1.43%
Prior Period 206,389.28 210,137.68 -3,748.40 213,505,387.96 -0.02%
Second Prior Period 127,142.70 124,029.31 3,113.39 217,974,137.88 0.02%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 2.42%
Delinquency Trigger Ratio Prior Period 4.16%
Delinquency Trigger Ratio Second Prior Period 1.71%
----
Average of Delinquency Trigger Ratios 2.76%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
- - ---
ADCPB of ADCPB of
Contract > 30 Days All Delinquency Trigger
Past Due Contracts Ratio:
---------------- --------- -------------------
<S> <C> <C> <C>
Current Period 5,033,430.40 208,286,118.17 2.42%
Prior Period 8,876,903.30 213,505,387.96 4.16%
Second Prior Period 3,729,070.13 217,974,132.88 1.71%
</TABLE>
Page 12
<PAGE> 13
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,258,958.01
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account -
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account -
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 500,884.39
(b) Servicer Fees from current and prior Collection Period 86,785.88
(c) Servicing Charges inadvertantly deposited in Collection Account -
(iv) Current and unpaid Back-up Servicing Fees 3,471.44
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 22,316.47
Adjustment to prior month premium amount -
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) -
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 74,070.48
Adjustment to prior month Class A-1 Note Interest -
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 23,858.53
(x) Letter of Credit Bank Fee and unpaid amounts 1,905.91
(xi) Class B-2 Note Interest 22,351.12
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount 4,120,607.76
Class A-2 Principal Distribution Amount -
Class A-3 Principal Distribution Amount -
Class A-4 Principal Distribution Amount -
(xiii) Note Insuer Reimbursement Amount -
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 89,578.43
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 89,578.43
(xvi) Letter of Credit Reimbursement Amount -
(xvii) Class B-3 Note Interest 24,257.03
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 89,578.43
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) -
(xx) Letter of Credit Additional Reimbursement Amount -
(xxi) Other Amounts Due Servicer under Servicing Agreement -
</TABLE>
Page 1
<PAGE> 14
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder 92,510.77
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount 84,094.04
Class A-2 additional Principal Distribution Amount -
Class A-3 additional Principal Distribution Amount -
Class A-4 additional Principal Distribution Amount -
Class B-1 additional Principal Distribution Amount 1,828.13
Class B-2 additional Principal Distribution Amount 1,828.13
Class B-3 additional Principal Distribution Amount 1,828.13
</TABLE>
Reviewed By:
------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 15
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
--------------- -------------- -------------- ------------ ------------ ------------ -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 16,040,045.83 4,120,607.76 84,094.04 4,204,701.80 11,835,344.04 0.3586685
Class A-2 85,479,000.00 85,479,000.00 - - - 85,479,000.00 1.0000000
Class A-3 51,527,000.00 51,527,000.00 - - - 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 - - - 38,238,000.00 1.0000000
-------------- -------------- ------------ --------- ------------ -------------- ---------
Total Class A 208,242,000.00 191,284,045.83 4,120,607.76 84,094.04 4,204,701.80 187,079,344.04 0.8983747
Class B-1 4,527,000.00 4,158,348.83 89,578.43 1,828.13 91,406.56 4,066,942.26 0.8983747
Class B-2 4,527,000.00 4,158,348.83 89,578.43 1,828.13 91,406.56 4,066,942.26 0.8983747
Class B-3 4,527,000.00 4,158,348.83 89,578.43 1,828.13 91,406.56 4,066,942.26 0.8983747
-------------- -------------- ------------ --------- ------------ --------------
Total 221,823,000.00 203,759,092.31 4,389,343.05 89,578.43 4,478,921.48 199,280,170.83
ADCPB at end of Collection Period 203,807,196.69
--------------
Excess of ending ADCPB over ending note balance 4,527,025.86
Floor 4,527,025.86
--------------
Difference 0.00
</TABLE>
Page 3
<PAGE> 16
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of January 31, 1998 3,118,513.53
Investment earnings on amounts in Collection Account 12,717.57
Payments due Collection Account from last 3 business days of Collection Period 478,421.91
Additional contribution for terminated trade-ups and rebooked leases --
Servicer Advance on current Determination Date 2,649,305.00
------------
Available Funds on Payment Date 6,258,958.01
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,258,958.01
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 6,258,958.01
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 500,884.39
Unreimbursed Servicer Advances paid 500,884.39
------------
Unreimbursed Servicer Advances remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 5,758,073.62
SERVICER FEES
Servicer Fees due 86,785.88
Servicer Fees paid 86,785.88
------------
Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 5,671,287.74
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
------------
REMAINING AVAILABLE FUNDS 5,671,287.74
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,471.44
Back-up Servicer Fees paid 3,471.44
------------
Back-up Servicer Fees remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 5,667,816.31
PREMIUM AMOUNT
Premium Amount due 22,316.47
Premium Amount paid 22,316.47
------------
Premium Amount remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 5,645,499.83
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
------------
Indenture Trustee Fee remaining unpaid --
------------
REMAINING AVAILABLE FUNDS 5,645,208.16
</TABLE>
Page 4
<PAGE> 17
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(a)(ii)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 5,645,208.16
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 74,070.48
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
--------------
Total Class A Interest due 1,001,403.31
--------------
REMAINING AVAILABLE FUNDS 4,643,804.85
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 23,858.53
Class B-1 Note Interest paid 23,858.53
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,619,946.32
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,905.91
Letter of Credit Bank Fee paid 1,905.91
--------------
Letter of Credit Bank Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,618,040.41
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 22,351.12
Class B-2 Note Interest paid 22,351.12
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,595,689.29
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,120,607.76
Class A Note Principal Balance as of preceding Payment Date 191,284,045.83
--------------
Class A Base Principal Distribution Amount paid 4,120,607.76
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 16,040,045.83
Class A-1 Base Principal Distribution Amount paid 4,120,607.76
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 11,919,438.07
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 5
<PAGE> 18
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 85,479,000.00
Class A-2 Base Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 475,081.53
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
-------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 475,081.53
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 4,158,348.83
Class B-1 Base Principal Distribution due 89,578.43
Class B-1 Base Principal Distribution paid 89,578.43
-------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 4,068,770.40
REMAINING AVAILABLE FUNDS 385,503.10
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 4,158,348.83
Class B-2 Base Principal Distribution due 89,578.43
Class B-2 Base Principal Distribution paid 89,578.43
-------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 4,068,770.40
REMAINING AVAILABLE FUNDS 295,924.67
</TABLE>
Page 6
<PAGE> 19
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
--------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 295,924.67
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 24,257.03
Class B-3 Note Interest paid 24,257.03
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 271,667.63
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 4,158,348.83
Class B-3 Base Principal Distribution due 89,578.43
Class B-3 Base Principal Distribution paid 89,578.43
--------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 4,068,770.40
REMAINING AVAILABLE FUNDS 182,089.20
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(a)(ii)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
--------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 182,089.20
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
--------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 182,089.20
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
--------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 182,089.20
EXCESS OF ADCPB OVER ENDING NOTE BALANCES 89,578.43
AMOUNT PAYABLE TO RESIDUAL HOLDER 92,510.77
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 89,578.43
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 89,578.43
Adjusted Principal Distribution Sharing Ratio 93.878%
--------------
Additional Principal Distribution to Class A 84,094.04
Class A Note Principal Balance after payment above 187,163,438.07
--------------
Class A additional Principal Distribution Amount paid 84,094.04
--------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above 11,919,438.07
Class A-1 additional Principal Distribution Amount paid 84,094.04
--------------
</TABLE>
Page 7
<PAGE> 20
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date 11,835,344.04
-------------
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-2 Note Principal Balance after payment above 85,479,000.00
Class A-2 additional Principal Distribution Amount paid --
-------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
-------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
-------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
-------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 89,578.43
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-1 1,828.13
Class B-1 Note Principal Balance after payment above 4,068,770.40
Class B-1 additional Principal Distribution paid 1,828.13
-------------
Class B-1 Note Principal Balance after distribution on Payment Date 4,066,942.26
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 89,578.43
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-2 1,828.13
Class B-2 Note Principal Balance after payment above 4,068,770.40
Class B-2 additional Principal Distribution paid 1,828.13
-------------
Class B-2 Note Principal Balance after distribution on Payment Date 4,066,942.26
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 89,578.43
Adjusted Principal Distribution Sharing Ratio 2.041%
-------------
Additional Principal Distribution to Class B-3 1,828.13
Class B-3 Note Principal Balance after payment above 4,068,770.40
Class B-3 additional Principal Distribution paid 1,828.13
-------------
Class B-3 Note Principal Balance after distribution on Payment Date 4,066,942.26
</TABLE>
Page 8
<PAGE> 21
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 208,286,118.17
ADCPB, end of Collection Period 203,807,196.69
--------------
Base Principal Amount 4,478,921.48
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,446,995.87
Servicing Advances collected during the current Collection Period 1,946,111.48
------------
Unreimbursed Servicing Advances as of current Determination Date 500,884.39
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
- --------- -------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Class A-1 16,040,045.83 5.7325% 74,070.48 -- 74,070.48
Class A-2 85,479,000.00 6.3500% 452,326.38 -- 452,326.38
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 4,158,348.83 6.8850% 23,858.53 -- 23,858.53
Class B-2 4,158,348.83 6.4500% 22,351.12 -- 22,351.12
Class B-3 4,158,348.83 7.0000% 24,257.03 -- 24,257.03
-------------- --------------- --------------- ---------------
203,759,092.31 6.3126% 1,071,870.00 -- 1,071,870.00
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,120,607.76 -- 4,120,607.76
Class B-1 2.0% 89,578.43 -- 89,578.43
Class B-2 2.0% 89,578.43 -- 89,578.43
Class B-3 2.0% 89,578.43 -- 89,578.43
------------ ------------ ------------
4,389,343.05 -- 4,389,343.05
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 208,286,118.17
Servicer Fee Rate 0.500%
One-twelfth 1/12
--------------
Servicer Fee due current period 86,785.88
Prior Servicer Fee arrearage --
--------------
Servicer Fee due 86,785.88
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 208,286,118.17
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
--------------
Back-up Servicer Fee due Current Period 3,471.44
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
--------------
