<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 1997
FIRST UNION COMMERCIAL MORTGAGE SECURITIES, INC.
(Exact name of registrant as specified in its governing instruments)
Delaware 333-7854 56-1643598
(State or other jurisdiction (Commission File Numbers) (I.R.S. Employer
of Incorporation) Identification No.)
One First Union Center
Charlotte, North Carolina 28228-0600
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (704) 374-6828
Exhibit Index appears on
page 4
<PAGE>
Item 5. Other Events
On or about November 25, 1997, the Registrant will cause the
issuance and sale of approximately $2,243,878,854 initial principal amount of
Mortgage Pass-Through Certificates, Series 1997-C2, in several classes
(collectively, the "Certificates") pursuant to a Pooling and Servicing Agreement
to be dated as of November 1, 1997, among the Registrant, First Union National
Bank as master servicer, Criimi Mae Services Limited Partnership as special
servicer, LaSalle National Bank as trustee and ABN Amro Bank N.V. as fiscal
agent (the "Pooling and Servicing Agreement").
In connection with the sale of certain classes of the
Certificates (collectively, the "Underwritten Certificates") pursuant to a
Prospectus Supplement relating to the Underwritten Certificates, the
Registrant has been advised by Lehman Brothers Inc. and First Union Capital
Markets Corp. (the "Underwriters") that the Underwriters have, following the
effective date of Registration Statement No. 333-7854, furnished to one or more
prospective investors on November 4, 1997 a Term Sheet setting forth certain
information about certain of the mortgage loans expected to be deposited in
trust under the Pooling and Servicing Agreement and the size and structure of
the potential offering (the "Term Sheet"). This Term Sheet is being filed as an
exhibit to this report.
The Term Sheet has been provided by the Underwriters. The
information in the Term Sheet is preliminary and will be superseded by the
Prospectus Supplement relating to the Underwritten Certificates and by any other
information subsequently filed with the Securities and Exchange Commission.
2
<PAGE>
Item 7. Financial Statements and Exhibits
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information
Not applicable.
(c) Exhibits
Item 601(a) of Regulation
Exhibit Number S-K Exhibit No. Description
-------------- ------------------------- -----------
1 99 Term Sheet
3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
FIRST UNION COMMERCIAL
MORTGAGE SECURITIES, INC.
By: /s/James F. Powers
Name: James F. Powers
Title: Attorney-in-Fact
Dated: November 6, 1997
<PAGE>
EXHIBIT INDEX
Item 601(a) of Regulation
Exhibit Number S-K Exhibit No. Description
-------------- ------------------------- -----------
1 99 Term Sheet
<PAGE>
UNDERWRITERS' STATEMENT
STRUCTURAL AND COLLATERAL TERM SHEET
$2,243,883,409 (Approximate)
First Union - Lehman Brothers Commercial Mortgage Trust II
Commercial Mortgage Pass Through Certificates,
Series 1997-C2
The attached Structural and Collateral Term Sheet (the "Term Sheet") is
privileged and confidential and is intended for use by the addressee only. This
Term Sheet is furnished to you solely by Lehman Brothers Inc. and First Union
Capital Markets Corp. (the "Underwriters") and not by the issuer of the
certificates identified above (the "Offered Certificates") or any other party.
The issuer of the Offered Certificates has not prepared or taken part in the
preparation of these materials. The Term Sheet is based upon information made
available to the Underwriters. None of the Underwriters, the issuer of the
Offered Certificates, or any other party makes any representation as to the
accuracy or completeness of the information herein. The information herein is
preliminary, and will be superseded by the applicable prospectus supplement and
by any other information subsequently filed with the Securities and Exchange
Commission. The information herein may not be provided to any third party other
than the addressee's legal, tax, financial and/or accounting advisors for the
purposes of evaluating such information.
No assurance can be given as to the accuracy, appropriateness or completeness of
the Term Sheet in any particular context; or as to whether the Term Sheet
reflects future performance. This Term Sheet should not be construed as either a
prediction or as legal, tax, financial or accounting advice.
Any yields or weighted average lives shown in the Term Sheet are based on
prepayment and other assumptions and actual experience may dramatically affect
such yields or weighted average lives. The principal amount and designation of
any security described in the Term Sheet are subject to change prior to
issuance.
Although a registration statement (including the prospectus) relating to the
Offered Certificates has been filed with the Securities and Exchange Commission
and is effective, the final prospectus supplement relating to the Offered
Certificates has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the Offered Certificates in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Prospective purchasers are referred to the final prospectus and prospectus
supplement relating to the Offered Certificates for definitive terms of the
Offered Certificates and the collateral.
Please be advised that Offered Certificates may not be appropriate for all
investors. Potential investors must be willing to assume, among other things,
market price volatility, prepayments, yield curve and interest rate risks.
Investors should fully consider the risk of an investment in these Offered
Certificates.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
<PAGE>
Structural and Collateral Term Sheet
First Union - Lehman Brothers Commercial Mortgage Trust II
Commercial Mortgage Pass-Through Certificates,
Series 1997-C2
$2,243,883,409 (Approximate)
[GRAPHIC OMITTED - MAP OF UNITED STATES REFLECTING
PERCENTAGES OF MORTGAGE POOL BY STATE]
% of Mortgage Pool by Cut-off Date Balance
Lehman Brothers First Union Capital Markets Corp.
The date of this Term Sheet is November 4, 1997
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROJECTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
2
<PAGE>
First Union-Lehman Brothers Commercial Mortgage Trust II
Commercial Mortgage Pass-Through Certificates, Series 1997-C2
(FU-LB 1997-C2)
<TABLE>
<CAPTION>
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
Original Rating Avg Principal Legal
Class Face () Description Coupon Life (1) Window (1) Status
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
A-2 Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
A-3 Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
IO (2) (3) Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
B Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
C Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
D Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
E Public
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
- --------- ---------------------- --------------------- -------------- ------------ ---------- ----------------- ----------------
</TABLE>
(1) Assuming among other things, 0% CPR and no losses.
(2) Represents notional amount on Class IO.
(3) Represents average life of related principal notional amounts on Class IO.