Back-up Servicer Fee due 3,471.44
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 191,284,045.83
Premium Rate 0.140%
One-twelfth 1/12
--------------
</TABLE>
Page 9
<PAGE> 22
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 22,316.47
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 22,316.47
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance
as of Deter. Date) 4,158,348.83
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
--------------
Letter of Credit Bank Fee due Current Period 1,905.91
Letter of Credit Bank Fee arrearage --
--------------
Total Letter of Credit Bank Fee arrearage due 1,905.91
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
--------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
--------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
--------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 203,807,196.69
Aggregate Note Balances prior to any payment on current Payment Date 203,759,092.31
Payments on payment date prior to application of Floor Amount, if any
Class A 4,120,607.76
Class B-1 89,578.43
Class B-2 89,578.43
Class B-3 89,578.43
--------------
Total Base Principal Amount distributions on current payment date 4,389,343.05
--------------
Aggregate Note Balance after payment of Base Principal Amount 199,369,749.26
--------------
Excess of ADCPB over Ending Note Balances 4,437,447.43
Excess of ADCPB over Ending Note Balances 89,578.43
</TABLE>
Page 10
<PAGE> 23
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest required to be
made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an amount equal to the
principal duNoon the Outstanding Notes as of such Payment Date to the extent that
sufficient Available Funds are on deposit in the Collection Account of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
------- ----- ------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn or dismissed
within days No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 24
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED FEBRUARY 1, 1998
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 0.55%
Gross Charge Off Ratio Prior Period 1.43%
Gross Charge Off Ratio Second Prior Period -0.02%
Average of Gross Charge Off Ratio for Three Periods 0.65%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- -------------- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 300,270.09 207,479.65 92,790.44 203,807,196.69 0.55%
Prior Period 518,690.07 270,979.53 247,710.54 208,286,118.17 1.43%
Second Prior Period 206,389.28 210,137.68 -3,748.40 213,505,387.96 -0.02%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 3.23%
Delinquency Trigger Ratio Prior Period 2.42%
Delinquency Trigger Ratio Second Prior Period 4.16%
----
Average of Delinquency Trigger Ratios 3.27%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
- - ---
ADCPB of ADCPB of
Contract 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
---------------- --------------- -------------------
<S> <C> <C> <C>
Current Period 6,584,138.20 203,807,196.69 3.23%
Prior Period 5,033,430.40 208,286,118.17 2.42%
Second Prior Period 8,876,903.30 213,505,387.96 4.16%
</TABLE>
Page 12
<PAGE> 25
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,461,125.51
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account --
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 571,339.41
(b) Servicer Fees from current and prior Collection Period 84,919.67
(c) Servicing Charges inadvertantly deposited in Collection Account --
(iv) Current and unpaid Back-up Servicing Fees 3,396.79
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 21,825.92
Adjustment to prior month premium amount --
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) --
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 52,769.20
Adjustment to prior month Class A-1 Note Interest --
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 23,334.08
(x) Letter of Credit Bank Fee and unpaid amounts 1,864.02
(xi) Class B-2 Note Interest 21,859.81
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount 4,365,003.61
Class A-2 Principal Distribution Amount --
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xiii) Note Insuer Reimbursement Amount --
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 94,891.38
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 94,891.38
(xvi) Letter of Credit Reimbursement Amount --
(xvii) Class B-3 Note Interest 23,723.83
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 94,891.38
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) --
(xx) Letter of Credit Additional Reimbursement Amount --
(xxi) Other Amounts Due Servicer under Servicing Agreement --
</TABLE>
Page 1
<PAGE> 26
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder --
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount 73,966.62
Class A-2 additional Principal Distribution Amount --
Class A-3 additional Principal Distribution Amount --
Class A-4 additional Principal Distribution Amount --
Class B-1 additional Principal Distribution Amount 1,607.97
Class B-2 additional Principal Distribution Amount 1,607.97
Class B-3 additional Principal Distribution Amount 1,607.97
</TABLE>
Reviewed By:
-----------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 27
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
------------- -------------- -------------- ------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 11,835,344.04 4,365,003.61 73,966.62 4,438,970.22 7,396,373.81 0.2241461
Class A-2 85,479,000.00 85,479,000.00 -- -- -- 85,479,000.00 1.0000000
Class A-3 51,527,000.00 51,527,000.00 -- -- -- 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 -- -- -- 38,238,000.00 1.0000000
-------------- -------------- ------------ ------------ ------------ -------------- ------------
Total Class A 208,242,000.00 187,079,344.04 4,365,003.61 73,966.62 4,438,970.22 182,640,373.81 0.8770583
Class B-1 4,527,000.00 4,066,942.26 94,891.38 1,607.97 96,499.35 3,970,442.91 0.8770583
Class B-2 4,527,000.00 4,066,942.26 94,891.38 1,607.97 96,499.35 3,970,442.91 0.8770583
Class B-3 4,527,000.00 4,066,942.26 94,891.38 1,607.97 96,499.35 3,970,442.91 0.8770583
-------------- -------------- ------------ ------------ ------------ -------------- ------------
Total 221,823,000.00 199,280,170.83 4,649,677.75 78,790.53 4,728,468.28 194,551,702.55
ADCPB at end of Collection Period 199,062,627.55
--------------
Excess of ending ADCPB over ending note balance 4,510,925.00
Floor 4,527,025.86
--------------
Difference (16,100.86)
</TABLE>
Page 3
<PAGE> 28
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of February 28, 1998 3,005,895.46
Investment earnings on amounts in Collection Account 9,202.41
Payments due Collection Account from last 3 business days of Collection Period 302,300.61
Additional contribution for terminated trade-ups and rebooked leases 197,860.49
Servicer Advance on current Determination Date 2,945,866.54
---------------
Available Funds on Payment Date 6,461,125.51
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,461,125.51
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,461,125.51
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 571,339.41
Unreimbursed Servicer Advances paid 571,339.41
---------------
Unreimbursed Servicer Advances remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,889,786.10
SERVICER FEES
Servicer Fees due 84,919.67
Servicer Fees paid 84,919.67
---------------
Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,804,866.43
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 5,804,866.43
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,396.79
Back-up Servicer Fees paid 3,396.79
---------------
Back-up Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,801,469.64
PREMIUM AMOUNT
Premium Amount due 21,825.92
Premium Amount paid 21,825.92
---------------
Premium Amount remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,779,643.72
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
---------------
Indenture Trustee Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,779,352.05
</TABLE>
Page 4
<PAGE> 29
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(a)(ii)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07(a)(ii) 75,000.00
---------------
Total Indenture Trustee Expenses paid --
---------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 5,779,352.05
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 52,769.20
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
---------------
Total Class A Interest due 980,102.03
---------------
REMAINING AVAILABLE FUNDS 4,799,250.02
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 23,334.08
Class B-1 Note Interest paid 23,334.08
---------------
Class B-1 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,775,915.94
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,864.02
Letter of Credit Bank Fee paid 1,864.02
---------------
Letter of Credit Bank Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,774,051.92
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 21,859.81
Class B-2 Note Interest paid 21,859.81
---------------
Class B-2 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,752,192.11
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,365,003.61
Class A Note Principal Balance as of preceding Payment Date 187,079,344.04
---------------
Class A Base Principal Distribution Amount paid 4,365,003.61
---------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 11,835,344.04
Class A-1 Base Principal Distribution Amount paid 4,365,003.61
---------------
Class A-1 Note Principal Balance after distribution on Payment Date 7,470,340.43
---------------
Remaining Class A Base Principal Distribution Amount --
---------------
</TABLE>
Page 5
<PAGE> 30
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 85,479,000.00
Class A-2 Base Principal Distribution Amount paid --
---------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A Base Principal Distribution Amount --
---------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
---------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
---------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
---------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 387,188.50
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
---------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 387,188.50
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 4,066,942.26
Class B-1 Base Principal Distribution due 94,891.38
Class B-1 Base Principal Distribution paid 94,891.38
---------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,972,050.88
REMAINING AVAILABLE FUNDS 292,297.12
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 4,066,942.26
Class B-2 Base Principal Distribution due 94,891.38
Class B-2 Base Principal Distribution paid 94,891.38
---------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 3,972,050.88
REMAINING AVAILABLE FUNDS 197,405.74
</TABLE>
Page 6
<PAGE> 31
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
---------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 197,405.74
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 23,723.83
Class B-3 Note Interest paid 23,723.83
---------------
Class B-3 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 173,681.91
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 4,066,942.26
Class B-3 Base Principal Distribution due 94,891.38
Class B-3 Base Principal Distribution paid 94,891.38
---------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 3,972,050.88
REMAINING AVAILABLE FUNDS 78,790.53
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(a)(ii)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
---------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 78,790.53
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
---------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 78,790.53
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
---------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 78,790.53
DIFFERENCE BETWEEN EXCESS OF ADCPB OVER ENDING NOTE BALANCES AND FLOOR 94,891.38
AMOUNT PAYABLE TO RESIDUAL HOLDER --
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 78,790.53
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 78,790.53
Adjusted Principal Distribution Sharing Ratio 93.878%
---------------
Additional Principal Distribution to Class A 73,966.62
Class A Note Principal Balance after payment above 182,714,340.43
---------------
Class A additional Principal Distribution Amount paid 73,966.62
---------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above 7,470,340.43
Class A-1 additional Principal Distribution Amount paid 73,966.62
---------------
</TABLE>
Page 7
<PAGE> 32
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date 7,396,373.81
---------------
Remaining Class A additional Principal Distribution Amount --
---------------
Class A-2 Note Principal Balance after payment above 85,479,000.00
Class A-2 additional Principal Distribution Amount paid --
---------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A additional Principal Distribution Amount --