Rating Agencies: TBA
Trustee: LaSalle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Master Servicer: First Union National Bank ("First Union")
Special Servicer: CRIIMI MAE Services Limited Partnership
Closing Date: On or about November 25, 1997
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
3
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
Cut-off Date: November 1, 1997
ERISA: Classes A-1, A-2, A-3 and IO are expected to be
eligible for each of the Underwriters'
individual prohibited transaction exemptions with
respect to ERISA.
SMMEA: Classes A-1, A-2, A-3, B and IO are "mortgage
related securities" for purposes of SMMEA.
Payment: Pays on 18th of each month or, if such date is
not a business day, then the following
business day.
The Class IO: The Class IO is comprised of thirteen
components, one relating to each class of
Principal Balance Certificates.
Optional Call: 1% Clean-up Call.
Collateral: The Certificates are backed by 430 mortgage loans
secured by first liens on 449 commercial and
multifamily properties, such mortgage loans having
been originated by an affiliate of Lehman Brothers,
or its approved conduit originators, or by First
Union, or its approved conduit originators.
- Newly Originated Collateral. The collateral consists of 430 Mortgage
Loans with a principal balance (as of November 1, 1997) of
approximately $2.24 billion. 50.3%* of the Mortgage Loans were
contributed by an affiliate of Lehman Brothers and 49.7% of the
Mortgage Loans were contributed by First Union.
- Call Protection. 99.6% of the loans have call protection:
94.6% of Mortgage Loans have lockout initially then yield
maintenance and/or declining penalties and/or open periods.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------- -------------------- -------------------------
Type of Call Protection # of Loans % of Balance
- --------------------------------------------------------------------------------- -------------------- -------------------------
<S> <C> <C>
Lockout (weighted average 60 months), then yield maintenance ("YM")* 249 46.0
- --------------------------------------------------------------------------------- -------------------- -------------------------
Defeasance or Lockout then Defeasance (Lender Option) 121 31.2
- --------------------------------------------------------------------------------- -------------------- -------------------------
Lockout (weighted average 54 months), then YM*, then declining penalties 26 12.5
- --------------------------------------------------------------------------------- -------------------- -------------------------
Lockout (weighted average 51 months), then declining penalties 14 4.9
- --------------------------------------------------------------------------------- -------------------- -------------------------
YM * only 8 2.9
- --------------------------------------------------------------------------------- ---------------------------------------------
Lockout (weighted average 133 months), then open 10 1.7
- --------------------------------------------------------------------------------- -------------------- -------------------------
Declining penalties only 1 0.4
- --------------------------------------------------------------------------------- -------------------- -------------------------
None 1 0.4
- --------------------------------------------------------------------------------- -------------------- -------------------------
</TABLE>
* 93.6% of Mortgage Loans provide for yield maintenance prepayment premiums that
are calculated at a discount rate of Treasuries flat.
- No loan delinquent 30 days or more as of the Cut-off Date.
- $5.2mm average loan balance as of the Cut-off Date.
- 1.36x Weighted Average Debt Service Coverage Ratio ("DSCR") as of the
Cut-off Date (excluding Credit Tenant Lease ("CTL") Loans).
- 72.2% Weighted Average Loan to Value ("LTV") as of the Cut-off Date
(excluding CTL Loans).
- Property Types. 30.5% Multifamily concentration, 30.4% Retail
concentration. Less than 14% concentrations in Office
(10.5%) and Hotel (8.7%) (excluding CTLs).
- Geographic Diversification. FL (14.2%), NY (11.1%), TX (10.6%),
CA (9.4%), all other states less than 5% each.
- 10.6% CTLs. 6.2% Retail, 3.3% Office, 0.8% Health & Fitness,
0.3% Other.
- Cash Flows will be Modeled on BLOOMBERG.
* Except as otherwise indicated, percentages (%) represent the principal
amount of loan or loans compared to aggregate pool balance, as of the
Cut-off Date (the "Initial Pool Balance")
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
4
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
MORTGAGE LOANS: The collateral consists of an approximately
$2.24 billion pool of 430 fixed rate mortgage loans
secured by first liens on commercial and
multifamily properties in 38 different states. As
of the Cut-off Date, the Mortgage Loans have a
weighted average coupon ("WAC") of 8.203% and a
weighted average maturity ("WAM") of 151 months.
See the Collateral Summary tables at the end of
this memo for more Mortgage Loan details.
CREDIT ENHANCEMENT: Credit enhancement for each class of
Certificates will be provided by the classes of
Certificates which are subordinate in priority with
respect to payments of interest and principal.
REALIZED LOSSES: Realized Losses from any Mortgage Loan will
be allocated in reverse sequential order (i.e. L,
K, J, H, G, F, E, D, C, B and then pro-rata to
Classes A-1, A-2, and A-3).
APPRAISAL REDUCTIONS: With respect to certain Mortgage Loans
as to which an appraisal is required (including any
Mortgage Loan that becomes 60 days delinquent), an
Appraisal Reduction Amount may be created, in the
amount, if any, by which the Stated Principal
Balance of such Mortgage Loan, together with
unadvanced interest, unreimbursed P&I advances and
certain other items, exceeds 90% of the appraised
value of the related Mortgaged Property. The
Appraisal Reduction Amount will reduce
proportionately the amount of any P&I Advance for
such loan, which reduction may result in a
shortfall of interest to the most subordinate class
of Principal Balance Certificates outstanding. The
Appraisal Reduction Amount will be reduced to zero
as of the date the related Mortgage Loan has been
brought current for three months, paid in full,
repurchased or otherwise liquidated, and any
shortfalls borne by the subordinate classes may be
made whole.
PREPAYMENT PREMIUMS (% represents % of Cut-off Date Balance):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Prepayment 11/97 11/98 11/99 11/00 11/01 11/02 11/03 11/04 11/05 11/06 11/07
Premium
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out 94.6 93.6 84.9 77.2 36.7 23.7 23.2 19.8 11.9 9.8 1.2
- --------------------------------------------------------------------------------------------------------------------------------
Defeasance 1.7 1.7 4.1 7.0 20.0 21.7 20.0 17.4 19.6 18.4 8.1
- --------------------------------------------------------------------------------------------------------------------------------
YM 2.9 3.9 9.5 13.9 40.2 44.6 43.8 44.8 50.4 51.7 21.0
- --------------------------------------------------------------------------------------------------------------------------------
5% 0.4 0.9 5.6 0.3 0.4
- --------------------------------------------------------------------------------------------------------------------------------
4% 0.1 0.3 0.9 5.7 0.3 0.3 2.4
- --------------------------------------------------------------------------------------------------------------------------------
3% 0.4 0.4 1.1 0.4 1.0 5.7 0.3 3.0
- --------------------------------------------------------------------------------------------------------------------------------
2% 1.1 0.8 0.4 0.8 5.7
- --------------------------------------------------------------------------------------------------------------------------------
1% 0.6 0.7 0.7 1.1 1.9 6.4
- --------------------------------------------------------------------------------------------------------------------------------
Open 0.4 0.4 0.4 0.4 0.4 0.7 4.0 0.7 0.7 3.9 0.4
- --------------------------------------------------------------------------------------------------------------------------------
Matured 1.3 1.3 9.4 9.4 9.5 63.5
- --------------------------------------------------------------------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Note that Prepayment Premiums generally end prior to the last six
months before the Mortgage Loan's maturity date.
ALLOCATION OF
PREPAYMENT PREMIUMS: All Prepayment Premiums are distributed to
Certificateholders on the Distribution Date
following the one-month collection period in which the
prepayment occurred. All Prepayment Premiums will
be allocated to the Classes A through F, up to the
product of (i) the Prepayment Premium and (ii) the
"Discount Rate Fraction." However, only the
Class(es) entitled to principal payments on a given
Distribution Date will be eligible to receive a
portion of the Prepayment Premiums. Any excess
amounts will be distributed to Class IO.
The Discount Rate Fraction for Classes A through F is defined as:
(Coupon on Class - Reinvestment Yield) / (Coupon on
Mortgage Loan - Reinvestment Yield)
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
5
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
PREPAYMENT PREMIUM ALLOCATION EXAMPLE:
The Yield Maintenance formulas for the Mortgage
Loans are calculated based upon various methods.
Under one method, the Yield Maintenance prepayment
premium will be equal to the present value of the
reduction in interest payments as a result of the
prepayment through the maturity of the Mortgage
Loan, discounted at the yield of a Treasury
security of similar maturity in most cases
(converted from semi-annual to monthly pay). The
following example reflects that method.
General Yield Maintenance Example:
Assuming the structure presented on pages 3 and 4
of this memo and the following assumptions:
Mortgage Loan Characteristics of
loan being prepaid*:
Balance $10,000,000
Coupon 9.0%
Maturity 10 yrs (November 1, 2007)
Amortization Term 30 yrs
Prepayment Date 12/1/97
Prepayment Premium Type Yield Maintenance (Treasuries flat)
Certificate Characteristics
Class A-1 Coupon 7.00%
* The Yield Maintenance formula for certain Mortgage Loans may result in a lower
Yield Maintenance prepayment premium than set forth in this example.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Mortgage Class A-1 Class IO
Loan Certificates Certificates
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
<S> <C> <C> <C>
Amount of Principal Prepayment $10,000,000 $10,000,000 N/A
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Maturity Date of the Mortgage Loan 11/1/07
Number of Payments (1) 120
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Treasury Note used for Reinvestment Yield (2) 6.125% 8/07
Treasury Yield (CBE) 6.075%
Reinvestment Yield (Mtg) (3) 6.000%
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Mortgage Rate 9.00%
Payment Differential ($ per month) (4) $25,000
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Certificate Pass-Through Rate 7.00%
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Total Prepayment Premium $2,251,838
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
Discount Rate Fraction Calculation (7.00% - 6.000%)/ excess
(Class A-1 Coupon - Reinvestment Yield) / (9.00% - 6.000%) = prepayment
(Gross Mortgage Rate - Reinvestment Yield) = 1.000/3.000 = premiums
% of Premium allocated to Classes (Discount Rate Fraction) 33.333%
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
$ Premium allocated to each class $750,614 $1,501,224
- ---------------------------------------------------------------------- -------------------- ----------------------- ----------------
</TABLE>
(1) The number of payments to discount for yield maintenance prepayment
premium computation.
(2) The yield on the treasury note with a maturity date
closest to the maturity date of the loan.
(3) The Reinvestment Yield used is
the mortgage equivalent of the CBE treasury yield.
(4) (Mortgage Rate - Reinvestment Yield) x (amount of Principal
Prepayment) / 12 used for 120 payments.
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
6
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
CREDIT TENANT LEASE LOANS:
Credit Tenant Lease Loans are secured by Mortgages
on Mortgaged Properties leased, pursuant to a lease
(each a "Credit Lease"), to a tenant which
possesses (or whose parent or other affiliate which
guarantees the lease obligation possesses)
recognized financial strength, long-term debt
ratings of B+ or better assigned by one or more
credit rating agencies or other rating generally
believed to be equivalent. Scheduled monthly rent
payments under the Credit Leases are generally
sufficient to pay in full and on a timely basis all
interest and principal scheduled to be paid with
respect to the related Credit Tenant Lease Loans.
All of the Credit Tenant Lease Loans are secured by
assignments of leases and rents on properties
net-leased to the Tenants pursuant to the Credit
Tenant Leases. The Credit Lease Loans generally
provide that the Tenant is responsible for all
costs and expenses incurred in connection with the
maintenance and operation of the related Credit
Lease property and that, in the event of a casualty
or condemnation of a material portion of the
related Mortgaged Property, (i) the Tenant is
obligated to continue making payments or (ii) the
Tenant must make an offer to purchase the
applicable property subject to the Credit Lease for
an amount not less than the unpaid principal
balance plus accrued interest on the related Credit
Tenant Lease Loan.