---------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
---------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
---------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
---------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 78,790.53
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-1 1,607.97
Class B-1 Note Principal Balance after payment above 3,972,050.88
Class B-1 additional Principal Distribution paid 1,607.97
---------------
Class B-1 Note Principal Balance after distribution on Payment Date 3,970,442.91
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 78,790.53
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-2 1,607.97
Class B-2 Note Principal Balance after payment above 3,972,050.88
Class B-2 additional Principal Distribution paid 1,607.97
---------------
Class B-2 Note Principal Balance after distribution on Payment Date 3,970,442.91
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 78,790.53
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-3 1,607.97
Class B-3 Note Principal Balance after payment above 3,972,050.88
Class B-3 additional Principal Distribution paid 1,607.97
---------------
Class B-3 Note Principal Balance after distribution on Payment Date 3,970,442.91
</TABLE>
Page 8
<PAGE> 33
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 203,807,196.69
ADCPB, end of Collection Period 199,062,627.55
--------------
Base Principal Amount 4,744,569.14
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,649,305.00
Servicing Advances collected during the current Collection Period 2,077,965.59
--------------
Unreimbursed Servicing Advances as of current Determination Date 571,339.41
</TABLE>
<TABLE>
<CAPTION>
CALCULATION OF INTEREST DUE
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
- --------- -------------- --------- ------------ --------- --------------
<S> <C> <C> <C> <C>
Class A-1 11,835,344.04 5.7325% 52,769.20 -- 52,769.20
Class A-2 85,479,000.00 6.3500% 452,326.38 -- 452,326.38
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 4,066,942.26 6.8850% 23,334.08 -- 23,334.08
Class B-2 4,066,942.26 6.4500% 21,859.81 -- 21,859.81
Class B-3 4,066,942.26 7.0000% 23,723.83 -- 23,723.83
-------------- ------------ --------- --------------
199,280,170.83 6.3169% 1,049,019.76 -- 1,049,019.76
</TABLE>
<TABLE>
<CAPTION>
CALCULATION OF PRINCIPAL DUE
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
- --------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,365,003.61 -- 4,365,003.61
Class B-1 2.0% 94,891.38 -- 94,891.38
Class B-2 2.0% 94,891.38 -- 94,891.38
Class B-3 2.0% 94,891.38 -- 94,891.38
------------ ------------ ------------
4,649,677.75 -- 4,649,677.75
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 203,807,196.69
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 84,919.67
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 84,919.67
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 203,807,196.69
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
---------------
Back-up Servicer Fee due Current Period 3,396.79
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
---------------
Back-up Servicer Fee due 3,396.79
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 187,079,344.04
Premium Rate 0.140%
One-twelfth 1/12
---------------
</TABLE>
Page 9
<PAGE> 34
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 21,825.92
Prior Premium Amount arrearage --
---------------
Total Premium Amount due 21,825.92
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
---------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as of Deter. Date) 4,066,942.26
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
---------------
Letter of Credit Bank Fee due Current Period 1,864.02
Letter of Credit Bank Fee arrearage --
---------------
Total Letter of Credit Bank Fee arrearage due 1,864.02
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
---------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
---------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
---------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
---------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
---------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 199,062,627.55
Aggregate Note Balances prior to any payment on current Payment Date 199,280,170.83
Payments on payment date prior to application of Floor Amount, if any
Class A 4,365,003.61
Class B-1 94,891.38
Class B-2 94,891.38
Class B-3 94,891.38
---------------
Total Base Principal Amount distributions on current payment date 4,649,677.75
---------------
Aggregate Note Balance after payment of Base Principal Amount 194,630,493.08
---------------
Excess of ADCPB over Ending Note Balances 4,432,134.47
Difference between excess and floor 94,891.38
</TABLE>
Page 10
<PAGE> 35
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED MARCH 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest
required to be made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an amount equal
to the principal duNoon the Outstanding Notes as of such Payment Date to the
extent that sufficient Available Funds are on deposit in the Collection Account
of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
--------- ------------------------------------------------------------------------- ------
<S> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn
or dismissed within 60 days No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 36
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED MARCH 1, 1998
<TABLE>
<CAPTION>
Gross Charge Event Calculation:
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 0.34%
Gross Charge Off Ratio Prior Period 0.55%
Gross Charge Off Ratio Second Prior Period 1.43%
------
Average of Gross Charge Off Ratio for Three Periods 0.77%
</TABLE>
<TABLE>
<CAPTION>
Gross Charge Off Ratio:
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- -------------- -----
<S> <C> <C> <C> <C> <C>
Current Period 305,104.75 249,119.84 55,984.91 199,062,627.55 0.34%
Prior Period 300,270.09 207,479.65 92,790.44 203,807,196.69 0.55%
Second Prior Period 518,690.07 270,979.53 247,710.54 208,286,118.17 1.43%
</TABLE>
<TABLE>
<CAPTION>
Delinquency Event Calculation:
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 3.86%
Delinquency Trigger Ratio Prior Period 3.23%
Delinquency Trigger Ratio Second Prior Period 2.42%
-------
Average of Delinquency Trigger Ratios 3.17%
</TABLE>
<TABLE>
<CAPTION>
Delinquency Trigger Ratio:
A B
ADCPB of ADCPB of A/B
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------------ --------------- -------------------
<S> <C> <C> <C>
Current Period 7,687,003.40 199,062,627.56 3.86%
Prior Period 6,584,138.20 203,807,196.69 3.23%
Second Prior Period 5,033,430.40 208,286,118.17 2.42%
</TABLE>
Page 12
<PAGE> 37
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,482,115.95
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account -
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account -
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 558,442.27
(b) Servicer Fees from current and prior Collection Period 82,942.76
(c) Servicing Charges inadvertantly deposited in Collection Account -
(iv) Current and unpaid Back-up Servicing Fees 3,317.71
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 21,308.04
Adjustment to prior month premium amount -
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) -
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 36,510.86
Adjustment to prior month Class A-1 Note Interest -
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 22,780.42
(x) Letter of Credit Bank Fee and unpaid amounts 1,819.79
(xi) Class B-2 Note Interest 21,341.13
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount 4,489,529.56
Class A-2 Principal Distribution Amount -
Class A-3 Principal Distribution Amount -
Class A-4 Principal Distribution Amount -
(xiii) Note Insuer Reimbursement Amount -
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 97,598.47
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 97,598.47
(xvi) Letter of Credit Reimbursement Amount -
(xvii) Class B-3 Note Interest 23,160.92
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 97,598.47
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) -
(xx) Letter of Credit Additional Reimbursement Amount -
(xxi) Other Amounts Due Servicer under Servicing Agreement -
</TABLE>
Page 1
<PAGE> 38
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder -
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount 509.36
Class A-2 additional Principal Distribution Amount -
Class A-3 additional Principal Distribution Amount -
Class A-4 additional Principal Distribution Amount -
Class B-1 additional Principal Distribution Amount 11.07
Class B-2 additional Principal Distribution Amount 11.07
Class B-3 additional Principal Distribution Amount 11.07
</TABLE>
Reviewed By:
-----------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 39
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
----- -------------- -------------- ------------ ------------ ------------ -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 7,396,373.81 4,489,529.56 509.36 4,490,038.92 2,906,334.89 0.0880761
Class A-2 85,479,000.00 85,479,000.00 - - - 85,479,000.00 1.0000000
Class A-3 51,527,000.00 51,527,000.00 - - - 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 - - - 38,238,000.00 1.0000000
-------------- -------------- ------------ ------------ ------------ -------------- ---------
Total Class A 208,242,000.00 182,640,373.81 4,489,529.56 509.36 4,490,038.92 178,150,334.89 0.8554967
Class B-1 4,527,000.00 3,970,442.91 97,598.47 11.07 97,609.54 3,872,833.37 0.8554967
Class B-2 4,527,000.00 3,970,442.91 97,598.47 11.07 97,609.54 3,872,833.37 0.8554967
Class B-3 4,527,000.00 3,970,442.91 97,598.47 11.07 97,609.54 3,872,833.37 0.8554967
-------------- -------------- ------------ ------------ ------------ -------------- ---------
Total 221,823,000.00 194,551,702.55 4,782,324.97 542.58 4,782,867.55 189,768,835.00
ADCPB at end of Collection period 194,182,704.11
--------------
Excess of ending ADCPB over ending note balance 4,413,869.11
Floor 4,527,025.86
--------------
Difference (113,156.75)
</TABLE>
Page 3
<PAGE> 40
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of March 31, 1998 3,185,814.98
Investment earnings on amounts in Collection Account 9,049.42
Payments due Collection Account from last 3 business days of Collection Period 1,037,526.19
Additional contribution for terminated trade-ups and rebooked leases 122,117.47
Servicer Advance on current Determination Date 2,127,607.89
--------------
Available Funds on Payment Date 6,482,115.95
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 6,482,115.95
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 6,482,115.95
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 558,442.27
Unreimbursed Servicer Advances paid 558,442.27
--------------
Unreimbursed Servicer Advances remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,923,673.68
SERVICER FEES
Servicer Fees due 82,942.76
Servicer Fees paid 82,942.76
--------------
Servicer Fees remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,840,730.92
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 5,840,730.92
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,317.71
Back-up Servicer Fees paid 3,317.71
--------------
Back-up Servicer Fees remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,837,413.21
PREMIUM AMOUNT
Premium Amount due 21,308.04
Premium Amount paid 21,308.04
--------------
Premium Amount remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,816,105.16
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
--------------
Indenture Trustee Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,815,813.49
</TABLE>
Page 4
<PAGE> 41
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(A)(II)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 5,815,813.49
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 36,510.86
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
--------------
Total Class A Interest due 963,843.70
--------------
REMAINING AVAILABLE FUNDS 4,851,969.80
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 22,780.42
Class B-1 Note Interest paid 22,780.42
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,829,189.38
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,819.79
Letter of Credit Bank Fee paid 1,819.79
--------------
Letter of Credit Bank Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,827,369.59
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 21,341.13
Class B-2 Note Interest paid 21,341.13
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,806,028.46
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,489,529.56
Class A Note Principal Balance as of preceding Payment Date 182,640,373.81
--------------
Class A Base Principal Distribution Amount paid 4,489,529.56
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 7,396,373.81