Approximately 10.6% of the Mortgage Loans are Credit Tenant Lease Loans.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
# Loans Initial Property Lease Credit
Tenant Balance Type Type (1) Guarantor Rating (2)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Rite Aid Pharmacy 25 40,648,355 Retail NN Rite Aid Corporation A3/BBB+
- -----------------------------------------------------------------------------------------------------------------------------------
Blue Cross Blue Shield 1 30,000,000 Office NNN A
- -----------------------------------------------------------------------------------------------------------------------------------
Office Depot 1 24,140,144 Office NNN BB+/Baa3
- -----------------------------------------------------------------------------------------------------------------------------------
Circuit City 5 23,263,531 Retail B NAIC 2
- -----------------------------------------------------------------------------------------------------------------------------------
Hartford Fire 1 20,078,226 Office NN AA/Aa3 (3)
- -----------------------------------------------------------------------------------------------------------------------------------
Garden Ridge 2 19,223,363 Retail NNN (4)
- -----------------------------------------------------------------------------------------------------------------------------------
Bally Total Fitness 4 17,224,559 Health & NNN Bally's Total Fitness B+/B3
Fitness Holding Corp.
- -----------------------------------------------------------------------------------------------------------------------------------
Revco 10 13,368,129 Retail NN Revco D.S. Inc. A-/Baa1
- -----------------------------------------------------------------------------------------------------------------------------------
K Mart 1 11,673,663 Retail NNN B+/Ba3
- -----------------------------------------------------------------------------------------------------------------------------------
Walmart 1 7,341,749 Retail NNN AA/Aa2
- -----------------------------------------------------------------------------------------------------------------------------------
Eckerd 4 6,332,318 Retail NNN A/A2
- -----------------------------------------------------------------------------------------------------------------------------------
Eckerd 1 1,513,702 Retail NN A/A2
- -----------------------------------------------------------------------------------------------------------------------------------
Walgreen 2 5,277,018 Retail NN A+/Aa3
- -----------------------------------------------------------------------------------------------------------------------------------
Albertson's, Inc. 1 5,158,010 Retail NN A1/A+
- -----------------------------------------------------------------------------------------------------------------------------------
Barnes & Noble, Inc. 1 4,989,871 Mixed Use NNN BB/Ba1
- -----------------------------------------------------------------------------------------------------------------------------------
Pep Boys 1 2,447,077 Ground Lease NNN BBB+/Baa2
- -----------------------------------------------------------------------------------------------------------------------------------
Thrifty-Payless 1 2,262,166 Retail NN BBB+/Baa1
- -----------------------------------------------------------------------------------------------------------------------------------
Sunbelt Rentals 2 1,891,245 Retail NN Ashtead Group, PLC (4)
- -----------------------------------------------------------------------------------------------------------------------------------
Orleans CVS, Inc. 1 1,153,040 Retail NNN CVS Corporation A-/A3
- -----------------------------------------------------------------------------------------------------------------------------------
Total CTLs 65 237,986,166
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "NNN" means triple net lease; "NN" means double net lease; "B" means
bondable lease.
(2) Senior unsecured rating of tenant or guarantor unless
otherwise indicated.
(3) Claims paying ability rating.
(4) Private rating; disclosure not available.
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
7
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
ADVANCING: The Master Servicer will be obligated to make
advances of scheduled principal and interest
payments (excluding balloon payments and Appraisal
Reduction Amounts) and certain servicing expenses
("Advances"), to the extent that such Advances are
deemed to be recoverable. If the Master Servicer
fails to make a required Advance, the Trustee or
Fiscal Agent will be obligated to make such
advances.
CONTROLLING CLASS REPRESENTATIVE:
A Controlling Class Representative will be
appointed by a majority of Certificateholders of
the Controlling Class, which will generally be the
most subordinate class with a Certificate Balance
outstanding that is at least 25% of the initial
Certificate Balance of such Class. The Controlling
Class Representative will, subject to certain
limitations, direct the Special Servicer on how to
resolve delinquent or defaulted loans.
SPECIAL SERVICER FLEXIBILITY:
The Pooling and Servicing Agreement will generally
permit the Special Servicer to modify, waive or
amend any term of any Mortgage Loan if (a) it
determines, in accordance with the servicing
standard, that it is appropriate to do so and (b)
such modification, waiver or amendment will not:
(i) affect the amount or timing of any
scheduled payments of principal,
interest or other amount (including
Prepayment Premiums and Yield
Maintenance Charges) payable under the
Mortgage Loan;
(ii)affect the obligation of the related
borrower to pay a Prepayment Premium or
Yield Maintenance Charge or permit a
principal prepayment during the
applicable Lockout Period;
(iii) except as expressly provided by the
related Mortgage or in connection with a
material adverse environmental condition
at the related Mortgaged Property,
result in a release of the lien of the
related Mortgage on any material portion
of such Mortgaged Property without a
corresponding principal prepayment, or;
(iv)in the judgment of the Special
Servicer, materially impair the security
for the Mortgage Loan or reduce the
likelihood of timely payment of amounts
due thereon.
SPECIAL SERVICER: CRIIMI MAE Services Limited Partnership
("CRIIMI"), a Maryland limited partnership,
the general partner of which is CRIIMI MAE
Management, Inc.
As of July 31, 1997, CRIIMI had a total commercial
and multifamily mortgage loan servicing portfolio
(including loans serviced for its own account and
for others) of approximately $9 billion.
MASTER SERVICER: First Union. As of March 31, 1997, First Union
had a total commercial and multifamily mortgage
loan servicing portfolio (including loans
serviced for its own account and for
others) of approximately $4 billion.
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
8
<PAGE>
FU-LB 97-C2 Structural Term Sheet (continued):
MINIMUM DENOMINATIONS:
<TABLE>
<CAPTION>
Minimum Increments
Classes Denomination Thereafter Delivery
- ---------------------------------------- ------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
A-1, A-2, A-3, B, C, D, and E $10,000 $1 DTC
- ---------------------------------------- ------------------------- ------------------------- --------------------------
IO $100,000 $1 DTC
</TABLE>
DETAILED MONTHLY INVESTOR REPORTING:
Updated collateral summary information will be
a part of the monthly remittance report in addition
to detailed P&I payment and delinquency
information. Quarterly NOI and Occupancy data, to
the extent delivered by the borrowers, will be
available to Certificateholders through the
Trustee. The following is a list of all the reports
that will be available to Certificateholders:
<TABLE>
<CAPTION>
Name of Report Description (information provided)
------- ------------------------------------------- -----------------------------------------------------------------
<S> <C> <C>
1 Remittance Report principal and interest distributions, principal balances
------- ------------------------------------------- -----------------------------------------------------------------
2 Mortgage Loan Status Report portfolio stratifications
------- ------------------------------------------- -----------------------------------------------------------------
3 Comparative Financial Status Report revenue, NOI, DSCR to the extent available
------- ------------------------------------------- -----------------------------------------------------------------
4 Delinquent Loan Status Report listing of delinquent mortgage loans
------- ------------------------------------------- -----------------------------------------------------------------
5 Historical Loan Modification Report information on modified mortgage loans
------- ------------------------------------------- -----------------------------------------------------------------
6 Historical Loss Estimate Report liquidation proceeds, expenses, and realized losses
------- ------------------------------------------- -----------------------------------------------------------------
7 REO Status Report NOI and value of REO
------- ------------------------------------------- -----------------------------------------------------------------
8 Watch List listing of loans in jeopardy of becoming Specially Serviced
------- ------------------------------------------- -----------------------------------------------------------------
9 Loan Prepayment Report listing of loans that have given notice of prepayment
</TABLE>
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
9
<PAGE>
FU-LB 97-C2 Collateral Overview (as of the Cut-off Date - November 1, 1997):
GENERAL CHARACTERISTICS PROPERTY TYPES
<TABLE>
<CAPTION>
- ------------------------------ ------------------- ------------------------- ---------------------
Property % of Initial Pool
Characteristics Types Balance
- ------------------------------ ------------------- ------------------------- ---------------------
<S> <C> <C> <C>
Amount $2,243,883,409 Multifamily 30.5
- ------------------------------ ------------------- ------------------------- ---------------------
# of Loans 430 Retail 30.4
- ------------------------------ ------------------- ------------------------- ---------------------
Gross WAC 8.203% Office 10.5
- ------------------------------ ------------------- ------------------------- ---------------------
Original WAM 154 Hotel 8.7
- ------------------------------ ------------------- ------------------------- ---------------------
Remaining WAM 151 Health Care 4.0
- ------------------------------ ------------------- ------------------------- ---------------------
Avg. Loan Balance $5,218,334 Industrial/Retail 2.7
- ------------------------------ ------------------- ------------------------- ---------------------
WA DSCR (1) 1.36x Industrial 2.1
- ------------------------------ ------------------- ------------------------- ---------------------
WA Cut-off Date LTV Ratio (1) 72.2% Self Storage 0.2
- ------------------------------ ------------------- ------------------------- ---------------------
Balloon Loans 83.2% Mobile Home Park 0.2
- ------------------------------ ------------------- ------------------------- ---------------------
ARD Loans 2.5% Mixed Use 0.1
- ------------------------------ -------------------
------------------------- ---------------------
(1) Excluding CTL Loans. Credit Tenant Lease 10.6
------------------------- ---------------------
</TABLE>
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE:
- ------------------------------------------------------------------------------------------------------------------------------------
Aggregate % of Average Rem WA WA
# of Initial Pool Initial Initial Pool Gross WAM LTV WA Occup. % %
Property Type Loans Balance Pool Balance WAC (mths) Ratio DSCR Rate CA Balloon
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 137 684,250,812 30.5 4,994,531 8.05 140 76.7 1.30 95.6 2.8 25.6
- ------------------------------------------------------------------------------------------------------------------------------------
Conventional 129 667,271,481 29.7 5,172,647 8.04 135 76.6 1.30 95.6 2.8 25.2
- ------------------------------------------------------------------------------------------------------------------------------------
Sec. 42 8 16,979,331 0.8 2,122,416 8.48 337 78.7 1.23 95.3 - 0.3
- ------------------------------------------------------------------------------------------------------------------------------------
Retail 123 682,164,870 30.4 5,546,056 8.15 132 72.4 1.32 95.6 3.1 30.0
- ------------------------------------------------------------------------------------------------------------------------------------
Anchored 72 503,770,523 22.5 6,996,813 8.08 133 72.7 1.31 95.3 2.8 22.2
- ------------------------------------------------------------------------------------------------------------------------------------
Unanchored 51 178,394,347 8.0 3,497,928 8.35 130 71.7 1.33 96.5 0.3 7.8
- ------------------------------------------------------------------------------------------------------------------------------------
Office 38 235,562,040 10.5 6,199,001 8.33 154 69.1 1.47 95.5 1.5 8.5
- ------------------------------------------------------------------------------------------------------------------------------------
Hotel 33 195,779,045 8.7 5,932,698 8.37 147 63.9 1.54 N/A - 7.9
- ------------------------------------------------------------------------------------------------------------------------------------
Full Service 11 64,280,525 2.9 5,843,684 8.73 136 61.2 1.56 N/A - 2.4
- ------------------------------------------------------------------------------------------------------------------------------------
Limited Service 22 131,498,520 5.9 5,977,205 8.19 152 65.2 1.53 N/A - 5.5
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care 16 90,158,951 4.0 5,634,934 8.63 173 68.5 1.41 93.5 0.9 3.5
- ------------------------------------------------------------------------------------------------------------------------------------
Assisted Living 5 14,864,373 0.7 2,972,875 8.77 116 67.6 1.33 94.5 - 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 7 28,265,885 1.3 4,037,984 8.84 145 66.6 1.51 92.1 - 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Congregate Care 3 23,656,389 1.1 7,885,463 8.30 118 72.7 1.47 93.0 0.9 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing/Cong Care 1 23,372,304 1.0 23,372,304 8.63 298 67.2 1.29 95.0 - 1.0
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial/Retail 3 59,513,700 2.7 19,837,900 8.30 126 66.0 1.34 100.0 0.2 2.3
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial 10 48,026,349 2.1 4,802,635 8.65 151 68.8 1.36 95.9 0.4 1.5
- ------------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 2 4,890,822 0.2 2,445,411 7.97 156 71.2 1.43 91.8 0.1 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Self Storage 2 3,940,655 0.2 1,970,328 8.39 159 60.7 1.57 91.4 0.1 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Mixed Use 1 1,610,000 0.1 1,610,000 7.47 180 70.0 1.44 87.1 - 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
CTLs 65 237,986,166 10.6 3,661,326 8.24 235 N/A N/A 100.0 0.2 3.8
- ------------------------------------------------------------------------------------------------------------------------------------
Retail 56 139,106,289 6.2 2,484,041 8.39 239 N/A N/A 100.0 0.2 1.8
- ------------------------------------------------------------------------------------------------------------------------------------
Office 3 74,218,370 3.3 24,739,457 7.55 245 N/A N/A 100.0 - 2.0
- ------------------------------------------------------------------------------------------------------------------------------------
Other 6 24,661,507 1.1 4,110,251 9.49 178 N/A N/A 100.0 - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Avg/Min/Max/ 430 2,243,883,409 100.0 5,218,334 8.20 151 72.2 1.36 96.1 9.4 83.2
Wtd.Avg.: (1) (1) (2)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excluding CTLs.