Class A-1 Base Principal Distribution Amount paid 4,489,529.56
--------------
Class A-1 Note Principal Balance after distribution on Payment Date 2,906,844.25
--------------
Remaining Class A Base Principal Distribution Amount --
--------------
</TABLE>
Page 5
<PAGE> 42
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 85,479,000.00
Class A-2 Base Principal Distribution Amount paid --
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 316,498.90
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
--------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 316,498.90
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 3,970,442.91
Class B-1 Base Principal Distribution due 97,598.47
Class B-1 Base Principal Distribution paid 97,598.47
--------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,872,844.44
REMAINING AVAILABLE FUNDS 218,900.43
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 3,970,442.91
Class B-2 Base Principal Distribution due 97,598.47
Class B-2 Base Principal Distribution paid 97,598.47
--------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 3,872,844.44
REMAINING AVAILABLE FUNDS 121,301.96
</TABLE>
Page 6
<PAGE> 43
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
--------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 121,301.96
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 23,160.92
Class B-3 Note Interest paid 23,160.92
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 98,141.04
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 3,970,442.91
Class B-3 Base Principal Distribution due 97,598.47
Class B-3 Base Principal Distribution paid 97,598.47
--------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 3,872,844.44
REMAINING AVAILABLE FUNDS 542.58
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(a)(ii)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
--------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 542.58
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
--------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 542.58
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
--------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 542.58
DIFFERENCE BETWEEN EXCESS OF ADCPB OVER ENDING NOTE BALANCES AND FLOOR 113,699.33
AMOUNT PAYABLE TO RESIDUAL HOLDER --
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 542.58
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 542.58
Adjusted Principal Distribution Sharing Ratio 93.878%
--------------
Additional Principal Distribution to Class A 509.36
Class A Note Principal Balance after payment above 178,150,844.25
--------------
Class A additional Principal Distribution Amount paid 509.36
--------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above 2,906,844.25
Class A-1 additional Principal Distribution Amount paid 509.36
--------------
</TABLE>
Page 7
<PAGE> 44
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date 2,906,334.89
--------------
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-2 Note Principal Balance after payment above 85,479,000.00
Class A-2 additional Principal Distribution Amount paid --
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 85,479,000.00
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 542.58
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-1 11.07
Class B-1 Note Principal Balance after payment above 3,872,844.44
Class B-1 additional Principal Distribution paid 11.07
--------------
Class B-1 Note Principal Balance after distribution on Payment Date 3,872,833.37
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 542.58
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-2 11.07
Class B-2 Note Principal Balance after payment above 3,872,844.44
Class B-2 additional Principal Distribution paid 11.07
--------------
Class B-2 Note Principal Balance after distribution on Payment Date 3,872,833.37
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 542.58
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-3 11.07
Class B-3 Note Principal Balance after payment above 3,872,844.44
Class B-3 additional Principal Distribution paid 11.07
--------------
Class B-3 Note Principal Balance after distribution on Payment Date 3,872,833.37
</TABLE>
Page 8
<PAGE> 45
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 199,062,627.55
ADCPB, end of Collection Period 194,182,704.11
--------------
Base Principal Amount 4,879,923.44
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,945,866.54
Servicing Advances collected during the current Collection Period 2,387,424.27
--------------
Unreimbursed Servicing Advances as of current Determination Date 558,442.27
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
----- -------------- ---------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Class A-1 7,396,373.81 5.7325% 36,510.86 -- 36,510.86
Class A-2 85,479,000.00 6.3500% 452,326.38 -- 452,326.38
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 3,970,442.91 6.8850% 22,780.42 -- 22,780.42
Class B-2 3,970,442.91 6.4500% 21,341.13 -- 21,341.13
Class B-3 3,970,442.91 7.0000% 23,160.92 -- 23,160.92
-------------- --------------- ----------- ------------
194,551,702.55 6.3600% 1,031,126.16 -- 1,031,126.16
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
------- ----------- --------- --------- ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,489,529.56 -- 4,489,529.56
Class B-1 2.0% 97,598.47 -- 97,598.47
Class B-2 2.0% 97,598.47 -- 97,598.47
Class B-3 2.0% 97,598.47 -- 97,598.47
------------ ------------ ------------
4,782,324.97 -- 4,782,324.97
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 199,062,627.55
Servicer Fee Rate 0.500%
One-twelfth 1/12
--------------
Servicer Fee due current period 82,942.76
Prior Servicer Fee arrearage --
--------------
Servicer Fee due 82,942.76
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 199,062,627.55
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
--------------
Back-up Servicer Fee due Current Period 3,317.71
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
--------------
Back-up Servicer Fee due 3,317.71
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 182,640,373.81
Premium Rate 0.140%
One-twelfth 1/12
--------------
</TABLE>
Page 9
<PAGE> 46
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED APRIL 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 21,308.04
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 21,308.04
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as
of Deter. Date) 3,970,442.91
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
--------------
Letter of Credit Bank Fee due Current Period 1,819.79
Letter of Credit Bank Fee arrearage --
--------------
Total Letter of Credit Bank Fee arrearage due 1,819.79
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
--------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
--------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
--------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 194,182,704.11
Aggregate Note Balances prior to any payment on current Payment Date 194,551,702.55
Payments on payment date prior to application of Floor Amount, if any
Class A 4,489,529.56
Class B-1 97,598.47
Class B-2 97,598.47
Class B-3 97,598.47
--------------
Total Base Principal Amount distributions on current payment date 4,782,324.97
--------------
Aggregate Note Balance after payment of Base Principal Amount 189,769,377.58
--------------
Excess of ADCPB over Ending Note Balances 4,413,326.53
Difference between excess and floor 113,699.33
</TABLE>
Page 10
<PAGE> 47
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED APRIL 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest required to be
made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an amount equal to the
principal duNoon the Outstanding Notes as of such Payment Date to the extent that
sufficient Available Funds are on deposit in the Collection Account of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
---------- ------ ------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn or dismissed within No
days
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 48
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED APRIL 1, 1998
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 1.65%
Gross Charge Off Ratio Prior Period 0.34%
Gross Charge Off Ratio Second Prior Period 0.55%
----
Average of Gross Charge Off Ratio for Three Periods 0.84%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- -------------- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 791,893.43 525,525.68 266,367.75 194,182,704.11 1.65%
Prior Period 305,104.75 249,119.84 55,984.91 199,062,627.55 0.34%
Second Prior Period 300,270.09 207,479.65 92,790.44 203,807,196.69 0.55%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 3.21%
Delinquency Trigger Ratio Prior Period 3.86%
Delinquency Trigger Ratio Second Prior Period 3.23%
----
Average of Delinquency Trigger Ratios 3.43%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
- - ---
ADCPB of ADCPB of
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------------ --------------- -------------------
<S> <C> <C> <C>
Current Period 6,237,046.04 194,211,690.36 3.21%
Prior Period 7,687,003.40 199,062,627.56 3.86%
Second Prior Period 6,584,138.20 203,807,196.69 3.23%
</TABLE>
Page 12
<PAGE> 49
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,984,857.25
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account --
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 574,109.18
(b) Servicer Fees from current and prior Collection Period 80,909.46
(c) Servicing Charges inadvertantly deposited in Collection Account --
(iv) Current and unpaid Back-up Servicing Fees 3,236.38
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 20,784.21
Adjustment to prior month premium amount --
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) --
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest 14,346.60
Adjustment to prior month Class A-1 Note Interest --
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 22,220.38
(x) Letter of Credit Bank Fee and unpaid amounts 1,775.05
(xi) Class B-2 Note Interest 20,816.48
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount 2,906,334.89
Class A-2 Principal Distribution Amount 1,980,998.94
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xiii) Note Insuer Reimbursement Amount --
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 106,246.39
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 106,246.39
(xvi) Letter of Credit Reimbursement Amount --
(xvii) Class B-3 Note Interest 22,591.53
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 106,246.39
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) --
(xx) Letter of Credit Additional Reimbursement Amount --
(xxi) Other Amounts Due Servicer under Servicing Agreement --
</TABLE>
Page 1
<PAGE> 50
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder --
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount --
Class A-2 additional Principal Distribution Amount 84,837.61
Class A-3 additional Principal Distribution Amount --
Class A-4 additional Principal Distribution Amount --
Class B-1 additional Principal Distribution Amount 1,844.30
Class B-2 additional Principal Distribution Amount 1,844.30
Class B-3 additional Principal Distribution Amount 1,844.30
</TABLE>
Reviewed By:
----------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 51
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
- ------------- -------------- -------------- ------------ ------------ ------------ -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 2,906,334.89 2,906,334.89 -- 2,906,334.89 -- 0.0000000
Class A-2 85,479,000.00 85,479,000.00 1,980,998.94 84,837.61 2,065,836.54 83,413,163.46 0.9758322
Class A-3 51,527,000.00 51,527,000.00 -- -- -- 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 -- -- -- 38,238,000.00 1.0000000
- ------------- -------------- -------------- ------------ ------------ ------------ -------------- ---------
Total Class A 208,242,000.00 178,150,334.89 4,887,333.83 84,837.61 4,972,171.44 173,178,163.46 0.8316198
Class B-1 4,527,000.00 3,872,833.37 106,246.39 1,844.30 108,090.68 3,764,742.69 0.8316198
Class B-2 4,527,000.00 3,872,833.37 106,246.39 1,844.30 108,090.68 3,764,742.69 0.8316198
Class B-3 4,527,000.00 3,872,833.37 106,246.39 1,844.30 108,090.68 3,764,742.69 0.8316198
- ------------- -------------- -------------- ------------ ------------ ------------ -------------- ---------
Total 221,823,000.00 189,768,835.00 5,206,072.99 90,370.50 5,296,443.49 184,472,391.52
ADCPB at end of Collection Period 188,870,384.73
--------------
Excess of ending ADCPB over ending note balance 4,397,993.21
Floor 4,527,025.86
--------------
Difference (129,032.64)
</TABLE>
Page 3
<PAGE> 52
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of April 30, 1998 3,918,193.07
Investment earnings on amounts in Collection Account 11,865.28
Payments due Collection Account from last 3 business days of Collection Period 939,458.10