(2) Excluding Hotels.
</TABLE>
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
10
<PAGE>
FU-LB 97-C2 Collateral Overview (as of the Cut-off Date - November 1, 1997):
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED):
- --------------------------------------------------------------------------------------------------------------------------------
Aggregate % of Average Minimum Maximum Gross Min Max Min
Property # of Inital Pool Initial Initial Pool Initial Pool Initial Pool WAC WAC WAC WAM
Type Loans Balance Pool Balance Balance Balance
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 137 684,250,812 30.5 4,994,531 400,000 33,449,419 8.05 7.36 9.55 45
- --------------------------------------------------------------------------------------------------------------------------------
Conventional 129 667,271,481 29.7 5,172,647 400,000 33,449,419 8.04 7.36 9.50 45
- --------------------------------------------------------------------------------------------------------------------------------
Sec. 42 8 16,979,331 0.8 2,122,416 705,142 3,511,325 8.48 8.00 9.55 295
- --------------------------------------------------------------------------------------------------------------------------------
Retail 123 682,164,870 30.4 5,546,056 449,722 38,206,000 8.15 7.24 9.38 60
- --------------------------------------------------------------------------------------------------------------------------------
Anchored 72 503,770,523 22.5 6,996,813 1,193,467 38,206,000 8.08 7.24 9.38 60
- --------------------------------------------------------------------------------------------------------------------------------
Unanchored 51 178,394,347 8.0 3,497,928 449,722 28,773,665 8.35 7.47 9.38 78
- --------------------------------------------------------------------------------------------------------------------------------
Office 38 235,562,040 10.5 6,199,001 945,897 22,901,796 8.33 7.68 9.50 78
- --------------------------------------------------------------------------------------------------------------------------------
Hotel 33 195,779,045 8.7 5,932,698 724,115 29,000,000 8.37 7.67 9.40 80
- --------------------------------------------------------------------------------------------------------------------------------
Full Service 11 64,280,525 2.9 5,843,684 1,893,030 17,970,413 8.73 8.00 9.40 80
- --------------------------------------------------------------------------------------------------------------------------------
Limited Service 22 131,498,520 5.9 5,977,205 724,115 29,000,000 8.19 7.67 9.35 114
- --------------------------------------------------------------------------------------------------------------------------------
Health Care 16 90,158,951 4.0 5,634,934 897,379 23,372,304 8.63 7.60 10.50 110
- --------------------------------------------------------------------------------------------------------------------------------
Assisted Living 7 28,265,885 1.3 4,037,984 2,100,000 6,234,626 8.84 7.60 10.50 115
- --------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 5 14,864,373 0.7 2,972,875 897,379 6,217,295 8.77 8.00 9.25 110
- --------------------------------------------------------------------------------------------------------------------------------
Congregate Care 3 23,656,389 1.1 7,885,463 3,391,662 11,773,564 8.30 8.07 8.50 117
- --------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing/Cong Care 1 23,372,304 1.0 23,372,304 23,372,304 23,372,304 8.63 8.63 8.63 298
- --------------------------------------------------------------------------------------------------------------------------------
Industrial/Retail 3 59,513,700 2.7 19,837,900 5,096,859 45,416,841 8.30 7.79 8.38 116
- --------------------------------------------------------------------------------------------------------------------------------
Industrial 10 48,026,349 2.1 4,802,635 1,321,379 8,783,677 8.65 7.98 9.38 78
- --------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 2 4,890,822 0.2 2,445,411 1,892,273 2,998,549 7.97 7.79 8.25 119
- --------------------------------------------------------------------------------------------------------------------------------
Self Storage 2 3,940,655 0.2 1,970,328 1,248,118 2,692,537 8.39 8.16 8.50 117
- --------------------------------------------------------------------------------------------------------------------------------
Mixed Use 1 1,610,000 0.1 1,610,000 1,610,000 1,610,000 7.47 7.47 7.47 180
================================================================================================================================
================================================================================================================================
CTLs 65 237,986,166 10.6 3,661,326 916,074 30,000,000 8.24 7.07 10.13 134
- --------------------------------------------------------------------------------------------------------------------------------
Retail 56 139,106,289 6.2 2,484,041 916,074 11,673,663 8.39 7.31 10.13 213
- --------------------------------------------------------------------------------------------------------------------------------
Office 3 74,218,370 3.3 24,739,457 20,078,226 30,000,000 7.55 7.07 8.41 177
- --------------------------------------------------------------------------------------------------------------------------------
Other 6 24,661,507 1.1 4,110,251 2,447,077 5,415,475 9.49 7.96 10.13 134
- --------------------------------------------------------------------------------------------------------------------------------
Total/Avg/Min/Max/ 430 2,243,883,409 100.0 5,218,334 400,000 45,416,841 8.20 7.07 10.50 45
Wtd.Avg.:
- --------------------------------------------------------------------------------------------------------------------------------
(1) Excluding CTLs.