Additional contribution for terminated trade-ups and rebooked leases 37,910.97
Servicer Advance on current Determination Date 2,077,429.83
---------------
Available Funds on Payment Date 6,984,857.25
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,984,857.25
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,984,857.25
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 574,109.18
Unreimbursed Servicer Advances paid 574,109.18
---------------
Unreimbursed Servicer Advances remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 6,410,748.07
SERVICER FEES
Servicer Fees due 80,909.46
Servicer Fees paid 80,909.46
---------------
Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 6,329,838.61
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,329,838.61
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,236.38
Back-up Servicer Fees paid 3,236.38
---------------
Back-up Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 6,326,602.23
PREMIUM AMOUNT
Premium Amount due 20,784.21
Premium Amount paid 20,784.21
---------------
Premium Amount remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 6,305,818.03
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
---------------
Indenture Trustee Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 6,305,526.36
</TABLE>
Page 4
<PAGE> 53
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(A)(II)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
---------------
Total Indenture Trustee Expenses paid --
---------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 6,305,526.36
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest 14,346.60
Class A-2 Note Interest 452,326.38
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
---------------
Total Class A Interest due 941,679.43
---------------
REMAINING AVAILABLE FUNDS 5,363,846.93
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 22,220.38
Class B-1 Note Interest paid 22,220.38
---------------
Class B-1 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,341,626.54
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,775.05
Letter of Credit Bank Fee paid 1,775.05
---------------
Letter of Credit Bank Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,339,851.49
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 20,816.48
Class B-2 Note Interest paid 20,816.48
---------------
Class B-2 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,319,035.02
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,887,333.83
Class A Note Principal Balance as of preceding Payment Date 178,150,334.89
---------------
Class A Base Principal Distribution Amount paid 4,887,333.83
---------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date 2,906,334.89
Class A-1 Base Principal Distribution Amount paid 2,906,334.89
---------------
Class A-1 Note Principal Balance after distribution on Payment Date --
---------------
REMAINING CLASS A BASE PRINCIPAL DISTRIBUTION AMOUNT 1,980,998.94
---------------
</TABLE>
Page 5
<PAGE> 54
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 85,479,000.00
Class A-2 Base Principal Distribution Amount paid 1,980,998.94
---------------
Class A-2 Note Principal Balance after distribution on Payment Date 83,498,001.06
Remaining Class A Base Principal Distribution Amount --
---------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
---------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
---------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
---------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 431,701.19
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
---------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 431,701.19
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 3,872,833.37
Class B-1 Base Principal Distribution due 106,246.39
Class B-1 Base Principal Distribution paid 106,246.39
---------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,766,586.98
REMAINING AVAILABLE FUNDS 325,454.80
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 3,872,833.37
Class B-2 Base Principal Distribution due 106,246.39
Class B-2 Base Principal Distribution paid 106,246.39
---------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 3,766,586.98
REMAINING AVAILABLE FUNDS 219,208.41
</TABLE>
Page 6
<PAGE> 55
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
---------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 219,208.41
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 22,591.53
Class B-3 Note Interest paid 22,591.53
---------------
Class B-3 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 196,616.88
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 3,872,833.37
Class B-3 Base Principal Distribution due 106,246.39
Class B-3 Base Principal Distribution paid 106,246.39
---------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 3,766,586.98
REMAINING AVAILABLE FUNDS 90,370.50
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(A)(II)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
---------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 90,370.50
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
---------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 90,370.50
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
---------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 90,370.50
DIFFERENCE BETWEEN EXCESS OF ADCPB OVER ENDING NOTE BALANCES AND FLOOR 219,403.14
AMOUNT PAYABLE TO RESIDUAL HOLDER --
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 90,370.50
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 90,370.50
Adjusted Principal Distribution Sharing Ratio 93.878%
---------------
Additional Principal Distribution to Class A 84,837.61
Class A Note Principal Balance after payment above 175,244,000.00
---------------
Class A additional Principal Distribution Amount paid 84,837.61
---------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above --
Class A-1 additional Principal Distribution Amount paid --
---------------
</TABLE>
Page 7
<PAGE> 56
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date --
---------------
Remaining Class A additional Principal Distribution Amount 84,837.61
---------------
Class A-2 Note Principal Balance after payment above 83,498,001.06
Class A-2 additional Principal Distribution Amount paid 84,837.61
---------------
Class A-2 Note Principal Balance after distribution on Payment Date 83,413,163.46
Remaining Class A additional Principal Distribution Amount --
---------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
---------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
---------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
---------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 90,370.50
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-1 1,844.30
Class B-1 Note Principal Balance after payment above 3,766,586.98
Class B-1 additional Principal Distribution paid 1,844.30
---------------
Class B-1 Note Principal Balance after distribution on Payment Date 3,764,742.69
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 90,370.50
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-2 1,844.30
Class B-2 Note Principal Balance after payment above 3,766,586.98
Class B-2 additional Principal Distribution paid 1,844.30
---------------
Class B-2 Note Principal Balance after distribution on Payment Date 3,764,742.69
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 90,370.50
Adjusted Principal Distribution Sharing Ratio 2.041%
---------------
Additional Principal Distribution to Class B-3 1,844.30
Class B-3 Note Principal Balance after payment above 3,766,586.98
Class B-3 additional Principal Distribution paid 1,844.30
---------------
Class B-3 Note Principal Balance after distribution on Payment Date 3,764,742.69
</TABLE>
Page 8
<PAGE> 57
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 194,182,704.11
ADCPB, end of Collection Period 188,870,384.73
--------------
Base Principal Amount 5,312,319.38
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,127,607.89
Servicing Advances collected during the current Collection Period 1,553,498.71
------------
Unreimbursed Servicing Advances as of current Determination Date 574,109.18
</TABLE>
<TABLE>
<CAPTION>
CALCULATION OF INTEREST DUE
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
- --------- ------------- --------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C>
Class A-1 2,906,334.89 5.7325% 14,346.60 -- 14,346.60
Class A-2 85,479,000.00 6.3500% 452,326.38 -- 452,326.38
Class A-3 1,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 3,872,833.37 6.8850% 22,220.38 -- 22,220.38
Class B-2 3,872,833.37 6.4500% 20,816.48 -- 20,816.48
Class B-3 3,872,833.37 7.0000% 22,591.53 -- 22,591.53
------------- -------- ------------
189,768,835.00 6.3697% 1,007,307.82 -- 1,007,307.82
</TABLE>
<TABLE>
<CAPTION>
CALCULATION OF PRINCIPAL DUE
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
- --------- ------------ ------------ --------- ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,887,333.83 -- 4,887,333.83
Class B-1 2.0% 106,246.39 -- 106,246.39
Class B-2 2.0% 106,246.39 -- 106,246.39
Class B-3 2.0% 106,246.39 -- 106,246.39
------------ --------- ------------
5,206,072.99 -- 5,206,072.99
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 194,182,704.11
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 80,909.46
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 80,909.46
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 194,182,704.11
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
---------------
Back-up Servicer Fee due Current Period 3,236.38
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
---------------
Back-up Servicer Fee due 3,236.38
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 178,150,334.89
Premium Rate 0.140%
One-twelfth 1/12
---------------
</TABLE>
Page 9
<PAGE> 58
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
Premium Amount due Current Period 20,784.21
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 20,784.21
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as of Deter. Date) 3,872,833.37
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
--------------
Letter of Credit Bank Fee due Current Period 1,775.05
Letter of Credit Bank Fee arrearage --
--------------
Total Letter of Credit Bank Fee arrearage due 1,775.05
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
--------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
--------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
--------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 188,870,384.73
Aggregate Note Balances prior to any payment on current Payment Date 189,768,835.00
Payments on payment date prior to application of Floor Amount, if any
Class A 4,887,333.83
Class B-1 106,246.39
Class B-2 106,246.39
Class B-3 106,246.39
--------------
Total Base Principal Amount distributions on current payment date 5,206,072.99
--------------
Aggregate Note Balance after payment of Base Principal Amount 184,562,762.01
--------------
Excess of ADCPB over Ending Note Balances 4,307,622.72
Difference between excess and floor 219,403.14
</TABLE>
Page 10
<PAGE> 59
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED MAY 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest
required to be made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an amount equal
to the principal due on the Outstanding Notes as of such Payment Date to the
extent that sufficient Available Funds are on deposit in the Collection Account
of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
- --------- -------------------------------------------------------------------------- ------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn
or dismissed within 60 days No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 60
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED MAY 1, 1998
<TABLE>
<CAPTION>
Gross Charge Event Calculation:
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 0.37%
Gross Charge Off Ratio Prior Period 1.65%
Gross Charge Off Ratio Second Prior Period 0.34%
Average of Gross Charge Off Ratio for Three Periods 0.79%
Maximum Allowed 2.50%
</TABLE>
<TABLE>
<CAPTION>
Gross Charge Off Ratio:
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- -------------- -----
<S> <C> <C> <C> <C> <C>
Current Period 539,561.02 481,091.25 58,469.77 188,870,384.73 0.37%
Prior Period 791,893.43 525,525.68 266,367.75 194,182,704.11 1.65%
Second Prior Period 305,104.75 249,119.84 55,984.91 199,062,627.55 0.34%
</TABLE>
<TABLE>
<CAPTION>
Delinquency Event Calculation: Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 3.21%
Delinquency Trigger Ratio Prior Period 3.21%
Delinquency Trigger Ratio Second Prior Period 3.86%
Average of Delinquency Trigger Ratios 3.43%
Maximum Allowed 7.50%
</TABLE>
<TABLE>
<CAPTION>
Delinquency Trigger Ratio:
A B
ADCPB of ADCPB of A/B
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------------ --------------- -------------------
<S> <C> <C> <C>
Current Period 6,070,704.82 188,952,691.55 3.21%
Prior Period 6,237,046.04 194,211,690.36 3.21%
Second Prior Period 7,687,003.40 199,062,627.56 3.86%
</TABLE>
Page 12
<PAGE> 61
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,637,364.26
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account -
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account -
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 592,323.16
(b) Servicer Fees from current and prior Collection Period 78,695.99
(c) Servicing Charges inadvertantly deposited in Collection Account -
(iv) Current and unpaid Back-up Servicing Fees 3,147.84
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 20,204.12
Adjustment to prior month premium amount -
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) -
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest -
Adjustment to prior month Class A-1 Note Interest -
Class A-2 Note Interest 441,394.66
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 21,600.21
(x) Letter of Credit Bank Fee and unpaid amounts 1,725.51
(xi) Class B-2 Note Interest 20,235.49
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount -
Class A-2 Principal Distribution Amount 4,655,879.35
Class A-3 Principal Distribution Amount -
Class A-4 Principal Distribution Amount -
(xiii) Note Insuer Reimbursement Amount -
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 101,214.77
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 101,214.77
(xvi) Letter of Credit Reimbursement Amount -
(xvii) Class B-3 Note Interest 21,961.00
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 101,214.77
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) -
(xx) Letter of Credit Additional Reimbursement Amount -
(xxi) Other Amounts Due Servicer under Servicing Agreement -
</TABLE>
Page 1
<PAGE> 62
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder -
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount -
Class A-2 additional Principal Distribution Amount 1,177.69
Class A-3 additional Principal Distribution Amount -
Class A-4 additional Principal Distribution Amount -
Class B-1 additional Principal Distribution Amount 25.60
Class B-2 additional Principal Distribution Amount 25.60
Class B-3 additional Principal Distribution Amount 25.60
</TABLE>
Reviewed By:
--------------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 63
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
----- -------------- -------------- -------------- ------------ ------------ -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 - - - - - 0.0000000
Class A-2 85,479,000.00 83,413,163.46 4,655,879.35 1,177.69 4,657,057.04 78,756,106.41 0.9213503
Class A-3 51,527,000.00 51,527,000.00 - - - 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 - - 38,238,000.00 1.0000000
-------------- -------------- ------------ -------- ------------ -------------- ---------
Total Class A 208,242,000.00 173,178,163.46 4,655,879.35 1,177.69 4,657,057.04 168,521,106.41 0.8092561
Class B-1 4,527,000.00 3,764,742.69 101,214.77 25.60 101,240.37 3,663,502.32 0.8092561
Class B-2 4,527,000.00 3,764,742.69 101,214.77 25.60 101,240.37 3,663,502.32 0.8092561
Class B-3 4,527,000.00 3,764,742.69 101,214.77 25.60 101,240.37 3,663,502.32 0.8092561
-------------- -------------- ------------ -------- ------------ -------------- ---------
Total 221,823,000.00 184,472,391.52 4,959,523.65 1,254.50 4,960,778.15 179,511,613.36
ADCPB at end of Collection Period 183,809,646.31
--------------
Excess of ending ADCPB over ending note balance 4,298,032.95
Floor 4,527,025.86
--------------
Difference (228,992.91)
</TABLE>
Page 3
<PAGE> 64
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of May 31, 1998 3,429,047.69
Investment earnings on amounts in Collection Account 12,832.48
Payments due Collection Account from last 3 business days of Collection Period 783,232.53
Additional contribution for terminated trade-ups and rebooked leases 21,598.70
Servicer Advance on current Determination Date 2,390,652.86
--------------
Available Funds on Payment Date 6,637,364.26
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 6,637,364.26
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 6,637,364.26
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 592,323.16
Unreimbursed Servicer Advances paid 592,323.16
--------------
Unreimbursed Servicer Advances remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 6,045,041.10
SERVICER FEES
Servicer Fees due 78,695.99
Servicer Fees paid 78,695.99
--------------
Servicer Fees remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,966,345.11
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
--------------
REMAINING AVAILABLE FUNDS 5,966,345.11
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,147.84
Back-up Servicer Fees paid 3,147.84
--------------
Back-up Servicer Fees remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,963,197.27
PREMIUM AMOUNT
Premium Amount due 20,204.12
Premium Amount paid 20,204.12
--------------
Premium Amount remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,942,993.15
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
--------------
Indenture Trustee Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,942,701.48
</TABLE>
Page 4
<PAGE> 65
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(A)(II)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
--------------
Total Indenture Trustee Expenses paid --
--------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 5,942,701.48
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest --
Class A-2 Note Interest 441,394.66
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
--------------
Total Class A Interest due 916,401.11
--------------
REMAINING AVAILABLE FUNDS 5,026,300.36
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 21,600.21
Class B-1 Note Interest paid 21,600.21
--------------
Class B-1 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,004,700.15
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,725.51
Letter of Credit Bank Fee paid 1,725.51
--------------
Letter of Credit Bank Fee remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 5,002,974.64
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 20,235.49
Class B-2 Note Interest paid 20,235.49
--------------
Class B-2 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 4,982,739.15
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,655,879.35
Class A Note Principal Balance as of preceding Payment Date 173,178,163.46
--------------
Class A Base Principal Distribution Amount paid 4,655,879.35
--------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date --
Class A-1 Base Principal Distribution Amount paid --
--------------
Class A-1 Note Principal Balance after distribution on Payment Date --
--------------
Remaining Class A Base Principal Distribution Amount 4,655,879.35
--------------
</TABLE>
Page 5
<PAGE> 66
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 83,413,163.46
Class A-2 Base Principal Distribution Amount paid 4,655,879.35
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 78,757,284.11
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 326,859.80
NOTE INSUER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
--------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 326,859.80
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 3,764,742.69
Class B-1 Base Principal Distribution due 101,214.77
Class B-1 Base Principal Distribution paid 101,214.77
--------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,663,527.92
REMAINING AVAILABLE FUNDS 225,645.04
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 3,764,742.69
Class B-2 Base Principal Distribution due 101,214.77
Class B-2 Base Principal Distribution paid 101,214.77
--------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 3,663,527.92
REMAINING AVAILABLE FUNDS 124,430.27
</TABLE>
Page 6
<PAGE> 67
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
--------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 124,430.27
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 21,961.00
Class B-3 Note Interest paid 21,961.00
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 102,469.27
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 3,764,742.69
Class B-3 Base Principal Distribution due 101,214.77
Class B-3 Base Principal Distribution paid 101,214.77
--------------
Class B-3 Base Principal Distribution remaining unpaid --
Class B-3 Note Principal Balance after distribution on Payment Date 3,663,527.92
REMAINING AVAILABLE FUNDS 1,254.50
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(A)(II)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
--------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 1,254.50
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
--------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 1,254.50
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
--------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS 1,254.50
DIFFERENCE BETWEEN EXCESS OF ADCPB OVER ENDING NOTE BALANCES AND FLOOR 230,247.41
AMOUNT PAYABLE TO RESIDUAL HOLDER --
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS 1,254.50
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 1,254.50
Adjusted Principal Distribution Sharing Ratio 93.878%
--------------
Additional Principal Distribution to Class A 1,177.69
Class A Note Principal Balance after payment above 168,522,284.11
--------------
Class A additional Principal Distribution Amount paid 1,177.69
--------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above --
Class A-1 additional Principal Distribution Amount paid --
--------------
</TABLE>
Page 7
<PAGE> 68
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date --
--------------
Remaining Class A additional Principal Distribution Amount 1,177.69
--------------
Class A-2 Note Principal Balance after payment above 78,757,284.11
Class A-2 additional Principal Distribution Amount paid 1,177.69
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 78,756,106.41
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 1,254.50
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-1 25.60
Class B-1 Note Principal Balance after payment above 3,663,527.92
Class B-1 additional Principal Distribution paid 25.60
--------------
Class B-1 Note Principal Balance after distribution on Payment Date 3,663,502.32
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 1,254.50
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-2 25.60
Class B-2 Note Principal Balance after payment above 3,663,527.92
Class B-2 additional Principal Distribution paid 25.60
--------------
Class B-2 Note Principal Balance after distribution on Payment Date 3,663,502.32
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders 1,254.50
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-3 25.60
Class B-3 Note Principal Balance after payment above 3,663,527.92
Class B-3 additional Principal Distribution paid 25.60
--------------
Class B-3 Note Principal Balance after distribution on Payment Date 3,663,502.32
</TABLE>
Page 8
<PAGE> 69
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 188,870,384.73
ADCPB, end of Collection Period 183,809,646.31
--------------
Base Principal Amount 5,060,738.42
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,077,429.83
Servicing Advances collected during the current Collection Period 1,485,106.67
--------------
Unreimbursed Servicing Advances as of current Determination Date 592,323.16
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
----- -------------- ------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Class A-1 -- 5.7325% -- -- --
Class A-2 83,413,163.46 6.3500% 441,394.66 -- 441,394.66
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 3,764,742.69 6.8850% 21,600.21 -- 21,600.21
Class B-2 3,764,742.69 6.4500% 20,235.49 -- 20,235.49
Class B-3 3,764,742.69 7.0000% 21,961.00 -- 21,961.00
-------------- ---------- ------------ ----------
184,472,391.52 6.3762% 980,197.82 -- 980,197.82
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
----- ----------- --------- --------- ---------
<S> <C> <C> <C> <C>
Class A 92.0% 4,655,879.35 -- 4,655,879.35
Class B-1 2.0% 101,214.77 -- 101,214.77
Class B-2 2.0% 101,214.77 -- 101,214.77
Class B-3 2.0% 101,214.77 -- 101,214.77
------------ ------------ ------------
4,959,523.65 -- 4,959,523.65
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 188,870,384.73
Servicer Fee Rate 0.500%
One-twelfth 1/12
--------------
Servicer Fee due current period 78,695.99
Prior Servicer Fee arrearage --
--------------
Servicer Fee due 78,695.99
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 188,870,384.73
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
--------------
Back-up Servicer Fee due Current Period 3,147.84
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
--------------
Back-up Servicer Fee due 3,147.84
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 173,178,163.46
Premium Rate 0.140%
One-twelfth 1/12
--------------
</TABLE>
Page 9
<PAGE> 70
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED JUNE 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 20,204.12