[TABLE BROKEN AND RESTUBBED]
<CAPTION>
- --------------------------------------------------------------------------------
Max WA Min Max WA Min Max
Property WAM DSCR DSCR DSCR LTV LTV LTV
Type Ratio Ratio Ratio
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Multifamily 360 1.30 1.15 2.02 76.7 44.6 83.0
- --------------------------------------------------------------------------------
Conventional 360 1.30 1.18 2.02 76.6 44.6 81.4
- -------------------------------------------------------------------------------
Sec. 42 359 1.23 1.15 1.35 78.7 72.2 83.0
- --------------------------------------------------------------------------------
Retail 296 1.32 1.20 1.66 72.4 48.3 80.0
- --------------------------------------------------------------------------------
Anchored 236 1.31 1.20 1.65 72.7 48.3 80.0
- --------------------------------------------------------------------------------
Unanchored 296 1.33 1.23 1.66 71.7 53.5 77.3
- --------------------------------------------------------------------------------
Office 295 1.47 1.22 2.00 69.1 46.1 78.9
- --------------------------------------------------------------------------------
Hotel 272 1.54 1.40 2.50 63.9 34.9 73.3
- --------------------------------------------------------------------------------
Full Service 264 1.56 1.40 2.50 61.2 34.9 70.5
- --------------------------------------------------------------------------------
Limited Service 272 1.53 1.40 2.08 65.2 45.3 73.3
- --------------------------------------------------------------------------------
Health Care 298 1.41 1.29 2.07 68.5 29.0 74.9
- --------------------------------------------------------------------------------
Assisted Living 237 1.51 1.39 2.07 66.6 29.0 74.8
- --------------------------------------------------------------------------------
Skilled Nursing 119 1.33 1.30 1.42 67.6 58.4 70.8
- --------------------------------------------------------------------------------
Congregate Care 119 1.47 1.32 1.64 72.7 62.8 74.9
- --------------------------------------------------------------------------------
Skilled Nursing/Cong Care 298 1.29 1.29 1.29 67.2 67.2 67.2
- --------------------------------------------------------------------------------
Industrial/Retail 180 1.34 1.31 1.45 66.0 64.9 75.0
- --------------------------------------------------------------------------------
Industrial 295 1.36 1.30 1.52 68.8 54.4 75.0
- --------------------------------------------------------------------------------
Mobile Home Park 214 1.43 1.30 1.65 71.2 65.3 75.0
- --------------------------------------------------------------------------------
Self Storage 179 1.57 1.49 1.62 60.7 54.8 73.4
- --------------------------------------------------------------------------------
Mixed Use 180 1.44 1.44 1.44 70.0 70.0 70.0
================================================================================
================================================================================
CTLs 299 N/A N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------
Retail 260 N/A N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------
Office 299 N/A N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------
Other 298 N/A N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------
Total/Avg/Min/Max/ 360 1.36 1.18 2.50 72.2 29.0 83.0
Wtd.Avg.: (1) (1) (1) (1) (1) (1)
- --------------------------------------------------------------------------------
</TABLE>
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
11
<PAGE>
FU-LB 97-C2 Collateral Overview (as of the Cut-off Date - November 1, 1997):
<TABLE>
<CAPTION>
LOAN SIZE DISTRIBUTION GROSS RATE DISTRIBUTION
- --------------------------- -------------------- =================== ----------------------- =======================
% of Initial Gross Rate % of Initial
Balance Range ($) # of Loans Pool Balance (%) Pool Balance
- --------------------------- -------------------- =================== ----------------------- =======================
<S> <C> <C> <C> <C>
1 - 2,000,000 116 7.29 7.000 - 7.249% 3.51
- --------------------------- -------------------- =================== ----------------------- =======================
2,000,001 - 4,000,000 141 17.98 7.250 - 7.499% 6.72
- --------------------------- -------------------- =================== ----------------------- =======================
4,000,001 - 6,000,000 69 14.89 7.500 - 7.749% 10.94
- --------------------------- -------------------- =================== ----------------------- =======================
6,000,001 - 8,000,000 40 12.16 7.750 - 7.999% 15.86
- --------------------------- -------------------- =================== ----------------------- =======================
8,000,001 - 10,000,000 20 8.05 8.000 - 8.249% 16.31
- --------------------------- -------------------- =================== ----------------------- =======================
10,000,001 - 12,000,000 5 2.50 8.250 - 8.499% 18.31
- --------------------------- -------------------- =================== ----------------------- =======================
12,000,001 - 14,000,000 7 4.01 8.500 - 8.749% 14.21
- --------------------------- -------------------- =================== ----------------------- =======================
14,000,001 - 16,000,000 2 1.32 8.750 - 8.999% 5.51
- --------------------------- -------------------- =================== ----------------------- =======================
16,000,001 - 18,000,000 8 6.04 9.000 - 9.249% 4.87
- --------------------------- -------------------- =================== ----------------------- =======================
18,000,001 - 20,000,000 6 5.18 9.250 - 9.499% 1.70
- --------------------------- -------------------- =================== ----------------------- =======================
20,000,001 - 22,000,000 2 1.84 9.500 - 9.749% 0.21
- --------------------------- -------------------- =================== ----------------------- =======================
22,000,001 - 24,000,000 3 3.09 9.750 - 9.999% 0.19
- --------------------------- -------------------- =================== ----------------------- =======================
24,000,001 - 26,000,000 1 1.08 10.000 - 10.249% 1.43
- --------------------------- -------------------- =================== ----------------------- =======================
28,000,001 - 30,000,000 6 7.78 10.500 - 10.749% 0.21
- --------------------------- -------------------- =================== ----------------------- =======================
32,000,001 - 34,000,000 1 1.49
- ------------------------- -------------------- ===================
34,000,001 - 36,000,000 1 1.57