Prior Premium Amount arrearage --
--------------
Total Premium Amount due 20,204.12
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
--------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as of Deter. Date) 3,764,742.69
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
--------------
Letter of Credit Bank Fee due Current Period 1,725.51
Letter of Credit Bank Fee arrearage --
--------------
Total Letter of Credit Bank Fee arrearage due 1,725.51
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
--------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
--------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
--------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
--------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
--------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 183,809,646.31
Aggregate Note Balances prior to any payment on current Payment Date 184,472,391.52
Payments on payment date prior to application of Floor Amount, if any
Class A 4,655,879.35
Class B-1 101,214.77
Class B-2 101,214.77
Class B-3 101,214.77
--------------
Total Base Principal Amount distributions on current payment date 4,959,523.65
--------------
Aggregate Note Balance after payment of Base Principal Amount 179,512,867.86
--------------
Excess of ADCPB over Ending Note Balances 4,296,778.45
Difference between excess and floor 230,247.41
</TABLE>
Page 10
<PAGE> 71
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED JUNE 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment of Interest required to be
made under the terms of such Notes or the Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date, an amount equal to the
principal dNo on the Outstanding Notes as of such Payment Date to the extent that
sufficient Available Funds are on deposit in the Collection Account of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
------- ----- ------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgement in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn or dismissed
within days No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 72
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED JUNE 1, 1998
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 1.33%
Gross Charge Off Ratio Prior Period 0.37%
Gross Charge Off Ratio Second Prior Period 1.65%
----
Average of Gross Charge Off Ratio for Three Periods 1.12%
Maximum Allowed 2.50%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- ----- ----------------------
<S> <C> <C> <C> <C> <C>
Current Period 558,581.01 355,230.49 203,350.52 183,809,646.31 1.33%
Prior Period 539,561.02 481,091.25 58,469.77 188,870,384.73 0.37%
Second Prior Period 791,893.43 525,525.68 266,367.75 194,182,704.11 1.65%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 3.17%
Delinquency Trigger Ratio Prior Period 3.21%
Delinquency Trigger Ratio Second Prior Period 3.21%
----
Average of Delinquency Trigger Ratios 3.20%
Maximum Allowed 7.50%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B A/B
- - ---
ADCPB of ADCPB of
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------------ --------------- -------------------
<S> <C> <C> <C>
Current Period 5,826,430.47 183,694,357.13 3.17%
Prior Period 6,070,704.82 188,952,691.55 3.21%
Second Prior Period 6,237,046.04 194,211,690.36 3.21%
</TABLE>
Page 12
<PAGE> 73
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<S> <C>
Available Amount to Note Holders: 6,523,710.33
Disbursements from Collection Account: Section 3.04(b) of the Servicing Agreement
(i) Initial Unpaid Amounts inadvertantly deposited in Collection Account --
(ii) Indemnity Payments paid inadvertantly deposited in Collection Account --
(iii) Aggregate of:
(a) Unreimbursed Servicer Advances 569,165.65
(b) Servicer Fees from current and prior Collection Period 76,587.35
(c) Servicing Charges inadvertantly deposited in Collection Account --
(iv) Current and unpaid Back-up Servicing Fees 3,063.49
(v) Premium Amount due on Payment Date and unpaid Premium Amounts 19,660.80
Adjustment to prior month premium amount --
(vi) Indenture Trustee Fee due on Payment Date and unpaid Indenture Trustee Fees 291.67
(vii) Reimbursable Trustee Expenses pre 7.07(a)(ii) --
(viii) Class A-1 through A-4 Note Interest on a pari passu basis:
Class A-1 Note Interest --
Adjustment to prior month Class A-1 Note Interest --
Class A-2 Note Interest 416,751.06
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
(ix) Class B-1 Note Interest 21,019.34
(x) Letter of Credit Bank Fee and unpaid amounts 1,679.11
(xi) Class B-2 Note Interest 19,691.32
(xii) Class A-1 through A-4 Principal Distribution Amount:
Class A-1 Principal Distribution Amount --
Class A-2 Principal Distribution Amount 4,599,458.93
Class A-3 Principal Distribution Amount --
Class A-4 Principal Distribution Amount --
(xiii) Note Insuer Reimbursement Amount --
(xiv) Class B-1 Base Principal Distribution Amount plus Class B-1 Overdue Principal 99,988.24
(xv) Class B-2 Base Principal Distribution Amount plus Class B-2 Overdue Principal 99,988.24
(xvi) Letter of Credit Reimbursement Amount --
(xvii) Class B-3 Note Interest 21,370.43
(xviii) Class B-3 Base Principal Distribution Amount plus Class B-3 Overdue Principal 99,988.24
(xix) Excess Indenture Trustee Expenses over those permitted by Section 7.07(a)(ii) --
(xx) Letter of Credit Additional Reimbursement Amount --
(xxi) Other Amounts Due Servicer under Servicing Agreement --
</TABLE>
Page 1
<PAGE> 74
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PAYMENT SUMMARY
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<S> <C>
(xxii) Remaining Amount to Residual Holder --
Additional Principal Distribution Amount to Noteholders
Class A-1 additional Principal Distribution Amount --
Class A-2 additional Principal Distribution Amount --
Class A-3 additional Principal Distribution Amount --
Class A-4 additional Principal Distribution Amount --
Class B-1 additional Principal Distribution Amount --
Class B-2 additional Principal Distribution Amount --
Class B-3 additional Principal Distribution Amount --
</TABLE>
Reviewed By:
-------------------------------------------
Craig M. Spencer
Senior Vice President and
Chief Accounting Officer
Page 2
<PAGE> 75
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - NOTE BALANCE ROLLFORWARD
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
Initial Beginning Base Additional Total Ending Ending
Principal Principal Principal Principal Principal Principal Certificate
Class Balance Balance Distribution Distribution Distribution Balance Factor
- ------------- -------------- -------------- ------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 32,998,000.00 -- -- -- -- -- 0.0000000
Class A-2 85,479,000.00 78,756,106.41 4,599,458.93 -- 4,599,458.93 74,156,647.48 0.8675423
Class A-3 51,527,000.00 51,527,000.00 -- -- -- 51,527,000.00 1.0000000
Class A-4 38,238,000.00 38,238,000.00 -- -- -- 38,238,000.00 1.0000000
-------------- -------------- ------------ ------------ ------------ -------------- -------------
Total Class A 208,242,000.00 168,521,106.41 4,599,458.93 -- 4,599,458.93 163,921,647.48 0.7871690
Class B-1 4,527,000.00 3,663,502.32 99,988.24 -- 99,988.24 3,563,514.08 0.7871690
Class B-2 4,527,000.00 3,663,502.32 99,988.24 -- 99,988.24 3,563,514.08 0.7871690
Class B-3 4,527,000.00 3,663,502.32 99,988.24 -- 99,988.24 3,563,514.08 0.7871690
-------------- -------------- ------------ ------------ ------------ --------------
Total 221,823,000.00 179,511,613.36 4,899,423.64 -- 4,899,423.64 174,612,189.72
ADCPB at end of Collection Period 178,695,755.00
--------------
Excess of ending ADCPB over ending note balance 4,083,565.28
Floor 4,527,025.86
--------------
Difference (443,460.58)
</TABLE>
Page 3
<PAGE> 76
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
AVAILABLE FUNDS
Collection Account balance, as of June 30, 1998 3,213,354.14
Investment earnings on amounts in Collection Account 11,082.04
Payments due Collection Account from last 3 business days of Collection Period 1,119,566.49
Additional contribution for terminated trade-ups and rebooked leases --
Servicer Advance on current Determination Date 2,179,707.66
---------------
Available Funds on Payment Date 6,523,710.33
INITIAL UNPAID AMOUNTS INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,523,710.33
INDEMNITY PAYMENTS PAID INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 6,523,710.33
UNREIMBURSED SERVICER ADVANCES
Unreimbursed Servicer Advances due 569,165.65
Unreimbursed Servicer Advances paid 569,165.65
---------------
Unreimbursed Servicer Advances remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,954,544.68
SERVICER FEES
Servicer Fees due 76,587.35
Servicer Fees paid 76,587.35
---------------
Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,877,957.33
SERVICER CHARGES INADVERTANTLY DEPOSITED IN COLLECTION ACCOUNT --
---------------
REMAINING AVAILABLE FUNDS 5,877,957.33
BACK-UP SERVICER FEES
Back-up Servicer Fees due 3,063.49
Back-up Servicer Fees paid 3,063.49
---------------
Back-up Servicer Fees remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,874,893.83
PREMIUM AMOUNT
Premium Amount due 19,660.80
Premium Amount paid 19,660.80
---------------
Premium Amount remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,855,233.04
INDENTURE TRUSTEE FEE DUE ON PAYMENT DATE AND UNPAID INDENTURE TRUSTEE FEES
Indenture Trustee Fee due 291.67
Indenture Trustee Fee paid 291.67
---------------
Indenture Trustee Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 5,854,941.37
</TABLE>
Page 4
<PAGE> 77
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
REIMBURSABLE TRUSTEE EXPENSES PER 7.07(A)(II)
Total Indenture Trustee Expenses due --
Cap on Indenture Trustee Expenses per 7.07 (a)(ii) 75,000.00
---------------
Total Indenture Trustee Expenses paid --
---------------
Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS 5,854,941.37
CLASS A-1 THROUGH A-4 NOTE INTEREST ON A PARI PASSU BASIS:
Class A-1 Note Interest --
Class A-2 Note Interest 416,751.06
Class A-3 Note Interest 272,663.71
Class A-4 Note Interest 202,342.75
---------------
Total Class A Interest due 891,757.52
---------------
REMAINING AVAILABLE FUNDS 4,963,183.85
CLASS B-1 NOTE INTEREST
Class B-1 Note Interest due 21,019.34
Class B-1 Note Interest paid 21,019.34
---------------
Class B-1 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,942,164.50
LETTER OF CREDIT BANK FEE AND UNPAID AMOUNTS
Letter of Credit Bank Fee due 1,679.11
Letter of Credit Bank Fee paid 1,679.11
---------------
Letter of Credit Bank Fee remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,940,485.40
CLASS B-2 NOTE INTEREST
Class B-2 Note Interest due 19,691.32
Class B-2 Note Interest paid 19,691.32
---------------
Class B-2 Note Interest remaining unpaid --
---------------
REMAINING AVAILABLE FUNDS 4,920,794.07
CLASS A BASE PRINCIPAL DISTRIBUTION
Class A Base Principal Distribution Amount due 4,599,458.93
Class A Note Principal Balance as of preceding Payment Date 168,521,106.41
---------------
Class A Base Principal Distribution Amount paid 4,599,458.93
---------------
Class A Base Principal Distribution Amount remaining unpaid --
Class A-1 Note Principal Balance as of preceding Payment Date --
Class A-1 Base Principal Distribution Amount paid --
---------------
Class A-1 Note Principal Balance after distribution on Payment Date --
---------------
Remaining Class A Base Principal Distribution Amount 4,599,458.93
---------------
</TABLE>
Page 5
<PAGE> 78
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
Class A-2 Note Principal Balance as of preceding Payment Date 78,756,106.41
Class A-2 Base Principal Distribution Amount paid 4,599,458.93
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 74,156,647.48
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance as of preceding Payment Date 51,527,000.00
Class A-3 Base Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A Base Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance as of preceding Payment Date 38,238,000.00
Class A-4 Base Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
REMAINING AVAILABLE FUNDS 321,335.14
NOTE INSURER REIMBURSEMENT AMOUNT
Note Insuer Reimbursement Amount due --
Note Insuer Reimbursement Amount paid --
--------------
Note Insuer Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 321,335.14
CLASS B-1 BASE PRINCIPAL DISTRIBUTION
Class B-1 Note Principal Balance as of preceding Payment Date 3,663,502.32
Class B-1 Base Principal Distribution due 99,988.24
Class B-1 Base Principal Distribution paid 99,988.24
--------------
Class B-1 Base Principal Distribution remaining unpaid --
Class B-1 Note Principal Balance after distribution on Payment Date 3,563,514.08
REMAINING AVAILABLE FUNDS 221,346.91
CLASS B-2 BASE PRINCIPAL DISTRIBUTION
Class B-2 Note Principal Balance as of preceding Payment Date 3,663,502.32
Class B-2 Base Principal Distribution due 99,988.24
Class B-2 Base Principal Distribution paid 99,988.24
--------------
Class B-2 Base Principal Distribution remaining unpaid --
Class B-2 Note Principal Balance after distribution on Payment Date 3,563,514.08
REMAINING AVAILABLE FUNDS 121,358.67
</TABLE>
Page 6
<PAGE> 79
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due --
Letter of Credit Reimbursement Amount paid --
--------------
Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS 121,358.67
CLASS B-3 NOTE INTEREST
Class B-3 Note Interest due 21,370.43
Class B-3 Note Interest paid 21,370.43
--------------
Class B-3 Note Interest remaining unpaid --
--------------
REMAINING AVAILABLE FUNDS 99,988.24
CLASS B-3 BASE PRINCIPAL DISTRIBUTION
Class B-3 Note Principal Balance as of preceding Payment Date 3,663,502.32
Class B-3 Base Principal Distribution due 99,988.24
Class B-3 Base Principal Distribution paid 99,988.24
--------------
Class B-3 Base Principal Distribution remaining unpaid 0.00
Class B-3 Note Principal Balance after distribution on Payment Date 3,563,514.08
REMAINING AVAILABLE FUNDS --
INDENTURE TRUSTEE EXPENSES IN EXCESS OF SECTION 7.07(A)(II)
Indenture Trustee Expenses unpaid per above --
Remaining Indenture Trustee Expenses paid --
---------------
Remaining Indenture Trustee Expenses unpaid --
REMAINING AVAILABLE FUNDS --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due --
Additional Letter of Credit Reimbursement Amount paid --
---------------
Additional Letter of Credit Reimbursement Amount remaining unpaid --
REMAINING AVAILABLE FUNDS --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement due --
Other Amounts Due Servicer under Servicing Agreement paid --
---------------
Other Amounts Due Servicer under Servicing Agreement remaining unpaid --
REMAINING AVAILABLE FUNDS --
DIFFERENCE BETWEEN EXCESS OF ADCPB OVER ENDING NOTE BALANCES AND FLOOR 443,460.58
AMOUNT PAYABLE TO RESIDUAL HOLDER --
REMAINING AVAILABLE FUNDS TO NOTE HOLDERS --
CLASS A ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders --
Adjusted Principal Distribution Sharing Ratio 93.878%
---------------
Additional Principal Distribution to Class A --
Class A Note Principal Balance after payment above 163,921,647.48
---------------
Class A additional Principal Distribution Amount paid --
---------------
Excess cash after payment of additional Class A Principal Distribution --
Class A-1 Note Principal Balance after payment above --
Class A-1 additional Principal Distribution Amount paid --
---------------
</TABLE>
Page 7
<PAGE> 80
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<CAPTION>
<S> <C>
Class A-1 Note Principal Balance after distribution on Payment Date --
--------------
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-2 Note Principal Balance after payment above 74,156,647.48
Class A-2 additional Principal Distribution Amount paid --
--------------
Class A-2 Note Principal Balance after distribution on Payment Date 74,156,647.48
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-3 Note Principal Balance after payment above 51,527,000.00
Class A-3 additional Principal Distribution Amount paid --
--------------
Class A-3 Note Principal Balance after distribution on Payment Date 51,527,000.00
Remaining Class A additional Principal Distribution Amount --
--------------
Class A-4 Note Principal Balance after payment above 38,238,000.00
Class A-4 additional Principal Distribution Amount paid --
--------------
Class A-4 Note Principal Balance after distribution on Payment Date 38,238,000.00
CLASS B-1 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders --
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-1 --
Class B-1 Note Principal Balance after payment above 3,563,514.08
Class B-1 additional Principal Distribution paid --
--------------
Class B-1 Note Principal Balance after distribution on Payment Date 3,563,514.08
CLASS B-2 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders --
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-2 --
Class B-2 Note Principal Balance after payment above 3,563,514.08
Class B-2 additional Principal Distribution paid --
--------------
Class B-2 Note Principal Balance after distribution on Payment Date 3,563,514.08
CLASS B-3 ADDITIONAL PRINCIPAL DISTRIBUTION
Remaining Available Funds to Note Holders --
Adjusted Principal Distribution Sharing Ratio 2.041%
--------------
Additional Principal Distribution to Class B-3 --
Class B-3 Note Principal Balance after payment above 3,563,514.08
Class B-3 additional Principal Distribution paid --
--
--------------
Class B-3 Note Principal Balance after distribution on Payment Date 3,563,514.08
</TABLE>
Page 8
<PAGE> 81
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - FEE CALCULATION
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<S> <C>
CALCULATION OF BASE PRINCIPAL AMOUNT
ADCPB, beginning of Collection Period 183,809,646.31
ADCPB, end of Collection Period 178,810,234.43
--------------
Base Principal Amount 4,999,411.88
UNREIMBURSED SERVICING ADVANCES
Unreimbursed Servicing Advances from previous Collection Period 2,390,652.86
Servicing Advances collected during the current Collection Period 1,821,487.21
--------------
Unreimbursed Servicing Advances as of current Determination Date 569,165.65
</TABLE>
CALCULATION OF INTEREST DUE
<TABLE>
<CAPTION>
Beginning Current Total
Principal Interest Interest Overdue Interest
Class Balance Rate Due Interest Due
--------- -------------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
Class A-1 -- 5.7325% -- -- --
Class A-2 78,756,106.41 6.3500% 416,751.06 -- 416,751.06
Class A-3 51,527,000.00 6.3500% 272,663.71 -- 272,663.71
Class A-4 38,238,000.00 6.3500% 202,342.75 -- 202,342.75
Class B-1 3,663,502.32 6.8850% 21,019.34 -- 21,019.34
Class B-2 3,663,502.32 6.4500% 19,691.32 -- 19,691.32
Class B-3 3,663,502.32 7.0000% 21,370.43 -- 21,370.43
-------------- ---------- ------- ----------
179,511,613.36 6.3762% 953,838.62 -- 953,838.62
</TABLE>
CALCULATION OF PRINCIPAL DUE
<TABLE>
<CAPTION>
Base Base Total
Principal Principal Overdue Principal
Class Amount Pct. Amount Principal Due
--------- ------------ ------------ --------- ------------
<S> <C> <C> <C> <C>
Class A 92.0% 4,599,458.93 -- 4,599,458.93
Class B-1 2.0% 99,988.24 -- 99,988.24
Class B-2 2.0% 99,988.24 -- 99,988.24
Class B-3 2.0% 99,988.24 -- 99,988.24
------------ --------- ---------
4,899,423.64 -- 4,899,423.64
</TABLE>
<TABLE>
<S> <C>
CALCULATION OF SERVICER FEE
ADCPB as of the prior Calculation Date 183,809,646.31
Servicer Fee Rate 0.500%
One-twelfth 1/12
---------------
Servicer Fee due current period 76,587.35
Prior Servicer Fee arrearage --
---------------
Servicer Fee due 76,587.35
CALCULATION OF BACK-UP SERVICER FEE
ADCPB as of the prior Calculation Date 183,809,646.31
Back-up Servicer Fee Rate 0.020%
One-twelfth 1/12
---------------
Back-up Servicer Fee due Current Period 3,063.49
less overpayment from prior period --
Prior Back-up Servicer Fee Arrearage --
---------------
Back-up Servicer Fee due 3,063.49
CALCULATION OF PREMIUM AMOUNT
Class A Principal Amount as of the immediately preceding Collection Period 168,521,106.41
Premium Rate 0.140%
One-twelfth 1/12
---------------
</TABLE>
Page 9
<PAGE> 82
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - PRIORITY OF PAYMENTS
COLLECTION PERIOD ENDED JULY 1, 1998
<TABLE>
<S> <C>
Premium Amount due Current Period 19,660.80
Prior Premium Amount arrearage --
--
Total Premium Amount due 19,660.80
INDENTURE TRUSTEE FEE (PER PAYMENT DATE)
Indenture Trustee Fee (per Payment Date) 291.67
Prior Indenture Trustee Fee arrearage --
---------------
Total Indenture Trustee Fee due 291.67
CALCULATION OF LETTER OF CREDIT BANK FEE
Total Facility Face Amount (Class B-2 Note Principal Balance as of Deter. Date) 3,663,502.32
Letter of Credit Bank Fee Rate 0.55%
One-twelfth 1/12
---------------
Letter of Credit Bank Fee due Current Period 1,679.11
Letter of Credit Bank Fee arrearage --
---------------
Total Letter of Credit Bank Fee arrearage due 1,679.11
LETTER OF CREDIT REIMBURSEMENT AMOUNT
Letter of Credit Reimbursement Amount due current period --
Prior Letter of Credit Reimbursement Amount arrearage --
---------------
Total Letter of Credit Reimbursement Amount due --
INDENTURE TRUSTEE EXPENSES
Indenture Trustee Expenses due --
Prior Indenture Trustee Expenses arrearage --
---------------
Total Indenture Trustee Expenses due --
ADDITIONAL LETTER OF CREDIT REIMBURSEMENT AMOUNT
Additional Letter of Credit Reimbursement Amount due current period --
Prior Additional Letter of Credit Reimbursement Amount arrearage --
---------------
Total Additional Letter of Credit Reimbursement Amount due --
OTHER AMOUNTS DUE SERVICER UNDER SERVICING AGREEMENT
Other Amounts Due Servicer under Servicing Agreement - current period --
Prior Other Amounts Due Servicer under Servicing Agreement - arrearage --
---------------
Total Other Amounts Due Servicer under Servicing Agreement --
FLOOR CALCULATION
Initial ADCPB 226,351,292.85
Floor percent 2.00%
---------------
Floor 4,527,025.86
ADCPB as of end of immediately preceding Collection Period 178,695,755.00
Aggregate Note Balances prior to any payment on current Payment Date 179,511,613.36
Payments on payment date prior to application of Floor Amount, if any
Class A 4,599,458.93
Class B-1 99,988.24
Class B-2 99,988.24
Class B-3 99,988.24
---------------
Total Base Principal Amount distributions on current payment date 4,899,423.64
---------------
Aggregate Note Balance after payment of Base Principal Amount 174,612,189.72
---------------
Excess of ADCPB over Ending Note Balances 4,083,565.28
Difference between excess and floor 443,460.58
</TABLE>
Page 10
<PAGE> 83
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TESTS
COLLECTION PERIOD ENDED JULY 1, 1998
RESTRICTING EVENT DETERMINATION:
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Event of Servicer Termination (Yes/No) No
B) Note Insuer has Made a Payment (Yes/No) No
C) Gross Charge Off Event has Occurred (Yes/No) No
D) Delinquency Trigger Event has Occurred (Yes/No) No
</TABLE>
EVENTS OF DEFAULT: SECTION 8.01 OF INDENTURE
<TABLE>
<CAPTION>
Yes/No
------
<S> <C>
A) Failure to distribute to the Noteholders all or part of any payment
of Interest required to be made under the terms of such Notes or the
Indenture when due; and, No
B) Failure to distribute to the Noteholders (x) on any Payment Date,
an amount equal to the principal due on the Outstanding Notes as
of such Payment Date to the extent that sufficient Available Funds
are on deposit in the Collection Account of (y) on the No
</TABLE>
EVENTS OF SERVICER TERMINATION: SECTION 6.01 OF SERVICING AGREEMENT
<TABLE>
<CAPTION>
Section Event Yes/No
--------- --------------------------------------------------------------------------- -------
<S> <C> <C>
6.01(i) Failure to make payment required No
6.01(ii) Failure to submit Monthly Statement No
6.01(iii) Failure to Observe Covenants in Servicing Agreement No
6.01(iv) Servicer consents to appointment of custodian, receiver, etc. No
6.01(v) Servicer files a voluntary petition for bankruptcy No
6.01(vi) Order of judgment in excess of $500,000 No
6.01(vii) Petition under bankruptcy laws against Servicer is not stayed, withdrawn or
dismissed within 60 days No
6.01(viii) Assignment by Servicer to a delegate its rights under Servicing Agreement No
6.01(ix) Servicer Trigger Event as contained in the Insurance Agreement has occurred. No
</TABLE>
Page 11
<PAGE> 84
FIRST SIERRA EQUIPMENT CONTRACT TRUST SERIES 1997-1
FIRST SIERRA RECEIVEABLES IV, INC.
MONTHLY SERVICER CERTIFICATE - TRIGGER ACCOUNT CALCULATIONS
COLLECTION PERIOD ENDED JULY 1, 1998
Gross Charge Event Calculation:
<TABLE>
<CAPTION>
Result
------
<S> <C>
Gross Charge Off Ratio Current Period 1.09%
Gross Charge Off Ratio Prior Period 1.33%
Gross Charge Off Ratio Second Prior Period 0.37%
------
Average of Gross Charge Off Ratio for Three Periods 0.93%
Maximum Allowed 2.50%
</TABLE>
Gross Charge Off Ratio:
<TABLE>
<CAPTION>
ADCPB of Gross Charge Off Ratio
All Defaulted Less Charge Offs/
Contracts Recoveries Charge Offs ADCPB ADCPB
------------- ---------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Current Period 558,855.87 396,025.65 162,830.22 178,695,755.00 1.09%
Prior Period 558,581.01 355,230.49 203,350.52 183,809,646.31 1.33%
Second Prior Period 539,561.02 481,091.25 58,469.77 188,870,384.73 0.37%
</TABLE>
Delinquency Event Calculation:
<TABLE>
<CAPTION>
Results
-------
<S> <C>
Delinquency Trigger Ratio Current Period 2.99%
Delinquency Trigger Ratio Prior Period 3.17%
Delinquency Trigger Ratio Second Prior Period 3.21%
Average of Delinquency Trigger Ratios 3.13%
Maximum Allowed 7.50%
</TABLE>
Delinquency Trigger Ratio:
<TABLE>
<CAPTION>
A B
ADCPB of ADCPB of A/B
Contract > 30 Days All Contracts Delinquency Trigger
Past Due As of Month-End Ratio:
------------ --------------- --------------------
<S> <C> <C> <C>
Current Period 5,362,255.28 179,222,649.91 2.99%
Prior Period 5,826,430.47 183,694,357.13 3.17%
Second Prior Period 6,070,704.82 188,952,691.55 3.21%
</TABLE>
Page 12
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