- ------------------------- -------------------- ===================
38,000,001 - 40,000,000 1 1.70
- ------------------------- -------------------- ===================
44,000,001 - 46,000,000 1 2.02
- ------------------------- -------------------- ===================
</TABLE>
<TABLE>
<CAPTION>
REMAINING TERMS TO MATURITY REMAINING AMORTIZATION TERM
- ------------------------- ================== ------------------ ==================
Months % of Initial Months % of Initial
Pool Balance Pool Balance
- ------------------------- ================== ------------------ ==================
<S> <C> <C> <C>
25 - 48 0.40 97 - 120 0.09
- ------------------------- ================== ------------------ ==================
49 - 72 1.28 121 - 144 0.77
- ------------------------- ================== ------------------ ==================
73 - 96 8.16 169 - 192 1.32
- ------------------------- ================== ------------------ ==================
97 - 120 54.09 193 - 216 1.16
- ------------------------- ================== ------------------ ==================
121 - 144 0.91 217 - 240 6.08
- ------------------------- ================== ------------------ ==================
145 - 168 0.13 241 - 264 2.26
- ------------------------- ================== ------------------ ==================
169 - 192 17.16 265 - 288 2.15
- ------------------------- ================== ------------------ ==================
193 - 216 0.26 289 - 312 25.56
- ------------------------- ================== ------------------ ==================
217 - 240 7.13 313 - 336 4.50
- ------------------------- ================== ------------------ ==================
241 - 264 2.92 337 - 360 56.11
- ------------------------- ================== ------------------ ==================
265 - 288 0.22
- ------------------------- ==================
289 - 312 5.38
- ------------------------- ==================
313 - 336 0.10
- ------------------------- ==================
337 - 360 1.84
- ------------------------- ==================
</TABLE>
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
12
<PAGE>
FU-LB 97-C2 Collateral Overview (as of the Cut-off Date - November 1, 1997):
<TABLE>
<CAPTION>
DEBT SERVICE COVERAGE RATIOS LOAN TO VALUE % (LTV)
- ------------------------------ ================== ----------------------------- ==================
% of Initial % of Initial
DSCR Range (x) (1) Pool Balance LTV Ranges 1 Pool Balance
- ------------------------------ ================== ----------------------------- ==================
<S> <C> <C> <C>
1.15 - 1.19 (2) 1.15 25.01 - 30.00 0.10
- ------------------------------ ================== ----------------------------- ==================
1.20 - 1.24 11.71 30.01 - 35.00 0.28
- ------------------------------ ================== ----------------------------- ==================
1.25 - 1.29 24.54 35.01 - 40.00 0.09
- ------------------------------ ================== ----------------------------- ==================
1.30 - 1.34 24.14 40.01 - 45.00 0.42
- ------------------------------ ================== ----------------------------- ==================
1.35 - 1.39 12.64 45.01 - 50.00 0.48
- ------------------------------ ================== ----------------------------- ==================
1.40 - 1.44 6.85 50.01 - 55.00 1.74
- ------------------------------ ================== ----------------------------- ==================
1.45 - 1.49 8.41 55.01 - 60.00 4.21
- ------------------------------ ================== ----------------------------- ==================
1.50 - 1.54 1.36 60.01 - 65.00 9.64
- ------------------------------ ================== ----------------------------- ==================
1.55 - 1.59 1.27 65.01 - 70.00 11.89
- ------------------------------ ================== ----------------------------- ==================
1.60 - 1.64 1.68 70.01 - 75.00 35.72
- ------------------------------ ================== ----------------------------- ==================
1.65 - 1.69 1.67 75.01 - 80.00 34.09
- ------------------------------ ================== ----------------------------- ==================
1.70 - 1.74 1.44 80.01 - 83.04 1.35
- ------------------------------ ================== ----------------------------- ==================
1.75 - 1.79 1.17 (1) Excluding CTL Loans
- ------------------------------ ==================
2.00 - 2.04 1.25
- ------------------------------ ==================
2.05 - 2.50 0.73
- ------------------------------ ==================
</TABLE>
(1) Excluding CTL Loans.
(2) With exception to one loan, or 0.7%, the Mortgage
Loans with DSC Ratios below 1.20x are loans secured
by Section 42 properties.
STATE DISTRIBUTION
------------------ =======================
State % of Initial
Pool Balance
------------------ =======================
FL 14.17
------------------ =======================
NY 11.09
------------------ =======================
TX 10.64
------------------ =======================
CA 9.44
------------------ =======================
GA 4.98
------------------ =======================
VA 3.79
------------------ =======================
AZ 3.73
------------------ =======================
PA 3.47
------------------ =======================
NJ 3.45
------------------ =======================
TN 3.15
------------------ =======================
Other 32.09
------------------ =======================
INVESTORS SHOULD READ THE UNDERWRITERS' STATEMENT WHICH ACCOMPANIES THIS
COLLATERAL TERM SHEET. PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ, AND
SHOULD RELY SOLELY ON, THE FIRST PROSPECTUS AND PROSPECTUS SUPPLEMENT (THE
"FINAL PROSPECTUS") RELATING TO THE CERTIFICATES REFERRED TO HEREIN (THE
"OFFERED CERTIFICATES") IN MAKING THEIR INVESTMENT DECISION. THIS TERM SHEET
DOES NOT INCLUDE ALL RELEVANT INFORMATION RELATING TO THE COLLATERAL DESCRIBED
HEREIN, PARTICULARLY WITH RESPECT TO THE RISKS AND SPECIAL CONSIDERATIONS
ASSOCIATED THEREWITH. ALL COLLATERAL INFORMATION CONTAINED HEREIN IS PRELIMINARY
AND SUCH INFORMATION MAY CHANGE. ALTHOUGH THE INFORMATION CONTAINED IN THIS TERM
SHEET IS BASED ON SOURCES WHICH THE UNDERWRITERS BELIEVE TO BE RELIABLE, THE
UNDERWRITERS MAKE NO REPRESENTATION OR WARRANTY THAT SUCH INFORMATION IS
ACCURATE OR COMPLETE. SUCH INFORMATION SHOULD NOT BE VIEWED AS A PROEJCTION,
FORECAST, PREDICTION OR OPINION WITH RESPECT TO VALUE. PRIOR TO MAKING ANY
INVESTMENT DECISION, A PROSPECTIVE INVESTOR SHOULD RECEIVE AND FULLY REVIEW THE
FINAL PROSPECTUS. NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY OFFERED CERTIFICATES. THIS TERM SHEET AND
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
13
